Companies are adjusting their manufacturing systems and techniquesto offer higher-quality models and reduce outlay.

Cost and pricing pressures are pushing mainland China and Taiwansuppliers of lever locks to introduce strategic production changes.Most of them are focusing on high-value models to shore up profitmargins and stimulate export growth.

In the mainland, sophisticated yet cost-efficient technologies arebeing adopted as part of the upscale shift. A growing number ofmakers there are penetrating the high-end residential segment tosidestep the price war, which has intensified with the expansion ofthe domestic supplier base. They are targeting North America andthe EU, offering visually appealing designs that provide optimumtheft protection.

One of the techniques gaining popularity among mainland suppliersis metal injection molding. In this forming process, fine metalpowder is combined with binders and transferred into a mold usingstandard plastic-injection machines, which some large companiessource from Japan or Europe.

Suitable for mass production, metal injection molding is beingtapped as a low-cost alternative to traditional machining, castingand stamping. It also allows makers to reuse excess materials andconsequently decrease wastage. Furthermore, parts formed throughthis method can feature complex geometries and are comparable instrength with those made of wrought metal.

To generate R&D savings, mainland suppliers are relying oncomputer-based solutions that help shorten the mold-manufacturingcycle to one day or even a couple of hours.

Among these is rapid prototyping, which creates samples from CADdata, resulting in fewer engineering changes after the mold iscompleted. High-speed cutting machines are being employed as wellto ensure precision and lower defect rates.

As the line is highly labor intensive, the latest production strategies inTaiwan aim to minimize worker-related outlay. Suppliers also hopeto soften the impact of the material cost upswing, which reached 20to 30 percent in past months.

Many companies are establishing factories in the mainland"ssoutheastern coastal provinces to take advantage of lower laborexpenses. Operations focus on the large-volume manufacture ofhome-use models. Some suppliers carry out the majority ofproduction there but retain domestic plants for critical processes.

ISO 9001-certified Je Tien Enterprise Co. Ltd, for example, has amainland facility for semifinished lever locks. But cylindermanufacture, and final assembly and QC are performed in its Taiwanfactory.

Suppliers that continue to produce lever locks in the island arereducing their reliance on manual labor by investing in CNCequipment. Output from these companies primarily consists ofupscale designs for public and business establishments.Concentrating on such applications enables them to escape thefierce price competition in the residential segment and, in turn,gain a differentiation advantage over mainland counterparts.

Steel Mark Enterprise Ltd has been gradually shifting to CNC cutting machines for itscommercial-use lever locks. Piece-by-piece testing is done to checkthe performance and appearance of finished products.

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