Casting Cost Estimating

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Estimating the cost of an engineered cast metal component can seem like trying to solve an advanced algorithm. Its a complex process with a wide range of numbers to factor in and just as many variables to account forand there are no shortcuts. Similar to solving the advanced mathematical equation, if you dont do your homework, it shows. But a failing grade in the process of costing a casting can be more serious and drastically affect your bottom line. Similar to most other products, the more that goes into a cast component and the more that is expected from it, the more costly it will be. Its no longer possible to determine the price per pound of a particular alloy and accurately estimate the casting cost based on that figure. While that is one aspect of the estimation formula, there is much more to factor into the equation. There is more to the price of a casting than just the components or raw materials coming in, said Robert Creese, who is a professor of industrial and management systems in engineering at West Virginia Univ., Morgantown, W. Va., and has authored a book on cost estimation for the manufacturing industry. What you have to remember is that costs go up for the processing of the materials and for overheads. It is not only labor costs and material costs, but the overhead costsand those tend to be the major cost component. This article details the factors affecting the cost of a casting and provides tips for designing the best casting at the lowest cost.

In the Beginning
The process of costing a casting involves a number of different factors, but many of them are intertwined. Often, once one decision is made, another falls into place. The starting point of the complex estimation process boils down to a simple question: what does the casting need to do? The functionality of the component will drive many of the other factors in the estimating process. Before making a decision on alloy, casting process or post-casting treatment, ask the question, how will the casting be used in the final application?

Fig. 1 Metal type plays a significant role in the cost of a casting. But there are not always options when selecting an alloy. The type of metal used is directly related to the desired properties and characteristics of the casting. Sometimes, certain materials can match engineering characteristics of other materials at a reduced cost. But many times, only one alloy meets those requirements. Generally speaking, casting cost is directly linked to process and production requirements. Figure 1 compares the tolerances offered by a variety of molding processes. The processes offer varying capabilities and constraints, with certain processes better suited to specific designs and applications. Within a given process, different methods may exist that lend themselves to greater efficiencies at different production levels. Processes utilized for tight dimensional tolerances, thin sections and casting complexity tend to be more costly. Design complexity and the components end use have a direct impact on selecting the appropriate molding method. Understanding the functionality of the component is crucial at this stage because different molding processes can offer different benefits, such as tight dimensional tolerances, excellent surface finish and ease of casting complex shapes. Each process has its limitations, said Bill Marlatt, Grede Foundries Inc.Vassar Foundry, Vassar, Mich., who has cost estimating experience as an industrial engineer and production controller. He also has held positions in purchasing and sales. There are processes that are phenomenal at obtaining high strength and high pressure with no shrinkage and minor microporosity, he said. But there is a price to be paid for that type of technology. If you are making aerospace-quality components, you have to select a process that will give you that near-perfect, defect-free casting. But in a lot of applications, as long as a defect, such as porosity, dont open up during machining, it wont affect structural integrity. To avoid needless expenses, it is important to determine what is necessary and then decide what you are

willing to pay for features, such as good surface finish, tight dimensional tolerances, complex shapes and internal passageways. This requires design engineers to resist the temptation to over-engineer the component. Often, by thinking, if a little is good, then more must be better, costs will needlessly increase. Consider all possible design and process tradeoffs for your requirements, said Rex Weinbender, Fluor Global Services, Greenville, S.C. , who has authored several articles on industrial engineering and costing topics. When it comes down to it, you could make the perfect part by lost foam or investment casting, but do you need to? You can cast a near-net-shape component with excellent surface finish and minimal machining required, but is this necessary if the casting will be used as a heavy truck suspension component? Quantity also will drive the molding process selection. Evaluate the life cycle of the part. If it is a high-volume component with specific requirements, you may naturally gravitate toward a particular processes. Also, because of the high tooling costs incurred in certain processes, high-volume components with a long life cycle become more economically justifiable. Once a molding process has been selected, total costs of ownership must be evaluated. Prev - Next >>

Casting Cost Estimating

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Total Cost of Ownership

Within each molding process lies another set of factors that can affect the cost of a casting. These total costs of ownership can add up over time, but they also can be controlled when designing a casting. The key is to remember that the more that goes into it, the more it will cost in the end. You should look beyond piece price; you have to consider tooling costs, which include not only patterns but also coreboxes and other items, such as fixtures, Weinbender said. The cost of these items should be factored on a per-unit basis, based on estimated tooling life and life cycle demand for the part. Thus, quantative analysis of casting price should include piece price plus costs for any peripheral costs relative to it. Its not just the casting price, its anything upstream or downstream relative to the component. Tooling is arguably the biggest cost in this area. It also provides many options that affect casting cost. Variables that affect casting cost include: pattern material, pattern design, type of molding machine and cored versus non-cored. Pattern MaterialWood and plastic are suitable for many applications, but high-volume jobs that require

the pattern to hold up over long periods of time may need the added strength of machined aluminum, iron or steel. Also, aluminum, iron and steel patterns tend to hold tighter tolerances because they are less susceptible to breakage than wood. But keep in mind that the durability of a robust pattern material will increase the total cost of the component. If you are looking at a low-volume part that is going to run 5,000 pieces/yr., then you may want to consider a mounted polyurethane pattern, Weinbender said. But, if you are producing 1 million parts a year, then you are going to want to use a machined steel pattern because you will need that durability. Tooling specifications should be matched to the anticipated production requirements. Pattern DesignOptions for patterns include plate-mounted impressions versus pressure cast impressions and separate cope and drag patterns versus a matchplate design. The size and number of impressions also play a role in tooling cost. A cost-effective option is a rider, which occurs when additional, smaller castings can be produced when patterns are mounted onto existing tooling. This can be a cost-effective option because the only cost of the rider is the additonal metal. Pattern and corebox commonality is a possibility, too, Weinbender said. If you are looking at a family of parts, engineering the tooling to incorporate changeable inserts may allow you to produce multiple part numbers form common tooling, which can help reduce the overall cost. Type of Molding MachineThe type of molding machine used is typically dictated by the volume of castings to be produced. Larger automatic molding machines can allow for the inclusion of several castings on a single pattern. Typical order quantities over the life of the casting will determine the types of molding centers that are most cost-effective, Weinbender said. Try to match the production requirements to the metalcasting facilitys capabilities and align them as closely as possible. Cored vs. Non-CoredCores are used in metalcasting processes to help form the complex geometries of cast metal components, such as internal passageways. They are beneficial because they have the ability to minimize some secondary operations, such as machining. If cores are needed, there will be an additional expense to build coreboxes and produce cores. Similar to patterns, coreboxes can be made from a variety of materials that offer different benefits and costs. The cores themselves can be produced in a variety of methods (shell, coldbox, nobake, etc.) that offer different benefits and costs. Its also important to remember that the use of cores can help bring down the price of the casting because they have the potential to eliminate expensive machining operations. Try and combine things, such as cores, Creese said. If you can get one core instead of two, its one piece going in instead of two. Improving productivity not only decreases unit labor costs, it also reduces the unit overhead costs. << Prev - Next >>

Casting Cost Estimating

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Cleaning, Finishing & Machining

Finishing and machining operations can have a significant impact on the overall cost of a casting. The labor involved, time spent and equipment needed to remove excess metal or machine features can drive up the cost, which encompasses more than simply the materials needed to make the casting. Total cost also includes, labor, energy, tooling, etc. Although there are several fixed costs, the casting processes offer several ways to reduce costs in other areas. By exploiting the ability of casting processes to produce complex shapes and internal passageways, machining can be minimized significantly. And by producing near-net-shape components, cleaning and finishing costs can be drastically reduced. Now more than ever we are working with our customers to reduce weight, take out stock and reduce machining because it can be more expensive than the casting, Marlatt said. In most metalcasting facilities, the cleaning room is the biggest cost driver because there are so many operations that are still being manually performed. Cleaning and finishing equipment is self-destructive; the less pressure required, the greater the opportunity to reduce costs. That opportunity comes from the casting design. Features, such as holes and passageways, can be cast-in to save money. These require cores, which add cost but may be more cost-effective than machining or cleaning and finishing operations. Determine if there are features you can design that will save money in the cleaning room, Marlatt said. You have to understand your customers cleanliness criteria. If a parting line of 0.79 in. (20.7 mm) is acceptable and the process is capable of holding that, grinding will not be necessary. And, if the gating system can be designed so it breaks off cleanly (and the metalcasting facility can keep the process within those limits), you might be able to eliminate or limit the amount of gate grinding. << Prev - Next >>

Casting Cost Estimating

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Cost Variables

Fig. 2 Figure 2 shows a 90-lb. (41 kg) manifold that was modeled as both a ductile and gray iron casting. Both castings have an 18-lb. (8.2 kg) coldbox core that required dipping. With an annual volume of 5,000 pieces, the 60-40-18 ductile iron component would require heat treating, snag grinding, bench grinding and 100% leak testing. The total cost of the component is $67.44. The heat treatment that is necessary with this particular grade of ductile iron accounts for 26% of the total cost. If the casting were produced in a slightly higher grade of ductile iron (65-45-12), no heat treatment is required, and the price falls to $48.29. Depending on the end-use and the specific properties needed in the component, the manifold could be produced as a Class 40 gray iron casting. Here, the yield (65%) and molding rate (135 molds/hr.) are higher, helping to reduce cost to $47.50/casting. The breakdown of costs for the three components is shown in Table 1. Please note that costs differ from facility to facility and part to part. Table 1. Comparison of Costs for Iron Manifold Metal 65-45-12 $9.20 Melting Molding Coremaking Finishing Heat Treating Total Cost $0.81 $0.81 $1.14 $1.85 $1.85 $1.85 $6.65 $6.65 $6.65 $12.60 N/A N/A $67.44 $48.29 $47.50 $8.87

60-40-18 $10.08 $8.87 Gray Iron $10.77 $6.97

Figure 3 shows a 356 aluminum one-way flow valve. A cost-estimating model was used to show the differences between producing the casting via green sand molding on a 20 x 24 in. (508 x 610 mm) automatic molding machine and a 16 x 20 in. (406 x 508 mm) automatic molding machine as well as producing the casting via the permanent mold process.

Fig. 3 This model is intended to be used as an estimate and may not reflect actual costs that are specific to a metalcasting facility, such as labor costs, material cost costs, sales commission and markup. For the purposes of the model, labor rates and material costs were held constant while markup was set at 20%, and sales commission was not accounted for. The model shows the effect certain factors have on the cost of a casting, including the price differential from producing the casting in different processes. The casting is 4.18 lbs. (1.8 kg) and requires one 9-in. (228-mm) long shell core (Fig. 4) that weighs 3.8 lbs. (1.7 kg). With an annual volume of 30,000, if the component were sand cast on a 20 x 24 in. automatic molding machine, it would cost $11.35/casting. This type of molding machine would allow for the production of 70 molds/hr. in a four-on configuration with a 55% yield. The estimate also accounts for belt grinding 180 castings/hr. and heat treatment.

Fig. 4 If the same component were to be produced on a smaller molding machine with a higher mold rate in a twoon configuration, the cost drops to $11.28/casting. The smaller molding machine has a molding rate of 90 castings/hr. with a yield of 50%. The same post-casting operations were performed in both scenarios. Also, both automatic molding machines were running well within their capabilities. The example assumes a 5% scrap rate, but that could grow as the limits of the molding machine are tested more. If you are pushing the limits of the process controls, the costs go up exponentially, Creese said. Once you start reaching the upper limits of the process, there is going to be more scrap because it is harder to control and the costs start taking off from there. To show the difference in tooling cost, the same aluminum component was modeled as a semi-permanent mold casting with the same shell core. Using the same production rates, scrap rate and post-casting operations, the price to produce the semi-permanent mold component in a two-on configuration is $10.73/casting. The permanent mold process is the least expensive in this case because the volume is high enough to justify the investment in the metal tooling. The yield is greater than in sand casting (in this case 8% higher), which reduces the melt cost per casting due to the fact that melt labor is predicated on a per pound basis as opposed to an hourly basis. That drops the labor rate significantly. Also, because the molding process is automatic, there is no need for operators, and the costs are less. The cost breakdown for the three aluminum components is shown in Table 2. Table 2. Comparison of Costs for Aluminum One-Way Flow Valve Heat Treating $0.46

Metal Melting Molding Coremaking Finishing 20 x 24-in. automatic molding $4.53 $0.73 $0.55 $1.59 $0.28

Total Cost $11.35

machine 16 x 20-in. automatic molding $4.53 $0.40 machine Permanent mold $4.53 $0.34 $0.82 N/A $1.59 $1.59 $0.28 $0.28 $0.46 $0.46 $11.28 $10.73

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Casting Cost Estimating

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Know Your Needs The bottom line in cost estimating is to know what the casting needs to do. From there, it can be determined which features are necessary and which ones can be eliminated. Several aspects of the metalcasting process, such as labor costs and raw material costs cannot be controlled. This means that more consideration needs to be given to design facors that affect casting price. An important concern is to determine the design parameters of the component, Weinbender said. For example, if the casting is a bracket that is not highly visible, or if it is a part of an assembly, then surface finish may not be a big deal. Fully understanding the functionality of the part is critical. You need to ask, what is the component supposed to do? Beyond knowing the requirements of the casting, it is important to objectively assess your expectations. What are you willing to pay for surface finish, tight dimensional tolerances and time to market? If you are just going to focus on the bottom line price, you get what you pay for, Weinbender said. If you have a knowledgeable metalcasting facility that has technology, there is a cost that comes with that. If the metalcaster comes in on the ground floor and helps design the component to come up with the most costeffective part, you may end up paying slightly more, but that may have saved you untold dollars in the long run and possibly shortened your time to market. MetalcastingDesign.com

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Cost Considerations
Efficient and effective purchasing of cast components requires using a considerable amount of specialized information. With the increased emphasis on value analysis techniques, purchasing agents must evaluate the many important factors that directly influence the "total cost" of a component part. The "total cost" factors are usually grouped under the general headings of quality, service, price and delivery. Each buyer will determine the relative importance of these factors, based on particular circumstances. Since a universal formula isnt possible, the following information will assist purchasing managers by covering the important criteria that affect the cost of a cast component. It is important that the casting supplier be included during the early stages of the design and purchase planning. Regardless of the type of foundry, dollar costs will break down into three main categories: materials, direct labor and expenses. Materials may be subdivided into raw materials (primary metal and alloying constituents) and process materials (coke, sand, molding materials, bonding agents, shot, paint, etc). Automation has markedly improved productivity in the foundry industry, but labor remains a high percentage of costs. Expenses are extremely variable depending on the foundry facilities and the cost accounting procedures. Although there is no magic formula that can be universally applied to foundry costs, it is possible for the buyer to develop a basic understanding of the cost factors for any foundry or particular cast component. Numerous factors influence the total cost of a finished cast component. These are considered in two groups: factors directly affecting the cost of cast component and indirect cost factors for a finished casting. Dimensional tolerances and allowances are also discussed since they have an important bearing on casting costs. Size, weight and complexity of a metal casting are generally the most important cost factors because they directly influence the materials and labor required for its production. Weight of the metal in a cast part also is important, but it no longer dominates the cost as was true at one time. Overall size of a casting also is important because several tons of mold material and other expendables are involved in the casting process for each ton of cast components produced. A large, thin casting that must be made in a large mold can be much more expensive than a heavier, simpler part made in a small mold. When designing a cast component, complexity also is an important factor. In general, the more complex a design, the more difficult it will be to manufacture. This may lead to higher costs. However, this is not an ironclad rule. With careful design, complexity can be molded into the metal casting without increased production cost. To minimize the cost of complex designs, the engineer should call upon the foundry to make manufacturing suggestions at the early design stage. The foundry can help to minimize costs and problems with such things as draft, fillet radius, parting line locations, coreprints, wall thickness and surface finish. Geometric Complexity Geometric complexity of a design raises costs because the mold must be much larger in order to contain external coring to form complex outer configurations. Cored castings are more costly. Cores must be made ahead of time, transported to the molding department and placed carefully in the mold. But equally important is the extra cleaning and trimming that is usually necessary on cored cast components. At the same time, the cores make the metalcasting process as unique

as they allow for the creation of internal cavities while the external surfaces of the part are produced. Wall thicknesses are an important design feature in metal castings, with the part configuration and alloy selection playing a major role in determining what wall thicknesses can be cast. As an example, in aluminum castings, the normal minimum wall thicknesses will range from 0.12~0.250 in. Depending upon the part size and the area involved, thinner wall sections, down to 0.080 in. are possible over limited areas (~10 sq in.). Type of Metal The cost of a casting will vary in three ways based on the alloy used: the inherent cost of the alloy. Cost depends on both the baseline cost of the metal along with alloying elements in the alloy. the purity of the alloy. Premium prices have to be paid by the foundries to obtain alloys with fewer impurities. The lower the impurity level requirements of the alloy, the fewer the gating and risering returns allowed in melt charges; the castability of the alloy. In steel and aluminum alloys, different alloy compositions have differing levels of fluidity, weldability and castability. With reduced castability, additional metal must be poured into the mold in the form of flow channels and feed heads to assure a sound casting. For such parts, the weight of the actual metal in the finished cast component may be less than half of the total weight poured. This total-metal-poured factor is especially important when considering alloys with costly alloying elements since the alloying elements must be added to all of the metal poured into a mold. Of the above three considerations, the last one (castability of the alloy) has the most effect on the cost of a cast component. Pattern Equipment The type of pattern equipment provided is an important factor in the total cost of producing a metal casting. The term pattern equipment includes coreboxes, if they are necessary, and any jigs or fixtures used for checking or assembling cores or for checking the dimensions of the part. Note that part quality is only as good as the pattern quality. Dimensional Allowances and Tolerances Because dimensional allowances and tolerances affect both the cost and delivery of metal castings, it is important that part buyers have a working knowledge of the major factors influencing them. Realistic tolerance requirements are of prime importance in minimizing overall costs. Tolerances that are more rigid than necessary increase foundry production costs and lengthen delivery schedules. Those that are too loose result in castings that require more expensive machining and usually have a heavier section size than required. Following is a brief review of the more important dimensional allowances and tolerances that should be considered. Shrinkage Allowance When metal is poured into and takes shape in the mold, the metal is still at or above its liquidus temperature. As the metal solidifies and cools to room temperature, the metal contracts. Thus, to obtain a casting of desired size, the pattern is made slightly oversized. This addition to the dimensions is called a patternmaker's shrinkage allowance.

Another type of shrinkage that occurs while the liquid metal solidifies in the mold is called solidification shrinkage. This aspect of metal solidification is corrected by feed heads, risers or shrink-bobs, which are attached to the casting when they are poured. This is a separate phenomenon and should not be confused with pattern shrinkage allowance. Draft Allowance This is the term describing taper on the vertical faces of a pattern that allows the pattern to be removed without binding or tearing the mold. Draft will normally vary between one and three degrees of taper. Small or machine-drawn patterns require minimum draft. Large patterns, inside pockets on patterns and hand-drawn patterns generally require a greater draft. Under ideal conditions, some patterns as deep as six or more inches may be drawn with almost no draft, using special techniques. Maximum draft should be provided where it does not interfere with desired casting geometry. The foundry should be consulted so that draft allowance may be minimized or even eliminated entirely on surfaces where it must be machined off. For a no-draft condition, a loose piece in the pattern or corebox can be used. This will increase the cost of the part due to an expensive pattern and higher labor costs in molding and coremaking. Alternatively, the buyer should consider the lost foam process. Cast tooling or datum points should be fixed on designated "nodraft" surfaces. Machining Allowances Additional stock that is added to the surface of a metal casting so that it can be finished to size by machining is called machine-finish allowance. Thickness of this allowance will depend on size and type of the cast component, the type of surface, how it is to be machined and how accurately the casting can be made. Large castings and those made on a low-volume basis will generally have larger machining allowances than smaller castings or components produced in large quantities. With newly designed cast parts, a full machining allowance is usually added. After some experience is gained with the pattern, machining allowances may be reduced to the minimum necessary. To avoid local surface hard spots, a ground finish can be applied directly to a cast surface, with just enough stock so that the surface will clean up well. Distortion Allowance When one part of a casting cools more rapidly than another, the part may become distorted. The first line of defense is to pay attention to design details such as avoiding sharp changes in adjacent sections. When this is not possible, distortion often can be minimized by special foundry practice to control heat extraction or by follow-up heat treatment. In some cases, the pattern may be intentionally distorted so that the casting will be true. This is called distortion allowance. Tolerances Because castings are individually designed and process details are engineered for the characteristics of each pattern, casting requirements such as surface smoothness, dimensional tolerances or machining allowances cannot be stated in a general specification. These requirements usually are established through mutual agreement between the casting user and the foundry. Ordinarily, variation in casting dimensions can be held to within a half of the patternmaker's shrinkage allowance. On a simple 12-in. casting dimension, this would be a tolerance of 0.0825 in. Closer tolerances often are obtained on repetitive production where corrective adjustments can be made. For such cast parts, a tolerance of 0.05 in. in an 8-12-in. dimension may be considered normal. Special procedures have been developed to produce some cast components with dimensions as close as 0.005 in. However, note that

tolerances do not vary proportionally with the components dimensions. Dimensions within each half of the mold are generally more accurate than those across the parting plane or those related to a cored surface. The type of pattern equipment used directly affects dimensional tolerances. This is particularly true when machine molding or coremaking methods are employed. Metal patterns and coreboxes that are machined to size often will provide closer tolerances than will cast-to-size metal or wooden patterns. High-strength cast components frequently demand tight dimensional tolerances or thin-wall sections. In either, higher production costs are incurred if a systems approach is not used by the OEM to work with the foundry to recognize the true requirements of the component. Frequently, components are over-specified. In other cases, the design can be altered to take advantage of the capabilities of the many casting processes that are commercially available to meet true design requirements. The factors that most affect dimensional tolerances are as follows: use the proper shrink factor in pattern design. This is less of a problem on smaller castings. For larger castings, the foundry must have experience with the type of part required so it can make proper judgments as to what shrinkage factors to use; variability in the pattern equipment and coreboxes from nominal blueprint dimensions. To minimize this, quality tooling is required; variability in the molds and cores themselves due to people, equipment and materials used in their production. Quality foundries are aware of this and have controls and gauges in place to minimize the effect; variability in cleaning and finishing operations performed on the part. The foundry will perform inspections after this process to assure that finishing operations are done properly; distortions due to the heat treatment of the castings. The foundry should plan to use heat treat fixtures and special quenchants where the potential for this problem exists. The quality of both the tooling and the production equipment is of great importance in dimensional tolerances. Even if only a small quantity of castings is required, the tooling must be of prime quality if the dimensional tolerances are to be satisfied. Designers must be aware that there are additional costs incurred when tight tolerances are specified. Linear tolerances often must be increased for larger casting sizes. Critical dimensions should he identified to the foundry so proper tooling will be built. Cast Surface Finish There is no standard finish specification for cast components. Although root mean square values for cast surfaces are sometimes given on drawings, they are of questionable value because there is no dependable method of quantitative surface roughness measurement for unmachined, cast surfaces. However, sample castings of the type required provide a satisfactory way of designating desired surface finish and observing what can be produced. In some casting applications, the degree of roughness of the cast surface is critical to successful use. Dimensions that are held within close tolerances may be ineffective if the surface is not smooth enough for accurate measurement or proper positioning in a fixture. While a textured surface is desirable or even

necessary for some finishing or coating procedures, a surface that is too rough can be detrimental to finish quality and may require extra finishing with increased costs. Although a smooth surface on a cast part often is considered an aspect of its quality, this is not an accurate indicator of the overall quality of the casting. Surface quality can involve several characteristics that may not be evident or even measurable. Superficial roughness on the casting can be caused by duplicating the rough surface of a pattern in metal or by an improperly made mold. However, most of the surface roughness of iron castings is the direct result of the high-energy abrasive cleaning methods in common use. Accurately evaluating a cast component's surface roughness is difficult. Instruments and methods that are used successfully for measuring the roughness of machined surfaces are unsuitable for cast component surfaces. A sandcast surface is not composed of regular spaced surface features, as found on a machined surface. The size distribution of the sand mix produces a much more complex and richer pattern of surface features. A finish that varies from location to location on a casting (due to inherent variations in sand compaction around a complex engineered geometry) further complicates the problem of measurement. The surface texture or roughness is generally specified by the term root mean square (rms) or arithmetic average (AA). The rms gives about 11% higher values than AA, but the difference is not significant. The surface finish may be specified as 300 rms maximum, 115 AA maximum or C50 maximum on a visual comparator. Finer finish requirements will require special molding media or secondary operations, such as grinding or machining. This will add to the cost. Measurement should be made by surface comparator. The profilometer probe diameter acts as a filter for the input data. Fine surface areas should be identified and specified on drawings. Quality Requirements and Quality Assurance Cast metal components are produced in a very wide range of parts (ranging from engine crankshaft counterweights to aircraft turbine blades) with different quality requirements. The term "quality" really indicates how well the part meets the requirements of the purchaser and how consistently they are met by castings in production quantities. Consistent quality from order to order and from the first to the last casting of an order is of primary importance and should be foremost in the identification of a dependable casting supplier. The main parameters of cast metal quality are: properties of the metal; soundness of the cast component; accuracy and consistency of dimensions; smoothness of finish. Quality requirements often are detailed by reference to industry specifications, such as those published by the American Society for Testing and Materials (ASTM), the Society of Automotive Engineers (SAE), and government/military and other professional and trade associations. Specifications are available for different alloys and for a wide range of quality levels required for differing applications. Sometimes high quality is improperly used to indicate superiority in a particular property, such as high tensile strength or excellent surface finish. However, it should be kept in mind that calling for unnecessarily high

quality requirements, which increase the total cost of a casting, is contrary to good purchasing practices. The chief concern should be defining and meeting acceptable quality levels. Excessive quality requirements for any of these increase the direct cost of a casting for several reasons: a more complex production method may be necessary to meet the specified quality level; more highly skilled workers and/or more production time may be required; more expensive materials and/or equipment may have to be used; additional inspection may be necessary and a higher percentage of rejects may result. However, necessary quality requirements should not be compromised. Decreased cost is not a valid reason for purchasing cast parts that are below the required standard. Any initial savings are very likely to be offset by increased finishing cost or performance problems that may arise from using such castings. It is unfortunate that this latter cost is not always evident. Although quality requirements can be designated by specifications or sample cast components, this is often difficult to do and cast component quality is more generally thought of in terms of the established reputation of the foundry. Order Quantity An important factor in selecting appropriate tooling is order quantity. Even with a given pattern, the order quantity may have an important influence on casting cost. One reason for this is that there are a number of standard operations in the foundry that must be performed for each part order regardless of the quantity involved. Some of these are: quoting, acknowledgment and recording of the order; scheduling production and issuing shop work orders; getting pattern equipment out of storage, inspecting and transporting it to production departments; setting up tooling for production (i.e., laying out or attaching to machines and lining up proper flasks); if cores are required, delivering core equipment to coreroom, making cores and transporting them to the molding line; shipping and billing. Efficiency of production operations also is greatly influenced by quantity. When an order is issued subject to release, the total quantity is important in the selection of foundry tooling, but each release is normally considered as a separate order by the foundry, since each production order requires separate processing. The purchasing manager can determine the most economical lot size for cast parts when he knows what his casting requirements will be for some time in advance. Due to usual billing practices, less than one month's supply is seldom practical. Savings realized by larger releases should be weighed against inventory costs, which include investment, space and records. Possible changes in product demand and casting design or prices may not be equated directly in numbers, but are incorporated as a matter of judgment by experienced buyers. The production quantity and the production rate are major factors in selecting the casting process and the type of mold pattern/tooling for the casting run. Different metalcasting processes have different production rate capabilities, different tooling costs and different design change flexibility. Sand cast components often are preferred because design changes can be made with relative ease. Two factors play important roles in tool material selection. The first factor is the total quantity of cast parts

needed. The second factor depends on the delivery period involved. Quality wood tools will generally produce up to 100 parts within about a year. Over a longer period of time, the tool may distort and produce castings with dimensional discrepancies. Wood and plastic tooling should be usable for up to 500 parts in a moderate time frame (one to five years) with periodic refurbishment. Whenever small lot quantities are required for more than three years, metal or plastic tooling should be used to assure only minor refurbishment costs. Metal tooling is recommended when more than 2,000 castings are required annually. Additional Operations Often the foundry can perform additional production operations that may increase direct cost of the casting but will reduce the total cost of the finished product. Heat treating, painting or coating and inspection that are more sophisticated and testing procedures are typical of additional operations that may be efficiently performed by the foundry. For quantity production runs, castings may be justified or targeted in a gauging fixture to provide accurate locating points for subsequent machining operations. This assures that the correct amount of stock is available to be removed on each critical finish surface. Technical Services Close cooperation through concurrent engineering between the foundry and its customer is the approach required to yield the greatest benefit for buyer and supplier. But for the more complex engineered cast components, an additional amount of service or technical assistance may be required from the foundry. This commonly occurs in development of new products. Assistance with component design, information on properties and metallurgy, trouble shooting, pattern assistance, or pattern models and experimental castings may be provided by the foundry. These services may be billed to the customer at cost or included in the price of the parts. However, in either case, quotations from a foundry that stands ready to provide its customers with this assistance cannot be compared directly with quotations from a foundry that does not. The latter type of foundry should not be ignored because it can be a good, economical source for castings. This is particularly true where special problems or requirements do not exist and where additional services are not necessary. When a complex casting will be produced in large quantities, a model casting may be made to assist in planning production equipment. The model will assist in establishing the most efficient metalcasting method by providing an opportunity to establish critical factors such as the parting line and core prints on the actual shape. This also can be of assistance in planning for subsequent processes, such as machining. Types of Price Quotations At one time, metal was expensive compared with labor and castings were commonly sold by the pound. This was a simple buying method and worked well because the weight of a cast part was a more important part of total cost than was the workman's time to make it. This is no longer true. With the tremendous increase in cost of labor and mechanized equipment in a modern foundry, the value of the metal in most castings has become a secondary factor. Accurate cost accounting must include cost of the worker's time, value of materials used and overhead costs. This provides price quotations that are based on cost per casting and a ready reference for the purchaser to arrive at unit cost. The cost-per-piece can easily be converted to cost-per-pound, but such a figure cannot be justly compared to other castings that may be ordered in different quantities or require more or less man-hours to be produced.

Some foundries, however, still retain the price-per-pound method of quoting for specific types of parts. Thus, equivalent quotations based on price-per-pound and price-per-piece may show variations when compared for individual castings. This is particularly true when the quotation is based on an estimated casting weight. Variations of actual from estimated weight still affect the cost more on a price-per-pound basis than on a price-per-piece basis. Lead-Time and First Article Delivery Essentially, the metalcasting process involves pouring molten metal into a cavity close to the final dimensions of a desired component. It is the most direct and simplest forming method available for metals and often is an essential production factor in rapidly manufacturing finished metal parts. Lead-time is commonly defined as the amount of time between contract agreement and delivery of the first article, either prototype or initial production. Lead-time is reduced with metalcasting compared to other manufacturing methods by eliminating and/or shortening the time required for tool production, parts ordering and delivery, assembly, finishing and machining.

Hidden Costs of Foreign Sourcing

In an attempt to wrap its hands around the global sourcing trend and determine prices and capabilities, Aurora Metals tested the waters on a few select casting jobs as part of its own educational mission. Throughout this process, which included a trip to Asia, the company uncovered many hidden costs that it was not aware of going into the process. David Bumbar, Aurora Metals, describes their discoveries:

Based on our learning experience, its fair to say that many manufacturers may not recognize the hidden costs of foreign sourcing, as all eyes rapidly fixate on unit prices during the search for the worlds lowest price tag. While this report was initially prepared as an internal document for company officials, it has been abstracted here as a strawman exercise to help casting purchasers understand some of the hidden costs. Depending on each firms purchases and its overall strategy, some purchasers may find that the promise of the price reduction is not worth the additional worry, time and company overhead required. Some of the main issues to consider in these hidden costs are outlined below.

Staffing & Travel Costs

For a manufacturer to rely on a foreign source to supply its manufacturing lines and keep them running, dedicated personnel will be needed. This individual will be needed to manage and oversee the following. DocumentationAccurate logs and documentation is very important. Records must be kept on the country of origin for NAFTA and other trade agreements. There have been cases in which the fines have exceeded $100,000 due to inaccurate or incomplete recordkeeping. It is also critical that documentation of export-

import insurance is maintained in the event of a claim. Separation of ProductKeeping U.S. vs. foreign product separated may be important. Examples are instances in which U.S. content must be shown in the final assembly and/or if the manufacturer markets the product with U.S. content requirements. Firms importing parts should expect additional internal administrative costs. In cases where manufacturers are dual sourcing components, this will mean more part numbers and inventory, requiring twice the work in tracking, sorting and storing of inventories. Staff travel will also be a cost that should be factored into the total acquisition costs. Figure 1 lists the annual expenses that a firm should expect in the way of personnel and travel. The travel estimate does not account for the additional insurance that most companies will want to protect their employees from illness or more dangerous matters overseas. Fig. 1. Direct Personnel & Travel Costs

Dedicated Staffer for International Sourcing: Travel Expenditures: Trips Per Year: Average Stay: Airfare/Business Class: Annual Air Travel: Room and Board: Annual Room/Board Total Annual Direct Costs:

$100,000 (including benefits) $35,000 5 10 days $5000 $25,000 ($200/day) $10,000 $135,000

Beyond these costs, there are unplanned events that firms should be aware of. As an example, two of our customers were forbidden to take scheduled travel to their Asian suppliers due to the SARS crisis. Another, who had returned from a trip to Asia, was told to stay at home for one week prior to returning to the plant as a precautionary method to protect plant employees. In this case, the purchasing agent felt a significant personal cost in the way of heavy workload after losing an additional week from the office after two overseas.

Freight & Inventory Costs

In some cases, freight apparently fails to enter the mind of some firms when evaluating offshore bids. Figure 2 lists some of the freight costs to be aware of, including ocean freight. Using China to a U.S. port as an example, ocean freightthe largest cost componentis estimated at $3800 per 40,000-lb container, or about $0.095/lb. These costs have increased 10% over the past year and are expected to continue to increase for reasons such as security costs and general operating costs. Figure 2. Freight Costs

Ocean Freight Per 40,000 lb Container: $3,800 Domestic Freight: $1000 (West Coast to U.S.) Total Freight Costs for Single Container: $4800 Air Freight for Samples (20 lb): $251

Other questions to consider include: WarehousingWill a warehouse be required? Are there inventory issues? Are a specified number of inventory turns an objective? Do you need to inventory two part numbers (one for U.S. content, one for foreign)? Is labeling required for the country of origin? Regardless of who bears it, there is a cost of money involved for warehousing. Additionally, one should consider at what point in the process the goods become the buyers responsibility. While consignment purchase arrangements are attractive to some manufacturers, such agreements require buyers to pay on quicker terms than in traditional supply arrangements. From a cash flow perspective, even a significant price reduction may not make financial sense. Domestic FreightThis is the cost from the U.S. port to the manufacturers dock. While dependent on geographic location, a typical shipment may be estimated at $1,000 from the West Coast to the Midwest. Air FreightEven under the best of circumstances, unforeseen problems will arise and air freight and associated expenses will be required. Figure 2 also shows what the air freight costs may be for 20 lb of samples or emergency product shipped from China to the Midwest.

Associated Fees & Expenses

Beyond staffing, freight and inventory, Fig. 3 describes other costs to consider. Beyond these, two other areas to consider are duties and broker margin. Fig. 3. Associated Fees & Expenses Freight Forwarder: Custom Brokers Processing Fee: Continuous Bond: Merchandise Processing Fee: Harbor Maintenance Fee: Letter of Credit $65 per shipment $100 per shipment $500 annual fee 0.21% up to a max. of $485 per shipment 0.125% content value per shipment 2% of content

DutiesDoes the product being imported require a duty? This should be determined early in the process, as well as where the part is physically produced, as differing nations have different duties. Many buyers believe that their parts are being produced in one nation only to find out that they were produced in another. Another question is whether the duty is likely to be increased in the near future. Broker MarginThe fee of the sales rep or broker should be evaluated. There will be some margin over the

foreign sources sales price to account for the carrying costs, which are often unknown. If the sales reps fee is based on an 8% markup and it is later determined that the carrying costs amount to 10%, the buyer can expect an increase in short fashion. The supply contract should specify and how when the price can be increased for this reason.

Additional Concerns
While more difficult to put a dollar value on, other issues should be weighed in any offshore purchasing evaluation. Below are a few that have come up through our experiences. Metallurgical IntegrityIs metallurgical integrity important? This may be a remedial question, but it should be asked of every part. Other questions to ask are: Will the foundry use raw material or ingot? Does it have a spectrometer or wet lab? How much confidence can be placed on a certification? If a wet lab is used, do you believe the foundry will take the time to check each heat prior to casting? This itself raises another question about how confident you can be in their quarantining system when quality issues are uncovered. ToolingWhat type of tooling is being paid for? Is it metal, wood or urethane? If metal, what grade of metal is being used for the tooling? Has it been heat treated? These questions are important because they affect the life of the tool. While the tooling often appears very inexpensive, its durability is another matter. Premature tooling wear will alter the performance of the casting, and questions on who will resolve and pay for the dimensional changes over time must be addressed. Rep IssuesAsk about the sales rep/brokers relationship with the foundry, and what degree of influence he/she can have on delivery issues, quality, etc. Is the rep willing to go overseas to resolve quality and tooling issues or will your firm be required to send engineering staff? Dimensional ConsistencyWill the parts be made on an automated machine that provides consistency or will they be made with a great deal of human variables? Inspection criterion must also be spelled out. Many quotes do not contain any type of inspection, and specific criterion is often not followed on a consistent basis. Communication DifficultiesWhile email has made communication easier, manufacturers are finding that differences in blueprint interpretations occur more frequently with overseas suppliers. Because Asian countries are 12-14 hr ahead of U.S. manufacturers, there will be a need for middle-of-the night conference calls. Time to MarketCastings produced offshore are typically delivered 12 weeks after the order. This includes 6-8 weeks to process the order, plus 4-6 weeks for ocean and domestic land travel. Just in time deliveries are difficult to forecast domestically, not to mention attempting to plan for 12 weeks ahead. Therefore, if a given part is of low volume and low predictability, most seasoned buyers agree that it is a bad idea to source offshore. Whether or not a predictable and repetitive order pattern exists should be a

first-round qualifier in any offshore purchasing evaluation. Lead-Times for ToolingTooling typically takes 4-8 weeks to produce. Air freight is advised for samples. Buyers should also plan for contingencies such as tooling built incorrectly, and the amount of time needed to adjust to such problems. Interruptions in SupplyWhat is the response plan for an interruption in the supply chain? Many buyers are dualsourcing (50% foreign, 50% domestic) in order to keep a trusted domestic source healthy and ready in the case of an emergency. As problems occur or as currencies fluctuate (see below), your domestic relationships can more easily respond to meet full production quantities, particularly on long-established jobs. Currency ValuationWhile the U.S. dollar has recently been returning to more practical values, it is still 25% higher than it was in the early 1980s. Some countries keep their currency artificially low to make their exports more attractive. Eventually, valuations should fully return to more practical levels. For this and other reasons, it is wise to see that domestic foundries are healthy enough to remain in business.

The Gap May Close

Figure 4 shows the results of this simple strawman analysis, which only considers the tangible items in which costs can be assigned. Based on this information, a manufacturer purchasing $500,000 in castings annually could incur up to 42% more costs than what the original unit price indicated. Even at $1 million in purchases, there would still be 22% tied up in the hidden costs. Fig. 4. Summary of Total Costs, Summarized by Percent of Order Inventory Personnel: Travel Expenditures: Ocean Freight ($3800 x 12 containers per year): Freight Forwarder ($65 x 12 containers per year): Domestic Freight ($1000 x 12 shipments per year): Customs Broker ($100 x 12 shipments): Continuous Bond (annually): Merchandise Processing Fee: Harbor Maintenance Fee ($500,000 year x 0.125%): Cost of Money ($40,000 per month @ 2%): Total Expenditures: $100,000 $35,000 $45,600 $780 $12,000 $1200 $500 $485 $625 $800 $199,00

Annual Sales: Annual Expenses: Letter of Credit Costs: Total Hidden Cost of Purchase

$500,000 $199,000 2% of value 42%

$1,000,000 $199,000 2% of value 22%

$2,000,000 $199,000 2% of value 12%

So if a manufacturer does not require a high dollar amount of offshore castings, the application of the necessary overheadonce recognizedmay change the purchasers viewpoint. Looked at in this light, the differential between your established source and the quoted bargains by an offshore foundry can close significantly. In our own experience, a Korean casting manufacturer raised the price 15% since our initial order was placed. While we have requested our tooling back, we have not yet seen it. This article was adapted from a presentation at the 107th AFS Casting Congress. About the Author David Bumbar is president of Aurora Metals, a copper-base alloy green sand and permanent mold caster.

SIDEBAR: A 14-Point Checklist of Off-Shore Sourcing Costs

Compiled following a nationwide survey of U.S. manufacturers, this 14-point checklist is part of a special report, Offshore Sourcing: The Hidden Costs published by the Diecasting Development Council, Rosemont, Illinois. To obtain a copy of the report, visit www.diecasting.org. 1. Overseas Travel and Lodging. Several extended trips may be required before a qualified casting supplier is even located; continuing return visits should be scheduled to monitor performance onsite. Management must be aware that a buyers desire to see the world may be hiding a bad business decision. 2. The Third-Party Factor. Use of a manufacturer or trading representatives with offshore suppliers involves costs in excess of the normal commissions. In the case of casting tooling and production, the expense of onsite presence and control cannot be sidestepped through the use of such representatives. 3. Miscommunication. Communicating important design changes and assuring their proper implementation over barriers of language, distance and culture carries built-in extra costs, regardless of trading partner agreements. 4. Frozen Monies. Common methods of financing international trade involve long-term bank deposits that are removed from company cash flow for many months. 5. Payment Sight Unseen. With customary advance payment requirementsno ifs, ands or butsthe purchaser has no right to review shipment quality or quantity before cash changes hands. 6. Added Handling Costs. Shipment damage is more likely with offshore purchases. Additional costs for packing, handling and insurance should be allocated. 7. The Paperwork Snake. Manufacturers understand that offshore purchasing involves substantial

paperwork, with added procedures, shipment documents and customs forms. 8. Excessive Inventory Requirements. Production and transoceanic shipping requirements may demand that the total amount of the casting order, comprising a companys long-term needs, be shipped all at once. Inventory storage costs should be factored into the piece-part price. Just-in-time strategies are ruled out. 9. Long Lead Times. Long offshore production lead times and common delays necessitate accurate forecasting. If a companys crystal ball is cloudy and the product demand soars or drops, commitments to overseas suppliers cannot be easily altered. Short-term cancellations are virtually impossible. 10. Bait-and-Switch. The experience of offshore purchasers indicates that an initially low casting piece-part price may go up dramatically once the tooling is in place. 11. The Price of Tooling Failure. Low tooling costs may be based on uncertified, untreated materials with no guarantees of tooling lifeforeshadowing the heavy costs of premature tooling failure. 12. Legal Liabilities. The use of uncertified, off-spec alloy often contributes to the low pricing offered by offshore casters. Even when initial onsite inspections are made, this factor can be a time bomb for manufacturers who risk disastrous product failures when such components are incorporated into their products. 13. Technology at Risk. There may be danger present when a manufacturer reveals secret technology to an offshore supplier with whom he cannot develop a close relationship. The firm may find his technology shared with his competitorsat home or abroad. 14. Market Share at Risk. There is a potential cost of creating a new competitor for the American product using the American firms marketing information, specifications and possibly even the same tooling.

Tips for Touring a Casting Supplier

By Shannon Wetzel, MetalcastingDesign.com An engineer is in the beginning stages of designing a new product for his company, and the success of the design relies heavily on the use of a cast metal component. A request-for-quote is sent out and the list of prospective casting suppliers narrowed down to two or three. The purchasing and design team decides to visit the suppliers to make an educated final choice. But the engineers design experience is mostly with fabrications and forgings, and hes unfamiliar with the metalcasting process and its facilities. Its a scenario that design engineers and purchasers are bound to run into at some point. Your first metalcasting facility visit may be intimidatingcasting plants are generally hot, often loud and sometimes odorous, and conversations with metalcasters tend to be full of jargon thats unrelated to any other metalworking industry. However, armed with the right questions, even the greenest of casting designers and purchasers can use their first metalcasting facility visit to make a well-informed assessment.

Know Your Design

Any visit to a metalcasting facility can be worthwhile, but the first visit can be the green light for a long customer-supplier relationship or a road sign telling you youre on a dead-end street. We are open to visiting the customer ourselves, but the better way is to have them visit the facility, said Bob Braun, vice president of engineering at Wisconsin Aluminum Foundry (WAF), Manitowoc, Wis. This way you can understand the requirements of the process. According to Braun, the majority of initial plant visits at WAF are through a sales contact for a specific part or parts and should include representatives of the customers purchasing, quality, engineering and manufacturing departments. Although every metalcasting facility will welcome current and potential customers differently, a design review is a critical part of the visit because it gives you the chance to discuss aspects of the components design, as well as base metal price and weight differential, face-to-face. If its an exisiting part, any information that the customer can share about the problems encountered can help the metalcasting facility avoid making the same mistake twice, Braun said. If its a new part, involving the metalcasters design team at this stage can aid in its manufacturability. The best metalcasting facilities we work with will bid and then give a pre-evalation of how the part will work with the engineering people, said Dan DeChant, engineering manager for electric motor manufacturere Baldor Electric, Fort Mill. S.C. They will work with designers on where the part is going to be chucked for machining, examine the issues of gating, porosity and hardness, and basically communicate how theyre going to process the part. Braun points out that customers should be clear on what requirements are needed rather than use a vague blanket approach. For instance, customers shouldnt ask for porosity-free castings. Every casting has some porosity in it, he said. Be more specificwhat are the material requirements? What is the casting used for? Its possible to request properties that are higher than what you really need, so be willing to work with the metalcaster on design changes.

Follow the Equipment

During the introductory meeting, the casting supplier likely will give an overview of the company. Like many manufacturing sectors, the metalcasting industry is under pressure from domestic and foreign competition. An unexpected plant closure could affect your time to market. A good gauge of the health of a company is its recapitalization plans. What have they invested in lately, and what are they going to invest in tomorrow? The new equipment may not affect the production of your part, but investment commitment is a sign that the firm will be around to be your supplier today and down the road. But a metalcasting facility doesnt necessarily need the shiniest new equipment to produce quality castings. The companys maintenance plan is a clue to its longevity. Jed Falgred, vice president of manufacturing, Dotson Iron Castings, Mankato, Minn., suggested asking if the metalcaster has some sort of preventive or predictive maintenance program to proactively take care of its equipment. This is a good sign that major downtimes due to equipment breakdowns will be avoided, he said.

Mike Gwyn, director of metals technology, Advanced Technology Institute, North Charleston, S.C., agreed. The shiniest facility is not always the best facility, he said. If Im looking for a single attribute, Im looking for bright, enthused metalcasting engineers. And from that youll find a well-organized shop floor. Maybe its older machinery, but they are taking good care of it.

Go With the Flow

The organization and operation of the plant is just as important as the equipment in a high class metalcasting facility. Your first visit will be a largely educational one, but even if you are unfamiliar with the casting process, you can be on the lookout for telling signs. As youre walking through the metalcasting facility, get a sense of the flow of information and the flow of castings, Falgren said. Be on the lookout for people working in silos, where theres no connection between departments. You can tell this by looking for inventory. Large piles can be a bad sign if theyve been there for a while. Most containers of in-process castings have tags or production sheets with them. Check the dates to see how fresh the castings are. Are they getting addressed that day? While you are walking through the shop floor, look around for castings that are similar to your part and ask questions about them. I think its a strength when a customer sees a metalcaster is making a similar part to what they want, Braun said. Naturally, were not going to open up a print, but seeing the physical part in the shop helps. Youll also want to see how the metalcaster controls its process. Metalcastings main concerns are the metal and the mold, and these parameters should be tested on a regular basis. You may not have any idea what the controls do or how they measure, but by asking, youll get an idea of whether they have some controls in place, Falgren said. For instance, controlling the sand in a sand casting facility is important in molding efficiency. Ask the employees in the testing area what they are testing for and the frequency of the tests. You wont have to be an expert on sand to see their competency level. How well does the employee understand what the tests are telling him or her? Falgren said a simple way to figure this out is to ask them to show you a test that revealed a process that was moving out of control and describe how they reacted to it. Are they doing something meaningful with the data, or is it just part of a rote set of tasks? he said. The same questions should be applied to metal control. Finally, housekeeping on the shop floor should be evident. Theres still a misconception that all metalcasting facilities are dirty, but housekeeping is a sign of pride and diligence, Braun said. Because of the nature of the process, dirt and grime will be present, but major things to look for are clear

walkways, neat workspaces and a generally trash-free environment. When you first visit a metalcasting facility, you should understand that you are walking into an environment unlike any other youve probably seen, Falgren said. Youre going to see fire, youre going to see sparks, and youre going to see dust. But sloppy workmanship or working areas are red flags. Expect that anything you touch will be hot, dirty or both, but it doesnt have to be filthy.

Dont Forget the People

A third factor in choosing a metalcasting facility is the employee population that will be handling your component. A strong engineering staff will help you save money and improve part quality, but the workers on the molding line, in the melting department and at the grinding wheel are the ones who will carry out the plan. Braun said WAF makes it a point to show potential and current customers that the operators on the floor know what is critical to the customer for each part. In a metalcasting facility, this may be through something as rudimentary as paper step sheets or as advanced as a handheld computer tracking device. The important idea is that the manufacturing details of the castings are being communicated to the shop floor operators and that the operators are comfortable and knowledgeable about the process. The metalcasting personnel better be able to tell you what theyre doing and how theyre doing it, Falgren said. Try to engage the production employees, even if its as simple as a gesture or a nod. Are they engaged in the organization, or are they just putting in their time? Did they know you were coming? It may also be worthwhile to spend some time asking about how the firm finds its employees and what training programs are in place. Falgren argues that an engaged, satisfied production workforce translates into an efficient manufacturing process and higher quality castings. Simple things like a bulletin board with fresh postings, a clean breakroom and even a parking lot full of well-maintained cars can be clues to the type of workforce employed and how it is treated. ECS

Supplier Green Flags Strong sales figures Busy machines and a shop floor with plenty of work in place Open plant tour with questions answered easily and comfortably Clear walkways, tidy workplaces Safety equipment used Progressive capital investment plan Supplier Red Flags Poor housekeeping, evident garbage in work areas, no clear pathways Prohibit you from viewing certain areas of plant (unless for safety or proprietary reasons)

 Unprepared for visit or employees unaware of a meeting with the customer Evident lack of safety procedures