Featured September 9, 2005

Case Study Archives

This week the TPR is featuring Chicago Mold Engineering Co., Inc. in St. Charles, IL.  TPR Editor Cyndi Kustush interviewed Company CEO & Chairman Ralph Oswald, Engineering Manager Mike Duquette, Sales Manager Don Mazurek and Joan Williams, an administrative assistant to these gentlemen.  Cyndi also had the privilege of touring the plant to see firsthand what the company does that is so unique.  

Chicago Mold Engineering (CME) is a premiere, full-service manufacturer of plastic injection and compression molds for the Thermoset and Thermoplastic industries.  Well known for quality tooling and industry involvement since the company was founded by Eric W. Oswald in 1944, CME has grown, offering cutting-edge technology in engineering and manufacturing, as well as photogrammetry services as yet unavailable elsewhere in the U.S.

What is your company niche, and what does your company do that is notable, unique or            different? (i.e., technology, innovations)

Mike:  CME specializes in top quality, complex molds.  The keys to our success are highly trained, dedicated employees.  An experienced project manager is assigned to oversee the entire process of every mold.  We have a full complement of excellent designers and manufacturing personnel that enables us to keep the work in-house.  That provides CME with complete control of the quality, from start to finish.

Don:   We have several things that make us unique.  One is our ATOS III system that allows us to quickly reverse engineer and prepare CAD files for many applications.  This is the same technology used by NASA.   We also excel in the manufacture of thermoset reflector molds, with unmatched standards of

ATOS III

quality and accuracy.  Our multiple drop cold runner manifold system is the best in the industry.  

Ralph:  As for a niche, I would have to say it is automotive lighting.  What’s unique and different about us?  ATOS III and White Light Scanning. The ATOS III is so new and advanced that we are the first company to offer our customers its numerous benefits.  Not only is data extracted by non-contact scanning and measurement, but the system is portable. We can use it throughout our facility, or take it to our customer locations.  

Joan:  I think what sets us apart is building molds of exceptional quality combined with providing a level of service that meets or exceeds our customers’ expectations every time.  We understand that our ability to meet those expectations requires maintaining a state-of-the-art facility, including our design/engineering and production areas.  We are always evolving technologically in advance of customers’ needs and that’s key.  Specifically, we utilize the ATOS III technology for inspection, measurement and verification services to ensure accuracy prior to delivery.  Most importantly, we use its reverse engineering capabilities, which enable us to machine cavity shapes that would otherwise be unattainable.   

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

Ralph:  I started working for other mold shops in 1968 [though his father, Eric W. Oswald, owned CME] and was always interested in mechanical things and machinery.  

Mike:  I started at CME in 1975, drawn by the intrigue of the mold manufacturing process.  Thirty years later, I still find it fascinating, if not challenging at times!  

Don:  I got into the industry 29 years ago.  In college I majored in accounting but after my time in the Navy no jobs in that field were available.   Through the help of a family member I began an apprenticeship as a tool & die maker. So I changed over to manufacturing for a career and here I am.  The people here are great to work with, and

Ralph Oswald, CEO & Chairman
Chicago Mold Engineering

I’ve been lucky to meet some terrific people among our customers and vendors. 

Relate a notable "best time" for your company (can be more than one)  

Ralph:  Right now.  Working with the latest in 5-axis machinery and the technology to go along with it is really great.  Every day I’m amazed by the next great development in machinery or manufacturing techniques. A great example of this is how we recently were able to produce a mold in 3 ½ weeks for delivery!  

Mike:  From my perspective, each day is better than the last.  We’ve had some difficult times, but our commitment to producing quality molds and "customer care beyond compare" has always kept us working.  While times are good right now; we know we simply can’t rest on our laurels.

Don:   A notable “best time” for our company was when management decided to change CME from being a model shop to NC (around 1992).  We purchased top-of-the-line equipment and trained the best technicians, and are now one of the most efficient companies in our industry.  It’s unbelievable what we accomplish today.

Joan:  I agree that now is the best time.  The current climate throughout the industry has driven us to work harder, more efficiently and more accurately to produce high quality tools and retain our profitability.

Mike:  Times are good today, but that means nothing tomorrow.  Today’s shorter lead times have eliminated the concept of "backlog”.   You have a workload but no backlog.  Generally, if you’re not able to start on jobs as soon as they are released, you don’t get the work. That’s why you can never relax.

Similarly, relate notable challenges that your company has overcome.

Ralph:    That’s easy: global competition.

Mike:   We faced the need to reduce our workforce in February of 2002 – the only layoff in the company’s 61-year history.  We’ve made adjustments in technology and techniques to actually increase sales and improve lead times with 20% less people.  

Joan:  For us as a company, the layoff was hard.  Other challenges included the automotive industry’s tier-one payment term extensions, and the foreign dollar exchange rates’ affect on customers choosing to place their work in Canada, Mexico, Portugal or China. The payment term problems illustrate the interdependency and multi-level impact aspects on the industry.  

Don:   A notable challenge we overcame was successfully designing and building center-gated thermoset reflector molds.  To assist our clients who were having problems with quality due to edge gating, we designed a system that reduced scrap, cycle times and maintenance time, plus produced a better piece part. Our customers have seen production increases of 15% with 10% less scrap.  

Joan:  In the context of meeting a specific customer challenge, CME was able to utilize the ATOS III system to replicate a natural texture our customer desired. They had been producing the texture with an abraded electrode process with less than satisfactory results and beyond their time constraints. CME was able to create the natural texture in finer detail, in one fourth of the time and at less than one half of the cost.  We have also cut mold design time 30% by utilizing legacy data within Unigraphics-NX/Mold Wizard.  

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

Ralph:  Our full service organization that includes project management and engineering.  

Don:  We are a service-oriented company.  We have an outstanding reputation for standing behind our products.

Mike:  Our customers are increasingly facing challenges of their own.  We can help them satisfy their customers by providing front-end engineering services.  With early involvement our designers often find ways to simplify products while maintaining or improving their quality and functionality.  This helps reduce the cost and the lead times for the tools required.  

 

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

  • ATOS III Photogrammetry system

  • FIDIA 5-Axis high speed machining centers including (2) K165 and a K197 with a continuous bi-rotary milling head

  • Makino S56 5-Axis Graphite Milling Machine New personnel to program and operate new equipment

  • Outside sales engineer

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

Ralph:  Not as yet.  In order to expand you have to expand your customer base.  If business remains  solid then we may enlarge our St. Charles facility.

Mike: We need to fully maximize our existing space before we expand our building. As we update equipment our plant layout is continually being revised to increase efficiency.

Joan: We have continuing partnerships with many of our customers.  In addition, we partner with local molding companies to provide sampling opportunities that ensure quality and functionality prior to delivery of the molds to our customers.

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

CME is a member company of the American Mold Builders Association (AMBA) and the Tooling & Manufacturing Association (TMA). Our CFO is a TMA board member. Some of our personnel also belong, as individuals, to other industry organizations.  

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

Ralph: Globalization helps keep you on your toes with new technology and faster ways to build a mold.  We practice lean manufacturing and cross-train personnel to become increasingly more efficient.  

Don: Globalization has made Chicago Mold work harder to succeed by challenging us to produce a better product faster and less expensively.

Mike: We’ve all heard the comments of how unfair it is that U.S. mold makers don’t compete on a level playing field with other nations. That’s true, of course, on many levels. Still, we refuse to give in to the pressure. As an American shop, CME will continue to protect our employee’s rights and provide a safe work environment. It’s our quality workforce that keeps us a leader in the industry. Together with our employees we will continue to find ways to improve our efficiency in producing top quality molds.  

Joan: Globalization has tested our adaptability to better meet customer needs through technology, reduced delivery times and costs.  It’s caused us to seek diversity in our customer base as well.  We understand the economic pressures that cause customers to seek the best price and we make every effort to be competitive.  Globalization has also provided us with great opportunities to perform repair work for customers having foreign-built tooling.  

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

Ralph:   After everything that we’ve seen in the last three to five years, I don’t know what to expect.  But with the positive changes that have occurred, I can’t wait for the next three to five years!  We’ve evolved through a number of moldmaking stages – I guess you could call them “eras” – that have brought us to where we are now.  I don’t know how we managed to create the molds 15 years ago, when I consider that today we’re producing them so much more quickly and more accurately.  

Don:  I agree with Ralph.  We couldn’t be producing molds today if we hadn’t stayed current with technology and equipment. It’s going to remain challenging, this industry.  

Joan:  I think there will be an increase in multi-partner, integrated companies providing customers with single-source concept-to-part operations.  I also think there will be on-going technological advances in design (CAD) and production (CAM , high-speed machining, robotics, scanning, testing and validation, components and systems).  

Mike:  I think the industry will look much like it does today, except more of the small shops will have closed their doors.  The unfortunate practice of treating molds as commodities will continue, but with an added strain on the industry.  As the trade loses more seasoned craftsmen it also loses their knowledge and experience.   I expect our biggest challenge will be a shortage of quality people getting into the business.  Along with CME, the smart shops will stay in business by adjusting to their customers’ needs and expectations.  Sound business practices and a proactive approach to technology will enable us to remain competitive without sacrificing quality. As they say, “The bitterness of poor quality lingers long after the joy of low price is forgotten.”  

Additional background information:

Number of years in business:  61  

Current number of employees:  56  

Current square footage (each location):  40,000 square feet  

Additional locations:  None at this time.  

Website:  www.chicagomold.com  

Types of tools built and/or run:  Injection, Compression and Thermoset molds, Multi-shot and Multi-color molds in all sizes and complexity ranges.  

Industries served:  Automotive, Building Supply, Home Appliance, Agricultural and Housewares

Contact Information:

Chicago Mold Engineering
615 Stetson Avenue
St. Charles, IL 60174-3458
Phone: 630-584-1311
Fax: 630-584-8695  

Or email :

Don Mazurek, Sales Manager
dmazurek@chicagomold.com

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