“Small is beautiful”:
Manufacturing Marketing Dilemma at Signode Tracko Components Ltd: PCB Division
Amit Thomas was exuberant. Ever since he joined as Chief Marketing Officer, STC’s PCB division is showing exponential growth. From a sales of just over Rs24 million in 2000, during his first year of service itself, he could raise it to over Rs 40 million. Now browsing through the figures, he found that in the last nine months (Jan-Sep)the sales have reached over Rs 68 million. He knew his strategy worked…Accepting both small and big orders had made this dramatic growth possible. He is looking forward to the next review meeting. He couldn’t wait to laugh at those ...view middle of the document...
By positioning as a small-customized manufacturer, STCL thought it could carve a niche in the market
Printed Circuit Boards consisted of a thin sheet of insulating material with narrow metal strips- generally copper called conductors- bonded to its surface. The insulating sheet acted as a structural member and supported electronic components connected by the conducting strips. In the customer’s plant assemblers positioned electronic components (like transistors, capacitors, LED etc..) in the drilled holes in the board, soldered them into place, and installed the board in the final electronic product. The manufacturing process for making the PCBs involves various stages. Exhibit 2 gives the process followed in the STCLs PCB division. The PCB manufacture starts with the customer order (customer gives the design also) and is generally carried out on a batch mode. Once a customer order is finalized a batch number is printed on the first board on the batch, and the batch is delivered within three weeks for orders less than 1000 boards and five weeks for larger orders. As the batches (designs) vary drastically from one another almost all the machines require setup before starting the processing of the batch. Exhibit 2 gives the set up for each of the processes and exhibit 3 gives the standard process flow during September 2002.
Review meeting on October 10,2002
The review meeting on October 10,2002 was attended by Vinod Iype, the President of the division, Satish Teheran, the CFO, Amit Thomas CMO, J Venketarantham Swamy the COO and Gregory Von’Reich from Signode Components Inc Germany. Iype was the President of the company ever since its inception 1999 and Teheran and Swamy also joined him from STCL as Chief Finance Officer and Chief Operating Officer looking after the entire manufacturing operation. Thomas joined as Chief Marketing Officer of the division at the end of 2000. He had over 20 years of experience in Industrial Chemicals marketing and has a strong reputation in B2B marketing circles. Mr. Von’ Reich is on his annual tour of the various divisions of the company and choose to attend the review meeting as an observer. Amit Thomas was extremely happy because he was sure that he can easily impress the representative from the parent company, through his achievements.
Meeting Started with Iype on the Chair.
Iype: “Good Morning friends” he said addressing the august audience, “ I am very happy that despite the economic slow down, we have done extremely well during the last nine months. Thanks to Amit and his team we have a lot of orders and if this is the way we proceed I am sure we can easily achieve the Rs 200 million target very soon. Right Amit?”
Thomas : “Thanks Vinod” he said with a beaming face, “ It was a tough job to realize all these sales. We all worked very well. In fact, our strategy of promising the rework worked very well. And after Swamy had implemented our suggestion of a chaser for small...