Welcome to the New Detroit of the south.

BMW and Mercedes-Benz of Germany recently opened production facilities in the Southern U.S., and they've been followed by parts suppliers with sophisticated injection molding capabilities. Here's a look at two of them.

Attracted by new assembly plants set up by BMW in South Carolina and Mercedes-Benz in Alabama, a new hub of automotive molding has sprung up in the Southern U.S. over the past two years. Three well-known European molders and system suppliers - Sommer Allibert, Plastic Omnium, and Alfmeier Corp. - have followed in BMW's slipstream and set up shop in or around Greenville, S.C. They supply components for the new Z3 coupe, which BMW Manufacturing Corp. began making last fall in Spartanburg County, S.C.

Meanwhile in Alabama's Tuscaloosa County, Mercedes-Benz U.S. International, Inc. is beginning production trials for the 1998 M-Class All-Activity Vehicle. Among the nine suppliers moving to Alabama are at least five plastics processors: Becker Group, Inc. (interior trim), Delphi Interior & Lighting (center console), Delphi Packard Electric (wiring and cockpit assembly), Johnson Controls Inc. (seats and headliners), and Rehau of Germany (exterior trim).

BMW suppliers Allibert and Alfmeier recently opened their doors to PLASTICS TECHNOLOGY and revealed some of the unique challenges and opportunities facing those who would mold for the German auto makers. In many ways, these brand-new molding facilities share a great deal with plants that supply Detroit's Big Three. Quality concerns, complex logistics, and a fast pace define these molding operations. "Automotive suppliers have a lot in common no matter which auto makers they supply," says Sam Konduros, executive v.p. of Alfmeier Corp., Greenville, S.C., which supplies valves and fuel-management systems to both BMW and Mercedes-Benz.

However, entering into a supply relationship with BMW and Mercedes presents its own set of technical and logistical challenges. "It's not a business for the faint-hearted," observes Konduros.

Allibert and Alfmeier illustrate how to go from "green field" to good parts in less than two years. "Two years ago, we didn't even own a paper clip in this country," recalls Konduros. Starting from scratch has meant more than just creating a new physical plant, but also recruiting an inexperienced workforce and training it rapidly.

In its first year of production, BMW has demonstrated a healthy appetite for domestically produced plastic parts. These include TPO bumpers, PC/ABS side rails, and HDPE fuel tanks. The plastic interior components consist mostly of polypropylene, some of them covered with vacuum-formed vinyl sheet. "Nearly everything is molded here," says Jean-Michel Rosset, BMW's coordinator for plastic part procurement. Only parts common to many models, such as certain engine components, are molded in Europe, he says.

In winning BMW's North American business, both Allibert and Alfmeier certainly benefited from being suppliers to BMW in Europe. But pre-existing relationships alone don't tell the whole story. "Yes, they had some experience with BMW in Europe, but they also had the technical know-how we wanted," says Rosset.

INSIDE ALLIBERT

Allibert Industries in Fountain Inn, S.C., was selected for its expertise in car interiors. For the BMW Z3, that includes the instrument panel, door panels, console, and all the interior trim. "We make everything for the car interior except the seats and carpet," says Michael Huskey, the plant's business manager. In all, the company molds, paints, vacuum forms, and assembles about 60 different parts, each with several variations reflecting options on the finished car. Each part needs up to five finishing steps before being shipped out the door.

Allibert runs five HPM presses around the clock in its new 100,000-sq-ft plant. Three of the machines are of 700 tons, and there's also an 1100-ton and a 2000-ton machine. Two of the 700-tonners have gas-assist capabilities, which helped Allibert win the BMW business. "They have a lot of technical expertise in gas assist," notes BMW's Rosset.

Everything Allibert makes goes to BMW's nearby plant on a just-in-time (JIT) basis and in assembly sequence. But because the entire supply chain is still a bit new, Allibert plans to keep a small inventory on hand for the time being - about two days' worth. "We need a little bit of cushion right now," explains Huskey. "But as the entire system gets better, we will build today what BMW uses tonight."

UNDER THE HOOD AT ALFMEIER

Over in Greenville, S.C., one of Europe's leading suppliers of valves and fuel-management systems began molding about a year ago. Alfmeier Corp. initially was lured to the U.S. to supply BMW's fuel-management systems, but the firm has since won a contract to supply the systems to Mercedes-Benz as well. Alfmeier has also won U.S. customers for the other part of its business, automotive valves for engines, fuel systems, and brakes. These components - mostly of acetal and nylon - are shipped to Mercedes-Benz, Kautex (for Chrysler's Neon), ITT, and other auto makers and suppliers. The company even exports valves to Mexico, Canada, and back to Europe. "In fuel-management systems, we have many Tier One relationships but Tier Two logistics," says Alfmeier's Konduros. "You might think of us as Tier One-and-a-Half," he explains, noting that many of his systems and components are specified by the auto makers even if they are shipped first to another supplier.

With a current plant size of 30,000 sq ft, Alfmeier's machinery line-up consists of three 80-ton and one 200-ton Van Dorn Demag machines, all with the latest NC 4 controllers. Four more presses are on order, which will double the plant's capacity by the end of the year. The plant is arranged in manufacturing cells with the molding machines sitting adjacent to assembly lines. Custom-built leak-testing equipment has been integrated into the assembly lines. "Most of our parts require 100% testing," says Konduros.

All of the company's parts require precision molding - typical tolerances are [+ or -]0.001 in. "We go down to half that on some jobs," says manufacturing manager Markus Farrenkopf. For flash, the spec is often as small as [+ or -]0.0002 in., which must be confirmed with a vision system in the company's in-house lab.

Beyond precision, Alfmeier faces other molding challenges. For one thing, its customers specify some tough-to-mold materials. Many valve components must be molded from the same high-molecular-weight resin as the fuel tank. "It's an injection grade of a blow molding HDPE, and it flows like molasses," Farrenkopf says. Running this material has required much fine-tuning of gate sizes and locations, he notes. Fortunately, Alfmeier has set up a design office in Troy, Mich., and has placed a design engineer in its South Carolina facility. "We wanted to tie design as closely as possible to manufacturing," says Konduros. All the designers work with Pro/Engineer from Parametric Technology, Waltham, Mass., and share CAD files by modem.

Many of the parts are complex, requiring inserts and multiple hydraulic core pulls. To take one example, a nylon 66 pump housing has an insert-molded filter screen supported by thin ribs. To fill the part, two hot-runner valve gates open sequentially (0.2 sec apart) during injection, a trick that requires custom software for the machine controller. The mold also has three hydraulic core pulls.

Alfmeier must ship on a JIT basis. Each day's BMW fuel-management systems go to Plastic Omnium, which blow molds and assembles fuel tanks in nearby Anderson, S.C. Meanwhile the fuel-management system for Mercedes-Benz goes to Kautex Corp., which blow molds and assembles the tanks in Avilla, Ind.

CHALLENGING LOGISTICS

Because BMW offers custom configurations of its cars, both Allibert and Alfmeier encounter some daunting logistical hurdles. Allibert's Huskey points out that his plant supplies interiors for 10 car models with more than 50 available options. "The complexity is incredible," he says. "There are thousands of combinations of options. Theoretically, BMW never makes the same car twice." BMW's Rosset agrees: "It's a big challenge for our suppliers to manage that many options, especially on the interior parts, which must be shipped in sequence."

For Allibert, this complexity adds up to about 4000 different raw materials - everything from the resins to wooden door-panel substrates. And it means having robust MRP II (materials requirements planning) and EDI (electronic data interchange) systems, supplied by System Software Associates, Inc. of Chicago. The system is updated hourly with data that are collected by operators on the shop floor and then entered into the system by shift supervisors.

Alfmeier also deals with its share of complexity, in this case resulting from its JIT delivery schedules and from the numerous assembly steps and extensive testing regimen for fuel systems. "You really need a computer-integrated plant with powerful MIS and EDI scheduling capabilities," says Konduros. Alfmeier's approach to CIM has been two-pronged: First, put CIM everywhere in the plant. Second, use off-the-shelf hardware and software to keep costs down and avoid obsolescence.

Covering every aspect of manufacturing, Alfmeier's CIM system has several pieces: MP2 maintenance-management software from Datastream Systems Inc., Greenville, S.C.; SPC/SQC software from PowerWay Inc., Indianapolis; and an MRP II system with EDI module from Fourth Shift, Minneapolis.

The staggering amount of customization in BMW's cars has also created ripple effects beyond the need for computer integration. While both Allibert's and Alfmeier's operations involve numerous assembly steps, there is very little automation in either plant, owing to the relatively small volumes of any given part. As a result, Allibert workers carry out the bulk of the trimming and assembly by hand. "Automation is difficult with relatively small volumes - enough parts for about 300 cars a day," says Huskey. The same holds true at Alfmeier, where much of the assembly remains manual for now. Says Konduros, "Fuel systems will continue to need the human hand because we're dealing with such sophisticated wire harnesses. But in valves we'll shift to more automation as our volume goes up. A contract for two million or more valves per year is a justification point."

SHIFT TO LOCAL TOOLING

Both molders report that tooling up for their jobs provided yet another set of obstacles. "Our tooling cost was about three times as much as the plant and machines combined - it was a major program," says Huskey, who notes that Allibert has about 90 tools, half of which were built in Europe. Alfmeier needed seven tools for its BMW program and another 26 for the Mercedes jobs. Most of these molds were built in the U.S.

Engineering changes, in particular, presented some problems. It's tough to make fast revisions when your tool-maker is in Europe. "We learned pretty quickly to shift to a U.S. source when possible," explains Konduros. "Now what we need are more mold partners close by. This area is hot for good tool-makers."

ALWAYS IMPROVING QUALITY

Automotive molders typically work under stringent quality guidelines, and Allibert and Alfmeier are no exceptions. Both perform SPC/SQC. Both have continuous-improvement programs. And both are pursuing QS 9000 quality certification. Compared with molding for Detroit, the two South Carolina molders and BMW agree that aesthetic considerations dominate quality concerns to a larger degree. "Especially on appearance parts, we are very stringent in terms of grain consistency and surface defect allowances," explains BMW's Rosset. "Our goal is to get close to metal in appearance with a plastic part. Of course, the dimensional tolerances aren't neglected, but it's the appearance side that requires discipline and the tedious work."

Day-to-day work at Allibert and Alfmeier is conducted in teams. Allibert has "kaizen" (Japanese for "continuous improvement") teams of representatives from engineering, production, maintenance, administration, sub-suppliers, and even the customer. All manufacturing teams receive comprehensive cross training. "The goal is to have every operator trained on every part," says Huskey.

HUMAN RESOURCES 

With their molding facilities in place, Allibert and Alfmeier had one final challenge to deal with: finding qualified workers. Molding experience at both shops averages about six to seven months, and with such a green work force, training became a crucial concern.

Allibert took advantage of training help offered by the State of South Carolina - a partnership that brings the molder together with local technical schools and the state job service.

Alfmeier also accepted help from the state government. The firm conducted a six-week, pre-hire training course that covered molding, math, SPC/SQC, and blueprint reading, among other topics. Ultimately 12 of the 15 course attendees were hired. "The pre-employment training really showed us who was serious," says Konduros.

A NEW 'MOTOR CITY'?

Greenville, S.C., is hardly Detroit, but the new auto plant nearby is driving growth in local plastics manufacturing. Other local molders are sharing the new business, since Alfmeier and Allibert outsource a few of their less-critical jobs.

Both molders have left themselves room for growth. Allibert has room to add another 100,000 sq ft. Alfmeier has enough land already graded to triple in size. In fact, its current factory has temporary walls to ease the anticipated expansion, and it already has installed the chillers and services for the larger space. "We'll need to double or triple in size by 1999 just to meet current orders," notes Konduros, who plans to have 18 presses by the end of the decade.

Allibert's Huskey says, "For now, this location is dedicated to BMW." But Alfmeier makes no secret of being interested in the entire North American auto market. "We made the decision to come based on BMW," says Konduros. "But you don't invest millions and create a manufacturing facility of this caliber if you're not pursuing the business from Chrysler, GM, and Ford, too."