ADT 2004 Annual Report Download - page 35

33
programs in other countries. Historically we’ve been
a components manufacturer, and these new com-
plete radio systems open up a major new market to
us, offering tremendous opportunity for growth in
systems-level products.
Q: ELECTRONICS IS ONE OF TYCO’S MOST GLOBAL BUSINESSES.
WHAT ARE THE MOST EFFECTIVE WAYS TO MANAGE GROWTH
IN SUCH A GLOBAL ENTERPRISE?
Because we are extremely customer-focused—and
because many of our customers have a global pres-
ence—our job is to meet their needs wherever they
are located. Our global manufacturing footprint, for
example, is an important support pillar, helping to
provide optimal customer service by placing us phys-
ically close to customers all over the world. Our vast
international reach gives all our businesses a global
charter, and each continually tailors its product offer-
ings, engineering talent, and manufacturing footprint
to match our customers’ needs.
Of course, none ofthis could be implemented
without our globally deployed marketing and sales
force and our Global Account Management (GAM)
program. GAM is designed to make it easier for
major global customers to work with us by offering
them a single point of access to Tyco Electronics’
resources. Each Global Account Manager is respon-
sible for managing our complete relationship with
a particular customer. Our objective is to create a
seamless resource and enhanced, comprehensive
access to our product offerings.
Q: WHAT ARE YOU DOING TO CAPITALIZE ON GROWTH OPPORTU-
NITIES IN CHINA?
Without question, China—with its big population
and rapid growth in technical developments—
represents one of the largest markets in the world.
It is truly a huge growth opportunity, one that is
experiencing the fastest local market growth of any
single country. Just as important, China is a prime
manufacturing location for us because of its prox-
imity to nearly all of our global original equipment
manufacturer customers who have operations there.
Within the past five years, we’ve enlarged our
Chinese manufacturing base from 3,000 to 26,000
employees. We now have 16 plants in China, and we
are expanding our engineering and design resources
there as well.
Q: WHAT WERE YOUR KEY INITIATIVES AND BIGGEST SUCCESSES
IN 2004?
Certainly our effort in China is one, as well as improv-
ing coverage in other emerging markets, such as
Eastern Europe and India. We grew sales through
market share gains and an increased new product
stream. We achieved continuous cost improvements
based on Six Sigma initiatives, all in the face of
significant headwind from increased raw material
prices. We further improved product quality,
reaching single-digit parts-per-million defect rates
in many key product areas.
Q: WHAT ARE YOUR SEGMENT’S PRIMARY GOALS IN 2005?
We’re focusing on growing organically, continuing
to improve our new product stream, and realizing
further cost savings through lean manufacturing and
logistics programs. Our ultimate goal is to deliver
ever greater value to our customers through consis-
tently superior product quality and customer service.