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in Time

Newsletter from Schnitzer Group | Edition 01.2011

No more chip – what now?

Electronic components have shorter and shorter lifecycles. This is a problem series. These electronic components are
mostly produced by international con-
for OEMs and suppliers who have to ensure that they remain able to deliver
cerns abroad and are used in many differ-
over a long period of time. ent products, mostly on the consumer
market and in high quantities. Only a small
Suppliers in the automobile industry have nents in this period of time, it can be­­ amount of these mass product compo-
to guarantee the supply of their products come an issue when it comes to electro­ nents are built into automobiles. Electro­
during the serial production of an auto­ nic components. Electronic components nic components are continually being
mobile. As a rule this is between four to can sometimes be characterised by very further developed or replaced by products
eight years. For a further 15 years they short production cycles. They are often which are cheaper to produce, are smaller
then have to ensure that they are able to used in products where a sub-supplier or significantly more powerful. This means
deliver spare parts. Although it is not suddenly discontinues the supply of that they can only be produced over a
a problem to supply mechanical compo- those components within an ongoing limited period of time. After this time it is
no longer possible to buy the old com­
ponent. With the discontinuation of the
product comes the request to place a
Last Time Buy notice.

No more chip – what now?

There are precisely three ways for a

supplier to remain able to deliver:

1. He finds a substitute product which

can be integrated with little effort.
2. His product has to undergo a “redesign“,
which means that he constructs his
product in such a way that an alternative
component can be inserted. This means
he faces a host of challenges: Costs
increase as he has to adapt his tools. He
needs capacity for the development of
the component. And, he cannot be sure
Photo: 123rf, SergeiPopov

that the component to which he adapts

his product, is available on the market
for a longer period of time – this may be
discontinued as well. continued on page 2
continued from page 1

No more chip – what now?

3. He ascertains the amount of compo- have not yet realised what risks are hiding
nents he needs until the end of the serial in their vehicles.” Schnitzer therefore offers
Dear Readers, production and for spare parts delivery, its customers consulting in the development
places the Last Time Buy notice and stores of alternative solutions, provides support
Risk management – that means the components. The problem here: A lot in the selection and evaluation of suppliers
of electronic components can only be kept and prepares negotiations with manufac-
recognising risks, eliminating them
in storage for a certain amount of time; turers of electronic components.
if possible and having a solution at after this they cannot be processed. In the
meantime, several service providers
hand in an emergency. In our field
have specialised in the long-term storage
new risks are being created at of electronic components. Building
present; risks which many companies production
The discontinuation of products puts many
are not yet prepared for. The more companies – manufacturers, suppliers and
plants in China
electronics built into a vehicle, the OEMs – in a difficult situation. They were
used to relying on high-performance and The European supplier was in dire straits
bigger the dependency on chip and
reasonably-priced electronic solutions and when an OEM urged them to build a pro­
component producers. They on the happily built them into vehicles. Contrac- duction plant in China. Regardless of their
other hand, orientate their develop- tual regulations on long-term de­­livery
strong position here, China was a white
obligations are not usual here: Due to the
ment cycles towards mass products small amount of orders on the automobile spot on the map to date. They therefore

such as Smartphones and games market (as compared to the consumer turned to Schnitzer and contracted the col­
market) producers simply refuse them. leagues with the construction of a factory
consoles which, as opposed to the
in Shanghai. “The client required the whole
automobile industry, have incredibly “Companies have to rethink quickly in this thing to be a turnkey-project”, reports Axel
situation“, says Peter Schnitzer, Head of
short product lifecycles. You can Oroszi, Manager of Schnitzer Consulting
the Schnitzer Group, “Simply because the
read about why this can become technical and financial risks can scarcely Shanghai, “In addition the whole project
be calculated. Manufacturers and suppliers had to be managed under ambitious cost
a real procurement risk to be dealt
have to deal with joint long-term solutions and deadline conditions.” The contract
with by all those involved in this from the early planning stages.” Even elec- encom­passed the local procurement of vari­
edition of the newsletter! tronics suppliers have to adapt to market ous resources for the production plant near
conditions. Schnitzer advises setting out
Peking. The Schnitzer team researched the
exact delivery agreements in order to plan
We hope this is a stimulating read whole job. The experts inspected the ma­
in the longer term. Alternatively from the
outset, developers strive to design their chines, tools and double checked everything
products in such a flexible way that they as well as carrying out all necessary func­
can integrate alternative suppliers without tional tests. The customer was thus able to
much work. “The problem of the shortage take over a completed factory on the stipu­
of electronic components will increasingly
Your Peter Schnitzer lated date and begin production.
hit automobile manufacturers and suppliers”,
Peter Schnitzer forecasts. “Many of them

Certificate with precision: Fischer Präzisionstechnik

Fischer Präzisionstechnik (precision engineering) in
Wangen-Schauwies has been certified in accordance
with DIN EN ISO 9001:2008. The audit was mastered
by the manufacturer of precision parts for machines
and tools without any deviations. The certification was
precluded by intensive preparations which were exten-
sively supported by Schnitzer. Responsible for this task
was Wolfgang Strotmann, Area Head Quality Mana­
gement at the Schnitzer Group and examined internal
auditor in accordance with the automobile standard
ISO/TS 16949.
Fischer Präzisionstechnik passed the audit with flying colours thanks
to the support of Wolfgang Strotmann (1. f. l.)
How does tool
controlling work?
Tool controlling is a service often in demand in the Schnitzer-Portfolio. There is an optimised process for the supervision of toolmakers.

inspected to avoid errors. If components

Systemic Projectmanagement
have been sub-contracted, the inspection
is carried out with the sub-supplier on-site.
Kunde / Customer - Projekt / Project Thema Ersteller / Created by

XY AG - 08/15 Verkleidung Musterteil MM

nächste grün
The customer, supplier and perhaps even
WKZ 1.Fkt.Probe
ZB / ET Bezeichnung Werkzeugart
Fkt. Probe
Optimierungen gelb
their toolmakers receive a detailed docu-
1. Verkleidung Musterteil 1 Spritzgusswerkzeug 1-fach Mustermann und Söhne KW 05/2011 t.b.d. werden definiert gelb mentation of the visit. During the next
Das Werkzeug für Verkleidung Musterteil 1 ist abgemustert. Es wurden Oberflächenoptimierungen festgelegt. (Bild 1 und Bild 2)
Der Optimierungsbedarf an dem Werkzeug wird noch detailliert festgelegt und mit Terminplan seitens Mustermann und Söhne bestätigt bis Ende KW07/2011. appointment with the toolmaker a compar-
Der Optimierungsaufwand ist im normalen Umfang realisierbar.
Es wurden laut Fa. Mustermann und Söhne ca. 70 Satz aus der ersten Abmusterung zu Fa. Musterfirma verschickt. ison is made of the manufacturing status
using this report as a basis. In this way,
2. Verkleidung Musterteil 2 Spritzgusswerkzeug 1-fach Mustermann und Söhne KW 05/2011 KW 10/2011 werden definiert rot
Das Werkzeug für Verkleidung Musterteil 2 ist abgemustert, in einem Nest weist das Werkzeug eine starke Riefe im Sichtbereich auf. Eine Prüfung seitens Fa. Mustermann und
possible foreseeable delays can be identi-
Söhne / Fa. Musterfirma soll zeigen ob die Wandstärkentoleranz ein Auspolieren dieses Fehlers möglich macht. Alternativ muss aufgeschweißt werden (Achtung: Sichtseite und
Narbstruktur) oder evtl. ein neuer Formeinsatz erstellt werden. (Bilder 3 / 4 / 8) fied. If the deadline should be endangered,
Der Optimierungsbedarf an dem Werkzeug wird noch detailliert festgelegt und mit einem Terminplan seitens Mustermann und Söhne bestätigt bis Ende KW07/2011.
Tutsch informs his customer immediately
and conducts a talk with them and the
3. Verkleidung Musterteil Tülle 3 Spritzgusswerkzeug 2-fach Mustermann und Söhne KW 09/2011 KW 14/2011 definiert grün
Das Werkzeug wurde seitens Fa. Mustermann und Söhne vorgezogen (auf Wunsch von XY AG aufgrund Montageproblem, schwieriges Aufstecken / notwendige Versuche)
Der Werkzeugterminplan liegt vor und der Werkzeugtermin wird weiterhin bestätigt.
suppliers to work out the best way to pro-
Die mechanische Bearbeitung ist gestartet, die Formeinsätze sind geschruppt und zur Zeit beim Härten, Rücklauf am 10.01.2011.
ceed. “As we know the position of both
Die auswerferseitige Formplatte ist beim Fräsen.
parties, we can suggest appropriate meas-
Je nach Kapazität zur Abmusterung bei Fa. Musterfirma wird das Werkzeug evtl. erst in KW10/2011 gemustert.
ures to ensure deadlines are met”, he
The meeting-/visit minutes record in detail how the tools are being created and in which stage they are at.

In order to ensure smooth operations be-

Automobile manufacturers like to place
Name: Muster In the control of progress all the tools Ausdruck vom: 09.05.2011 fore the start of production, reliable tool
tool tracking in the hands of specialised needed on certain deadlines are of the tracking is essential. The methods stand-
service providers. One of them is Schnitzer ­utmost priority. Various pieces of informa- ardised by Schnitzer for this purpose have
Consultant, Gernot Tutsch. He begins his tion are documented by Tutsch by hand a proven track record and have already
projects with taking an inventory at the and with photos in standardised forms. safeguarded against many an unpleasant
custome r: “We define which components Important is that each and every tool is surprise.
are to be dealt with and which tools need
tracking”, he reports. “Finally we look at all
the relevant documents such as deadlines,
parts lists, component sketches and we
then exactly clarify the supply chain.”
Schnitzer off road
During the first visit to the supplier, Tutsch A long-standing tradition at
communicates the planned program
and the current status of the project and Schnitzer: The annual skiing trip
compares the customer’s documents
for the whole team. This time
with those of the supplier. To be able
to evaluate whether the toolmaker of the they all went off for three days
supplier is in a position to deliver the
ordered tools in high quality and at the to the picturesque ski resort
required date, an on-site visit follows. Here
Tutsch once again firstly compares the Fiss-Ladis. Team member
documents – this time between those of
Herbert Hojnick organised the
the supplier and the sub-supplier. Tutsch
knows well: “It sounds obvious but trip once again. Hojnick is the
practice shows that a lot of coordination
problems have their roots here.” ­Managing Director of Schnitzer

During the following visit to the production International Swiss GmbH,

Photo: Fotolia, danielschoenen

plant he checks whether the toolmaker

and for him as an Austrian and
makes all the tools himself or contracts
them to a sub-supplier, whether the mate- Swiss resident, it is a home
rial has already been procured and whether
internal order numbers have been issued. game every time.
Systemic project management in pr actice

Systemic stands for cross-sector

ferred and integrated. There are provisos reduces alteration costs, encourages
because quantities in the automobile adherence to deadlines, saves resources
industry are higher and budgets larger. and finally leads to satisfied customers.
Decisive, however, for the transfer of These results can be achieved indepen­dent
methods and processes is the systemic by of the scope of the project or the invest­
which the project has been structured and ments planned.
realised. And what is more: The transfer
of innovation knowledge and new tech­ Even now technologies are growing closer
nologies can also be transferred into the together and product characteristics are
other direction of the automobile industry. noticeably similar to each other. Classic
Ideally synergies are created to be used auto­mobile suppliers will take on the
by all the fields involved. role of technology suppliers in the future.
Cross-sector and cross-technology, a
Line production in the automobile or systemic view will thus become a critical
electronics industry requires a high degree factor in the success of a project.
The automobile industry is still a driving of process-monitoring in project manage­
force in technical progress. Represen­ ment as well as in manufacturing. It is
tatives from other fields are however, essential here to recognise project-, manu­
sometimes sceptical about whether pro­ facturing- and quality requirements early
duction methods and process-monitoring on, in fact as early as in the planning stage
from the automotive area can be trans­ and then realise them. This consequently

New on board: Reinhold Scheiffele

As of 1st April, Reinhold Scheiffele has been heading customer
management for Schnitzer in the Wangen office. His tasks Schnitzer Group
include maintaining contact to existing customers, dealing with Schnitzer
their requirements and opening up new fields of business – for Anlauf- und Projekt-
the Schnitzer-Group and for their customers. Before Scheiffele management GmbH
came to Wangen, he worked in Technical Sales, Marketing and Paradiesstrasse 4
Business Development at a system supplier in the automobile 88239 Wangen im Allgäu
industry and in the aviation industry (Airbus). Germany
Phone +49 7522 7079 69-0
Fax +49 7522 7079 69-18
Gernot Tutsch: Schnitzer

Over rough and smooth International Swiss GmbH

c/o OBT AG
Hardturmstrasse 120
Gernot Tutsch likes At the Schnitzer Group since 2007, the 8005 Zürich, Schwitzerland
to reach his goal Senior Manager has been working on a Phone +41 43 818-2536
quickly and without project for a customer in his location for Fax +41 43 818-2537
deviations. He loves the last 13 months ensuring production
obstacles as they readiness for the coming vehicle series. Schnitzer
represent challenges His tasks include, for example, the plausi- Consulting Shanghai Co. Ltd.
on the path forward. bility check and monitoring of deadlines c/o German Centre for Industry
He leaps over them, for production of serial tools and produc- and Trade Shanghai
bypasses them with tion plants as well as safeguarding adher- 88 Keyuan Road
­elegance and also ence to deadlines ensuring component Tower 2 Office 626
endeavours to get availability to Grade 1. Following his ap- Zhangjiang High-Tech Park
to uncomfortable terrain first. This also prenticeship in machine and tool construc­- Pudong
applies to his leisure activities: The tion, the Franconian did a degree in tech- 201203 Shanghai, China
42-year old is an enthusiastic mountain nology and subsequently worked as a tool Phone +86 21 2898-6184
biker and motocross driver and speeds tech­nician for extrusion in aluminium ex­ Fax +86 21 2898-6252
along the countryside with his bike or trusion moulding processes and as sales
cross machine. His passion for difficult manager for tool processing technology. info@schnitzer-group.com
conditions help him with his work. Gernot Tutsch is married with two children. www.schnitzer-group.com