What If I Train Them And They Leave?

February 22, 2012

What if you don’t train them and they stay?

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Machinery’s Handbook-29th Edition of the Machinist’s Bible

February 21, 2012

Authoritative. Comprehensive. Invaluable. Practical. Updated.

Updated?

29th Edition of Machinery's Handbook now available.

I have relied on my 20th Edition copy since I entered the metalworking industry as a supervisor in the early 1980′s. It has served me well through the years, and while respectfully used, is showing evidence of ‘serious use’- missing thumb tabs, dust jacket in tatters, a host of bookmarks…

Here are 5 reasons why I’ll probably upgrade to the new 29th Edition:

  • New sections added on Micromachining, Statistics, and Calculating Thread Dimensions;
  • Expanded Metric content. The jobs we see in our shops today are increasingly metric as we serve a growing global market;
  • Easier to use- they have added tables of contents at the beginning of each section;
  • Extensive revisions to key sections including Mathematics, Gaging and  Dimensioning,  and Machining Operations
  • It has been re-typeset (including tables and equations) and many figures redrawn.

Now the problem for me is choice: Do I get the ‘regular edition’ to replace augment my current 20th edition handbook? Do I jump into the electronic age with the CD version? Or do I acknowledge I no longer have the eyes of a younger man and buy the “larger print” edition?

It’s time for me to buy. My investment in the 20th Edition sure paid off. How about you?

Which  would you  choose? What other books have you found critical to your practice in our precision metalworking field?

Machinery’s Handbook 29th Edition can be purchased direct from Industrial Press.


Cell Phone Ban-FAQ’s Posted

February 16, 2012

The FMCSA has posted an FAQ page about the ban on hand held cellular phones by commercial motor vehicle  (CMV) drivers.

Multitasking is against the law.

When you are at the wheel, driving safely should be your only focus.”

Here are some highlights:

Are holders of a commercial driver’s license (CDL) subject to the regulation only when driving a CMV, as defined in 49 CFR 383.5, or any vehicle?

CDL holders are subject to the Federal rule only when driving a CMV.

What is required of the employer in terms of company policy or training?

The rule does not require motor carriers to establish written policies in terms of company policy or training programs for their drivers.   However, employers are prohibited from allowing or requiring their drivers to use hand-held mobile phones.  A motor carrier may establish policies or practices that make it clear that the employer does not require or allow hand-held mobile telephone use while driving a CMV in interstate commerce.   The carrier is responsible for its drivers’ conduct.

“In the minutes before the 5:14 a.m. crash, the driver made three phone calls, the last one at 5:14.”

Is dialing a phone number allowed under this rule?

No. Dialing a mobile telephone while operating a CMV in interstate commerce is prohibited by the rule.  A driver can initiate, answer, or terminate a call by touching a single button on a mobile telephone, earpiece, steering wheel, or instrument panel – comparable to using vehicle controls or instrument panel functions, such as the radio or climate control system.

Can a driver reach for a mobile telephone even if he/she intends to use the hands-free function?

No. In order to comply with this rule, a driver must have his or her mobile telephone located where the driver is able to initiate, answer, or terminate a call by touching a single button while the driver is in the seated driving position and properly restrained by a seat belt.  If the mobile telephone is not close to the driver and operable while the driver is restrained by properly installed and adjusted seat belts, then the driver is considered to be reaching for the mobile phone, which is prohibited by the rule.

For all the FAQ’s click FMCSA_FAQ

Here is the  Mobile Phone Ban final rule (PDF)

11 People Killed Truck Crash Photo


Why Service Trumps Quality And Price

February 9, 2012

In the precision machining business, nobody sets up their machines based on the quality or price of your barstock. They set up their machines based on your delivery (service).

We don't set them up because of your price.

Ability to provide your product on time and to specification is the true determinant in the real world of execution. Thats why there is a gap between the dream world of  business plans (what we think we can get) and the real world of monthly operating statements (what we got).

The delta (difference) between the two is a failure of some supplier to service (provide what needed as needed as planned.)

  • Quality: Either the quality of the product meets requirements, or else you will get claim/return and won’t get the order (again).
  • Price: You will meet the market price for whatever comparables exist for the same requirements- or else the lowest priced comparable product will be selected.
  • Service is the only differentiator in my experience;

 Therefore it is only your ability to serve the customer with immediate delivery/ provision as needed that is a differentiator.

PS.:  Consumers consider service to be part of the landed cost, and don’t want to pay extra for it. In the industrial sector, service  is a given.

PPS.:  Everything else is Marketing B.S.


Plant Manager or Profitability Engineer?

February 7, 2012

The outlook is bleak for plant managers according to CBS News who listed the job title as one of the top ten positions in decline.

Automation and offshoring will decimate the ranks of production managers by 2018. According to the BLS, employment will drop by 11,900 jobs from a 2008 total of 156,100. With faster machines and better productivity, one plant can do the work of two, squeezing managers out. Increased imports of manufactured goods will do additional damage… The outlook is equally bleak for managers in the computer, electronics, and auto parts industries.”

The BLS Outlook for Production Managers:

Projections data from the National Employment Matrix

Occupational Title

SOC Code

Employment, 2008

Projected Employment, 2018

Change, 2008-18

Detailed Statistics

Number

Percent

Industrial production managers

11-3051

156,100 144,100 -11,900 -8

[PDF]

[XLS]

    NOTE: Data in this table are rounded.
Here is a brief Overview of the BLS entry for Industrial Production Manager:

Industrial production managers plan, direct, and coordinate the production activities required to produce the vast array of goods manufactured every year in the United States.  They make sure that production meets output and quality goals while remaining within budget.  Depending on the size of the manufacturing plant, industrial production managers may oversee the entire plant or just one area of it. Industrial production managers devise methods to use the plant’s personnel and capital resources to best meet production goals.  They may determine which machines will be used, whether new machines need to be purchased, whether overtime or extra shifts are necessary, and what the sequence of production will be.  They monitor the production run to make sure that it stays on schedule, and they correct any problems that may arise.” BLS

Plan, Direct, Coordinate production activities- those sound like things the shop’s computerized systems do- or are supposed to do.

If the computer runs the plant... what does the plant manager do?

Here’s the position that they ought to be talking about:  Profitability Engineer:

  • Who is responsible for generating and increasing profits?
  • Who is making sure the job is running at the cycle time and quality that it was quoted?
  • Who is assuring that the parts won’t have systemic errors because of inadequacies in quality control?
  • Who is helping to keep the machine cycles effective and efficient and pushing beyond “book” rates? That the jobs are run on machines  to assure best utilization of your company’s investment in Horsepower?

The profitability engineer is the one human being who can do these things. Not a computer. Not a manager. Not a boss.

The gap between your technology’s capability and its current level of operational attainment is where your hidden profits will be found. Is there a profitability engineer in your house?

Many  plant managers are in fact Profitability Engineers- maybe they ought to recognize that the value they add is not in managing a plant, but in engineering company profits.

Who is your company’s Profitability Engineer?

Plant Manager

Profitability Engineer

Profitability Engineering


USA Leads Global Recovery-Evidence

February 6, 2012

Leadership is about action, not potential. Global Purchasing Managers Index (PMI) data shows that it is the USA, not China, that is leading the world out of the slowdown.

Maybe the term SHOULD be U-BRIC

Here are 5 reasons that PMI data is relevant evidence for your analysis

  • PMI is a reliable fact-based indicator as opposed to opinion or confidence-based indicators.
  • PMI is produced monthly, faster than comparable official data series.
  • PMI covers almost all private sector economic activity in many countries (including the all-important service sectors).
  • PMI are not revised after publication.
  • PMI are produced using the same methodology in all countries where they are produced- assuring comparability.

While we associate the PMI data with the Institute for Supply Management, the fact is that Markit Economics is the firm doing the actual surveys and reporting.

How do you read the above PMI Data?

Graph

MARKIT


World Steel Production 2011- 1.5 Billion Tonnes

February 1, 2012

Crude steel production reported by the World Steel Association was 1,526.9 megatonnes in 2011, up 6.8% over 2010. This is a new record for global crude steel production. Imagine what the demand for steel would be if we had a robust recovery free of economic temblors!

United States production was 3rd world wide with  86.2 megatonnes after China at 695.5 megatonnes, and Japan at 107.6 megatonnes. The US figure was up 7.1% over 2010.

In 2011, crude steel production in North America was 118.9 Mt, an increase of 6.8% on 2010. The US produced 86.2 Mt of crude steel, 7.1% higher than 2010.

While prices have softened lately, we continue to be bullish for higher prices long term based on global demand due to improved living standards everywhere.

By our calculations this 1.5 billion tonnes of steel is approximately 0.22 of a tonne per person or about 486 pounds per person for each of the 6.9 billion folks on the planet.

World Steel 2011

1,526.9 MT= 1562900000 tonnes =  1.72280235 × 109 short tons = 3.4456047 × 1012 pounds


WTO- China Raw Material Exports Broke Trade Rules

January 30, 2012

Today the WTO upheld its decision finding that Chinese restrictions on key raw material exports broke trade rules.

We have been following this particular issue since November 2009:

http://pmpaspeakingofprecision.com/2009/11/04/chinese-resource-hoarding-dispute-before-wto/

We followed up :

http://pmpaspeakingofprecision.com/2009/12/30/china-resource-hoarding-wto-panel-convened/

Beijing's appeal denied.

And today we are reporting that the WTO upheld its decision that Chinese restrictions on key raw material exports broke trade rules following the appeal by Beijing. As a result, China must bring its duty and export quota measures on elements including bauxite, coke, manganese and others in line with their WTO Obligations.

WTO Decision

The WTO found in favor of the United States, European Union and Mexico in July following a complaint that China had failed to meet the promises it made when joining the body.

At issue were important raw materials for those of us involved in advanced manufacturing- bauxite (aluminum ore), coking coal (steel making), fluorspar (steelmaking) manganese (steelmaking), silicon metal (steel making), silicon carbide, yellow phosphorus and zinc (Brass).

Both the United States and the European Union claimed victory after the publication of the appeal body’s report. according to Industry Week online:

“Today’s report is a tremendous victory for the United States — particularly its manufacturers and workers,” U.S. trade ambassador Ron Kirk said. “Today’s decision ensures that core manufacturing industries in this country can get the materials they need to produce and compete on a level playing field.”

EU trade commissioner Karel De Gucht said the ruling represented a success in efforts to ensure fair access to “much needed” raw materials for EU industry.”

Congratulations to Ron Kirk and his team for winning one for U.S. Manufacturing.

Photo credit


PMPA Business Trends 2011 Review and Summary

January 26, 2012

PMPA’s Index of Sales of Precision Machined Products rose to 114 for the year, up 15 percent from the 2010 average of 99.

11 out of 12 months above 100 in 2011.

The good news is that the Precision Machining Industry is back on track.

The decline in sales in December was due to seasonal factors. The standard deviation of sales for the year is 8.33, not far from last year’s 7.82, and a far cry from the shock and awe volatility of 2008 when the standard deviation was 13.8. What is most important to note is that in 2011, 11 of the 12 months were all above 100 (baseline) and that December’s 98 is the highest value we can recall (It was 99 in 2006, a virtual tie). December 2011 shipments were 108% of those in 2010.

The Q4 average for shipments of 109 is down five points from the yearly average, but due to seasonal factors in December.

It was interesting to note that the percent drop in sales in December from the average of October and November was on the low side of the range at 14.8% for December 2011; In 2008 it dropped 26.4 %; 18.2% in 2007. We believe that seasonality explains the 3 month vs. 12 month moving average indicator.

The average shipments index for 2011 was 114.

The average shipments index for our base year of 2000 was 100.  According to our data, we show less than 2% per year growth since 2000; what has made for our greatest challenge has been that all of that growth has come in the past year. We do not expect 2012 to post such large increases.

What do you expect for shipments in 2012? Based on what?


2012 Top Shop Survey – Free Tool You Can Use

January 25, 2012

Is  there a swiss type machine in your future? How would you know?

Last year’s Top Shops Survey found that 24% of  the top tier (top 10%) of shops reporting in the survey reported Swiss technology in their shops. This compared to just 11% for the balance of shops reporting.  This is a trend that you probably ought to be following if you want to stay up to date on trends in precision machining.

Last year Modern Machine Shop launched its first annual Top Shops Survey. Almost 200 machining facilities took part in that benchmarking survey. The Top Shops Report of that survey’s results had a number of interesting shopfloor practices worth considering. The report also provided a number of operational and business metrics which can help a shop your shop stay competitive and become a better business.

Well worth a few minutes of your time.

The survey will be available until February 15th, so click the link to  go to Modern Machine Shop’s description of the survey which includes a link to the online survey site. TOP SHOP ARTICLE

Direct link to Survey.

PMPA co-publishes Production Machining Magazine in partnership with Gardner Publications in Cincinnatti Ohio. Production Machining focuses on our high precision, high mix, production industry.  Gardner’s flagship publication is Modern Machine Shop- which covers the broader contract machining industry.

The survey will only be posted for a short time, so now is the time to benchmark to your peers.


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