Pro QC and Quality 4.0: Providing Added Value Solutions

Written by: Yingchao Siu, Business Development Manager

I recently had the privilege of joining the annual ASQ World Conference on Quality and Improvement held in Seattle, Washington. It is the world’s largest quality conference bringing together a wealth of quality professionals from all over the world to exchange ideas and interact with other leaders within a variety of industries.

The theme this year was “The Innovation of You.” Sessions focused on topics ranging from Quality Fundamentals, Risk and Change, Building and Sustaining a Culture of Quality, to Future of Quality. I had the opportunity to experience great knowledge first hand from quality experts and also to meet and network with other quality professionals from across the globe.

Initially, my primary goal was to improve my own knowledge base. I wanted to increase my proficiency in communicating on a technical level with potential clients. In the end, I came away with a lot more. I realized that for quality professionals, quality begins at home. Continuous education is vital for all staff to ensure each and every one of us is able to play our role in strengthening and maintaining a culture of quality within the company. We don’t just sell quality services, Pro QC aims to exude quality and show clients that we practice what we preach.

Secondly, and perhaps most striking, was the feeling that quality is a thriving organism, changing, growing and developing. The significance of this for us as a company is in understanding the potential we have as we navigate the blue oceans opening up in the sea of disruptive technologies and disrupted markets. In this blog post “Reflecting on the Advantages of Technology on QC.” we reflected on just how much our operational environment has changed over the years.

Pro QC is not just a company which endeavours to provide inspection services or quality audits. Pro QC strives to stand out as a provider of solutions drawing on our extensive experience in quality, going above and beyond the traditional roles of quality engineers to fulfil the role of problem solver and adviser to our clients.

Overall, the ASQ World Conference of Quality and Improvement was educational and professionally inspiring. In addition to my participation as an attendee of the conference, our U.S. team was exhibiting. This year marks the 7th consecutive year Pro QC has exhibited at the event. Involvement in events such as this one is both indicative of our professionalism and the direction of the company within the future of quality.

China Sourcing Alternatives: Thailand

Written by: Daniel Ben-Ezra, Pro QC Country Manager 

Many companies are looking for alternatives to China these days with regards to their supply chain. Most often the driver is costs. We’re seeing an increasing number of clients contemplating a shift, or already being in the process of implementing one towards other Asian nations with regards to their manufacturing base. This post is the first of a series discussing alternative options to China, and starts with Thailand.

Despite not being a low-cost production base, Thailand is seen as a viable option by many companies to set up a manufacturing unit or to source from. This stems from its reliable business environment, well-developed logistics infrastructure, vast natural resources and existing functional industrial base. The government of Thailand is also taking active steps towards improving the country’s position by pushing investments in technical equipment, allocation of SEZs along its borders, and developing cluster structures.

As share of GDP, major product categories produced in Thailand include food items, metal and construction materials, rubber, plastics, electrical appliances, cars and related components, jewelry and handicrafts. Coupled with its natural resources and easy connectivity with other ASEAN countries (notably Cambodia, Laos, Myanmar and Vietnam), Thailand makes a strong case for itself as alternative to China for specific product categories.

A downside to manufacturing in Thailand is that its labour pool is relatively expensive and unemployment stands at low rates. In order to tackle this, the Thai government has come up with the strategic decision of allocating 10 SEZs (Special Economic Zones) in the years coming. Planned along the borders, companies locating themselves within these zones would be able to enjoy low-cost, easily-commuting workers from areas such as Tak and Kanchanaburi (bordering Myanmar); Sa Kaeo and Trat (Cambodia), Mukadahan, Chiang Rai, Nong Khai and Nakhon Phanom (Laos); and Songkhla and Narathiwat (Malaysa). Other incentives to attract FDI include infrastructure creation, fast processing of licensing and permission applications and creating one-stop service centres with customs checkpoints. Additional incentives are planned for companies active in specific sectors, which include tax reductions, low or zero import duties for parts & materials exported afterwards, low interest loans and more.

Similar to China’s Made in 2025 initiative, Thailand 4.0 is a key element in the government’s mid to long term strategic development plan. It aims to create the foundation for production of high value added products and services, and focuses extensively on technology and innovation. Despite hefty competition from China specifically in that regard, manufacturers are moving into Thailand also for risk diversification and access to the ASEAN market.

Pro QC’s team of quality engineers are based in Bangkok and surrounding areas, from where we are able to provide nationwide coverage. For those companies looking to explore possibilities in Thailand with regards to their supply chain, we offer a variety of solutions. The careful screening of vendors is naturally a highly critical process that will influence subsequent developments. Popular services in this regard include our Supplier Verification and Quality Process Audits. Sample reports can be downloaded here.

What’s a Living Wage?

A question that comes up often when sourcing abroad is determining what the living wage is and how well suppliers stack up.

Article 23 of the United Nations Universal Declaration of Human Rights states that “everyone who works has the right to just and favorable remuneration ensuring for himself and for his family an existence worthy of human dignity.” And, it’s even noted that Plato and Aristotle discussed the concept as they both argued for “an income that considers needs, particularly those that ensure the communal good.”

How are Living Wages calculated?

“A living wage is the minimum income necessary for a worker to meet their basic needs. This is not the same as subsistence which refers to a biological minimum. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living. Due to the flexible nature of the term ‘needs’, there is not one universally accepted measure of what a living wage is and as such it varies by location and household type.”

Social Accountability International identifies the Living Wage calculation as follows:

To verify wages for suppliers, auditors check records over a period of time and conduct employee interviews. Applicable standards include SA8000, ISO 26000, various or organizational-specific such as WalMart or the Electronics Industry Citizenship Coalition.

Social Accountability International posts Living Wage Reports for various areas within China, Africa, Vietnam, etc.  View the SAI page here. 

Within the United States, MIT provides Living Wage estimates based on states here. 

To learn more about supplier social audits and view example example reports, visit Pro QC’s website. 

Connecting Stakeholder Theory and Social Responsibility

An article we recently contributed to ASQ’s Quality Management Forum (Winter 2017) connects Stakeholder Theory and Social Responsibility (SR).

“Edward Freeman described Stakeholder Theory as a proactive approach to corporate social responsibility (CSR). Looking outward to groups or individuals impacted by an organization’s activities, Stakeholder Theory encourages organizations to identify key entities affected and consider their interests and rights as they relate to that organization’s actions.  Considering the most common key stakeholders, the case for SR within an organization is made by demonstrating tangible benefits and value within each.”

The article discusses each of the primary five stakeholders identified above and includes some interesting supporting data.  Read the full article here. 

 

World Bank Projects Growth in India

Guest Blogger: Daniel Ben-Ezra, Country Manager (India) 

The World Bank has recently released encouraging figures with regards to India’s projected growth rate for the next two years, expecting 7.3% and 7.5% for 2018 and 2019 respectively. They have further stated the country has ‘enormous growth potential’ compared to the economies of other emerging markets. To put matters in perspective, the GDP of the other BRICS (Brazil, Russia, China and South Africa) countries are projected to grow as follows in 2018:

Brazil: 3.0%

Russia: 1.7%

China: 6.4%

South Africa: 1.1%

Source: reuters.com

India’s projected growth is all the more impressive considering recent disruptive government policies with regards to the implementation of GST in July 2017, as well as demonitisation earlier in 2016. It is noticeable that Prime Minister Narendra Modi’s “Make in India” campaign has resulted in more positive sentiment towards the country with regards to local manufacturing. Important to note that a large driving force behind production in India also involves circumvention of the country’s relatively high import tariffs – local manufacturing/assembly allows companies to tap India’s vast and increasing consumer market in a more competitive manner.

What’s more, India’s rise on the world stage is notable, as the country is playing an increasingly important role with regards to stability and international order. Illustrative of this is for example the India-Israel Business Innovation Forum, taking place next week. Prime Minister of Israel Benjamin Netanyahu is joined by over 130 delegates from 90 different Israeli companies to discuss business & trade opportunities in Delhi & Mumbai with local government and business representatives.

The above is in line with our own experience on the ground, as Pro QC International has seen an increase of business in India of over 30% when comparing 2017 vs. 2016. We are proud to have supported many new clients with their supply chains South Asia in 2017 and expect this trend to continue for 2018.

For more information on our services across the region, kindly surf to www.proqc.in or contact directly on daniel_ben-ezra@proqc.com.