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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
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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) |
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Off-site
deistribution/warehouse space: |
Nogales, Arizona -
10,000 sq. ft. Distribution Center Delavan, Wis - 80,000 sq. ft
utilized Distribution space |
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Plant Office Space: |
Walworth: 4 Building
account for 262,170 sq ft |
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Building #1 Main
Building = 34,000 sq ft |
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Building #2 Molding
Building = 105,500 sq ft |
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Building #3 Marketing
Building = 28,000 sq ft |
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Building #4 Mega
Molding - 67,670 sq ft |
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Building #5 Finance
Building 27,000 sq ft |
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Southfield Sales &
Mktg Office = 16,000 sq ft |
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Prairie du Chien =
100,300 sq ft |
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Richland Center =
35,000 sq ft |
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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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