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Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
Connecticut Manufacturing Co. S.A.
World-class quality supplier of precision turned parts
Boras, March 27, 2012
Plant: Casa Micron3 Ctin. Musat, 600092 Bacau RomaniaTel: +40-234-212-446www.Connecticut-Mfg.com
US Office: 1157 Melville Ave.Fairfield, CT 06825, USTel: +1-203-368-0398
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
On the Agenda
� Introducing CMC
� CMC Facts� Location Description� Revenues � Personnel� Processes, Equipment, Capabilities� Raw Materials� Quality� Performance (RPPM, lead time, delivery)� Production capacity available� Examples of parts made� Customers & Industries
� Additional Information / Confirmation
� Relocating production lines.
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
Introducing CMC
� CMC was especially established in 1998 to supply parts to Vickers.(Vickers helped to create the competitive advantage)
� CMC was built and fully equipped to produce high precision parts and assemblies for hydraulic controls.
� US, Swiss, Romanian capital - Initially Austrian, British
and Romanian capital)
Management has ownership interest.
� While located in a LLCC, strong links in the US and Switzerland give CMC access to world-class technology.
� Currently CMC moved to a new location that allows for rapid growth.
Note: The diagrams are many years old and are used just for presentation purposes.
CMC's avg. precision parts costs
0%
5%10%
15%20%
25%30%
35%40%
45%
Material Equipm.
Oper
Het
Treating
Cons.
Tooling
Labor
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Old Location
� Limited growth potential� Low quality electric power supply� Poor working conditions for personnel and equipment
� But it provided the proof of CMC’s strengths
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s New Location� Relocation almost completed.
� New location (over 6,000 m2) provides the infrastructure for growthIncluding:- 2,600 m2 reserved for rapid deployment of new projects- 1.5 MW reserve of installed electric capacity- Accommodations for more than 500 people (currently 110) – lockers / cafeteria…- Training center- Heat treating excess capacity- Precision inspection equipment and available inspection capacity- Maintenance facilities.- Office space for product engineering
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s New Location
14 trepte
17.68 x 27
F1
28
x 1
914 T
repte
1 2 3 4 5
28 x 1813 Trepte
17.64 x 2712 Trepte
Inspection Room
Steel storage
Cofee Room
Tool Room
Oil Storage
DI Water Gen.
Work in Process
Primary Mach.
Work in Process
Finshing
Cleaning &
Packaging
Finished Product
& Shipping
Primary
Machining
Floor Space for
Development
Primary
Machining
Special Finishing
Operations Assembly &
Testing
Hydraulic Power
Generators
Heat-Treating
Freezer and HT
Coolers Room
Metalographic
Laboratory
Mechanical
Maintenance
Electronics
Maintenance
Spare Parts
Storage
Trainig Center
Medical & First
Aid
Heating
Compressors
Cafeteria
Receptionist
Admin.
Entrance
Summer
Cafeteria
Eloectrical
Transformers
Stair to Lockers
Room
Personnel
Entrance
Spark Erosion
Machining
CMC - New Building
Ground Floor
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
Revenues
� 2011 € 3.5 M
� 2012 ~ € 2 M
2012 - Currently, inventory depleted- Several projects under way.- Prepared to hire at the limit of integration capacity
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Personnel
� Sr. Management – 8 people� Plant Manager� Financial� Engineering� QA
� Maintenance - 6� 5 workers
� Engineering - 6 + 8 people Specialized in:� Mechanical eng.� Metallurgy
� Total personnel – 110
� Production Personnel - 72� 48 CNC Operators� 24 Operators
� Quality Assurance - 9� 8 Inspectors
� Administration auxiliaries - 8� Accounting� Prod Planning� etc…
� MIS - 1� 1 per.� 1 per. P/T (from other depts.)
� Notes:
� Management works 6 days / week
� CMC has good track record of training people
� Many of CMC’s personnel were trained in the US,
Switzerland and Germany
� CMC is committed to offer good working conditions
� Maintenance� Primary mach� Heat treating� Finishing
� Aviation� Electronics
� Consultants add important expertise to CMC� Micro abrasive technology� Complete Grinding Solutions� Heat-treating (Metaltech)� Machines and mechanical technology
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Processes
All processes to produce finished precision turned parts under one roof.
� Turning� Secondary Oper. (4axis drilling, deburing, electrochemical deburing, extrude-hone, vibro-finishing)� Heat-treating � Grinding OD / ID� Honing � Bore sizing (single stroke honing)� Spark erosion *semi-retired� Special operations – seating, matching, etc.� Cleaning – ultrasonicNot in house:� Zinc plating and black-oxide – about 1-2 % of the parts
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Equipment – Turning & Second Op.
� Schaublin130 and 110
� Hardinge42 Super-Precision
Twin spindle
� Index G200Twin spindleTwo turrets
� Haas
� Aero deburing
� Sharp
� Chem dburing
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Equipment - Heat Treating
� C.I. Hayes Vacuum FurnaceVCQ 09-12-44
� Weber Freezer -85 C
� C.I. Hayes Vacuum Furnace
VBQ-09-18-24
� Stress relieving� Tempering
Aerospace certified
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Equipment - Finishing
� OD-ID � Studer 140 � Studer S-145� Tripet TST-201
� Centerless� Ghiringheli
� Honing� Sunnen 3500� Sunnen 1804
� Bore sizing� Boley-Ionascu *� Ovidiu *
� OD� Studer 32� Kellemberger� Tschudin
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Equipment - Inspection
� Geometry
� Integrity
� Metallographic
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Equipment – Hydraulic Testing
� Two self contained power-packs � Tank capacity 175 Gal (675 l)� Operational capacity can be increased by
adding high-performance de-aerators and radiators� Current pressure 3,000 psi (210 bar)� Pressure to be increased to 5,000 psi (360 bar)
� Testing benches� From Customer� Designed with
customer
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Tolerances Limits� Capabilities depend on the parts characteristics and VOLUME:
� Crewkerne 8017459 CPK > 2 for required roundness of 4µ straightness 4µ
� Crekerne 8016559 CPK 1.33 - 1.67 for required roundness of 2/4µ straightness 2/4µ
� Number of critical areas.. CPK ~ 1.5
� Large diameters CPK ~ 2 (temperature issue in old bldg)
� heat-treating limited Length on turning +/-0.010After HT length +/- 0.020
� Brazed, +/-1µ R 0.01-0.03 CPK > 5 !
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Materials
NONENon ferrous
ETG88/100No HT
440CStainless
51 CrV4
42 MoCr11
42 CrMo4
Hardening
15 CrNi6
16 MnCrS5
16 NiCrS4Pb
Carburizing
210M15
1117
11 SMn30
11 SMnPb30
12L14
Free cutting
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Quality Certifications
� CMC is not currently ISO certified� CMC just relocated and re-certification is required.� Recertification scheduled for 2013 ISO 9001:2008 // ISO 14001 ISO 18001� Until re-certification CMC’s will review all its Policies & Procedures.
� CMC is ISO compliant / CMC’s QA is based on the B Advanced Quality System
� CMC’s Heat-Treating is certified for Aerospace AMS 2759
� CMC maintained 0 PPM for extensive periods.
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Performance Metrics
� PPM� In-House scrap-rate 3.12% � Set-up scrap 1.99%� PPM 1515 � Crekerne = 0 PPM� Claim rate (one customer uses this) 1.25%
� LEADTIMEInitial� No customized tools or gages required – high priority…….4 weeks� Customized tools and gages high priority………………......8+ weeksOn-going� High-volume parts (continuous production) ……………….2 weeks � Occasional parts ……………………………………………..4-8 weeks
� DELIVERY� 2011 Average 90% � 2012 January 50%, February 60%, March ~86%� 2012 Crewkerne Jan. 0, Feb.75% March ~ 98%
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Available Production Capacity
� Currently� ~ € 30-40,000 /month
� Within 3 months� Hiring / training for implementing 2 and 3 shifts.
� ~ € 70 – 100,000 /month
� Within 6-9 months� Hiring / training for implementing 3 shifts 6/7
� ~ 100 – 150,000 /month
� Within 6-…… (depending on demand and financing opportunities)� Investing in additional equipment and hiring as needed.� ++++
� If customer provides the equipment � As needed / allowed by equipment – hiring / training as needed
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
� More than 200 P/Ns in current production
� More than 800 P/Ns to date
� 99 % of products are precision parts for hydr. controls
� The most challenging parts are the most successful !
� 50% of parts are delivered in tested sub-assemblies
� Very successful in boosting FTY (first time yield)
� Sub-assemblies are 100% tested
� Still limited to core sub-assemblies
CMC doesn’t produce any screw machine parts
� 20% of parts supplied with special seating operations
� Not yet involved in high volumes or lower precision
� Lack of multi-spindle machines
� Lower added value
� Not yet in slender spools
� Lack of Swiss turning
CMC’s Products
P/N $ / Kg
31273 966
21290 328
23469 232
24400 200
21303 133
24026 105
23583 84
24304 79
20506 77
203298 56
20733 31
20845 30
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Products – Precision Parts
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Products – Precision Parts
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Products – Brazed Assemblies
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Products - Assemblies
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
CMC’s Products - Assemblies
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
� 99% of CMC’s products are for hydraulic controls.
� Machine tools
� Mobile (Not directly: Caterpillar, J. Deere, JSB, Volvo)
� Mining, marine, etc…
� Flight controls (Not directly: Boeing, Airbus)
� Customers
� Eaton / Integrated Hydraulics (3 divisions)
� Bosch-Rexroth (3x divisions)
� Moog (3 x divisions)
� Parker Crewkerne
CMC’s – Industries and Customers
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
1) Payment terms
Net 30
2) Duration of price validity and raw material formula for calculation.
CMC maintained prices for many years. Raw material is not a factor compared to the value
added on CMC’s parts (avg. price of parts ~ $200-300/ Kg)
3) If you are willing to do consignment stocks with us (Parker) and the conditions.
Yes, but consignment proved to be very tricky for both CMC and our customers – currently
reverting from it. Conditions: a good MRP system and pulling the parts as planned
irrespective to other delays.
4) In case of part defect how fast can the part be replaced and the resolution been offered?
Replacement of the parts within 1-2 days if CMC has stock // 2 weeks if to make.
Require the return of the lot for sorting.
Additional Information / Confirmation
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
5) Total production capacity available for Parker - what is the current status? In this package we
intend to have in production more than the parts listed in the excel spreadsheet.
See Paragraph “CMC’s Available Capacity” above.
If CMC receives equipment form customer – capacity becomes a secondary issue.
6) Summarize your firm’s competitive advantage over all other providers in general and in
particular for the scope of work requested in this RFP.
Not know exactly the position of the other providers, but we know that other significant
providers loose business to CMC.
While located in a low labor cost country (LLCC), CMC produces high-precision parts and
succeeded to maintain 0 defects for many years. Also, CMC’s new location created the
infrastructure that will allow an accelerated growth.
7) List and specifically describe the experience your firm has in providing the services called for in
this RFP. Include the number of clients, length of service and detailed scope.
This was mostly detailed in the presentation above.
8) Based on your experience, inform us of your forecasted timeline required to qualify a large
(please be specific on the qty) number of part references detailed in this RFQ.
It really depends on the diversity, complexity, need for special tooling and gages.
If equipment could be relocated by Parker to CMC, then volume and speed could be greatly
improved.
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
Relocation of a production line
� Relocating vs. outsourcing + auctioning the equipment� Outsourcing is not an effortless and not risk-free process.� Any supplier will include equipment depreciation in the price.� Separated pieces of equipment would be worth less than a full line
with a purpose.(all five machines in the pictures (all less than 30,000 hrs), purchased for €600K)
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
Relocation of a production line
� Cost gains form a relocation:� CMC’s prices are 47 % less if equipment is supplied.
(€467,000 savings for each €1M/year worth of parts)� Expected gain form the sale of equipment…XXX…..fill in please…� Pay-off period = XXXX / 467,000 / Yearly value of spools.
� Project management considerations� Training (operators, maintenance, QA)� Transfer/ qualify sources… (purchasing, maintenance)� Prepare location.
Connecticut Manufacturing Co. S.A. - Presentation to Parker – Boras, March 27, 2012
Q & A