The document provides information from a case study on wind turbine components sourcing. It summarizes the screening process for 34 potential gear component suppliers, inviting 3 to quote. It also details the screening of 39 casting and C-parts suppliers, with 12 responding. Tables profile the invited suppliers and provide quotation comparisons for 2 gear components. The agenda outlines next steps in the sourcing process.

1. © 2008 Dragon Sourcing. All rights reserved 1
Case Study – Wind Turbine Components
January 2012

2. © 2012 Dragon Sourcing. All rights reserved 2
Agenda
1. Gear Components
2. C-Parts & Castings
3. Next Steps
Appendices

3. © 2008 Dragon Sourcing. All rights reserved 3
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
7
3 3
1(refused NDA)
Identified Screened on the
phone
Responses to RFI NDA signature Quotations
received
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

4. High level profile of the 3 suppliers invited to quote
4

5. The 1st
quotations received vary in a range of 30%
5
4 917 4 616
5 837 5 556
1 831 1 993
2 709 2 580
5 904 6 399
8 001 7 970
2 669
3 235
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 shaftassembled Sun shaft
Sum of Material cost (EUR) Sum of Manufacturing cost (EUR) Sum of Margin (EUR)
See next page comments
on these quotations
See next page comments
on these quotations

6. Detail of quotations
6
Values
Row Labels
Sum of
M aterial cost
(EUR)
Sum of
M anufacturing
cost (EUR)
Sum of M argin
(EUR)
Total (EUR)
Hollow shaft assembled
100 pcs/year
Tianshan Heavy Industry 4 917 5 904 10 821
Suzhou Asia Pacific 4 616 6 399 11 015
Dalian Qim ing 5 837 8 001 1 309 15 147
300 pcs/year
Tianshan Heavy Industry Not Quoted
Suzhou Asia Pacific Not Quoted
Dalian Qim ing 5 556 7 970 1 282 14 808
Sun shaft
100 pcs/year
Tianshan Heavy Industry 1 831 2 669 4 500
Suzhou Asia Pacific 1 993 3 235 5 228
Dalian Qim ing 2 709 4 265 803 7 777
300 pcs/year
Tianshan Heavy Industry Not Quoted
Suzhou Asia Pacific Not Quoted
Dalian Qim ing 2 580 4 245 647 7 472

7. © 2008 Dragon Sourcing. All rights reserved 7
Agenda
1. Gear Components
2. C-Parts &
Castings
3. Next Steps
Appendices

8. 84
66
3
2
12
(Castings RFI, no NDA)
15 (signed)
12
(Declined to respond)
7
Identified suppliers Reached and screened
on the phone
Invited to sign NDA
prior 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/RFQ
C-Parts RFI/RFQ
Castings RFI
Main reasons:
•Can't meet requirements
•Insufficient capacity / too
busy with current clients
•Refuse NDA
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 :12
Declined: 15

9. 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 9
Agenda

10. Castings suppliers profiles – General Information
10
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7
No. of employees 1000 220 130 200 1050 800 110
Size 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 mio
2007 430 mio 80 mio 36 mio 400 mio - 62 mio
2008est. 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
1
Industry 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
2
Industry 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
3
Industry
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&CA
T
yanmar 、 hsnshin
(Japan)
Toshiba,
Mitsubishi
Hitachi 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/TS1694
9 ：
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

11. Castings suppliers profiles – Production Equipment
11
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7
Pattern workshop
Manual 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 Yes
Ferritizing Yes
Normalizing 1 sub-contracted Yes
Surface treatment Painting Y Y Y Y Y Yes
Dipping machine Yes
Drying 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

12. Castings suppliers profiles –Technical experience & testing capabilities
12
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7
You 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

13. 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
13
Agenda

14. C-Parts suppliers profiles – General Information
14
Supplier 1 Supplier 2
No. of employees 84 320
Size of work floor (m²) 20 000 20 000
Turnover(EUR)
2006 46 mio 40 mio
2007 57 mio 55 mio
2008est - 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 box
Client SITI (Italy)
2
Industry Pump Gear box,transmission
Client LENZE (Germany)
3
Industry Construction mechanism fittings Transmission
Client INTERROLL (Danmark)
4
Industry Motocar fittings Auto parts
Client General Motors
5
Industry Pump Spare parts
Client Brisan
Certification ISO:9000:2001 ISO 9001:2000 TS16949
Annual production capacity (ton) 4000 12000
Most interesting suppliers

15. C-Parts suppliers profiles – Production Equipment
15
Supplier 1 Supplier 2
Pattern workshop
Manual machines
in sub-contractor in sub contractor
CNC-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 1
Ferritizing
Normalizing 1
Surface treatment
Painting 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

16. C-Parts suppliers profiles –Technical experience & testing capabilities
16
Supplier 1 Supplier 2
You 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 15
Do 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
equipment
Y
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

17. 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
17
Agenda

18. Castings & C-Parts suppliers profiles – General Information
18
Supplier 1 Supplier 2 Supplier 3
No. of employees 200 300 2200
Size of work floor (m²) 50 000 24 600 230 000
Turnover(RMB)
2006 18 mio 55 mio 450 mio
2007 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
2
Industry 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, TS16949
Annual 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

19. Castings & C-Parts suppliers profiles – Production Equipment
19
Supplier 1 Supplier 2 Supplier 3
Pattern workshop
Manual 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 making
Coreshooters 5-50 litres 2
GFA Core making line from Germany 10T/H;
IMF Core making line from Italy 15T/H
Coreshooters 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
kilns
in sub-contractor
Stress relief , Heat treatment, Vibrating
treatment
Stress relieving
Ferritizing
Normalizing
Surface treatment
Painting Y
Dipping machine
Drying chambers
Machining
Machining 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

20. Castings & C-Parts suppliers profiles –Technical experience & testing
capabilities
20
Supplier 1 Supplier 2 Supplier 3
You have experience with casting nodular ? （ Y/N ） Y Y Y
You have experience with grey casting? （ Y/N ） Y Y Y
Number 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 Y
Do you have paint thickness checking after surface
treatment? (Y/N )
Y N N
Most interesting suppliers

21. 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

22. 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-parts
Supplier 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

23. 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
23
40 40 41
50
38
50 44
55 59 63 55 59
106
131 137
154
125
137
7 6 3
23
5
22
7 6 7
23
6
22
14 7 7
32
6
30
21
44
10 9
42
8
20
93
115
45
83
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
SAIVSMachinery
ShanghaiDongtiancasting
JinDaLiJiXie
DalianWellsMetal
ShanghaiDongtiancasting
DalianWellsMetal
JinDaLiJiXie
ShanghaiDongtiancasting
SAIVSMachinery
DalianWellsMetal
ShanghaiDongtiancasting
DalianWellsMetal
SAIVSMachinery
ShanghaiDongtiancasting
JinDaLiJiXie
DalianWellsMetal
ShanghaiDongtiancasting
DalianWellsMetal
SAIVSMachinery
DalianWellsMetal
JinDaLiJiXie
ShanghaiDongtiancasting
DalianWellsMetal
ShanghaiDongtiancasting
JinDaLiJiXie
ShanghaiDongtiancasting
DalianWellsMetal
SAIVSMachinery
ShanghaiDongtiancasting
DalianWellsMetal
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)