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EMS company’s perspective on growing versatile Mobile Phones
Entertainment and utility services for mobile phones are growing from strength to strength, and in practice all Internet services can now be used with a mobile phone. For instance the mobile phone user can trade in securities, watch television, play games, send instant messages and follow the commentary of football matches in real time. The modern mobile phone can receive a staggering amount of entertainment and information, as well as providing all sorts of means of communication.
The convergence of multiple innovative functionalities in hand-held devices, such as the iPhone and the Blackberry, results in more complex devices. As a result of the mobile phone’s increasing features and functionalities, new companies, who previously had either no involvement or only a peripheral involvement with mobile phones, are entering the market. Companies like Apple, Google, Skype, and Vodafone are starting to build their own phones. This will influence the way we use these devices and how we buy and pay for them. WiMax changes the business model of the carrier as well as the connecting channel and can be used instead of the existing networks. From a manufacturing point of view, these trends need to be monitored carefully, and outsourcing service companies, like EMS providers, need to be able to adapt to, and accommodate, these trends.
With communications technology, everything is hidden deep in the value chain. Cost pressures on manufacturing services and the products themselves are more complex. The forecast of some mobile phone OEM is to launch forty-five to fifty new models in 2008, each with higher complexity. Some phones have lifecycles of only six to nine months, so processes must be integrated and the OEM needs help with sourcing and the supply chain.
There are new players and new technologies and they are testing the business models. Total cost of ownership should be closely scrutinized, especially now that EMS companies are getting involved from the design stage. The EMS must manage and reduce complexity for OEM. Not only must the EMS handle ramp-up, but be prepared and able to ramp down and reduce capacity quickly. Cost-effective complexity management is the key issue for OEMs in the new market. The right EMS partner for them should provide a wide variety of electronics and customized mechanics-related services, integrating these through professional product and program management and minimize the total cost of ownership.
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Topics:
Communication Technology, Corporate Responsibility, Elcoteq, ems, Handset, IEMS, Mobile phones, WiMax
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The First Female General Manager of Elcoteq in China
At a time when men still dominate as leaders in the manufacturing field, Elcoteq’s Cecilia Liu is breaking ground as general manager of Elcoteq’s Dongguan, China plant. In her role as general manager, Liu is responsible for ensuring that all operations run smoothly and that there is optimal utilization of resources to satisfy the needs of both customers and employees.
Elcoteq’s Dongguan plant provides box build and sub-assembly manufacturing for communications products such as mobile phones, RF modules, mobile phone box builds, LCD driver modules, combiner and distribution units, and remote radio units. Along with manufacturing services, the facility also supports original equipment manufacturers with fully integrated solutions comprised of collaborative design, manufacturing, engineering services, sourcing, demand and supply chain management, and after-sales services (product repair and product recycling) for the entire lifecycle of their products. An ISO 9001:2000 and ISO 14001:2004 certified facility with Six Sigma, SA8000, EHS implementation, it employs approximately 2500 people.
Ms. Liu’s role as general manager of the China plant is significant as she is the first female member of Elcoteq’s local management team to head a plant in China, one of the emerging markets in the mobile phone industry. She joined Elcoteq in 1999 and worked as product line manager for the mobile phone business for more than 6 years, then served as operations manager for 2 years. Ms. Liu holds an engineering degree in refrigeration engeneering from the Wuhan University of Textile Technology and an MBA in Strategy Management from University of Wales, England. Before joining Elcoteq, she worked in quality engineering positions for several high tech companies. She has been general manager of the Dongguan plant for almost a year.
“Men can be perceived as tougher and better able to bear responsibilities and manage workers than women can,” says Liu, “but I believe that opportunities for advancement are available as long as you have geared up and are properly prepared and qualified for the job. Everyone has unique leadership characteristics that contribute to the success of a company.”
Liu recognizes the power of teamwork and the importance of interactive communications. She communicates with the plant management team and other personnel frequently to review and analyze the operations of current and potential business. “As a female, I am an empathetic leader. I am open to different opinions, but also emphasize discipline and commitment to the public interest. As the market evolves from a product-driven orientation to a customer-driven orientation, manufacturers will be required to understand more about their customers and collaborate with them. More human elements are involved in the services provided, particularly on a long-term basis. A company needs a diversified mix of talents from its leaders to provide innovative ideas and advantages.”
Liu works hard to ensure the smooth running of the plant’s operation and to achieve optimal utilization of resources to satisfy the needs of customers and employees. She isn’t a workaholic and never forgets to balance her personal life and career. “On weekends and holidays I enjoy traveling with family and friends,” she says..
Topics:
6Sigma, China, Communication Technology, Corporate Responsibility, Elcoteq, ems, Infrastructure, Integrated EMS, Mobile phones, Telecommunication
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Elcoteq Commemorated the World Environment Day
The World Environment Day was commemorated in Elcoteq locations globally on June 5, 2008. Since climate change is becoming the defining issue of our era, the slogan this year was Kick the Habit! Towards a Low Carbon Economy. Also Elcoteq SE’s Corporate Responsibility Report was published on the same day in digital format.
Lots of activities were arranged that day since Elcoteq wants to be a leading player in the area of corporate responsibility, and environmental issues are taken into account in all operations of the company.
In the group office Espoo, Finland, the whole day was devoted to the World Environment Day, and also some companies and stakeholders known as ethical and environment friendly participated in the event by providing fair trade products or support in other ways. For example Nokia established a recycling point for old Nokia cell phones. From each collected phone, two Euros were given to the ‘Save the Baltic Sea’ campaign.
Also Elcoteq’s other locations were active on the World Environment Day.
The plant in Pécs, Hungary, organized a drawing competition for all the children of the employees under the age of 14 years. The winner of the competition was a 9 year-old boy who is now rejoicing of his brand new bicycle!
In Romania, in the Arad plant, employees planted trees. Each department was responsible for their own planted tree and the name of the campaign was ‘Each tree is another change!’
In the plant in Tallinn, Estonia, a presentation about consuming habits was running for five days. The purpose of the day was to highlight resources and initiatives that promote low carbon economies and life-styles, such as improved energy efficiency, alternative energy sources, forest conservation and eco-friendly consumption. Taking care of the environment is a major value in Elcoteq, and it is cultivated not only on the World Environment Day but in every day actions..
Topics:
Brand Protection, Communication Technology, Corporate Responsibility, CR, CSR, Elcoteq, ems, environmental, IEMS
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SMT/Hybrid/Packaging 2008 Nürnberg
Elcoteq Participated in a Panel Discussion Organized by productronic
By Päivi Huuhtanen
The panel discussion held at the SMT/Hybrid/Packaging Show in Nürnberg in June was hosted by Hilmar Beine, the Editor-in-chief of Productronics, and it led to a fruitful discussion about EMS markets.
The panelists were Dr. Werner Witte, Managing Director, BuS Elektronik, Ronny Kirschner, Managing Director and owner, KIRRON, Roland Smyczek, Managing Director Strategy and Finance, Smyczek KG, Roland Mair, Managing Director, Mair Elektronik and Carsten Barth, Marketing and Communications Director of Elcoteq SE.
The overall market situation of the EMS companies, especially in Germany, was classified as promising by the participants, and it became clear that accuracy, quality and delivery are vital factors for success in the market. The discussion on the need of manufacturing facilities in the Eastern Europe was more controversial. In conclusion, the individual customer needs and the product specific requirements are a crucial factor what comes to the decision making of the manufacturing location.
The global footprint of Elcoteq was clearly elaborated by Carsten Barth as well as the specific requirements of its global operating customers. It was also highlighted that the unyielding integrity and the strong focus on social and environmental issues are vital for successful and sustainable business.
“I very much appreciated this discussion; it shows that EMS companies are valuable and highly regarded partner in our customers business” concluded Barth..
Topics:
Communication Technology, Corporate Responsibility, ems, Germany, Integrated EMS, SMT, SMT/Hybrid/Packaging
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Environmental Responsibility – Step-Up Eco-efficiency of Your Entire Process
The European Union’s (EU) integrated product policy has shifted emphasis from management of site-specific environmental impact to minimizing the environmental impact of each product throughout its lifecycle.
The EU’s environmental directives require the whole lifecycle of a product to be taken into account right from product development. Design for environment (DfE) aims at minimizing environmental impact throughout the product lifecycle. Key issues in environmentally benign product development include improving the recycling properties of products and minimizing the use of hazardous substances, energy consumption and quantities of materials needed.
The environmental impact of decisions made during the new product introduction phase affects the manufacturing and end-of-life phases in a product’s lifecycle. During new product introduction, manufacturers should aim to maximize the yield from a product and minimize scrap during manufacturing. Chemicals selected for use in the manufacturing process should take into account environmental, occupational health and safety considerations. The new product introduction phase also affects the recyclability of a product when it is taken out of use. It must be possible to dismantle a product in the final stage of its lifecycle so that the components and materials can be recycled effectively.
After-sales services, such as repair services, help extend a product’s lifespan, and at the same time, can reduce the number of products being taken out of use and their environmental load. To make the repair process more effective, it is important that features that simplify dismantling, recycling and other forms of repair are taken into account in product development and new product introduction.
The challenges posed by climate change concern everyone. It is practical to cooperate in spreading and adopting the best practices. Elcoteq is working to improve the environmental performance of its plants with long-term development work, by raising energy and material efficiency, and by reducing the use of hazardous substances. The company also engages in an on-going dialogue with the stakeholders concerning their expectations for Elcoteq’s operations and corporate responsibil¬ity management, so as to ensure quick and correct response to their different needs and requirements. Elcoteq has been a member of EICTA (European Information, Communications and Consumer Electronics Technology Industry Association) and the European Alliance for Corporate Social Re¬sponsibility since 2006. Both organizations offer opportunities to benchmark, share experiences and launch joint efforts to monitor and influence development of the business and regulatory environment.
Elcoteq has a global environmental management system to carry out the targets and the corresponding programs globally. In 2007, the targets related to energy consumption and waste management. In 2008, Elcoteq decided to continue with the same environmental targets as in 2007 but also to include REACH compliance as one of the objectives. In addition to the global targets, each plant can set site-specific targets depending on local circumstances. Some site-specific targets include issues like raising environmental awareness, environmental training and chemicals monitoring. The internal material-content management system is also an important element of Elcoteq to enable itself to improve analysis of the recyclability rate of products it manufactures based on the materials employed, and prepare for future requirements.
Elcoteq’s Corporate Responsibility Report 2007 will be published on World Environment Day, June 5, 2008. For more information, you can download the report from www.elcoteq.com..
Topics:
Communication Technology, Corporate Responsibility, Elcoteq, environment, environmental responsibility
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WiMax - Communications Technology Infrastructure
WiMAX is one of the fastest-growing wireless broadband technologies. According to the data released by research firm Maravedis, the global Broadband Wireless Access/WiMAX subscriber base has reached nearly 1.8 million during Q4/2007. The findings reported that, WiMAX service revenues have reached USD 1 billion in 2007. WiMAX investments by operators are expected to rise, especially in developing markets. Cisco Systems also ventured into the WiMAX market towards the end of 2007 by acquiring Navini Networks. As in previous years, a major factor driving growth in the market for wireline networks was demand for broad band services.
In the market for communications network equipment in general, Cisco Systems and others held on to their market leadership in their segments. Huawei also saw very strong growth. Alcatel-Lucent and Nokia Siemens Networks had to focus on the integration of merged or acquired businesses in the early part of the year.
According to the timetable provided by WiMAX Forum, Mobile WiMAX profiles should continue to be enhanced in the next three years as the technology addresses alternative frequency bands and channel bandwidths, and has the flexibility to comply with various local requirements. Morgan Stanley anticipated that the potential applications for WiMAX will be the fixed-broadband extension to suburban and rural areas. It’s an application most likely to be undertaken by governments and public bodies to expand highspeed internet access.
Elcoteq’s Communications Networks products cover wireless and wireline infrastructure products and equipment for enterprise networks. For wireless infrastructure, the range includes cellular base stations, microwave systems, plug-in units for mobile base stations and antennas, and for wireline infrastructure ADSL multiplexers and other broadband network products. Typical enterprise network products are switches for data networks. As the communications networks market grows, Elcoteq strengthened its position in 2007 as a supplier to the WiMAX wireless broadband market and started business with WiMAX -based product suppliers such as Redline and Telsima.
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Topics:
Communication Technology, Elcoteq, Electronics Manufacturing Services, Infrastructure, IT, WiMax
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Corporate Responsibility entails cooperation throughout the supply chain
Minna Aila, Elcoteq’s Director Investor Relations and Corporate Responsibility explains the importance of corporate responsibility within Elcoteq.
Companies in the electronics sector have to ensure that operations meet corporate responsibility requirements throughout the entire supply chain. In practice, this means communicating environmental and ethical requirements to suppliers, including these requirements in supplier contracts, assessing and auditing suppliers to examine and demonstrate that their operations comply with these requirements, and collecting and analyzing information concerning individual suppliers.
Corporate responsibility means taking responsibility for the impact of the company’s operations on both the local community and the company’s stakeholders. In an extended global supply chain, corporate responsibility entails knowledge of international environmental and ethical requirements as well as local legislation in each country. Careful monitoring of the outsourcing arrangements can protect the original equipment manufacturer’s (OEM’s) reputation and brand value by ensuring that suppliers operate in a totally ethical manner. Elcoteq has worked closely with several customers with global operations for many years, and through this has built up expertise in managing the supply chain.
Corporate responsibility covers three dimensions: economic, social and environmental. In Elcoteq, responsibility for addressing these three dimensions is integrated in the company’s strategy, management systems, corporate governance, and the principles and guidelines that are derived from them. The company and its customers expect all the partners in the supply chain to comply with international standards and agreements. In other words, these requirements extend beyond the company to the supply chain and other business partners.
Elcoteq is an international company operating in emerging markets which makes it particularly important for Elcoteq to manage corporate responsibility issues flawlessly. Most of Elcoteq’s net sales are generated by customers that market consumer products globally. For these OEMs, responsible operations throughout the entire supply chain are of paramount importance for safeguarding their brands and reputation. Elcoteq seeks to deliver on its value proposition by supporting its customers’ businesses as a reliable and responsible partner.
During 2006, Elcoteq’s environmental management emphasis focused on preparations for the RoHS directive, communicating the requirements and monitoring and making sure that suppliers were developing their capabilities to meet these requirements.. The main priorities were investigating the compatibility of Elcoteq’s lead-free manufacturing processes and components and ensuring the availability of components that complied with RoHS requirements.
In 2007, Elcoteq continued to update its supplier requirements and their assessment methods. In addition, internal training was organized in the Asia-Pacific region for personnel working with suppliers in order to improve their knowledge of corporate responsibility requirements. Elcoteq wants to ensure that no matter where in the world it has operations, its employees consistently work in a ethical manner in accordance with Elcoteq’s global guidelines..
Topics:
Brand Protection, Communication Technology, Corporate Responsibility, Electronics Manufacturing Services
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EMS in Asia
The trend for EMS companies to concentrate their volume manufacturing in low-cost countries is still going strong. China is firmly established as the leading country for manufacturing thanks to its massive home market, low prices, and developed infrastructure. About half of the slightly over one billion mobile phones produced worldwide in 2007 were made in China. India has rapidly become more prominent as an important manufacturing country alongside China. Vietnam has also started to attract investments, as especially the Asian companies are searching for alternatives for China.
Other EMS Locations
In addition to Hungary, the Czech Republic, Poland, and Romania, as well as other Eastern European countries such as Slovakia and the Ukraine have become appealing alternatives as countries for manufacturing. Large EMS companies have, in a short period of time, closed down plants in high-cost Western European countries. Mexico competes with China for the North American market, especially with lower transport costs and shorter delivery times. In South America, Brazil remains a key manufacturing country thanks to its growing home market and customs practices.
As the only EMS company focusing on the communications technology industry, Elcoteq is well established in Asia with three factories in China, one in India, and sales and customer support offices in Korea, Japan, and Hong Kong, with fully operational facilities close to the place where its customers want to be and want to do business. Low manufacturing cost has been one of the significant factors in Asia. Nevertheless, Elcoteq believes that it is no longer the only factor involved in making outsourcing decisions. As communications technology products evolve at a rapid pace with increasing complex designs and shorter lifecycles, manufacturing speed and accuracy must stay at a high level. The EMS has to integrate sub-systems to reduce complexity for the OEM and provide more flexibility. This means having design capabilities, lowering total cost of ownership (TCO), and having a thorough understanding of the market dynamics affecting the OEM.
The focus for Elcoteq is to develop and support its customers’ success, yet not compete with them in their marketplace. Elcoteq believes in a structural relationship approach with its customers, which is focused on trust, process alignment, co-evolution, and long-term commitment. These allow customers to focus on their core competencies, such as product innovation, brand image, and product sales..
Topics:
Asia, Communication Technology, Electronics Manufacturing Services, ems, IEMS, tco
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Elcoteq highlights Total Cost of Ownership in Next-Generation Mobile Technologies Seminar 2008 in Tokyo, Japan
Further to Elcoteq’s COO Jukka Jäämaa discussion on Total Cost of Ownership as CeBit Global Confrences Panelist, Elcoteq’s Business Development Director of Personal Communications Business Dr. Folkert Wierda presented a keynote speech on this topic again at above seminar on 17th April. The speech title was “IEMS: From ‘Quick Fix’ to Best Total Cost of Ownership” which stated ways to profit in the burgeoning communications market.
Using an EMS company that specializes in the communications technology market enables communications companies to have an asset-light corporation, increased flexibility, risk sharing, and it allows management to focus on products, brand, and sales. It increases the speed of doing business and time-to-market, reduces complexity, and provides the best total cost of ownership.
“There are so many new technologies, opportunities, and companies involved in the mobile communications industry, especially with mobile computing, that we are happy to add our expertise and experience as participants in the symposium” said Dr. Wierda. “Elcoteq considers optimization of total cost of ownership to be a key factor for brand owners in ensuring their profit as the communications market moves forward. We are hoping that our participation in this symposium raises recognition of this issue.”
Next-Generation Mobile Technologies Seminar 2008 is co-hosted by Inter-Embassies Mobile Forum (IEMF), The Mobile Computing Promotion Consortium (MCPC), and the Canadian Embassy in Tokyo. The event will share the latest mobile technology, products, and information among professionals of the wireless industry in Japan and overseas, including business executives, decision-makers, buyers, engineers from mobile phone carriers, handset manufacturers, and systems integrators..
Topics:
Communication Technology, Communications Networks, Electronics Manufacturing Services, Personal Communications, tco, Total Cost of Ownership
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REACH Unifies Chemicals Legislation
The European Union’s chemicals legislation was reformed at the beginning of June 2007 when the new REACH Regulation came into force. REACH is intended to improve the protection of human health and the environment and develop chemicals legislation in the European Union.
REACH is short for Registration, Evaluation, Authorization and Restriction of Chemicals. The primary objective of the new Regulation is to gather research data on chemical substances and ascertain how they can be used safely, both in terms of human health and the environment. Now that the Regulation has come into force, any substance that is imported to or produced in the European Union in quantities of one ton or more annually must be registered. About 30,000 such chemicals are in use in Europe. Approximately 300 new substances are introduced to the EU market each year.
REACH has not been created from scratch, but builds on existing legislation. “Since 1981, the EU has required that all new chemicals brought to market undergo basic testing. However, most of the substances in use were introduced before 1981,” says Mia Nores-Korkeamäki, Adviser, Environment at the Federation of Finnish Technology Industries.
“If sufficient research data does not as yet exist on a certain chemical, its manufacturer or importer might have to perform or commission studies,” says Ms. Nores-Korkeamäki.
Registration will be carried out over the course of 11 years in three stages. Unregistered substances can no longer be produced or imported. The pre-registration of chemicals will begin in June 2008 and lasts half a year. “It’s vital for chemical manufacturers and importers to be involved in pre-registration, as that will enable them to comply with REACH transitional periods,” she says.
Pre-registrants that manufacture a certain chemical will be assigned to a SIEF (Substance Information Exchange Forum) to research and register the substance in question. SIEFs are intended to minimize overlapping work for all parties.
Greater Corporate Responsibility
REACH has given greater responsibility to companies to manage the risks of chemicals.
“REACH defines the obligations of companies in accordance with their role. An economic actor may be a manufacturer, EU importer, downstream user or distributor. An actor may have numerous roles,” says Ms. Nores-Korkeamäki.
Companies that manufacture and import chemicals are obligated to evaluate the risks caused by the use of substances and provide safety information to the entire supply chain – for instance, so that companies using chemicals in their own production can operate safely and responsibly. Sufficient information on health and environmental impacts is not yet available on most of the 30,000 substances that are currently in use.
REACH applies to almost all chemicals used in industry. R&D is exempted from registration, with certain conditions. In the manufacture of electrical and electronic products, chemicals are mainly used in the soldering and cleaning of components. In addition, the functionality of certain components is based on the chemicals they release.
A Chemicals Review Facilitates the Process
Under REACH, Elcoteq’s customers are most likely categorized as downstream users. They are responsible for ensuring the continued availability of the chemicals they need and seeing to it that they are used correctly at their company. A downstream user may have to register the intended use of a chemical on its own if the manufacturer or importer has not registered said intended use.
“In the communications technology industry, a company might also have to serve as an importer due to contractual reasons. Then the company should try to think of alternative sources for its chemicals or replace them with other chemicals in its processes,” says Mia Nores-Korkeamäki.
Elcoteq has made preparations for the chemicals legislation reform for many years. A Chemicals Review has been carried out at the European plants to determine the chemical substances, their intended uses and amounts. Cooperation between the Product Development Services, New Product Introduction and Sourcing organizations has been firmed up while the Review was in progress.
The most important consideration for companies is ensuring the future availability of the chemicals they need. REACH testing requirements are expensive, which might make the production or use of certain chemicals unprofitable, especially in the case of low-volume specialty chemicals.
“It’s probable that the Regulation will lead to some products being withdrawn from the market and replaced. For this reason, it’s important for a company to contact its chemical suppliers to check whether they intend to register the substances they supply to the company. I also firmly recommend that downstream users avail themselves of their right to inform the chemical supplier of the intended use of the substance,” says Ms. Nores-Korkeamäki.
Standardized practices and researched substances will ensure the safe use of chemicals throughout the supply chain. This will benefit the environment and people all over the world..
Topics:
Brand, Communication Technology, Contract manufacturing, Corporate Responsibility, CR, Design, ems, environmental, European Union, REACH, SIEF
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