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Vertical Integration At Shultz Steel Term Paper

Vertical Integration at Shultz Steel

Schultz Steel operates a forging facility in Aerospace industries. Its tasks include: offering a wide range of impression forgings including large and remarkably complex forgings; open die forgings; seamless rolled rings; and regular supply of products in all alloys that include titanium, various kinds of steel, aluminum, alloy, nickel, and cobalt. The company primarily serves the aerospace (commercial and defense airframes, engines, helicopters, and missiles) and commercial land-based gas turbine markets. Shultz Steel's aerospace products include bulkheads, disks, engine mounts, flap and slat tracks, landing gear structures, nacelles, shafts, and windshield frames. It also makes extruded cases, nozzles, and stationary shells for missiles. Shultz Steel's gas turbine engine products include disks, rings, and shafts (http://www.answers.com/topic/shultz-steel-company#ixzz1P5KgdZDT). The company prides itself on being the "most modern vertically integrated forging facility in the Aerospace industries" (Schultz Steel: www.shultzsteel.com)

Vertical integration at Schultz Steel.

Vertical integration refers to the process by which several, or all, steps in the production and/or distribution of the product are controlled by a single company or entity in order to make that company as effective as possible in the field and to give as large a monopoly as possible in the marketplace.

In terms of Shultz Steel, it prides itself on its vertical integration demonstrating how all of its products from landing gear structures (for instance) for aerospace (that include commercial and defenses airframes) to the equipment for land-based gas and turbine engines (industrial) are all produced under one roof. In this way, they say, they can guarantee 'unique levels of quality, flexibility, efficiency, and service." (Schultz Steel: www.shultzsteel.com)

Flowchart

Aerspace grade ingots

Ingots forged to Billet stock

Billets cut to Mults for forging

Mults pre-formed

Performs forced to customer requirements

Heat treatment

Machining & inspection

Delivered to customer

Stocked in inventory

Shultz 3D modeling design assistance

Performed by Shultz

Schultz rough / finish machining

Ingots punched into 'donuts' 'Donut' saddled or ring rolled

Ring rough machined

SERVICE

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