Cortec Early Supplier Developemental Input, 3 26 2012

Early Supplier
Developmental Input
Cortec Precision Sheetmetal and Machining
March 2012
Innovative Solutions for Commodity Specific Manufacturing

Introduction
How valuable is supplier input when it comes to minimizing design cost, cost
effective materials and cost efficient processing for your new product?

Early Supplier Developmental Input (ESDI) is a 2nd set of eyes at the front end
of the NPI process that can lead to major producibility and procurement
advantages.

Cortec has an ESDI Program that will provide critical risk assessment as it
pertains to the manufacturing of your new product. DFX; DFP, DFM & DFT
observations on everything from Raw Material, Outside Services, Procured
Components, Logistics, Packaging and Shipping.

Real-time consultation on the Quality Output of materials when processed
through our manufacturing facility.

By providing input on materials that work best with a specific child prototype or
electromechanical parent design, those contributions prevent potential problems
during manufacturing. By identifying these issues in advance, you're more likely
to experience a smooth product realization process once your new product has
been launched.

Cortec Precision Sheetmetal 2011

Early Developmental Solutions

 When you send Cortec an RFQ it will be reviewed by our Estimating Team (ET).
 Our E.T. has Sheet Metal & Frame Manufacturing, Machine Shop,
Mechanical/Engineering, Add Value Assembly, NPI Development and Product
Transfer experience.
 They possess knowledge of material pricing and services related to your Build To
Print fabrication and assembly needs.
 Our Drawing Process includes DFX feedback during conceptual design stage.
 We are proficient at expediting and providing real-time solutions.
 Actively propose Integrated solutions.
 Advise on potential processing inefficiencies.
 Make logical progression of design recommendations from NPI thru production life
cycle and value-added assembly.
 Our Experts provide cost impact analysis when revision changes.
 PFMECA reporting can be conducted.
 Ensure lines of communication are open and maintained daily to interface with
corresponding personnel.
 Capable of working on special projects from NPI to Production transition.

ESDI DFP Reporting

BOM Metric Material QTY
Item Description and Imperial Required
TYPE Number Equivalent to build 2 Frames
DFP - Material Assessment
Metric 1, 2, & 3 200 x 100 x 10MM WALL RECT TUBE 4

Imperial "
8" x 4" x .375 WALL A500B STEEL,
RECT TUBE 4
& Material Budgetary Quote
Metric 4 150 x 100 x 8MM WALL RECT TUBE
6" X 4" X .312 WALL A500B STEEL,
4 sample
Imperial " RECT TUBE 4

Metric 5&7 100 x 50 x 8MM WALL RECT TUBE 5
4" X 2" X .312 WALL A500B STEEL,
Imperial " RECT TUBE 5

Metric 8 32MM THK, PL STRUCTURAL STEEL 1
2" X 1-1/4" THK STEEL RECT FLAT
Imperial " BAR 1
2.5MM (MILD CARBON HRS STEEL
Metric 10 PLATE, A36) 1
12 GA CRS (0.1046) ASTM A1008 CS
Imperial " TYPE B 1

19MM THK PL, STRUCTURAL STEEL
SUPPLIER DOES NOT SUPPORT,
Metric 6 NEXT SIZE UP IS 20MM (.7874 THK) 1
.750 THK PLT ASTM A36
Imperial " 48" x 96" 1

13MM THK, PL STRUCTURAL STEEL
Metric 9 32" X 60" 1
HOT ROLLED PICKLED & OIL .500
(PLATE A36)
Imperial " 32" x 48" 1
Metric 11 COPPER SH, 1MM THK 1
.040 THK, (1/4 HARD) OFE COPPER
Imperial " C10100 HO1, ASTM B 152 1


ESDI DFM Reporting

Using a sheet metal cover as an
example, Is it possible that the
fasteners you are using could
be substituted for a less
expensive product or be
integrated in our factory at the
next level of assembly?
Cost savings pass through to
you when suggesting alternative
materials or processing ideas ESDI:
1. Instead of using CLS-832-1 Cortec suggested using SP-832-1.
that work as effectively but cost Why?

much less because they are Pem product technology has advanced and supplier created a new type of
hardware designed specifically for installment into Stainless Steel base

incorporated into your design material.

This new Pem product eliminates the need to tack weld the old type of
from the very start. hardware customarily used resulting in cost savings.

15% per part cost savings include elimination of tack weld, grinding and
additional regraining of exterior surfaces to remove weld discoloration in the
manufacturing Sequence of Events (SOE).


ESDI: Quality Review
Quality of new product is directly related
to how involved your ESDI partner is at Metal Filler Missing
the beginning of the NPI process. When • Workmanship
consulting Cortec during the development • Failure to Follow OMS
• Type of failure – major
stage, expect to have a product designed
with the right materials that conform to • Action: Rework by
drawing specifications. stripping paint from
seam and repeat OMS
#12 STEPS 1-15
When products are designed without the Slide - 1

contribution of an ESDI partner, there's a Cortec Precision Sheetmetal Confidential
possibility requested materials will not
work well with the final product. Materials
used in the production of your new Flat Head Screws
product could be inconsistent, laborious • Flat Head Screws
and very expensive to incorporate or supposed to be removed.
• Cause: Frame
rework. manufacturer failed to
remove Flat Head Screws
before painting.
• Type of failure – Minor,
Cortecs’ ESDI solution is to provide an weld department did not
follow customer approved
OMS.
onsite resource and be an adjunct
member of your Engineering team. • Action: Option to Return
to supplier or PAINT
Slide -frame.
1

Cortec Precision Sheetmetal Confidential


ESDI Solutions identified during RFQ Process
& change control

RFQ Processing and Identification of ESDI Opportunities, DXF reporting and design challenges

• Estimators • Estimators send • Customer places • Customer places
Review Quote Letter to order. order.
RFQ Package Customer along • Customer Service • Customer Service
• Prepare Pre- with Pre-FMEA sees Popup sees Popup
FMEA statement statement and notification and notification and
RFQ • Create Redline
drawing to WI 7.1.3
Redline drawing
file.
triggers SPS
Process.
triggers SPS
Process.
• Adds Comment to • Adds Popup Note
Quote Comment in History Tab and
Field. clicks Popup Notify
Note

• ME always • ME gathers data • ME Reviews • ME confirms • ME confirms
attaches revised and updates the drawing files for redline created by need for SPS
redline to redline drawing file any other Estimator. and SPS details.
FabriTRAK. if required.
omissions that
• Must attach to
BOTH Quote and
will prevent
Router. product
realization during
WIP.

• ME files SPS / • ME updates • ME updates • ME notifies ALL • ME saves a
PR / (other router and adds router and adds departments copy of the
customer comments to comments to affected by SPS solution in the
acronym). transaction log. transaction log. submittal. Q:/Drive Part
• Adds comments • Estimators number folder.
to FabriTRAK • Customer • Adds comments
quote comment Service in Quote and
field. •FAI Team Router, attaches
Slide - 1 solution to
FabriTRAK.

Cortec Precision Sheetmetal Confidential


Early Developmental Input Benefit

Applying our ESDI approach affords the opportunity to reassure optimal
“design implementation” for manufacturability and other processing risks in a
timely manner, enabling Research and Development the opportunity to
respond with minimal impact to your product release schedule.
This fully-integrated and efficient approach assures that your company
reduces costs because it allows earlier identification of processing issues,
and it applies your set tolerance for risk in a consistent manner.
Enables real-time responsiveness and effective direct design input.
Allows significant processing alternatives to control risk, cut cost and improve
quality.
Provides consistent risk analysis, assessment and reporting.
Conduct risk control validation .
Cortec guarantees a fully- integrated and value-added approach towards
assessing and improving your design implementation.


ESDI Benefit: Quantitative Results
Cosmetic
Class A Finish, Cosmetic time savings
2 sides Class A Finish Outside Surface
12nc Description010
2 Q3 2011 Class C Finish Inside Surface Quantitative savings 12-02-2011 TQS
Time savings 1 minute per part
xxxx.000.88882 RS XTIV LO-FRONT PANEL IL LSY2
$ 44.31 $ 35.12 $ 1.08 $ 34.04
Multiple piece assembly, Time
savings 5 min per side; 10 min.
xxxx.000.88882 RS XT4 INN.COV. LSY2 RH ASSY
$ 289.78 $ 272.33 total $ 10.83 $ 261.50
Multiple piece assembly,Time
xxxx.000.88882 RS XT4 INN.COV. LSY2 ILL ASSY
$ 258.23 $ 250.17 total $ 10.83 $ 239.34
xxxx.000.88882 RS XT4 INN.COV.LSY1/2 MID ASSY
$ 221.93 $ 210.84 total $ 10.83 $ 200.01
xxxx.000.88882 RS XT4 INN.COV. LSY1 RH ASSY
$ 283.17 $ 271.86 total $ 10.83 $ 261.03
xxxx.000.88882 RS XT4 INN.COV. LSY1 ILL ASSY
$ 294.37 $ 279.65 total $ 10.83 $ 268.82
Time savings 10 min. per side;
xxxx.000.88882 RS AIR SHOWER COVER PLATE ASSY20 min. total
$ 453.42 $ 417.18 $ 21.66 $ 395.52
xxxx.000.88882 RS XT4 TOP COVER 526.21 ASSY savings is 10 min.
$ 551.00 $ ILL LSY2 Time $ 10.83 $ 515.38
xxxx.000.88882 RS XT4 TOP COVER 526.23
$ 553.91 $ MID LSY2 ASSY savings is 10 min.
Time $ 10.83 $ 515.40
$ 596.50 $ RH LSY2 Time $ 10.83 $ 560.01
$ 554.97 $ ILL LSY1 Time $ 10.83 $ 516.42
xxxx.000.88882 RS XT4 TOP COVER 420.26
$ 440.00 $ MID LSY1 ASSY savings is 10 min.
Time $ 10.83 $ 409.43
$ 535.75 $ RH LSY1 Time $ 10.83 $ 498.15
xxxx.000.88882 RS XT4 FRONT COVER LSY1 ASSY
$ 421.96 $ 400.86 Time savings is 20 min. $ 21.66 $ 379.20
xxxx.000.88882 RS XT4 UP-FRT COVER IL-Y2 ASSY
xxxx.000.88882 RS XT4 FRONT COVER RH-Y2 ASSY savings is 5 min.
$ 424.90 $ 390.04 Time $ 5.42 $ 384.62
xxxx.000.88882 RS XT4 FRONT COVER MID-Y2 ASSY savings is 5 min.
$ 446.11 $ 384.73 Time $ 5.42 $ 379.31
xxxx.000.88882 RS LOS RH COVER ASSY
xxxx.000.88882 RS XT4 COVER MOUNT STRIP SA-AMachined flat bar
$ 71.37 $ 62.10
xxxx.000.88882 RS XT4 COVER MOUNT STRIP SA-BMachined flat bar
$ 69.07 $ 60.39
$ 7,418.18 $ 6,980.85 Total $ 6,654.75
Percentage Quantitative Savings -24.67%


Early Developmental Input
Cost Overruns

New
Mechanical Fit Issue
Material Processing Issue

Issues &
Product Opportunities
Design Identified

New Early Supplier

Product Developmental Input

Design

Logical Manufacturing Progression

New Drawing Review
POR/PFMECA/
Sheetmetal
Processing
Machine Shop
Processing

Pro
ESDI/DFX
PCV PCV PCV

duct Silk Screen Paint Shop Welding Shop

Desi Processing Processing Processing

gn
PCV PCV PCV

Value-Add Value-Add Process Control Shipping
PCV
Validation (PCV)
Assembly Assembly
Project Lessons
Class 10,000 Class 1000
PCV PCV SPC/FAI PCV Learned PCV
Cleanroom Cleanroom


Manufacturing Enhancements
78,000 Sq Ft Manufacturing Facility
Sheetmetal
Light out laser capabilities added
QTY 9, AMADA Press brakes, multiple LASER and Punch Presses
Machine Shop
Qty 7, 3-AXIS Vertical Mills,
Qty 1 (Lathe) CNC turning Center
14 weld stations – some dedicated work stations to support 4LPM & 2LPM
projects added
Both Powder and Wet coat paint booths can support up to 16ft tall frames,
Material KAN-BAN inventory
Onsite rework team for real time change control
90 day strategic plan in progress for a fully functional ISO 7 CL 10,000 Value-
Add Cleanroom.


Enhanced Machine Shop Capabilities

More Machines

Better Process Controls

More Capacity Cortec Precision Sheetmetal 2011

Project Success Criteria
Multiple Frames developed in Parallel with Optimum Success Criteria
Ramp to meet customer demand in less than 30 days.
Dedicated work stations through entire process to support both projects
PFMECA conducted and reported.
Added dedicated project weld stations.
Daily CFT and project timeline updates.
JIT raw material and procured materials inventory.
Tab and Key tubing design and fixturing for better welding controls.
Incorporated Value-Add materials in ISO 8 cleanroom during production.
Process Control Validation and OMS documented.
Multiple ESDI and customer design changes cut-in before and during
development.
Onsite rework and ESDI participation with customer Engineering team
eliminated costly logistics burden.
Imperial material solution provided during production when European
metric material supplier failed to deliver attributed to ESDI, CFT’s and PR
reporting.
100% Product Yield
Participated in crate recycling program to reduce logistics burden.
Lessons Learned and reported. Cortec Precision Sheetmetal 2011

Product Transfer Services to LCR

l • S. Korea
• Singapore
• Malaysia
• China
• Canada
• Mexicali, Mexico

Value Add Assembly & Cleanroom
Is the Next Logical Step In Manufacturing
Coming soon !!!


Summary
 Cortec considers your company a valued partner and would like the
opportunity to review your design and provide
 The proposed ESDI solution is for an assigned project or Technical P.M.
to work as an adjunct member of your Engineering team, Quality team,
Supply Base Management or other groups as required.
 Machine Shop capacity has increased with better controls and could be
a stronger strategic resource to an existing partnership.
 Welding and Large Frame Capacity has increased with better controls.
 Multiple Frame projects with value-added assembly with 100% yield
SPC, FAI process validation, and OMS documented and reported;
benefits all Cortec customer base.
 Strategic plan in progress to provide a Class 10,000 cleanroom for
increased Value-Added assembly service in 90 days.
 Streamlined communication to correct personnel at Cortec for better
responsiveness.
 Product Transfer Services to Low cost Region


Cortec Early Supplier Developemental Input, 3 26 2012

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