Planning on opening a factory in China in 2021?
To get some insight and context into just what it takes to set up a new factory in China let’s explore how WE came to open our own factory, Agilian Technology, here in 2018! Renaud will explain the reasoning behind doing so, the goals, and the 6 phases we followed in order to make the idea of having a contract manufacturing subsidiary a reality.
This will give you food for thought and help you start planning the project as it’s possible you won’t have thought about some of the many points included in this podcast just yet.
Just hit the play button to start listening..!
Listen to the episode right here 👇👇👇
🎧 How We Set Up A New Factory In China From Idea To Operation 🎧
Here’s a summary of key sections of this episode:
✅ The story behind why we decided to set up our own factory in China
✅ How some learnings from the process turned into benefits and opportunities (examples)
✅ Phase 1: Choosing the right site for your needs and dealing with estate agents, etc.
✅ Phase 2: Making sure you adhere to local regulations – the focus here is especially on safety and the law concerning fire regulations, safe battery storage, legal hiring, insurance, and more.
✅ Phase 3: Decorating the factory – why to plan the areas and accomplish decoration before transferring production, how to handle working with your contractor effectively, and the various tasks you’ll need them to do such as floor style, creating the toilets, decoration, installing ventilation, lights, etc.
✅ Phase 4: Office setup – timely wifi access is crucial these days, but decoration, equipment, lighting, socket access points, etc, are all included here.
✅ Phase 5: Workshop setup – decorating the workshop and including its lighting, ventilation, etc, assuring power usage is realistic, and a focus on a layout that encourages optimal material flow will improve efficiency is helpful, as is line configuration (we use compact U-shaped cells and also longer lines for higher volumes).
✅ Phase 6: Warehouse setup – again, focus on the layout to improve material flow. Regular installation of racking, forklift, doors, fans, lighting, etc. We also discuss security.
✅ The key learning is to try to implement best practices for your needs – over the years we have seen a great many Chinese factories at first hand and we tried to avoid as many of the negatives as possible in our factory setup. An example is that we keep production managers and other staff who are involved in the production as close to the workshop as possible as opposed to them hiding away in their own offices (as is common in China) which reduces the value they bring.
Additional content related to today’s episode…
- Take a look at Agilian’s mass production in China page which includes a really helpful video from Renaud where he answers key questions customers have about Agilian before working with us on a manufacturing project.
- Visualize the different areas of the factory by watching them in operation on Agilian’s YouTube channel.
- Renaud listed the phases followed to set up Agilian in this blog post.
- Agilian is a contract manufacturer – what’s the difference between a CM, ODM, or OEM?
What other questions do you have about how to set up a new factory in China (or other Asian countries)? We can help! Let us know by leaving a comment, please.
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