ARKTECH Corporation provides products in cooperation with its factory in the Philippines.
The number of manufacturers who are shifting domestic production to overseas production and international procurement is increasing every year, but some say that the only way to procure quality products is through domestic procurement.
The differences between overseas procurement and domestic procurement are as follows.
Form of transactionTransaction forms that are convenient for domestic companies and large companies (ordering companies) are not acceptable.
The Concept of QualityJapanese way of "seeking all QCD" is difficult. It is natural that high quality and short delivery time are expensive.
Samples and prototypesPrototypes" commissioned by many small and medium-sized companies in Asia do not guarantee mass production.
Some foreign companies consider prototypes as "bait" to win large orders.
Exchange Rate FluctuationsThe most important mission of overseas procurement staff is to "procure goods at a lower price than in Japan", but they have to pay attention to the fluctuation of foreign exchange rates
Awareness of affiliationAwareness of subcontractors is low, and they are perceived as equals or as suppliers (partners).
How to estimateEstimates are "Just on the spot."If you're not busy, it's cheaper.
If you are busy, it's more expensive.Changes in specifications and delivery dates will naturally increase costs.
Longer delivery times for overseas procurementCompared to domestic procurement, export and customs clearance procedures after production are more complicated and time-consuming.
In addition, the people in charge at small and medium-sized overseas companies do not have a sense of "strict adherence to deadlines.
Business practicesAs in the case of domestic procurement, payment by bill after delivery and acceptance inspection is not acceptable.
Full payment or half payment at the time of contract and the remaining amount at the time of delivery is the norm.
ARKTECH has been making various efforts to bring overseas procurement closer to domestic procurement, and has a track record of delivering the "benefits of overseas procurement" to many customers.
Materials and parts procured through overseas orders are delivered with a quality guarantee.
The following are some of the problems with overseas procurement.
Implicit consent cannot be expectedNeed a specification document with tacit knowledge that everyone can understand.
It is difficult to create specifications in English by translation alone.
Problems in mass productionNo problem in the prototype, but defective in the mass production.
As for defective products, they won't respond.
CommunicationDifficulty in communication due to differences in history, national character, and business practices.
Exchange rate fluctuationsExchange rate fluctuationsSelection of settlement currency, transaction amount fluctuates with exchange rate.
In addition, there are many other issues that are different from domestic transactions, such as selection of transaction currency, exchange sharing, and legal regulations.
In addition, the quality requirements (standards) for Japanese products are stricter than UL standards in the U.S., so overseas procurement requires thorough research from the selection of suppliers to the contract.
Manufacturers who are thinking of shifting production overseas have such problems.
ARKTECH and its wholly owned subsidiary, ARKTECH PHILIPPINES, will work together to realize risk-free overseas transactions and completely solve your problems.
ARKTECH Japan handles all the work on your behalf.
We can provide you with the ideal international materials procurement, which you had given up on as impossible.
Drawings and SpecificationsFirst, please provide us with product drawings (or CAD data) and specification data (or technical standards and inspection standards).
The person in charge in Japan will discuss the contents of the drawings and product specifications with you.
In the unlikely event that there is a flaw in the drawing, we will not proceed with the production.
We will first contact the person in charge in Japan for final confirmation. Any corrections made here will be made at our overseas factory, so please rest assured that we can handle any corrections to the data (drawing) once it leaves Japan.
Digital CenterAt the "Digital Center" in the Philippines, excellent local staff with engineering college degrees are engaged in 3D CAD design.
They prepare specifications, 3D design of prototype products, drawings for inspection, NC machining data, etc. through detailed discussions with engineers at the head office via video conference system.
3D Data CreationThe 2D drawing data is converted to 3D data at the Philippine factory (Digital Center), and the drawing is checked for any necessary corrections.
Normally, CAM data (NC machining program) is created from paper drawings or 2D CAD data provided by the customer, and then sent to the subsequent machining process.
However, at our company, we create 3D CAD data to prevent errors in joints during deployment, perform bending simulations, create machining information for each machining process, and create 3D images for inspection images.
Quality and environmental supportOverseas RoHS and environmental compliance has advanced to this level! Since most of our customers are major Japanese companies, our Philippine factory is fully compliant with RoHS and environmental regulations, and no non-compliant products are mixed in.
In 2006, the Philippine factory received ISO9001:2000 and ISO14001:2004 certification from TÜV of Germany.
Sheet materialsMetal sheet materials used in the Philippines are imported from all over the world, including Korea, Europe, China, and Japan.
The metal materials we use are 100.0% imported from Japanese manufacturers, and most thin metals such as SPCC, SECC, SUS304, SUS430, AL, etc. are available.
Most thin metals are available, such as SPCC, SECC, SUS304, SUS430, AL, etc. Ultra-thin sheets (0.3 mm or less) and spring materials can be ordered from Japan, so please consult with us.
PartsScrews, hinges, studs and other parts are mainly from Japanese manufacturers. We also handle many other products from the United States and Europe.
Superior Overseas MaterialsSuperior Overseas Materials Until now, we have purchased and used metal materials from Japanese manufacturers.
However, in order to respond to our customers' requests for further cost reduction, we have been investigating materials from overseas metal manufacturers.
We are now able to procure materials such as stainless steel square pipes that are comparable to Japanese products.
Please consider us for your needs
Painting and PlatingThe majority of our customers are very large Japanese companies. As a result, we receive many requests for paint part numbers and specifications from Japanese paint manufacturers.
We are able to meet these strict coating and plating quality requirements.We also excel in processes that require many steps, such as melamine baking, powder, electrodeposition, silk printing, puttying and masking.
RoHS (Rose) compliantThe Philippines has a well-developed management system for chemical substances contained in products, and is more advanced than Japan in terms of the RoHS Directive and green procurement.
Press machines and diesPresses and diesPress work is available up to 150t (AIDA). We also manufacture, repair and adjust dies in-house.
BendingWe have six Amada-made benders in operation. As with turret punches, the same dies can be used as at the main plant in Japan.
WeldingWe have a full range of welding equipment for spot welding, tig welding, semi-automatic welding, and stud welding.
FinishingDeburring and finishing are done by deburring machine, buffing machine, various sanders and grinders.
Cleaning, anti-corrosion treatment, anti-corrosion packaging and anti-static packaging can be specified.
MachiningTurning, milling, machining
Surface treatmentCoating (melamine, powder, electrodeposition) Silk printing Plating (zinc, copper, nickel, etc.)
Turret PunchIn our overseas factory, five turret punch machines are in operation 24 hours a day.
These machines are the same as those in our main factory in Japan, so we can guarantee the same quality as in Japan. This model is a high-precision punch press made by Anritsu, so the reliability of processing accuracy is outstanding, and it is a very rare machine overseas.
Fiber laserSPCC, SUS, copper, and brass can be processed with high precision and speed.
Tapping and caulkingNC tappers, automatic tappers, and caulking machines are available for different applications.
InspectionIn the QC section, all products are inspected by skilled inspectors.
In order to build an in-process assurance system similar to that of the main plant in Japan, we are promoting inspection training for each process operator other than QC personnel.
resin treatmentInjection molding, molds
AssemblyWe also provide assembly services such as screwing, riveting, gluing, seal attaching, boxing and packing.
We are also preparing for a higher precision manufacturing system that includes wiring, assembly, and clean room operations
Shipping[Exporting to Japan (or other countries)
There are two types of transportation: air (aircraft) and sea, but for heavy and large items, we basically use sea transportation. Shipments leave the port at the end of every week and take about two weeks to arrive in Japan.
The time from shipment to customs clearance and delivery is dependent on local holidays and other factors, but please allow approximately four weeks for customs clearance and other procedures.
Air freight can be delivered in two days (air freight is cheaper for shipments up to 250kg). We can also make arrangements for shipments to Thailand, Vietnam, etc.
Delivery in the Philippines All deliveries within the Philippines are made by our own truck service.
Since entering the market as a wholly owned overseas subsidiary in 2002, we have been proposing "monozukuri" (manufacturing) that takes advantage of the advantages of overseas production. Our company is not just a cost-conscious production system, nor is it a cheap production system with no Japanese staff, which leaves a lot of uncertainty.
Close collaboration with the head office in Japan, and the same level of production facilities, know-how and quality control system as in Japan.
This is our own factory, 100% owned and independently operated!ARKTECH Philippines is a wholly owned independently operated factory.
As is often the case with joint ventures, we do not get bogged down by the "common sense of the country in which we are operating," which can result in inconvenience for our customers.
No matter what time you contact us, our Japanese staff will be there to help you.
Our Philippine plant is now operating 24 hours a day!A three-shift operation system has been established, and the plant has been operating 24 hours a day since August 2005.
Completed the expansion of production system in 2006
Personnel and processing equipment (punch press, NC tapper, deburring machine, spot welding) have been increased.
June 2006 - Philippines Factory Expansion!
We have expanded the working floor area of our factory in order to meet the requirements of our customers in a qualified manner.
The additional equipment has improved the cramped work environment and created a cleaner layout. In addition, the office and meeting rooms have been expanded to provide more room for meetings with customers.
Expansion of the new production system!Expansion of sheet metal processing facilities
Expansion of surface treatment facilities
Operation of new production control system
One of the problems we hear about with overseas expansion is that although costs are low, quality, delivery, and customer service can be unsatisfactory.
ARKTECH is aiming to contribute to customers beyond national borders by improving business coordination and communication between local staff and domestic staff.
Collaboration system between Japan and overseas.At the "Digital Center" in the Philippines, our talented local staff, who have graduated from engineering universities, are designing products using 3D CAD. Specifications, 3D designs for prototypes, drawings for inspection, NC machining data, etc., are created in close consultation with engineers at the head office using a video conference system.
Triangle ProcurementThrough collaboration between Japan and Philippine factories, we can supply directly from local factories to customers who are expanding into China, Thailand and Vietnam.
Communication with them is in English, Japanese and Tagalog.
Acquisition of Certification
ARKTECH Philippines has been working to obtain ISO 9001:2000 and ISO 14001:2004 certification. In November 2006, we simultaneously obtained ISO9001 and ISO14001, which are quality and environmental management systems, from TÜV, a German audit and registration organization.
As a result, we are now one step closer to the same level of production system as the head office.