1. Operations andSupply Chain Management Assignment #2 – EtratechVisit
By: Shannon Szabo-Pickering
1. Etratech manufactures product in both North America and China. Theyhave chosen to run their
Chinese operationas a wholly ownedsubsidiary.Briefly outline the benefitsofthis approach.
Operatingasa whollyownedsubsidiaryprovides Etratechwithacompetitive advantage,since many
otherorganizations choose tooutsource some orall of the manufacturingprocess.Byoperatingasa
whollyownedsubsidiary,Etratechprovidesorganizationswithawaytomitigate the risksassociated
withoutsourcing.Outsourcingthe manufacturingof aproductcan leadtoa lossof control overproduct
quality,timelinesandproprietaryinformation.Furthermore,outsourcingcanresultincomplex
negotiationprocessesanddifficultiesinsuppliercommunications.ByfullyowningitsChinesefacility,
Etratech can control productquality,andensure producttestingandqualityassurance standardsare
fullyadheredto. Italsoensuresconsistencyinproductquality,regardlessof the manufacturinglocation
of the product.Operatingafullyownedsubsidiary alsoallowsfortransparencyinthe manufacturing
process.Furthermore,itofferscustomersprotectionovertheirintellectual propertyandproduct
designs,reducedcostsandshorterleadtimes.Etratechhasstatedthatits customersseekthe benefits
of Asiancosting,andthe flexibilityof NorthAmericanordermanagement.Byoperatingawhollyowned
subsidiaryinChinawhilemaintainingaNorthAmericanlocationinBurlington,Etratechcan
accommodate these customerdesires.
2. Etratech has developeda trademarkedprogram that theycall Total AcquisitionManagement
(T.A.M.).Brieflydescribe who might take advantage of this program, what it involvesand outline the
SupplyChain relatedbenefitsassociatedwith it.
Throughits Total AcquisitionManagementprogram, Etratechprovidesitscustomerswithservices
relatingtothe acquisitionof productssuchas semi-conductors,commoditiesandmechanical
components. Throughthe Total AcquisitionManagementsystem, facilitiesprovidingsourced
componentsare subjecttoa strict supplierratingsystemtoensure thatqualitystandardsare upheld.
Additionally,Etratechworkswithorganizationstodevelopwarehousinganddeliverysystemsthat
accommodate theirrequirements,andusesbarcodesand RF scanningto track products. Companies
that ordersmall to mediumproductquantitiesare likelytotake advantage of thisprogramto access
economiesof scale theymaynototherwise nothave accessto,due to theirlow volume requirements.
Thisservice isespeciallyadvantageousinallowingsmall andmediumsizedorganizationstocompete
effectivelyinthe global marketplace. Throughthisvalue-addedservice,Etratechprovidesitscustomers
witha convenient,efficientandcosteffectivewayof addressingtheirproductacquisitionneeds,
therebygivingtheseorganizationsthe abilitytofocusontheircore competencieswhileobtainingthe
competitiveadvantagesassociatedwiththe Total AcquisitionManagement program.These
organizationswillbenefitfromthe costsavings,shorterleadtimesandefficientlogistical processes

2. Etratech can provide throughitsestablishedsupplierrelationshipsandglobal purchasingpower. By
implementingthe Total AcquisitionManagementsystem,Etratechcanmeetcustomerdemandsfor
logisticssolutions thatmeettheirbusinessneeds.
3. Whatquality assurance measuresdoesEtratech have in place?Identifyand brieflydescribe each.
Dedication tohighqualityand continuous improvementisevidentinEtratech’squalityassurance
measures.Itsmanufacturingprocessutilizesthe latesttechnological innovationsandstate of the art
control systems.Itsmanufacturingprocessisfullyautomated,ensuringreliabilityandconsistencyinthe
productsit manufactures.The technologyimplementedinitsmanufacturingprocessalsoutilizes
mistake-proofingsystemswhichonlyreleasegoodpartsto the operator. Throughoutthe
manufacturingprocess,inspectionsandtestsare implementedatmultiplepointstoensure products
meetEtratech’srigorous qualitystandards. Similarinspectionsare conductedatfacilities providing
sourcedparts.
Additionally,EtratechisISO14001, ISO 16949:2009 and Six-Sigmacertified. ISO14001 providesa
frameworkandtoolsforan organizationto implementeffective environmental managementsystemsin
orderto minimize the environmental impactof itsoperations.AlthoughISO10041 certification doesnot
require organizationstomeetspecificenvironmental standards,itindicatesthatanorganizationis
dedicated tomeasuringandcontinuouslyimprovingthe environmental impactof itsoperations,aswell
as adheringtoany lawsor regulationsrelatingtoenvironmental standards.ISO/TS 16949:2009 relates
to the implementation of qualitymanagementsystemsrelatedtoerroravoidance,defectprevention
and waste reductionwithinsupplychainsforautomotive relatedproducts.Thesequalitymanagement
systemsare appliedthroughoutthe supplychain.Like ISO10041, italso emphasizesthe continuous
improvementof productionprocesses.Six Sigmaisa setof techniquesandtoolsusedforimproving
processesandincreasingthe qualityof outputsbyidentifyingandremovingthe causesof defects.The
objective of six sigmaisfor99.99966% of productsto be defectfree.These certifications illustrate
Etratech’sdedication toimplementingprocedures toensure highquality,defectfree products,aswell
as a dedicationtocontinuouslyimprovingitsmanufacturingprocesses.
Etratech alsoemploysacorporate culture dedicatedtoupholdingthe higheststandardsof quality,and
focusesontotal customersatisfactionbymeetingorexceedingcustomerneeds.Etratechcompletesthis
objective byeffectivelycommunicatingandcollaboratingwithitscustomerstodesignaproductthat
meetsthe organization’sunique requirements. Etratechisinvolvedineveryaspectof the manufacturing
process,includingproductdesign,prototypecreationandproductmanufacturing. Itsdesignfor
manufacture process implements awhole productapproachtomanufacturing, whichprovides high
quality,continuousimprovementandcost savings.Once customersreceiveorders,Etratechoffers
additional productsupport,if required.
Employeesare anotherimportantcomponentof Etratech’squalityassurance measures.Etratech
employsafull-time qualityassurance manager,and implements regularmanagementreviewsand
internal auditstoensure qualitystandardsare adheredto,aswell astouncovernew opportunitiesfor
improvementandcostsavings.The qualitymanagementsystemit implements isadditionally assessed
to ensure its effectiveness. Etratechalsoprovidesitsstaff withextensive training toensure theyare
able to meetthe qualitystandardsrequiredof Etratechproductsandservices.

3. 4. During hispresentation,Saha Chatterpaul spoke of the importance ofadhering to certain basic
program elementstoachieve successin today’s global environment.Identifyand brieflyexplainthe
key thingsthat he definedas essential toa global business’ssuccess.
Mr. Chatterpaul spoke of adheringto five basicprogramelementsthatare essential tothe successof a
global business:
1. Asa global business,itisimportanttounderstandtodevelopanunderstandingof the global
marketplace inwhichtheyoperate.Globalizationhasbeenacceleratedbythe reductionof trade
barriersthroughagreementssuchasNAFTA,or the creationof the Euro Zone.Organizationsnow
compete withotherorganizationsthroughoutthe worldinarapidlychangingandhighlycompetitive
businessenvironment. Inthisenvironment,itisimportanttorecognize the intricaciesof different
marketplacesthroughoutthe world,andbe able toadaptto the needsof these marketplaces. Etratech
providesproductsandservicestoorganizationsinCanada,the UnitedStates,Europe,Japan,Chinaand
Australia. Ithas a comprehensive understandingof the global businessenvironment,andisable to
provide alevel of service andqualitythatallowsitself anditscustomerstocompete effectivelyinthe
global marketplace.
2. Use of businesscomputerapplicationsisessentialtofunctioneffectively inaglobal business
environment. Computerapplicationsallow ease incommunicationandknowledge sharingthroughout
the world.Etratech,for example,caneasilycommunicatewithitsfacilityinChina,commonize facility
operations andprovide customersthroughoutthe worldwithproductsthatadhere tothe same level of
quality,regardlessof where the productwasmanufactured. Etratechalsousesbarcode trackingandRF
to track productsand create logistical efficiencies. Additionally,strategicuse of enterpriseresource
planningcanprovide organizationswithcompetitive advantagesinavarietyof ways,includingease in
sharingpertinentinformation,achievementof operational andcommunication efficiencies and
streamlined business processes.
3. As a global business, itisalsoimportant tofocusonleadershipbuildingandtechnical competence.
Technological advancementshave the abilitytoprovide organizationswithawealthof informationto
utilize ineffective decisionmaking.Additionally,whenusedeffectively,technicaladvancescanleadto
the breakdown of organizational silos,leadingtoincreasedorganizationalcollaborationandknowledge
sharing.Asan organizationoperatinginaglobal businessenvironment,itisimportant tohave the
competence andunderstandingof these technologiesto utilizetheminamannerthat optimizesthe
competitiveadvantagestheymayprovide.
Etratech capitalizes buildingleadershipcapabilitiesandtechnical competenceinavarietyof ways.It
providesitsemployeeswithextensive traininginavarietyof areas, and promotesbasedon
performance,ratherthannumberof yearsworked.Italsoutilizesstandardoperating procedures,which
helpsreduce variancesandensuresahighlevel of qualityin itsproducts.
4. Thinkingandacting strategicallyisanotherimportantfactorinsucceedinginaglobal business
environment.Itisimportanttoact inthe bestinterestsof the organizationasa whole,andEtratech
promotesa corporate culture thatfacilitatesco-operationandcollaborationinactinginthe best

4. interestsof the business.Itfocusesondevelopinglong-termstrategicrelationshipswithitsclients,
providingthemwithhighqualityproductsthatcollaboratingwithcustomerstodevelopproductsthat
suitthe unique needsof theirbusinesses.Etratechadherestothe principlesof providingthe highest
level of quality,integratingthe latesttechnological advancesandprovidingvalue-addedservicessuchas
T.A.M. forits customers.Itconsidersthese elementscritical toitssuccess asa global business.
5. Etratechprovidesavarietyof career pathsfor itsemployeesinareassuchas finance,supplychain
and salesandmarketing.Whenhiring,Etratechseeksqualifiedstaff withappropriate experience
educational requirements. Itseeksdedicatedindividuals,whoare interestedinlong-termcareersat
Etritech,andwillingtoassistincontributingtothe company’ssuccessasneeded,evenif itisina
manneroutside theirassignedduties. Itconsidersthe qualityof itsemployeesakeycomponentinits
global competitiveness,andissupportive of itsstaff,especiallyinprovidingadditional trainingtoassist
theminfurtheringtheircareers.