Post on 15-Apr-2017
© 2008 Dragon Sourcing. All rights reserved1
Case Study – Wind Turbine Components
January 2012
© 2012 Dragon Sourcing. All rights reserved2
Agenda
1. Gear Components
2. C-Parts & Castings
3. Next Steps
Appendices
© 2008 Dragon Sourcing. All rights reserved3
A methodological screening of 34 Gear Components potential suppliers resulted in the invitation of 3 suppliers who quoted for a couple of references
34 34
5
5
73 3
1(refused NDA)
Identified Screened on thephone
Responses to RFI NDA signature Quotationsreceived
Visited
No reply, but wouldn't have passed this stage
Declined to participate
• Produce gear up to Ø1200-2000mm
• Can do the machining
• Size (employees & turnover)
• Production capabilities (Hobbing, Shaping & grinding machines)
• Testing capabilities
Supplier Identification
Phone Screening
Request for Information
Signature of NDA
Request for Quotation &
Analysis
Supplier Visit (eventually)
14
Key screening criteria
# of suppliers
High level profile of the 3 suppliers invited to quote
4
The 1st quotations received vary in a range of 30%
5
4 917 4 6165 837 5 556
1 831 1 993 2 709 2 580
5 904 6 399
8 001 7 970
2 6693 235
4 265 4 245
1 309 1 282
803 647
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Tianshan Heavy
Industry
Suzhou Asia
Pacific
Dalian Qiming
Tianshan Heavy
Industry
Suzhou Asia
Pacific
Dalian Qiming
Tianshan Heavy
Industry
Suzhou Asia
Pacific
Dalian Qiming
Tianshan Heavy
Industry
Suzhou Asia
Pacific
Dalian Qiming
100 pcs/year 300 pcs/year 100 pcs/year 300 pcs/year
Hollow shaft assembled Sun shaft
Sum of Material cost (EUR) Sum of Manufacturing cost (EUR) Sum of Margin (EUR)
See next page comments on these quotations
Detail of quotations
6
Va lue s
R o w La be ls
S um of M a teria l co st
(EU R )
Su m of M an ufa c tur ing
cos t (E U R)
S um o f M argin (EU R ) T o ta l (EU R )
H o llo w s ha ft as sem ble d100 p cs/yea r
Tians han He a vy Indu stry 4 917 5 904 10 821Suzhou A sia Pac ifi c 4 616 6 399 11 015Da lian Qim in g 5 837 8 001 1 309 15 147
300 p cs/yea rTians han He a vy Indu stry N ot Q uote dSuzhou A sia Pac ifi c N ot Q uote dDa lian Qim in g 5 556 7 970 1 282 14 808
S un sh aft100 p cs/yea r
Tians han He a vy Indu stry 1 831 2 669 4 500Suzhou A sia Pac ifi c 1 993 3 235 5 228Da lian Qim in g 2 709 4 265 803 7 777
300 p cs/yea rTians han He a vy Indu stry N ot Q uote dSuzhou A sia Pac ifi c N ot Q uote dDa lian Qim in g 2 580 4 245 647 7 472
© 2008 Dragon Sourcing. All rights reserved7
Agenda
1. Gear Components
2. C-Parts & Castings
3. Next Steps
Appendices
8466
32
12(Castings RFI, no NDA)
15 (signed)
12(Declined to respond)
7
Identified suppliers Reached and screenedon the phone
Invited to sign NDAprior to RFQ (1)
Responded to RFI/RFQ(1)
Visited
8
Out of 39 phone pre-selected suppliers, only 12 ended responding to the Castings & C-Parts RFI/RFQs; the remaining 27 declined
• Annual capacity>8000 tons (Castings) or >4000 tons (C-parts)• Number of employees>70-100 p.• Has experience with casting nodular (must have for Castings &
C-Parts) or grey iron (for C-Parts)• Automatic line (must have for C-part)• Heat treatment should be in house (much preferable for
Castings)
Castings RFI & C-Parts RFI/RFQC-Parts RFI/RFQ
Castings RFI
Main reasons:•Can't meet requirements•Insufficient capacity / too busy with current clients•Refuse NDA
Total :39
Key screening criteria
(2) RFI without prior NDA for Castings(1) NDA and RFI/RFQ for C-Parts only
Responses :12Declined: 15
1. Gear Components
2. C-Parts & Castings
2.1. Castings Suppliers2.2. C-parts Suppliers
2.3. Castings & C-parts Suppliers
2.4. C-parts quotations
© 2008 Dragon Sourcing. All rights reserved9
Agenda
Castings suppliers profiles – General Information
10
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7No. of employees 1000 220 130 200 1050 800 110Size of work floor (m²) 70 000 18 000 28 000 25 000 240 000 480 000 43 000
Turnover(RMB)2006 357 mio - start from 2008 25 mio - - 56 mio2007 430 mio 80 mio 36 mio 400 mio - 62 mio2008est. 580 mio 100 mio 5 mio - 500 mio - -
Sales breakdown (% of sales) in 2007
Domestic 60% 25% 30% 70% 25% 50% 100%Western countries 7% 3% 70% 10% 25% 25% Japan 10% 50% 0 5% 25% 25% Rest of the world 23% 22% 0 5% 25%
Experience in the wind gear industry N N Yes, for a spanish company N N N N
Top 5 clients
1Industry Oil field equipment Machine tool Reductor box Machine tool Machine tool Mould of motocar
Client Weatherford Mazak 、 Toshiba(Japan) SEW(Germany) Anyang xinsheng
machine tool MAZAK MITSUBISHI Shanghai filiale
Changchun No1 motocar
2Industry Crane Machine tool Machine tool Machine tool Generate
electricity Mould of motocar
Client LIFTKING OKK 、 SEIKI 、MAKINO(Japan)
Shenyang Zhongjie
Ningjiang machine tool GE Wartsila engine Baoding
Changcheng
3Industry Engineering
mechanism Injection machine CNC machine tool Compressor Gas engine Mould of motocar
Client TCM Milacron (US),LG (Korea) HAAS(US) Shanghai Fusheng
industry Wartsila Engine Kawasaki Heavy Industries, Ltd Beijing Xingyu
4
Industry Left fork Diesel engine for shipment Engine Compressor Machine tool
Client MITSUBISHI&CAT
yanmar 、 hsnshin (Japan) Toshiba,
MitsubishiHitachi air-conditioner Ingersoll rand
Shanghai third machine tool
factory
5
Industry Airport equipment Metallurgy Heavy machine Machine tool
Client Tengda Cincinnati(US) 、Danieli (Italy) From US, Italy Tektronix
Yancheng Hengli machine tool
factory
Certification ISO9001 & ISO14001
ISO9001 :2000 、 ISO14001 :
2004 、 ISO/TS16949 :
2002 、 GB/T28001-2001 、 BV
ISO9001 ISO9001 : 2000 ISO9001 : 2000 ISO14001 ISO9000 ISO9001 : 2000
Annual production capacity of big castings (tons) 70 000 12 000 24 000 8 000 30 000 19 000 5 000
Range (min-max) of castings you normally produce(kg) 30 ~ 10000 50-35000 200-30000 200-6000 100-30000 200-30000 20-20000
Most interesting suppliers
Castings suppliers profiles – Production Equipment
11
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7
Pattern workshopManual machines 10 in sub-contractor only make wooden pattern,
metallic pattern can be made in our sub-contractor
CNC-machining centres 0 in sub-contractor
1 CNC machine center,5 axes CNC gantry high speed milling machine
4, sub contracted
Melting Cupola / Induction furnaces 6
2 sets 7T cupola 、 2 sets 5T induction furnaces 、 1
set 15T holding furnace
2sets 10T/H Cupola 1 set 7.5T/H induction furnaces, can all use simultaneously
1 set 3T/h, 1 set 2T/h Medium frequency induction furnaces, 1 set 5T/h cupola
4 Induction furnaces
1set of 3t , 1 set of 7t, 3 sets of 10t cupola
1 set of 3ton, 2 sets of 15ton induction furnaces
1 set 5T/h cupola, 2 sets 4T/h medium frequence induction furnaces
Core making Coreshooters 25-500 litres 0
1 set 40T/H , 1 set 20T/H , 1 set 10T/H,
manually
Moulding Manual, semi-automatic,automatic
5 automatic vacuum molding line; 1 lost wax molding line; 1 manual
clay sand line; 1 furan line is being built now, should
be ready in June.
Manual production line with Furan sand resins
Manual, furan resins, 6ton ladle, 8ton ladle, 10ton
ladle
1 set 5T/h resin production line, 2 sets 10T/h resin production line
Manual production, Furan resin Manual line furan resins
1 production line with furan sand resin, 2 mobile resin
sand Mixer
Fettling Shot blasting 6 2 Rotating shot blasting 2 sets 10T, 1 set 30T
2sets of 3720 blast cleaning machine with hook, 1 set 3110 Blasting cleaning machine roller, a lot of manual used grinding wheels
1 shot-blast cleaning barrel 5 1 set 10T shot blasting, 1
set 16T sot blasting
Heat treatment
Furnaces with programmable controll
1
heat treatment kilns
Yes
Stress relieving 3 1 1 1 1 YesFerritizing YesNormalizing 1 sub-contracted Yes
Surface treatment Painting Y Y Y Y Y YesDipping machine YesDrying chambers
Machining
Machining centres 1
in sub-contractor
Machining items are being set up, there are already processing equipment: Gantry Planer, gantry
milling, end-milling and boring fall, and so on.
sub-contracted
Vertical turning machines 2 Y
3D-coordinate measuring
3D-coordinate equipment 1 1 1 for small size
Most interesting suppliers
Castings suppliers profiles –Technical experience & testing capabilities
12
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7You have experience with casting nodular ?( Y/N ) Y Y Y Y Y Y Y
You have experience with grey casting? ( Y/N ) Y Y Y Y Y Y Y
Number of people in the quality control department 100 15 10 12 40 20 4
Do you check all new patterns by 3D-coordinate measuring equipment? (Y/N)
Don't check every pattern by 3D-
coordinate measuring.
N N Wooden pattern manual test Y N N
Are you famiaiar with EN 12890 norm for patterns? (Y/N) no Y Y Y Y N
Do you have material chemical testing equipment: spectrometer? (Y/N) Y Y Y Y Y Y
20-channel direct-reading
optical spectrum analyzer
Do you use the spectrometer in every melt ?(Y/N ) Y Y Y Y Y Y Y
Do you have material laboratory for heat treatment?(Y/N ) Y N Y Y Y Y
If yes,
Do you have hardness tests?(Y/N ) Y Y Y Y Y Y
Do you have microstructure tests?(Y/N ) Y Y Y Y Y Y
Do you have paint thickness checking after surface treatment? (Y/N ) N
according to customer's requirement
N Y Y N N
Most interesting suppliers
1. Gear Components
2. C-Parts & Castings
2.1. Castings Suppliers
2.2. C-parts Suppliers2.3. Castings & C-parts Suppliers
2.4. C-parts quotations13
Agenda
C-Parts suppliers profiles – General Information
14
Supplier 1 Supplier 2No. of employees 84 320Size of work floor (m²) 20 000 20 000
Turnover(EUR)2006 46 mio 40 mio2007 57 mio 55 mio2008est - 75 mio
Sales breakdown (% of sales) in 2007
Domestic 60% 2%Western countries 35% 92%Japan 0 3%Rest of the world 5% 3%
Experience in the wind gear industry N Yes, Gear box, transmission
Top 5 clients
1 Industry Valve Gear boxClient SITI (Italy)
2 Industry Pump Gear box,transmissionClient LENZE (Germany)
3 Industry Construction mechanism fittings TransmissionClient INTERROLL (Danmark)
4 Industry Motocar fittings Auto partsClient General Motors
5 Industry Pump Spare partsClient Brisan
Certification ISO:9000:2001 ISO 9001:2000 TS16949Annual production capacity (ton) 4000 12000
Most interesting suppliers
C-Parts suppliers profiles – Production Equipment
15
Supplier 1 Supplier 2
Pattern workshop Manual machines in sub-contractor in sub contractorCNC-machining centres
Melting Cupola / Induction furnaces 1 medium frequency induction furnaces
Cupola 2 sets, induction furnaces 4 sets
Core making Coreshooters 5-50 litres 3 Vibrating moulding machine 8 sets
Moulding Manual, semi-automatic,automatic
Semi-automatic line with Furan sand resins Manual line with Furan sand resin
Fettling Shot blasting 1 shot-blast cleaning barrel, 2 normal shot-blasting 3
Heat treatment
Furnaces with programmable control
in sub contractorStress relieving 1Ferritizing Normalizing 1
Surface treatmentPainting Y
in sub contractorDipping machine Drying chambers 1
Machining
Machining centres 1 8
Vertical turning machines 8 horizontal turning machines , 1
CNC milling machine, several planing machines and grinding machines
5
3D-coordinate measuring 3D-coordinate equipment N 1
Most interesting suppliers
C-Parts suppliers profiles –Technical experience & testing capabilities
16
Supplier 1 Supplier 2You have experience with casting nodular ? ( Y/N ) Y Y
You have experience with grey casting? ( Y/N ) Y Y
Number of people in the quality control department 3 15Do you check all new patterns by 3D-coordinate measuring equipment? (Y/N) Y Y
Are you familiar with EN 12890 norm for patterns? (Y/N) Y Y
Do you have material chemical testing equipment: spectrometer? (Y/N)
No spectrometer but we have C , S and Multi-element analysis
equipmentY
Do you use the spectrometer in every melt ? (Y/N ) Y
Do you have material laboratory for heat treatment?(Y/N ) Y Y
If yes,Do you have hardness tests?(Y/N ) Y Y
Do you have microstructure tests?(Y/N ) Y Y
Do you have paint thickness checking after surface treatment? (Y/N ) Y Y
Most interesting suppliers
1. Gear Components
2. C-Parts & Castings
2.1. Castings Suppliers
2.2. C-parts Suppliers
2.3. Castings & C-parts Suppliers2.4. C-parts quotations
17
Agenda
Castings & C-Parts suppliers profiles – General Information
18
Supplier 1 Supplier 2 Supplier 3No. of employees 200 300 2200
Size of work floor (m²) 50 000 24 600 230 000
Turnover(RMB)2006 18 mio 55 mio 450 mio2007 19 mio 60 mio 600 mio
2008est 20 mio 70 mio
Sales breakdown (% of sales) in 2007
Domestic 20% 100% 90%Western countries 35% 0%
10%Japan 0% 0%Rest of the world 45% 0%
Experience in the wind gear industry N N N
Top 5 clients
1 Industry Test instrument Machine tool Client Intra-Automation Gmbh Shanghai machine tool group
2Industry Flanges and valve parts Machine tool
Client Transuaal Ruber Co.,Ltd Shanghai heavy machine tool factory
3 Industry Castings Family electrical machines Client Global Market Technology Sumsug(suzhou)
4 Industry Castings and machining Client Nanotech Industries Ltd
5 Industry Steel Bearing accesaries Client BCI engineering
Certification ISO9001-2000 ISO9001 14001 18001 ISO9001, TS16949Annual production capacity (ton) 5 000 10 000 180 000
Range (min-max) of castings you normally produce(kg) 0.1-3,000 1-3,000 2,000-13,000
Most interesting suppliers
Castings & C-Parts suppliers profiles – Production Equipment
19
Supplier 1 Supplier 2 Supplier 3
Pattern workshopManual machines Several a lot Manual machine for wooden pattern
CNC-machining centres 2 CNC-machining centers, 1 CNC milling machine in sub-contractor
Melting Cupola / Induction furnaces
1 set 5T cupola, 2 sets 3T induction furnaces, 4 sets 0.2-
1T induction furnaces
1 set 1 T/h medium frequency induction furnace, 2 sets 5T/h cupolas, 1 set 10T/h cupola
2 sets Melting furnace from Germany Junker 5T/H, 2 sets Holding furnace from America industotherm 5T/H; Cupola 5 、 7 、 10 T/H 10sets, Sand mixer 11sets, Sand reclaimation system from Germany 25T/H 3 sets
Core makingCoreshooters 5-50 litres 2 GFA Core making line from Germany 10T/H;
IMF Core making line from Italy 15T/HCoreshooters 25-500 litres 1
Moulding Manual, semi-automatic,automatic
Manual, SANDBOX size can be based on product size,
Furan sand resins
Manual line, use clay sand, soluble glass, furan sand
resins
GFA resin sand moulding line from Germany, Box size 2000*1400*550/550 MM; GF air
impact moulding line from Switzerland Box size 800*600*250/250 MM
Fettling Shot blasting 3 5 30 、 40 T/ H 4 sets
Heat treatment
Furnaces with programmable control 2 Homemade heat treatment
kilnsin sub-contractor
Stress relief , Heat treatment, Vibrating treatment Stress relieving
Ferritizing Normalizing
Surface treatment Painting YDipping machine Drying chambers
MachiningMachining centres Pro machining Lathe, Planing machine, milling
machine, drilling machine, grinding machineVertical turning machines 4 1600mm-5000mm vertical turning machine.
3D-coordinate measuring
3D-coordinate equipment 3D coordinates measured by
testing organizations
Most interesting suppliers
Castings & C-Parts suppliers profiles –Technical experience & testing capabilities
20
Supplier 1 Supplier 2 Supplier 3You have experience with casting nodular ? ( Y/N ) Y Y Y
You have experience with grey casting? ( Y/N ) Y Y YNumber of people in the quality control department 5 5 45
Products are qualified according to EN473 Ultra Sonic inspectors 2-5? 2-4 N N
Do you check all new patterns by 3D-coordinate measuring equipment? (Y/N) Y N N
Do you famialiar with EN 12890 norm for patterns? (Y/N) Y N N
Do you have material chemical testing equipment: spectrometer? (Y/N) Y N Y
Do you use the spectrometer in every melt ? (Y/N ) Y N Y
Do you have material laboratory for heat treatment?(Y/N ) Y N Y
If yes,Do you have hardness tests?(Y/N ) Y N Y
Do you have microstructure tests?(Y/N ) Y N YDo you have paint thickness checking after surface
treatment? (Y/N ) Y N N
Most interesting suppliers
1. Gear Components
2. C-Parts & Castings
2.1. Castings Suppliers
2.2. C-parts Suppliers
2.3. Castings & C-parts Suppliers
2.4. C-parts quotations© 2008 Dragon Sourcing. All rights reserved
21
Agenda
4 of the 5 suppliers invited to quoted effectively responded to the C-parts RFQ
Group Supplier Castings RFI C-parts RFI C-parts RFQ
C-partsSupplier 1 n/a Yes Yes
Supplier 2 n/a Yes Yes
Castings & C-parts
Supplier 1 Yes Yes Yes
Supplier 2 Yes Yes Yes
Supplier 3 Yes Yes Not interested by C-parts
22
Bearing caps have consistently been quoted by 3 of the 4 suppliers; the Intermediate Flange quotations still need to be clarified
23
11 12 15 16 11 16 12 13 16 23 13 2340 40 41 50
3850 44 55 59 63 55 59
106131 137
154125 137
7 6 323
522
7 6 723
6
2214 7 7
32
6
3021
4410 9
428
20
93
115
4583
110
2 0
2
2
2
0 2
2
2
2 7 0
4
6
4
5
0 11
5
10
0
23
13
23
12
0
50
100
150
200
250
300
SAIV
S M
achi
nery
Shan
ghai
Don
gtian
cas
ting
JinD
aLi J
iXie
Dal
ian
Wel
ls M
etal
Shan
ghai
Don
gtian
cas
ting
Dalia
n W
ells
Met
al
JinD
aLi J
iXie
Shan
ghai
Don
gtian
cas
ting
SAIV
S M
achi
nery
Dal
ian
Wel
ls M
etal
Shan
ghai
Don
gtian
casti
ng
Dal
ian
Wel
ls M
etal
SAIV
S M
achi
nery
Shan
ghai
Don
gtian
cas
ting
JinD
aLi J
iXie
Dal
ian
Wel
ls M
etal
Shan
ghai
Don
gtian
cas
ting
Dal
ian
Wel
ls M
etal
SAIV
S M
achi
nery
Dal
ian
Wel
ls M
etal
JinD
aLi J
iXie
Shan
ghai
Don
gtian
cas
ting
Dal
ian
Wel
ls M
etal
Shan
ghai
Don
gtian
cas
ting
JinD
aLi J
iXie
Shan
ghai
Don
gtian
cas
ting
Dal
ian
Wel
ls M
etal
SAIV
S M
achi
nery
Shan
ghai
Don
gtian
casti
ng
Dal
ian
Wel
ls M
etal
200 pcs/year 500 pcs/year 200 pcs/year 500 pcs/year 200 pcs/year 500 pcs/year 200 pcs/year 500 pcs/year 200 pcs/year 500 pcs/year
Bearing Cap Ø310/132x56 Bearing Cap Ø400/264x54 Bearing Cap Ø500x113 Bearing Cap Ø780/531x48 Intermediate Flange Ø720/330x140
Sum of Material cost (EUR) Sum of Manufacturing cost (EUR) Sum of Margin (EUR)