manufacturing center overview - iis windows...
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Private and Confidential
ZENG Ying
Vice President, Manufacturing
2007 Analyst & Investor Day
Manufacturing Center Overview
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Private and ConfidentialDisclaimer
This material contains forward-looking statements with respect to the company's outlook regarding drivers, developments, and trends affecting its worldwide markets, opening of international offices, new product development and commercial launch dates, projected revenues, net income margins, earnings per share, revenue growth targets, net income growth targets, salesforce and distributor targets, projections of the size of China's healthcare market, estimated government expenditures, research and development expenditure targets, the company's manufacturing development plan, and the anticipated results of its product development activities. These statements are based on information available at the time they are made and are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated by these forward-looking statements as a result of a number of factors, some of which may be beyond the company's control. Factors that affect the Company's business operations and product development, as well as a further list and description of risks and uncertainties associated with Mindray's business, are discussed in its reports filed with the Securities and Exchange Commission, including its most recent annual report on Form 20-F. Mindray disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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Private and ConfidentialContent
Manufacturing Centre Overview
Work Flow
Quality Control
Development Planning
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Private and ConfidentialManufacturing Centre
•Area:250,000 square meters
• Workforce:1,226 employees
• Location: Xili Shenzhen7km from HQ
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Private and ConfidentialManufacturing Centre
R&D Manufacturing Marketing
Supply Chain
Administration/Finance/Human Resources
System R&D
ProductsR&D
Testverification
Trial production
Massproduction
Marketing
ServiceDesign
transformation
Customer
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Private and Confidential
Assembly, Production Line and Finished Product
Patient Monitoring Devices
Anesthesia Machine
Hematology Analyzers
Bio-chemistry Analyzers
Ultrasound Imaging Systems
Digital Radiographic
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Consumable Medical Items and Accessory Production Line
Ultrasound Probes
Blood Pressure Cuff
Hematology Reagent
Biochemistry Reagent
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Private and ConfidentialBasic Machining
Mechanical Machining
Shee Metal Machining
PCBA Production Line
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1016Technician/operatorTechnical staff1,226Total
148EngineerProfessional 62Supervisor & aboveManagement
Workforce
Management
8%
48%18%
26%
Master
Bachelor
Junior college
Tech/Highschool
Technical
11%
88%
1%0%
Professional
3%
70%
21%
6%
Educational Level
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Private and ConfidentialFour product lines
Hematology Analyzers
Bio-chemistry Analyzers Ultrasound Imaging Systems
Patient Monitoring Devices
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Private and ConfidentialSupply & Operation
Supply and Demand Coordinating Meeting– Applicable Dispatch Planning
Establish Main Production Plan – Procurement Plan and Order Forecast
Setup Weekly Production Plan – Material Procurement Plan
Setup Daily Production Plan – Production Process
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Private and Confidential
Management Level• Procurement Channel• Supplier’s Assessment• Negotiation (Inc Price and Quotation)• Procurement Budget• Reducing Procurement Cost• Procurement Strategy
Operation Level•Follow-up•Bookkeeping•Payment Process•Material Requisition Process•Faulty Product Processing•Order processing
Strategy Level•Procurement Analysis•Long-term Plan •Assessing Supply Capacity•Strategy Planning•Business Assessment
Purchasing
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Private and ConfidentialProduction Process
In-Process Quality Control (IPQC)
IQC AccessoryAssembly
Debugging Final Test Outward Qualification
Product AssemblySQA Burn-in Test
Normal Temperature
Test
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Private and Confidential2008 Manufacturing Objectives
Open Box Rate:100%
Percentage of Punctual Delivery:99%
Percentage of Cost Reduction:10%
Inventory turnover Ratio:Up 10%
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Private and ConfidentialInventory Control and Delivery Management
Improving Planning Pattern:Multi-scenario Pattern
Improving Production Process:Deploy Flexible Production Process
Improving Storage :JIT and VMI
Improving Information System
Continuous Improved Production Process
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Private and ConfidentialAchieving Cost Reduction
Tenders and Biddings
Supply Chain Management,Large Scale Procurement
Directly Negotiate with Original Supplier
In-house Production
Cost Analysis
Tactical Procurement
Adjust procurement plan according to foreign exchange rate
Supplier Assistance
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SQA Software Quality Assurance
IQC Incoming Quality Control
IPQC In-progress Quality Control
QC Quality Control
FQC Final Quality Control
OQC Outgoing Quality Control(100%)
Process assurance
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APQP (Advanced Product Quality Planning)
PPAP (Production Part Approval Procedure)
SPC, CPK ( Statistic Process Control for solder paste thickness, oven temperature)
FMEA (Failure Mode Effect Analysis for design and process)
MSA (Measurement System Analysis)
ESD and 5S Management and Control
CAPA
QCC (Quality Control Circle)
POKE YOKE
Process control
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Private and ConfidentialManufacturing Development Plan
Facility Location Square Meters Products Facility Role and Configuration
21,000 Operational in 2H 2008,Focused on Producing Reagents
Operational in 2008(Product assembly, Mechanical Machining, PCBA and Medical Accessories)Focus on Product Assembly and Medical Accessories after 2009
Operational in 2009,Focused on Producing Fundamental Parts for Products
Operational in 2010
75,000
E 200,000
E 240,000
Hong Hua Ling
Reagent(Hematology, Bio-chemistryRadioactive Immure)
Bai Wang Xing
Primary Products(Patient Monitoring,Hematology Analyzer,etc) and Medicalconsumables and KeyAccessories
Long Gang
Mechanical Machining and Plate Metal Machining, Plastic module and PCBA
NanjingOperation Lighting and Table, Medical Imaging
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Anticipated Production Capacity of BaiWangProduction Centre
Production Line 2008 Average Monthly Capacity (Units)
Maximum Monthly Capacity (Units)
Patient Monitoring 8,500 35,000Anesthesia 100 700Bio-Chemistry 400 2,000Hematology 1,600 8,000
Ultrasound 3,000 15,000