Unipoint Electric Manufacturing Co. was established in 1972 to make electrical auto parts, and over the years has developed a comprehensive line of high-quality auto air-conditioning system parts and wiper products. In recent years it has joined the prestigious ranks of makers with ISO9001 and QS9000 certification.

Unipoint claims that it is the world's biggest producer of aftermarket alternators and starter motors (and their parts). These products fit engines for almost all major Japanese, American, and European cars, trucks, and buses, as well as engines for boats, agricultural-use machines, and other machinery.

Its already comprehensive range will grow markedly again this year, as Unipoint now develops over 150 new alternators and starters annually at a cost in excess of NT$100 million (US$2.9 million at NT$34.8:US$1). Today the company offers more than 780 models of starters and alternators, along with over 3,000 parts items. A company official claims that all of these products have quality commensurate with original equipment (OE) products, meaning that all specifications, functions, durability, etc., parallel those of the OE parts used by automakers.

The company's export market structure reflects this quality. About 40% of all production, including parts as well as finished products, goes to North America, 30% goes to Europe, and the remaining 30% is shipped to other markets around the world.

"One of the key factors in our superior quality--the best in the aftermarket--is our production in-house of over 90% of the parts and components for our alternators and starter motors," comments Adam Wang, a Unipoint sales director. "Another factor is the unmatched development capability provided by our 60-member development team (out of a total of 430 employees at the company's Taiwan plant).

In-House Production

Wang states that among the key parts it makes in-house for its alternators and starters are solenoid switches, starter-drive gears, brush holders and armatures, stators, rotors for starter motors, voltage regulators, and rectifiers. Few companies in the line have such integrated production of both parts and finished products. This level of integration provides close to 100% in-house quality control. In developing these products, Unipoint's R&D workers have access to the same computer-aided design/manufacturing (CAD/CAM) software as the leading automakers do.

"In the global aftermarket," Wang comments, "the bigger a company is--meaning the more items it supplies--the stronger its competitiveness. The advantage that we have in Taiwan is our efficient small-batch, large-variety model of production, which allows us to compete with low-cost, large-volume competitors in other countries."

After gaining a firm foothold in the international alternator and starter market, Unipoint diversified into wiper blades in the early 1990s and then into air-conditioner parts (including fan/blower motors, fan assemblies, accumulators/receiver dryers, relays, and pressure switches).

"Each of our steps toward diversification has been relatively conservative, with maintenance of operations stability stressed," states Michael Lin, another of the company's sales directors. "The decisions were made only after intensive evaluation and what was determined to be 100% assurance of success."

Those decisions seem to have been the right ones. Air-conditioning parts have become the fastest-growing line for Unipoint in recent years, partly because of its newness but also, and more importantly, because of the company's use of established resources to build up a comprehensive model array featuring the highest quality.

Another Success

The foray into wiper blades has also been successful. Lin claims that this success is due to the fact that the company decided to escape price competition in the low- and mid-range by targeting only the highest-quality items for production. Now, Lin says, "Even Bosch of Germany has given our wiper blades a grade-A certification. It hasn't given us any orders, though--yet." Unipoint is currently a major supplier to the largest wiper-blade brand in the U.S. aftermarket, and ships over 15 million pairs to customers all over the world every year.

Lin explains that Unipoint brought in key technology for its wiper-blade production from Japan, and uses only imported materials from industrially advanced countries. It also works to ensure quality and durability by investing heavily in the improvement of its frame structures and the formulas utilized in its rubber.

The director also says that each lot of raw materials is checked in a computerized foam rheometer before molding, all mixed rubber is handled under computer control, and precision-rolling machines control the thickness of rubber sheets. The wiper frames are made of heavy-duty galvanized steel to maximize durability and a more balanced wiping force. The stainless-steel rivets which join the frames assure optimal movement of joints, and thus better wiping quality. Computerized automatic powder-painting machines ensure that the paint can withstand 240 continuous hours of spray testing.

The company uses a well-structured division of labor between Taiwan and mainland China, with a plant in northern Taiwan and another in Shenzhen, Guangdong Province. The Taiwan plant turns out complete alternators and starter motors, while the mainland plant, with 830 employees, produces wiper blades and air-conditioning parts.

Unipoint is in a traditional industry, but it uses advanced high-tech production facilities. It currently operates four surface-mount-technology (SMT) production lines, and is the only producer of its kind to install an aerospace-grade automated storage and retrieval system (ASRS), designed by Fuji Heavy Industries of Japan, for warehouse-materials management. Lin reports that this system can cover about 40,000 storage locations and storage space equivalent to about 31,000 square meters. Although expensive, this system helps Unipoint cut costs, achieve punctual delivery, improve product quality and manufacturing efficiency, and control inventory more effectively.