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Foxconn Delivers for Apple

 Foxconn's Manufacturing Strategy--A Case Study

Kansas City

16 MAR 2012

Issue# 79

Its not about cheap labor. Its about Flexibility, Quality and Cost Structure.

This issue of Lean Briefing looks at Foxconn, Apple's primary supplier for iPhones and iPads. Based on ABC Nightlines video report on Foxconn, we have identified some of the principle features of Foxconn's Manufacturing Strategy and how it supports Marketing Strategy.

Our previous newsletter identified the "Key Manufacturing Tasks" for Apple. These were the tasks that manufacturing had to perform extremely well to support Apple's marketing strategy. We then examined how Apple's factory in Fremont, California had failed to address these tasks and caused Apple to move their manufacturing overseas.

I think you will find this series interesting. It illustrates several topics in Manufacturing Strategy. These include capacity, technology, quality and cost structure (as opposed to cost performance). It also illustrates how we at Strategos approach our projects: initial, almost casual, observations identify possible issues and this leads to further, more targeted investigation.


Best Regards,

Quarterman Lee


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