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Eastek’s Plan of Action During the Chinese New Year

Eastek International’s Plan of Action during the Chinese New Year 2015

Eastek International is an American owned and operated corporation. We take pride, not only in the quality of productivity and service we bring to each of our clients, but also in the quality care we give to each of our employees both in the United States and internationally. As the U.S. holiday season quickly approaches, everyone understands how important it is to be with family and loved ones. It is also understood that during this time, many companies are closed or running at low capacity. In the same instance, these same traditions and customs are held in high importance for all of our employees at our factory in Dongguan, China during the Chinese New Year.

Why Are Factories Closing?

If you have been an experienced client of ours, or have recently come on board with us, you are or should be aware that during the annual Chinese New Year there are extended factory shutdowns around China that arise because of the work break. Factories shut down during this time so workers can return home. Production comes to a halt.  It is not uncommon for even further delays in the process as some workers do not return to their jobs after the holiday, therefore there is time needed for restaffing purposes. To better illustrate this, it is estimated that 15% to 30%, or roughly 78 million of the migrant labor force, are expected to not return to their factory jobs after CNY 2015. Despite this fact, Eastek is proud to say that for the past 9 years, has had over 99% of employees return after CNY.

Expected Factory Closure/Slowdown Dates

The Chinese government announces the exact days to observe the upcoming national holiday and advises businesses of the specific days that should be given off from work. The 2015 Chinese New Year is on February 19th and the expected official dates of closure are from February 19th through February 25th. Customarily, the actual expected time off for CNY is from February 8th through March 8th— 30 days. The dates Eastek’s factory in Dongguan will be shut down for are from February 14th 2015 through March 1st 2015. From there, the factory will run at 25% capacity on the first week after CNY. Eastek will then run at 50% capacity on the second and third weeks, 90% capacity on the fourth week, and full capacity onward.

How CNY Affects Manufacturing Companies and What Eastek Does to Compensate

A main problem many manufactures face in association with CNY is quality. This is mainly attributed with many skilled managers and workers who may never return after the CNY. Eastek has a strong system in place to keep things running smoothly during the transition. We acquire very firm shipping dates from our Chinese suppliers from any open orders that will ship around CNY. Most Chinese factories are light on the procedural and documented controls that are necessary to ensure production is consistent from shift to shift or when a significant turnover in management takes place. It is very common the critical product knowledge resides only in the minds of the individual managers or workers. Not at Eastek. Our elaborate work instructions, engineering depth, quality management system, and ongoing employee training addresses many of the pitfalls one would find that many low cost country factories are plagued with. Eastek is an exception.

** Information from this article were taken from Intouch Manufacturing Services Avoid CNY Disruption article.**

Recap:

Eastek Dongguan Factory Shutdown Dates:

February 14th 2015 – March 1st 2015.

Capacity:

– Week 1: Will run at 25% capacity.
– Week 2 and 3: Will run at 50% capacity.
– Week 4: Will run at 90% capacity and full capacity onward.

Note:

Eastek has had over 99% of employees from before CNY return after CNY for the past 9 years.

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