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Notes From Rob Coats SMC CEO

Notes from CEO: The Five-Ways of Capacity

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Cincinnati boasts a fast food restaurant chain – Skyline Chili – that has “spaghetti five-way” – with five different toppings. Manufacturing Capacity can be considered in a similar way.

1. Facility Capacity

When asked, “What’s your capacity?” one generally is asking how full is your facility. But there are four other kinds of capacity that you, as a customer, should be concerned with from your EMS partner. Each one of these types of capacity is a crucial part of a manufacturing firm’s enterprise.

2. SMT Capacity

How many SMT lines do you have on how many shifts? With newer technology and different configurations (like two chip shooters on a single line), the number of lines may be less important than the speed of the line for your product. Be sure your company’s specific layout is clarified.

3. People Capacity

Can you hire qualified operators and technicians and train them in time to grow with your customer? At SMC, we are fortunate to have been in Central Kentucky long enough to have developed a reputation as a great place to work and have many folks “waiting in the wings” to join our team. This ensures that the best-qualified personnel are working on our team.

4. Financial Capacity

Do you have a banking relationship strong enough with a large enough bank to fund your growth? Sales growth requires working capital and potential needs for larger lines of credit. Can your EMS partner’s bank support their growth? This is a continuing endeavor, and something to constantly monitor for improvement.

5. Executive Management Scalability

Your EMS partner needs to have the ability to grow with you. If they cannot hire the additional staff and manage your growth, they may be the wrong fit for your needs. SMC has had a history of being a Top 100 EMS company, with experienced executive managers from Fortune 500 companies. So, take care when asking, “What’s your capacity?” that you think of Capacity “Five-Ways”!

About Rob Coats, CEO

Rob Coats is the Chief Executive Officer of SMC Manufacturing ServicesRob brings more than thirty-five years of manufacturing experience to SMC. He spent the first part of his career in manufacturing management with Procter & Gamble before coming to Lexington to manage the operations of a small manufacturer. His first position with ownership was a wire harness company near Lexington. After that business sold, Rob purchased SMC as the majority owner in 1994. Sales grew by 7X over the next thirteen years due to a stellar group of key employees. Rob holds a B.S. in Engineering and a MBA from Virginia Tech.

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