Feb 20, 2001

WHAT CASTINGS BUYERS WANT TO KNOW

An Interview with Mike Kurz, Manager of Purchasing, Intermet (Sturtevant)

We wanted to know what kind of information would be most useful for foundries to provide in their company listings in the World Foundry Guide, and how buyers and suppliers of castings could most usefully interact via our site. One of the people we talked with was Mike Kurz, Manager of Purchasing for Intermet's Racine and Pulaski facilities.

CastingTrade: Mike, this plant does both diecasting and machining. So why do you buy castings from outside firms?

Kurz: We do have a very substantial diecasting capacity here, but we also outsource some of the diecasting and then finish those parts in-house.

CastingTrade: Is the Internet having an impact on the way you carry out your work?

Kurz: Unquestionably. The biggest single factor is e-mail.

CastingTrade: Do all of your suppliers now use e-mail?

Kurz: Not yet -- I'd say we're at about half. But the other half are sure to come along pretty quickly.

CastingTrade: Why is it so important?

Kurz: I need updates -- a lot of updates. You see, I have to juggle daily usage reports from customers with what we have on hand and what we have coming in from suppliers. I need daily status reports from vendors on production against our order - in some cases twice daily. Now, there are two ways we can go about this. We can handle it with a phone call, but then that's ten different phone calls I have to field just to get a few numbers. (Not to mention the time it takes if I have to do the calling and chase down the numbers!) Or I can get the information in an e-mail. I think it's pretty obvious which is more efficient.

CastingTrade: How about automated procurement systems, things like that? Do suppliers also have to be hooked up directly to your computers and all of that?

Kurz: No, we just want to be able to communicate by e-mail! At least for now. Oh, yeah, and I guess it would be nice to be able to get some data in an Excel spreadsheet or something simple like that.

CastingTrade: What about other computer technology? Like CAD/CAM software?

Kurz: That's definitely a key part of our business now, and one of the big functions we perform in the supply chain is helping to manage that piece of the process. We have invested in about five different CAD/CAM software packages, because our customers in the automotive industry each use a different one, and we have to be able to collaborate with them using the system of their choice. Now, when it's time to turn around and communicate with our suppliers, we can provide the design information in a range of different formats, so there's sure to be a way for them to handle it, whether they've got sophisticated software or not.

CastingTrade: Tell us about the ordering process. Do you always put orders out to bid to multiple vendors?

Kurz: Well, I'll say this: the answer is yes, provided we have qualified buyers to bid. And there are more cases than I'd like where we don't have several to choose from. I'd definitely like have a more extensive a supplier list. It is absolutely my practice, wherever possible, to give everybody a shot at the business, without playing favorites. As long as they're qualified.

CastingTrade: "As long as they're qualified." Let's come back to that in a minute, but first, since you expressed an interest in having a more extensive supplier list: any particular needs you'd like to mention?

Kurz: Well, we're always interested in being in contact with people who have high-tonnage range diecasting capacity, let's say 1400 tons and up.

CastingTrade: Any geographic limitations?

Kurz: Well, there are obvious benefits to working with local suppliers. But, as a practical matter, we work with suppliers throughout the U.S. I guess I'd say that if a supplier has the right capabilities for a job, including cost, then geography doesn't really matter.

CastingTrade: How about outside the U.S.?

Kurz: International purchasing is not currently a big part of our business. But you look at many of our customers, moving assembly to places like Mexico, and Spain. We have to come up with strategies to supply their needs -- both in terms of price competitiveness and service.

CastingTrade: All right. Now -- how do you find out if they're qualified?

Kurz: In some cases they have to be QS9000 certified or we can't work with them on that particular order. And we always like to see QS9000 or ISO9000 certification. Without it, well, a lot of times we send a team from purchasing out to assess them. It would be easier if we could get them to assess themselves!

CastingTrade: What do you mean?

Kurz: Well, there are really a basic set of questions that I need answered. It should be possible for people to provide those answers, without making us go dig them up.

CastingTrade: Like what?

Kurz: Number one: capacity. Overall capacity and open capacity. If I could have a convenient way to know who's got open capacity to do what, that would be just outstanding.

CastingTrade: People can be reluctant to make that kind of information public . . . .

Kurz: Granted. But a good place to start is with a machine list. As detailed as possible: brand, tonnage . . . and, again, identifying open capacity for each if possible. That's for the casting as well as the machining side.

CastingTrade: Metal types?

Kurz: Sure. 380 vs. 383, that sort of thing. What we'd really like to see are products – the ones they're currently producing, and ones they’ve produced in the past. And we’d like to have an idea of the customers they produce for. Those both tell us a lot. But especially the products themselves. You have to understand: there's a learning curve with every shape that you cast, and if someone's got experience with a profile that's similar to one that we're ordering, well, then we're that much farther ahead of the game.

CastingTrade: What else?

Kurz: Well there are the quality certifications I mentioned earlier. And, by the way, even if a vendor doesn't yet have the ISO certificate, but if they're working on it, it helps me to know about that. I'd like to know about their future equipment plans, too.

CastingTrade: How can that be helpful?

Kurz: We're talking about building a relationship. My decision about going forward with a vendor depends on juggling a number of variables -- and those aren't just limited to what that vendor can do for me today. I have to decide if the total picture is a good fit with our long-term needs.

CastingTrade: What else do you need to know to get the "total picture?"

Kurz: Would you believe . . . plant cleanliness? It's funny how much that can tell you. And that's an example of the kind of thing we learn by going out and visiting a plant in person. Within 5 minutes, we can tell whether that company takes care of their own facility. And that's important; if they don't take care of their own stuff, do you think they're going to take care of your stuff? I also want to get some sense of their manufacturing efficiency. Now, in theory, it shouldn't matter to me how efficiently they produce, because my price is fixed! But the reality is, efficient production is a good indicator of whether they're going to fulfill our order without problems.

CastingTrade: And CAD/CAM?

Kurz: Definitely.

CastingTrade: What you said earlier about suppliers "assessing themselves" -- could that really work?

Kurz: I don't know. I guess ultimately someone we trust has to put their seal on it, you know, say, "I've looked at this and it's for real." On the other hand, we could go a long way down the road on the basis of information supplied by the vendor themselves.

Mike Kurz can be reached at mkurz@notes.intermet.com