Managing Automation - September 2007 - (Page 50)

ESSIVE MANUF PROGR IGH ACHIEVERACTURING H 2007 VIRTEX ASSEMBLY SERVICES, INC. Electronics contract manufacturer evangelizes the European Union’s hazardous substances restrictions. BY DIANE HIMES LEADERSHIP MASTERY company facts rad Heath caught a glimpse of the future in 2003 when the European Union adopted the Restriction of Hazardous Substances Directive (RoHS). Instead of shying away from the unknown, CEO Heath realized that RoHS, which restricts the use of certain hazardous substances in the manufacture of electronic and electrical equipment, signaled a new direction in the industry. Heath and his company, VirTex Assembly Services, Inc., embraced the resulting lead-free movement and began producing RoHS-compliant products, including printed circuit boards and end product enclosures for advanced industrial print equipment, semiconductor test equipment, level sensing and remote monitoring, and robotics. Since then, his small electronics contract manufacVIRTEX ASSEMBLY SERVICES, INC. turing company has led the way in its industry as a role TOTAL REVENUE/EMPLOYEES: $12 million to $15 million expected for 2007/50 employees model for environmentally friendly manufacturers. LOCATION: Austin, TX When the RoHS guideINDUSTRY: Electronic components, instrumentation, lines were released, “nosemiconductors, test equipment, high-end servers, etc. body had a clue what the CEO: Brad Heath impact would be or what PROJECT LEADER: Brad Heath they needed to do,” Heath PROJECT NAME: Green Manufacturing Initiative says. RoHS, often referred CORE TECHNOLOGIES USED IN PROJECT: to as the lead-free directive, Parts Universe Materials Analysis (PUMA) software datarestricts the use of six subbase from Promiere/Avnet Electronics stances in the manufacture ROI/BUSINESS BENEFIT: Increase in total revenue of various types of electronfrom new customers and from existing customers shiftic and electrical equipment. ing more business to VirTex The directive, adopted in September 2003 by the European Union, officially took effect on July 1, 2006. The directive is often coupled with the EU’s Waste Electrical and Electronic Equipment Directive (WEEE), which sets collection, recycling, and recovery targets for electrical goods and is part of a legislative initiative to deal with toxic waste products. RoHS-type regulations have since taken effect in other parts of the world, including China and California, where the SB 20: Electronic Waste Recycling Act (EWRA) began prohibiting the sale of certain electronic devices as of Jan. 1, 2007. VirTex, whose core competencies are materials procurement and electronic products assembly, took the lead in the lead-free movement on behalf of its customers and its network of partners — including designers, printed circuit board fabricators, cable and wire harness suppliers, metals and plastics fabricators, and component suppliers — by gathering information on when the new regulations would go into effect, who would be affected, and what the rules meant to its corner of the electronics industry. The company also explored what financial impact compliance might have and the possible effects of noncompliance. VirTex’s leadership role, embodied in its Green Manufacturing Initiative, earned it the High Achiever award for Leadership Mastery in Managing Automation’s 2007 Progressive Manufacturing awards competition. Regulatory compliance is now a part of daily life for manufacturers in many industries, with regard to manufacturing processes, financial reporting (Sarbanes-Oxley), and operational and product development record-keeping (FDA 21 CFR Part 11), just to name a few. ma 50 2007

Table of Contents Feed for the Digital Edition of Managing Automation - September 2007

Contents Take 1 Europe’s Automation Chiefs Upbeat on ’08 Business Prospects Vendor Coalition Pushes Human Element of SOA Wireless: Users Still Approaching with Caution One Year Later, IBM Shows Plan for MRO’s Maximo Study: More Work Needed to Lure Next-Gen Talent Executive Q&A Notes Cover Story: 2008 Companies to Watch Special Report: The 2007 Progressive Manufacturing High Achievers Progressive Manufacturer of the Year Business Model Mastery Innovation Mastery Customer Mastery Supply Network Mastery Data & Integration Mastery Education & Training Mastery Operational Excellence Mastery Leadership Mastery Transformation: Orchestrating the Multi-Tier Supply Network Integration: The Timeless Quest for Accurate Data Industries: Maintenance No Longer on Schedule Product Scan Advertiser Index Next

Managing Automation - September 2007

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