Nan Dee Precision Primed and Ready for Bigger Part in Machining Sector

Nan Dee Precision Co., Ltd., a top-three lathed/machined parts maker in Taiwan, specializes in manufacturing various kinds of high-precision parts made of different metals.

This ISO 9001: 2000 approved company claims that its leading edge and trend-setting techniques and know-how can effectively fill orders for various specifications and applications, making Nan Dee a provider of total-solutions in machined and turned parts.

Not only having built a commendable and brilliant track record since its establishment in 1982, Nan Dee has, especially in the past five years, fared remarkably, enabling the supplier to command an enviable market share in precision electronic components.

"What Nan Dee has achieved in the foregoing years can be deemed as laying the groundwork for explosive growth in the next six to eight years," confidently claims Michael Chuang, the young and energetic founder as well as president of Nan Dee. "From now to 2017, we expect our revenue to grow tenfold to reach about NT$7 billion (US$229.5 million at US$1: NT$30.5), a goal we aim to achieve by having set up new and sizable production plants in Taiwan and mainland China; employing professional mangers with ample experience; industry-leading technical capability; accumulated experience and know-how in wide-ranging application markets; and above all-an unwavering commitment to pursuing constant growth and sustainable operation."

Chuang's brimming confidence and single-mindedness for corporate growth are solidly founded-having succeeded in achieving steady, remarkable operating performance in the past five years: registering 30% average annual revenue growth. Such growth is due to Nan Dee's rapid expansion of its customer base into other application markets, including aiming devices, RF (radio frequency) connectors, pneumatic and hydraulic parts, auto/motorcycle parts, and many others.

Besides broadening its customer base, Nan Dee has also managed to bring onboard globally-renowned brands as Philips, Braun, Tyco, Radiall, HRS, Aimpoint etc., who appreciate the supplier's capability to offer high quality, on-time delivery, and price competitiveness.

Division-of-Labor Strategy

As many in the manufacturing sector in Taiwan who realized that lower costs in China must be tapped to upgrade global competitiveness, Nan Dee also set up a factory in Shenzhen, Guangdong Province in 2000 to pursue division-of-labor and separated delivery bases.

Currently, Nan Dee's plant in Taiwan employs about 60 people and is equipped with 65 computerized numerically controlled (CNC) machines, and the facility in Shenzhen about 600 people and over 200 machines (including 45 CNC models).

Chuang points out that Nan Dee's division-of-labor strategy realized by establishing manufacturing on either sides of the Taiwan Strait has steadily, effectively helped to enhance corporate revenue and profit. Most orders demanding higher precision are filled in Taiwan, while the China-based factory has also seen its operation bear sizable fruit due to increasing outsourcing from big international companies.

Nan Dee's China-based plant is both ISO 9001: 2000- and TS 16949-certified, Chuang says, and has been attracting increasing attention from local procurement offices of major international players in various industries as auto parts, medical equipment, telecom etc.

Horizontal Integration

With its core strength in machining/lathing and realizing the advantage to be achieved by offering a broader range of manufacturing services, Chuang stresses, Nan Dee has been aggressively pursuing horizontal integration.

The president says that Nan Dee has been working with a group of quality-oriented partners in metal forging and pressing, plastic injection etc. fields to form a cross-sector alliance-literally turning Nan Dee into a jack-of-all-trades or total-solution provider.

"Our horizontal integration will continue to expand, Chuang claims, with such process to also accelerate. And we are not only looking into the future but also prepared, having set aside considerable land in Nan Dee's plants in Taiwan and China for new production and assembly lines that can be installed immediately at the right time. We have been working towards being an all-round original equipment manufacturer (OEM), whereby every step has been taken for such goal."

Top-end Equipment & Skill

To deliver the highest quality and precision level, Chuang says, Nan Dee insists on using only top-end machinery. And knowing that a machine's output is only as good as its operator, the president stresses that all Nan Dee's machines are manned by seasoned technicians, hence able to achieve very low defect rates and high quality.

Nan Dee consistently achieves a precision tolerance of ±0.005mm.

The core strength behind Nan Dee's precision and quality, according to Chuang, hinges on the ample experience and know-how accumulated in processing and manufacturing; while the teams of skilled machinery operators aptly apply their years of experience to turn out exacting, quality products.

Such experience and know-how, the president stresses, enable every machine operator to be mechanically-savvy-knowing which cutting tool to use appropriately to achieve desired stability. "Having such know-how is the prerequisite to turning out high quality and exacting products, with the skills working synergistically with machinery upgrades," Chuang claims. "In addition, applying such know-how also helps to assure on-time delivery and minimal defect rates."

Being extremely quality-conscious pays off: Nan Dee consistently rates near perfection on the seasonal evaluations carried out by customers. Suppliers scores Nan Dee on average between 95 to even 99 for quality and punctual delivery.

Achieving such commendable seasonal evaluations is significant for Nan Dee, especially when such scores are given by its major customers in Japan (accounting for about 40% of sales), Europe (40%), and the United States (20%).

TQM-based Management

Nan Dee, Chuang says, basically adheres to the TQM or Total Quality Management concept, which, according to Wikipedia, is a quality-centered management approach for an organization, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society. It generally aims to coordinate the management process with a set of disciplines to ensure the organization consistently meets, exceeds customer requirements.

"Nan Dee asks every employee to fully follow each corporate policy and decision," Chuang claims, "but the top management will try its utmost to standardize all the key steps for complete and comprehensive execution."

In addition, the president adds, Nan Dee always tries to minimize staff turnover to keep overall consistency, stability in each process. "Stability is the foundation of steady development," Chuang says, "which is what Nan Dee pursues."

Financial Accountability

All of Nan Dee's financial statements are independently audited and certified by international CPAs (Certified Public Accountants), Chaung stresses, making its corporate finance creditworthy and trustworthy.

According to Chuang, Nan Dee's financial soundness is rated as one of the company's most competitive advantages by various international customers, which enhances its portfolio to explore more business opportunities and partnerships in the future.

Lasting Viability Amid Volatility

"Turned and machined parts will never be rendered obsolete and the annual global market value grows steadily," Chuang says. "But product obsolescence is inevitable due to rapid advancement and integration in specification and configuration: For example, a large group of connectors may be made obsolete when they are integrated into a single chip or IC, which solves all the connection-interface problems."

Vision

"Nan Dee is ready to take major steps to expand over the next few years," the ambitious president claims, "including moves as going public, big-scale capacity expansion etc. Realizing such scheduled projects will see Nan Dee evolve rapidly into a significant player in the global sector for turned and machined parts, one who offers even-stronger price competitiveness and faster delivery."

Nan Dee Precision Co., Ltd.

22 Kechi 1st Rd., Tainan, Taiwan 709

Tel: 886-6-384-1123

Fax: 886-6-384-0511

http:// www.ndd.com.tw

E-mail: sales@ndd.com.tw