Production Control

Flowchart

1 Where is Comtronic Located?
2 How far is Honduras from the United States?
3 What is the official language in Honduras, how do I communicate with people you?
4 What about ISO-9000 Certification, is Comtronic an ISO-9000 Certified Company?
5 What kind of Company is Comtronic?
6 When was Comtronic established?
7 What are the main products manufactured by Comtronic?
8 What is the manufacturing floor space at Comtronic?
9 How much does it cost to make a part in Comtronic?
10 How could I know how much a part will cost me at Comtronic?
11 Does Comtronic´s price include transportation?
12 How do I ship raw materials to Comtronic?
13 Is it safe to transport raw material to Honduras?
14 What do I do if I need to rush a package to Honduras?
15 Could I arrange drop shipments to and from Comtronic if necessary?
16 Is Comtronic a Free Zone Manufacturing Location (Zona Libre)?
17 What about Customs in Honduras, is it a problem to import or export raw materials?
18 How do I transport my products to the United States or other countries?
19 How much do I have to pay for transportation to the US?
20 Do I have to pay any Duties when importing finished parts from Honduras?
21 What is the Caribbean Basin Initiative Treaty (CBI) or Central American Free Trade Agreement CAFTA?
22 Who will be responsible for Custom Brokerage fees once the products get to the US?
23 If I decide to contract labor, do I have to purchase and supply raw material to Comtronic?
24 What if I want Turnkey prices for any of my parts?
25 How do I know my raw materials are safe and controlled once they get to Comtronic?
26 How are processes controlled in manufacturing?
27 Are there any Data collected, filed and available for customer reference?
28 How do I communicate with Comtronic if I decide to start production in Honduras?
29 What about small production runs or prototyping. Is Comtronic willing to work with me in product development?
30 Do I have to provide Comtronic with equipment, tooling and fixtures in the even we start a production contract?
31 How do I know my equipment is safe in Honduras?
32 Is there a Manufacturing Agreement to sign to protect both parties?
33 What are typical aspects covered in a Manufacturing Agreement?
34 What about training, how to get the know-how and get started with production in Honduras?
35 What about respect for workers Human Rights and Well Being?
36 Are employees motivated in Comtronic?
37 Can I obtain references from Comtronic's present customers?

 


1) Where is Comtronic Located?
Comtronic is located in Tegucigalpa, the capital city of Honduras. Central America.
Honduran time is same as US Central. Our Mailing address is:
Duty Free Zone (ZOLI) Comtronic
Altos de San José
Tegucigalpa, Honduras
Tel (504) 245-4212

 

 

 

 

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2) How far is Honduras from the United States?
By air: 2 hours direct flight daily to and from Honduras to Miami, Florida, Atlanta, Georgia or Houston, Texas (American Airlines, Continental Airlines, Delta airlines, TACA airlines). Also via one conexion to Los Angeles, San Francisco, Dallas, New York, Chicago.
By ocean: 5 days cargo vessel trip between Miami, Florida or Houston, Texas and Honduras.

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3) What is the official language in Honduras, how do I communicate with you ?
The official language in Honduras is Spanish, however and due to the export nature of our business, all our executives, engineers and technicians are bilingual (Spanish-English), therefore, there would be no problem communicating with people in Comtronic. There are also plenty of people in Honduras who speaks English as a second language particularly due to the tourist side of the economy and the significant number of US off-shore manufacturing businesses and exports developed in the last 10 years in the Republic of Honduras.

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4) What about ISO-9000 Certification, is Comtronic an ISO-9000 Certified Company?
Yes, Comtronic was orginally certified in 1999 via Perry Johnson Registrars, Michigan. Comtronic is currenly certified ISO-9000:2008 and audited regularly by Incontec International.

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5) What kind of Company is Comtronic?
Comtronic is a Maquiladora type Manufacturing Company which means that we manufacture off-shore for US and other countries’ customers requiring contracted labor at a much lower cost than the counterpart in the United States and other countries in the area.

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6) When was Comtronic established?
Comtronic was established in 1990 by two British expatriates that together decided to start the first electronic assembly factory in Honduras. Today, Comtronic is recognized in Honduras as the leader in electronic components manufacturing by the National Association of Maquiladoras of Honduras.

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7) What are the main products manufactured by Comtronic?
Today Comtronic manufactures mainly Magnetic Components: Inductors and Transformers for a large distributor in the US. We are currently expanding our line of products to several kind of electronics assemblies, PCB stuffing, Solenoids, electromechanical components, wire harnesses, battery packs and others in the electronic field.

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8) What is the manufacturing floor space at Comtronic?
We have around 46,000 SFT of floor space available. More space could be easily arranged if required by new customers.

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9) How much does it cost to make a part in Comtronic?
The hour of labor at Comtronic is between US$3.50 to US $ 4.00. This labor cost per hour of manufacturing is a fully loaded cost, which means it includes all overhead, administrative cost and profit.

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10) How could I know how much a part will cost me at Comtronic?
Simply all you have to do is to find out what is the Manufacturing Labor Standard Time in hours (LSTD or cycle time) of the part you desire to manufacture. Example: if the LSTD of a part is 5 min then we divide that over 60 to get the hours, this comes to 5/60= 0.083 hrs then multiply that by the hourly rate 4: 0.083 x 4 = 0.33. The part price is US $ 0.33 each.

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11) Does Comtronic´s price include transportation?
No, Comtronic´s price is FOB factory, then our client will have to pay transportation to a final destination, however, we do pay for all importation and exportation brokerage fees.

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12) How do I ship raw materials to Comtronic?
To send raw materials to Comtronic, we consolidate with our freight forwarders in Miami who ship via air or ocean freight on a weekly or daily basis. Air transportation from Miami takes around 2 working days and ocean transportation takes around 5 working days.

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13) Is it safe to transport raw material to Honduras?
Yes, it is safe to transport raw materials to Honduras. All major ocean cargo providers have itineraries covering the port of Puerto Cortes in Honduras, the largest and best-suited ocean port in Central America. Vessel Itineraries are set on a weekly basis and air transportation is also available with the safe frequency from Florida West Cargo, Amerijet, American Airlines Cargo UPS-SCS and TACA Cargo.

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14) What do I do if I need to rush a package to Honduras?
There are different courier companies available: DHL, UPS, FED EX, TNT and express packages arranged through the Airlines. Most can transport from the Domestic US to Honduras in 3 working days door-to door.

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15) Could I arrange drop shipments to and from Comtronic if necessary?
Yes, we receive most raw materials drop-shipped directly from the suppliers from anywhere in the US, Taiwan, China, Japan and other countries. We could also drop-ship finished parts anywhere in the world as we currently do with some of our clients.

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16) Is Comtronic a Free Zone Manufacturing Location (Zona Libre)?
Yes, Comtronic is a Free Zone manufacturing location, which means that all raw materials and finished parts imported and exported are DUTY FREE. This also means that we have a full time Custom Supervisor in the premises, which guarantee expeditious Custom clearance operations done in-house.

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17) What about Customs in Honduras, is it a problem to import or export raw materials?
Customs in Honduras is not a problem. All Custom importation and exportations are handled expeditiously by Comtronic.

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18) How do I transport my products to the United States or other countries?
Comtronic has a group of experienced brokers to arrange transportation of all finished parts to the United States and other countries. We know these brokers for years and we have used them since the company started operations in 1990. Transportation is normally done via air through American Airlines. This of course could change depending on the products to be transported.

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19) How much do I have to pay for transportation to the US?
We have negotiated a price with American Airlines in the route from Tegucigalpa, Honduras to Miami, Florida at US $ 0.49 per Kilogram. Our shipment goes out every day in the morning an arrives in Miami at 5:50 PM EST.

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20) Do I have to pay any Duties when importing finished parts from Honduras?
No, You don't have to pay duties when importing finished parts from any country who is a participant in CAFTA such as Honduras, however, you may need to use a certified U.S. Custom Broker during the importation process in the U.S.A.

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21) What is the Caribbean Basin Initiative Treaty (CBI) and Central American Free Trade Agreement (CAFTA)?
Both are treaties established by the United States government and Central American nations through which any products or parts produced or manufactured in these countries will be granted with certain privileges from the US Government including primarily DUTY FREE for importation of such items.

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22) Who will be responsible for Custom Brokerage fees once the products get to the US?
The customer is responsible. As indicated Comtronic price is FOB factory.

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23) If I decide to contract labor, do I have to purchase and supply raw material to Comtronic?
Although we have found it practical for Comtronic to receive raw materials already purchased directly for our customer and then transported to Honduras (raw material consignment), we also realize that purchasing raw materials it takes away time and resources from our clients, therefore, Comtronic will gladly accept Turn-Key business as a way to facilitate the process of acquiring materials through our qualified buyers in our Materials Department, however, Turn-key prices will be higher since we have to include purchasing expenses and other administrative cost associated with acquiring raw materials.

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24) What if I want Turnkey prices for any of my parts?
We will be glad to quote Turnkey prices if you send us drawings, specifications of the part(s) and a Bill of Materials with information of approved suppliers. A sample of the part is also very helpful. We could also research for alternate suppliers and submit them for your approval in our combined efforts to reduce cost. Samples could be prototyped to support the product development process free of charge.

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25) How do I know my raw materials are safe and controlled once they get to Comtronic?
Comtronic has a group of experienced materials people. We receive the raw materials in our enclosed stockroom where it is then located in proper areas according to our MRP system in place. The MRP system controls all in and out inventory transactions as well as inventory accuracy and help in distributing the raw material to the floor where is also accounted for as WIP. Once we convert raw materials in the process into finished parts, these are evaluated by our Quality Department and then certified for shipment. All transactions from start to finish are properly registered with our MRP System as well as our internal documented system for future references. Customer consigned raw materials are also insured against all risk with the customer as the beneficiary.

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26) How are processes controlled in manufacturing?
Comtronic follows strictly manufacturing processes and/or instructions (Standard Operating Procedures) supplied by our clients. Manufacturing Method Sheets translated to Spanish are the most common mean to define and control processes in production. In addition to following procedures, there is a qualified group of QA process auditors that monitor production in a continous basis to ensure adherence to customer specifications. Statistical Process Control (SPC) is also an important tool in manufacturing and Quality Assurance used at Comtronic.

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27) Are there any Data collected, filed and available for customer reference?
Yes, Comtronic collects Data for process control, improvement and research and can supply customers with these data at any time.

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28) How do I communicate with Comtronic if I decide to start production in Honduras?
There are several ways to communicate: the most practical one is via e-mail, this is today the most efficient way to send drawings and specification between us and our current clients. Of course information can be send via FAX and there are 10 phone lines available for prompt communication as well. To contact us via phone or fax and if you are in the US you would have to dial 011-504-245-4212 or fax at 011-504-245-4220. We have a Virtual Private Network (VPN) currently available with our main customer for EDI operations and could install new customer under similar telecommunications infrastructure.

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29) What about small production runs or prototyping. Is Comtronic willing to work with me in product development?
Yes, we realize how important it is for our customers when they launch a new product or there is not big demand, to have the support in producing small runs and prototyping, therefore, we will be more than happy to assist our client in this kind of conditions and will gladly help in experimenting and estimating time standards at customer’s request.

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30) Do I have to provide Comtronic with equipment, tooling and fixtures in the even we start a production contract?
Comtronic’s policy has been to own its equipment. Today we have ownership of about 92% of our total equipment inventory, however, how much equipment we are willing or capable to purchase for new customers will reasonably depend on the quantities, investments and extend of the businesses contracted. In some cases it is preferable to receive some specialized equipment from the customer in consignment while the business is starting and then consider purchasing when both parties deem adequate. As for tooling and fixtures, Comtronic has a machine shop to fabricate fixtures and would be glad to assist in fixturing any production line. Should you have any intricate fixturing work to do we may ask the customer to supply it.

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31) How do I know my equipment is safe in Honduras?
We insure all our equipment. We do business with the largest Honduras Insurance company and this company itself is re-insured by Lloyds Insurance Company of London. It is in our best interest to ensure the assets we have and we stand responsible for them.

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32) Is there a Manufacturing Agreement to sign to protect both parties?
Some of our customers require that we sign a Manufacturing Agreement to protect their interest and ours. We would like to leave that at our customer discretion. If you so desire, we should pose no objections in signing a Manufacturing Agreement with you.

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33) What are typical aspects covered in a Manufacturing Agreement?
Price of labor: approximate volumes of production, our on-time delivery obligations, Product Quality Obligations with you, our Quality Inspection Methodology, our obligation to adhere to your specifications either in process as well as for finished product inspection, intellectual property and non-disclosure agreements, special rates for special conditions, customer supplied equipment responsibilities acquired by Comtronic if applies, Training Agreements when apply, raw material and finished parts transportation agreement and safeguard responsibilities with the customer when applies and others.

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34) What about training, how to get the know-how and get started with production in Honduras?
Comtronic realizes that new product introduction normally requires training, this is a very important part in the success of any new production we contract, therefore, our policy is to send engineers or technicians or both to any location so that they receive initial training from our clients and then transfer that knowledge over the rest of the team members to start new productions. For initial training at a customer site , traveling arrangements and expenses will be gladly covered by Comtronic.

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35) What about respect for workers Human Rights and Well Being?
Comtronic believes strongly in respect as the foundation of our working society. We are constantly reviewing how employees are being treated, supervised, motivated and supported in their efforts to generate work and progress for the company, themselves and the society. We have passed with excellent grading the semi-annual Human Rights and Well Being Test performed by the Ministry of Labor of Honduras. The reviews of the test indicate that Comtronic is in fact one of the best working places in the city of Tegucigalpa. We feel honored by these results.

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36) Are employees motivated in Comtronic?
Yes, we feel they are. Motivation is a driving source of energy that plays an important role in Comtronic. Our employees are participating in a regular basis in motivational activities of different kinds. As part of our Educational Scholarship Program we also grant awards to those employees showing outstanding achievements. For Healthcare we have a clinic on the premises that provides, free of charge, medical attention and follow-up for all employees and dependents besides the Honduran Institute of Social Security.

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37) Can I obtain references from Comtronic’s present customers?
Yes, we would be pleased to provide contact information for serious inquiries.

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