Strategic Partnerships - TTems & FujiFilm Electronic Imaging Limited

Introduction

TT electronics manufacturing services Ltd (TTems) one of the largest, UK-owned, contract electronic manufacturers is located in Rogerstone ( Wales ). The company employs circa 500 people and services key market sectors including telecommunications, networking, defence, leisure, consumer RF products, automotive, utilities and industrial electronics.

Fujifilm Electronic Imaging Limited (FFEI) is a wholly owned subsidiary of Fuji Photo Film Co. Ltd established in 1997. Fujifilm's only manufacturer of electronic pre-press equipment for Fujifilm outside Japan is now an industry leader recognised for developing unique technologies and manufacturing systems on a global scale.

TTems Rogerstone has enjoyed a successful partnership with FFEI, since 1999. TTems outlines the factors which have influenced and ultimately strengthened the relationship in a competitive and cost-driven marketplace.

History

TTems became FFEI's sole supplier of printed circuit board assemblies (PCBAs) when the company transferred the business from its existing supplier in 1999. At that time, quality, good service, and cost down advantages, were the driving factors behind FFEI's transition between suppliers.

In 2002, FFEI embarked upon a major cost down exercise across the full range of its commodities and reviewed a number of procurement opportunities in Asia and Eastern Europe. FFEI quickly developed successful relationships for procuring sheet metal and cable assemblies in China. With PCBAs accounting for a substantial percentage of FFEI's overall spend, this was an area in which cost down benefits were essential. As a result, an alternative source for PCBA production was identified and this work was outsourced to the Far East, whilst TTems retained production of FFEI's more specialised PCBAs.

Two years later, FFEI's Far Eastern supplier gave notice that its business strategy had changed and could no longer supply PCBAs to FFEI. An alternative supplier in China was then found. Again, FFEI's major consideration at that time was maintaining the lower procurement costs enjoyed in China, but it quickly became apparent that the new company had difficulties in procuring parts, and supply issues arose, which threatened to impact on FFEI's ability to manufacture and output product.

By November 2004, FFEI realised that the potential impact to its production levels was unacceptable and so it became imperative to find a stable source of PCBA supply with no perceived risks to FFEI's business. Based on the company's experiences throughout 2004, together with the fact that FFEI had maintained a consistently good relationship with TTems - who had continued to supply product throughout this period, the obvious solution was to return to TTems in the UK.

FFEI had returned production of all PCBAs to TTems by the end of 2004, making them the company's sole source of supply again with a projected revenue of £3 Million for 2006. TTems' NPI team worked diligently to implement the 38 new lines at its Rogerstone facility over a two month transitional period. During this time, the companies worked closely to ensure that supply of product to FFEI was smooth, with no adverse affect to FFEI's manufacture and production requirements.

FFEI Product Fulfilment

The 38 new manufacturing lines introduced by TTems, are spread across five ranges of FFEI equipment, two of which are FFEI's cutting edge products: the Luxel-V machine series and V6 machine.

The Luxel-V series is a range of B1, 8 page platesetters, designed and manufactured using leading edge design and engineering techniques including violet laser diode technology, which, when incorporated with FFEI's multi laser system offers the highest standards in productivity and image quality. Its application is the imaging of plates used on printing presses and presents a wide range of plate imaging sizes, with manual, semi automatic and fully automatic loading versions, with either single or dual laser, dependent on throughput and productivity requirements of the end customer.

V6 is a B2, 4 page, CTP (Computer-To-Plate) machine, introduced to the FFEI product range during 2004. It utilises the same violet laser technology as the Luxel-V series but has a composite internal drum, as opposed to the aluminium internal drum in the Luxel-V series machines, but again is offered in manual, semi automatic and automatic loading versions.

TTems services

TTems works closely with FFEI and provides design for manufacture (DFM) expertise, full material procurement with obsolescence management, SMT with hand assembly, final box-build, full in-circuit and functional tests. Then the final product shipped to FFEI requires no further processing saving FFEI time and resource, and minimising lead times.

Extensive work is also being carried out on transfer product lines at Rogerstone to manage conversion to lead-free (RoHS) in line with legislative requirements, and the first lead free FFEI board samples are already undergoing full functional test.

TTems encourages its customers to look upon the company's capabilities as an extension of their own facilities, helping forge the company's successful working partnerships. A dedicated Programme Manager is allocated to each customer, performing an essential role in managing day-to-day operational aspects and business developments of the relationship, particularly during new product development phases where frequent feedback are vital.

Sally Thomas, TTems' dedicated Programme Manager on the FFEI account, commented that good communication enabled the two companies to maintain a good working relationship and this was a contributing factor to FFEI's return to TTems after encountering difficulties in supply from the Far East.

Future Plans

FFEI's plan for the next three years is to grow its CTP market share to 20% with the Luxel V series and V6 products through enhancement and expansion of the product range, and TTems hopes that the relationship between the two companies will continue to flourish during this period of anticipated growth. FFEI is also developing products for the medical industry based on its established scanner technology, which TTems hopes to become involved with.

TTems prides itself on providing its leading edge technology customers, with quality products and a tailor-made service with the ability to manage all stages between design concept to end of product life. Although UK manufacturing service companies cannot compete with the reduced labour costs offered by a Far East manufacture, the benefits TTems does offer are flexibility and fast turn-around NPI/Engineering, quick response to schedule changes, unrivalled commitment to quality and supply chain management, which reduces our customers lead-time, working capital and change process.

Andrew Cox, Director and General Manager at TTems Rogerstone, comments:

"TTems has made a long-term commitment to growing its presence and credibility within a competitive marketplace, and our ongoing relationship with companies such as Fujifilm Electronic Imaging is testament to the beneficial resource we can provide to technology leaders."

Nigel Birch, Operations Director of Fujifilm Electronic Imaging Limited, comments:

"FFEI is an industry leader in the design, manufacture and supply of electronic pre-press equipment and software, dedicated to providing quality imaging systems using leading edge technologies.

"We have a visionary strategy to push the boundaries of technology forward - and the key to delivery of this is through provision of high quality products to our customers in a competitive and fast growing market place. The strength of our products, however, will always be underpinned by the quality of our suppliers, and so FFEI will continue to seek and maintain its relationships with suppliers of the highest integrity."

Ends

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