July, 2014
www.us-tech.com
Some Paths to Help Streamline Overseas Factories
By Yusaku Kono, Marketing Director, Japan UNIX Co. Ltd., Tokyo, Japan
taining effective and efficient produc- tion is critical for continued success- ful business, and many manufactur- ers may rely on overseas production for survival. China, with its half-bil- lion-strong labor force, is also facing rising labor costs and may have to count more on automation to provide practical manufacturing solutions. As an example, soldering technology is indispensible for a wide range of applications, including in automo- biles, home appliances, and digital equipment. But successful future businesses will depend on finding ways to streamline and optimize sol- dering in overseas factories As labor costs have risen over
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the past decade, the task of maintain- ing a low-cost labor force is no longer trivial. Owners of manufacturing facilities in China have seen an increase in the mobility of individuals within the labor market, making it increasingly difficult to acquire and maintain high-quality personnel for electronics manufacturing. In general, businesses are re -
spon ding to these labor challenges in one of three ways. The first solution is to realize a high-quality, high-pro-
hina, often referred to as the “world’s factory,” may have reached a turning point. Main -
stabilization of quality that has accrued in China over the past 10 years will need to be built over again in these countries, starting from scratch. When reinvestment in edu- cation and infrastructure are taken into account, reduction of production costs becomes less likely. For this reason, there is a trend toward automation of the production line from the very beginning in the most recent developing nations. Workers are less likely to affect product qual-
ity, with operations affecting quality partially automated, ensuring stable production volume and quality.
Bringing it Home The third solution is to return
manufacturing from overseas and perform production in the home country. For production at home, high-quality materials and compo- nents are easy to acquire, and the infrastructure is already in place. Moreover, the levels of education are
far beyond those for overseas produc- tion areas. However, higher labor and material costs are obstacles to this third solution. In this third case, full automa-
tion is assumed from the start of busi- ness, and the requirement for fewer personnel makes it possible to con- struct a manufacturing system for 24- hour operation. This trend has been seen recently in North America, Japan,
Continued on next page
Page 61
Keep Your Production Line PURRING
The UNIX-413S system includes solder position correction and can automate picking, compo- nent insertion, and soldering.
ductivity production line while remaining in China. The strong labor market in China is still attrac- tive for establishing low-cost manu- facturing lines, and low-cost produc- tion in that market will still make a great deal of sense. But rising labor costs do pose a problem, and the “low-quality, low-cost” situation in China is changing. To maintain their low-cost structures in China, many businesses are producing varieties of equipment with greater added value and shifting toward high margin sales models while reining in labor costs by partially automating exist- ing processes.
Relocating to Reduce Costs The second solution is to relo-
cate to a region with lower-cost labor. Recent years have seen an increase in expansion to locations such as Southeast Asia, Bangladesh, and Myanmar. For a time, the low- cost labor force can bring about a reduction in production costs. However, the education levels and
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