Page 24 - MetalForming July 2009

Medical Market
had the quality track record the OEMs look for, with expertise in high-volume manufacturing and 100-percent parts inspection, to achieve PPM levels in the single digits. Any operational changes were minimal. But it did take us about five years to get a strong foothold in the industry and convince the cus- tomers to trust our ability to develop prototypes, consult on engineering changes and move into high-volume production.”
Developing “Strategic Customers”
Weiss-Aug’s approach for expan- sion in the medical arena focused on developing strategic customers—those that would generate at least $1 mil- lion in annual sales, says Weissenrieder. He finds that relationships between suppliers and customers are strong in the medical industry, dovetailing with the belief of Covidien’s Nisco that his firm’s suppliers are an extension of their company.
“Our medical customers appreciate our manufacturing expertise,” Weis- senrieder says, “which allows them to focus resources on new-product devel- opment, their real opportunity to gain a critical competitive advantage in a very competitive environment. Then, our engineering and manufacturing expertise focuses not only on honing a process to ensure quality, but also on ways to minimize costs, obviously a hot topic in the healthcare industry today. We do this by developing com- plex stamping dies that allow us to combine several parts into one, or to perform multiple operations in the die and eliminate secondary operations and the associated added part-han- dling operations.
“We also find,” continues Weis- senrieder, “that when our company is allowed to engage in these types of part- nerships with customers, and our voice is heard and plays such a major role in the success of a new product launch, that our people are inspired to go the extra mile to help the customers. Prob- ably 75 percent of the projects we com- plete for our medical-industry cus-
tomers include significant design input from our team of engineers, to optimize manufacturability, ensure a safe and quality product, and also minimize costs.”
The firm employs eight design engi- neers, up from three just a few years ago. Cost-control requirements have medical-device suppliers focused on automation, and Weiss-Aug fits the bill. The firm has invested plenty to auto- mate its assembly as well as its inspec- tion functions, since many of the parts it manufactures require 100 percent inspection. And, its newest stamping presses, including a 60-ton Bruderer acquired last year, are long-bed (to 30 in.) models that, says Weissenrieder, “allow us to design and run more com- plex and longer dies. Our dies have as many as 30 to 35 stations, so that we can perform more functions in the die, such as in-die assembly. We have eight of these long-bed high-speed presses now, which allow us to eliminate secondary operations, driven by the medical indus- try’s need for cost reduction. It’s the best strategy for us to compete with
low-cost countries.
“We also can no longer afford to
sort parts,” continues Weissenrieder. “So, our processes need to be robust, ensuring zero defective parts shipped to the customer. This requires a robust design and robust tooling, with a man- ufacturing workforce that can run and troubleshoot our increasingly complex tools.” Weiss-Aug added 60 employees to its ranks within the last 2.5 years, and received a training grant from the state of New Jersey last years to help its expanding workforce meet the needs of its customers.
OEMs Banking on Lean to Control Costs
On the OEM front, Covidien and others are committed to helping their suppliers take waste out of the supply chain and become as lean as possible. “The industry is more cost-conscious than ever before,” says Nisco. “So we are pushing our suppliers hard to imple- ment lean projects and take the waste out. We spend a lot of resources and
time working onsite with our suppliers to implement best practices and lean initiatives. We’re focused on identifying those suppliers that share our goals and ideals, and developing them as partners.”
Can automotive suppliers get in the game? Nisco thinks there could be opportunities.
“While a lot of automotive suppliers make larger parts and we tend to source smaller parts,” he says, “certainly those companies come with a wealth of knowledge that cannot be discounted. They are used to working in high-pro- duction and high-quality environments, and the PPAP process requires signifi- cant attention to detail and quality con- trol. That gives some of those suppliers a leg up on others competing in this arena. And, many automotive suppliers have a global footprint, which will become more important as we look to expand Covidien globally and develop a local supply base wherever we set up shop.” MF
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