Case Study-Aluminum Die Casting Sourcing

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Aluminum Die Casting Sourcing Case Study

Agenda

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1.

Objectives

2.

Approach

3.

Result

2

Objectives and approach DS Approach consists in the following work steps:

Context

1. Demand Analysis: Work with the Company to define and understand the products and requirements (specs, volumes, materials, production technology requirements) 2. Supply Market Analysis : Identify long list of potential suppliers in the selected markets by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.

3. Telephone Pre-screening : Selection of suppliers to be included in the RFI/RFP process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, minimum company size, interest in participating) 4. Administer the NDA: NDA template authorized by Vossloh that will be distributed to the suppliers who is willing to attend the RFI-RFQ 5. Develop RFI/RFQ : Prepare an RFI/RFQ document, with an aligned Balanced Scorecard that has the objective to pre-qualify the competitiveness and capabilities of the suppliers, including: Background, financial, Client and product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability, R&D capability.

6. Conduct RFI/RFQ Administration : The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant suppliers, with telephone follow-up to push for maximum participation.

7. Analyze RFI/RFQ Responses : Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report which profiles & objectively ranks the suppliers by capability and competitiveness, including a recommendation for those to be audited.

Objectives: • Identify new potential competitive suppliers.

Categories: • Aluminum Die Castings Geographical scope: • China, India, Thailand, Poland, Slovenia, Turkey and Italy Deliverables: • Supplier database • RFI-RFQ template • RFI-RFQ analysis report • Supplier Profiles and recommended suppliers for Client to audit

© 2016 Dragon Sourcing. All rights reserved.

3

The project was conducted in a 12 weeks period.

Step

Who

0

Kick off

1

Demand Analysis

2

Supply Market Analysis

DS

3

Telephone pre-screening

DS

4

Develop the RFI-RFQ

5

Conduct NDA Administration

DS

6

Conduct RFI/RFQ Administration

DS

7

Analyze RFI/RFQ Responses

Week Week Week Week Week Week Week Week Week Week Week Week Week 0 1 2 3 4 5 6 7 8 9 10 11 12

Client/DS

Client

Client/DS

Client/DS

Today Not started

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4

Started

Finished

Holiday

Milestone

Agenda

Š 2016 Dragon Sourcing. All rights reserved.

1.

Objectives

2.

Approach

3.

Result

5

434 aluminum die casting suppliers were identified, at the end we collected 29 RFI/RFQs Aluminum Die Casting Step

China

India

Thailand

Poland

Slovenia

Turkey

Italy

Total

187

67

25

48

47

23

37

434

-

-

-

2

-

-

3

5

# DS will contract

187

67

25

46

47

23

34

429

Supplier called

187

67

25

46

47

23

34

429

Shortlisted supplier after call

58

15

2

4

10

4

6

98

NDA sent

58

15

2

4

10

4

6

98

NDA received

29

13

4

10

4

5

64

RFI/RFQ Sent

29

13

4

10

4

5

64

RFI/RFQ received

13

4

2

5

2

3

29

Total number of suppliers # Client contacted before

Š 2016 Dragon Sourcing. All rights reserved.

0

6

Finished

In process

Not started

2 suppliers quote all 38 items in the RFI/RFQ. #

Supplier name

Country

1st BU

2nd BU

3rd BU

4th BU

Total

1 2 3 4 5 6 7 8

Client Status Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8

China China China China Poland China Poland China

25 25 25 25 24 25 25 22 23

2 2 2 2 2 0 2 2 2

9 9 9 6 4 3 1 3 0

2 2 2 2 2 2 2 2 2

38 38 38 35 32 30 30 29 26

9

Supplier 9

Italy

10

0

9

2

21

10 11

Supplier 10 Supplier 11

Italy China

13 13

0 2

6 0

0 2

19 17

12

Supplier 12

Slovenia

7

1

7

0

15

13 14 15 16

Supplier 13 Supplier 14 Supplier 15 Supplier 16

India China India China

9 3 8 8

０ 1 0 0

0 5 1 0

2 0 0 0

11 9 9 8

For items not quoted

Need 3D drawing for the other 3 items.

Need 3d drawing for the other 6 items. can't produce the other 8 items.

For France items need 3D drawing to quote. can't produce the other 9 items. can't produce the other 12 items.

Price doesn’t include machining. Supply to Client indirectly. Can produce most of remaining items.

Can produce more, but at this phase only quote 17 items. can't produce the other 21 items. can‘t produce the other 23 items currently, supply to Client indirectly through Hidria. can't produce the other 27 items.

Can produce all, but at this phase only quote 9 items.

Can produce all, but at this phase only quote 9 items.

Can produce all, but at this phase only quote 8 items

17

Supplier 17

Slovenia

0

0

6

2

8

can't produce the other 30 items.

18

Supplier 18

China

1

0

6

0

7

can't produce the other 31 items.

19

Supplier 19

India

0

0

6

0

6

can't produce the other 32 items.

20 21 22

Supplier 20 Supplier 21 Supplier 22

Turkey China China

4 5 4

0 0 0

2 0 0

0 0 0

6 5 4

Can produce all, but at this phase only quote 6 items.

Can’t produce the other 33 items.

Can produce all, but at this phase only quote 4 items.

23

Supplier 23

Slovenia

1

0

2

1

4

Can produce 17 items but need feedback on offer

24

Supplier 24

Slovenia

0

0

4

0

4

Can’t produce other 34 items

25

Supplier 25

Slovenia

0

0

2

2

4

Can produce 15 items but need feedback on offer

26

Supplier 26

Italy

2

0

1

0

3

27 28 29

Supplier 27 Supplier 28 Supplier 29

India China Turkey

0 0 1

0 0 0

3 0 1

0 2 0

3 2 2

Eventually some tolerances have to be discussed, but on a first analysis all items can be produced. can‘t produce the other 35 items.

Can produce all, but at this phase only quote 2 items.

Can produce all, but at this phase only quote 2 items.

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7

Details reason

Can’t meet the machining requirement.

Can’t meet the machining requirement.

The design is too complicated for them to produce.

Need more clarification and missing information on the 3D drawings Can’t meet the machining requirement.

Need 0,5 mio machine investment . If comes to realization for offered items they could invest with contract The product is too large to their current capacity.

Small items (0,5kg) and small quantites (5.000) not possbile to produce because of too big machines. Electroindustry items are not possible to produce at the begining due lack of experience. They could add to offer large and heavy aprox 12 items but need feedback on qouted items. We are invited to visit company.

The design is too complicated for them to produce The product are too large and complicated for their equipment to produce.

The product design is difficult for their equipment to produce.

Other items are too big for their machines (max.850t-6.000gr). Have only aluminium die castings and dont have gravity/iron casting.

Too busy on many inquiries, need feedback of existing quotation provided.

If acceptable they can offer other items except co-casting items as they have no experience and production on machines 1500-1700t as they are occupied.

Their focus is on items 0,5-4kg and productionseries of 50.000-500.000 items

The material used to cast products is not under their range.

18 suppliers provide detailed cost breakdown: material, casting, coating, packaging, overhead and profit.

Suppliers material price and cost breakdown summary #

Supplier name

Country

Material price/pc

Casting cost / pc

Machining cost/pc

Coating cost/pc

Packaging/pc

Overhead and Profit/pc

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10 Supplier 11 Supplier 12 Supplier 13 Supplier 14 Supplier 15 Supplier 16 Supplier 17 Supplier 18 Supplier 19 Supplier 20 Supplier 21 Supplier 22 Supplier 23 Supplier 24 Supplier 25 Supplier 26 Supplier 27 Supplier 28 Supplier 29

China China China China Poland China Poland China Italy Italy China Slovenia India China India China Slovenia China India Turkey China China Slovenia Slovenia Slovenia Italy India China Turkey

v v v v v v v v v v v v v v v v v v v v v v v v -

v v v v v v v v v v v v v v v v v v v v v v v v v -

v v v v v v v v v v v v v v v v v v v v v v v v

v v v v v v v v v v v v v v v v v v v v v v v v v

v v v v v v v v v v v v v v v v v v v v v v v

v v v v v v v v v v v v v v v v v v v

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8

Saving range from € 0.78-2.06M ( 23%-42%) .

3rd BU suppliers DDP spend & items quoted Total spend(M EURO)

Items quoted

10

10

9

9

9

9

8.71

9

9

9 9

9

8

8

7

7

7

M EURO

6 5

6

6

4.77

6

6

5.36 5

3.99 4 3

6

3.70 3.85

3.36

2.71

2.93

5

4.59

3.57 3.56 4

4

4

3.28

3.18 2.74

3

3

3.05 3

2.46 2.31

2.01 2

1.63

2 0.50

3 2

2 1.55 2 1.04

0.87

1

6

0.31

1 0.62 1

1

1

1

0

0

Current supplier Suppliers with saving

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9

Suppliers without saving Suppliers don’t quote all items

The high variability in €/KG between suppliers is indicative of both difference is relative cost positions but probably also of differences in the understanding of the specs 0

1

2

3

4

5

6

7

8

9

10

11

12

13

Product KG cost ( €/KG) 14 15 16 17

18

19

China China China China China China China China China China China China China China China India India India India

20 21 22 23 24 25 26 Turke Turke Slov Slov Slov Slov Slov y y

27

28

29

Italy

Italy

Italy

30

Divisi # on

Part no

Client

Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl Suppl 1st ier 1 ier 2 ier 3 ier 4 ier 5 ier 6 ier 7 ier 8 ier 9 ier 10 ier 11 ier 12 ier 13 ier 14 ier 15 ier 16 ier 17 ier 18 ier 19 ier 20 ier 21 ier 22 ier 23 ier 24 ier 25 ier 26 ier 27 ier 28 ier 29 best

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8 Item 9 Item 10 Item 11 Item 12 Item 13 Item 14 Item 15 Item 16 Item 17 Item 18 Item 19 Item 20 Item 21 Item 22 Item 23 Item 24 Item 25 Item 26 Item 27 Item 28 Item 29 Item 30 Item 31 Item 32 Item 33 Item 34 Item 35 Item 36 Item 37 Item 38

4.11 6.34 5.71 3.67 3.31 5.23 11.37 4.53 3.80 3.24 3.67 12.55 6.54 10.62 4.79 7.42 2.43 2.16 2.44 3.16 2.09 2.97 2.18 2.70 7.77 10.57 11.65 29.00 21.07 21.07 4.49 4.72 9.93 9.56 10.55 8.88 6.26 6.26

9.46 11.09 7.29 5.03 4.89 4.70 3.41 14.89 5.91 7.25 6.16 6.59 13.21 18.31 9.47 13.92 4.91 5.35 7.27 9.52 6.42 8.51 5.44 7.10 5.63 6.80 7.79 7.68 11.32 11.32 4.49 4.72 9.93 3.75 4.46 4.14 5.53 5.53

1st BU

2nd BU

rd

3 BU

4th BU

4.02 5.88 4.77 6.13 4.14 4.11 5.20 7.14 5.90 7.38 6.51 6.33 4.67 7.02 5.02 7.46 4.37 4.08 4.20 6.30 4.09 6.48 3.80 5.76 4.55 4.37 4.95 21.32 9.75 9.75

3.95 6.76 3.70 3.93 3.49 3.54 4.29 3.89 4.10 6.38 6.97 5.00 11.56 10.08 6.99 8.71 4.48 3.97 4.81 4.45 3.92 4.93 3.89 5.36 4.32

9.92

3.62 4.42 3.77 3.54 3.46 3.44 3.57 3.58

3.37 5.39 4.64 4.47 4.00 3.88 6.63 4.57 15.53 8.99 5.11 6.66 7.02 7.02 7.42 5.99 3.99 3.99 4.26 4.26 3.79 3.79

5.05 14.26 8.42 7.38 5.87 6.72 9.06 6.65 9.77 10.79 7.68 10.76 10.76 8.05 8.05 11.76 9.24 7.81 7.81 10.68 10.68 7.68 7.68

4.31 8.19 6.11 8.30 7.77 6.47 7.61 7.04 8.65 7.76 9.15 8.27 10.62 14.28 9.78 11.95 10.21 8.71 6.40 7.87 6.67 8.12 6.52 7.51

4.19 4.32 4.90 6.62 4.95 5.96 4.48 4.43

10.57 9.71 22.00 21.00 12.37 24.54 19.31 15.54 20.32 57.01 34.51 34.86

4.40 4.76 4.06 4.40 9.16 5.17 5.38

4.55 5.70 5.54 7.48 5.31 6.07 5.58 5.53 5.23 6.24 5.45 6.85 5.69 7.73 6.76 5.88 6.52 7.90 10.52 13.33 5.42 6.31 6.13 7.14 6.49 7.62 6.05 6.89 6.08 7.89 7.15 18.25

7.09 6.30 5.81 6.09 4.74 6.66 6.81 6.66 6.81

7.86 15.76 4.58 7.86 15.76 3.56 6.87 8.65 4.33 9.83 5.69 3.72 4.13 4.33 5.78 3.72 4.13

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6.63 6.63

9.06 10.67 5.45

11.12 9.81

2.97 7.31 5.79 6.34 3.65 2.72 2.42 3.18 3.92 3.09 2.77 4.50 5.29 3.45 7.41 11.41 4.84 9.22 4.06 3.19 6.09 3.77 3.77 3.26 4.03 3.24 3.83 3.21 29.30 4.72 5.54 7.46 9.75 10.50 5.40 1.58 4.96 1.26 11.14 2.29 7.40 3.12 8.24 3.81 3.58 4.38 4.38

10

4.93 5.41 4.17 6.36 3.55

4.67 9.11

5.49 6.94 4.54 8.41 4.49

6.92 8.36

6.24

15.96

6.67

11.02

3.32

3.78 9.31 4.19 3.87 10.11 4.33

6.93 3.64 7.45 7.52

6.27 15.06 20.85 20.95

9.05

31.50 4.89 4.74 4.45 7.47 5.70 5.70

12.31 23.00 19.55 10.55 8.27 8.27 4.71 6.15 2.91 3.77 3.08 6.00 6.09 16.74 6.27 7.01 7.03 10.56 9.01 7.93 4.60 4.65 6.66 6.21 6.84

46.51 26.38 21.00 11.00 8.42 3.06

7.05 7.05

4.74 4.53 2.73 2.73 6.19 7.10 3.75 3.75 5.50 3.16 3.16 8.59 2.72 7.05 2.42 3.18 3.41 15.86 2.83 2.83 8.80 2.77 3.20 3.20 3.24 3.24 3.45 11.48 4.67 18.16 6.62 7.73 4.84 11.62 5.96 8.50 4.06 6.92 3.19 3.32 3.77 3.29 3.26 3.29 3.29 3.04 3.04 3.04 3.04 3.21 4.37 4.95 31.34 31.70 6.80 6.80 23.54 6.65 6.65 23.54 6.60 6.60 6.84 4.78 1.58 5.89 3.83 1.26 6.46 5.93 2.29 3.34 3.12 3.34 3.34 2.92 2.92 3.23 3.23 3.23 3.23

31

32

2nd Avera best ge 2.97 4.57 4.17 6.93 3.55 5.24 3.54 5.57 3.46 4.86 3.44 4.59 3.57 5.11 3.09 7.10 4.10 5.89 4.19 7.23 4.32 7.15 5.00 5.98 4.90 9.17 7.02 11.62 4.95 7.67 7.02 9.72 4.37 6.98 3.97 6.18 3.77 5.57 3.99 6.20 3.29 5.47 4.03 6.20 3.24 4.75 3.79 5.72 4.32 6.22 4.72 12.60 5.38 12.02 7.46 21.65 8.27 16.17 8.27 17.04 2.91 5.44 3.06 4.55 5.93 6.96 3.34 7.28 3.81 7.43 3.56 4.86 3.72 5.74 3.72 5.50

33

Max 9.46 14.26 8.42 8.59 7.77 6.72 7.61 15.86 8.80 15.53 10.79 8.27 15.96 18.31 11.02 13.92 11.76 9.81 9.31 9.52 10.68 10.68 7.68 7.68 10.57 29.30 24.54 57.01 34.51 34.86 11.00 8.42 11.14 16.74 15.76 8.65 9.83 7.05

Product price €/KG variation chart.

Supplier quotation per KG in EURO

60.00 50.00 40.00 30.00 20.00 Supplier 28

10.00

Supplier 24

0.00

Supplier 20 Supplier 16 Supplier 12 Supplier 8 Supplier 4 Client current

0.00 -10.00

© 2016 Dragon Sourcing. All rights reserved.

10.00 -20.00

20.00 -30.00

30.00 -40.00

11

40.00 -50.00

50.00 -60.00

Score card used to rank suppliers Business information

Year Founded

Weight of criteria

10%

Turnover in 2015 in USD

10%

Number of employees

10%

Export experience

10%

Handle DDP quote Supply to Automotive industry

10% 10%

Client in Denmark, France, Finland, China

10%

Profile of Top Customers

10%

Provide company presentation

10%

Cooperation during RFI/RFQ

5%

Completeness of RFI/RFQ

5% Subtotal

Production Experience of EN AC 44300 Experience of EN AB 44300 Number of 350T-550T casting machines Number of 750T-1200T casting machines Number of 1250T-1600T casting machines Number of 2000T casting machines Number of CNC 3 axes

Number of CNC 4 axes

Scoring 1=After 2010 2=Between 2006 to 2010 3=Between 2000 to 2005 4=Between 1995 and 1999 5=Before 1995 1=Less than 5M 2=5-10M 3=10-20M 4=above 20M 1= < 100 2=100-200 3=201-500 4=>500 1=Less than 5 years 2=5-10 years 3=More than 10 years 0=No,1=Yes 0=No,1=Yes 0=No 1=1 country 2=2-3 countries 3=All 4 0=Not provided 1=Local customers 2=National customers 3=International customers as Client 0=No,1=Yes 1= Poor 2= Satisfactory 3= Excellent 1= Poor 2= Satisfactory 3= Excellent

100% Weight of Scoring criteria 4% 0=No,1=Yes 3% 0=No,1=Yes 0=0 , 1=1-5 , 2=6-10 , 3=11-20 , 10% 4=>20 10% 0=0, 1=1-2 , 2=2-5 , 3=>5 5% 0=0 , 1=1-2 , 2=2-5 , 3=>5 5% 0=0 , 1=1-2 , 2=2-5 , 3=>5 0=0 1=1-2 6% 2=2-5 3=>5 0=0 1=1-2 6% 2=2-5 3=>5

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machining accuracy (IT level)

5%

1=IT 6 2=IT 5 3=IT 4

3

Assemble for client

5%

0=No,1=Yes

1

Coating in house

3%

0=No,1=Yes

1

Chroming in house

3%

0=No,1=Yes

1

pattern making / Mold fabrication in house

5%

0=No,1=Yes

1

offer the support of product design and engineering

5%

0=No,1=Yes

1

Be able to provide Process Flow Charts

3%

0=No,1=Yes

1

Be able to provide Computerized records for statistical process contro

3%

0=No,1=Yes

1

Be able to provide Capability Studie

3%

0=No,1=Yes

1

Be able to provide Tooling Maintenance and Contro

3%

0=No,1=Yes

1

Be able to provide Production management techniques to make the process as cost-effective as possible

3%

0=No,1=Yes

1

Number of items quoted

10%

1= Less than 10 items 2= 11-20 items 3=21-30 items 4=>=31 items

4

Max Score per criteria

5

4

4

3 1 1 3

3

1

Subtotal

100%

Quality system

Weight of criteria

Scoring

Max Score per criteria

ISO 9001

10%

0=No,1=Yes

1

ISO 14001

5%

0=No,1=Yes

1

TS 16949

15%

0=No,1=Yes

1

Coordinate Measuring Machine (CMM) in house

6%

0=No,1=Yes

1

Optical Comparator in house

6%

0=No,1=Yes

1

Max Score per criteria

Hardness Testing in house

6%

0=No,1=Yes

1

1 1

Pressure Testing in house

5%

0=No,1=Yes

1

Tensile Testing in house

5%

0=No,1=Yes

1

Spectrometer Chemical Analysis in house

6%

0=No,1=Yes

1

X-Ray detection in house

6%

0=No,1=Yes

1

Incoming material inspection record

6%

0=No,1=Yes

1

online inspection record

6%

0=No,1=Yes

1

final inspection record

6%

0=No,1=Yes

1

Non-destructive test records

6%

0=No,1=Yes

1

Can your company trace casting, machining and coating ?

6%

0=No,1=Yes

1

3

3

4 3 3 3 3

3

Subtotal

12

100%

RFI Score

90

RFI Ranking

1

Supplier profile example COMPANY INFORMATION Company Name

xxx

Address

xxx

Town

xxx

Province

Štajerska

Country

Slovenia

Company Website

Can you handle DDP quote?

Yes

What‘s the percentage of aluminum casting production in your company?

75%

Does your company supply aluminum die casting part to right listed industry?

xxx Does your company have client in right listed countries?

CONTACT PERSON INFORMATION Contact Person

xxx

Title

Sales manager

Email

xxx

Tel

xxx

Mobile phone

xxx

Automotive

Motor

Compressor

Refrigerator & air conditioner

Yes

No

Yes

Yes

Denmark

France

Finland

China

Yes

Yes

No

No

2015

2014

2013

2012

36

32

Domestic

Europe

Turnover (in Million USD)

% Sales exports to the main markets (US, Europe)

1

98

34 North America 0

Company Background What date was your company founded?

Customers

1924

Ownership (State Owned/ Private/Foreign Investments/Joint venture)

xxx

Registration capital (USD) What is the workfloor size (m²)?

How many employees do you have?

Who are your top 3 Customers?

11.312.275 71411 520 Sales & Management

R&D Staff

Quality Control

Factory workers

How many people do you have in these positions?

7

14

22

351

How many people can speak English in each department?

7

Do you have export license ?

8

11

60

Do you have capacity to support documentation and special requirements for overseas shipping?

Yes

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Country

1 Product type of end usage

Automotive Sweden, Italy

-

xxx

Automotive

-

xxx

Automotive

Germany Germany, Czech

Do you have policy to cover environment and conservation?

Yes

Do you have policy to cover health and safety?

Yes

Do you have policy to cover human rights?

Yes

Do you have policy to cover business ethics and antiBribery?

Yes

50

13

Rest of the World

xxx

Corporate Responsibility

Yes

How many years of export experience do you have?

Industry

47

-

Supplier profile example (continued) Technolgy & Process What's your company's main products?

EN AC 44300

Housing, Wabco hauba EN 1706 AC-Al EN AB 44300 Si9Cu3Fe

EN 1706 AS9U3Y40

Do you have experience of casting right listed material? (Yes/No)

Yes

Yes

No

No

Actual annual casting production in 2015 by right listed material？

900t

900t

0t

0t

1250T-1600T

2000T

350T-550T 750T-1200T How many right listed pressure aluminum die casting machines does your company have?

5

6

5

0

The aluminum casting machine brand

Bühler, OMS

Bühler

Bühler, Idra

-

Max casting weight of the machine(g)

3.000

5.000

9.000

-

CNC 4 axes

Vertical CNC machine with turning rotative plate

CNC turned CNC 3 axes machine How many CNC machining center does your company have? machining accuracy (IT level) The CNC machining center brand

Can you do the right listed test equipment in house?

Capability Studies

Yes

Drawing and Specification Control

Yes

Tooling Maintenance and Control

Yes

Production management techniques to make the process as cost-effective as possible

Yes

Yes

Do you have equipment list? (Yes/No) Quality Control and Testing Equipment

Yes / No Date of Certificate Certifying Org. What quality and environmental registrations do you have?

ISO 9001

Yes

25.3.2015

Bureau Veritas

ISO 14001

Yes

16.9.2014

Bureau Veritas

TS 16949

Yes

28.5.2015

Bureau Veritas

Test

Yes / No Yes

7

2

16

1

Coordinate Measuring Machine (CMM)

0,001

0,001

0,001

0,001

Optical Comparator

Yes

Nakamura, Traub, Romi

Chiron, EMAG, SW, SAS, Makino

Hardness Testing

Yes

Young

EMAG

Pressure Testing

Yes

Can you do the right listed test equipment in house?

What's the annual machining capacity ( pcs )?

more than 5 mio pcs

Tensile Testing

Yes

Can your company assemble parts for client?

Can your company do coating in house?

Can your company do chroming in house?

Does your company make mould in house?

How many employees in your company is qualified for CAD?

Yes Yes Yes Yes

Spectrometer Chemical Analysis

Yes

X-Ray detection

Yes

6

Can your company offer the support of product design and engineering?

Can you do the right listed test equipment in house?

Yes Process Process Flow Charts Computerized records for statistical process control

© 2016 Dragon Sourcing. All rights reserved.

Yes/No Yes Yes

Do you do incoming material inspection? Do you keep written record?

Do you do online inspection? Do you keep written record?

Do you conduct final inspection? Do you keep written record?

Can your company provide Non-destructive test records?

Can your company trace casting, machining and coating ? If yes, please describe your process.

Do you accept 3rd party QC or testing?

14

Yes Yes Yes Yes

Casting and Machining YES, Coating NO No

Supplier profile example (continued) FACTORY OVERVIEW AND WORKSHOP PICTURES

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15

Total 29 suppliers are scored and ranked with an average score of 72.

No.

Supplier name

Country

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10 Supplier 11 Supplier 12 Supplier 13 Supplier 14 Supplier 15 Supplier 16 Supplier 17 Supplier 18 Supplier 19 Supplier 20 Supplier 21 Supplier 22 Supplier 23 Supplier 24 Supplier 25 Supplier 26 Supplier 27 Supplier 28 Supplier 29

Slovenia China China India China Slovenia Slovenia China China Turkey India China China China India China China India Turkey China China Slovenia China Italy Slovenia Italy Italy China China

Š 2016 Dragon Sourcing. All rights reserved.

Business Production information 19 17 16 18 15 18 19 14 15 19 20 15 14 18 14 16 13 13 16 14 15 15 14 14 16 11 9 13 7

31 32 33 28 34 29 24 31 25 23 25 25 29 29 26 23 26 24 20 27 20 20 22 20 19 17 20 20 8

Quality system

Score

Rank by score

1st BU

2nd BU

3rd BU

4th BU

Total items quoted

40 40 38 40 36 38 40 36 38 38 33 38 33 28 34 34 34 36 36 30 30 27 25 26 22 27 23 14 18

90 90 87 86 85 85 83 81 80 79 78 77 76 74 74 73 73 72 72 71 65 62 61 59 57 55 52 46 32

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

0 3 23 0 25 0 0 25 13 1 8 24 25 25 0 4 8 9 4 22 1 7 25 2 1 10 13 5 0

0 1 2 0 2 0 0 2 2 0 0 2 2 2 0 0 0 2 0 2 0 1 0 0 0 0 0 0 0

2 5 0 3 9 4 6 1 0 1 1 4 6 9 6 0 0 0 2 3 6 7 3 1 2 9 6 0 0

2 0 1 0 2 0 2 2 2 0 0 2 2 2 0 0 0 2 0 2 0 0 2 0 1 2 0 0 2

4 9 26 3 38 4 8 30 17 2 9 32 35 38 6 4 8 13 6 29 7 15 30 3 4 21 19 5 2

16

29 suppliers are score and ranked with an average score of 72, 19 suppliers are above the average.

Suppliers RFI score and items quoted Score

Total items quoted

100

40 90

38

90

87

86

85

38 85

35

35

83

81

80

80

79

78

77 32 76

74

30

74

73

73

72

72

71

30

30

29 65

62

26

61

60

59

25

57

55 21

52 19

46

20

17

40

15

15

13 9

20

10

9

8

8 6

4

3

4

4

2

0

Š 2016 Dragon Sourcing. All rights reserved.

6

7 3

4

5 5

0

17

10 suppliers are recommended for 3rd BU auditing based on (1) RFI score above average, (2) price/KG below average of â&#x201A;Ź12,3 (3) their ability to produce most items and (4) supply to Client 1st tier supplier.

3rd BU supplier recommendation considering RFI score, average KG cost and items quoted Score

Items quoted

Average KG cost (EURO/KG)

100 90

90 86

85

31.7

85

83

30

81

79

80

78

77

76

74

27.8

74

72

73

71

25

70

65

23.1

62

61

59

60

57

55

20

52 18.3

50

16.8

16.7

16.3

15

40 10.7

30 7.4

20

10

9.6

9.0

3

6.6

5.3 9 4

Š 2016 Dragon Sourcing. All rights reserved.

5

4.9

9

5

7.8

6.9

10 2

8.5

7.9

7.1 4.8

0

12.3

12.3

12.0

6

4 1

1

EURO/KG

90

35

6

6

6 2

1

18

3

9

7

6 3

1

2

0

Recommended supplier

Agenda

Š 2016 Dragon Sourcing. All rights reserved.

1.

Objectives

2.

Approach

3.

Result

19

Total 17 suppliers from China, India, Slovenia, Poland, Turkey and Italy are recommended for next steps with potential savings up to €4.83M or 34% Potential saving (M €)

Items quoted

No.

Supplier name

Score

Rank by score

1st BU

2nd BU

3rd BU

4th BU

Total items quoted

1st BU

2nd BU

3rd BU

4th BU

Total

1

Supplier 1

90

1

0

0

2

2

4

0.00

0.00

0.12

0.00

0.12

2

Supplier 2

90

2

3

1

5

0

9

0.00

0.00

0.18

0.00

0.18

3

Supplier 3

85

5

25

2

9

2

38

2.14

0.26

2.07

0.36

4.83

4

Supplier 4

83

7

0

0

6

2

8

0.00

0.00

0.74

0.00

0.74

5

Supplier 5

81

8

25

2

1

2

30

0.41

0.11

0.00

0.00

0.52

6

Supplier 6

80

9

13

2

0

2

17

0.02

0.24

0.00

0.42

0.68

7

Supplier 7

78

11

8

0

1

0

9

0.67

0.00

0.18

0.00

0.85

8

Supplier 8

77

12

24

2

4

2

32

0.25

0.00

0.00

0.04

0.29

9

Supplier 9

76

13

25

2

6

2

35

0.91

0.28

0.14

0.00

1.33

10

Supplier 10

74

14

25

2

9

2

38

0.62

0.16

0.88

0.09

1.76

11

Supplier 11

73

16

4

0

0

0

4

0.20

0.00

0.00

0.00

0.20

12

Supplier 12

73

17

8

0

0

0

8

1.39

0.00

0.00

0.00

1.39

13

Supplier 13

72

18

9

2

0

2

13

0.19

0.00

0.00

0.08

0.27

14

Supplier 14

72

19

4

0

2

0

6

0.00

0.00

0.00

0.00

0.00

15

Supplier 15

71

20

22

2

3

2

29

1.00

0.03

0.49

0.38

1.89

16

Supplier 16

62

22

7

1

7

0

15

0.05

0.00

0.11

0.00

0.16

17

Supplier 17

55

26

10

0

9

2

21

1.27

0.00

1.85

0.70

3.81

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20