At the risk of sounding like my parents, I cannot believe where the time has gone. The preceding 12 months since my last update have probably been some of the most eventful in the electronic contract manufacturing industry’s history.
There have been two catastrophic failures in the industry, namely the demise of Elprom and Professional Electronic Manufacturers (PEM), and some large players teetering dangerously close to disaster. Much needed capacity and intellectual capital has been irreversibly removed from the industry. We can only hope that the current spate of consolidations and corrections are past us.
That is the bad news out of the way.
The good news is that CZ Electronics is growing at a healthy and respectable pace. The plant is running at close to full capacity, and the company has been showing solid profits for more than a year. As most companies in our position would, this has afforded us the luxury of replacing and upgrading our machinery.
The most exciting addition to the factory is the purchase of an Assembléon AX501 pick-and-place machine (pictured) configured as a chip shooter. This is the first of its kind to be installed in South Africa and will be supported by Test and Rework Solutions and Assembléon directly.
This rather impressive machine is already making a significant difference to our assembly times, as it currently runs at 45 000 components per hour, and if needs be can double that with the installation of another two robotic heads.
As an example of current speeds, we are currently assembling a PCB with 504 SMD components on it, the majority of which are 0402, every 45 seconds. Such is the success of this machine that we are currently evaluating the Assembléon AX201 with a view to increasing our placement rate of ICs and fine-pitch devices.
Large investments have been made in our ERP system with the addition of barcode scanning throughout the factory, from goods receiving to dispatch. This will eliminate any errors such as incorrect component placement, while introducing complete traceability throughout the process.
Further investment has been made in beefing up our ESD systems, with the introduction of ESD test and discharge stations throughout the company. In a continuous onslaught against static, the entire SMT department has been sealed and climate controlled with the installation of humidifiers.
The outlook for the second half of the year remains excellent, with order bookings scheduled up until annual shutdown. The company is preparing a large war chest for the commencement of set-top box manufacture, but would like to reassure the current customer base that any STB business the company may secure will not impact upon their delivery schedule.
In the event that CZ Electronics secures any STB work, additional investment in the company will be made from cash reserves. CZ Electronics took a very specific stand with regards to the entire STB manufacturing scenario, and is the only contract manufacturer not in competition with its customers.
It is our view that the current long-term relationships we have with our customers is more valuable than short-term, project-driven manufacture. We advise all customers and especially potential customers to be cognisant of this fact.
Positive feedback from customers, especially regarding build quality, pricing and delivery times, is growing all the time and the number of referrals we receive is growing almost daily. All in all, a rather positive space to be in at the moment.
We, as is our custom, would like to thank our loyal customers for making all of the above possible and would welcome enquiries from anyone interested in quality, price and delivery from their contract manufacturer.
A company is only as good as its supply chain, and CZ Electronics wishes to place on record its sincere thanks to the sterling work done by its suppliers over the past 12 months in ensuring that customer expectations were met.
For more information contact CZ Electronics, +27 (0)11 914 5240, gscott@czelectronics.co.za, www.czelectronics.co.za
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