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'Satellite' factories contract scheme pays big dividends for IDT

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An overhaul of manufacturing and delivery systems paid dividends for Integrated Display Technology (IDT) and earned it an HKPC Productivity Award.

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'We have had terrific performance with 56 per cent growth over the last three years,' IDT's Joseph Lau said.

The company manufacturers a range of consumer products, including personal organisers, clocks and electronic barometers and altimeters, using liquid-crystal display technology.

The main elements to its success have been the introduction of turnkey contractual manufacturing and MRPII - a manufacturing resource planning system.

The former involves subcontracting the manufacture of low profit and mature products out to smaller firms.

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The move has improved productivity, providing flexibility to cope with in creased sales without the need to expand internal labour resources, production space and equipment.

'After internal production capacity has been fully utilised, excessive orders for lower end items will be contracted out to qualified subcontractors who have been well trained by us on quality standards and production know-how,' Mr Lau said.

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