The CWM OEM eNewsletter from Chicago White Metal Casting and its CNC & Contract Mfrg. Divisions

Issue No. 2, Summer 2005
 


IN THIS ISSUE

Advanced Magmasoft® Process Simulation
Licensed by CWM for Die Casting




Chicago White Metal Casting has upgraded its in-house process simulation technology to the powerful Magmasoft® high-pressure die casting simulation software system. It enables more rapid optimization of die casting process parameters prior to die construction for the highest-quality casting results.

Interfacing with customer CAD files, extensive databases, and its 3D modeler, the new software allows rapid analysis of a product’s design, tooling, and process variables for optimum first-piece success. CWM engineers believe that the Magmasoft system is, today, the best predictor of the performance of a die casting die design. It provides a best estimate of the mechanical properties that can be expected in the final cast part.

The bottom line for OEMs is reduced lead time, improved quality assurance, and lower manufacturing costs. Arrange a visit to CWM to see CWM’s Magmasoft workstation in action.

To arrange a CWM Plant visit, and see a Magmasoft metal flow simulation, contact your CWM Regional Sales-Engrg Representative or the CWM Sales Dept.


Manufacturing: When Should It Stay
or When Should It Go Offshore?


The following article is based on excerpts from a story on this subject in the April 18, 2005 issue of Design News, which discusses the recent report on the cost of offshore manufacturing in China by Nicholas Dewhurst, V.P. of the product design consulting firm Boothroyd-Dewhurst, and David Meeker, who has a 20-year background in design engineering and consulting, and is also now a teacher at M.I.T.
The conclusions apply to any low-cost labor market.

The authors state in the study that many companies pursue cheap labor without recognizing that labor can make up just a small fraction of total manufacturing costs for many products. Looking back at 10 years of design-for-manufacturing cost-reduction work, Dewhurst estimates that labor costs for typical product assemblies are just four percent, versus 72 percent for parts and material costs, and 24 percent for overhead.

In addition to overestimating labor costs, a number of costs associated with offshore sourcing are not fully added to the calculation: often overlooked, according to the report, are shipping costs, especially shipping losses, travel, communication, and vendor selection. Also often missing are the costs of dealing with engineering and marketing changes, higher prices for certain materials offshore, legal work, new workforce training, theft and piracy. And finally, the cost of poor quality that can require constant vigilance to maintain.

Dewhurst and Meeker make the case that all of these added and hidden costs come to, conservatively, at least 24 percent of final manufacturing costs, and for many products, lower labor rates cannot cover these added expenses.

The study argues for leveraging product reengineering to create lower cost product designs. Part count reduction resulting in significant cost savings should be at the heart of such product redesign programs. Low offshore labor rates are often mistakenly viewed by many companies as the easier alternative to large unit cost savings.

What about redesigning the product for lower costs and then offshoring it? They caution that the newly optimized design will still be subject to the extra 24 percent offshoring costs.

CWM would point out that die casting, along with plastic injection molding, is a primary manufacturing process that can deliver substantial unit cost savings through product redesign. For many products, where the properties and look and feel of metal are important, advanced die casting technology can dramatically reduce part counts and improve product performance.

The North American Die Casting Assn. has published its own study, "The Hidden Costs of Offshore Sourcing." For a copy, contact your CWM Regional Sales-Engrg Representative, or request a copy from the CWM Sales Dept.


Significant Improvement Achieved
in On-Time Delivery Record


Several years ago CWM identified client delivery performance as a service area requiring improvement and established annual goals that continually raised the bar.

Through weekly order status meetings, where all department heads come together to proactively review upcoming requirements, plus the efforts of a dedicated team and advancements in technology, we have realized significant improvements in our delivery record. For 2005 we established an on-time delivery goal, as measured against customer acknowledgments, of 96%. As of March of this year, CWM's on-time delivery performance stands at 95.4%.

We feel that the efforts we have focused on in meeting client delivery requirements are on the right track.



Major Reductions in Chemical & Process
Water Use, Strong Recycling Efforts
Scored

As a charter member of the U.S. EPA’s National Environmental Performance Track program, CWM in March of this year submitted its annual report detailing the progress the company has made in its new 3-year commitment, as well as in its ongoing commitments, to environmental initiatives.

The long-term goal of the program is to enable strategies leading to significant reductions in pollution, waste, environmental and human health impacts, with a decrease in regulatory burdens. CWM's latest report to the Performance Track program included:

Reductions in Chemical and Process Water Usage
Reductions of 21% in the amount of die casting die lubricant used in the aluminum die casting department and of 50% in the amount of SF6 gas used in the magnesium die casting department, despite increased production in both departments; Elimination of approximately 4,000 lbs. per year of chemicals used to treat process water through the installation of a new environmentally friendly process water system; Re
duction by 22% in the amount of process water used company wide.

Materials Recycling Activity
Recycling of 9,300 lbs. of magnesium machining chips through processing into small, solid blocks used for desulfurization in steel production; Recycling of 10,000 lbs. of office paper, 12,000 lbs. of corrugated materials, 1,000 lbs. of plastic stretch film, 71,000 lbs. of steel, and 445 wood pallets.


Chicago White Metal was the first die caster to achieve ISO 14001 registration for its environmental management system and has served as a mentor facility for the EPA to the die casting industry.


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Back to Top
 
Magmasoft Simulation
Process Licensed by CWM
 
Manufacturing: Should it
Stay or Go Offshore?
 
Significant Improvement in
On-Time Delivery Record
 
CWM EPA Report: Chemical,
Usage Down, Recycling Up
 
Design Planning Guide,
Seminar Agenda Available
   
    DIE CASTING DESIGN
OEM PLANNING GUIDE

CWM's Preplanning Guide aids OEM engineers in custom die cast part design that optimizes production. It provides direct links to a wide range of industry and CWM resource documents and is available as a printable PDF page.
For a PDF of the "Die Casting Design Preplanning Guide," Click Here, or contact your CWM Regional Sales-Engrg Representative
   
OEM ON-SITE SEMINARS
ON DIE CASTING DESIGN


A custom-tailored CWM design seminar, held on-site at your company, can aid your product designers, engineers, purchasing and QC managers in capitalizing on today's advanced die casting capabilities to achieve lower unit costs and improved performance.
For CWM OEM "On-Site Design Seminar" details, Click Here, or contact your CWM Regional Sales-Engrg Representative
   
ERIC TREIBER BECOMES
CWM's PRESIDENT & COO


Eric Treiber was appointed President and Chief Operating Officer of Chicago White Metal Casting, Inc. He becomes the third generation to head the company, founded by his German immigrant grandfather, Walter G. Treiber, Sr., in a Chicago loft in 1937. Walter G. Treiber retains the positions of CEO and Chairman of the Board.
   
CWM SOLUTIONS is published periodically by Chicago White Metal Casting and its CNC and Contract Manufacturing Divisions

Chicago White Metal
Casting, Inc.

Certified Al, Mg & Zn Die Castings, and Miniature Zn Die Castings
www.cwmdiecast.com
sales@cwmtl.com
phone: 630-595-4424

CNC Machining Technologies
www.cnc-technology.com
sales@cnc-technology.com
phone: 630-238-1390

CWM Contract Manufacturing
www.cwm-contractmfrg.com
sales@cwm-contractmfrg.com
phone: 630-595-4424

EXCELLENCE IS EXPECTED
ISO 9001 & ISO 14001
Registered Management Systems

Charter member of the
EPA National Environmental Performance Track Program


Member:
North American Die Casting Assn., International Magnesium Assn.

(c)Copyright 2005, Chicago White Metal Casting, Inc., All Rights Reserved