Customer Story

HOME

What is the source of its competitiveness in auto parts manufacturing?

Customer Story_Dongha Precision Co.

Dongha Precision established in Jincheon, North Chungcheong Province, in 1993, specializes in manufacturing a diversity of auto driving gears and steering parts such as axle shafts, valve bodies, pinion housings, rack bars and ball nuts. In the manufacturing process, special steel, including metal, nonferrous metal and high-carbon steel are cut in accordance with consumer needs. Via partnerships with primary vendors such as KDAC, Seohan Industries, TRW (multinational auto parts maker) and Fujikoki, Dongha has provided parts and components to a number of automakers including GM, Ssangyong Motor, Renault Samsung Motors, Hyundai Motor Company, Kia Motors, Ford and Volkswagen. Over the past several years, its exports have ceaselessly grown, being awarded the USD 5 Million Export Tower last year. Dongha expects its exports to rise to USD 7 million this year and USD 10 million in 2015. Its rapid growth at home and abroad is mainly based on its high competitiveness in quality and price.

High competitiveness in quality and price



In fact, it’s not easy to meet both quality and price requirements. Over time, demand for higher-quality parts has grown, consistently pressuring auto parts makers to lower unit prices. Dongha Precision was able to satisfy the two conflicting needs thanks to its continued facility investment and top-quality Doosan machines. “Over the past two decades since its establishment, Dongha has purchased and used Doosan machine tools. The tools have successfully met industry-wide requirements in tolerance and repeatability. Doosan’s service networks and price competitiveness should not be overlooked, either.” Dongha Precision CEO Shin Heui-jeung said.

Its factory is equipped with a variety of Doosan machine tools such as 68 CNC turning centers (Lynx 220L, PUMA 240, etc.) and 23 machining centers (HC 400, VC 430, etc.), through which most of Dongha’s parts and component are manufactured. Dongha was recently able to take part in GM’s new project, thereby signing a deal to additionally introduce 5 compact turning centers (Lynx 220L). What should be noted is that Dongha has continuously purchased Lynx series via several years of facility investment, as well as this deal.

Doosan machine tools’ compatibility with automated systems, as well as user convenience and price competitiveness, is behind such deals. Ensuring price competitiveness to outperform Chinese manufacturers required system automation through which productivity can be maximized with a minimum number of operators. About 70% of manufacturing processes is now automated. Without operators, articulated robots move items from here to there. Lynx 220L with a long stroke and a wide door ensures high accessibility for robots, leading the company to apply the machine to a new line. Automation via facility investment enabled Dongha to enhance productivity by almost 20%. More than 500,000 shafts and housings a month are manufactured in the factory.

Importance of equipment and ease of use



User convenience is a major factor that causes Dongha Precision to continue to purchase Doosan machine tools. Because they have long used Doosan machines, Dongha Precision workers have gotten used to them and have been able to more efficiently train their juniors. Moreover, in the process of manufacturing new parts and components, Doosan has systematically offered consultation service, improving productivity. Overall, Dongha employees have been fully satisfied with Doosan equipment. However, president Shin pointed out difficulties in effectively receiving after-sale service due to regional issues. “The lack of regional demand and accessibility makes it hard to benefit from seamless A/S service, regardless of the types of machines. Auto parts manufacturers, especially small & mid-sized firms, can’t avoid suffering from huge losses in case even one machine stops working. I sincerely hope that maintenance issues can be handled more quickly.” he added.

Dongha Precision aims to grow into a high value-added company based on its experience that has long been accumulated. The seamless combination of new parts machining and machine tools is one of the key elements that can determine business success. Dongha Precision is expected to continue to grow together with Doosan Infracore Machine Tools, cultivating a brighter future.