COMPANY REVIEW Lohja Vantaa Västerås Elva Malmö Nova Dubnica Zürich Turgi Beijing Suzhou Hong Kong Manufacturing plant Office ENICS AG Enics is the partner of choice for industrial electronics companies with our world class electronics manufacturing services (EMS) – from development support to new product introduction SOME KEY FACTS AND FIGURES ABOUT ENICS to manufacturing to life extension services. As one of the largest EMS providers in the world, we • Electronics Manufacturing Services (EMS) for Industrial Enics is headquartered in Zürich, Switzerland and has a help our customers in the fields of transportation, Electronics (IE) customers total of eight manufacturing plants in Finland, Sweden, Esto- building automation, energy, industrial automation • Sales 2011: ~ 380 MEUR nia, Switzerland, Slovakia, and China, as well as a sourcing and instrumentation to optimize their value • One of the top 5 EMS companies serving Industrial office in Hong Kong. The latest addition to the Enics plant chains and improve their competitiveness. customers; among top 20 EMS companies in the world network is its new site in Suzhou, China. This site enables We accomplish this by helping companies increase • Over 3000 employees in 8 plants on two continents, Enics to serve its customers in Eastern China more effectively. productivity and product reliability and decrease Asia and Europe time-to-money and total cost of ownership. • Over 40 years of experience in industrial electronics • Management Buy-Out in 2004 Enics is a young company, founded in 2004, but our competence and drive were created a genera- tion before that. Our roots are in big industrial Sales development (MEUR) corporations like ABB and Bombardier, in electron- ics companies like Elcoteq and Flextronics. From 450 those roots, Enics was born. 400 We, at Enics, have taken a few steps further. As a 410 350 third generation company, we use extensive 378 (estimated) product knowledge to provide a much deeper level 300 339 of service to our customers. Their products are 327 317 complex and the product life cycles are consider- 250 279 ably long. They understand that finding a partner 271 200 who can manage this complexity, with expertise in 216 many diverse market segments, over long periods 150 of time, is challenging. Enics is an electronics manufacturing services (EMS) company with a 100 129 clear focus on industrial electronics businesses 50 and customers’ needs. Our strong foundation and proven performance provides a valuable 0 partnership to our customers. 2004 2005 2006 2007 2008 2009 2010 2011 2012 Enics Company Review 2011-2012 3 LIFE CYCLE MANAGEMENT – WE CARE ABOUT IT! Enics offers services and solutions along the entire life cycle of our custom- ers’ products. These services include development, support, prototyping, industrialization, manufacturing, product care, spare part production, and repair and maintenance. All these “solution pearls“ contain multiple related services – about 50, to be precise. A few examples are: • Our test development specialists provide professional test concepts. The customer benefits from an optimal balance of cost and quality. One of FOCUS ON QUALITY our highlights is Enics’ standard functional test platform. It has high test quality, with short development time, at a competitive cost. AND RELIABILITY • Our fast prototyping shortens time-to-market and increases profitability. • Our guided new product introduction with accompanying processes and We are aware that in our business environ- gate-reviews enables total costs to be optimized and significantly shortens ment, competiveness, reliability, and quality time to market. are critically important to success. We are • Within manufacturing we provide six levels of system assembly. This con- more than willing to participate fully with our sists of printed circuit board assembly (PCBA) to box build, the assembly customers to have a positive impact on every- of subsystems, total systems (cabinets), and systems with variants, plus one’s Quality of:for Life. Therefore, we focus design to order. No matter what the volume or level of assembly, our all our activities on fulfilling our customers’ customers’ products are delivered on time, to the right place, with the expectations and helping them to succeed. right quality. This is achieved through world class manu- • With only the bill of material and Gerber data’s to the ready product with facturing and related services. We use tools Enics’ new design for manufacturing analyses. like lean manufacturing, six sigma, and the • Our life extension solution consists of after sales services, component production parts approval program (PPAP) to care, and product care, to ensure e.g. that our customers can fulfill long- ensure that the highest quality standards are term obligations to their end-customers. met. We have in-depth knowledge about the way the services we provide interact and mu- All 50 services we provide throughout the product life cycle have one thing tually influence each other along the product in common: They add substantially to our customers’ value chain and guar- life cycle, and have established lean processes antee high class products. accordingly. As a result, our customers’ prod- ucts are fast to market because we indus- trialize them from the beginning. A further Manufacturing benefit is continuous cost reduction thanks to established interaction, global sourcing and the use of our worldwide manufacturing facility network. Industrialization Product Care Prototyping Spare Parts Development Services Repair & Maintenance 4 Enics Company Review 2011-2012 5 WORLD CLASS MANUFACTURING Leadership focuses on doing the right things; management focuses on doing things right. Stephen R. Covey In Enics, we define World Class Manufacturing (WCM) as a mix of different efforts, practices, and behaviors. Standardization Consistency High-Level Knowledge Execution Benchmark Continuous Improvement + Flexibility World Class Performance Technical and manufacturing engineering standards and competencies are developed and measured at every Enics facility. We look for consistency and encourage employees to make decisions based on our objective to have a global culture. Enics considers benchmarking as a way to learn, as a tool for overall improvement, and as a method to increase networking among employees. We want all employees to feel they are part of the Enics Global Network organization, striving to be world-class in the execution of their programs, while feeling local at the same time. World Class Manufacturing Elements at Enics are: EMPA Enics Manufacturing Process Assessment (EMPA) is a global tool for setting standards and assessing Enics Business Units’ (BU) critical manufacturing pro- cesses. It tracks the world-class performance of the Business Units Network. Lean Manufacturing At Enics, we are committed to eliminate waste in all forms. Enics deploys Lean Manufacturing training and coaching throughout its network to enhance Continuous Improvement efficiency and productivity in our operations. We create flow and speed Continuous improvement is the key enablerer to become a WCM company. on our manufacturing shop floor: Enics considers Lean as the strong-arm Enics has set different measuring and improving tools in order to continu- for WCM. Lean is an ongoing process of change involving everyone in the ously guarantee the World Class performance. organization. It improves Quality, Cost, Delivery, Safety, Morale (QCDSM). Problem Solving and Six Sigma Operational leadership requires ensuring that organizational processes are Enics uses Six Sigma to solve product and/or process challenges to reduce effectively carried out on a day-to-day basis, monitoring performance, and variation. Enics uses DMAIC (Define, Measure, Analysis, Improve, Control) to en- addressing constraints. As part of Word Class Manufacturing, continuous hance process behavior, to execute improvement plans, and to reduce defects. improvement never ends! 6 Enics Company Review 2011-2012 7 Volume price agreement negotiations One cornerstone in our supplier relations man- with Enics’ suppliers are conducted a minimum agement is the preferred supplier pro- of three times every year. We continually strive gram. Enics consolidates purchasing volume to offer greater flexibility and to make the as much as possible with our approximately 40 supply chain more efficient. We work with our preferred suppliers. This is an opportunity for suppliers to increase our supplier integration our suppliers to receive the benefits of greater models. This means that we will have even purchasing volumes and reduces the risk in more of our suppliers using logistical models the supply chain. This program increases the such as consignment, KanBan, reduced lead- attractiveness of our sourcing to suppliers. time programs, buffers, etc. Of course, at the same time we need a wide range of regular suppliers to offer our cus- Our supplier relations management con- tomers competitive solutions to their unique cept is our competitive edge. We challenge needs. Our preferred supplier consolidation ourselves to be the best possible customer is increasing yearly, and we are now getting of our suppliers, pushing the boundaries and close to an optimal level of 70%. securing the mutual success of everybody in the entire supply chain. The partnerships we build with our most trusted suppliers yield fast action, superior information-flow and a solution-oriented business. Thus, a win-win- situation for all parties involved. ENICS