COMPANY REVIEW
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 to manufacturing to life extension services. As one of the largest EMs providers in the world, we help our customers in the fields of transportation, building automation, energy, industrial automation and instrumentation to optimize their value chains and improve their competitiveness. We accomplish this by helping companies increase productivity and product reliability and decrease time-to-money and total cost of ownership. Enics is a young company, founded in 2004, but our competence and drive were created a generation before that. Our roots are in big industrial corporations like ABB and Bombardier, in electronics companies like Elcoteq and Flextronics. From those roots, Enics was born. We, at Enics, have taken a few steps further. As a third generation company, we use extensive product knowledge to provide a much deeper level of service to our customers. Their products are complex and the product life cycles are considerably long. They understand that finding a partner who can manage this complexity, with expertise in many diverse market segments, over long periods of time, is challenging. Enics is an electronics manufacturing services (EMs) company with a clear focus on industrial electronics businesses and customers’ needs. Our strong foundation and proven performance provides a valuable partnership to our customers.
Lohja Vantaa Västerås
Elva
Malmö
Nova Dubnica Zürich Turgi
Beijing Suzhou Hong Kong
Manufacturing plant Office
sOME KEy FACTs ANd FIGuREs ABOuT ENICs • Electronics Manufacturing services (EMs) for Industrial Electronics (IE) customers • sales 2011: ~ 380 MEUR • One of the top 5 EMS companies serving Industrial customers; among top 20 EMs companies in the world • Over 3000 employees in 8 plants on two continents, Asia and Europe • Over 40 years of experience in industrial electronics • Management Buy-Out in 2004
Enics is headquartered in Zürich, switzerland and has a total of eight manufacturing plants in Finland, sweden, Estonia, switzerland, slovakia, and China, as well as a sourcing office in Hong Kong. The latest addition to the Enics plant network is its new site in suzhou, China. This site enables Enics to serve its customers in Eastern China more effectively.
sales development (MEuR) 450 400 350 300
327
250
279
200
(estimated)
2011
2012
317 271
216
150 100
339
410
378
129
50 0 2004
2005
Enics Company Review 2011-2012
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2007
2008
2009
2010
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Life Cycle Management – we care about it! Enics offers services and solutions along the entire life cycle of our customers’ 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 our highlights is Enics’ standard functional test platform. It has high test quality, with short development time, at a competitive cost. • Our fast prototyping shortens time-to-market and increases profitability. • Our guided new product introduction with accompanying processes and gate-reviews enables total costs to be optimized and significantly shortens time to market. • Within manufacturing we provide six levels of system assembly. This consists of printed circuit board assembly (PCBA) to box build, the assembly of subsystems, total systems (cabinets), and systems with variants, plus design to order. No matter what the volume or level of assembly, our customers’ products are delivered on time, to the right place, with the right quality. • With only the bill of material and Gerber data’s to the ready product with Enics’ new design for manufacturing analyses. • Our life extension solution consists of after sales services, component care, and product care, to ensure e.g. that our customers can fulfill longterm obligations to their end-customers. All 50 services we provide throughout the product life cycle have one thing in common: They add substantially to our customers’ value chain and guarantee high class products.
Manufacturing
Industrialization
Prototyping
Development Services
Enics Company Review 2011-2012
Product Care
Focus on Quality and Reliability We are aware that in our business environment, competiveness, reliability, and quality are critically important to success. We are more than willing to participate fully with our customers to have a positive impact on everyone’s Quality of:for Life. Therefore, we focus all our activities on fulfilling our customers’ expectations and helping them to succeed. This is achieved through world class manufacturing and related services . We use tools like lean manufacturing, six sigma, and the production parts approval program (PPAP) to ensure that the highest quality standards are met. We have in-depth knowledge about the way the services we provide interact and mutually influence each other along the product life cycle, and have established lean processes accordingly. As a result, our customers’ products are fast to market because we industrialize them from the beginning. A further benefit is continuous cost reduction thanks to established interaction, global sourcing and the use of our worldwide manufacturing facility network.
Spare Parts
Repair & Maintenance
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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.
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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 processes. 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 efficiency and productivity in our operations. We create flow and speed on our manufacturing shop floor: Enics considers Lean as the strong-arm for WCM. Lean is an ongoing process of change involving everyone in the organization. It improves Quality, Cost, Delivery, Safety, Morale (QCDSM).
Problem Solving and Six Sigma Enics uses Six Sigma to solve product and/or process challenges to reduce variation. Enics uses DMAIC (Define, Measure, Analysis, Improve, Control) to enhance process behavior, to execute improvement plans, and to reduce defects.
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Continuous Improvement Continuous improvement is the key enablerer to become a WCM company. Enics has set different measuring and improving tools in order to continuously guarantee the World Class performance.
Operational leadership requires ensuring that organizational processes are effectively carried out on a day-to-day basis, monitoring performance, and addressing constraints. As part of Word Class Manufacturing, continuous improvement never ends!
Enics Company Review 2011-2012
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Demand/Supply Chain Model Enics believes that the success of our customers is very much dependent on a reliable supply chain and competitive sourcing. As a trusted partner, our ambition is to continuously develop our first class supply chain in line with a clear QDC (Quality, Delivery, Cost) focus. Quality must always come first. Reliable deliveries are essential and costs must be competitive at all times. Enics’ demand/supply chain model (D/SCM) strategy is the foundation for strong and established D/SCM key elements (see table). Enics’ supplier selections are made in line with the practice of Total Cost of Ownership and based on the results of our supplier performance rating. We measure all aspects of quality of our suppliers to ensure that they live up to our requirements.
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Volume price agreement negotiations with Enics’ suppliers are conducted a minimum of three times every year. We continually strive to offer greater flexibility and to make the supply chain more efficient. We work with our suppliers to increase our supplier integration models. This means that we will have even more of our suppliers using logistical models such as consignment, KanBan, reduced leadtime programs, buffers, etc. Our supplier relations management concept is our competitive edge. We challenge ourselves to be the best possible customer of our suppliers, pushing the boundaries and 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-winsituation for all parties involved.
One cornerstone in our supplier relations management is the preferred supplier program. Enics consolidates purchasing volume as much as possible with our approximately 40 preferred suppliers. This is an opportunity for our suppliers to receive the benefits of greater purchasing volumes and reduces the risk in the supply chain. This program increases the attractiveness of our sourcing to suppliers. Of course, at the same time we need a wide range of regular suppliers to offer our customers competitive solutions to their unique needs. Our preferred supplier consolidation is increasing yearly, and we are now getting close to an optimal level of 70%.
Enics D/SCM Key Elements Supplier Integration
Engineering Services
• Efficient logistics that consist of a wide range of replenishment models • Dimensioning the whole chain to meet the end customer’s needs
• Re-design and re-selection of components • End-of-Life and Last Time Buy services
D/SCM Modeling
• Supplier audits • SPR (Supplier Performance Rating)
• Customized design of the supply chain • Secure the right level of flexibility
Cost development • Cost Competitive Country Sourcing • Strong market knowledge through excellent supplier relations
Supplier Relations Management (SRM) • Based on the principle that suppliers are as important as our customers • We pride ourselves on having the best relationships with our suppliers
Enics Company Review 2011-2012
SQM
Global Reach • Efficient and environmental logistics • Strong Cost Competitive Country Sourcing (CCc) supplier base
Customer Focus • Supply chain is an integral part of our account teams
Volume Price Agreements • Quarterly • Always face-to-face
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entering a new era of sustainabiLity
Kristi Opikova uNGC project leader in Enics responds:
What is the United Nations Global Compact (UNGC)? According to the united Nations, the Global Compact is a practical framework for the development, implementation, and disclosure of sustainability policies and practices, offering participants a wide spectrum of work streams, management tools and resources — all designed to help advance sustainable business models and markets. Why did Enics join UNGC? Enics signed up with the united Nations Global Compact to increase corporate awareness and responsibility for the society we live in. We are not a company taking only benefits from society. We also want to give something in return. Being part of the united Nations Global Compact we have the opportunity to commit ourselves to the 4 main universally accepted areas. We have implemented a code of conduct and want to take this one step further and align with the Global Compact’s 10 principles. Through uNGC we are strengthening our company culture and strategies. Looking into the future – new management possibilities by UNGC for the future? uNGC gives us the possibility to grow and become even more socially responsible. uNGC offers a wide spectrum of work streams, management tools and resources to implement our goals. By joining the uNGC Enics increases its transparency externally and internally as well as within the whole EMs marketplace. This helps Enics drive towards a more human-friendly and ethical business within the EMs industry. Achieving the ten principles of the uNGC is Enics’ long-term goal to contribute to making our planet a better place for future generations.
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Sustainability in Enics As Enics’ slogan Quality of:for Life and our values infer, sustainability is an issue that we hold as a topic of high importance. Sustainability at Enics translates into a proactive approach to economic, environmental and social responsibilities, and is embedded in the Enics management system. Sustainability means that Enics pays attention to requirements set by employees, customers, society and legislation. The Enics Code of Conduct, based on the United Nations Global Compact, is – together with the Enics Values – the guideline for ethical behavior at Enics. These values form the foundation for behavior and significantly influence decisions and actions in all relationships with business partners, personnel, society and nature. Every Enics employee, without exception, is expected to behave and act in accordance with our Code of Conduct. It is widely understood in Enics that for sustainability to work it requires long-term effort and commitment. Enics’ environmental analysis that was completed in 2008 set forth objectives for social responsibility. Enics will conduct business as a responsible corporate citizen by applying the Social Accountability SA8000 standard to all relevant operations, including the supply chain. An OHSAS 18001 occupational health and safety standard audit was conducted in Enics. Moreover, as a member of the United Nations Global Compact, Enics has committed to take even more ac-
tion against violations of human rights, labor standards, the environment and against corruption. Enics makes a reasonable effort to contract only with the suppliers or service providers that adhere to international human rights and environmental laws and regulations. After the environmental impact analysis conducted in 2008, Enics decided that its focus for environmental responsibility will be on waste reduction, recycling, offering product life-cycle extension services to customers, and locating production close to our customers and suppliers. These actions reduce our environmental footprint. Enics units operate according to an environmental management system and have ISO 14001 certification for the system. The certification requires the business units to continually improve their environmental performance and expand the environmental awareness of their employees. We are proud to have received several awards for our continuous work on the environment, such as the KONE Environmental Award in 2010 and Enics Eesti recycling awards in 2007 and 2009. Enics also regularly organizes Quality of:for Life events in Asia and Europe, which concentrate on topics and discussions for making the EMS field more user and human friendly. And there is always a special focus on sustainability.
Peter Back Director, Customer Relationship Management
Sustainability is part of our daily activities and continuous actions, and we go beyond industry and quality standards. In all our locations we recycle the waste generated in our operations, and have received recognition for this by national authorities. Enics is continuing its efforts to invest in equipment that consumes less energy which, alongside our continuous lean improvement activities, enables us to produce more, using less energy and less space.
Enics Company Review 2011-2012
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eniCs VaLues dirk Zimanky CEO and President, Enics AG Our Enics values are the basis of our daily business – internally for all our 3200 employees, but also externally for our partners – from customers to business partners to suppliers. Thanks to our values, they know how we work, they know what we value, and they can trust us as a solid pillar in the partnership. The interpretation of Enics values of course is not static, but is linked to the changes in our environment and our markets. Nevertheless, they remain its core. Would you believe in the Enics’ mission and vision, in Enics as your long term business partner, if the values changed now and then because of short-term circumstances or a new manager? No! Continuation in acting and living according to our values builds the trust I know is substantial for the success of our customers, and therefore, Enics. Only on the solid floor of common understanding can you establish open communication and transparent interaction – bridging cultural backgrounds. As a result, expectations can be positively exceeded. The gain is a successful partnership with high added-value. I can’t recite every single line of the value ”wording”, but I have them in my heart and in my mind. I face them with a deep pleasure every day, working with colleagues who share the same mindset. And they help me, help us, to make decisions I trust in. Because if I decide according to our values – customers’ respect, responsibility, success and innovation – the outcome will be beneficial.
CusTOMERs REsPONsIBIlITy REsPECT
suCCEss INNOVATION
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Mario Mojzis Manager Human Resources, Enics slovakia Giving someone respect, for me, means to value the person. Not only his thoughts and feelings, but also acknowledging her or him, listening and accepting individuality. When people respect one another there are fewer conflicts. Respect is important for practical reasons because we simply feel better when we are respected.
Marian schreier Manager development support, Enics switzerland For me, innovation means development, creativity, competitiveness and competitive power. It means also thinking about things in a different way – strategically and creatively: let your mind walk off the beaten path and abandon my own fixed views.
Emöke sogenbits Operations Manager, Enics Eesti
Jane liu CRM Manager Multisite Business unit, Beijing & suzhou Customer satisfaction is the common target for our daily output. sometimes ‘customer’ means pressure to make quick decisions and take fast action to respond, but this is much outweighed by the fact that customer satisfaction is the motivation for improvement, innovation and success as well as personal contentment.
Anna Carlstedt Manager demand supply Chain Management, Enics sweden Responsibility means, for me, that we completely own our situation. It influences my work in the way that I am always trying to improve our situation in order to be able to achieve and exceed the results we want.
I think there are only a few other industries than EMs where success depends so much on working together and having the same goals, ambitions and targets to be successful. Therefore, for me success means working shoulder to shoulder with our suppliers, employees and customers in order to form a successful value chain – and enjoying the possibility to come to work for a successful company every morning.
Enics Company Review 2011-2012
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Enics Management Team
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Petri Helin
Dirk Zimanky
Petri Suikkanen
Ari R채is채nen
Senior Vice President, Customer Relationship Management
President and CEO
Senior Vice President and CFO
Senior Vice President, Supply Chain and Operations
CONTACTs
Headquarters Enics AG Phone +41 4 4515 02 15 Fax +41 4 4515 0233 Thurgauerstrasse 40 CH-8050 Zürich switzerland Postal address: Enics AG P.O Box 5456 CH-8050 Zürich sWITZERlANd Vantaa Office E-mail marketing@enics.com Enics Finland Oy Jaakonkatu 2 FI-01620 Vantaa FINlANd Enics Sourcing Office Enics Hong Kong Ltd. Phone +852 2413 7211 Fax +385 2413 7311 suite 1102, Chinachem Tsuen Wan Plaza No 455-457 Castle Peak Rd. Tsuen Wan, N.T. HONG KONG
Multisite Business Unit 1: Enics Sweden AB Phone +46 (0) 2117 9300 Fax +46 (0) 2117 9500 Västerås site Kontraktsvägen1 sE-721 69 sWEdEN Enics Eesti AS Phone +372 736 1777 Fax +372 736 1783 E-mail info.elva@enics.com Valga mnt 7a 61504 Elva EsTONIA Enics Finland Oy P.O Box 90 Gunnarlankatu 5 FI-08101 lOHJA FINlANd
Multisite Business Unit 2: Enics Electronics (Beijing) Ltd. Phone +86 10 6789 2929 Fax +86 10 6789 2327 A6 Xin Cheng Industrial Park Ke Chuang No.2 street BdA, Beijing 100023, PRC CHINA Enics Electronics (Suzhou) Ltd. Phone +86 512 5290 0668 Fax +86 512 5290 6830 #7 building, Xin Hang Industrial square, Huang pu jiang Rd, dong Nan Economic development Zone, Changshu 21550 CHINA
Enics Slovakia s.r.o. Phone +421 4 2324 7010 Fax +421 4 2324 7037 Trencianska 19 01851 Nova dubnica slOVAKIA Enics Sweden AB Phone +46 (0) 4024 3000 Fax +46 (0) 4024 3001 Malmö Business unit skeppsbyggaregatan 9 / P.O Box 417 sE-201 24 Malmö sWEdEN Enics Schweiz AG Phone +41 (0) 5 6299 4433 Fax +41 (0) 5 6299 2008 Austrasse /P.O Box 5300 Turgi sWITZERlANd
www.enics.com
www.enics.com