Issue link: https://iconnect007.uberflip.com/i/1088168
MARCH 2019 I SMT007 MAGAZINE 15 will be done automatically. We will have a cen- tral control room where we have access to all of the information, and we will have full trace- ability in real time for every single board not only for us but also for the customer. Also, we have a commitment to double the size in revenue in five years. In South China, if you have a company that strategically fits with the region's growth plan, you get support from local government. If you're not strategic, for- get Guangdong because the labor cost will be too high, fewer people are available to employ, and there are tough environmental regulations and social requirements. There's no way you can make clothes or garments here anymore. Barry: Is the city looking at requiring more au- tomation in factories as part of their strategy? Mauro: When I presented the expansion plan to the authorities, they were very happy, but had one requirement—they didn't want more op- erators. Engineers were okay, but no more op- erators. Thus, automation is the only answer to grow. They have a vision. One important thing is if you are not a strategic company, you cannot stay here. We can stay here because we are a strategic company and are bringing tech- nology that is strategic for China. Barry: Creating a smart factory is not a simple task. There isn't an off-the-shelf plug-and-play software package. Everything is custom to your situation, and the level of attention to every detail is demanding. How is designing the new factory being handled? Do you have a team of engineers working on this project? Mauro: For this new expansion, we had to de- velop a new department called the industrial engineering department. It's going to be a stra- tegic department that requires strong compe- tence in technical, equipment, and software matters. We have to look at the overall pro- cess from a 4.0 viewpoint, so people clearly understand how it's supposed to work with efficiency. They need to understand the inte- gration between the process and human being, optimizing the working procedure to make the job easier with a focus on continuous im- provement. It's important to eliminate proce- dures and operations that do not give added value to products. This requires strong atten- tion to detail, which is big change for a non-4.0 factory. Barry: But it's what the market demands. Mauro: Yes. Without the change, we would be less competitive in two or three years. It's something that's a must and not negotiable. Our final target plan is to reduce manpower by approximately 40% and the factory lead time by 50%. Barry: When do you expect this to be complet- ed? Mauro: To be practical, two to two and half years. Barry: What sort of revenue gains do you expect to get out of all of this investment? Mauro: Revenue-wise, it's designed to be more than twice. Barry: What are your sales now? Mauro: This year, this plant is around $70 million. Barry: So you'll be $140ish?