Leading industrial

upgrades

Leading industrial upgrades

For more than 30 years of our operations in Taiwan, YOKE has placed technical know-how and product competitiveness as its top priority. However, product competitive advantage exists in a company's know-how and supply chain partners that work alongside YOKE. For this reason, YOKE has adopted the principle of making localized purchases and treating suppliers as business partners. In addition to fulfilling corporate social responsibilities in its own capacity, YOKE also guides suppliers in making ongoing improvements to product quality and production efficiency. Ultimately, we view optimized production procedures and product quality as the foundation for corporate sustainability.

Implement local procurement

With the strategy of promoting an industrial cluster for forging and thermal treatment for supplier management, YOKE has been working with long-term suppliers for mutual growth in pursuit of sustainable business operation. Thus far, YOKE’s procurement policy has always emphasized local procurement. And though our proportion of local procurement between the five years of 2013-2015 in Taiwan had exceeded 99%, the amount of local procurement for 2020 fell slightly to 96.55%. Due to the impact of COVID-19, our turnover for 2020 fell substantially by23.16%. Having idle capacity allowed us to reduce our outsourced processing and coupled with other measures of reducing inventory costs and controlling our operating budget, our overall procurement costs fell significantly by 55.77% in 2020. As our remaining budget for overseas procurement had been limited to begin with, our budget for local procurement had dipped further to 96.55% in 2020. In order to implement our local procurement strategy, YOKE has also been actively developing products in collaboration with our suppliers. In 2019, we focused on improving the application of embedded RFID products by assisting our software development partner in developing more software functions to better accommodate our customers' needs and provide more convenient services to drive our sales of RFID embedded products. In 2020, we continued to develop new materials for Grade 120 products with National Taiwan University and assisted our suppliers so that they could manufacture materials that meet our required specifications. This will hopefully enable us to purchase compliant materials locally in Taiwan.



Supplier information platform

To expedite supplier-related processes, YOKE has introduced its supplier information platform and planned to introduce new functions over the years to strengthen our two-way information transmission and exchange. In 2019, the file-sharing mechanism for outsourced processing drawings was completed. We were able to share process drawing files through our PLM system for suppliers to download said files directly through our supplier information platform. Currently, 95% of our suppliers have completed the implementation. We have also upgraded our SAP ERP in 2020 as we reviewed our procurement process while integrating it to relevant systems and we are expecting to develop new functions on our supplier platform system in 2021.

Strategic partner collaborative improvement

In order to improve the IQC passing rate, we have introduced our process management concepts and practices to two key material suppliers to ensure that FQC is properly carried out prior to shipping to reduce the incidence of shipping nonconforming products. For our suppliers’ QC inspection personnel, we also offered relevant training for said personnel to ensure that both parties have adopted consistent approaches to inspection. This would also help to ensure the reliability of FQC results. In addition, YOKE will also assist suppliers with their management of tools and fixtures coupled with on-site audits to ensure that actual inspection practices are compliant with relevant operating procedures.

Supplier Counseling

In 2018, through a project for pre-production scheduling, the materials, design drawings, equipment and outsourced processing capacity can all be prepared for early scheduling. Suppliers could query for the delivery schedule to improve the delivery and yield rate. In 2019, we completed introducing a major forging service provider and three additional processing contractors for outsourced processes. Prior to the introduction of the project in January 2018, our overall delivery rate from our forging manufacturers was 81.45%. After the conclusion of the project, the overall delivery rate of the manufacturers we introduced increased to 98% in December 2020. For the processing manufacturers, their delivery rate increased from 98.43% to 100% after the project. As the results were quite remarkable, we planned to include three more processing manufacturers in the project of pre-production scheduling in 2021. In 2020, we launched our primary supplier quality management counseling program in which our QA supervisors served as the heads of the program while designated engineers helped by being the liaisons. We engaged our suppliers in quality management practices through the weekly quality meetings and improved their depth of execution. Participating suppliers benefited from the program as their average monthly complaint fell by 73.08%, their average IQC rejection fell by 67.35% and average production line anomalies fell by 77.78%. These improvements helped them to lower their costs incurred by internal failures in different areas. For raw materials that have to be tested with salt spray, although some manufacturers have acquired salt spray test machines, due to the inconsistency in their test methods, we had to redo the tests and that led to repeated work and wasted time. And as such, we introduced improved testing techniques for suppliers in 2019. For suppliers that pass our audit, YOKE would simply accept the test data they provide during IQC so as to spare the suppliers from having to provide samples and the time investment required for both parties. The techniques also helped suppliers detect anomalies prior to shipping to rectify the issue in time. In 2020, our statistical data indicated that our suppliers performed 624 instances of salt spray tests at their own facilities. With their delivery accepted at YOKE and entering our inventory, each accepted shipment converted to 48 hours of inspection time saved. This effectively improved the flow of subsequent processes and delivery quality (by reducing rejected products). In 2020, we also encouraged our suppliers to make improvements in their quality management system. In light of the fact that most of our suppliers fall in the category of small enterprises, it would be a tall order to ask them to be accredited to ISO 9001 quality management system as they might lack the resource/manpower to achieve the required management and maintenance. And as such, YOKE has developed its assessment tool by simplifying its quality management system and conducted periodic quality management system assessment for suppliers involved in key procurements with large transaction amounts, supplemented with counseling and assistance to help them achieve continuous improvement on their operating procedures. In 2019, the number of key suppliers working with YOKE that have obtained ISO-related certifications came to 111 (44.58% were suppliers). In 2020, we continued to push for more suppliers to become ISO certified and 10 additional suppliers received their ISO certification.

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39, 33rd Road, Taichung Industrial Park, Taichung 407, Taiwan

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+886-4-2350-8088 

#39, 33rd Road,Taichung Industrial Park, Taichung 407, Taiwan