Wiring Harness News Interview
March/April 2006
RAM Electronics
By Fred Noer
Diversity and technology
By Fred Noer
Diversity and technology
During the last 10 years these two characteristics have become more and more common to growing, profitable mid-sized wiring harness and cable assembly manufacturers. The traits complement the timeless standards of quality, delivery, price and service. Both diversity and technology predominate at RAM Electronics in Pennsauken, N.].,a city of approximately 35,000 across the Delaware River from Philadelphia, Pa. Having the capabilities to make diverse products and using technology effectively have led to 10-15 percent annual growth of this company that had $10 million in sales last year.
"There's no single industry we can point to as one major customer" said Ted Misbin, 76, company president who founded RAM in 1977. "If we can cut, strip or terminate it, we can do it. We rarely walk away from a job. Diversity has separated us from our competitors." With a broad base of smaller companies with OEM products, as many as 25 part numbers may be produced for one firm. "We've never aimed at companies with high-volume products for general consumers;' Misbin said. "A number of companies lived off customers with large volumes but ended up closing their doors when the big companies got in trouble."
[Harnesses and cables comprise 75 percent of RAM's business. Pictured
above is one of the many back panel harnesses produced by RAM.]
RAM has 200 active customers, some with the company since it began. Most of them are vending machine, gaming and medical equipment companies in states along the Atlantic Ocean from Connecticut to Florida and east of the Mississippi River. For example, RAM makes products for beverage and candy vending machines, casino slot machines and equipment that does heart rate and neonatal monitoring. Electric motor, marine control and process control manufacturers also use RAM products.
Production, all of it custom products, breaks down into 50 percent harnesses, 30 percent cable assemblies and 20 percent flat cables. The simplest product is a wire with a termination on each end, and the most complex is one with 600 wires. Item costs range from 25 cents to $2,500. Quantities are between 25 and 25,000. Harnesses and cables comprise 75 percent of RAM's business. The other 25 percent is e-commerce distribution of imported connectivity audio and video products, a venture begun three years ago. Sold through RAM's Web site, the cables, switches, processors, interfaces, adaptors and converters are used for a broad range of home and business applications such as TVs, speakers, home theater, recording studios and computers. "The distribution business has been a nice add-on," said Steve Misbin, 46, Ted's son and vice president of sales and marketing. "There were a number of people at the company with a strong interest in audio video. We understand the wire, cable and connector marketplaces, so we integrated the manufacturing and procurement sides of our business."
[Cutting, stripping and terminating equipment with the latest technology is used by RAM's highly skilled workforce.]
RAM's e-commerce illustrates how the Misbins have embraced technology. It is very much evident on the production side. "We've done a lot computerization so we can do can do 100 percent testing of everything we ship," Ted said. "We plan to have one test station in each of the nine manufacturing groups, and all of them will be connected with an intranet. That way more than one group can work on the same part at the same time." Ted explained the system was designed in-house (including software writing) beginning in late November 2Q05.Two stations were functioning in January, and the rest should be in place by mid-year. Each station has a touch-screen panel for logging in and out of a job when it is begun and finished. "It has the effect of a gross time study,"Ted said. "With time studies we can do a better job and give customers our best price so they are
not scared offshore."
The equipment includes Amp, Komax, Schleuniger and Eubanks wire and cable processing machines, Panduit tie-wrap machines; and Amp MTA, MTE, MT and Micro Match machines. The bench terminating machines consist of Amp, Molex, JST, Elco, ETC and Berg. "The new and digital equipment is enticing, but the faster equipment does not buy us much because we don't do a lot of long runs." Ted said. "The problem we have is set-up time because we're changing set-ups many times in a day. We only gain on set-up time."
According to Steve, the extensive standard and custom-made equipment and tooling line-up,built over 25 years,is an important strength. "It's one of our biggest advantages in servicing customers because we can give them better quality and price;' he said. "Equipment and tooling have"been an obstacle to many companies but not us. "Aspart of our core philosophy 'we believe in better processes and equipment," Steve said. "If a better tool is made, we want it so we are able to use the right tool for the right part for the best quality."
[Each manufacturing group at RAM has test stations witt'! a touch-screen panel for log~ing in and out of a job when it is begun and finished.]
All the technology, equipment, processes and methods point to one overriding goal of excellent customer service, Steve emphasized. "If you take care of the customer, business will follow," he said."We are more of a service business than a high-technology business. "Customers know when they call that if it can be done, we can do it." Steve said."We are more agile than many of our competitors. We have a highly skilled, responsive workforce, and we have the flexibility. If we can get the material,we can get any job done.we are large enough to do almost any project but small.enough to turn around fast."
[Staff members at RAM receive constant training. The IPCIWHMA A-620 Standards are used.]
As Steve stressed, quick turnaround depends on obtaining materials, and he noted this company has "great relationships with our suppliers.We have a very experienced purchasing department, and in the past 25 years we have come to know about every wire and connector manufacturer and distributor, We count on our sources for the best product, on time and at the best price." RAM is staffed by 120 people, a number that has been stable the last two years.Mostof them (90) work in production, and the rest are in engineering (5), quality control (10),purchasing (2), shipping and receiving (5) and administration and office (3). "Most of them have been with us from five to 25 years" Ted said."We have low turnover, and that's because we respect everyone who works for us." Steve added, "The longevity of the people and what they know are criticai to taking care of customers. We have a friendly atmosphere, and there are no personality conflicts. Our people are what drives our business." Staff members receive constant training, and they have opportunities to take work-related classes at Camden (N.J.) Community College that are paid by RAM.Compensation consists of the standard wages 'and benefits as well as merit increases and annual performance bonuses.
Quality is monitored by in-process and final inspections. The IPC-WHMAA-620 standards are used. Meeting quality goals is made easier by a document package for each job that remains with it until completion. The package consists of explanations and photographs how materials are cut and assembled. Revisions are Included, too.
[RAM Electronics does 100% testing of everything they ship. Meeting quality goals is made easier by a document package for each job that remains with it until completion.]
ISO certification was considered but not obtained, according to Ted. An audit of jobs revealed customers requesting ISO-level manufacturing did not generate enough business to justify the ISO certification expense. "It's very rare we get anything back" Ted said. "We meet or exceed the quality requirements of our customers." Such a statement reflects well on production' in addition to the engineering department. No product design is done, but the staff does offer suggestions about how to improve products. The department primarily focuses on assembly procedures and fixtures. The department is headed by Ted, who has degrees in mechanical and electrical engineering. He put his knowledge and experience to use at such large corporations as Burroughs, Univac and RCA and independent ventures with friends before the 1977 start-up of RAM in the back of a friend's machine shop in Cherry Hill, NJ. "New Jersey had agood base of electronics and telecommunications companies and a lot of manufacturing," Steve said. "Making printed-circuit boards was big, but Dad realized there was a need for a high-quality, responsive contract manufacturer of harnesses and assemblies. Dad had a lot of relationships from being an engineer, so everything evolved."
From the first location a move was made to a larger facility with 2,000 square feet in a multi-tenant building in Cherry Hill. The company next moved to Pennsauken to a 3,500- square-foot building. That was followed by a five-year stay in a 10,000 square-foot facility before moving 15 years ago to the current location, which has 20,000 square feet.In August the Misbins either will renew their lease or buy the property. It is two acres and has room for expansion. Obviously,to a certain extent growth will depend on how RAM fares against its competition, which includes offshore companies. "The challenges overseas are brutal,so we have to react better," Steve said. "We must be as good as we possibly can be and provide a high level of customer service. "We're in a very strong position with our diversity and flexibility," Steve said."Acustomer may be able to buy 5,000 pieces overseas cheaper, but our product delivery is two weeks versus 6-8 weeks. Not every customer is able to do long-term planning." To take advantage of opportunities, RAM has partnered with overseas companies to provide products for RAM customers. Although the Misbins said offshore product quality is good, RAM offers testing, inspecting and customizing of offshore products.
The sales and marketing of RAM products and services are done by the Misbins and groups of manufacturers representatives. The Misbins handle the local accounts, while the groups, some with up to six reps, handle customers outside the immediate area. "Forecasting sales sometimes is hard because of the way companies move and get acquired,"Ted said. "Some of the new owners are not interested in working with you, so you must be out there aggressively looking and having the right pricing and delivery."
Despite some of the difficulties, Ted is pleased with his work. "I really like what I do. For 25 years it's always been good to come to work." he said. "I'm most proud of being able to make it grow and working with people." Steve, who has a bachelor's degree in business administration, spent 18 months at a financial services company in the early 1980s before beginning his career at RAM. "Every day is an adventure here." he said. "I enjoy the diversity and variety,and I'm proud of providing a good place for people to come to work."
For more information about RAM Electronics, call 856-864-0999,
fax 856-786-2244
email oem@ramelectronics.net, or visit the Website
www.ramoem.com
"There's no single industry we can point to as one major customer" said Ted Misbin, 76, company president who founded RAM in 1977. "If we can cut, strip or terminate it, we can do it. We rarely walk away from a job. Diversity has separated us from our competitors." With a broad base of smaller companies with OEM products, as many as 25 part numbers may be produced for one firm. "We've never aimed at companies with high-volume products for general consumers;' Misbin said. "A number of companies lived off customers with large volumes but ended up closing their doors when the big companies got in trouble."
[Harnesses and cables comprise 75 percent of RAM's business. Pictured
above is one of the many back panel harnesses produced by RAM.]
RAM has 200 active customers, some with the company since it began. Most of them are vending machine, gaming and medical equipment companies in states along the Atlantic Ocean from Connecticut to Florida and east of the Mississippi River. For example, RAM makes products for beverage and candy vending machines, casino slot machines and equipment that does heart rate and neonatal monitoring. Electric motor, marine control and process control manufacturers also use RAM products.
Production, all of it custom products, breaks down into 50 percent harnesses, 30 percent cable assemblies and 20 percent flat cables. The simplest product is a wire with a termination on each end, and the most complex is one with 600 wires. Item costs range from 25 cents to $2,500. Quantities are between 25 and 25,000. Harnesses and cables comprise 75 percent of RAM's business. The other 25 percent is e-commerce distribution of imported connectivity audio and video products, a venture begun three years ago. Sold through RAM's Web site, the cables, switches, processors, interfaces, adaptors and converters are used for a broad range of home and business applications such as TVs, speakers, home theater, recording studios and computers. "The distribution business has been a nice add-on," said Steve Misbin, 46, Ted's son and vice president of sales and marketing. "There were a number of people at the company with a strong interest in audio video. We understand the wire, cable and connector marketplaces, so we integrated the manufacturing and procurement sides of our business."
[Cutting, stripping and terminating equipment with the latest technology is used by RAM's highly skilled workforce.]
RAM's e-commerce illustrates how the Misbins have embraced technology. It is very much evident on the production side. "We've done a lot computerization so we can do can do 100 percent testing of everything we ship," Ted said. "We plan to have one test station in each of the nine manufacturing groups, and all of them will be connected with an intranet. That way more than one group can work on the same part at the same time." Ted explained the system was designed in-house (including software writing) beginning in late November 2Q05.Two stations were functioning in January, and the rest should be in place by mid-year. Each station has a touch-screen panel for logging in and out of a job when it is begun and finished. "It has the effect of a gross time study,"Ted said. "With time studies we can do a better job and give customers our best price so they are
not scared offshore."
The equipment includes Amp, Komax, Schleuniger and Eubanks wire and cable processing machines, Panduit tie-wrap machines; and Amp MTA, MTE, MT and Micro Match machines. The bench terminating machines consist of Amp, Molex, JST, Elco, ETC and Berg. "The new and digital equipment is enticing, but the faster equipment does not buy us much because we don't do a lot of long runs." Ted said. "The problem we have is set-up time because we're changing set-ups many times in a day. We only gain on set-up time."
According to Steve, the extensive standard and custom-made equipment and tooling line-up,built over 25 years,is an important strength. "It's one of our biggest advantages in servicing customers because we can give them better quality and price;' he said. "Equipment and tooling have"been an obstacle to many companies but not us. "Aspart of our core philosophy 'we believe in better processes and equipment," Steve said. "If a better tool is made, we want it so we are able to use the right tool for the right part for the best quality."
[Each manufacturing group at RAM has test stations witt'! a touch-screen panel for log~ing in and out of a job when it is begun and finished.]
All the technology, equipment, processes and methods point to one overriding goal of excellent customer service, Steve emphasized. "If you take care of the customer, business will follow," he said."We are more of a service business than a high-technology business. "Customers know when they call that if it can be done, we can do it." Steve said."We are more agile than many of our competitors. We have a highly skilled, responsive workforce, and we have the flexibility. If we can get the material,we can get any job done.we are large enough to do almost any project but small.enough to turn around fast."
[Staff members at RAM receive constant training. The IPCIWHMA A-620 Standards are used.]
As Steve stressed, quick turnaround depends on obtaining materials, and he noted this company has "great relationships with our suppliers.We have a very experienced purchasing department, and in the past 25 years we have come to know about every wire and connector manufacturer and distributor, We count on our sources for the best product, on time and at the best price." RAM is staffed by 120 people, a number that has been stable the last two years.Mostof them (90) work in production, and the rest are in engineering (5), quality control (10),purchasing (2), shipping and receiving (5) and administration and office (3). "Most of them have been with us from five to 25 years" Ted said."We have low turnover, and that's because we respect everyone who works for us." Steve added, "The longevity of the people and what they know are criticai to taking care of customers. We have a friendly atmosphere, and there are no personality conflicts. Our people are what drives our business." Staff members receive constant training, and they have opportunities to take work-related classes at Camden (N.J.) Community College that are paid by RAM.Compensation consists of the standard wages 'and benefits as well as merit increases and annual performance bonuses.
Quality is monitored by in-process and final inspections. The IPC-WHMAA-620 standards are used. Meeting quality goals is made easier by a document package for each job that remains with it until completion. The package consists of explanations and photographs how materials are cut and assembled. Revisions are Included, too.
[RAM Electronics does 100% testing of everything they ship. Meeting quality goals is made easier by a document package for each job that remains with it until completion.]
ISO certification was considered but not obtained, according to Ted. An audit of jobs revealed customers requesting ISO-level manufacturing did not generate enough business to justify the ISO certification expense. "It's very rare we get anything back" Ted said. "We meet or exceed the quality requirements of our customers." Such a statement reflects well on production' in addition to the engineering department. No product design is done, but the staff does offer suggestions about how to improve products. The department primarily focuses on assembly procedures and fixtures. The department is headed by Ted, who has degrees in mechanical and electrical engineering. He put his knowledge and experience to use at such large corporations as Burroughs, Univac and RCA and independent ventures with friends before the 1977 start-up of RAM in the back of a friend's machine shop in Cherry Hill, NJ. "New Jersey had agood base of electronics and telecommunications companies and a lot of manufacturing," Steve said. "Making printed-circuit boards was big, but Dad realized there was a need for a high-quality, responsive contract manufacturer of harnesses and assemblies. Dad had a lot of relationships from being an engineer, so everything evolved."
From the first location a move was made to a larger facility with 2,000 square feet in a multi-tenant building in Cherry Hill. The company next moved to Pennsauken to a 3,500- square-foot building. That was followed by a five-year stay in a 10,000 square-foot facility before moving 15 years ago to the current location, which has 20,000 square feet.In August the Misbins either will renew their lease or buy the property. It is two acres and has room for expansion. Obviously,to a certain extent growth will depend on how RAM fares against its competition, which includes offshore companies. "The challenges overseas are brutal,so we have to react better," Steve said. "We must be as good as we possibly can be and provide a high level of customer service. "We're in a very strong position with our diversity and flexibility," Steve said."Acustomer may be able to buy 5,000 pieces overseas cheaper, but our product delivery is two weeks versus 6-8 weeks. Not every customer is able to do long-term planning." To take advantage of opportunities, RAM has partnered with overseas companies to provide products for RAM customers. Although the Misbins said offshore product quality is good, RAM offers testing, inspecting and customizing of offshore products.
The sales and marketing of RAM products and services are done by the Misbins and groups of manufacturers representatives. The Misbins handle the local accounts, while the groups, some with up to six reps, handle customers outside the immediate area. "Forecasting sales sometimes is hard because of the way companies move and get acquired,"Ted said. "Some of the new owners are not interested in working with you, so you must be out there aggressively looking and having the right pricing and delivery."
Despite some of the difficulties, Ted is pleased with his work. "I really like what I do. For 25 years it's always been good to come to work." he said. "I'm most proud of being able to make it grow and working with people." Steve, who has a bachelor's degree in business administration, spent 18 months at a financial services company in the early 1980s before beginning his career at RAM. "Every day is an adventure here." he said. "I enjoy the diversity and variety,and I'm proud of providing a good place for people to come to work."
For more information about RAM Electronics, call 856-864-0999,
fax 856-786-2244
email oem@ramelectronics.net, or visit the Website
www.ramoem.com