Original "Two Color Forming" Technology Foxconn Die Core Competitiveness Secret

Foxconn takes advantage of man-sea tactics in 24-hour shifts, mass production, and fast delivery, and poses a threat to Japanese artisans who have made unrefined and limited production. The original artificial technology of mirror frame processing can be converted into mass production, which has a great impact on Japanese craftsmen. According to Luo Baihui, head of the International Die & Metals and Plastic Industry Suppliers Association, this impact not only comes from the mass production of metal processing, but also from the innovation of mold technology. There are two kinds of resin in the frame of the body of the Japanese big game consoles, and the “two-color molding” technology owned by Foxconn allows two kinds of resins of different types to be molded in the same mold. This difficult technology is not Japan is achieved by Chinese manufacturers.

Japanese business community analysis shows that Foxconn has six core competencies:

First, the mold IT. Foxconn's 24-hour shift system complements the database of molds. It only takes one week to mass-produce the molds, but the industry needs one month. Foxconn uses human-sea tactics to make its molds R&D and production work 24 hours a day. It even established three precision mold vocational training schools in mainland China. It trains about 2,000 technicians a year. Students spend one year designing and manufacturing molds. Training, as long as the graduation exam is passed, will be sent directly to the "battlefield" Foxconn factory in China.

Second, internal parts. The secret to winning with price lies in the internalization of parts. Take Flextronics as an example, the internal rate of its shipment is about 10% to 15%, but Foxconn is as high as 30%, demonstrating its low cost advantage.

Third, the delivery speed is fast. With regard to speed, Foxconn will never let customers down. From the order to the delivery at one go, let the customer take the initiative. In particular, the short life cycle of consumer electronics products, whether it can capture the stable supply of goods in the market, depends on the delivery speed of the foundry.

Fourth, diversification of business. In addition to Foxconn's recent involvement in digital cameras and LCD TVs, it also invests in the biotechnology industry and the new material magnesium alloy industry.

Fifth: marketing cost. Foxconn's marketing expenses accounted for only 4% of turnover, much lower than the average of 22% of Japanese companies. Because Foxconn is mainly OEM, marketing costs do not have to be spent on the brand. In addition, the embarrassment of the low marketing costs of Foxconn lies in the fact that the company thoroughly exerts the spirit of “devils of details” of Terry Gou.

Sixth: brand globalization. Foxconn’s world-class visibility has surpassed Japanese companies in recent years. In the "World Technology Top 100" list published by the "Business Weekly" in 2006, Foxconn ranked second in 2005 and 2006. Among Japanese companies, Nidec was the 42nd in 2005, and Softbank was the 5th in 2006.

Similarly, there are six secrets to the success of Foxconn:

Tip 1: Use the know-how architecture production line of the automotive industry. Not limited to computer OEM, and actively strive for orders. Therefore, game machines and MP3s have also become Foxconn's foundry projects. This is in contrast to Quanta and Asus, which are mainly computer makers, or Flextronics, which is based primarily on mobile phones and digital cameras. When Foxconn OEM PS2, Japan assisted in establishing the production line; by the time PS3 came, Foxconn had the ability to build its own production line. Foxconn not only invited the Japanese technicians of the machine manufacturing industry, but also used the know-how mode of the auto industry production line, especially from the automotive industry. For example, the former Foxconn General Manager Dai Fengshu, or Terry Gou personally from the auto parts maker AISIN. Seiki company dug up.

Tip 2: The required materials, parts, and software are all integrated vertically. Foxconn OEM's required parts are almost all internalized, including internal software, and at the same time they have acquired “Chi Mei Communication” to establish internal software development and information flow. With vertical integration, even materials are produced on their own, making Foxconn the world's first-generation factory. Foxconn has surpassed the scope of business of general electronic foundries. In addition to the research and development of parts, the focus of research and development has also extended to the upstream, including manufacturing technologies for optical instruments such as lenses, manufacturing technologies for automotive parts, and unmanned technologies for production lines. The focus of future internalization.

Tip 3: Die design strength and speed advantage. Foxconn started from the production of resin-based plastic components and has a solid foundation for the development of molds. It established FineTech, a relational company in Tokyo in 2000, and is managed by Nakagawa Emeritus Professor Emeritus at the University of Tokyo, which has considerable research on precision molds and molds. The plastic frame of the mobile phone can be used to mold metal molds. Foxconn can deliver the metal molds in one week. Metal molds in metal frames can be delivered in 10 days, and the metal frame can be delivered in 3 days at the fastest, which will make it unmatched by the industry. The support of the database is also the reason why Foxconn has a die advantage. Terry Gou said that the mold is not affected by the economy, and mastering the mold production speed is to grasp the pre-production time. Therefore, Foxconn has developed its own FRT software to allow mold development and production to be performed in 24 hours.

Tip 4: Short-term delivery of supply chain management. In Foxconn's Shenzhen factory, there are customs officers stationed in the company, so that customs procedures can be handled as soon as possible. Thanks to the convenience given by the government to Foxconn, Foxconn has for many years been the largest exporter in mainland China.

Tip 5: Gou's unique leadership. Gou Ming-ming said that inefficient democracy is inferior to rational authoritarianism. This is the secret of Foxconn's success. Another aspect of militarized management that everyone is familiar with is the maintenance of dividend quotas for employees; the other side of the shift system and long-term work is to hire talents and recruit talents. These hard and soft approaches show Goo's leadership.

Tip 6: Amazing annual growth rate. In 2007, Foxconn’s sales revenue increased by 30% year-on-year. In 2008, growth slowed due to the economic crisis, but it also reached 22%. In 2009, it resumed its growth rate of 30%.

In May 2010, Terry Gou disclosed to the outside world that Foxconn has a total of 900,000 employees worldwide, including 800,000 people in the mainland. At this time, Foxconn is a mighty million army. This figure is amazing, from 700,000 people before the financial crisis in 2007 to 900,000, an average of 100,000 people per year. When other people need to lay off employees because of the financial crisis, Foxconn’s orders have increased and the number of employees has also increased significantly.

From the end of 2007, Terry Gou had a high-profile early warning of the global economy. In February 2008, Foxconn greeted the annual meeting, Terry Gou personally wrote down the couplet: “The high-rise buildings are standing tall and bright, but you’re strong, and you can't shake it; the trillion-dollar enterprise has a global presence and occasionally unpredictable circumstances. With advanced technology, we are still growing."