Solectron: From Contract

Manufacturer to Global Supply

Chain Integrator

Logo M9821803 Selenge

D9801001 Sean
D9601302 Ryan
 Outline

1 Overview of Solectron Corp

2 Case Introduction

3 Questions

4 Q&A

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 Solectron corporation
Solectron Corporation was a global
electronics manufacturing company for
original equipment manufacturers
(OEMs). It pioneered the electronics
manufacturing services (EMS) industry
in 1977 and is a leader in the field.
Solectron first customer designed and provides integrated
solutions that span the entire product cycle-from pre-
production planning and design, to manufacturing,
distribution and end-of-life product service support-for the
world’s leading electronics original equipment
manufacturers.

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 Solectron corporation
 Electronics Manufacturing Services provider
 Founded in 1977
 Headquartered in Milpitas, Calif.
 Sales of $10.4 billion in fiscal 2005
 More than 50 locations worldwide
 More than 50,000 employees
 Spans five continents, in more than 20 countries
 Serving customers in communications, networking,
computing and storage, consumer products,
automotive, medical and industrial markets
 Traded on the NYSE, under the symbol SLR
 Two-time winner of the Malcolm Baldrige Award
 Core Business
 Telecommunications /29%/– Cellular infrastructure equipment, Voice over
Internet Protocol (VoIP) equipment, IP PBX, wireless and wire line Broadband
infrastructure, optical networking equipment and DSLAMS.
 Networking /27%/– Core and edge routers, core and edge Ethernet switches, DSL
and cable broadband equipment, NICs and optical interconnect.
 Computing and Storage /25%/– Mainframe computers, PCs and notebooks,
point-of-sale systems, servers, storage systems and workstations.
Others /19%/
 Markets Automotive – ABS and airbag control modules, car audio and navigation
systems, engine and ignition control modules, telemetric, HVAC units and body
electronics.
 Consumer – Handheld devices (MP3 players, mobile handsets, GPS), video game
systems, PDAs, personal video recorders and digital set-top boxes.
 Industrial – Process automation equipment, test and measurement instruments,
security systems, semiconductor fabrication equipment controls and handheld
instruments.
 Medical – X-ray equipment, ultrasound equipment, fetal monitors, MRI scanners,
blood analyzers and surgical robotic systems.
 Field Services - Solectron also holds direct contracts with large companies,
providing an end user defect exchange solution for electronic units in the field.
 Aftermarket services - warranty management, parts management and logistics,
forward and reverse logistics, fast repair and return, asset recovery and remarketing.
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Solectron Corporation Business Segments

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Solectron corporation’s Top Customers

Text

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Solectron Financial Data

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Solectron Corporation’s Business Units

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Global Materials Business Units
 Culture and Development
Solectron cultural development
started in 1978, when Dr. Winston
Chen joined the company as
president. He used 2 basic principles
to run the company:
1. Superior customer service
2. Respect for the individual
3. Low cost & high quality

“We don’t tell people, ‘You’re good,’ or ‘You’re

bad’. We say, ‘Here’s what the customers say.’ That’s
very powerful tool.”
Dr. Winston Chen

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Company Vision, Mission, Beliefs

Vision Be the best and

continuously improve
Our mission is to prove worldwide responsiveness to
our customers by offering the highest quality, lowest
Mission total cost, customized, integrated design, supply chain
and manufacturing solutions through long-term
partnerships based on integrity and ethical business
practices

•Customer first
•Respect for the individual quality
Beliefs •Supplier partnership
•Business Ethics
•Shareholder Value
•Social Responsibility

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 The Five S’s

SEIRI

Organization:
 Distinguish between those
things that are needed and not
needed.
 Keep only needed materials
at the job site
 Throw away all unneeded
items immediately

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 The Five S’s cont’

SEITON
Orderliness:
 Put things in the right order
in the designed area
 Store all materials and
information in an orderly
fashion at all times. tidy, ready
to use, organized according to
frequency of use
 A place for everything and
everything in its place

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 The Five S’s cont’

SEISO

Cleanliness
 Problems are more visible
when everything is neat and
clean
 Find minor defects while
sweeping clean

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 The Five S’s cont’

SEIKETSU
Standardize
 Clean tools, equipment, and job
site immediately after use
 Equipment that s kept clean
runs better

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 The Five S’s cont’

SHITSUKE

Discipline
 Use and follow standard
procedures
 Follow company rules and
regulations
 Follow safety procedures at
all times

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The Five S’s

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Supply Chain Solution

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 Baldrige Award

Dr. Koichi Nishimura joined company 1988.

His approach was to never be satisfied,

continually question existing practises, and
strive for the continuous improvement
For his contribution to advancing
manufacturing practices, Nishimura has been
recognized by the American Society of
Mechanical Engineers and Solectron was
twice awarded the Federal Government's
Malcom Baldrige Award for manufacturing
quality.

Most people think we’re a manufacturing company. We’re good

at manufacturing, but we’re really a service company.
Koichi Nishimura, Solectron CEO
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