kim adams jeff boynton julie nguyen henry wei prof. greco finance 570
Post on 22-Dec-2015
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TRANSCRIPT
Kim AdamsJeff BoyntonJulie NguyenHenry Wei
Prof. GrecoFinance 570
•Company background
•Quality overview
•Offshore outsoucing
•Conclusion
Company Background
• Mer-Mar is a well established, Southern California contract manufacturing and assembly company
• Servicing the Southwest with high quality manufacturing for over 30 years
• Located in Hesperia, California
• Maintained customers for over 20 years
Company Background
• Mer-Mar is a quality supplier– ISO-9001 certified in 1999
• Employs 50 devoted workers– All employees receive full benefits– Many team members have been with Mer-Mar for
20+ years
Company Background
Company Background
• Mer-Mar principals are “second Generation owners”– John Merell, President
• 25 years at Mer-Mar in operations
– Jeff Menkes, VP• 20+ years in electronic design of IC’s and PCB
Mer-Mar Markets
• Mer-Mar has been profitable every year for over 30 years specializing in the following markets:
– Medical Electronics– Aerospace– Automotive– Entertainment and Leisure– Homeland Security
Mer-Mar’s*Products
* Competitors*Quality Overview
Mer-Mar Product Overview
• Mer-Mar products include:
– Electronics Assembly– SMT through-hole, BGA, Flip Chip– Mechanical Assembly– “Box Build”
Competitors
• Direct– Golden West Technologies– Probe Manufacturing
• Regional
• National– Flextronics– Sanmina
Core Competencies
• Core competencies– Flexibility
– Quality
– Reliability
• Competitive Advantage– High desert location
Mer Mar’s Capabilities
• 22,000 sq. ft Facility– 3 shift capability
• Extensive Test capabilities– Mer-Mar equipment
– Customer provided equipment
• Capable of turning boards within weeks from complete material receipt
Review of Customer Requirements
• Assurance that customer requirements are met by:
– Contract Review at receipt of purchase order
– Customer Purchase Order Planning– Purchase Order Compliance Inspection
– Receiving Inspection
– Board Level Inspection
– Testing
Process Control
• Process Control is accomplished by– Assembly aids– Review of machine settings before each job– Inspection at numerous steps in the process
– Equipment Calibration
– Quality Improvement Team Review• Process Review
– QITCAR (Quality Improvement Team Corrective Action Report)
– Internal Audits
Mer-Mar&
Offshore Outsourcing
MerMar & Outsourcing
Mer Mar currently does NOT
offshore outsource
Why Mer-Mar chooses not to outsource
• Product offering characteristics– Low to medium volume
– High mix
– High “touch” assembly
– Requires automation and skilled labor
Why Mer-Mar chooses not to outsource
• Quality– Eliminates potential for increased failure rates
– Critical nature of products
Why Mer-Mar chooses not to outsource
• Customer service– Personalized
– Quick turnaround orders
– Prompt response to service calls
Why Mer-Mar chooses not to outsource
• Proximity– Eliminates potential long lead time
– Spares readily available
– Eliminates customs barriers
Why Mer-Mar chooses not to outsource
• Workforce concerns– Training
– Language Barriers
– Loyalty to many long-term employees
MerMar & Outsourcing
Dedication to producing American-made products using American workers
Why Mer-Mar chooses not to outsource
• Threat to U.S. economy– American pride
– Unemployment rates
– No regulation
Mer-Mar’s views on Outsourcing
• Offshore outsourcing is not for every company
• Outsourcing “makes sense” for high volume consumer goods
• Companies often rush to follow outsourcing trends
• Outsourcing companies often do not consider soft costs
Conclusion
Conclusion
• Mer-Mar does not consider offshore outsourcing a viable option
• Mer-Mar feels threatened by outsourcing trends but believes customers will continue to rely upon them based on their core competencies
Conclusion
This concludes our presentation.
Questions ????