OSHA’s Top Ten Most Frequently Cited Standards- FY 2015

July 22, 2016

OSHA Penalties increased 78% August 1, 2016.

Think of your efforts here as an investment in "Penalty Prevention."

Think of your efforts here as an investment in “Penalty Prevention.”

The following is a list of the top 10 most frequently cited standards following inspections of worksites by federal OSHA for Fiscal Year 2015.

  1. 1926.501 – Fall Protection (C)
  2. 1910.1200 – Hazard Communication
  3. 1926.451 – Scaffolding (C)
  4. 1910.134 – Respiratory Protection
  5. 1910.147 – Lockout/Tagout
  6. 1910.178 – Powered Industrial Trucks
  7. 1926.1053 – Ladders (C)
  8. 1910.305 – Electrical, Wiring Methods
  9. 1910.212 – Machine Guarding
  10. 1910.303 – Electrical, General Requirements

Note,  the standards that are numbered 1926.XXX – Numbers 1. Fall protection, 3. Scaffolding, and 7. Ladders, are Construction industry, rather than General Industry. Nevertheless, Fall Protection and Ladders are relevant in our manufacturing shops as well. Source: Top Ten Standards 2015

In our work with shops involved in OSHA inspections, we have learned that failure to have documented training and evidence is the more likely to be the root cause of the citation. You must train and you must be able to provide documentary evidence of the training.

A savvy management will take steps in their shops to find and fix recognized hazards addressed in these and other standards before OSHA shows up.

 

Action Steps:

  1. Electrical-On your next walk around the shop, look for outlets and power boxes that are not in good condition and schedule their repair ASAP. If you can see wiring or damage- that is likely a violation.
  2. Machine GuardingThis is a particular area of OSHA emphasis. Are all provided guards in place, or are they being removed or defeated? Each instance would be a violation.
  3. Lockout/TagoutThis too is an OSHA emphasis and on their regulatory agenda for review. Now would be a good time to review that all affected employees have been trained. That evidence exists of that training. And that you have audited  to assure performance. (If I went into your shop and saw a machine undergoing a major changeover, would I find it locked out?)

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Prepare Now to Avoid OSHA Penalty Increases August 1, 2016

July 21, 2016

“In November 2015, Congress enacted legislation requiring federal agencies to adjust their civil penalties to account for inflation. The Department of Labor is adjusting penalties for its agencies, including the Occupational Safety and Health Administration (OSHA).

OSHA’s maximum penalties, which were last adjusted in 1990, will increase by 78%. Going forward, the agency will continue to adjust its penalties for inflation each year based on the Consumer Price Index.

The new penalties will take effect after August 1, 2016.  Any citations issued by OSHA after that date will be subject to the new penalties if the related violations occurred after November 2, 2015.” –OSHA News Release

OSHA Penalties to increase August 1, 2016. 78% increase for maximum penalties.

OSHA Penalties to increase August 1, 2016. 78% increase for maximum penalties.

Here is a schedule of the penalties from the OSHA announcement:

OSHA table

What can you do to minimize the impact of these new penalties:

  • Audit your program.
  • Audit your training.
  • Audit your records.

PMPA members that may not be aware of  all of the training that is mandated by OSHA for our shops can download our January  “Safety-Employer Musts Table” Here

Here is a link to our original post on the increase from last year


June 2016 ISM PMI- Stronger Than Our Order Book!

July 11, 2016

The latest Institute for Supply Management Purchasing Manager’s Index (ISM PMI) for June 2016 increased 1.9 percent from May 2016, the fourth consecutive increase  in the index and the 85th consecutive month of increase in the overall economy.

This performance is stronger than our shops are seeing, and so we hope it bodes well for  contract machining orders to pick up in the near future…

Improvement over May 2016

Improvement over May 2016

“The June PMI® registered 53.2 percent, an increase of 1.9 percentage points from the May reading of 51.3 percent. The New Orders Index registered 57 percent, an increase of 1.3 percentage points from the May reading of 55.7 percent. The Production Index registered 54.7 percent, 2.1 percentage points higher than the May reading of 52.6 percent. The Employment Index registered 50.4 percent, an increase of 1.2 percentage points from the May reading of 49.2 percent. Inventories of raw materials registered 48.5 percent, an increase of 3.5 percentage points from the May reading of 45 percent. The Prices Index registered 60.5 percent, a decrease of 3 percentage points from the May reading of 63.5 percent, indicating higher raw materials prices for the fourth consecutive month. Manufacturing registered growth in June for the fourth consecutive month, as 12 of our 18 industries reported an increase in new orders in June (down from 14 in May), and 12 of our 18 industries reported an increase in production in June (same as in May).”

“Of the 18 manufacturing industries, 13 are reporting growth in June in the following order: Printing & Related Support Activities; Textile Mills; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Apparel, Leather & Allied Products; Paper Products; Miscellaneous Manufacturing; Computer & Electronic Products; Chemical Products; Primary Metals; Machinery; and Nonmetallic Mineral Products. The three industries reporting contraction in June are: Electrical Equipment, Appliances & Components; Transportation Equipment; and Plastics & Rubber Products.”

Is the ISM PMI a leading indicator for our precision machining shops shipments in the short term?  In May 2016, the PMPA Business Trends Index declined 8 points or 6.6% to 114, its lowest value for the month since May 2011. A majority of respondents reported sales declines in May. We certainly hope that this ISM PMI is a leading indicator for our shops!

ISM PMI News release June 2016 PMI

ISM PMI graph courtesy Calculated Risk Blog


Thinking Precision, Thinking Big- Keystone Threaded Products

June 9, 2016

The Team at Keystone Threaded Products shows us that “Precision” doesn’t necessarily mean “Tiny” as they thread the ends of some 20 foot long, 10 inch stainless steel bars for a Metalworking press. The thread is a 10-1/4″ : 4 UNJ RH applied to  each end of the  3 and a half ton bar.

@0 feet long two ends to thread, 3 and a half tons of precision.

20 feet long, two ends to thread, 3 and a half tons of precision.

At Keystone, they roll the thread form onto the material which makes for a stronger thread. Alignment and following the process is critical to assure a good thread.

Thread rolling dies create the thread form on the workpiece.

Thread rolls create the thread form on the work piece.

Multiple passes are needed to build the thread up to the proper dimensions.

HAldf a million pounds of pressure are imparted on the rolls to plastically move the steel of the bar into the thread form. Read the gage.

Half a million pounds of pressure are imparted on the rolls to plastically move the steel of the bar into the thread form. Read the gage.

Obviously it takes knowledge, skills, and experience to apply half  million pounds to produce precision work.

Rich says that he's rolled larger bars, but the confidence that skills and experience and a great team to work with make precision manufacturing a great career.

Rich says that he’s rolled larger bars, but  skills and experience and a great team to work with  create the can do spirit that makes precision manufacturing a great career.

Here’s another look at a finished bar. Precision does not necessarily mean tiny!

Just another point of view so you can see the size of the work.

Just another point of view so you can see the size of the work.

 

Thanks to Betsy Minnick and the Team at PMPA member Keystone Threaded Products for showing us that “Precision” is not a synonym for “Tiny.”


ISM PMI Rises 0.5% to 51.3 Manufacturing and General Economy Expanding

June 1, 2016

“The May PMI® registered 51.3 percent, an increase of 0.5 percentage point from the April reading of 50.8 percent. The New Orders Index registered 55.7 percent, a decrease of 0.1 percentage point from the April reading of 55.8 percent. The Production Index registered 52.6 percent, 1.6 percentage points lower than the April reading of 54.2 percent. The Employment Index registered 49.2 percent, the same reading as in April. “-Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee.

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New Orders and Production Component up in May 2016

“Manufacturing registered growth in May for the third consecutive month, as 14 of our 18 industries reported an increase in new orders in May (down from 15 in April), and 12 of our 18 industries reported an increase in production in May (down from 15 in April).

ISM reports  that of 18 manufacturing industries, 12 reported growth in May; the following are the ‘Growing Markets” served by our precision machining shops: Fabricated Metal Products; Plastics & Rubber Products; Computer & Electronic Products; Miscellaneous Manufacturing; Electrical Equipment,Appliances & Components; Machinery; and Primary Metals. Markets that we serve that did not grow include: Petroleum & Coal Products; Transportation Equipment; Chemical Products; Furniture Manufacturing.

PMPA remains optimistic for a pick up in the second half of 2016, which is supported by this positive ISM PMI report.

Chart Link

ISM May 2016 Report Link


Year-Over- Year Growth in Manufacturing Production by Sector- NAM

May 24, 2016

While manufacturing growth remains essentially level, certain sectors served by the precision machining industry grew nicely in the year ending in April 2016.

Dr. Chad Moutray,  Chief Economist at National Association of Manufacturers, has compiled and shared the data for the past year in Manufacturing.

The sector in which Precision Machining is classified – Fabricated metal- shows a minus 3% growth for the period of April 2015- April 2016, the fact is that our shops also provide engineered components for Motor Vehicles and Parts (up 4.3%) Miscellaneous Durable Goods (up 5.2%) and Computer and Electronic Products (up 2.9%)

Winneing and losing sectors for Manufacturing Production.

Winning and losing sectors for Manufacturing Production.

While the actual Year-Over-Year Growth for Manufacturing eked out a 0.5% growth rate, there were clearly winning and losing sectors as the chart above shows.

Here is a recap of the markets typically served by our precision machining shops: Machinery, Fabricated Metal, Aerospace and Miscellaneous Transportation Equipment, and Electrical Equipment and Appliances were down, while Miscellaneous Durable Goods, Motor Vehicles and Parts, Computer and Electronic Products showed gains ranging from 2.9%- 5.2%.

According to Dr. Moutray, manufacturing rebounded somewhat in April, as manufacturing production grew 0.3 percent, just offsetting the 0.3 percent decline in March. In April, renewed strength in the  Machinery sector (up 2.4%) and Motor Vehicles and Parts  sectors (up 1.3%) were positive signs.

According to the FED, April Industrial Production moved upward by 0.7 percent, after two months of decline.

The PMPA Business Trends Index of Sales for April 2016 declined from the year’s March high 0f 131 to April’s 122. That 122 reading is up one point from the 2015 calendar year average.

While the economic news is not bubbling with enthusiastic reports of growth, we think that the industry operating even or just above last year’s average is a positive story.

It sure beats the alternative…


Alternative Career Plans if College Doesn’t Come Through

May 19, 2016

If college was your first plan, but now it’s not, you need an alternative plan. The difference between low wages and a good paying career is having a plan.

“People who get the best options, the best money, the best jobs- have a plan. What’s your plan, if the college plan doesn’t come through?”

  • Hundreds of jobs in your hometown that employers want to see filled with local talent.
  • The best possible job for you should match your skills and your interests
  • Careers with a future
  • Let you grow you pay quickly based on your performance

Here are  3 career planning options that give you “Home Field Advantage” discussed in the video.

Alternate Career Plan #1 Direct to Work

Alternate Career Plan #2 Apprenticeship

Alternate Career Plan #3 Military Service

Thanks to PMPA Member  Company Vanamatic Company and Ohio Means Jobs for the video and wise career counsel.