Like some others, I had assumed we needed Flextronics for part...

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Karljasper

479 Posts.

14/11/14

14:12

Post #: 14291456
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Originally posted by CurlyHarry ↑

Read the case study in Writer's original post, it is the same circumstance as UNIS. They need to ramp up production and they have no experience in doing so. They went to people (Flex) who have never ending experience at doing exactly this. They will probably save money in setting up, running and overall operations of the overall lifecycle providing higher margins for the end product. I cannot understand why someone has a problem with this, I don't.

I have been to the Shenzhen factory for Flex many times, they are incredible at manufacturing these exact types of products. It is extremely difficult to ramp up production from 0 to the moon for the inexperienced, it is only good management that they have realised this and done exactly (IMO) what they should have, tuned it over to people who do this as a business model. How many modification to the unifill line was made before it functioned correctly. This was for a low volume line to boot. By the time they finished they had to go out and buy a new high speed version without even recouping the cost of the original one. Also the lost time in doing this cannot even be calculated, well maybe someone can but not me.

I have lots of bitches about UNIS which relates mostly to being pee'd off because my shares are down but in this case I think it was very admirable at the least to admit that others may be better suited to manufacturing than themselves before spending carloads of money they do not have in creating a way to manufacture the volumes required before potentially upsetting the customers by not delivering.

Nice one UNIS.

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Like some others, I had assumed we needed Flextronics for part of our ramp up. However, you make it sound like we're completely incapable of doing high-speed production for the foreseeable future and that maybe FLEX should be doing all of our manufacturing. Maybe we sell the darn York facility and move to a much smaller R&D building?

UNS Price at posting: 59.0¢ Sentiment: Hold Disclosure: Held
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