Featured October 14, 2005

Case Study Archives

The TPR interviewed Tom Frank, Sales Manager at MPC, Inc., a custom injection molder of thermoplastic components and assemblies based in Walworth, Wis.  We also enjoyed a plant tour of the five-building complex where the company is headquartered during the AMBA Fall Conference on Sept. 30.  While MPC serves the automotive market primarily, the company is working to penetrate some non-automotive markets such as medical devices and power sports and has made significant strides in that direction.

What is your company niche, and what does your company do that is notable, unique or different?

Our company niche is powertrain components, building engine shields, reservoirs, coolant bottles, break fluid reservoirs and related auto components.  What makes us different and unique is we have world class quality systems in place and our engineering and design capabilities are superior.  For example, we’re particularly adept at “black box” component design, where our customer can give us certain size parameters (the black box) and specify product features and functions and we will design a product to fit those qualifications.  Our extensive experience in the automotive market, along with our Advanced Quality Planning systems, have made us a valuable resource to our customers.  

Our Suction Blow Molding (SBM) and Parison Manipulation capabilities are also unique as only one other U.S. company offers SBM capabilities to their customers.  MPC uses these processes to make cost effective air ducts and other tubular shapes with complex bends.  The process results in three different layers of material that actually give a product both hard and soft components.  Through Suction Blow Molding we can reduce the weight of the part, eliminate corrosion, increase cycle times and reduce scrap.  It’s been a very successful service we’ve developed. 

Our harness components for automotive evaporative emission tubes are also unique.  We extrude tubes, and have different bend processes that we can use depending on the size of the tube.  We route the tubes around other components.  It’s better than rubber because it’s formed to shape so you don’t have to route it in the engine compartment. And, the longer the tube length, the more cost effective it is than rubber tubing.  

MPC has a tool maintenance department.  Besides the tool maintenance department, MPC operates a tool building company and manufactures about 10 percent of its molds.  Currently, eight toolmakers, including one lead and one apprentice toolmaker, concentrate on building small to medium size molds, gages and fixtures for use at manufacturing plants within the company structure. 

Generally speaking, this is a great company – MPC is a family owned business that has remained family oriented. 

 

When and how did you get into the industry, what attracted you to it? 

My father pursued a career in sales and currently holds an executive sales position for a casting company.  So I definitely grew up around manufacturing.  I also wanted to pursue a job in sales, but felt the plastics industry offered greater career growth for me, and because, at the time, so much of what was once metal was going plastic.  What attracted me to MPC was fate – After graduation from the University of Wisconsin-Whitewater I relocated to the Geneva Lakes area and took hold of the opportunity to work at MPC, a plastics company. 

As for MPC, in 1972 the founder of the company, Jay Brost, developed the check valve for emissions on vehicles.  It literally changed the face of emissions products in the automotive industry and made the first 100,000-mile warranty possible.  The check valve was patented and manufactured for Ford Motor Company and literally took off.  As a result, the company grew from a home garage-based business in Fontana, Wis., to one employing over 1600 people today.  The best part is that the company still encourages the entrepreneurial spirit to thrive.

 

Relate a notable "best time" for your company.

Right now.  I think we’ve got so many things going for us.  We’ve added a lot of tools in the company that help us serve our customers like never before.  In addition, we were named Plastics News’  2004 North American Processor of the Year.  We continue to grow as a company – charting consistent double digit increased annual sales revenues.  Sales growth for 2004 posted an 11 percent increase over annual sales for 2003. The company is on track for another record sales year –sales volume for 2005 is projected to post a 12 percent increase over 2004 sales. On top of that, our general sales [non-automotive] group grew 35 percent in 2004 compared to 2003 sales numbers.  MPC is able to offer so many processes, as well as value added services, that it has really made this a great time for us and our customers.  There’s a commitment to growth throughout the whole industry, too, which is exciting.

This year the non-auto group is going to do about $25 million in revenue – just five years after it was started.  We’ve grown our sales force and added personnel in our operations.

 

Similarly, relate notable challenges that your company has overcome.

If you were to go out into the auto industry, you’ll find that we’re known as a company that can come in and solve problems in design, production, etc., within tight time frames.  We can take something, design it from scratch and do testing – ensuring a product performs the way it should and better. We help the customer envision their product in workable form. 

For example, with one of our major customers, we just finished a project where the coolant system didn’t work the way they thought it would.  We were able to help them.  The problem was that there was a component that they didn’t think was needed in their engine system.  But the engine didn’t cool properly without it.  Because this component was the last thing to go into the engine, there were space issues and due to those space issues, the component had to be installed in a high temperature area of the engine so it had to be molded using special materials.  Given these parameters we had to design a whole new component that would properly cool the system.  Not only were we able to develop this new product but we still met their deadlines for the launch of the new engine.

 

When you are working on projects with your customers, what aspects would you like them to        better recognize?

When you’re on a deadline, extensive changes to the project can really throw a wrench into the manufacturing process.  It’s better to anticipate those changes ahead of time and analyze the project up front to maybe avoid those changes later.  We do a good job of maximizing a project.  Get us more involved with the project and how the product is used.  We can bring a lot of value to our customers that way.

 

List newly acquired technology, machinery or key personnel (in last year).

We’re adding another blow molding machine very soon, and several injection molding machines have been added, including a second 1,430 ton press.  We also just purchased MoldFlow software. 

As for personnel, MPC has individuals on staff dedicated to process improvement through lean manufacturing and Six Sigma methodology. Academy Certified Master Black Belt Bob Rome focuses on Six Sigma principles to obtain project improvement objectives with a team of active participants. The group members work on project flow strategies that will improve processes or render a cost savings.

Director of Lean Manufactuing Jim Schneberger works with various individuals and departments to implement systematic change by applying the 5S System to identify and eliminate waste.

 

Has your company recently expanded?  Plans to expand or form partnerships/alliances?

For the last few years, expansion has been consistent. During 2004, we added 20,000 sq. ft. to the Mega Building where large tonnage molding is done.  This past June an expansion to the Prairie du Chien, Wis., facility was completed – adding 24,800 square feet to the plant.  The newest expansion project is the recent acquisition of a 120,000 foot distribution building in Delavan, Wisconsin.  MPC will utilize 80,000 sq. ft. at this new site as the nucleus for MPC shipping and receiving traffic.

We do have plans to expand further.  We want to continue to grow.  Our goal is to become a $300 million company.  We’re always open to the idea of forming partnerships and alliances.  A particular target area of growth is the New Domestics, the Japanese automotive companies. In Southfield, Mich., we have a sales group, many of whom speak fluent Japanese, dedicated to our Japanese customers, and they make regular trips to Japan. We are focused on serving our international customers to the best of our ability.  We’re also committed to growing in diversified markets (marine, power sports, medical, heavy truck, construction equipment) as well.

 

Are you involved in any industry organizations or educational programs related to the trade?

We have an education reimbursement program at MPC and local colleges that offer technical programs where our employees can enroll to further develop their skills.  In addition, MPC supports and encourages its employees to obtain membership in local and national professional organizations. Some of the organizations represented are: Society of Manufacturing Engineers, Society of Plastics Engineers, American Society of Mechanical Engineers, American Society for Quality, American Society for Training and Development, Society of Automotive Engineers, Society of Women Engineers, OESA (Original Equipment Supplier Assn.) and OPEI (Outdoor Power Equipment Institute).

 

What do you think about changes occurring in the industry due to globalization?  How has it affected the way you do business?

I know it’s something you always have to be aware of and we have our eye on it.  We haven’t made any investments in China.  From what we’ve been told, more tooling will be purchased from the Pacific Rim area so we need to find mold sources over there that we can work with and trust.  We have gone the route of finding local shops that have ties in the Far East; and through this avenue we’ve procured some tooling from Asia.

Customers always want the lowest cost, putting pressure on the molders and mold makers to produce the least expensive molds possible.  They don’t want that upfront cost.  We want to have faith in a mold that will last without all the repair and maintenance that comes from buying cheaper molds.  But the focus is more on cost. 

If MPC saw market opportunities in China, we would probably go over there, but we would need to address the shipping costs for the parts manufactured there -- I don’t think we would ship parts back here from there.  So, again, we’re keeping an eye on this, too.  In addition, we are able to relay on our subsidiary operations in Mexico – established in 1988.
 

 

What will the industry look like in 3 to 5 years?

It’s kind of scary what’s going on with the automotive industry.  It will obviously have some very telling affect on those involved in this sector.  The Japanese are known for partnering with their suppliers while the U.S. OEMs don’t really do that.  Trust is much stronger with the Japanese group and I’m hoping the U.S. OEMs will adopt similar principles with their own suppliers.

As for the next three to five years, perhaps we’ll be talking about the next low-cost country.  It’ll be interesting.  MPC fortunately has the ability to react and move quickly when the opportunity arises.   

 

Additional background information: 

Number of years in business:  33 years

Current number of employees:  Over 1,600 worldwide

Current square footage (each location):

Total square footage at all locations: Over 600,000 sq. ft. (includes 40,000 sq. ft. of owned-not utilized space)

Off-site deistribution/warehouse space:

Nogales, Arizona - 10,000 sq. ft. Distribution Center Delavan, Wis - 80,000 sq. ft utilized Distribution space

Plant Office Space:

Walworth: 4 Building account for 262,170 sq ft

 

Building #1 Main Building = 34,000 sq ft

 

Building #2 Molding Building = 105,500 sq ft

 

Building #3 Marketing Building = 28,000 sq ft

 

Building #4 Mega Molding - 67,670 sq ft

 

Building #5 Finance Building 27,000 sq ft

 

 

 

Southfield Sales & Mktg Office = 16,000 sq ft

 

 

 

Prairie du Chien = 100,300 sq ft

 

Richland Center = 35,000 sq ft

 

APS/Mexico = 58,000 sq ft

Additional locations:  In addition to the manufacturing, sales and warehousing at its corporate headquarters in Walworth, Wis, MPC also has satellite manufacturing facilities in Prairie du Chien and Richland, Wis, and a subsidiary plant in Santa Ana, Sonora, Mexico. A sales, marketing and technical center is located in Southfield, Michigan, plus the company has sales representation in Tokyo, Japan.

 Website:  www.mpc-inc.com  

Types of tools built and/or run:  MPC is primarily a processor but does have a tool shop and maintenance department.  They run injection mold tooling, blow mold tooling, extrusion dies and secondary finishing equipment.  The company outsources about 90% of its tool manufacturing. 

Industries served:  Automotive primarily; also medical, marine, power sports, construction equipment and heavy truck equipment.  

Contact Information:
MPC, Inc.
Tom Frank, Sales Manager
100 Wisconsin Street
Walworth, WI  53184
Phone: 262-275-5791

Fax: 262-275-6346

sales@mpc-inc.com

 

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