AMERICAN CONNECTOR

COMPANY
The Situation

Change
How to the work
Process
Deterioration tackle the or stick to
of quality at problem
Threat of at hand the
competitor Sunnyvale previous
1980s: plant plans
fall in (DJC)
1970:Rap entering US
id growth demand
and market
in US
connector prices.
industry Intensive
competiti
on
Company Profile: ACC
• Work: Manufacturing electrical connectors
• Demography: four in United States and two in
Europe
• Competitive Strategy: Customization and Quality
• Known for: Excellent technical solutions
• Margins attained: approx. 52%
• No major investment in technology since 1986
• Focus areas: Maintaining flexibility, advance
production targets
Company Profile: DJC
• Work: Electrical connectors for computers,
consumer electronics
• Demography: Kawasaki plant, Japan
• Competitive Strategy: Highly efficient
manufacturing
• Known for: Simplicity and manufacturability
• Margins attained: approx. 50%
• Focus areas: Attaining low cost position with high
quality
 Process Flow Diagram
Terminal
Terminal Assembly
Stamping and Holding Packaging
Plating and Testing
Fabrication Area Area
Area Area
Area

Plastic
Housing Holding
Molding Area Area

Process Flow Diagram of ACC

Terminal Housing/ Assembly

Testing Packaging
Stamping Molding Operations

Process Flow Diagram of DJC

ACC (SUNNYVALE PLANT) V/S. DJC (KAWASAKI PLANT)
at a glance…
COST ANALYSIS IF DJC OPERATES IN U.S
Is DJC really a threat to ACC?
• Seeing through the lens of efficiency, DJC is more efficient in
terms of it’s operations and labour costs are low.
• But, both are leaders in their different geographical locations.
Both the locations and situations being way too diverse, it won’t
turn out to be a threat.
• Because, of two main strategic reasons:
• Labour laws in the two places and the Supplier relations can’t
be replicated easily.
• But, ACC should surely, learn from the DJC manufacturing
model and improve on it’s own shortcomings; else, it may soon
be overtook.
• Hence, not a direct threat.
What should be the future course of
action for ACC?
• Hybrid: Inculcate DJC supplier relations.
• Focus on quality monitoring – reduce defect percentage

• Differentiate Standard and customized product lines

• Remove inefficiencies in the process
• Increase capacity utilization

• Cost reduction by using substitute raw materials

• Improve customer feedback mechanisms.
Thanks!!!

Any Questions???