Establishment of Indian suppliers for castings in the small series business
Goal: Global sourcing of castings for worldwide production sites of the group Make-or-buy
Project
Duration: approx. 6 months
Role in the project: Project Manager
Operational area, geographical:
- India
- Brazil
- Global
Company
Type: Mechanical engineering
Turnover: 5 Bn. EUR
Number of employees: 25,000
Description
- At that time, the company owned three foundries in Brazil. Consideration was given to investing in a fourth
- The Total Cost of Ownership methodology should be enforced
Measures
- Analysis of the current situation (costs / portfolio / capacity utilization)
- Scenario building (all internal – mix – all external)
- Decision to build up international suppliers
- Supplier scouting / auditing and support in the start-up phase
- Portfolio analysis – decision “larger series externally – smaller series internally”
Team
- 1 Strategic Buyer Casting
- 1 Foundry manager
- 2 Employees quality assurance
- 1 Logistics employee
- 2 Employees supplier development
- 1 Controller
Reporting
- Weekly team meeting: comparison of target and actual status
- Monthly meeting with business unit managers
- Final reporting to the management / board of directors
Interfaces
- Board of Directors
- Head of the Business Units
- Purchasing of the various plants
- IT
- Engineering
- Quality
- Finances / Controlling
- Legal Department
Success
- Cost transparency for castings
- No investments were made in another foundry – capital could be used elsewhere
- Global sourcing was pushed further in the company due to the example of cast iron
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