Advanced Circuits, On time in no time

Manufacturing in Action, Source : The Manufacturer US

President and CEO John Yacoub tells Keith Regan how Advanced Circuits got its reputation as one of the largest fast-turnaround PCB makers in the US, and the investments it makes to keep it

Ten years ago there were some 1,100 printed circuit board makers. Today, there are fewer than half that number, and of those that remain, Aurora, CO–based Advanced Circuits stands out for its ability to meet customers’ last-minute needs.

Advanced Circuits, which employs about 200 people, has gotten to the top of the quick-turn (i.e., completed in one week or less) PCB market by being “100 percent customer oriented,” says president and CEO John Yacoub. While industry standards say on-time delivery above 90 percent is “outstanding,” Yacoub says many competitors are actually closer to 85 percent. At Advanced Circuits, the on-time rate is “99.99 percent” and in fact more than half the orders are shipped before their due date. “We are the only company in the country that can say it has that kind of on-time record,” he says.

The market is taking notice, with Advanced Circuits’ growth being a testament to its success: the company had sales of $4.5 million in 1996 and is on target to approach $50 million this year. The growth is coming from various sources, including the reduced number of manufacturers in the space, increased orders from existing customers, and new customers. “Customer acquisition for us is customer referral,” with engineers at one company often recommending Advanced to friends, claims Yacoub, adding that the firm’s policy of working to immediately resolve any issues that arise to the customer’s satisfaction helps make sure it gets recommended. The company says it sees between 250 and 300 new customers each month.

Yacoub cites a couple of other reasons for the company’s success as well, including Advanced Circuits’ proprietary software system (Free DFM), which enables orders to be placed around-the-clock through the company’s interactive Website and for orders to be confirmed and corrected, if necessary, within 10 minutes in most cases. The self-service Website is backed up with a 20-person-strong inside sales staff that stands ready to offer human intervention when it’s necessary. “Our customers have found that to be huge,” says Yacoub. “Free DFM is active 24 hours, so they can submit information at night, and the system can check their design immediately.”

To meet the quick-turn demands of its customers, Advanced Circuits made a number of process improvements. It also standardized its materials, using a single-size 18-by-24 panel, while competitors often use smaller sizes in order to save on materials costs. On the floor, supervisors have constant access to the latest information, which enables them to direct manufacturing based on priority orders and other considerations, with a system offering real-time data on orders booked, shipping, manufacturing, and supply chain. “We’re a fully automated company, with a lot of information readily available to help us do our jobs,” Yacoub notes.

There’s also plenty of human interaction, with Yacoub himself taking place in a daily production “huddle” (a 15-minute meeting) to start each day, and a second taking place when shifts change in the afternoon. Longer meetings are held when necessary to address any issues that arise. “Communication is the essence of success; there are no surprises at all.”

Advanced seeks to keep its advantage by constantly investing in equipment. The president estimates the company has spent about $1 million in each of the past three years on new equipment and will spend up to $5 million more in the next two to three years. The bulk of the spending will be on automation equipment and on replacing existing machinery with newer technology. Though it specializes in relatively small batches of around 100 pieces, Yacoub says Advanced can produce batches as large as 100,000, even on a quick-turn basis, by utilizing manufacturing partners.

Human capital is also prized, with each employee required to spend at least four hours per month on training, from state-mandated safety or environmental training to specific training in new manufacturing practices. Advanced has also been lauded with an environmental award for its wastewater reclamation efforts in three of the past four years in its home state of Colorado. “It’s something we take very seriously,” says Yacoub. “We do it not just to comply but because we believe in environmental safety for our employees and our host community.”

Comments on this story

click here to add a comment

Loading