Quantifiable Results

The test of any process is the results it achieves. The following examples illustrate ways EPIC is helping its customers achieve their goals.

Medical Device Manufacturer

Challenge: A high mix medical customer wished to rationalize its supply base and increase its implementation of Demand Flow practices.

Solution: EPIC was also beginning its journey in the implementation of a Synchronous Flow Manufacturing process optimized for the EMS environment. EPIC worked with the customer to ensure that EPIC’s processes aligned with the customer’s operational improvement goals.

Joint goals achieved included:

Quality: PPM Trend and Improvement Initiatives

• Goal: reduce PPMs by > 50% per year
• Performance: reduced PPMs by 68% in 2002, 64% in 2003 and 48% in 2004

Delivery: OTD Trend and Initiatives

• Goal: maintain 100% OTD
• Performance: 100% OTD for past 36 months

Inventory: Turns Trend and Improvement Initiatives

• Goal: increase inventory turns from 4 to > 45
• Performance: Achieved peak inventory turns of > 60

Price: Cost Reduction Initiatives (VA/VE Studies)

• Goal: minimize total cost of acquisition
• Performance: EPIC-generated cost savings initiatives totaled $ 3.4M for FY2004

Results: Today, EPIC produces approximately 72 different PCBA assemblies for this customer and is their primary EMS partner. EPIC received this customer’s World Class Supplier Award in 2003 and 2004. Over a four year period, the increase in inventory turns enabled this customer to reduce working capital by approximately $10M.

Consumer Electronics Manufacturer

Challenge: A producer of high mix large screen TVs did not have the capacity to meet demand and needed a very flexible partner to ship on demand (within 48 hours of pull signals) to meet distribution order fulfillment requirements.

Solution: EPIC established a kanban pull system at the OEM facility with returnable containers and frequent replenishment.

Results: EPIC transferred production of 15 different assemblies within 2 weeks and is responding to daily pull signals with 100% on-time-delivery since the month after the transition was completed. EPIC also increased the line yield from 85% at the OEM facility to 99+% within 2 months of the transition.

Automotive Tier-1 System Supplier

Challenge: A developer of automotive antenna systems designed a next generation control module in Europe and needed a manufacturing partner for North America. The application was for a General Motors vehicle and the Tier-1 needed an EMS provider with automotive experience to provide all manufacturing, direct fulfillment and related documentation for OEM validation.

Solution: EPIC worked as an extension of the Tier-1 in North America to receive EDI releases from the OEM and provide just-in-time deliveries with returnable containers on a bi-weekly basis. EPIC prepared all necessary quality submissions (PPAP, DFMEA, PFMEA, etc.) and hosted the OEM for “run-at-rate” demonstrations.

Results: After the launch and design stabilization efforts were complete, EPIC has maintained a record of 100% on-time-delivery and 0 PPMs. EPIC is now working with this Tier-1 System Supplier to provide similar services for VW de Mexico and is evaluating opportunities to export these products to Europe and Asia.

Industrial Security System Manufacturer

Challenge: In an environment of heightening competition, a Fortune 500 developer of building security systems was faced with the challenge of improving customer service levels while reducing inventories.

Solution: EPIC worked with this customer to develop their first vendor managed inventory (VMI) location for PCBs inside their factory. EPIC owns and manages the inventory on the customer’s factory floor until the time of usage, utilizing a Min/Max system to replenish circuit board inventory on a real time basis with very short replenishment lead times (typically less than 3 days). In addition, EPIC has begun providing additional value added services by performing system integration (i.e. Box Build and final test) and supplying these systems on the same VMI agreement, further reducing our customers work in process inventory and working capital while enhancing their flexibility.

Results: Since instituting the VMI model, our customer’s inventory turns have improved dramatically to over 30 turns. Just as importantly, EPIC Technologies has maintained 99%+ on time delivery, with no stock out situations during the past 2 years. As a result, our customer‘s delivery performance to their customers has been 100%! Today, EPIC Technologies is the primary provider of electronic assemblies for this customer.

Automotive Aftermarket Remote Start and Security Device Manufacturer

Challenge: A leading provider of automotive aftermarket remote starters and alarms found that their internal manufacturing operations were a significant detractor to their core competencies of designing and marketing these devices. Necessary research and development resources were also supporting manufacturing operations. As a result, design cycles were taking longer than necessary and product quality suffered.

Solution: In 2003, a new management team very quickly made the decision to focus resources on their core competencies and divest manufacturing operations to a proven electronics manufacturer. After an extensive review of several electronics manufacturing services (EMS) providers, this customer chose EPIC Technologies, primarily because of the flexibility in the EPIC Technologies manufacturing model and our long history in working with radio frequency (RF) devices. EPIC was able to transition production within a 3 month period, which included a complete redesign of the test tooling to a fully automated and much more robust test platform, which was developed and tooled by EPIC.

Results: Product throughput and yield has improved dramatically. Today, EPIC Technologies is realizing a 99%+ functional test yield on these products, a full 15% improvement over the prior process. In addition, EPIC has been able to offer incredible manufacturing flexibility, managing traditional seasonal increases in demand with our finished goods Kan Ban methodology. Since EPIC is managing the entire component supply chain, complete assembly and test, as well as direct fulfillment and logistics to the end user retail customers, our customer enjoys a virtual manufacturing model, enabling almost infinite inventory turns for them. As a result, this customer has been able to channel working capital and technical resources into product development and marketing, while entrusting EPIC Technologies as their manufacturing partner, acting as an extension their enterprise.