ERSA has arguably the widest range of soldering, printing and inspection solutions in the industry. Andy Kellard visited the €70M German powerhouse to speak with COO Bernd Schenker.

Q1. Bernd, ERSA has developed an enviable reputation as a leading global supplier of soldering equipment over many years. The combination of a high cost Euro zone and low cost competition from Asia is placing unprecedented challenges to European manufacturers; how is ERSA combating these hurdles?

 A. First, we don’t base our business strategy by second guessing or trying to predict exchange rate fluctuations. ERSA has always been committed to providing our customers with high added value solutions that protect their investment and deliver a fast payback. If for example the dollar depreciates against the Euro by 10% and the return on investment takes 20 months rather than 18, it doesn’t really matter in the overall scheme of things. Interestingly, the second biggest market for our high end and most expensive products is China despite the fact that locally made ovens can be sourced for much less. Discerning customers understand the value of equipment that guarantees high uptime and keeps the line running 24/7. They see it as something of an insurance policy against unpredictable line stoppages.

Q2. ERSA is part of the Kurtz group which has a well established manufacturing base in China. Many of your western competitors have set up production in Asia. Why not simply follow suit?

A. ERSA is a leader, not a follower. Our R&D team is based in Wertheim, Germany alongside our manufacturing facility and we believe that a close relationship between engineering and production is imperative. Regarding our capability to manufacture in Asia, we are part of the Kurtz group of companies and our parent already has an established manufacturing facility in Guang Dong province, South China. If it ever makes commercial sense to transfer production of a particular ERSA product to China, we have the infrastructure to do so quickly and seamlessly.

Q3. The lean manufacturing initiative that ERSA has implemented recently is obviously a key driver in maintaining a competitive manufacturing base in Western Europe. Can you explain how this came about and what the benefits are?

A. ERSA is committed to manufacturing Best in Class products and we strongly believe that this still remains possible in Germany. This can only be accomplished, however, by optimizing our manufacturing process. Our target was to increase our productivity and efficiency and therefore our competitiveness. We visited several manufacturers in other industries to learn how they improved their yields and controlled costs. We then implemented the Kaizen method of lean manufacturing, which has been successfully adopted by many of the automotive giants including Toyota and, closer to home, Porsche. This has significantly reduced our manufacturing times. As an example, on our recently completed Just in Time lean manufacturing line, a reflow system comes off the line in a tact of every 4 hours! Moreover, this has been achieved in 22% less factory floor space than before, using less storage space and with a significant reduction in the inventory we carry. At the end of the day, our customer has significantly faster delivery times and lower pricing and this makes us more competitive.

Q4. There are dozens of suppliers in the wave, reflow and selective soldering markets. How does ERSA differentiate itself from the pack?

A. No other manufacturer has a product range as wide as we do. ERSA has everything from hand soldering tools for the workbench up to in-line wave, reflow and selective soldering machines. We also have rework and inspection products and have recently introduced a complete range of stencil printers with integrated AOI. Our aim is to offer ‘Best in Class’ solutions right across the entire product range by offering our customers the right solution for their specific application. Additionally, we pride ourselves on listening to our customers and providing them with solutions that protect their investment and give them a healthy return on investment.

Q5. ERSA has a long history in the soldering industry with both capital equipment and hand tool divisions. The recent introduction of the ‘VERSAPRINT’ high end range of stencil printers is something of a diversion from your core business. There are already many printer suppliers; what was the rationale for your foray into this sector?

A. ERSA has a proud history in pioneering developments. In 1921 we introduced the world’s first electric soldering iron, in 1966 Germany’s first wave solder machine. We have been manufacturing reflow machines since the late 1980’s. our VERSAFLOW was the world’s first in-line selective system launched in 1996, and in 1990 we invented the ERSASCOPE. Today, best industry estimates suggest that as much as 90% of all manufacturing defects in an SMT line stem from either the printing or reflow processes. Adding print capability to our range was simply the next logical step in assuming greater responsibility for process control of the SMT line. The VERSAPRINT is a pioneering breakthrough in printing technology with its fully integrated AOI capability and thus maintains our tradition of delivering leading edge innovation.

Q6. The VERSAPRINT’s real time inspection system, ‘LIST’ (Line Scanning Technology) is claimed to be a key differentiator in the printer market. What can you tell us about it?

A. The VERSAPRINT P1 combines stencil printing with full AOI capability. Our LIST vision system performs 100% inspection of both the stencil and substrate with no degradation of line speed, thus eliminating the need for a separate AOI system. This reduces capital investment and saves costly space on the factory floor. The stencil cleaner is also intelligent. When a blockage or smear on the stencil is detected, the print cycle stops and the cleaner is automatically invoked. We believe it’s essential to inspect quality into a process and not to check for defects when it’s already too late. Full inspection during the print cycle renders end of line AOI systems redundant.

Q7. You currently have two printer models, the P1 and S1. Are there any plans to expand the VERSAPRINT platform?

A. It is our specific aim is to become one of the top printer suppliers globally and in this regard we must have a complete range. We will have four to five printers in our range and two new models will be launched in the very near future.

Q8. ERSA now has a comprehensive range of printing and soldering solutions. The obvious missing piece in the jigsaw puzzle is a pick and place system. Do you have any plans to add a placement system to your portfolio, maybe through acquisition?

A. Good question, but we feel that the SMT placement market is already well served by existing suppliers. Our aim is to specialise in our fields of expertise and our focus is very much concentrated on soldering and printing solutions.

Q9. Renewable energy sources and in particular solar cell production are hot topics. Presumably a solar cell manufacturing solution is on your technology roadmap?

A. Germany is leading the way in solar technology. Given our geographical location and our capability in printing and soldering, it would be unwise for us to overlook the opportunity to offer total solar manufacturing solutions.

Q10. ERSA claims to be the “COMPANY FOR GLOBAL CONNECTION TECHNOLOGY.” How would you summarise this statement?

A. ERSA “Global Connections” is an integral part of our company logo. We see ourselves committed to helping the PCB manufacturing industry “keep things together.” Our vision statement makes our purpose clear: Our competitive lead in technology optimises quality, ROI, and delivers service in our customers’ production processes.

Thank you Bernd!