FONTEC | Four Key Points Of Digital Transformation

Fontec Screws Co,. Ltd. was founded in 1978 and has been devoted to designing and manufacturing various special rivets and screws for over 40 years. The company adheres to the principle of continuous improvement and solid management, so it has introduced a quality management system to meet the needs of the market and customers, as well as the factory’s own self-improvement requirements for digital transformation.

With strong product technology and quality strength, Fontec has sales outlets all over the world. Non-standard fasteners are the main business of Fontec, and the high degree of customization, as well as the wide variety of product types and specifications, make production management somewhat challenging. Lin Qinkai, the assistant to the CEO of Fontec, stated that the profit margin in the fastener industry is quite thin, and problems in production management have led to delayed delivery times, prompting the company to make new considerations in its management concepts and methods.

In order to meet market expectations, Fontec decided to collaborate with Digiwin Software after taking over the business from the previous generation. The goal of this collaboration is to jointly implement software for intelligent manufacturing and digital transformation. The plan concentrates on four major areas: R&D management, production management, cost management, and performance management, in order to greatly boost the efficacy of corporate governance. This resulted in an 80% increase in the rates of mold acquisition and order fulfillment and a 47-day reduction in turnaround time.

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4 Key Elements of Digital Transformation

Research and development management: Establish a feasibility evaluation mechanism to reduce rework

Fontec has introduced a feasibility evaluation mechanism. Whenever a new order is received, business personnel can use digital platforms for evaluation. Factors such as changes in materials or equipment and adjustments to mold designs can be included. Through various calculations, business personnel can quickly respond to customers’ delivery dates.

Production Management: Streamline Scheduling, Manage Molds, Integrate Production and Sales, Improve Transparency

    • Production Management – Scheduling, mold management, coordinating production and sales, and transparent production

    According to Ding Yu-Ru, a consultant from Digiwin Software, they first established the standard processing days for each machine’s operations and the normal load rate for the production line in order to increase Fontec’s production efficiency. This served as the foundational information that production management staff needed to create order scheduling plans. The overall scheduling process was made more effective and seamless by merging production data, on-site staff perspectives, and consumer feedback regarding demand.

    • Mold Management – Managing mold life and inventory to ensure availability for production

    Fontec’s procurement officer, Xiao Yuan-Ren, said that in the past, mold management was done on paper and lacked calculations for mold loss rate. After introducing a new mechanism, mold life management was conducted through the order production scheduling table, in order to estimate the use of molds in advance and do the necessary work for backup or maintenance. With mold life management, molds, and fixtures are arranged more appropriately in terms of use, maintenance, and repair.

    • Coordinating Production and Sales – Establishing a production and sales coordination meeting process

    The company established regular production and sales coordination meetings, based on the delivery dates proposed by customers, and discussed issues between production and sales departments. Cross-department communication was conducted for each agenda, allowing both departments to clearly grasp their respective progress.

    • Transparent Production – On-site management through barcode reporting

    On-site progress reporting is done through barcode reporting to achieve real-time and transparent information. Fontec’s factory manager, Chen Cai-Han, said that production management personnel can understand the operation status of each machine at any time through the light signals. If the display is yellow (fault), the built-in push notification system will immediately notify the relevant departments to go to the scene for inspection and processing.

    Cost management: Establish a settlement process to effectively shorten the processing time

    It took a lot of effort, according to Li Xiao-Hui from the Fontec team, to organize the information after gathering the data for cost estimates, which included processing, labor, and production costs. The Digiwin team revised Fontec’s settlement schedule and established an allocation principle for expenses in order to increase settlement efficiency and financial transparency. The system’s internal audit and control mechanisms enable the accuracy of staff input to be checked at any time, speeding up payment.

    As a result, a cost analysis can be finished by the company in the middle of the month, and management can quickly understand the operating situation and pricing changes.

    Performance Management: Achieving Transparency in KPIs by Ensuring Accurate and Visible Data

    Lin Qinkai said that the traditional industry is facing a generation gap where the younger generation is not willing to enter the industry, and the old masters are not willing to teach new people. Fontec hopes to promote a performance management system by implementing the project. Liu Yu-Lan, a consultant from Digiwin Software, explained: “Fontec itself has a performance management system, but it is superficial and most indicators are qualitative. We are working to quantify the indicators so that the fairness and rationality of performance indicators can convince employees.”

    Lin Qinkai sighed that implementing this digital project is not only introducing a system for the enterprise but also changing the mentality and work attitude of all colleagues. In addition, he believes that using the power of data to improve enterprise management can achieve qualitative leaps in issues such as management decision-making, cost control, delivery maintenance, quality, and efficiency. Secondly, when employees feel the convenience brought by the information system, they are more willing to promote optimization plans, thus achieving a win-win situation for colleagues and management.

    Digiwin Software helped Fontec Screws take a step toward digital transformation. In the future, Fontec can gain an advantage in various aspects with a good foundation of informatization. Digiwin Software will continue to stand in the role of assisting enterprises and providing high-quality e-consulting services.

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