In view of the tariff increase of African products and the rise of sea freight, the tariff of products has increased from 0 to 25%, and the unit price of products reaching to clients needed to be increased by 30%. In order to reduce the transportation cost, reduce the price of products, and provide customers with low price and high quality household appliances, our company decided to set up factories in Africa, so we made plans with clients to build factories in Africa.
At the beginning of the project, only local assembly lines were established, some assembly lines and testing equipment were transported from China to Africa, and skills training was conducted for line managers and line production personnel. After training again and again, the daily production capacity of the assembly line has increased from 450 units to 1200 units, and the first pass rate of online inspection has increased from 70.8% to 98.3%, which was close to 80% of the production capacity of China’s production line.
In order to further save costs and enable African people to use high-quality and low-cost household appliances, we planned to put the plastic part, which accounts for the largest proportion of transportation costs into Africa. After we shipped the equipment to Africa, we found that the local power stability and production technology are not as good as China. For this reason, we have sought various assistance, and with the strong support of the local government, we have solved the problem of power supply. In terms of technology upgrading, we sent Chinese engineers to Africa to assist in production. With the assistance of Chinese engineers, our injection molding machine finally started and completed the production of the first batch of orders.
However, the problem was that due to the frequent changes of our injection parts, the local technicians in Africa could not set the appropriate parameters well when changing the mold. For this reason, our Chinese engineers guide the local technical personnel in Africa by means of telephone and video conferences, so that their operation level has been greatly improved. At present, the injection molding workshop of the factory is running at full load every day, with a full rate of 93% and a pass rate of 96.4%.
At present, our fan parts are all produced by our Chinese factories, and injection molding and assembly are completed in Africa, which reduces the unit price of the products by 11% compared with the direct imported products, and the annual output can reach to 800000 sets.
We will continue to optimize our African factories, and strive to improve production capacity and quality, so that our African users can continue to use our high-quality products.
