Casting as a Core Competency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


I


s metalcasting one of your firm’s core competencies? This is a question many OEMs have asked themselves in the last 20-30 years. Many—like Ford and GE—have decided “no,” shedding their captive metalcasting facilities in favor of purchasing engineered cast com-


ponents from outside vendors. Did they make the right decision? For some, yes. For


others, maybe not. Even where they have streamlined their operations and reduced waste by outsourcing sub-assembly work, the question when considering the supply chain remains: are cast compo- nents just commodities like the thousands of other parts OEMs buy to assemble their cars, trucks and construc- tion equipment, or are they foundation components, so critical in quality and perfor- mance that the ultimate suc- cess of the end-product rests on them and, as a result, must be produced in-house? Three articles in this issue


head casting facility in Indianapolis will remain open after a new union contract was passed two days prior to its planned closure. At the same time, Navistar is increasing support for its Waukesha, Wis., casting facility, which is both captive and jobbing.


“What we really want, that is going to be miss-


“ We are going to know how to make castings. Because


without castings, we can’t build a truck. That skill set is going to be a competitive advantage for us.


of Metal Casting Design & Purchasing fuel the debate. On our news pages (p. 9-16), stories appear about two OEMs—John Deere and Chrysler—making multi-million dollar investments in their captive metalcasting facilities in Waterloo, Iowa, and Kokomo, Ind., respectively.


“This integrated approach at John Deere in


the design and manufacturing of large row crop and four-wheeled-drive tractors is a competi- tive advantage.” —David Everitt, president, worldwide agriculture and turf division for John Deere


“As Chrysler works to implement the


business plan outlined on Nov. 4, 2009, our facilities in Kokomo will play an integral role in achieving those objectives.” —Scott Garberding, senior vice president and head of manufactur- ing at Chrysler


In our features pages, we take a


look at Navistar’s approach to casting design and sourcing. This company just announced its engine block and


July/August 2010 Alfred Spada, Publisher/Editor-in-Chief


If you have any comments about this editorial or any other item that appears in Metal Casting Design & Purchasing, email me at aspada@afsinc.org.


MetAl CAsting Design & PurChAsing 7


ing in this country in five years, is the expertise of manufacturing and casting design engineers. We are going to know how to make castings. Because without cast- ings, we can’t build a truck. That skill set is going to be a competi- tive advantage for us.” —Houman Kashani- pour, vice president/ general manager of components for Navistar


Kashanipour, vice president/general manager of components for Navistar


”—Houman These three OEMs join


the ranks of other firms like Kohler, Ping, General Motors and Rolex who see casting as integral to producing the best products they can. For the designers and


buyers reading this who can’t source to a captive casting facility, take a moment to think about the quality of your outsourced castings. Are they commodity components or engineered components? Does the relationship you have with your casting supplier relate to how integral those components are to the quality and performance of your end product? Your success may depend on it.


eDitOriAl


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