Cortec Early Supplier Developemental Input, 3 26 2012

Early Supplier

Developmental InputCortec Precision Sheetmetal and Machining

March 2012

Innovative Solutions for Commodity Specific Manufacturing

IntroductionHow valuable is supplier input when it comes to minimizing design cost, cost effective materials and cost efficient processing for your new product?

Early Supplier Developmental Input (ESDI) is a 2nd set of eyes at the front end of the NPI process that can lead to major producibility and procurement advantages.

Cortec has an ESDI Program that will provide critical risk assessment as it pertains to the manufacturing of your new product. DFX; DFP, DFM & DFT observations on everything from Raw Material, Outside Services, Procured Components, Logistics, Packaging and Shipping.

Real-time consultation on the Quality Output of materials when processed through our manufacturing facility.

By providing input on materials that work best with a specific child prototype or electromechanical parent design, those contributions prevent potential problems during manufacturing. By identifying these issues in advance, you're more likely to experience a smooth product realization process once your new product has been launched.

Cortec Precision Sheetmetal 2011

Early Developmental Solutions

When you send Cortec an RFQ it will be reviewed by our Estimating Team (ET).

Our E.T. has Sheet Metal & Frame Manufacturing, Machine Shop,

Mechanical/Engineering, Add Value Assembly, NPI Development and Product

Transfer experience.

They possess knowledge of material pricing and services related to your Build To

Print fabrication and assembly needs.

Our Drawing Process includes DFX feedback during conceptual design stage.

We are proficient at expediting and providing real-time solutions.

Actively propose Integrated solutions.

Advise on potential processing inefficiencies.

Make logical progression of design recommendations from NPI thru production life

cycle and value-added assembly.

Our Experts provide cost impact analysis when revision changes.

PFMECA reporting can be conducted.

Ensure lines of communication are open and maintained daily to interface with

corresponding personnel.

Capable of working on special projects from NPI to Production transition.


ESDI DFP Reporting


DFP - Material Assessment

& Material Budgetary Quote

sample

TYPE

BOM

Item

Number

Metric Material

Description and Imperial

Equivalent

QTY

Required

to build 2 Frames

Metric 1, 2, & 3 200 x 100 x 10MM WALL RECT TUBE 4

Imperial "

8" x 4" x .375 WALL A500B STEEL,

RECT TUBE 4

Metric 4 150 x 100 x 8MM WALL RECT TUBE 4

Imperial "

6" X 4" X .312 WALL A500B STEEL,

RECT TUBE 4

Metric 5 & 7 100 x 50 x 8MM WALL RECT TUBE 5

Imperial "

4" X 2" X .312 WALL A500B STEEL,

RECT TUBE 5

Metric 8 32MM THK, PL STRUCTURAL STEEL 1

Imperial "

2" X 1-1/4" THK STEEL RECT FLAT

BAR 1

Metric 10

2.5MM (MILD CARBON HRS STEEL

PLATE, A36) 1

Imperial "

12 GA CRS (0.1046) ASTM A1008 CS

TYPE B 1

Metric 6

19MM THK PL, STRUCTURAL STEEL

SUPPLIER DOES NOT SUPPORT,

NEXT SIZE UP IS 20MM (.7874 THK) 1

Imperial "

.750 THK PLT ASTM A36

48" x 96" 1

Metric 9

13MM THK, PL STRUCTURAL STEEL

32" X 60" 1

Imperial "

HOT ROLLED PICKLED & OIL .500

(PLATE A36)

32" x 48" 1

Metric 11 COPPER SH, 1MM THK 1

Imperial "

.040 THK, (1/4 HARD) OFE COPPER

C10100 HO1, ASTM B 152 1

Using a sheet metal cover as an example, Is it possible that the fasteners you are using could be substituted for a less expensive product or be integrated in our factory at the next level of assembly?

Cost savings pass through to you when suggesting alternative materials or processing ideas that work as effectively but cost much less because they are incorporated into your design from the very start.

ESDI DFM Reporting


ESDI:

1. Instead of using CLS-832-1 Cortec suggested using SP-832-1.

Why?

Pem product technology has advanced and supplier created a new type of

hardware designed specifically for installment into Stainless Steel base

material.

This new Pem product eliminates the need to tack weld the old type of

hardware customarily used resulting in cost savings.

15% per part cost savings include elimination of tack weld, grinding and

additional regraining of exterior surfaces to remove weld discoloration in the

manufacturing Sequence of Events (SOE).

Quality of new product is directly related to how involved your ESDI partner is at the beginning of the NPI process. When consulting Cortec during the development stage, expect to have a product designed with the right materials that conform to drawing specifications.

When products are designed without the contribution of an ESDI partner, there's a possibility requested materials will not work well with the final product. Materials used in the production of your new product could be inconsistent, laborious and very expensive to incorporate or rework.

Cortecs’ ESDI solution is to provide an onsite resource and be an adjunct member of your Engineering team.

ESDI: Quality Review


Flat Head Screws

• Flat Head Screws supposed to be removed.

• Cause: Frame manufacturer failed to remove Flat Head Screws before painting.

• Type of failure – Minor, weld department did not follow customer approved OMS.

• Action: Option to Return to supplier or PAINT frame.

Cortec Precision Sheetmetal Confidential

Slide - 1

Metal Filler Missing

• Workmanship

• Failure to Follow OMS

• Type of failure – major

• Action: Rework by

stripping paint from

seam and repeat OMS

#12 STEPS 1-15


Slide - 1

ESDI Solutions identified during RFQ Process

& change control



Slide - 1

RFQ

• Estimators

Review

RFQ Package

• Prepare Pre-

FMEA statement

• Create Redline

drawing to WI 7.1.3

• Adds Comment to

Quote Comment

Field.

• Estimators send

Quote Letter to

Customer along

with Pre-FMEA

statement and

Redline drawing

file.

• Adds Popup Note

in History Tab and

clicks Popup Notify

Note

• Customer places

order.

• Customer Service

sees Popup

notification and

triggers SPS

Process.

• Customer places

order.

• Customer Service

sees Popup

notification and

triggers SPS

Process.

• ME confirms

need for SPS

and SPS details.

• ME always

attaches revised

redline to

FabriTRAK.

• Must attach to

BOTH Quote and

Router.

• ME confirms

redline created by

Estimator.

• ME Reviews

drawing files for

any other

omissions that

will prevent

product

realization during

WIP.

• ME gathers data

and updates the

redline drawing file

if required.

• ME files SPS /

PR / (other

customer

acronym).

• Adds comments

to FabriTRAK

quote comment

field.

• ME updates

router and adds

comments to

transaction log.

• ME updates

router and adds

comments to

transaction log.

• ME notifies ALL

departments

affected by SPS

submittal.

• Estimators

• Customer

Service

•FAI Team

• ME saves a

copy of the

solution in the

Q:/Drive Part

number folder.

• Adds comments

in Quote and

Router, attaches

solution to

FabriTRAK.

RFQ Processing and Identification of ESDI Opportunities, DXF reporting and design challenges

Applying our ESDI approach affords the opportunity to reassure optimal

“design implementation” for manufacturability and other processing risks in a

timely manner, enabling Research and Development the opportunity to

respond with minimal impact to your product release schedule.

This fully-integrated and efficient approach assures that your company

reduces costs because it allows earlier identification of processing issues,

and it applies your set tolerance for risk in a consistent manner.

Enables real-time responsiveness and effective direct design input.

Allows significant processing alternatives to control risk, cut cost and improve

quality.

Provides consistent risk analysis, assessment and reporting.

Conduct risk control validation .

Cortec guarantees a fully- integrated and value-added approach towards

assessing and improving your design implementation.

Early Developmental Input Benefit


ESDI Benefit: Quantitative Results


12ncDescription2010

Cosmetic

Class A Finish,

2 sides

Q3 2011

Cosmetic time savings

Class A Finish Outside Surface

Class C Finish Inside Surface Quantitative savings 12-02-2011 TQS

xxxx.000.88882 RS XTIV LO-FRONT PANEL IL LSY244.31$ 35.12$

Time savings 1 minute per part

1.08$ 34.04$

xxxx.000.88882 RS XT4 INN.COV. LSY2 RH ASSY289.78$ 272.33$

Multiple piece assembly, Time

savings 5 min per side; 10 min.

total 10.83$ 261.50$

xxxx.000.88882 RS XT4 INN.COV. LSY2 ILL ASSY258.23$ 250.17$

Multiple piece assembly,Time


total 10.83$ 239.34$

xxxx.000.88882 RS XT4 INN.COV.LSY1/2 MID ASSY221.93$ 210.84$



total 10.83$ 200.01$

xxxx.000.88882 RS XT4 INN.COV. LSY1 RH ASSY283.17$ 271.86$



total 10.83$ 261.03$

xxxx.000.88882 RS XT4 INN.COV. LSY1 ILL ASSY294.37$ 279.65$



total 10.83$ 268.82$

xxxx.000.88882 RS AIR SHOWER COVER PLATE ASSY453.42$ 417.18$

Time savings 10 min. per side;

20 min. total 21.66$ 395.52$

xxxx.000.88882 RS XT4 TOP COVER ILL LSY2 ASSY551.00$ 526.21$ Time savings is 10 min. 10.83$ 515.38$

xxxx.000.88882 RS XT4 TOP COVER MID LSY2 ASSY553.91$ 526.23$ Time savings is 10 min. 10.83$ 515.40$

xxxx.000.88882 RS XT4 TOP COVER RH LSY2 ASSY596.50$ 570.84$ Time savings is 10 min. 10.83$ 560.01$

xxxx.000.88882 RS XT4 TOP COVER ILL LSY1 ASSY554.97$ 527.25$ Time savings is 10 min. 10.83$ 516.42$

xxxx.000.88882 RS XT4 TOP COVER MID LSY1 ASSY440.00$ 420.26$ Time savings is 10 min. 10.83$ 409.43$

xxxx.000.88882 RS XT4 TOP COVER RH LSY1 ASSY535.75$ 508.98$ Time savings is 10 min. 10.83$ 498.15$

xxxx.000.88882 RS XT4 FRONT COVER LSY1 ASSY421.96$ 400.86$ Time savings is 20 min. 21.66$ 379.20$

xxxx.000.88882 RS XT4 UP-FRT COVER IL-Y2 ASSY326.97$ 311.29$ Time savings is 7 min. 7.58$ 303.71$

xxxx.000.88882 RS XT4 FRONT COVER RH-Y2 ASSY424.90$ 390.04$ Time savings is 5 min. 5.42$ 384.62$

xxxx.000.88882 RS XT4 FRONT COVER MID-Y2 ASSY446.11$ 384.73$ Time savings is 5 min. 5.42$ 379.31$

xxxx.000.88882 RS LOS RH COVER ASSY580.46$ 554.52$ Time savings is 20 min. 21.66$ 532.86$

xxxx.000.88882 RS XT4 COVER MOUNT STRIP SA-A71.37$ 62.10$ Machined flat bar

xxxx.000.88882 RS XT4 COVER MOUNT STRIP SA-B69.07$ 60.39$ Machined flat bar

7,418.18$ 6,980.85$ Total 6,654.75$

Percentage Quantitative Savings -24.67%

Early Developmental Input

New

Product

Design

Issues &

Opportunities

Identified

Material Processing Issue

Mechanical Fit Issue

Early Supplier

Developmental Input

Cost Overruns


New

Product

Design

Logical Manufacturing Progression


New

Pro

duct

Desi

gn

Drawing Review

POR/PFMECA/

ESDI/DFX

Sheetmetal

Processing

Machine Shop

Processing

Welding Shop

Processing

Silk Screen

Processing

Value-Add

Assembly

Class 10,000

Cleanroom

Value-Add

Assembly

Class 1000

Cleanroom

Process Control

Validation (PCV)

SPC/FAI

Shipping

Project Lessons

Learned

Paint Shop

Processing

PCVPCV PCV

PCV PCV PCV

PCV

PCVPCV PCV PCV

Manufacturing Enhancements


78,000 Sq Ft Manufacturing FacilitySheetmetal

Light out laser capabilities added

QTY 9, AMADA Press brakes, multiple LASER and Punch Presses

Machine Shop

Qty 7, 3-AXIS Vertical Mills,

Qty 1 (Lathe) CNC turning Center

14 weld stations – some dedicated work stations to support 4LPM & 2LPM

projects added

Both Powder and Wet coat paint booths can support up to 16ft tall frames,

Material KAN-BAN inventory

Onsite rework team for real time change control

90 day strategic plan in progress for a fully functional ISO 7 CL 10,000 Value-

Add Cleanroom.

Enhanced Machine Shop Capabilities


More Machines

Better Process Controls

More Capacity

Project Success Criteria


Multiple Frames developed in Parallel with Optimum Success Criteria

Ramp to meet customer demand in less than 30 days.

Dedicated work stations through entire process to support both projects

PFMECA conducted and reported.

Added dedicated project weld stations.

Daily CFT and project timeline updates.

JIT raw material and procured materials inventory.

Tab and Key tubing design and fixturing for better welding controls.

Incorporated Value-Add materials in ISO 8 cleanroom during production.

Process Control Validation and OMS documented.

Multiple ESDI and customer design changes cut-in before and during

development.

Onsite rework and ESDI participation with customer Engineering team

eliminated costly logistics burden.

Imperial material solution provided during production when European

metric material supplier failed to deliver attributed to ESDI, CFT’s and PR

reporting.

100% Product Yield

Participated in crate recycling program to reduce logistics burden.

Lessons Learned and reported.

Project Success Criteria


Multiple Frames developed in Parallel with Optimum Success Criteria

Ramp to meet customer demand in less than 30 days.

Dedicated work stations through entire process to support both projects

PFMECA conducted and reported.

Added dedicated project weld stations.

Daily CFT and project timeline updates.

JIT raw material and procured materials inventory.

Tab and Key tubing design and fixturing for better welding controls.

Incorporated Value-Add materials in ISO 8 cleanroom during production.

Process Control Validation and OMS documented.

Multiple ESDI and customer design changes cut-in before and during

development.

Onsite rework and ESDI participation with customer Engineering team

eliminated costly logistics burden.

Imperial material solution provided during production when European

metric material supplier failed to deliver attributed to ESDI, CFT’s and PR

reporting.

100% Product Yield

Participated in crate recycling program to reduce logistics burden.

Lessons Learned and reported.

Product Transfer Services to LCR


l • S. Korea

• Singapore

• Malaysia

• China

• Canada

• Mexicali, Mexico

Value Add Assembly & Cleanroom

Is the Next Logical Step In Manufacturing


Co

min

g s

oo

n !

!!

Summary


Cortec considers your company a valued partner and would like the opportunity to review your design and provide

The proposed ESDI solution is for an assigned project or Technical P.M. to work as an adjunct member of your Engineering team, Quality team, Supply Base Management or other groups as required.

Machine Shop capacity has increased with better controls and could be

a stronger strategic resource to an existing partnership.

Welding and Large Frame Capacity has increased with better controls.

Multiple Frame projects with value-added assembly with 100% yield

SPC, FAI process validation, and OMS documented and reported;

benefits all Cortec customer base.

Strategic plan in progress to provide a Class 10,000 cleanroom for

increased Value-Added assembly service in 90 days.

Streamlined communication to correct personnel at Cortec for better

responsiveness.

Product Transfer Services to Low cost Region

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Cortec Early Supplier Developemental Input, 3 26 2012

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