Foxconn fast-growing crisis of inspiration and strategic group
Shen Wei Gang Zhang Research Fellow Researcher Yang Liu, chief researcher Pat Gou
marriage hearing filled with large and small media. The richest man in Taiwan, has surprised the media more than once.
Foxconn 1974, started production of TV sets plastic knobs small plant, after thirty years of development, has become a global IT, consumer electronics manufacturing, no doubt about the overlord.
in parts and components, Foxconn production of computer cases, memory expansion slot, graphics cards, fans, etc. In addition to CPU and memory outside of almost all computer parts. the final products, including Hon Hai produced by computers, mobile phones, game consoles, MP3 players, monitors, digital cameras .
powerful manufacturing capacity of electronic components and modules for the OEM Foxconn field in the final product laid the foundation for rapid expansion in many areas has become the industry leader .2000, Foxconn to enter the field of mobile phone OEM to 2005 years has become the world's largest mobile phone on behalf of the factory; 2006, Foxconn, the world's largest digital camera module foundries.
present, Foxconn's customers include many international well-known electronic brands, many of which even the same product areas competitors. personal computers: Dell (Dell), Hewlett-Packard (HP), Lenovo (Lenovo) and Sony (Sony), etc.; consumer electronics: Sony, Apple (Apple), Nintendo (Nintendo) and Microsoft (Microsoft), etc. ; mobile communications: Nokia (Nokia), Motorola (Motorola) and Apple;
Foxconn's rapid expansion has made it the world's largest EMS (Electronics Manufacturing Services) companies .2004, Foxconn to 17.2 billion U.S. dollars turnover for the first time become the world's largest 3C foundry. According to statistics, in 2007, Foxconn's employees in China as many as 75 million people.
Figure 1. Foxconn calendar year's turnover (source: Based on the company's financial reporting order)
the origin of the huge empire: Strategic trilogy
then, Foxconn is how to achieve such a rapid develop? Foxconn development strategies and through the internal management of research, we found that Foxconn's success is mainly derived from three aspects.
first step in the development of core competitiveness of manufacturing and win more customers from the company's inception
, Foxconn to focus on precision mold design manufacturing capacity, and ultimately formed the core technology of precision molds for the competition. Foxconn Precision mold design and manufacturing abilities can be divided into three stages: the hands of the workshop stage, machining stage, and eCMMS (Component, Module, Move, Service) stage.
early in the 1975-1980 business year, Hon Hai to rely on the master mold workshop manual mold, after the mold has begun to cultivate talent, the initial formation of mold R & D, manufacturing capacity; With the information age, 1980 -1999 years, Hon Hai Precision mold into the machining stage, the scale of production has been continuously expanded. In the meantime, Hon Hai set up a chemical plating department, the use of CAD / CAM computer-aided design, and new equipment for a large-scale investment. by increasing the precision mold, Hon Hai will produce different size categories, materials and use of precision molds.
since 1999 with the rise of the Internet age, Hon Hai of the mold into the eCMMS stage from a primitive materials processing to the component manufacturers to the end product design and manufacture of vertical integration.
one to design: production centers in the vicinity of strategic clients to establish a new products, reduce time to market for mass production manufacturing
three areas: rapidly out of the mold, in the shortest time in Asia, North America, Europe, the three major markets of the manufacturing base layout of the production, integration of procurement, manufacturing, quality control and other processes , the rapid expansion of global delivery capacity
: investment 30 million dollars in developing ERP systems, durability, security, the security and quantity of goods delivered to the client to specify the location of new technologies to achieve zero inventory
wireless network
Technology
optical lens coating technology
network design
composite nano-nanometer process technology
measurement
CAD / CAE technology
one to design, manufacture three areas, the global delivery < br> complex, modular, optoelectronics, high frequency, surface mount directly
CNC-EOM
metal plating
CAD / CAM
SMT
hand-cut plastic mold
Figure 2. Hon Hai Hon Hai mold manufacturing capacity along with the continuous improvement of products have begun to Hon Hai from simple to complex, from upstream to downstream extension. In the era of hand-molding, the main products are TV knobs and other plastic products.
in the mechanical modeling time, Hon Hai has chosen its own more access technologies, and has broad market space for connector products. using hand-molding experience time, Hon Hai has a beginning, at least 40% -50% of the computer connector production technology. The rapid development of connector products, also contributed to the mold process of upgrading, Hon Hai has begun to gradually produce more high-end and sophisticated computer connector. in support of the mold manufacturing capacity, the Hon Hai's product line from the connection control extended to the case, memory expansion slot, graphics cards, fans, etc. In addition to CPU and memory all but computer parts. high-precision mold making between the various parts and assembled easily, Hon Hai, through its ability to mold manufacturing, parts production meet, forming a barebones production capacity.
end, with its own cost and vertical integration advantages of rapid response, Hon Hai became fully involved in the computer, consumer electronics, communications, and other end-product manufacturing of products, including Hon Hai current computers, mobile phones , network communications equipment, LCD monitors and game consoles. use of bring customers high-quality manufacturing services to win customer recognition.
customers through R & D centers and manufacturing around the base structure of the arrangement, improve customer responsiveness. through the to achieve Foxconn OEM transfer. For example, as Internet companies transition to a Nokia 2007, Nokia, Foxconn handset OEM orders account for one-half of the business.
Hon Hai's business model the integration of business processes with customers Figure
second step, expand the scope of services, expansion of Hon Hai in the customer's business processes with customers in the role of
formed close business partners to form development and manufacturing, the use of trademarks customer by customer sales or business cooperative mode of production; ODM (Original Designed Manufacturer) refers to the original design manufacturers, which can provide customers from product development, design and manufacture to maintenance of all the services later. Hon Hai is positioned
JDM (Joint Design Manufacture or Joint Development Manufacture), refers to work with customers to develop new products, deeply involved in the customer's business processes with customers to enhance the development. in the years of operation, the Hon Hai Precision IBM, HP, Sony established a long-term stability of the contact. consumer electronics products are characterized by short product life cycle, must occupy the market as soon as possible, to meet consumer needs, or face the risk out of the market. Hon Hai's rapid response and strong manufacturing capacity, is to reduce time to market of new products, and quickly occupied the market weapon; the same time, the key customer's order is extraordinary to meet the production capacity of Hon Hai's the key. Foxconn's customers can focus on ; marketing the integration process.
the third step, the overall cost leadership strategy cut its own low-cost mobile phone OEM manufacturing advantage, and quickly developed into the most important potential threat to Hon Hai. Motorola, Nokia and other manufacturers in order to prevent the Hon Hai monopoly in the manufacturing sector, have put their own parts of the orders issued to BYD, also accelerated the development of BYD.
follow the development model of Hon Hai
BYD BYD Company Limited established in Shenzhen in 1995, its main business of mobile phone batteries In 2003, Shakespeare Hon Hai Di follow the access to a mobile phone assembly certification .2006, mobile phone OEM revenue 5.1 billion yuan, an increase over 2005, 169.3%.
According to information disclosed by the Hon Hai Group: Since 2003, Hon Hai has more than 400 staff quit to BYD, which also includes a number of senior technical personnel and senior management. core human resources and the continuous loss of BYD, the rapid growth of mobile phone OEM business, gave an enormous threat to Hon Hai.
labor and land costs rise, is Hon Hai's manufacturing base transferred to other parts of China external cause. Hon Hai had to shift their production bases to cheaper labor in China inland. Foxconn size of the rapid growth in Shenzhen and other developed areas of land have been met, energy, environment and population, and many other bottlenecks. the face of imitators competition, Hon Hai through the Optical Business Group also created, to digital cameras and LCD TV industry extends .2006, Hon Hai acquired Premier Image Technology (Premier Image Technology Corp.), received compensation and housing quality glass molded lens processing technology and production capacity, Foxconn has made a magnesium aluminum industry, the scope of Hon Hai's product manufacturing will be further expanded. through joint ventures with the mainland, Hon Hai will magnesium aluminum industry and its precision molds, electronic product manufacturing capabilities combined with quick access to auto parts and automotive electronics.
Hon Hai to extend the logistics management capabilities, to integrate the value chain, increasing the bargaining chips with the customer, Hon Hai has also established a Cyber, dividends and more electronic end-products stores .1999 by the end of the first Cyber Digital products store opened in Shanghai, as of 2006, has grown to 40, 32 major cities across the country, the annual revenue of more than 90 billion yuan.
imitators for the industry, active protection of corporate intellectual property rights to ensure that Hon Hai's first advantage. relying on a strong legal department of plagiarism and the non-normal flow of key personnel to take legal action.
Hon Hai, the two pivot strategy: production distribution and human resources development strategy
achieve Hon Hai the layout of the two levers of production and human resource management.
production layout: quickly to market, to gain time. First of all, Hon Hai's R & D strengths focus on the customer are not familiar with PlayStation 3 R & D team set up joint research and development of next-generation game consoles. Apple's R & D personnel often communicate with Hon Hai's design department, the appearance of products, materials and other aspects of joint R & D cooperation.
Hon Hai's R & D institutions and more customers around the set, so R & D process can quickly interact with customers, potential customers and grow together. in IT field, rapid response is Hon Hai's most pressing needs of customers, the customers around the factories making Hon Hai to research and development work with customers to simultaneously In 1996, Hon Hai Compaq taking on huge orders, quickly established around the molding in the Compaq Factory; when there are new designs Compaq appears, Hon Hai in 24 hours can provide products in the prototype In 1995 to 1999, Hon Hai's computer chassis business to grow at a rate of 15% per year.
response capabilities in the client set up high around the small-scale factories, to help customers make the Hon Hai the product to market quickly. As customers are mostly concentrated in Europe and other countries, in addition to Hon Hai to set up factories in developed countries, the still factories around the country are selective, such as: Mexico (North America), Czech Republic (Europe) and so on. Hon Hai to help customers achieve rapid logistics and product distribution, through the JIT (real-time production systems) and supply chain optimization, and further improve their own rapid response. in foreign factories as well as rapid manufacturing and distribution, can also help short-term fluctuations in response to the needs of customers.
Figure 4. Foxconn Hon Hai
production arrangement strategy to make China its largest production base, to achieve the scale of the total cost under the effect of lead. Foxconn effective use of China good infrastructure and cheap labor, from a mold development, component production, with barebones group, to the whole ship, Shanghai set up the first plant in Shenzhen began, consumer electronic manufacturing park, covering 2,000 acres and employs about 300,000. Foxconn full advantage of labor resources in China features, cost savings, improve production efficiency. China has abundant labor resources, but relatively low level of education, Hon Hai will be the production process in detail through the use of decomposition, so that these employees can operate sophisticated machinery.
in factory management, production process, from the dimensions, specifications, operational specifications, test specifications decomposition step by step, to achieve principled. Hon Hai and the level of militarization of the centralized management structure, making the effective control in the management of the product of the the rapid development of the enterprise and the local economy through a collaborative model to achieve common development. Hon Hai advantages of scale for local economic development has brought great role in promoting .2007, Hon Hai in Shenzhen production base in Shenzhen to create exports accounted for about 20% of the city, pay taxes of about 50 billion yuan. Hon Hai's large-scale production, promote the local development of relevant industries, such as packaging materials, logistics industries. With the development of local economy and population continue to show mass effect; Hon Hai is located in Shenzhen Longhua area, Shenzhen customs have become the most mature major shopping district.
Figure 5. Hon Hai, the impact on local economic development, the scope and manner
great star effect as Hon Hai, the local government to do may provide for Hon Hai to facilitate, promote the development of .2001 Hon Hai, Foxconn Shenzhen Customs bonded factories took the lead in the pilot the competitiveness of enterprises .2007, Hon Hai to Wuhan in order to attract investment, 2.8 billion out of local government projects for the construction of supporting facilities of Hon Hai, which includes a 13 km dedicated railway line.
production layout Hon Hai The strategic shift is beginning to show development of the Group. in a certain geographic range, the individual product groups to focus on and achieve the scale of the effect of vertical integration .2006 November, Hon Hai to invest in Langfang in Hebei Mobile and accessories production base; and production base in Yantai achieved with the integration of wireless communication terminal products.
Hon Hai has been formed in the Yangtze River Delta region's industrial belt of a notebook computer, now including computer parts manufacturing and product assembly industries. with Industrial Distribution of China's strategic layout features, Hon Hai is another strategic shift to consider .2007, Hon Hai investment projects in Shenyang, Northeast China to be more advantageous to enter the auto parts and precision CNC machine tools and other fields. Shanxi primary magnesium production accounts for half of the world, based on this advantage, Hon Hai to build production base in Taiyuan, in the magnesium alloy body parts, precision molds and other production, the base will be fully completed in late 2008.
place
Category
established in Kunshan, Jiangsu
1995 年 PC connector
Shenzhen
1996 年
Barebone, consumer electronics
Beijing
2002 年
wireless communications products
Shanghai
2002 年 PC products and network products, body parts, semiconductor equipment
Hangzhou
2003 年
wireless communications (PHS phones)
Taiyuan
2004 年 3C product components, alloys
Yantai
2004 年
board computer products
Tianjin
2005 年
wireless communications products
Shanxi Jincheng
2006 年
optical products, optical communication products
Huaian
2006 年
computer peripheral equipment, Langfang, Hebei
2007 年
mobile phone parts, precision Die
Wuhan
2007 年
integrated mechanical and electrical products R & D and know
Shenyang
2007 年
CNC
Qinhuangdao
2007 年
high end electronics (nano-level signal transmission cable)
Nanjing
2007 年
software development and design
Jiashan
2008 年
Mold related products
Table 1. Hon Hai distribution of production base in China (Source: This order)
human resources management: the pyramid structure to the company's overall structure
basis, Hon Hai was established divided into three pyramid-shaped organizational structure. focus of the company's senior managers in the company's overall strategy formulation and implementation, and coordinate the various functions of the middle sector, the goal of reducing costs to the various aspects of decomposition. through orders lower than the price of competitors, high-style management in the strict basis, reasonable arrangements for the production process and improving the utilization of machinery and equipment, while achieving formulation and implementation. production line supervisors strictly enforce production management, quality management systems and other management systems, and conduct capacity development forecast and production plan.
strict management and supervision system so that employees can quickly complete the bottom of the corresponding work, and to ensure high yields. in the militarization of management mode, strict management system makes the goal of the bottom of the production staff can quickly grasp the experience. in the production process, will produce results strictly linked with the income of workers, is Hon Hai ; target management standards, more emphasis on organizations and individuals in the short term to ensure the best performance
quality as the center, built on the basis of full participation, the aim is to obtain long-term customer satisfaction, and social interests of members of human
resource management objectives based on anticipated requirements
the main responsibilities of individuals, the results should be achieved, and as assessment criteria for assessing individual contributions will be successful and work incentives
strictly linked to the formation of all personnel and departments product quality information and communication channels; all active employees and departments involved in all aspects of the quality management for the organization
advantages and measure the target is easy to decompose the target management will be carried out to ensure a good performance; through direct the incentives to make all employees have higher job performance
to achieve to improve quality, reduce consumption and increase efficiency for the purpose of continuing to improve the quality of workers and businesses quality; continued implementation of staff training, continuous quality improvement to create a culture of create continuous learning, improvement and enhance the cultural atmosphere
shortcomings
can inspire and intended results are not necessarily compatible, it is difficult to ensure fairness, thus weakening the effect of target management requirements of enterprises of all employees
has the intrinsic incentive to improve quality; on the coordination of the entire high demand; the short term may result in increased production costs
Table 2. target management compared with the total quality management (Source: This order)
to obey overall development strategy, Hon Hai for the different levels of employees, but also to take a different pay structure and incentives.'s senior managers, equity incentives is the most important part of the focus on training their dedication. Hon Hai large proportion of re-investment and rapid development of rolling stock brought tremendous value, but also for senior management personnel has brought great wealth; Therefore, the growth of high-level cadres as one of the most important goals.
company for mid-level cadres provide a competitive welfare and security, foster their loyalty to the enterprise and dedication. Hon Hai around the base and internal production of many leisure facilities have been established and developed for senior managers use to build a golf course plan. In order to retain core position in the middle-level cadres and R & D personnel, Hon Hai has launched the a
Figure 6, the human resources management framework Hon Hai Gou
strong management, leadership achievements of the Hong Haizhuo execution
more in the enterprise development process, the strategic vision Gou enhance the trust of his subordinates . First of all, Gou can accurately grasp the needs of sustainable development of the enterprises have a key strategic capability. grasp the trend of market development, prepared in advance of Hon Hai continued growth, rapid expansion of the guarantee. 70s of last century building mold factory, 90 years into the application for expansion connector market, then passed vertically integrated model of development fully into the electronic products manufacturing, all show that the Gou strategic vision.
Second, Gou by virtue of the unique vision that has the potential customers, and ahead of the competition with each other partnerships In 1995, Michael b Gou use Dell (Michael Dell) the opportunity to visit the South, take the initiative to drive to the airport to send Dell an opportunity, and then Terry Gou and the way he arranged to visit Dell factory. was not one of Dell's top five PC vendors, Dell, Foxconn did not yet make direct purchases of spare parts, and now Hon Hai has become the largest supplier of Dell.
the same time, can Gou According to industry development to choose the right time and way into the selected strategic areas. Foxconn little into the supply chain is not a mature industry, the LCD panel industry until Japanese companies to phase out, after the rise of Korean companies, only Gou decided to enter. Gou some outstanding personality also added his personal charm. Gou can well be risky and cautious combination of courage to engage in risky strategic investment projects, but will be in the specific implementation process as much as possible reduce risk.
beginning a business, Gou mold manufacturing enterprises to improve capacity at the early profits into the mold factory building and to the success of this project there is great uncertainty at the time. Gou not fear of difficulties, the courage to innovate in the challenge and develop .1975, due to rising raw material prices, operating difficulties, business partners have quit, but not convinced this Gou collapse, but also to borrow money to stand alone.
the pressure Gou as an important factor in the success: hours.
great success even after the entrepreneur Terry Gou will still be the concern for long-term development and investment also increased the staff for business confidence. Gou most of its profits into the purchase of advanced equipment to improve the trust of its employees. through the front line, to lead its work in difficult, Gou set a model of leadership image. Gou that set a good example is that when difficulties or major decisions, leaders should lead the team in front-line combat, which can form a real leadership.
line Gou-depth case
know-how are? willing to provide it. We have received bigger? production for a short time, the customer called me and hope I can pay attention to this matter.
G5 is bleaching?, portable place is an arc?, like the glass side, is at right angles, be sure to hand to test, only know? will cut. I take the front line, good to test the acute angle, hand-cut to the respect of a mark,? blood. people see you first One to do the test, they found that it would cut the hand, non-change??, it is so good to change this issue?.
G5 is the fastest computer Apple licensing, production process, the need for high temperatures. summer, in Shenzhen production line, plant the temperature? reach xxxvii, eight?, there is no way to install? gas.
took place when SARS, the original work with us to leave the customer engineers, technical and Japan? willing to transfer . We are calling on the development of technology, but also a large side? production, the environment like a oven. jump to the first line together with the staff to do, they? will find the conference room operators to turn up the airconditioning in our command.
So Station In the first wire is the most difficult times, people see the leaders to work together, it is an encouragement to employees, that is, people trust in you.
I was two months after the terms ; blood, sweat and tears. Occasionally there will be tears of despair. But when we break through the difficulties? have tears of joy.
to be a coach with? dynamic performance, better than about one hundred speeches. beautiful words, inverted? such as lead by example. I think management level staff on this aspect of trust is the beginning. established a good mutual trust, which in turn can be implemented to ensure a certain degree of decentralization, promoting the expansion of enterprises.
strong management style that Gou has the absolute authority of the Hon Hai
Terry Gou is the core of leadership philosophy. Gou that one hundred and seventeen: a leader must have , leaders should be more domineering. participation in operational decisions.
within the enterprise management, Gou responsibility and reward and punishment-oriented. For Gou, the management of the content is responsible, as long as each employee with a clear responsibility, we can effectively manage.
> reward and punishment Gou key to its responsible management and effective set of work values to distinguish right and wrong, to prevent the company have a will reward them in many ways, and for not able to complete the task, Gou is not only strict penalties will be tough talk. at the company, in charge of any level, mistakes are called to stand up in class. There Gou saw a majority of business people sitting in the office, he denounced said: Hon Hai factory in mainland militarization management.
Gou said, all those who may be subject to sanctions. Sony products in the shop workers into the Nintendo products, workshops, he'd be fired. at the company, the workers are in accordance with the militarization of daily life patterns. at the company's staff quarters , employees are like soldiers, like bedding neatly folded.
by strengthening its organizational learning and for education Hon Hai Gou improve the implementation capacity of
through continuous learning, reflection and summary of the formation of Terry Gou a set of their business philosophy, and down to easily understood, travel time, at any time absorb success and riches. Gou long habit of reading, once told two books.
well-known enterprises to overseas study, to seize the opportunities, learning management, development strategies .1985 years, Gou was specifically requested to serve Terry Cheng, HP, Hon Hai was leading the retreat of all three days and two executives night, the
No comments:
Post a Comment