Drive End Cover Case Study

Customer background

  • The company established in 1859, is the premier supplier of industrial compressors worldwide.
  • Revenues in 2010: $1.9 billion
  • Estimated IT budget for 2004: $1.2 million
  • The company has 40 Manufacturing facilities located in the Americas, EMEA, and Asia Pacific. IN addition there are offices in 36 different countries

Business situation

Following the installation of a new Purchasing Manager, a visit was arranged to discuss what possible potential there could be for SAL. It soon became apparent after the initial discussions that issues with the existing castings supply were causing problems to the customer.  They were experiencing both quality and commercial issues. The customer was literally running “hand to mouth” with goods in or finished goods stock.

Technical situation

The Quality issues were a combination of physical casting defects and delivery issues. The customer was literally running “hand to mouth” with no safety stock in place. On top of this Also the supplier had just announced a significant price increase. The customers objective was to limit any commercial increase and improve casting quality and supply. The lack of casting delivery was made worse as several suppliers were involved in the process route.

SAL Solution

We worked with the customer to develop a sustainable manufacturing resolution. Following some negotiation to agree a commercial solution acceptable to both companies the 1st pattern was delivered to SAL, the Drive End Cover. The foundry technique was completely redesigned to optimize the fill characteristics of the mould. Under extreme pressure due to dwindling safety stock at the customer a new foundry technique was added and the casting process developed to enable an casting with superior finish quality to be supplied to the required customer schedule.

Benefit to the Customer

The customer is now enjoying enhanced quality castings delivered in the quantities they require. There is  plan in place to start consolidating the other external process into SAL so rather than generating 4 separate orders and organising the logistics of transporting WIP castings around the country they will be able to place one blanket order and schedule the castings  for regular deliveries of finished product.

Products and services used to ensure the successful project outcome

SALs experienced manufacturing department ensured the development of the pattern during the sampling process employees.
SALs customer service program ensured the customer was keep fully informed during the whole process.
Continued focus during the start of the production process has highlighted further improvements to the paperwork flow.