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Posted by nkkhoo on 21st April, 2013
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The rework for 5 million poor quality iPhones will cost Foxconn RMB 1.0 to 1.6 billion.
The QC department in Foxconn used to be very powerful to stop bad quality products from shipping out. The QC system is loosen up after many production workers committed suicide for unable to meet quality and workmanship standards.
I visited one of Foxconn manufacturing plants in Shenzhen and was told they recruited a few hundred thousand workers in very short period to meet iPhone crazy demand. I have nothing to say except to compliment Foxconn is a super factory at that time.
Anyone in production line will know training for new workers is a massive engineering work. In my past experience, bring in 3000 qualified production workers in 12-month is already an uphill task.
How big is big? Foxconn industrial zone is like a big city in Malaysia, the worker population is bigger than Seremban or Ipoh. The total headcount during the peak is 1.2 million, a number beyond my comprehension !.
The production ramp-up is too steep and on-the-job training for workers is insufficient also. The hidden problems of over expansion are finally unearthed and haunted the company a few years later.
Foxconn fired two quality heads and its CEO himself slept in the factory floor wound not help to solve the pertinent quality problem.
Foxconn has to pay for the hefty price of poor quality management.
GE production system with self-directed team concept is still the best to cope with quality and production challenges. A GE factory in Malaysia already ventured in part per billion concept when Motorola was still talking about 6 sigma concept of 3.4 PPM in late 80s. Thus, Motorola is out and GE is still fit to compete globally.
Samsung Seremban safeguarded its cell production line like a top secret which was used by GE at more than 30 years ago.  Actually this is Samsung’s main weapon to ramp up its Galaxy phone production without compromising quality.
Posted by nkkhoo on 3rd December, 2012
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Mahathir is laughing on his way to bank while several thousand Genneva investors are crying on their way to banks.
Greedy investors themselves have to be blamed for expecting 24-36% annual return and parting their hard earned money for “paper gold”.
A well managed developer can make better ROI like 50%. Lee Chong Wei knows it, but you have to be rich enough like him to venture into housing project.
This is a UMNO-way to rob RM5 billion from Malaysia Chinese in the broad daylight after NEP.
Bank Negara: 8,000 Genneva customers failed to get gold even after they paid
By LOSHANA K SHAGAR
PETALING JAYA: Bank Negara has revealed that more than 8,000 customers of gold investment company Genneva Malaysia Sdn Bhd have yet to receive their gold amounting to over 4,000kg, despite having settled the payments.
In a statement on Monday, the bank added that documents seized from the company also revealed that some customers, who had surrendered their gold to the company, had not received their cash reimbursements amounting to more than RM80mil in total.
“Initial forensic accounting has uncovered considerable losses experienced by the company in 2012. The company has liabilities exceeding 10 times its assets.
“Selling gold at about 20% to 25% higher than the market price, paying returns of about 2% to 3% per month to customers and buying back the gold from customers at the initial purchase price has not been a sustainable venture,” the statement read.
It also noted that cash flow for the company to sustain its operations had relied heavily on the amount collected from new customers.
Genneva, was raided by Bank Negara, the police, Domestic Trade, Cooperatives and Consumerism Ministry and the Companies Commission of Malaysia on Oct 2.
Three days later, the authorities conducted raids on the premises of Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd on suspicion of illegal deposit-taking, money-laundering, tax evasion and avoidance and false description.
The statement said Genneva had RM99.8mil frozen and 126kg of gold seized, which the bank said were required for investigations and will only be dealt with at the direction of the courts.
The public are advised to refer to Bank Negara Malaysia’s website for further information.
Posted by nkkhoo on 6th November, 2012
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This is exactly the trick used by Genneva by over selling gold bars to many investors to maximize returns.
You may not have realized that all commercial banks are working on the same principle through paper money creation.
Paper money creation is every one ringgit deposits in the bank is loaned out to several borrowers simultaneously. Any bank will bankrupt like Genneva if all depositors withdraw their money from the bank in the same time.
A case study, your RM 1 deposit earns 3 sen in a year, but the bank will collect 21 sen (at lower end) from seven borrowers. The margin is 18 sen sen or 600% gross margin under the ideal case.
The difference with paper gold bar trading is licensed banking business is guaranteed by the government and money creation ratio is also controlled by the central bank.
All well-managed banks can reap huge profits with paper money creation alone.
Gold investment probe: Many paid but did not get their gold
KUALA LUMPUR: Seized records have revealed that many investors who had paid had yet to receive any delivery of gold, prior to the joint raids by Bank Negara, the police, the Ministry of Domestic Trade, Cooperative and Consumerism and the Companies Commission of Malaysia on four companies suspected of conducting illegal investment schemes using gold.
In a joint statement giving an update on their ongoing probe, they said that, in some cases, the investors had been waiting for more than five months after making payment.
“The total amount of gold seized during the raids from all the companies is approximately 142.7 kilogram, and monies in bank accounts and cash amounts to RM101.92mil,” the statement said.
Investigations also revealed that these companies kept poor records with some of them maintaining different versions of financial records for different purposes.
“These companies have also failed to submit audited accounts with the Companies Commission of Malaysia for the last few years, as required by law.
“For businesses, especially those that involve large numbers of clients and monies, it is imperative to maintain accurate records of all business transactions to avoid financial mismanagement or misrepresentation of the true financial situation of the company,” the statement said.
“The enforcement agencies are aware of the plight facing affected investors and every effort is being made to determine the whereabouts of any monies and assets of the companies.
“A dedicated team has been established to track the movement of monies and other assets. International accounting firms have also been appointed on a full time basis to assist in the investigations.
“The scope of the investigation is international.
“In this connection, the enforcement agencies are actively collaborating with their foreign counterparts to obtain evidence in several other jurisdictions to assist in the investigations,” the statement said.
On Oct 5, gold trading firms Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd were jointly raided for suspected offences that include illegal deposit-taking, money-laundering, tax evasion and avoidance and false description.
Three days earlier, Genneva Malaysia Sdn Bhd had been raided.
Posted by nkkhoo on 3rd November, 2012
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In early 90s, a manager from my ex-company asked this question, “Why my uncle wanted to invest three million ringgit in a battery manufacturing factory? I will park the money in the bank to earn 8% interests if I were my uncle.”
A matter of fact is 3 million cash in early 90s is a big money to many laymen like him and me!
He had no choice and quit his QA manager job to help his uncle to start-up and run the company from the scratch. He came back to his old job in my company two years later after the operational and quality systems were set up in the company
The battery company has grown to the biggest battery manufacturer in Malaysia with 45% market share and a listed company after 20 year later.
This story is telling you that an entrepreneur thinks differently with a manager. I believe 90% people are born and nurtured with manager mindset unless your parents are from a business family.
Besides, our local universities produce skilled cheap workers to work for companies.
My friend is a typical manager who could not share the same vision with his uncle, otherwise he would be a multimillionaire like his uncle if he invested and stayed in the company from the beginning.
Posted by nkkhoo on 6th October, 2012
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Bank Negara has listed six offences committed by Genneva Malaysia Sdn Bhd.
KUALA LUMPUR: The authorities are investigating Genneva Malaysia Sdn Bhd and its related companies for suspected offences which include illegal deposit taking, money laundering, tax evasion and avoidance.
Bank Negara Malaysia said on Friday the other suspected offences included false description including misrepresentations, appointment of agents without licence and failure to lodge statutory documents.
http://biz.thestar.com.my/news/story.asp?file=/2012/10/5/business/20121005113751#13494850154065475&if_height=486
I have seen similar Ponzi scheme named Gold Coin Trading about 13 year ago in Penang also, a university classmate invited us after the reunion gathering to a seminar about making money in gold coin investment.
Another friend and me advised our classmates that no such high return and low risk investment in the legitimate business world.
I told him that I would enter the scheme IF I were in the first layer to earn easy money from many downliners.
Gold coin scheme busted several years later and many people lost their hard-earned money. None of my classmates falling into that making quick money scheme.
Some businesses can earn up to 50 – 100% annual returns like Arowana breeding in one or two years ago. But the business always comes with very high risk like a whole batch of fishes perished.
Let use your brain, not your little brother to think how and where Genneva got the money to pay 18-36% handsome annual return to investors?
The mark-up price for gold bar sold to investor is 25%, thus how on earth the company can pay 36% bonus?
Do you believe Genneva generates recurring positive cash flow to sustain its business model in the long run?
My answer is BIG NO.
The late coming downliners will be ultimate losers after the cash flow drains out.
Genneva consultants cry foul over ‘deprived money’
GEORGE TOWN: More than 100 consultants and customers of Genneva Malaysia Sdn Bhd here continue to cry foul over the raid on the company.
Apparently, more than 10,000 customers and 500 consultants in Penang were affected by the Bank Negara operation.
Genneva consultant Mary-Irene Ooi, 55, insisted that many of them had put their life savings into a legitimate business.
“We are buying gold, which is universally accepted. Like other goldsmith shops, Genneva is also selling gold but on a different platform in a scheduled and regulated manner.
“Bank Negara is free to conduct a probe on the company, but please do not take away our money,” she said at a press conference organised by the company at its office in Gelugor here.
Another consultant Yeoh Ah Guak hoped that the suspension would be lifted immediately.
“I have been using the returns to fund my children’s education,” said the 49-year-old. “Many retirees are also relying on these to pay their medical bills.”
S. Venkatason, 64, claimed that following the raid on Genneva, he could no longer support his daughter’s tertiary education amounting to RM1,000 monthly.
“I have been enjoying the returns for the past two years and everything was smooth sailing,” he said. “I’ve been having sleepless nights for the past one week.”
Venkatason also urged the authorities to expedite their probe into Genneva so it could resume operation soon.
Earlier, Genneva regional director Datuk Joseph Kow held a closed-door meeting with consultants and customers at the office in Jalan Tengku Kudin.
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