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December 2006

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Subject:
From:
Brian Ellis <[log in to unmask]>
Reply To:
TechNet E-Mail Forum <[log in to unmask]>, Brian Ellis <[log in to unmask]>
Date:
Fri, 15 Dec 2006 10:29:25 +0200
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Too much inventory? Contracting assemblers with financial problems
because of "too much inventory"? Doesn't ring true to me as a root
cause. Inventory is brought in to handle each contract, as I see it,
because each curstomer's PCBs, component list, even solder paste is ad hoc.

For me (and the Oxford English Dictionary agrees), inventory does not
include capital equipment. Is their English so bad that they mean they
are over-equipped to handle a diminishing market? If so, then this is
not necessarily a cause for financial woes, for a multi-national. They
could easily and profitably divert some production from their high
labour-cost plants to Mexico if they simply had spare capacity - or they
could sell some excess plant, rather than have it standing idle.

My reading between the lines offers two basic potential causes: they
have severe quality problems, losing their customer base and/or
downright bad management (the first is often a result of the second).

Brian

Werner Engelmaier wrote:
> Hi 'Netters,
> anybody know what theproblems are that Celestics is having in their plant in
> Monterrey, Mexico?
>
>
>
> Werner
>
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