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Questions To Ask a Potential New Casting Supplier Bob Mueller Jr., Joy Global Surface Mining, Milwaukee
assure we are aligning ourselves with the best possible candidate that can meet our expectations. While mem- bers of the sourcing team will have many questions, each within their own area of responsibility, some ques- tions need to be brought to the table early in the search.
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What are your current lead times?
T is is a typical sourcing question
that really depends upon the current business levels of the metalcaster. In good times, lead times can extend as far as 18 weeks, while lean times can see lead time dip to as little as a few weeks. It is important to understand the true driving factors in a metal- caster’s lead time and work toward a consistent lead time in the contract or agreement. It becomes very diffi cult to run your business when lead times are constantly changing.
What is your on-time delivery performance?
T is is a question that should not
be left at the word of the supplier, but proven through a documented matrix at the metalcaster. Every worthy metalcaster in the U.S. tracks delivery performance to its customers and, most often, these numbers are directly related to the yearly goals and objectives of the management staff . Acquiring actual numbers should not be diffi cult and the data should prove to be informative in basing on-time delivery expectations for your new metalcasting source.
What are your rejection rates? As with on-time delivery, this appears
to be a generic question asked of any potential supplier, but be sure to fully di- gest the data you receive. You should be looking for both internal and external (at
hen looking at new sources for a cast product, asking specifi c questions can
the customer) rejection rates. Again, this data is typically used to defi ne the yearly performance of the management staff , so acquiring the information should be fairly easy. Internal rejection rates are im- portant as they will directly impact not only on-time delivery but your pricing going forward, as that lost revenue needs to be made up somewhere. Additional data to be aware of includes the amount of salvage and rework performed by the metalcaster. High levels of salvage and rework can point to weaknesses in its processes and may have a negative impact on delivery performance. Quality metalcasting suppliers certainly will track this information.
Who makes up your current customer base?
T is information is valuable in better gauging who you are competing with for capacity. Big purchasers of castings can use their buying leverage to push your orders out, resulting in longer lead times. Be aware of which customers your potential suppliers are working with, what level of the metalcaster’s ca- pacity they are currently consuming and what, if any, percentage of that capacity the supplier has committed to provid- ing. You could fi nd yourself a small player in a big dog’s world.
What end-use markets does your customer base represent and in what percentages?
T is question is critical to assure
you are going to work with a sup- plier that is not oversaturated in one market. T at position is not healthy for you or the supplier. We all have seen the cyclical trend in manufacturing over the years, in a variety of fi elds. You need to assure your potential metalcasting source is well diversifi ed in its customer base. A casting supplier heavily vested in construction could potentially be in real trouble if that market takes a serious dip in business. You need a supplier that can remain healthy and profi table despite cyclical trends in one or more business sectors.
What is your sweet spot? T is question is more related to
the cast products you are looking to source. It is directed at the best casting weight, the best mold size, etc., you are looking to place. For ex- ample: If you are looking to source several diff erent castings that have an average weight range of 100 lbs., then a supplier with a weight “sweet spot” of 2,000 lbs. might not be the best fi t. T e same principal applies for mold sizes. When sourcing metal castings, you must place the work with sources that are the best fi t for those parts. Failure to identify and utilize proper metalcasting capabilities will do nothing but cost time and money.
What value-added services do you offer?
Metalcasting sources today are able
to provide more value-added services than ever before. Beyond machining and painting, these include assembly, modeling (both on the part level and solidifi cation), and engineering as- sistance on new product development and fabrication conversions. As sourcing professionals, we need to investigate what value-add- ed services potential suppliers can offer. This investigation should not be confined only to questions but should include real-world examples of past successes. These services are what separate world-class suppliers from the rest. T ese questions and the investiga-
tions behind them are good starting points for you and your sourcing team to consider when investigating and, ultimately, selecting a metalcasting source. Some extra work at this point could be the diff erence between a rela- tionship that blossoms and one that is destined for failure.
Bob Mueller Jr. is senior supplier quality engineer, cast product and casting supplier development, for Joy Global Surface Mining, Milwaukee. He has more than 30 years of casting experience.
Nov/Dec 2012 | METAL CASTING DESIGN & PURCHASING | 47
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