Tyco Electronics is a provider of engineered electronic components; network solutions and systems for telecommunications and energy markets; and undersea telecommunication systems worldwide. Tyco Electronics manufactures about 500,000 precision-engineered products and currently operates in approximately 50 countries, with manufacturing facilities in over 25 countries.
The foundation of Tyco Electronics stems from two companies, AMP Inc. and Raychem Corporation. AMP Inc. was established in 1941 by Uncas Whitaker. The company developed a solderless method of attaching electrical terminals to wire; this improved the stability of connections and the efficiency of manufacturing. AMP was the leader of connector industries for over 60 years. They were the lead maker of terminals, connectors and related products. The company first went global when they set up operations in France in 1952 and four years later in Japan. Nearly 40 years later they had annual sales of $5 billion and had expanded to over 50 countries. The Raychem Corporation was founded in 1957. The core of the Raychem Corp. was radiation chemistry technology. The founders of Raychem Corp. combined radiation chemistry technology with their expertise in materials science to develop products such as aircraft wire and heat-shrinkable tubing. Raychem also developed circuit protection products that could automatically reset after circuit faults were cleared.
In 1999, AMP joined Tyco International Ltd. and later that same year Raychem merged with them. These two leading companies came together to help establish Tyco Electronics as we know it. They enabled Tyco Electronics to dramatically expand their portfolio; the company offers a vast selection of products and services and is a leading global provider in the electronics industry today.
Tyco’s mission is to create an advantage for their customers.
Their values embrace:
These values are the basis of which they build the trust and integrity that allows their business to continue to succeed today.
Tyco has established a manufacturing presence in over 25 countries. They operate out of roughly 50 countries and serve customers in more than 150 countries. The company’s global coverage positions them near customers and allows them to help in consolidating their supply base while lowering production costs. In addition, Tyco has set up programs to maintain close working relationships with their key customers.
The company's top competitors are Kyocera Corporation, and Molex Incorporated. Tyco generates more revenue and is significantly larger than both of these competitors. Last year alone in 2008, their net sales were $14.4 billion.
Tyco manufactures a variety of different products but has about three main components. These components are Electronic, Network Solutions, and Undersea Telecommunications.
Tyco Electronics is one of the world’s largest suppliers of passive electronic components. They manufacter materials including: connectors and interconnect systems, relays, switches, circuit protection devices, touchscreens, sensors, and wire and cable. Their products are used primarily in the automotive, computer, communications equipment, industrial machinery, aerospace and defense, household appliance, consumer electronics, commercial equipment, medical and instrumentation markets.
Last year alone, the Electronic Component generated $9.277 billion dollars.
Network Solutions is a global supplier of infrastructure components and systems for the communication service provider, building networks and energy markets. Their products include:
connectors, above- and below-ground enclosures, heat shrink sleeves, cable accessories, surge arrestors, fiber optic cabling, copper cabling and racks for copper and fiber networks.
This segment generated $2.162 billion dollars from net sales in 2008.
Undersea Telecommunications is a world leader in developing, manufacturing, installing and maintaining the world’s most advanced fiber optic undersea networks. Their technology is found in more than 420,000 kilometers or 262,500 miles of undersea cable systems globally. A pioneer in the industry, Tyco has more than 50 years of expertise in route surveying, system design, product development, system deployment, marine services, maintenance and repair.
In 2008, the revenue generated from this component was $1.165 billion dollars.
Notable Historical Fast Facts:
• The Crompton Instrument line of power measurement instrumentation has roots back to 1881, when Crompton & Co. was founded in Chelmsford, Essex, UK.
• Potter & Brumfield relays were created in 1934, when founders Elbert Potter and Richard Brumfield could not purchase a sufficiently reliable product for their needs.
• In 1941, Aircraft-Marine Products, Inc. - later to become AMP Incorporated - was founded based on Uncas A. Whitaker’s solderless crimping technology for terminating wires and connectors.
• The famous Slinky® spring toy, introduced in 1945, was enhanced by adding an AMP electrical splice to mechanically secure the free ends of the coil spring.
• Introduction of electrical terminals in continuous strip form in 1954, paired with automatic crimping machines such as the AMP-O-MATER, allowed users to increase production rates and produce thousands of quality inspected wire terminations per hour.
• In 1964, the age-old art of glass blowing was employed to produce KILOVAC hermetically sealed high-voltage relays for use in defibrillators, space stations and other high-reliability applications.
• Producing some of the first touchscreen devices in the mid 1970’s, the Elographics company (now Tyco Electronics’ Elo TouchSystems brand) developed and patented a resistive touch technology in 1977, versions of which remain popular today.
• In 1984, Precision Interconnect developed coaxial cable nearly as thin as a human hair. This new standard in ultra-miniature coax enabled producing highly flexible 128-conductor ultrasound cable assemblies for use in diagnostic medical equipment.
• Tyco Electronics introduced its new MultiGig RT high density, high-speed connector in 2002 for use in computer, networking, and communications equipment. This innovative approach utilized robust printed circuit board “wafers” to replace conventional pin and socket electrical contacts that could bend during installation. The design also enabled customization of the wafers’ circuit paths to meet customer-specific performance requirements.
• In 2003, Tyco Electronics was the first company to develop a fiber-optic connector with 72 fibers in a single compact housing. This marvel of engineering was not much larger than AMP’s original single-fiber connector, which was introduced in 1975. Ten years before its development, industry engineers deemed it “impossible”.
• In 2006, Elo TouchSystems introduced breakthrough Acoustic Pulse Recognition (APR) touch-screen technology. APR can determine finger or stylus location on a touch screen by recognizing the sound created when glass is touched at a given position.
• In 2007, Tyco Electronics became an independent, publicly traded company whose common stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol “TEL.”
• From 1986 to 2008, Tyco Telecommunications laid enough undersea cable to circle the earth over 10 times – that’s 420,000 km or 262,500 miles of cable. Undersea fiber optic cables form the backbone of the international communications network, enabling the global transfer of data for media such as television, telephone and the Internet.
• We conduct our business through four operating segments:
• Electronic Components is one of the world’s largest suppliers of passive electronic components, including connectors and interconnect systems, relays, switches, sensors and wire and cable. Our products are used primarily in the automotive, computer, communications equipment, industrial machinery, household appliance, consumer electronics, alternative energy, lighting, commercial equipment and instrumentation markets.
• Network Solutions is a global supplier of infrastructure components and systems for the communication service provider, building networks and energy markets. Our products include connectors, above- and below-ground enclosures, heat shrink sleeves, cable accessories, surge arrestors, fiber optic cabling, copper cabling and racks for copper and fiber networks.
• Specialty Products is a leader in providing highly engineered custom solutions, components and connectors for electronic systems, subsystems and devices in the aerospace, defense and marine; medical; touch systems; and circuit protection markets.
• Undersea Telecommunications is a world leader in developing, manufacturing, installing and maintaining the world’s most advanced fiber optic undersea networks. Our technology is found in more than 420,000 kilometers or 262,500 miles of undersea cable systems globally. A pioneer in the industry, we have more than 50 years of expertise in route surveying, system design, product development, system deployment, marine services, maintenance and repair.
Tyco uses a variety of techniques in order to maintain the best supplier quality. Below are just a few of the techniques they use and a brief description of each.
Tyco Electronic Data Warehouse (TED)
TED is used to compile a report card called the Suppliers Score Card.
The score card is divided into 3 separate categories: delivery, quality, and cost.
The areas of delivery and quality each account for 40% of the grade; Cost accounts for the remaining 20% of the grade.
A score greater than or equal to 65% is considered meeting; it is an acceptable score. Any supplier that scores less than 65% must submit an improvement plan.
If a supplier fails 2 consecutive quarters (6 months in a row), Tyco will begin procurement and reduce the number of orders sent to that supplier.
Tyco Electronic Complaint Handling system (TECH)
The TECH system uses a format called eight disciplines (8D). 8D is a problem solving technique. Below are the 8 disciplines:
Discipline 1 - Organize and Plan
Discipline 2 - Describe Problem
Discipline 3 - Contain Problem
Discipline 4 - Verify Root Cause
Discipline 5 - Develop Corrective Action Plan
Discipline 6 - Implement Corrective Action
Discipline 7 - Prevent Recurrence
Discipline 8 - Communicate Success
When the 8Ds are received by the Supplier Quality Manager, the manager reviews the 8Ds at crucial points. After the 5th step it will be reviewed for acceptance. It will be reviewed once again after the 8th step is received. If the answers are considered to be unacceptable, they will meet with the supplier to get approved responses to the action.
The Six Sigma system is used by Tyco to improve their suppliers' quality.
The Six Sigma method Tyco uses is referred to as DMAIC. DMAIC is a five step process and stands for define, measure, analyze, improve, and control.
- Define - define the problem and project goals
- Measure - measure the inputs and outputs, collect data
- Analyze - analyze the data, determine cause-and-effect relationships
- Improve - implement improvements
- Control - implement inspections, ensure everything is functioning properly and project goals have been met
Examples of some Six Sigma techniques Tyco uses:
- Radar Charts for process improvements
- Box Plots
- Statistical Process Control (SPC)
- Capability Studies
- Multivariable Analysis
- Error Proofing
- Confidence Intervals
- Hypothesis Testing
- Correlation and Regression
- Design of Experiment
- Multiple Regression
- Logic Regression