Breadth and depth - Doosan up close

People in the UK know Mills CNC (01926 736736), the exclusive agent for Doosan machine tools in the UK and Ireland, and they understand Doosan itself in that context. But, rather like an iceberg, this represents the tip of what is the Doosan Corporation – in fact, it is somewhat smaller than the tip, for machine tool sales represent rather less than 1/10th of Doosan Corporations' business, according to Andrew Jack, Mills CNC's technical director. This is not a reflection of Doosan's size in the machine tool business, however – it claims a position of the fifth largest such company in the world – but of the massive nature of the Doosan Corporation, whose target sales for 2011 are $27 billion; Doosan Infracore Machine Tools' target, by comparison, is a trifling $1.1 billion. Mills CNC managing director Nick Frampton is keen to convey the bigger picture to the UK and, to that end, extended an invitation to Machinery to visit the Doosan International Machine tool Fair (DIMF), held in May this year. Image:The entrance to Doosan Infracore Machine Tools' site in Changwon, South Korea Image:Welcome to DIMF, Doosan Infracore Machine Tools' biennial in-house, international show TECHNOLOGY ON DISPLAY Held biennially, this event takes place at Doosan's machine tool making operation in Changwon, South Korea, which is some 160 miles south and 90 miles east of South Korea's capital, Seoul (Doosan also has satellite plants, see box item, below). The event sees international visitors numbering several hundred attend, with most of these being representatives of the company's distributors – the company only sells through distributors. On display are all of the company's latest machine tool developments, and for 2011 that means 39 new products or new developments on existing technology (see box item, below) with a total of 65 machine tools on show. Image:Sixty-five machines on show; 39 new products Image:Another shot across the exhibit hall A quick tour of the machine tools, which are laid out in one of the company's large assembly halls, immediately underlines the breadth of the range of machine tools offered. It comes as a bit of a surprise, because it contains sizes and types of machine that are not part of the standard Mills CNC Doosan armoury. The total range takes in CNC sliding-head machines, wire-cut EDM machines, all the way up to large double-column machining centres. In between are those machines that are more familiar to a UK audience. Doosan, in fact, claims 40% of the domestic machine tool market (against other Korean machine tool builders, not including importers), according to Harry Park, general manager, marketing team. Image:Wire EDM machines..... Image:and sliding-head machines…… Image:feature alongside large machine tools such as these recently developed large portal machining centres, DCM series This 'very small to the very large' breadth of machine tools from a single company is unusual in today's world, where specialisation is the rule. However, this is a smaller scale reflection of the nature of South Korea's family-controlled industrial conglomerates. Called chaebol, Doosan is the oldest such beast, dating back to 1896 - Samsung is the country's largest and there are many other smaller chaebol. So, within Doosan Corporation, you'll find Doosan Heavy Industries and Construction, one of whose capabilities is the manufacture of nuclear reactor vessels in a factory that can manipulate red-hot ingots weighing 450 tons as they are worked by equally massive forging presses (the ingots are also made on site, leading to a $1 million/month electricity bill for materials production). Wind turbines, massive diesel engines and desalination plants are also part of this division's portfolio of products. Image:Ingots weighing up to 450 tonnes can be manipulated within this 13,000 tonne forging press Image:Nuclear reactor vessels are another of Doosan Corporation's specialities Image:Large crankshafts for ships' diesel engines are another Doosan Corporation is also a manufacturer of construction machinery via Doosan Infracore (which also includes the machine tool operation) – the well-known Bobcat construction machinery brand can now be counted as part of the empire since 2007, while some of South Korea's much-favoured, high density high-rise apartment blocks – called Apartment Danji – are also one of its construction operation's outputs. Image:Apartment danji – courtesy of Doosan. Other familiar industrial names adorn the buildings, too But Doosan as it is now is far different to what it was at the beginning of the 1990s. During that decade and on, it transformed itself from a business focused on beer, soft drinks and whiskey to an engineering-focused business. This was achieved through acquisition of Korean companies – power plant maker Korea Heavy Industries and Construction in 2001 and construction plant and machine tool maker Daewoo Heavy Industries and Machinery in 2005 (see article here), which became Doosan Infracore, for example - and latterly foreign companies, such as Ingersoll Rand's Bobcat. Today, Doosan Corporation is the eighth largest commercial business organisation in South Korea, Machinery was told. STRIKING BACKDROP The country itself also provides a further backdrop to this industrial landscape of huge companies. Travelling around, visitors cannot help but notice that roads, bridges, industrial and commercial buildings, apartment Danji and plush offices (especially in city centres) are being constructed almost everywhere you look, while the traffic always includes a goodly assortment of trucks moving engineering goods. The traffic volumes, incidentally, are often high; progress slow - another feature of a growing economy. Image: Construction work is common and widespread…. Image: …road widening….. Image: …bridge construction So, when Doosan's machine tool people tell you that the company has the ambition to become the world's third largest manufacturer of machine tools by 2015, it is something that you have very little difficulty in believing will come true. This year, Doosan Infracore initially predicted it would manufacture 12,000 machine tools, although this is likely to be an underestimate, since April alone saw orders for 2,000 units taken. Indeed, executive managing director, sales and marketing Seung Rok Ma said at the DIMF evening reception on Wednesday, 11 May, that he hoped that the company would make 14,000 machine tools this year. Harry Park says that the target this year is for increased sales in the range 30-35%, in fact. And the company's stated target by 2015 is for it to be manufacturing 20,000 units annually. Even without this 2015 ambition, the company is already struggling to keep up with demand. But at the DIMF evening reception, Jae-Seop Kim, executive managing director Doosan Infracore Machine Tools, who acknowledged this challenge, said that "we will solve this problem, and not in a long time". And, while giving no details about the chosen solution, it is not hard to guess that this means an expansion of production; either at existing facilities or through the building of another production facility. In the longer term, the company is looking to set up another manufacturing plant overseas, revealed Harry Park. Already having a plant in China producing for the local market (1,200 machines/year), the company is looking to countries such as India, Brazil, Czech Republic or Turkey for this, he added. As for Europe, this year, Doosan expects to sell 3,000 machines – the same number it sold in 2007, in fact - and Mills CNC will be responsible for 400 of those units; over 13% of the total. For Mills CNC, this represents growth on 2010 and a record result, but it expects to take orders for 440 units this year, so 2012 will likely set a new sales record. Indeed, the company has gained market share in the UK through the recent downturn. It's no wonder that Mills CNC gets this accolade from Mr Ma. "Mills and Doosan share a partnership going back over 28 years and they are our longest established dealer. Mills consistently produces great sales results and we value greatly their input into new product development. We consider Doosan and Mills to be a team that together are growing stronger each year and producing more impressive results year on year." The reference to input to new machine designs is related to Mills CNC technical director Mr Jack's presence at, and input to, the regular product meetings held in Changwon (see online version). And it was Mills CNC's technical director who this year at DIMF stood up to give an overview of the machine tool developments on view (see box item) at a seminar held in the new $17 million R&D centre at the Changwon site and which houses 320 R&D engineers, but which will grow 10% this year and to 400 by 2015. Image:Andrew Jack, Mills CNC's technical director waxes lyrical about the multitude of developments unveiled at DIMF 2011 The pursuit of technology development, quality and reliability is additionally underscored by the new Reliability Research Centre, where new machines and new modules are put under test. This new-for-DIMF 2011 area was completed just prior to the event, in fact. It was yet another element of the visit that adds weight to executive managing director Doosan Infracore Machine Tools' Jae-Seop Kim's statement that: "We are going to do everything to elevate our brand reputation in the global market and will improve the quality and reliability of our products, continuously." Box items Doosan new launches of UK market interest Satellite factories R&D and product development Mills CNC Box item 1 Doosan new launches of UK market interest • Lynx 220LMS (Lynx lathe with sub spindle) - an established machine, it now features a sub-spindle. Mills CNC anticipates that these will sell in high volumes in the UK. • Puma 480D (large size spindle bore) – the Puma 480L is already popular in the UK with the oil industry. This new model has a larger bore: 275 mm versus the previous model's 160 mm diameter. Image:The Puma 480D has a larger spindle bore • Puma 700LY (large size lathe with Y axis) – the machine sees the addition of a Y-axis to the established Puma 700L model. The machine on show was, in fact, for a UK customer, printing machinery maker Crabtree of Newcastle. It was a 3 m bed length machine, but a 5 m bed length version is also available (Puma 700XLY). Image:The Puma 700LY is new, having a Y-axis addition over the previous L version • Puma 800B (large size spindle bore) - addition of air-chuck to existing machine, now offering 375 mm spindle bore. Image:The Puma 800 has a larger spindle bore • MX1600ST (small size mill turn mc) – a smaller size addition to the company's mill-turn centre range. • VTS1214M (ram type VTL) – a machine developed for the aero-engine market, with 1,350 mm diameter by 800 mm high capacity. Six of these machines are going to a US customer. Image:Intended for the aero-engine market, the VTS1214 • VTS1620 (ram type VTL) – a new development and the result of four years' development. Featuring a novel ram design, deep, heavy cuts are this 1,600 mm turning diameter machine's forte. Available as a turning, or as a turning and milling machine, and with fixed or elevating cross-rail, maximum turning height is 900 or 1,400 mm. Image:This machine results from four years' development – heavy cuts a speciality Image:The vertical ram has 'raised keys' along two opposing sides, giving it extra rigidity • DNM750L (large size vertical machining centre) – an addition to the DNM range, which already features 400, 500 and 650 models. • DNM350-5AX – an entry-level 5-axis machine (4+1 or full 5-axis), based on a C-frame VMC fitted with rotary/tilt table. Rotary table diameter is 350 mm. Roller guideways, not ball feature, with the machine aimed at countering Taiwanese competition. Image:This 5-axis machine makes use of c-frame technology to offer an entry level machine • VC630-5AX (pallet changer version) – new here is a pallet changer and 12-tool magazine. Already four of these machines without pallet changer have been sold in the UK. Image:The VC630-5AX now sports a pallet changer • New NHM/NHP series (horizontal machining centres) – a range of six machines, all brand new. Three are box guideway machines and three have linear rails, each type offering 500, 630 or 800 mm pallet. At the show, two machines were connected using Doosan's own linear pallet system. A Doosan pallet pool system is also offered, with this retrofittable in the field. Image:The new horizontal range includes both box ways and linear guideway designs, as well as offering either linear or pallet pool automation options • BM2740P (high speed, fixed crossrail vertical machining centre) – a moving table machine having X, Y and Z-axis travels of 4,000, 2,700 and 500, respectively, and table size 4,000 by 2,500 mm, with a capacity of 3,000 kg. • DBC110S (horizontal boring machine) – a complete redesign of the existing DBC 110; a compact economy version 110 mm diameter boring spindle machine, intended to compete with Taiwanese machine tools. Image: The DBC 110S is a complete redesign Box item 2 Satellite factories Doosan Infracore Machine Tools operates its central manufacturing operation at Changwon, but assembly of machines is also undertaken at satellite plants not under Doosan ownership, but which work exclusively for the company. Component machining us undertaken at Changwon for the most part, but some operations, such as the machining of castings, may be undertaken, as they were at the plant machinery visited. The plant was assembling both boring machines and Lynx CNC lathes, the latter a recent addition. While the assembly rate for borers, mostly the 110 mm spindle versions, was 15/month (capacity is 20), the Lynx lathes were being put through at the rate of 220/month. Both machines find a ready market in the UK, with borers being delivered at the rate of two to three units each year, while the figure for Lynx lathes is 12-15/month. Quality in these satellite factories is under the control of Doosan staff – the company has some 1,000 inspectors. Image: Tens of Lynx castings lined up, ready to be assembled Image: Borers being assembled at the rate of 15/month Image: The machining of castings is undertaken at the borer factory Box item 3 R&D, quality and reliability Sitting in the $17 million R&D centre, opened in 2008, Kyu-Ho Pae, managing director, quality management, explains the company's approach. On monitoring quality issues via customer feedback, for the domestic market these come direct, while for overseas markets, these are collected and filtered through to Doosan by the local distributor, such as Mills CNC. Issues are discussed at weekly meetings that take in all team leaders and managing directors at Changwon. Teams in relevant departments are then created to make improvements as necessary. Mr Pae emphasises that this approach is taken even for very minor problems. Machine changes instigated vary from those that may be incorporated into subsequent regular model upgrades to very urgent design changes that are implemented immediately. A particularly important measure for the company, he offers, is defects per 100 machines in the first three months of installation. Recurring issues could signify problems with design, manufacture or assembly, in-house or linked with an external supplier. All external suppliers are monitored on quality, in fact they are audited every week, says Mr Pae, with a quality index calculated by Doosan and shared with the company, so as to maintain quality and drive continuous improvement. For new designs, there are five so-called quality gates through which designs must pass. Concept, rough design, detail design, prototype and pilot production. Of particular importance is prototype and pilot production, where the gate owner is quality management – Mr Pae. At the prototype gate, detail design changes are the more likely, rather than concept changes. In pilot production, a number of machines undergo extended testing. Quality specialists, of which there are 100, are always in attendance at new product design meeting and all new designs are undertaken with due regard to historical quality issues - designers will literally review service claims, while they operate in teams that specialise, perhaps in spindles, for example. Jeong-Jin Kim, managing director, product development, explains further about the R&D department. There are currently 320 R&D engineers, which break down into groups. The product development group is subdivided by type of machine – turning centre, machining centres, large machines, Swiss-type turning, and wire EDM. The electrical group is broken down into four sub-groups - turning centre and Swiss-type; machining centre and larger machines; and CNC control (Doosan has its own for Asian markets). A technology design group evaluates new technology for the future, such as thermal growth control, moving bush control, tilting heads for 5-axis machines, rotary tables and high speed spindles, for example. There is a separate systems engineering group for customised turnkey production systems for customers, divided into domestic and overseas market. A final group provides a co-ordination function between the R&D department and other company departments. Mr Kim says that half of the engineers work on existing product and the other half on new product. The R&D team will expand by 30 this year and will reach 400 in 2015. The company develops product based on market demand in Europe, USA and South Korea. Every year, Doosan marketing and R&D people visit distributors around the world, including Mills CNC. From this, an analysis is made and discussions had with key Doosan individuals. A new product development council of about 30 sits every six months, on which Mr Jack sits, from which a priority list is generated, with action following. Once a test machine is available, the Global Task Force, which includes representatives from USA, Europe and UK, convenes at Changwon to review it. This is also a twice-a-year occurrence, which also takes in other discussions about other projects at different stages of development. In specifying overall capacity and performance of new machines, the company often benchmarks against existing technology and competitors. Indeed, such comparison was a part of Mr Jack's new product presentation at DIMF. This means that Doosan machines seek to offer more, either in capacity or capability, versus existing designs, while price performance/performance also a key element. This is what might be termed a 'fast follower' approach, but when asked about the company making the transition to a technology innovator/leader, Mr Jack says the company is already there. And he instances the new NHM/P horizontal machining centres. This is the first time that a common machine structure has been employed to support both boxway and linear guideway technology, for example. Mr Pae adds that, with the revamped Puma lathe series (see later), he believes the company can "manage the major market"; with the DNM vertical machining centres and larger machines, he believes the same is true for the vertical machining market; and with the launch of four new models of horizontal machining centre at DIMF, the NHM/P in two of the three sizes, this also represents a leading development. As for the future, the next major challenge will be the development of a 5-axis horizontal machining centre. "This is very high technology, with very high reliability demanded by the market. And, as the follower here, we must deliver a competitive advantage in price/performance. That is my greatest task, at the moment," Mr Pae concludes. A particular feature driving development is the increasing sophistication of the domestic market, it is highlighted. This is very much the case in the development of 5-axis technology and the sliding-head machines. Doosan's share of the home market is 40% (including domestic builders, not importers), so local technology demand trends clearly feed through strongly. As for sector demand, the automotive market is the largest single consumer of Doosan machine tools globally. The UK, incidentally, is a global leader for the company in the case of medical applications. The rate of product development is clearly underlined by such feats as the recently introduced all-new Puma lathe range, launched at MACH 2010 ( see full article here). It took three years to fully re-engineer the range to support the simultaneous launch of 36 machines. At DIMF this year, Mills CNC's technical director, Andrew Jack, highlighted that the development of the new DNM350-5AX was completed in 18 months, while the large double-column, elevating cross-rail machining centres of the DCM range didn't exist 3 years ago, with 10 already installed in the domestic market and assembly at the rate of 2/month now ongoing. There are six models, three each in standard and high column ranges. Image: The DCM range has column distances of 2.7, 3.2 and 3.7 m in each of the two three-model ranges. Table lengths vary from 4 to 10 m. As at Machinery's visit, the company was also putting the finishing touches to yet another new large machine, its twin-opposed spindle boring machine for the machining of construction equipment booms. Image: Two boring machines in one. Simultaneous machining of both sides of a boom is accomplished on this machine, which has a 7 by 1.2 m table and pallet changing capability The newly created Reliability Research Centre, which is housed within Changwon's main manufacturing and assembly plant, comprises two brand new areas. In the first there are machine tool units under extended test, while in an adjacent area are fully assembled machines similarly undergoing testing. Image: Units under test Image: Machines under test – here it's a new 5-axis mould tool making machine, likely to find a ready home in the domestic market The set-up was only just finished in time for DIMF, with people working through the night to make sure this, and, in fact DIMF, was up and ready to go. Another demonstration of commitment and determination from the Korean company. Units under test included: • Spindle units on the new NHM/P horizontal machining centres being tested for coolant ingress; • 30,000 rpm high speed spindle for the as yet not launched NX VMC aimed at the domestic mould tool making market; • 20,000 rpm spindle durability test for the NX VMC, with the focus on testing a new constant pre-load bearing set-up. Variable pre-load is the alternative, but is more complex, more expensive. • Box guideway durability test for borers, with the target being a reduction of friction. • A direct drive (torque motor) rotary table, FM200/5AX. In the machine test area was the new MX1600ST mill-turn machine; the DNM350-5AX fitted with a Heidenhain control; the NX6500 mould and die machine fitted with 20,000 rpm spindle. Mr Jack calls Doosan's R&D capability the jewel in the crown. At DIMF this year, the R&D infrastructure and number of new machine developments on show certainly underlined it. Box item 4 Mills CNC Located in Leamington Spa, Warks, the company employs 71, of which 21 are service, nine are business managers (sales), only five are admin, with the rest engineering staff. The company includes in this number a resident Korean engineer, which means communication each way is easy, fast and accurate. Additions to the service and application resource will be made this year. So, while the company shifts high volumes of machines – 400 this year is the target - managing director Nick Frampton is keen to underline that this does not equate to Mills CNC being a 'box shifter'. The emphasis is very much on service and support, he adds. "If you get service right, you will sell machines. Other companies look at it the other way round. We will not walk away from any issue. Mills CNC sells to high productivity companies, and these demand a certain level of service – 24 hour response, for example." Image: Get service right and orders follow, says Nick Frampton, managing director, Mills CNC And to underline the company's reputation, Mr Frampton highlights that word of mouth plays an important part in sales of machines. "Every month we're selling to people that we haven't dealt with before." He adds too that there has been a change in the perception of Doosan over the last three years or so. "Today, we are nearly always on people's quote list; before, that wasn't the case. And we have a very high conversion rate for those that visit Mills CNC, where we have some 20 machines on permanent display. Of those that do visit, 90% will buy, although quite often visitors end up buying a different machine to the one initially targeted. " Helpful in easing a sale is the company's own in-house finance expert who can make a sale possible or even allow companies to step up to a higher technology level than initially thought possible, says the managing director. "Not many companies employ a finance manager, but you have to invest in such overheads to provide the best service. We are confident enough to take on such costs." Mills CNC Training Academy is similarly another company facet that customers find attractive and which also will be expanded soon. Mills CNC sales are around 25% for turnkey systems, a further 25% have some engineering content, while half are standard machine sales. As to the profile of customers, during the downturn, OEMs with long term investment budgets provided the majority of business, but this year it has been 90% subcontractors. In keeping with a market-driven product emphasis within Doosan (see next box), Mr Frampton highlights his direct connection with the UK market. "All business managers report directly to me. I hear direct from the market." And of the company itself, he says: "We are a flexible, agile responsive operation and the culture of our people is not one where they view themselves as working for Mills CNC; they see themselves as Mills CNC. Our staff are entrepreneurial individuals who don't need micro-managing." First published in Machinery, June 2011