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Masters family Ltd - case study
- 2. Me • Huawei 2002 • ZTE 2006 • 2010 No work • 2011 E-care - Mobile repair center management • 2014 Foxconn Consulting • 2015 Dig in to refurbishment business
- 4. Market players Refurbishment Centers 95% of business success depend parts supply
- 5. Dig in to smartphone refurbishing processes
- 7. Me • Huawei 2002 • ZTE 2006 • 2010 No work • 2011 E-Care - Mobile repair center management • 2014 Foxconn Consulting • 2015 Dig in to refurbishment business • 2016 August - Finally arrived to the Beginning
- 8. Went to China to build a souring team
- 10. Working concept Understand Source Inspect Delivery Believes and theory
- 11. UNDERSTAND! • Make sure you are clear with customer request. Make sure that requested "white" is "white" and not "whites". Many, many suppliers fail because they didn't understand! Believes and theory
- 12. SOURCE! • Do not look for supplier, look for partner! Believes and theory
- 13. INSPECT! • while inspecting, check everything! Check every unit! Check again! And again check! dealing with damaged product is way much more expensive for your clients and you then to run good quality inspection in the beginning. Believes and theory
- 14. • Simply delivery fast! but do not scarify quality to speed! DELIVER! Believes and theory
- 15. Sales cycle concept Samples Everything of 1 Trial Order Everything of 100 Mass supply Believes and theory
- 16. Reality
- 17. Start of the business • Nov 2016 – Samples delivery. Wow Amazing! Such good quality!! • Dec 2016 - 1ST DELIVERY - YIELD 60%, SCRAP 40% • Dec 2016 – did you know that USD transfer takes 3 days??? • Jan 2017 2ND DELIVERY - YIELD 70%, SCRAP 30% • Jan 2017 - Quality is killing us!! • Jan 2017 - Customer QIPs Analysis • Feb 2017 – Scrap rework and compensation, new deliveries • March 2017 – Yield 92% • March 2017 – Administration is killing us!!! • April 2017 – Excels are killing us! • May 2017 - Yield 98% • June 2017 – Yield 99.2% Reality
- 18. Sales cycle Samples Everything of 1 Trial Order Everything of 100 Real samples!!! Mass supply Reality
- 19. What client think about China sourcing Yes, Hello! How can we help you? Reality
- 20. Real China sourcing tīngbùdǒng … Reality
- 21. What Chinese sourcer thinks about Client’s purchasing? Hello, Please delivery PO. Reality
- 22. Real Client’s purchaser Purchaser I don’t know where is shipment!!! Why shall I test and rework all your shit inventory?? Your suppliers are sucks!!! Your parts are scrap!! Are we good with inventory supply? Reality
- 23. Source from China conditions Response Meaning Damn it… Half of stuff is in shortage…. We will not tell customer about it , but will ship later Of course!!! • Quality… quality… quality…. Problems Reality
- 24. Source Chinese client vs. Lǎowài Reality
- 25. Inspect • Clean room ISO 3 • Clean box ISO 4 • Skilled operators BUT….. Reality
- 26. Is it clear? Clear boss! Reality
- 27. Next day Damn…. Did you see your QI results???? hm…..eee… aaaa….mm… Reality
- 28. Inspect • Suppliers market starts at 1pm • Finished at 7pm • Collect all goods and move to QC center - 50km • Inspect • 70% will be crap • Send back next day • Get new portion of raw materials • Go back to QC center • Inspect • 30% scrap • Send back next day • Get new portion of raw materials • Go back to QC center • Inspect • Total: 3 days Reality
- 29. Delivery Theory • 1 day – request to suppliers • 2 day –goods pick up • 3 day – inspect + request for return • 4 day – inspect • 5 day – ship out • Practice • 1 day – request to supplier • 2 day – pick up what is available (33%) BUT EVERYTHING OF 200% • 2 day (night) – inspect + request for returns (70%) • 3 day pick up what is available ( another 33%) • 3 day /night – inspect + request for returns • 4 day – pick up what is available (another 33%) • 4 day /night – inspect + request for returns • 5 day – Damn…there is market shortage…. Hope next week will be solved…. • 5 day night – inspect inspect inspect… • 6 day night inspect inspect isnpect… • 7 day – report to customer…. We have shortage • 8 day – ship out what we have. Pray to god on shortages • 9 day- still paying • 10 day – still paying • 11 days… shipment arrived to customer and inspected. • 12 day….. Customer’s production stopped…. Praying together with customer… • 13 day - still praying together • 14 day - yes!! We found missing PNs!!! Pick up urgent !! Inspect urgent !!! Ship out urgent!!! • 15 day – praying with customer for no delay on delivery… • 16 day – still praying • 17 day –DELIVERED!!!!!! Reality
- 30. Cash flow • Big plan to move fin center to HK for easier access to financing tools • Meanwhile…. Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 PO Delivery planning Plan confirming Request to suppliers Goods pick up and payment PO Invoice / / Payment Send EUR to HK Convert EUR to RMB Send RMB to CN Reality
- 31. solutions
- 32. Problems list • Administration • Samples are useless • Supplier do not understand what do we need • Mass orders management • Shortages management • Lead time • Cash flow!!! • Distance between supplier and our QC center • Inspection time • Quality of inspection!
- 33. Administration • First we though to hire administrator! • BUT…. • After half an hour googling we moved to cloud based EPRs • After another week of thinking, moved to Agile KANBAN. Thanks to trello.com!
- 35. Project management – Trello - KANBAN
- 37. Supplier do not understand what do we need
- 38. Inspection dash board Customer designed quality inspection protocol. Looooong excel… Our self designed inspection dash board
- 39. GH96-07236A RearHousing + Camera Lens white - FRONT Place PN here • for black and gold rear housing =black color of mesh • for white rear housing = silver color of mesh No scratches and damage allowed earspeaker must be stacked properly dust proof foil is required 3722-003892 Audio Flex Cable / Earphone Jack adhesive tape is required cover is required 2 pairs of contact MUST FXCZ-S508 single LDI RearHousing outside must be only clearly white color if "water dot" is grey/silver = it´s only adhesive tape, not water dot 3001-002733 Buzzer / Loud-Speaker adhesive tape is required foam on back side is required 1501057193 S5 Loud Speaker Foam Replacement GH68-09361A Waterproof Sticker Replacement LDI must be clear 1 2 3 4 5 6 7 8 9 NO Scratches of particles on chrome 10
- 42. Lead time
- 43. Cash flow
- 44. Distance between supplier and our QC center Inspection time
- 45. PO IQC Production Sourcing Critical path Failure analysis Compensation Shipment RTV management Urgent requests ??? Sourcing path Masters Family - May 2017 – average suppliers’ working process
- 46. Pre-alert Production planning PO+Shipment schedule IQC Production Production planning adjustment Market trace Shortage report Critical parts booking Sourcing Critical path Sourcing path Scheduled Partial shipment Failure analysis Compensation Shipment Engineering support RTV management In QIP failure + - Urgent requests ??? Masters Family – Jun 2017
- 47. Pre-alert Production planning PO+Shipment schedule IQC Production Production planning adjustment Market trace Shortage report Critical parts booking Sourcing Critical path Sourcing path Scheduled Partial shipment Failure analysis Compensation Shipment Engineering support RTV management In QIP failure + - Urgent requests ??? Product Pre-assembly Masters Family – Jul 2017
- 48. Urgent requests ??? Pre-alert Production planning PO+Shipment schedule IQC Production Production planning adjustment Market trace Shortage report Critical parts booking Sourcing Critical path Sourcing path Scheduled Partial shipment Failure analysis Compensation Shipment Engineering support RTV management In QIP failure + - Urgent requests are gone Product Pre-assembly Masters Family – Jul 2017 R&D
- 49. RnD is cool!
- 50. Not for guys who has such cool, old car! Nights and nights of polishing Carbon fiber Gauge after Gauge before
- 51. Scratched Smartphones’ frames Yield 40-50%
- 52. Bad adhesive seals • 3M! • Laser cut! • Where to get Clean room in Budapest? • bathroom is good enough for prototyping?
- 53. Table books
- 54. RnD inspiration 8 seasons 29 seasons 6 seasons
- 55. What else helps me?
- 56. Thank you!