Precision Machined Products Association

Over the past 9 months, when called upon, PMPA members have responded in record numbers by using the association’s online Action Alert system.

EMC Precision Machining, a longtime PMPA member, was a stop on President Barack Obama’s tour of Northeast Ohio on January 22.

If you are involved in the precision machined products industry, you have a vested interest in what our legislators are up to.

Prices for most raw materials used to make precision parts have double-digit increases for the year ending December 31, 2009. Surcharges, price increases, and short supplies of even common items characterize today’s market. Until larger inventories of scrap build up from increases in production, the industry and its supply chain face a paradox of no scrap from which to make steel, therefore no steel to make parts, therefore, no scrap to make steel… Copper and brass has doubled over the year. Aluminum is up over 40%. We anticipate spikes in surcharges, allocation, and long lead times throughout the first quarter of 2010.

There are many issues that confront our businesses these days.

It’s January—the time when most of us resolve to do things better in the coming year. The gyms are packed.

Bob Brinkman, chairman of Brinkman International Group, has announced his retirement from the company that bears his name. The Rochester, N.

The year 2009 will be remembered by many of us as a teacher—a cruel teacher, perhaps—but a teacher, nevertheless. There are several important lessons that we learned as an industry, as small- to medium-sized businesses and as manufacturers.

Micron Manufacturing Company of Walker, Mich. , recently celebrated its receipt of the 2009 Shingo Silver Medallion for Operational Excellence.

Quality documentation can be improved. Whether you use a simple word processing program such as Word to document your processes, or a more sophisticated documentation software program, organizing your material and identifying the simplest way to meet your needs is the key to documentation success.

In the early days, the Hennings’ customers were primarily small- to medium-sized precision machining
companies. 

There is nothing like "business as usual" to nurture a, well, let’s call it a "business as usual" managerial role. In normal times, as managers, we work to achieve our organization’s mission by planning, organizing, leading and controlling.

Enoch Manufacturing Company is one of the largest custom precision machining manufacturers on America’s West Coast. The company produces complex, custom parts for a range of industries, shipping more than 3.

The Precision Machined Products Association has created a blog to facilitate the transfer of important knowledge that will help keep precision machining competitive, sustainable and profitable.

Of course prices have risen. Manufacturing expansion following 18 months of decline. Supply chain pretty much destocked. Low inventories. Domestic mills operating at 47 percent of capacity. Global influences on scrap and raw materials. You need a program to follow this game. We're providing you one with this edition of PMPA's Material Impacts Report.

Dear Industry Colleague:We’ve seen unprecedented spending by the federal government in recent months under the new administration. That includes plans to implement a public option for healthcare coverage.

"Improving profits" will be the focus of Al Horner’s presentation at the PMPA Annual Meeting in Savannah, Ga. Mr. Horner will share his knowledge of the subject at the meeting’s Sunday morning business session on October 25.

Beneath the din of bad economic news on TV and in the business pages, if you listen carefully, you’ll hear another theme: Sustainability.

We believe that it is time to fasten our seatbelts as an industry. Inventories continue to decrease, foreign nations (Japan and Taiwan) are actively seeking to accumulate scrap, primary mills see no compelling reason to restart facilities, and the Chinese are "arresting" employees of the iron ore supplier companies that they are in "negotiations" with. Surcharges are volatile as a result of the 40-percent increase in steel scrap this month alone. Severstal announced it was ceasing all North American operations today as I prepared this report (5 August 2009). I cannot confirm that any BOF melt bar capacity is currently running in North America.

Proper use of controls provides a safe operating environment in many aspects of our daily lives.

PMPA’s 2009 Annual Meeting:October 24–28, Savannah, Ga. PMPA’s Annual Meeting is a strategic business conference designed to help owners and managers prepare for the challenges and opportunities that lie ahead.

Northwest Oil Company is a supplier of industrial lubricants and specialty fluids, including cutting oils, water-based coolants, grinding fluids, cleaners, degreasers and corrosion inhibitors. The company had its beginnings as a Union 76 truck stop in Wapakoneta, Ohio, owned by Dick Mowery.

The automotive market is an important sector served by the precision machining industry. Until 2008, it was the single, largest market served, according to the PMPA’s Annual Business Forecast Report.

An abnormal state in which the normal flow is slowed or stopped is called "stasis." With the exception of copper and brass (up ~ 40 percent since January 2009) stasis is a good descriptor of raw materials pricing trends these days. Demand for final products, not availability of raw materials, is the primary determinant of raw material prices. It doesn't matter how much iron ore you have in your mine, if no one is buying cars, that ore is just rocks in the ground. Several 'Green Shoots' are identified as indicating a possible bottom for manufacturing.

Regardless of the current economic conditions and your general business activity, your Web site can and should remain a positive source for leads and brand recognition.

EMC Precision Machining, manufacturers of precision machined products and assemblies, has a long history with PMPA, but has an even longer history of being a family-run business dedicated to its employees, customers and community. Brad Ohlemacher, the current president of EMC Precision Machining, is the fourth generation of Ohlemachers to work for the company.

One of the best lessons learned from my MBA experience was that there are three value disciplines that a company can embody. It is very rare that any company can master more than one.

The Precision Machined Products Association Annual Meeting is our industry’s most influential, strategically oriented event. From October 24 to 28, at The Westin Savannah, in Savannah, Ga.

The PMPA Discount Shipping Program recently announced the addition of UPS Freight to its stable of carriers for less-than-truckload (LTL) shipments. "UPS Freight is another great carrier choice now available to PMPA members," says Harry Centa, program manager for PartnerShip, the Ohio-based organization that administers the program for PMPA.

2L Technologies is one of the newest members of the PMPA, having been founded in 2008. However, the company’s roots go back more than 30 years.

 Revisiting what has worked during the past year will help you sustain your company this year.

The two bands that performed at last month’s PMPA Technical Conference aren’t "metal" bands, but their guitarists both work with metals every day. JoBreen is an acoustic trio that includes Brian Adams of R. F.

I just saw a news clip that highlighted some new-found attention to "people who make things. " It seems that, in a recent speech, the President of the United States recognized the value of the "people who make things. " Well, Mr.

The raw materials that we track are leading indicators for the precision turning industry. Prices for all of the materials that we track are down substantially year over year, as well as from their high in 2008. Inventories are tight on most materials, with Service Center inventories at 17-year lows for steel and aluminum products, according to MSCI. We urge our members to take the published "months of current supply" figures with a grain of salt. These estimates are based on current usage. When production resumes, those "months of supply" will likely evaporate in just a few short weeks. We have seen several presentations over our career that make the point that the economy usually mimics the copper market, so we are somewhat heartened by the trend in the copper and brass indicators that we track. The price of steel scrap remains depressed, offering a different take.

The Precision Machined Products Association announces a new business intelligence service for members. The association has contracted with Kim Korth to provide strategic advisory services related to the automobile industry and the role of PMPA member companies as automotive parts suppliers.

Tsugami-Rem Sales LLC is the exclusive North American importer of Tsugami equipment, including Swiss-type automatic and gang-tooled lathes, bar-fed multifunction machines and machining centers.

I am all about an adventure. I crave the thrill of discovery and the excitement of exploration. I am fortunate enough to have a job that allows me to experience communities around the world.

PMPA’s Technical Program Committee has developed new and exciting programming targeted for your technical, quality and management personnel. Come and listen to people from shops like yours share what it is that makes them stand out in the industry. Then, take those lessons learned and apply them in your own shop.

Here’s my favorite photo. I took it in Chicago’s Millennium Park a couple of years ago during a break from a conference. It’s a little girl playing in a fountain.

As a business owner, you want to provide your employees with a safe work environment. You want everyone at your business to go home whole and healthy every evening. Unfortunately, that’s not always the case.

Watkins Manufacturing has been doing business in the Cincinnati area since the late 1800s. The company manufactured a variety of products during its long history as a job shop. In the 1960s, Watkins developed a unique cutoff process for internal use.

The raw materials that we track are leading indicators for the precision turning industry. From their highs in 2008, to December 2008, these materials varied from 59% to 77%. High variability is problematic for trying to support fixed price contracts. Inventories are tight on most materials, with Service Center inventories at 17 year lows for steel and aluminum products according to MSCI. It is easy to be grim at the bottom of a market. What is critical for us as managers is to recognize that bottom and prepare for success as our markets improve. Having access to materials that are in very short supply due to the current inventory and credit lows may be what brings your company success on the way out of this recession.

What are you doing now to assure you will have the materials that you need when the phone begins to ring?

Like millions of Americans, many of us make New Year’s resolutions to lose weight, stop smoking or spend more time with family. Have you made any resolutions as we enter 2009 to improve the health of your business?Do you have all the answers to the problems that face your business on a daily basis?PMPA’s mission to "lead progressive members toward global competitiveness and sustainable success. " includes helping your company.

As we know all too well, 2008 was one of the most challenging years in recent memory, not only professionally, but also personally. Creating a road map to help our companies successfully navigate the challenges before us—as well as those that lie ahead—is the goal of Management Update 2009. With GPS-like precision, the Management Update Committee has selected speakers from a talented pool of professionals to help us address the most important areas of concern for any business leader.

When I grew up—way back in the mid-20th century—everyone aspired to have a job with a major national publicly traded company. If you could land a job with one of the big boys, you had a guaranteed job for life. General Motors.

It’s the New Year. Hooray! In with the new, out with the old. Change.

The prices of all of the raw materials that we track are well below last year’s levels, and volatile. Producers are in a race all over the world to idle capacity to prevent excessive supply from further damaging their margins.

Are you uncertain about your company’s future? Does your company encourage a culture of innovation and creativity to enhance productivity and profitability? Are you looking for a new plan to market your company and grow your business? Are you looking to develop or strengthen offshore business opportunities?

As I write this in early October, the stock market has lost more than 30 percent, the federal government has signed on for $850 billion in bailout monies for the financial market, and the shared values of many major companies have fallen precipitously.

In September, PMPA members learned about the proposed Rule 1144 for the four-county Los Angeles/Southern California Air Quality Management District (SCAQMD). Former PMPA president Jim Hemingway of Alger Manufacturing LLC, Ontario, Calif., provided the information.

As a PMPA technical member, Boston Centerless supplies precision ground bar materials and grinding services to precision machining companies. The ISO 9001:2000-certifed company is known for providing extremely close tolerances. Boston Centerless was founded in 1958 by Len Tamasi.

"The purpose of the Employee handbook is to make sure each person knows his or her responsibilities. The Employee also must be made aware of what happens when the correct choices are not made."

Rable Machine Inc. is a precision machining company located in Mansfield, Ohio, about halfway between Cleveland and Columbus. Established in 1946 by Frank Rebel (pronounced Rable), the company was founded to provide machined components to the growing number of appliance manufacturers in the area.

Since 2004, PartnerShip and PMPA have offered PMPA members significant savings on shipping with FedEx and Yellow Transportation through the PMPA Discount Shipping Program. In the last 12 months alone, members actively using the program have collectively saved more than $780,000.

In this edition of Material Impacts we learn that the October price increase for steel appears to be dead due to lethargic manufacturing conditions. Only Aluminum, Steel and Coke are higher compared to the same month last year, September 2007; other items we track have fallen substantially. Aluminum is up 3.9% since January; down 17% since July. Brass Scrap is up 0 .6% since January; down 14.8% since last report in July. Copper Cathode is up 3.4% for year; down 15.9% since July. Scrap Nickel is down 21% since January; down 8% since July. Steel #1 Busheling is up 105% since January; down 4 % since July. (Actually, using October numbers, this commodity is up 37.3% over January and down 35.9%from July.) China Coke is up 58% since January; down 49.9% since July. To paraphrase the announcer on the car commercial: "Your pricing may vary. Always buy responsibly. Always buckle up." See links below for the latest Material Pricing information and China Currency publication.

One of the best pieces of advice I was ever given came from an attorney coaching me on how to respond to government questions regarding an anti-trust case. She told me, "Don’t draw lines that divide." This advice has proven invaluable to me through the years, as I tried to draw a circle that included all parties rather than define a line between parties that divides.

Plymouth Steel Corporation is a processor of carbon and alloy cold-drawn steel bars. The company was founded in 1941 in Plymouth, Michigan by Walter J. Bothwell. Currently, his grandson John Quay serves as chairman of the family-owned business.

PMPA has a new partner in its efforts to represent the precision machining industry in Washington, D.C. The association has retained The Franklin Partnership to provide advocacy, lobbying and information services.

While at IMTS in September, I overheard a couple of comments about manufacturing competitiveness that made me scratch my head. The first went something like this: "The only way you can outperform other shops—those that typically have the same machines and cut the same materials you do—is to put better tools in your machines."

Are you enjoying the Olympics? I hope so, because the effects of China’s efforts to clear the air for them have certainly had a measureable effect on the prices for our raw materials here in North America. “According to analysts, China has cut met coke output by 72% to avoid adding more polluting gases to the environment.” China Coke (metallurgical coke is used to refine iron ore to make steel) has increased in price by 215% since January. Steel Scrap is up 114% since January. Get the facts behind the materials impacting your business in the August PMPA Material Impacts Report.

Cox Manufacturing Company specializes in custom, screw machine products, as well as CNC turning and machining services. The company uses a variety of turning solutions ranging from CNC Swiss lathes to multi-spindle screw machines.

Many of today’s quality or business standards provide a framework that allows you the flexibility to define what is most effective for your organization. The ISO-based standards provide core system requirements that are now considered fundamental to having the ability to capture new business. The Malcolm Baldrige Quality Program is based on criteria (the standard) that focus on a much broader series of requirements not mandated by other standards and guidelines.

One thing about holidays is that once they become official, they hang around. Who has not enjoyed many a picnic—fried chicken, barbeque and potato salad—on the summer holidays of Memorial Day, July Fourth and Labor Day? These are great American traditions. However, I would like to see one particular American holiday go away or
at least get a name change. That holiday is Labor Day.

Jim Hemingway, president of PMPA and of Alger Manufacturing LLC, Ontario, California, along with the entire Executive Committee, requests your presence at this year’s PMPA Annual Meeting. The Annual Meeting will be a
celebration of the association’s 75th anniversary.

This year, the Precision Machined Products Association is celebrating its 75th anniversary. From its humble beginnings in 1933, to becoming the industry leader in technical support and management information, the association has always focused on serving the needs of its members while supporting the broader interests of the precision machined products industry.

I can remember the first manufacturing job I had after graduating high school. I was a stockhouse and trestle laborer at a blast furnace in Warren, Ohio. My father thought it would be a good experience and maybe give me an incentive to work a little harder in college. Good thinking, Dad.

Whenever I’ve been asked to go to a trade show or conference, I have always kept one thought in mind: “What will I learn that will help keep manufacturing jobs thriving here in North America?” My attendance at the PMPA’s National Technical Conference helped me understand that despite the many challenges our industry faces, we have a lot to be optimistic about in the precision machining industry.

The “Big Meeting” is the PMPA’s annual meeting, celebrating the association’s 75th anniversary. The event will be held October 17 to 21, 2008, at the Waikoloa Beach Marriott Resort & Spa, Waikoloa “The Big Island,” Hawaii. Of course, there will be special recognition of this tremendous accomplishment for the association and its membership. But this year’s annual meeting is not just another anniversary.

Workmanship is an important term that’s often relied upon as the final arbiter in acceptance of our products. ASTM and other agency standards sometimes have workmanship clauses. One example is ASTM A 108, the standard specification for steel bar, carbon and alloy, cold finished. In ASTM A 108, Section 9 is titled, “Workmanship, Finish and Product Presentation.” So what is this thing that we call workmanship, and how will we know it when we see it?

As of June 2008, steel is up 109%, coke is up 105%, aluminum, copper, brass and oil are at record highs. Nickel and stainless show some softening of price. Five of the seven items we track are up over the same month last year. Lead times are extending as inventories are lean and who wants to build inventory in a volatile market? So focusing on understanding what your suppliers can do for you may be the key to your improved performance in the months ahead.

One of the least understood fatcors affecting machinability of steel is the role of nitrogen.

In the Midwest, we see the China trade issue pretty simply. We lose our manufacturing jobs to cheap overseas labor; we pay our taxes to Washington, D.C., and we wonder why nobody does anything about those cheap imports killing our jobs. We still wonder why the currency peg hasn’t been dealt with, and we wonder what is so difficult about this.
On the West Coast, the view is a little different.

Is incremental improvement enough for our industry’s long-term survival? How many precision machining companies will perish in the next 5 years? 

With a rich history and tradition of service to the industry, the PMPA will pause and remember those who were instrumental in its 75 years of success.

As we near the end of another fiscal and program year, I want to be sure readers know about the PMPA staff, association finances and our volunteer leaders.

The PMPA is known for high-quality meeting content, including keynote speakers that address issues of concern to the precision machined products industry. At this year’s annual meeting, PMPA will feature nationally syndicated radio show host and best-selling author, Hugh Hewitt.

Peterson Tool Company is the world’s largest designer and manufacturer of inserted form tools. It pioneered the inserted form tool and continues to develop new products, improve existing ones and explore new processes.

As the president of Permac Industries, I find the time to participate in a number of trips sponsored by the PMPA, the local Chamber of Commerce and even the Minnesota governor’s recent trade mission to India. I’ve been to China, Ireland and a host of other destinations, all on business. Is there an expense? You bet. Is there a payoff? Absolutely.

I was pleased with the feedback that we received from readers on our March 2008 article on “Value Added — The Key To Profitability.” Before tackling the points brought up by readers, let’s review what I mean by “value added.”

Prices are rising in materials needed for precision machining despite the economic malaise, lead by the dramatic $162 per ton increase to #1 bundles this week. Dumping cases against Chinese firms for fasteners, threaded rod, and pipe and tube are making news around the world. The talking heads on the TV news shows all seem to agree that there is a slowdown going on. Could someone please tell the Commodities that the Precision Machining Industry consumes that that is the case?

Smith & Richardson Inc. is a provider of chaplets for the metal casting industry and a manufacturer of precision machined parts. Founded in 1921, the ISO-9002-certified company got into the machined parts business in 1986 when it purchased one of its suppliers, a small screw machine company.

In recent years, with the introduction of Qualified High-Deductible Health Plans (QHDHPs) and Health Savings Accounts (HSAs), business owners have more tax-saving options in health insurance. While you may need to offer employees a traditional health plan with lower deductibles as an employee retention strategy, you may also benefit from the tax-free accumulation of funds in a health savings account. So, how can you get the best of both worlds?

If the OSHA inspector arrived today, would your system provide documented evidence of training, enforcement and retraining?

The Precision Machined Products Association will celebrate its 75th Anniversary Annual Meeting at the Waikoloa Beach Marriott Resort
& Spa in Waikoloa (The Big Island), Hawaii. At this special event, from October 17 through 21, we will take time to remember the past and celebrate the future of PMPA and the precision machined
products industry.

So what is “value added” and how do we know what is adding value versus adding costs?

PMPA’s Technical Program Committee has developed new and exciting programming—all packaged within a format designed to challenge you to reach your peak performance. This is can’t miss programming targeted at technical, quality and management personnel. Take a quick look at some of the improvements we’ve made.

Despite locally soft demand, ongoing price increases here in North America are the result of increased consumption of copper, steel, stainless steel and aluminum per capita globally. Price increases in cold finished steel bars have been announced for April, and higher surcharges are forecast for stainless steel in March.  Click here to read the complete Materials Impact Report (PDF format): Materials Impacts On The Precision Machining Industry - Feb 2008

Schmolz+Bickenbach presence in United States began in 1990 when Ugine, a French steel producer, bought Alloy & Stainless, a stainless steel distribution company based in Colmar, Pennsylvania. After several name changes and owners, the company now distributes and manufactures specialty stainless bar products in North America.

The PMPA Management Update Committee has your recipe for success in 2008. Come to this year’s Management Update Conference at the Astor Crowne Plaza Hotel in New Orleans, Louisiana. It runs from February 28 through March 1. There, you’ll receive a hefty serving of business intelligence.

The PMPA Marketing Committee, with the support of the Board of Directors, commissioned the market research firm of Kleinhenz & Associates to conduct an in-depth study of the precision machined products industry. This yearlong study recently concluded, resulting in a CD titled, “Trends In Markets For Precision Machined Products.”

Having spent more than 20 years in the field of quality management—as well as holding a couple of simultaneous assignments in marketing and operations—I’d just love to tell you about the importance of quality in marketing. Unfortunately, I can’t.

The theme of PMPA’s 47th Annual National Technical Conference is “Pole Position for Peak Performance. ” What does it take to win the pole position? What does it take to achieve peak performance? To achieve global competitiveness, shops require best practices in Technical, Management and Quality. Like the efficiency of an Indy pit crew, all of these areas must be applied using lean methods.

If your company’s machinists or salespeople need training in precision machining equipment, there could be a grant available to cover part of the cost of that training. Each year, the PMPA Education Foundation sets aside funds for a variety of training activities. The grants go to companies, individuals, schools and organizations.

Planning for necessary raw materials and tooling is critical for meeting production schedules in our shops. Just as important is planning to have the critical maintenance spares needed to keep our production assets up and running.

The PMPA installed its new president October 2007 at the PMPA annual meeting held in Tucson, Arizona. Jim Hemingway of Alger Manufacturing moved up from his role as first vice president to fill the position held by outgoing president Richard C. Gorton.

The Precision Machined Products Association invites you to participate in this year’s Management Update Conference, to be held Thursday, February 28, to Saturday, March 1, 2008, at the Astor Crowne Plaza in New Orleans, Louisiana. Originally planned for 2007, the conference was rescheduled for February 2008 to give the hotel and city time to recover from Hurricane Katrina. PMPA’s Management Update Committee chair, Katherine Coffman, president of Champion Screw Machine Engineering, Inc.

PMPA members use e-mail Listserves to share ideas, solve problems, sell excess material and equipment and learn about new business opportunities. Here is a list of topics that were recently discussed: Have a customer who needs quote for large quantity pin Delinquent customer account Bill pay and transfer controls Looking for help with AGT grinder control Radios on the shop floor Pre-employment tests Workers’ comp Work visa Speeds and feed on CDA 792 leaded nickel silver Product segregation Looking for material source Cutoff application in ETD150 in a 5/8 Acme Iemca CNC Boss 542 Ultem 100 machinability Oil containment systems Metric material Metric 304 tubing Source for 8622 barstock Looking for SS316 tubing source Extruded aluminum Davenport index stopping Used Fanuc robots VDI 30 tooling Tornos shave cam Cold-headed part Live Z unit BND34s, two wanted ISO 9001 design and development Remember that you must be a PMPA member to subscribe to the PMPA Listserves and to receive the benefits. .

Giving employees a clear understanding company policies and the their ability to apply discretion will foster better decision-making throughout the organization.

When you make your living cutting parts, maximizing the time spent making chips is a good thing. Tooling a machine up and down and up again is dead time spent away from making your living. This Ohio shop has figured out how to dramatically cut its dead time. They have created cultural change that most shops can and should implement. 

Mark your calendars for the 32nd edition of PMPA’s Management Update Conference. It will be held Thursday through Saturday, February 28–
March 1, 2008, in New Orleans, Louisiana.

The North American market for precision machined products has typically been large enough and so full of opportunities that there has been no need to look at exports as part of our business planning. However, the loss of the lower-value, large-volume commodity type work to shops in Asia and Eastern Europe has made us realize that we are expert manufacturers in the world market. Let’s look at some of the reasons why we need to look at exports as part of our business plan.

With so many LTL freight motor carriers to choose from and complex rating structures, how do you know which carrier is best for you?

The beginning of a new year is a time to anticipate. It’s also the time that most writers trot out their expectations for the year ahead. But it is the end of the year that gives us a genuine opportunity to reflect on the lessons learned—and those avoided—in the year gone by.

Tornos Technologies is one of the world’s leading manufacturers of Swiss machine tools and automatic lathes. The company had its beginnings in the Swiss watch-making industry, which is known for its emphasis on superior mechanical precision.

If there is anything more critical to organizational success than clear, consistent communications, I don’t know what that might be. Every company has a mission and vision statement these days, as well as a strategic plan that everyone is supposed to be working toward. However, mixed signals can derail an organization’s communications and its achievement of success.

The global competitiveness of our industry is completely changing the way we do business. With more and more of our customers—and even some of our divisions—being international, the need to stay in touch, yet cut costs, is more prevalent than ever.

Accu-Swiss, Inc. is a custom manufacturer of precision, CNC-machined products, as well as a provider of fabrication and engineering services. Founded in 1977, the company is headquartered in Oakdale, California, about 90 miles east of San Francisco. It has 20 employees and occupies 10,000 square feet of space in two buildings.

There is one indisputable lesson that applies to us in manufacturing: We must get more and more functionality out of less and less material. This is the result of continuous improvement, economic competition and the application of engineering principles.

Gosiger Import, a division of Gosiger Inc., markets precision machining equipment to manufacturers throughout the United States. The company’s three principal lines are Euroturn multi-spindle automatic screw machines, Nomura CNC Swiss turning centers and BTB flexible, rotary transfer machines.

E-mail is the heart and soul of all communication these days. You do it at work. You do it at home. You text on your cell phone. Your most prevalent contact with your customers is via electronic mail, but are you making the right impression?

The trend to flatter organizations has made it necessary for people throughout our companies to make decisions and take immediate action. Our customers demand 100-percent on-time and zero-parts-per-million defects rates. This makes it mandatory that every person who recognizes a nonconforming condition must take immediate action.

Automatic Products Corporation (APC) is a leading provider of precision-machined parts produced on automatic screw machines and CNC equipment. The company was founded in 1957 by Charles E. Tedford, who started out with two Brown&Sharpe machines, a small grinder and a milling machine.

Solidifying communication between operations, sales and the customer is a huge step to take in the quest for total process improvement. Often, we get caught up in the discussion of right versus wrong, good versus bad, and “is” versus “is not.”

Are you interested in meeting with your peers and key suppliers to find creative solutions to issues facing your company?

Being on the PMPA IT Committee, I am often asked about my opinion on emerging technologies. This year at PMTS 2007, the main topic seemed to be about upgrading to Windows Vista.

New Dimension Metals Corp. (NDM) is a supplier of cold-finished carbon and alloy steel bar products. The company was founded in 1990 in Dayton,
Ohio, by John C. Gray, who has spent his entire career in the
steel business.

Two essential principles to help you establish “lean” in your operations.

The International Stainless Steel Forum (ISSF) reports that stainless steel production rose in 2006. Crude stainless steel production in Asia and now produces more than half of all stainless steel in the world. The Americas increased their stainless steel production. China's trade surplus versus the U.S. amounted to $23.76 billion in February 2007 according to China Customs quoted in several press reports. This is the second highest level ever, and is 10 times the February 2006 level of $2.5 billion!

Every once in a while, I get to see a report from a branch of the United States government that reinforces my feeling that all of us in manufacturing are way ahead of the bureaucrats in Washington. This week, I received a Manufacturing Sector Report from the Environmental Protection Agency covering motor vehicle parts manufacturing. (View the report at www.epa.gov/sectors/energy/index.html.)

Ray Industries, Inc. specializes in precision thread rolling, as well as precision machining of ballscrews, lead screws, mechanical actuators, worms and threaded fasteners.

More than 420 people attended the 2007 PMPA National Technical Conference, held in Columbus, Ohio, in conjunction with the Precision Machining Technology Show from April 22 to 24. This conference offered attendees "tracks" of programming along the manufacturing technical, management and quality areas of interest.

Dear Miles,

I am writing to you anonymously to address a phenomenon that I have witnessed during the almost 20 years that I have been in the precision machined products industry. Since I consider you the "Dear Abby" of the PMPA, I felt there was no other person more qualified to address
my observations.

Activity-Based Costing (ABC) is often mentioned in conversations between shop owners, but it seems to be an idea that most shops never get around to fully investigating. There are many benefits to performing even a short-term ABC project, but costs and personnel time need to be considered. These days, everyone is too busy to take on an extra project, especially another accounting study. However, your order book might be sufficient evidence that you need to get to work on an ABC project. Here’s a brief explanation of how and why.

Precision machining runs in the Brinkman family. Both father and son have had their hand in running precision machining companies. Earl Brinkman was a young mechanic when he began working at Davenport Machine Tool Company Inc. in 1925. In 1966, he became president of the screw machine production and rebuilding company and retired in 1979 as "Mr. Davenport.

What can a manufacturing person learn from Walt Disney World to help with his manufacturing business? PMPA members learned the following from the Management Update Conference recently held at Disney World in Orlando.

Major appliance manufacturer Whirlpool recently told investors that the company expected its business to be impacted by about $400 million in 2007 by the increased costs of materials needed to make its products. While the impacts of raw material price increases may not be in the hundreds of millions of dollars for our shops, the fact remains that raw materials continue to make a substantial impact on our business.

Axian Technology, Inc. is a privately held, precision machining company that was founded in 1959 in Phoenix, Arizona. The manufacturer currently has 60 employees working at three area plants. The Phoenix headquarters is a modern manufacturing complex that produces machined parts and assemblies. The nearby Glendale plant handles vacuum heat treating and brazing, while the Scottsdale plant produces consumer products.

Everyone knows that the pace of life has changed in recent years. Cell phones have made round-the-clock connection possible—regardless of where you are—so you’re never really away from work or loved ones. Now, the BlackBerry ups the pace of daily life even faster. We can not only stay in touch, but we can get downloads and attachments, as well as take that call with an order, a question, a complaint or maybe even a compliment for a job well done.

Your shop has good quality; you have a quality management system. Your shop has good reliability; you have management systems for assuring worker safety, scheduling equipment availability and careful stewardship of financial resources.

The Precision Machined Products Association is pleased to present its 46th annual National Technical Conference, April 22-24, at the Greater Columbus Convention Center in Columbus, Ohio. The conference theme, "Implementing World Class Techniques & Technology," focuses on the best processes and practices in the machining industry. This is the place to learn the world-class experiences of a range of industry experts.

Allied Machined Products is a family-owned-and-operated manufacturer of precision machined parts. The company was founded in 1946 in Worcester, Massachusetts, by Louis Weber, who retired in 1965. He was succeeded as president by his son Russell Weber who, in turn, was succeeded in
1987 by his son, current president Peter Weber.

In 1999, the PMPA Board of Trustees established the PMPA Education Foundation to "ensure the future success of our industry by supporting educational research and related projects."

The safety of our employees, precision and quality workmanship have always been guiding principles in the precision machining industry. What are the areas that we need to focus on for continuous improvement? Here is a baker’s dozen table of what the OSHA inspectors cited in our industry (SIC 3451; NAICS 332721 Precision Turned Products Manufacturing) for the last fiscal year (October 2005-September 2006). This data was current as of October 13, 2006.

Chase Brass & Copper Company’s commitment to its customers is evident based on its long history dating back to 1837, when it was originally called Hitchcock Button Manufacturing Company. Chase Brass, with manufacturing in Montpelier, Ohio, is now a subsidiary of Olin Corp. (NYSE: OLN) and continues to focus on future customer needs.

One of the paradoxes of team sports that I struggle with has been watching a team with high-caliber players lose to a team with less talented players. We have all seen this happen time and time again. It’s not the individual’s performance, but the team’s ability to perform as a whole that makes the difference. This situation is a reflection of organizational effectiveness (OE).

Are you satisfied with your company’s success in converting quotes to orders? Do you feel that you are getting a fair return on your investment in the quoting process? I frequently hear CEOs and sales managers complain about the amount of quotes that never seem to generate new orders. After working endlessly to respond to piles of quotes and prepare in-depth proposals, the hit rate on incoming orders is quite disappointing.

Each day, organizations face challenges to become lean within their shops. Often, the focus of these lean activities is not extended to our management practices. Problem-solving methodology is one such management practice where simplicity is sometimes ignored.

In 2006, Fordsell Machine Products Co. reached a business milestone. The job shop manufacturer of precision-turned parts celebrated its 60th anniversary. Fordsell opened its doors in 1946 in Warren, Michigan, by Bill Sellheim and Gwayne Ford. In 1984, Michael Redfield, who had prior experience as a general manager at another screw machine company, purchased Fordsell. His main focus for the company was to use Brown & Sharpe as well as Index cam machines to generate business. In 1998, Redfield’s son, David, took over the company and is the current president of Fordsell.

Every day, we face numerous challenges. Urgent demands from others, unexpected events, system breakdowns, equipment malfunctions, and failed communications are "all in a day’s work," for most of us. Occasionally, a singular event arrives that has the potential to alter the circumstances of our life or work. Such an event is called a sentinel event.

Are you tired of receiving phone calls from your customers requiring you to have a third-party sort? Perhaps you’re finally tired of having to deal with thousands of parts returned to you for sorting because of one or two nonconforming parts that made it through your system. You’ve made up your mind to eliminate this nonsense once and for all—but how?

Copper is selling for $3.70 per pound at the time that I am writing this in mid-September. Thefts of copper materials from homes, businesses and utilities are lead stories and front-page news on television and in the newspapers—even in the Wall Street Journal.

One of the most visible changes in the latest ISO quality management system requirements (ISO9000: 2000) is the focus on customer satisfaction. Consider this excerpt from the ISO introduction: "This International Standard promotes the adoption of a process approach when developing, implementing and improving the effectiveness of a quality management system to enhance customer satisfaction by meeting customer requirements."

Gormac Products, Inc. of Racine, Wisconsin had its roots in the George Gorton Machine Company, which was founded in 1894 by George Gorton II. Initially, the company produced disc grinders and pantograph engraving machines. But over the years, the inventive Mr. Gorton built a wide variety of machine tools and
equipment that enabled his customers to be more productive.

Numbers carry far more information than their value or size. Numbers can be thought of as having three dimensions or aspects: 1) the numeric value (arguably, the least important to the shop owner); 2) the delta (change) it represents in the quantity being measured; and 3) the vector or direction of the difference of that change from the preceding value or target (benchmark).

Go to any business and ask, "Who is responsible for generating profits?" You’ll typically get a limited number of answers. "Of course, it’s the boss" is the typical response. "The chief accountant or controller" is another common reply. While both "the boss" and the chief accountant are accountable for the company’s profit or loss, you may find that, in most companies, the profitability engineer is not the boss.

Visual management has been and will continue to be a key driver in the manufacturing world. Lean principles are predicated on visual activities. 5S — the building block of all lean activities — is based on the motto, "A place for everything and everything in its place." Cellular manufacturing focuses on isolating machinery and tools within an area of the plant in order to increase efficiency. Alarms, flashing lights and other poka-yoke techniques are visual assurances of compliance in work cells.

As an avid gardener, I always notice the plantings and landscaping when I make visits to manufacturing shops. The foundation plantings, shrubs and the neat appearance of the landscaping are meant to convey a positive image about the plant, the premises, the company and its people. However, I seldom take photos of the landscaping on my visits. What I really long for is a photo of a nice trash dumpster.

When a vocational school in Mount Joy, Pennsylvania, recently found itself without a CNC lathe, a number of PMPA members and non-members came to the rescue. For years, the Lancaster County Career & Technology Center (LCCTC) served as a local showroom for a machine equipment manufacturer. That arrangement ended last year when the manufacturer sold the last of the lathes and the school didn’t have money budgeted to replace the machines.

Having worked with and supplied a number of Japanese transplant manufacturing companies, I was always impressed with the depth of their systems and planning that made just-in-time work for them. Many of us in manufacturing are providing products to our customers on a just-in-time basis, but I wonder if we truly have a solid foundation under our so-called just-in-time systems?

"Continuous Improvement (CI) of the people and processes under my authority" is the fourth point of my internal compass. The Kaizen concept is usually explained to Americans as meaning "improvement." While this simplification overlooks the role of maintenance and standardization in the Japanese implementation of Kaizen, it can be understood that a major component of Kaizen strategy is the call for never-ending efforts for improvement that involves everyone in the organization—managers and workers alike.

Two incidents early in my career started me on the path to learning all that I could about how tools fail. The first, at a Tier One subsidiary plant of a major domestic automaker near Rochester, was a call for immediate assistance because the cold-drawn bars that my company had supplied were causing their form tools to burn up.

Several times this year, I have presented a "Cost of Quality" talk to local meetings of PMPA districts or chapters around the country. This program makes the case for why we have to adopt Lean Manufacturing techniques in our shops.

Founded in 1966, Permac Industries started out as a small screw machine shop with a few Brown & Sharpe machines. Today, the Minnesota-based company is a custom manufacturer of precision machined products for a range of industries.

The need for training in our shops and businesses is indisputable. No one graduates from high school with the skills and knowledge to perform as a journeyman machinist. If your company is ISO 9001:2000, Section 6.2.2 describes the records of training that must be maintained; if you are TS16949:2002, the requirement is found in Section 6.2.2.2. If you are FDA Medical Device-compliant, 21CFR, Part 820.25 describes the training requirements for your company.

Every company operates in relationship to an environment that surrounds it. A company both acts upon its environment and is acted upon by its environment. For this reason, the effort to improve a company’s internal processes should be guided by a vantage point that reflects the reciprocal relationship between a company and its environment.

Mansfield Screw Machine Products Company has been providing precision machined components to customers since 1945. That was when Joseph L. Witchey and two partners founded the manufacturing operation in a small garage in downtown Mansfield, Ohio. In those early days, the company produced parts for two local thermostat manufacturers.

There is no doubt that the impact of China's entry into the World Trade Organization and its growth as "workshop to the world" in global manufacturing has had a dramatic impact on manufacturing in North America and worldwide. Demand for essential raw materials continues to drive up the prices of machining materials to unprecedented new heights.

Knowledge of the factors that contribute to the machinability of carbon steels is critical for shops making complex precision engineered parts in high volumes. Chemistry, microstructure and mechanical properties as a result of cold work are three of the most important factors influencing the machining of these steels.

The four trends that define the differences between yesterday's and today's way of maximizing  effectiveness include the following: 1) Solo to team performance; 2) Stand-alone company to link in supply chain; 3) From problem detection to process failure prevention; and 4) From managing data to empowering decision making. This month's article looks at the second of these trends.

Ms. Kim Korth, management consultant and founder of IRN, Inc., will present the keynote speech at the PMPA Management Update Conference. The conference will be held February 26-28, 2006, at the Wyndham Buttes Resort in Tempe, Arizona.

Demand for the medical implants in the United States is expected to grow by 11 percent annually through 2007. The market for knee and hip replacements alone in Europe is expected to grow from 1.4 billion U.S. dollars to more than 1.83 billion in 2010. At the heart of each of these procedures is a manufactured, precision-engineered implantable component, the ultimate application of machining technology to improving human quality of life.

The Index Group, located in Esslingen, Germany, is one of the world's leading manufacturers of precision turning and multitask machine tools. Its products include single- and multi-spindle equipment, as well as sliding headstock machines.

Ted Nugent, internationally acclaimed recording artist, political conservative and ultimate conservationist, will be the keynote speaker at PMPA's upcoming National Technical Conference in Dearborn, Michigan, from April 29 to May 2, 2006. "Best Practices Driving Change" is the theme fro this event. America's number one outdoors role model and wild man of rock-n-roll will give his version of unyielding, full steam ahead, best-practice focus.

PMPA members use e-mail Listserves to share ideas, solve problems, sell excess material and equipment, and learn about new business opportunities. Here is a list of what was discussed during the month of September.

Today's business and competitive world is different than it was even a couple of years ago. Are we using the right tools to maximize our effectiveness today or are we still using yesterday's tools because we are comfortable with them?

The PMPA Technology Services Department has recently published a technical overview of five European directives and regulations. The report is available only to PMPA members.

A recent PMPA Listserve thread indirectly referred to the role of the outside auditor. Are such auditors called in to measure you to the standard to which you are trying to be certified or are they there to provide advice and direction? How should your management representative interact with these auditors?

Teton Machine Company began in 1952 as a small tool and die shop in Jackson Hole, Wyoming. Named for the surrounding Teton mountain range, the company was originally located in the basement of the founder's house. Eventually, the operation outgrew that space and, in 1979, was purchased by current owner Rick Rupp.

Ready employment. There are real jobs available in the precision machining industry. I read the classified advertising sections in the Sunday newspapers every week.

The safety of our employees has always been a guiding principle in the precision machining industry. So, what are the areas that we need to focus on for our continuous improvement efforts? Here is a table of what OSHA inspectors cited in our industry for the October 2003 to September 2004 fiscal year.

Eliyahu M. Goldratt's books, "The Goal" and "The Race" provide a clear approach on how to improve a manufacturing process.

Somma Tool Company, Inc. offers a full line of tooling for screw machines, lathes and CNC machines. With 30 employees at its 28,000-square-foot facility in Waterbury, Connecticut, the company specializes in manufacturing cutting tools, holders and precision machining accessories.

Curtis Screw Company, LLC is marking 100 years in business this year. By coincidence, the Buffalo, New York-based manufacturer is also moving its headquarters to a larger, more modern building. The company recently began relocating most of its operations to a 150,000 square-foot facility in Buffalo, leaving a building that it had occupied since 1908. The move is expected to be complete this fall.

I recently attended the Steel Success Strategies conference in New York City. My purpose was to find out what is going on in the world markets for our steel raw materials. The following comments were of such broad interest and applicability, I thought I’d pass them along for your review.

Ensuring that responsibilities and authorities are defined has always been a mandate of the automotive quality standards. The latest version of ISO (9001:2000) has included the requirement to "ensure that responsibilities and authorities are defined and communicated within the organization."

I was talking the other day with the chief executive of a shop when he made the following comment, "We have record-breaking sales, yet we’re barely breaking even. We ran the numbers, and on almost every line item, our costs are up a tenth of a percent or so. That doesn’t sound like much, but at the end of our study, those one-tenths added up to almost 7 percent. The Fed and Greenspan missed it. Inflation is alive and well. I can show it to you in my books."

One of PMPA’s newest technical members is Firetrace International, a provider of automatic fire detection and suppression systems for micro-environments, including all types of computer-controlled machinery. The technology is designed to detect a fire on a machine and automatically suppress it at the source before it has a chance to spread and cause greater damage.

This opportunity comes only once a year, so make plans to attend the 2005 Annual Meeting, October 15-19, 2005. The Hyatt Coconut Point Resort & Spa in Bonita Springs is one of the newest resorts on Florida’s southwest coast, conveniently located between Fort Myers and Naples. The beautiful, state-of-the-art facility is the perfect location for this year’s meeting where industry peers will come together to seek answers to the challenges facing the precision machined products industry.

Amerikam, Inc. designs and manufactures precision products such as valves and fittings for the flow control industry. Located in Grand Rapids, Michigan, the company recently celebrated its 70th year in business.

It is a huge and important endeavor to maintain an effective calibration system in any machine shop. Performing appropriate statistical studies on the equipment that makes up this system is also a necessity that must be managed properly. An improperly defined Repeatability and Reproducibility (R&R) program can drain a company of resources and reduce the effectiveness of the shop.

Today’s quality systems mandate contract review as an integral part of an enterprise’s critical business system. Terms and conditions are seldom given the critical examination that they deserve. While they are often thought of as mere contingency details, the day may come when the contingency has arrived. How has your organization implemented contract review?

These days, with six-sigma, zero ppm, loss function, lean and many other programs, it is easy to overlook the basics. We have many different processes, systems and computers. Where is the knowledge that is contained in our daily deluge of information? Whose desk is not drowning in sea of paper? And yet, when a problem occurs, we ask for data that describes the problem and are met with blank stares.

Micron Manufacturing, a PMPA member located in Grand Rapids, Michigan, faced a setup problem. More than half of the company's sales came from its Acme Gridley multi-spindle equipment. Unfortunately, the average run quantity was shrinking, thus increasing the number of setups required. Because the setup time was becoming a greater percentage of each order's total time, it was driving up costs.

The PMPA Education Foundation recently awarded its first educational grants to benefit training programs in Ohio and Illinois. According to foundation president, Michael B. Duffin, the grants have been used to help educate the metalworking technicians of tomorrow.

"Why do customers buy from us?" is one of those easy-to-overlook questions that can explain much about the state of our current business. With its easier-to-answer but trickier-to-solve cousin, "What do customers buy from us?" the question can illuminate your underlying business approach and explain why your sales are what they are.

This year’s theme: "Seizing Opportunities In A Whole New World"

Last year, five factors converged to transform the North American steel market.

The following steps will assist in addressing other ISO 9001:2000 requirements.

Fischer Special Manufacturing celebrates its 100th anniversary this year. The company was founded in Cincinnati, Ohio by brothers Charles and Frederick Fischer. In the early days, the pair primarily manufactured spark coils for the emerging automotive industry.

Here's a military view on what really matters in people and organizations.

Dr. Ken Mayland provides timely economic data, charts and forecasts.

PartnerShip agreement provides discounts on Yellow and FedEx shipments.

Accepting responsibility for one’s actions is key to being a successful team player.

Here are the four stages involved in getting an accurate valuation on a business.

Wanna make a bet…or two?* First bet: I will give you $40 for every pedestal grinder in your shop that is securely anchored to the floor if you give me $5 for every pedestal grinder not securely anchored. Second bet: I will give you $100 for every pedestal grinder in your shop that has all of the following: 1) Rests adjusted to within 1/16 inch of the wheel; 2) All guards and clear spark shields in place; 3) Both wheels dressed and no sign of abuse. In return, you give me $5 for every pedestal grinder in your shop that has not met all of these safety requirements.

There can be more than one right solution to a problem, even when those solutions contradict each other.

Membership requirements are revised to allow greater participation.

Dürr Ecoclean is the international leader in the design and manufacture of integrated systems for cleaning parts. The company introduced the world to the process that uses hydrocarbon technology, which is quickly becoming the preferred way to clean precision machined components.

Tied to Deming’s 'Plan-Do-Check-Act' Cycle

This is a simple question with a not-so-simple answer.

Health savings accounts (HSAs) are the most recent innovation in healthcare reimbursement. They have generated strong interest among professionals and corporate executives who see the tremendous tax advantage.

Material price escalations exceeding 100 percent; surcharges on top of surcharges; lead times are in excess of 40 weeks on certain items. What can a precision machined products company do to make the best of this current market maelstrom? How about using lean tools to help minimize the impacts of the current market conditions?

The Thuro Companies are a sought-after source for precision component parts and assemblies. The ISO 9001-2000-certified companies serve the automotive, aerospace, linear motion, energy absorption and optics industries.

Most people have a good sense for the value of their house or car, but when business owners are asked the question, "What's your business worth?" the overwhelming majority answer, "I don't know."

You don’t have to have the last name 'Einstein' to figure that energy efficiency equals more money for you and your business. While many of us consider our company’s energy budget to be a fixed cost or a constant variable cost as a fraction of our sales, the fact is both of these mindsets put blinders on our ability to think about energy costs.

The company began as a small job shop with two used Swiss screw machines and a brand new Hardinge machining center. Today, the company machines high-precision components for the medical industry, particularly surgical instruments, orthopedic and dental implants, and orthodontic hardware.

At a recent district meeting, a question posed to the panelists was, 'What will the 'winners' in our industry look like, who do you think they will be and why?'

The organization introduces its Educational Foundation in this informative brochure. Topics such as development and maintenance of training programs are covered. .

Contract review is a critical aspect of running a successful shop. APQP, FMEA, and PPAP—all of these contribute to the "no surprises, products meet all aspects" of the customer’s specification delivery experience. But what about the commercial side? The efforts you fail to make on commercial aspects of your obligations can have consequences just as serious as shipping nonconforming products to your customer.

The reform of federal government acquisition processes has resulted in the wholesale demise of entire classes of specs, standards and commercial item descriptions. MIL-STDs and MIL-Specs once added up to 35,000 in the early 1990s.

Champion is a leading supplier of Acme-Gridley replacement parts, tooling and attachments. The company also stocks parts for Davenport, New Britain and Conomatic.

Because of the high initial cost and relatively short useful life (about 5 years) of most personal computers, many companies delay disposal of their old PCs. Yet, the consequence of maintaining a depot of used PCs actually increases the risk to a business in at least three areas: environmental, employee privacy and customer privacy.

On September 18, 2000, the European Union established the End of Life Vehicles Directive to identify hazardous materials that were contained in cars. The directive was also designed to determine the content recyclability in vehicles at the end of their useful life. A reporting system called the International Materials Data System (IMDS) was established for standardizing the reporting of chemical compositions finding their way into automobiles.

Imagine the pressure of being a world-renowned soloist, on stage, in a packed, sold-out orchestra hall, and having your instrument break. Actually, for most of us, this wouldn’t be difficult to imagine at all. We are sole suppliers of highly technical products sold in high volumes. Every day, we either perform or. . .well, we PERFORM!

When the subject of  'material challenges' or 'material difficulties' is brought up in manufacturing, one instantly suspects difficulties in machining or cutting the material. But the real material challenge facing the industry today is the following 1-2-3 punch.

Combine PMPA’s 71st Annual Meeting, October 16-20, 2004, at the Westin Maui, Lahaina, Hawaii, with a structured business program, and you have the ultimate senior management retreat!

In 1942, John Neumann, Sr. founded the company that would become RB Royal Industries, Inc. In the early days, Mr. Neumann produced fuel and brake lines in the basement of his home and sold them—along with brass fittings—from his car.

With a range of speakers discussing issues facing the industry and unlimited networking opportunities, the 2004 PMPA annual meeting should be a priority for your company’s top management team. This year’s meeting is being held October 16-18 at the spectacular Westin Maui on Ka’anapali Beach, the island of Maui, Hawaii.

It is impossible to ignore the current perfect storm of extreme pricing escalation for raw materials versus the multi-year fixed price contracts we have for our products. (Does anybody know the surcharge du jour?)

While the official title of Sunday, June 20th is “Father’s Day,” I can’t help but be appreciative of the many bosses, supervisors and executives I’ve worked for that made a difference in my career by their mentoring or example.

On March 22, 2004, the Third Circuit Court of Appeals in Philadelphia refused to order the Occupational Safety and Health Administration (OSHA) to promulgate a health standard regulating worker exposure to metalworking fluid (MWF) mists. The suit had been brought by the United Auto Workers (UAW) and the United Steelworkers unions. In a strange turn of events, the Precision Machined Products Association found itself on OSHA’s side in this legal action.

Online Training Is Available For PMPA Member Companies.

More than 200 manufacturers — 25 of them representing Precision Machined Products Association member companies — recently carried a message of an industry in crisis to more than 120 members of Congress or staff.

Those of you who have heard me speak at district programs know that the above question is the fifth point of my internal compass. Taking a look at this question in light of your shop’s situation will be time well spent, I assure you. Here are some ways to make your company money by improving overall performance.

On October 21, 2003, the United Auto Workers (UAW) and the United Steelworkers of America (USW) filed suit against OSHA to force the organization to issue a standard that would reduce the permissible exposure limit (PEL) by a factor of 10 for all metalworking fluid mists. PMPA has joined the suit as an intervener on the side of OSHA.

Do you produce parts for shipment overseas? Do you now or are you thinking about importing parts from overseas? Are you up to speed on the international phytosanitary requirements as they might apply to your shipments?

Fifty-one intrepid PMPA members journeyed halfway around the world in late October 2003 to learn more about China and Chinese manufacturing capabilities. With the trip completed, our objectives met and everyone safely back home, PMPA is preparing a formal report to the membership.

Vanamatic’s Presentation Demonstrates How Easy It Is To Reduce Setup Time And Labor Costs

Rhode Island Manufacturer Trains Shop Staff To Be Versatile Operators

Sluggish Upturn Seen In Latest Business Trends Report

Most of us work with the quality systems and departments already in place in our companies. Much of our work is determined by the structure and form of the established quality policies, procedures, processes and systems that we have inherited. These systems grew as our businesses did, evolving from an initial inspection focus to systems using statistical process controls, and they now comply with international quality system standards.

Industry Employees Who Pass NIMS Credentialing Tests Are Eligible For Grants

Like many of you manufacturers, I have been following the transformation of manufacturing and the world economy for the past several years. We all recognize that globalization has radically impacted the competitive balance of our businesses. And, most acknowledge that this issue is the single greatest challenge we must confront to ensure continued prosperity for our industry.

The day is coming when automakers and other major manufacturers that purchase precision machined products will base their procurement decisions, in part, on whether a company and its employees are certified and credentialed by the National Institute of Metalworking Skills (NIMS). The movement is already underway, according to Steve Mandes, NIMS executive director.

Lean setups are not “magic.” They are the result of a logical process. Lean setups are neither smoke nor mirrors. But, like the clever handout used by AMT Machine Systems to make the point during its showfloor demonstration, lean setups can be a lens to magnify the dollar value of the time saved by implementing lean thinking in your operations.

Celebrating 70 Years Of History And Preparing For The Future September 27-October 1, 2003.

This Year's Trade Show A Success

Partnership With Tooling U Provides Easy Access To Online Training

How Prince Industries Mixes Manufacturing With Off-Shore Sourcing

The 2003 PMPA Management Update Conference presented attendees with an integrated package of competitive trends, marketing, business intelligence and financial management information. The content was designed to help precision machined parts manufacturers understand and deal with the many challenges of global competition.

Consolodation among steel bar suppliers is creating a variety of issues for precision parts manufacturers.

Almost since doctors first told them their son Jerod had severe cerebral palsy, Jim and Lois Montague have been preparing for the day when they would no longer be capable of taking care of him. What the Montagues didn’t plan for was being at the forefront of building a $2 million, 11,000-square-foot group home to house 30-year-old Jerod and seven other severely handicapped young adults.

The top official of the Precision Machined Products Association is expecting 2003 to be a year in which his industry could see some recovery, but he cautioned that many member companies shouldn’t believe that good times will come back and that they can expect a plethora of incoming orders.

As the 1980s drew to a close, Tad Korndoerfer knew that if his Long Island, New York-based company was to survive, it was going to have to undergo a paradigm shift in the way it did business. No longer, he felt, could Action Machined Products be content to compete in the commodity-type business on which it had grown up. Price pressures from the consuming industries were eating the margins of Action Machined Products. Plus, while low cost foreign competition was just starting to become a factor in the precision machined products industry, it was obvious which way things were headed. Action Machined Products, which up until then produced the lion’s share of its parts on aging Brown&Sharpe machinery, needed to evolve to the next level.

Jerry Eighmy sees the world in a different light. Where others may see a potential problem, he sees an opportunity. While some in the precision machined products industry believe the labor pool for talented young adults is thin, Mr. Eighmy is working to increase the size of the pool.

Sharing technical and shop information and working with others in the industry to solve problems in these areas are the biggest benefits of attending the Precision Machined Products Association’s annual National Technical Conference (NTC), to be held May 3 - 5 at the Greater Columbus (Ohio) Convention Center.

The Mitchel Brothers Global Players and Gold Mic Award Winners

Management Update Conference Will Focus on Global Competitiveness Issues

PMPA Training partner PMPA Training Partner Receives ISO Certification The Adult Career Center at Lorain County Joint Vocational School (Lorain, Ohio) recently received Quality ISO 9001: 2001 Site designation. The school has been partnering with the Precision Machined Products Association since 1988, offering the employees of companies within the industry continuing education programs in machining, tool setting and estimating. (See related story on CD training programs on page 18.

The past year has been a turbulent one for the precision machined products industry. Parts producers watched as their market share waned in the face of a down market and an increase of imports from Pacific Rim and European countries. Consolidation continues to be a significant issue for our industry as well.

Networking And Information SharingAre Key Reasons To Belong To PMPA

Precision machining industry executives looking for the keys to combating foreign competition should make plans now to attend the PMPA's 2003 Management Update Conference to be held February 23-25 at the OMNI Mandalay Hotel at Las Colinas in Dallas, Texas.

Traditional thinking is that the threat from China in precision machined products will come from the juggernaut that is the state-owned and run precision machining shops, but that thinking may be flawed, according to an expert on the country and its economy.

With China and other offshore producers continuing to loom ever closer on the horizon, this year's PMPA annual meeting, to be held October 19-23 at Westin Mission Hills in Rancho Mirage, California, will serve as a primer for competing successfully in what has become a global marketplace.

It's been more than 10 years since PMPA conducted a member needs study. PMPA's president, Dave Knuepfer, and new executive vice-president, Tim Andrassy, agreed that conducting the study now was especially important, because it would add additional member input to the new Strategic Plan and help PMPA focus its resources on those areas and services valued most.

The 2002 National Technical Conference held in late April in St. Louis, Missouri, started off with a bang, at least for the early arrivals who were trying to fly in on Friday and ran headlong into the teeth of a massive Midwestern storm. Flights were diverted and many people spent the night somewhere other than their intended destination. By the next day things had calmed down, and were near normal—except for the inevitable lost pieces of luggage—when Saturday evening's reception began.

We seem to have entered a period that could be characterized like the movie, 'The Good, The Bad, And The Ugly.' The good news for the precision machined products industry is that as of April, we have finally put together back-to-back months of industry-wide sales increases per PMPA's index of sales. In fact, this is the first time since March of 1999 that we ended up with 2 consecutive months of gains in this index. The downside to this is that we continue to be off from what PMPA's 2002 Forecast projected for the first 4 months of 2002, and also considerably down for the year-to-date January-April as compared to last year for the corresponding period.

The recently released PMPA 2002 Wage Benefits&Work Schedule Report is a major resource helping PMPA members make sure they are competitive in the skilled employee marketplace. As the name of the report suggests, the report covers wages for most hourly wage jobs found in the shop as well as an overview of benefits provided, including costs to the employees and a look at work schedules throughout the industry.

As is well known, President Bush has announced imposition of the most protectionist tariffs since the end of World War II on imported steel. The tariffs are up to 30 percent of the entered value of steel. Coupled with the tariffs (and a tariff rate quota or TRQ on steel slabs) is a provision for 'product exclusions.'

Please join me in welcoming Tim Andrassy to PMPA as our new executive vice president. Tim brings more than 25 years of association experience to PMPA, and he is only the fourth executive vice president in our 69-year history.

When was the last time you reminded your customers of all the specialized services and other value-added processes you provide as a supplier? Are your customers truly aware of the behind-the-scenes work you do on their behalf to ensure the finest quality and on-time delivery?To assist Precision Machined Products Association members in taking an inventory of what they bring to the buyer/supplier relationship, PMPA's marketing committee recently completed a Marketing Strategies bulletin titled "Value Added: What Value Do You Bring Your Customer?" This project was an objective identified through the association's 2001 strategic planning efforts. "The (marketing) committee jumped right on this objective from the strategic planning com-mittee, which aims to help PMPA members address the subject of value added with their customers," says marketing committee chairman Jim Wrenn of Hudson Precision Products, Inc. (Broadview, Illinois).

The Precision Machined Products Association's marketing committee recently revised its Buyer's Guide, which has been fully updated to include the latest information on the purchasing of precision machined products. The committee released this document via the PMPA Web site, and it is available to purchasers of precision machined products worldwide.

The PMPA's newest human resource information and management tool—the PMPA Human Resource Management System (HRMS)—was officially launched during the first week of December 2001.

At the annual meeting, awards were handed out to individuals and companies. The Gold Micrometer Award was presented to T.R. Phillips, president of Pacific Precision, Inc. (San Dimas, California).

Three members of the Consuming Industries Trade Action Coalition (CITAC) testified recently during the 'injury phase' of the U.S. International Trade Commission (ITC) Section 201 investigation hearings. They pointed out that access to steel imports is critical to the survival of steel consuming industries in the United States, and they urged the commission to consider the impact of import restrictions on consuming industries.

The PMPA Human Resources Committee is offering its long-awaited Human Resource Information&Management System to PMPA members beginning summer 2001 via a password protected, secure Web site.

Forces are in motion that will have consequences for U.S. steel users, as well as producers. How will they respond?

The members of the PMPA Staff would like to comment on the passing of Jack D. McNaughton, CAE, PMPA's Executive Vice President from 1992 to 2001, our boss and our friend.

As many of you are aware, Jack McNaughton, the executive vice president of the PMPA, passed away on Good Friday, April 13. Jack came to us in 1992, bringing with him a servant's heart and a dedication to his job and profession that made him unique. He set a high standard for those of us who had the chance to work along side of him.

The Metalworking Skill Standards initiative led by the National Institute for Metalworking Skills (NIMS) continues to grow in popularity, with companies and schools across the United States adopting the Standards as a tool to benchmark the knowledge and skills of the workforce and students.

While economic conditions for both the U.S. economy and our industry bottomed out in December to one of the lowest levels seen in years, the association looks for little chance of an overall recession in the economy as well as our industry. However, it is now recognized that with manufacturing slumping over the last half of 2000 and into January of this year, it goes without saying that the manufacturing sector of industry is in a recession.

The Precision Machined Products Association (PMPA) creates an Educational Foundation to promote workforce development.

New PMPA Officers President: Bernard B. Bertsche, President, Camcraft Inc., Hanover Park, Illinois. First Vice President: David R. Knuepfer, President, DuPage Machine Products, Inc., Glendale Heights, Illinois. Second Vice President: Peter K. Rosenkrands, President, A. B. Heller, Inc., Milford, Michigan. Treasure

From a "robust pace" in the early months of 2000, to mid-year "softening," to a forecast of "plateauing" in the final quarter: This is the overall picture of the precision machined products industry after experiencing many unexpected "ups and downs" during the year.