might benefit from “one stop” service through finishing.
Talk About Costs Metalcasters price cast products
based on several hard-line factors such as labor, overhead and, of course, profit margins. Tese are costs the metalcast- er has some control of. But, other costs are beyond the metalcaster’s control, such as the fluctuating cost of raw ma- terials. It is important as metalcasting procurement agents that we under- stand these fluctuating costs, how to track them, how they impact the fully landed cost of cast components and how they are paid for. Raw materials in the metalcast- ing industry include molding and coremaking sands, chemical binder systems for those sands, base metal (scrap) for melting and the alloying elements that make up the custom- ers’ material specifications. All of these items are commodities that carry a fluctuating price based on global demand. Fluctuating costs are real and
need to be covered. Taking the stance that your company will not pay for these costs is not in the interest of your supplier’s long-term health or the relationship between your two companies. Address these fluctuating costs with your metalcasting supplier and choose the method that best fits both your operations. Agree on what items are covered, what is not and a publication both companies will use to track the market.
Develop Long-Term Relationships
Take time to invite a sup-
plier’s employees to your plant to demonstrate what you do and what you make. Do not limit this invitation to executives, but work to include shop floor supervi- sors and key employees who are producing your cast product every day. Once in your facility, they can view your cast product as more than just a metal casting; a real part with a true end use. I worked in a steel foundry for more than 20 years and, after time, parts just become parts.
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Take time to invite a supplier’s employees to your plant to demonstrate what you do and what you make. Include shop floor supervisors and key employees who are producing your cast product every day. ”
Work with these people, and try to understand their problems and issues in a way that is positive. When issues do come up that require a more serious conversation, handle these issues in a manner that does not place you in the light of a tyrant. Every issue you encounter can be corrected if dealt with as a professional. You and your supplier are a team who truly are after the same goals: on-time delivery, qual- ity levels within specifications and a solid working relationship that grows the business. Your ability to work with your supplier can be either a catalyst or a wedge in this process. It is critical to establish a clear set of expectations with your supplier early in the relationship. Again, this does not warrant behavior that in some way indicates you will always be right and they must always bow down to your requests. Tis is a time to express your delivery, quality and pricing expecta- tions that will drive the account and play a key role in developing your relationship going forward. As in any relationship, open and honest commu- nication is critical. Work to establish this with your supplier and you will find your relationship in good standing.
Take a Tour On a recent planned visit to my
largest casting supplier, I took the opportunity to invite several others in the company to join me. Tis group included members of our engineering design team, procurement personnel and a member of our planning group. I used this visit as a chance to expose the group to the metalcasting operation and the complete process from pattern prep to shipment.
Te post visit feedback from my
group was outstanding. Te group had not only gained knowledge of the casting operation, but it gave them a new appreciation for the casting pro- cess in whole. Tey were exposed to new technology and process improve- ments created through lean concepts. Te educational adventures served to rid my team of the dirty, fiery ste- reotype of metalcasters held by those who are not familiar with the process. Tey now view the metalcasting process as the sophisticated, leading- edge operation it is. Take advantage of these oppor- tunities to expose and educate your company in metalcasting. Visits to your metal casting sup- plier also serve as an opportunity to look into the processing used to produce your cast part. In some cases, you might find an operation that adds no value to your part based on its end use. For example, your metalcaster might be performing heavy grinding on a surface you will end up machin- ing later, or processing a riser contact flush on a machined surface. Tese are opportunities to help reduce costs. Understanding your parts’ uses and the processes used at the metalcaster are the basis for beginning cost or lead time reduction efforts. Tis same concept applies to your
metal casting designs. Your engi- neering group will work to design a component that meets the design needs, but is it a good casting design that takes “castability” into consider- ation? Collaborative efforts will serve to lower costs, reduce lead times and dramatically improve the first-pass yield of your first article parts.
Jul/Aug 2014 | METAL CASTING DESIGN & PURCHASING | 35
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