HOW TO SUCCESSFULLY PENETRATE THE US MARKET

Sorin Witzman August 2012 40 Hrs Consulting Sorin@40hrs.us

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Where to start?

• Know what you plan to do • And AVOID PROBLEMS!

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Fatal Customer Complaints

• Product not delivered in time; • QUALITY Problems

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What is Quality?

I want QUALITY

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What is Quality?

Quality means satisfying

the customer’s expectations

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Quality Requirements

• Satisfy customers' expectations, • Meet a well-defined need, use

or purpose, • Comply with applicable

standards and specifications, • Comply with statutory and other

requirements of society, • Make the product available at

competitive prices, • Provide product at a cost which

will yield profit. Sorin’s Six Quality Commandments

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Protecting The American Consumer

• To ensure the quality of imported goods, US and other countries have federal and state organizations issuing regulations and quality standards: – Federal Trade Commission – Food and Drugs Administration – International Organization for Standardization – Restricted Materials Regulations (Federal & State) – Industry specific Quality Standard Organizations

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Protecting The American Customer

• Product specifications and the procurement contract does not contain all the regulatory requirements;

• Lack of knowledge regarding quality requirements does not absolve the supplier from legal responsibility;

• US and European companies are reluctant to engage in business with companies that do not show knowledge of local quality regulations.

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Example

In 2010 Chinese construction company Covec suffered delays, penalties, and contract cancellations because it was not aware Polish quality regulations require building frog passages under the highways. They had to start over!

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Quality Challenges in Vietnam

• Lack of knowledge regarding customers’ behavior in new markets;

• Lack of knowledge regarding customers’ expectations;

• Lack of existing records showing experience and expertize;

• Language barrier.

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How can I overcome this handicap?

Learn what your customer

wants

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Quality Organization

• The decision on design quality is not just a design and production choice.

• It is a fundamental corporate strategy that should involve the active participation and commitment of all departments in an organization.

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Market Research

• Each user is different; • Identify the quality needs of end-users

– Understand the application, – Understand the use environment, – Examine the local requirements for product quality, – Provide instruction on how to meet the quality

requirements and the implications for the company.

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Product Development

• Design Specifications should include the identified quality needs;

• Quality and how it can be achieved should be considered in the earliest stages of design;

• Most of the product quality is decided during product development.

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Organization of the Production Process

• The production process should be designed to adapt quickly to the modification of the quality requirements;

• Each step in the process should have Quality Targets; • The process should allow for the verification of the set

Quality Targets.

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Production Planning

• Must ensure that design specifications are met; • Must ensure the product is produced on schedule; • Must ensure the quality targets can be monitored

and they are met.

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Purchasing

• Must ensure the materials specified in the bill of materials are procured and arrive in time;

• Must ensure the quality of the purchased raw materials;

• Must verify through incoming inspection that the materials and subassembly procured meet the quality targets;

• Must achieve and maintain the proper relations with all suppliers and potential suppliers.

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Inspection Testing

• It is necessary to prove all products and incoming materials meet the quality targets;

• Must produce and maintain the records proving the products meet the reliability targets.

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Customer Service

• Must channel feedback from end-users; • Assist customers in reduction of field failure; • Look for the opportunities of improvement.

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40 Hours Consulting can provide support in

achieving a proper quality organization

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40 Hours Consulting Services

• Technical – Personnel Recruitment – Product Support Services – Technical Consulting Services – Know-how Advisers

• Business Services – Market Research – Customer Support

• Financial – Insurance – Loans & Banking Services

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CONTINUOUS QUALITY IMPROVEMENT SUPPORT

Product Support Services

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Qualifications

• Product Qualifications: Will ensure that the product meets all the specifications, industry standards, and regulatory requirements.

• Manufacturing Line Qualification: Will ensure the manufacturing processes selected are capable to produce products that meet all the quality requirements.

• Process Control: Will ensure the manufacturing line maintain capability over the life of the product.

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Qualifications

• Certifications: Required for regulated industries (food, telecom, etc.), depending on the type of product.

• Field Follow-up: Required for monitoring the field performance of the product and keeping in contact with the customer.

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Documentation

• Company must have a Quality Manual, • Company should have Qualification Processes for

Products, • Company should have Process Qualification

Procedures, • Company should monitor and keep database for

field results, • In some cases certification (ISO 9000 or

equivalent) might be required.

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Customer Support

• Company must provide support for the products delivered in international markets: – Failure Analysis:

• Defects associated with the raw materials or procured components

• Defects arising from manufacturing processes – Corrective Actions – Continuous Quality Improvement

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COOPERATION WITH 40HRS CONSULTING

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Assistance Provided by 40hrs Consulting

• Audit & Evaluation of the present situation – 1 or 2 days review plus report ($2000)

• Help with creating company Quality Organization – Quality Org Chart, function description and training, records

keeping, internal auditing training. – Duration 4 to 6 months – Cost $20K to $50K according to company size and product type.

• Help with providing Quality Procedures and Training – According to the company need

• Continuous Quality Improvement Support – According to the company need

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Assistance Provided by 40hrs Consulting

• Local Market Research – Potential Customers or Suppliers – Local market quality requirements and expectations – Regulatory requirements – Assistance with Contract Ratification (technical & legal) – Cost according to company size and product (min 10K)

• Local Customer Services – Provides link between the company and the local customer – First contact in case of customer grievance, follow-up on

resolution and corrective actions – Local auditing – Paid on commission

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