Australian manufacturers generally compete on the basis of the value delivered by highly innovative products that are quickly brought to market before copycat competitors attack older models. In this context, operational excellence is more about agility than operational efficiency, although efficiency remains essential. Following are the key operational reasons it makes sense to manufacture in Australia and choose a local contractor to supply your electronic PCB assemblies.
1. Enhanced Communication
Proximity to your manufacturing partner enables direct and timely communication. Face-to-face meetings and on-site discussions allow for immediate clarification of requirements and issues.
Misunderstandings due to language and cultural differences are also dramatically reduced. A key cultural problem is the tendency of Asian manufacturers to only tell you what they think you want to hear and to be respectful to the point of not being helpful. They will be reluctant to say “no”, leading them to say yes to unrealistic deadlines or manufacturing tolerances. They may also be reluctant to proactively suggest improvements to your manufacturing processes. At worst, they can make errors and be reluctant to admit or correct them for fear of losing face. These cultural issues are far less prevalent in Australia.
At Circuitwise, we believe we are far more responsive and collaborative. By contrast, Asian manufacturers are renowned for doing everything they can to win a contract, after which the responsiveness steadily declines. Customers often come to us for quotes after not hearing from their Asian manufacturers for weeks. Of course, some foreign manufacturers are better than others, but it takes a considerable investment in time and many expensive foreign trips to build a trusted relationship.
2. Superior Quality Control
Local manufacturing allows for regular on-site audits, real-time troubleshooting and refinement of production processes. While quality control is mandatory for most manufacturing organisations, regardless of country, not all quality systems are equal. For example, Circuitwise has invested heavily in computer systems with a level of sophistication that is hard to match.
It’s also much easier to work with local manufacturers to define what you need in terms of traceability systems and maintenance of records, in the knowledge they can be relied upon. To gain that level of reliability in Asia requires strict auditing and a lot of overseas flights to keep off-shore manufacturers accountable. While these problems can be overcome by big-volume consumer electronics brands from Western countries, they come at a cost that is not affordable for medium-sized businesses.
A final factor is all the intangible factors, such as conscientiousness. These factors are hard to prove but nonetheless real. For example, an often-undervalued metric is the stability of our workforce. At Circuitwise our staff have an average employment of over 10 years. By contrast, Asian manufacturers have a high churn rate in their workforces, particularly after the Lunar New Year holidays, with a corresponding dip in quality as newcomers are onboarded. Our loyal workforce leads to pride in work, active contribution to continuous improvement, and a level of conscientiousness that translates to reliability and quality in your Australian-made product.
3. Smoother New Product Introduction
Proximity to local manufacturers facilitates rapid prototyping, allowing for quick iterations and refinements of designs. This agility accelerates the development cycle, enabling faster identification and resolution of potential issues before full-scale production. The ability to prototype and test new designs quickly is a key advantage of local PCB manufacturing, supporting innovation and reducing time to market.
Introducing new designs into production is a complex process where early collaboration with your manufacturer pays enormous dividends. Local manufacturing partners can provide design-for-manufacture (DFM) advice that can make or break the per-unit profitability of your product.
For example, putting all heavy components on one side of a PCB may be best to facilitate easier passage through the reflow oven. This design choice needs to be made early, and DFM collaboration with your manufacturer is key to that.
Beyond DFM, there is a lot of “devil in the detail” at the heart of a smooth new product introduction. For example, rigour in controlling revisions and ensuring the final production version is fully documented is critical. Building a close relationship with a local manufacturer will ensure the volume production process is robust and wholly owned by both your own team and your contract manufacturing partner.
4. Faster time to market
Manufacturing locally significantly cuts down on shipping times and logistical complexities. For companies that value speed of delivery, manufacturing in-country brings obvious benefits. In-country shipments are not subject to strict custom rules and regulations that not only add cost but can introduce delays. A simple mistake with incorrectly completed forms can see parts and shipments stopped or returned.
Another overlooked benefit of retaining all elements of your supply chain in-country is that the major holiday periods across your supply chain are aligned. Manufacturing in Asia requires a balancing act when their major holiday periods clash with your peak production schedules.
Faster turnaround times are a vital advantage in competitive markets, enabling businesses to maintain production timelines and respond to market demands efficiently.
5. Flexibility in Production Scaling
Local manufacturers can more readily accommodate changes in production volume, whether scaling up for a large order or scaling down during slower periods. This flexibility ensures that your manufacturing capabilities align closely with market demands, optimising resource utilisation and reducing unnecessary costs. The scalability of automated production lines allows businesses to adapt quickly to fluctuating demand, maximising resource utilisation and enhancing overall operational agility.
For example, a Circuitwise customer Adapt Ideations recently introduced a complementary mass charging product to support its flagship asset tracking and monitoring device. The mass chargers were low volume, and they did not want to go through the hassle of dealing with an Asian manufacturer.
Adapt Ideations’ Co-Founder and Director Anirban Gupta said he had wanted to “diversify our supply base to deliver supply chain security and improve the sustainability of our operations as we move forward. We are looking to do more manufacturing in Australia and look forward to working more with Circuitwise in the future.
Choosing to manufacture your PCBAs locally in Australia offers substantial operational benefits as outlined above. These advantages not only improve operational performance but also provide a competitive edge.
Contact us to discuss the benefits of manufacturing in Australia.
This is the 2nd article in a four part series highlighting the benefits of local manufacturing. Part 1 - The commercial case for manufacturing locally
Part 2 - Operational agility requires local collaboration - this post.
Part 3 - The environmental imperative for local manufacture - coming soon.
Part 4 - Why local manufacture matters for your brand - coming soon.
Commentaires