November 17, 2003
MiBiz Network
By Tim Gwozdz

MUSKEGON - As automotive suppliers struggle to meet the demands of customers by cutting costs in the face of falling profit margins, a group of Muskegon area companies has teamed up to secure a substantial chunk of new business.

Great Lakes Die Cast (GLDC), Nowak Machined Products, CTN Prototype Services LLC and Red Arrow Associates collaborated to acquire a program from Magna Donnelly Corp. for a critical component on a Dodge Ram exterior tow

package mirror.

Ronald Tyczynski, sales representative for Grand Haven-based Red Arrow, represented GLDC in getting its foot in the door at Magna Donnelly. Over two years he built up a relationship with the mirror producer and finally this September Magna Donnelly gave GLDC a chance, turning over the Dodge Ram project to them.

GLDC Vice President of Business Development Bob Johnson explained that the volume rate for the Dodge Ram mirror was greater than had been anticipated, putting pressure on the supply base. As volumes increased it was evident to Magna Donnelly that the original supplier had not optimized its processes and could not meet the demand. The program was awarded to GLDC.

When the opportunity arose to take over the program, Johnson knew that GLDC could not deliver second best.
"Ron and I had learned enough about this customer to understand clearly that they had an expectation of superior performance," said Johnson.

To meet that expectation, GLDC created an internal team dedicated to the program and called in Keith Ramthun, vice president of sales for CTN Prototype Services LLC, as program manager. Ramthun understood the product development process because of his reputation with CTN. Because CTN was engaged in work for the aerospace industry, he also understood Magna Donnelly's performance demands.

Johnson also called on another trusted business ally, Nowak Machined Products President Ken Nowak. Nowak had worked with GLDC on several complicated projects, including the Cadillac XLR folding hardtop convertible. "With the success of that program, they were a natural to talk to about this program," Johnson said.

Analyzing the processes used by the previous supplier, the newly formed coalition adjusted its methodology to create a much more efficient way to produce the component.

The part undergoes a great amount of stress and requires superior metallurgical integrity. GLDC tightened controls on the chemistry of the alloy and used a technically advanced automated casting process to make the component.
"The automated capability allowed us to assess by every individual shot if the component was made to the proper parameters and if not, automatically reject it," Johnson said.

Nowak used a new approach to machining the component and a new fixturing format, resulting in a better quality, more structurally sound product and higher throughput volumes. "With the fixturing we use, the part is 'machine complete' with one loading," Nowak said.

The machining improvements were made while maintaining competitive pricing. As a bonus for Magna Donnelly, Nowak's machining alterations eliminated a final assembly problem. With that problem gone, the final assembly process has been significantly sped up.

With quality standards a critical issue, GLDC took a bold step. "To eliminate visual defects from real defects, we elected to employ aerospace inspection techniques," said Johnson. "In conjunction with Magna Donnelly, we did penetrant testing, which is typically done on aircraft components."

GLDC went to the experts, contracting with XRI Inspection in Whitehall for the penetrant testing and initiating the help of Howmet Corp.'s Operhall Research Center to perform micro-structural evaluations of the components.

Tyczynski said Magna Donnelly is pleased and impressed by the collaborative effort, especially considering the time constraints placed on the project.

"Due to production pressures Great Lakes was asked to start on Labor Day weekend. As the program was getting started I made a number of visits to the customer and I could see people working under pressure, but within two weeks it calmed down to a nice, smooth flow. You could tell it was a good situation for everybody," said Tyczynski.

Johnson describes the collaborative effort between GLDC, Nowak, CTN, Red Arrow and the other partners as a big win. "This is really a story about how persistence can pay off and knowing the right people with the right capabilities to employ on the right task is a key to success," said Johnson.

The benefit being reaped is something not often heard of today - the addition of new manufacturing jobs.

"This program, in conjunction with some other furniture products we've brought in recently, has allowed us to increase our hourly workforce in excess of 30 percent, roughly 40 people," said Johnson. Nowak has added three people as a result of the project.

To those involved in this team effort, nailing down the Dodge Ram component is just the beginning.

"This is our first program with Magna Donnelly and we are by no means done with them. By establishing ourselves as the technical solution it gives us a better opportunity to look at more components," said Johnson. "We can walk in virtually to any customer with the confidence that this team will succeed. There's something to be said for trust."

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This article appeared in the November 17, 2003 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.