Precision News May/June2012

THIS ISSUE: April Showers / Coming Soon: “Taxmageddon” / Small Business Concerns / Got Foam?

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ARIZONATOOLING.ORG MAY/ JUNE 2012

The NTMA SW Regional Magazine Featuring Arizona, San Diego, San Francisco and North Texas

PrecisionNews TM

TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

Inside: LIBERATE YOUR CAPACITY THE CAPABILITY ISSUE

DESIGN, MANUFACTURE IMPLEMENT AND

LIBERATE YOUR UNTAPPED PRODUCTION CAPACITY AND THE ECONOMIC POTENTIAL OF YOUR BUSINESS

ADVANCED AEROSPACE ENGINE PRODUCTION TOTAL COMPONENT EXPERTISE IS KEY IN A COMPETITIVE MANUFACTURING LANDSCAPE

BE A BETTER MANAGER IF YOU THINK THE ‘SAME OLD, SAME OLD’ STILL WORKS WITH YOUR EMPLOYEES, THINK AGAIN

AMERICAN MANUFACTURING HAS

THE

POWER TO ‘MAKE IT HERE’ AND REBUILD OUR ECONOMY

NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

MAY/ JUNE 2012 VOLUME 2 • ISSUE 3

Contents Features

Departments

SPECIAL ADVERTISING FEATURE

10 12 14

GOT FOAM?

03 President’s Letter

You purchase a brand new metal removal fluid for your shop. After filling your machine, expectations are high! But suddenly you have foam all over the shop floor! Great, now what do you do?

04 Policy Matters 06 Trend Watch

WAGING WAR TO LIBERATE CAPACITY

08 People Power

Manufacturing companies need to embark on their own “Great Crusade.” You need to focus on ways to liberate your untapped production capacity and the economic potential of your business.

18 Shop Floor 20 Websites that Work

EXPERTISE AND MANUFACTURING METHODS FOR ADVANCED AEROSPACE ENGINE PRODUCTION

20 Arizona Chapter Info 26 San Diego Chapter Info

Total component expertise is the key to success in such a competitive manufacturing landscape. Aligning key factors will help you compete on a global scale.

28 North Texas Chapter Info 30 San Francisco Chapter Info 32 The Tea Leaf

OUR MISSION:

“WE JOIN TOGETHER AS MEMBERS OF THE SW REGION PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”

The NTMA SW Regional Magazine Featuring Arizona, San Diego, San Francisco and North Texas EXECUTIVE DIRECTOR & EDITOR Chris Mignella

PrecisionNews

TM

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CONTRIBUTING WRITERS ATMA Safety Team, Dante Fierros, Sean Holt, Margaret Jacoby, Omar Nashashibi, Brent Terhaar, Jeff Thredgold, Ted Szaniawski ADVISORY BOARD Chris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser EDITORIAL, ADVERTISING & ADDRESS CHANGES Chris Mignella Phone: 602.388.5752 • Fax: 480.970.8501 Email: ExecutiveDirector@arizonatooling.org

Precision News is published bi-monthly by the Arizona Tooling & Machining Association (ATMA). Opinions expressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes no liability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork.

Reproduction in whole or part without the expressed written consent from ATMA is prohibited. Precision News is the registered trade name of this publication.

Copyright ©2012 by ATMA. All rights reserved.

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Consolidated Resources, Inc. Industrial Recycling Specialists

• Aluminum • Nickel • Stainless Steel • Copper • Brass • Titanium • Aerospace Alloys

• Glass • Wood • Plastic ATMA M EMBE R • Paper • Cardboard • Certified Material Destruction • All Ferrous Grades

20th

Anniversary

Call Kerry 623.931.5009

kerry@consolidatedresources.com

Consolidated Resources Inc. 4849 West Missouri Glendale, AZ 85301 Office: 623.931.5009 Fax: 623.931.5852 www.consolidatedresources.com

We offer innovative metal finishing for the aerospace, industrial, electronic and commercial markets worldwide.

NADCAP Accreditation • Prime Approvals ChemResearch Co., Inc. is the largest multi-process metal finishing supplier in Arizona. Our processes include:

Anodize Chrome Plate Electroless Nickel Silver Plate Chem Film Dry Film Lube Non-Destructive Testing

Copper Plate Nickel Plate Passivate Grinding Paint Zinc Phosphate Chemistry/Laboratory

Steve Blok, Regional Sales Manager 602-320-3518 • sblok@chemresearchco.com

Silk Screen/Part Marking - NEW! Dow 7 - NEW! Manganese Phosphate - NEW! INTRODUCING NEW PROCESSES FOR 2010!

Cadmium Plate, Nital Etch, Pressure Testing CALL TODAY FOR DETAILS! Frank Lopez, Estimator/Pricing Analyst 602-253-4175 • flopez@chemresearchco.com

CHEMRESEARCH CO., INC.

1101 W. Hilton Ave • Phoenix, AZ 85007 • Ph: 602 253-4175 • Fx: 602 254-0428 • Toll Free: 877-45-PLATE (75283) • www.chemresearchco.com 02

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First Word PRESIDENT’S LETTER

APRIL SHOWERS

WELL, IN ARIZONA IT’S MORE LIKE APRIL SQUIRTS. While other states are receiving good amounts of rain usually associated with the advent of spring, we in Arizona average 0.27, 0.11 and 0.02 inches for April, May and June respectively. This dichotomy between wet and dry states can be likened to our member’s level of business currently. Some are experiencing a deluge of business while others only a trickle. What’s going on? Peeking through this cloud a bit further, it becomes clear that we receive opportunities that flow down to us from our customer and often times from our customer’s customer and so on up the ladder.

If our “up chain” is healthy and busy, opportunities for more production flow down to our members obviously. On the other hand a loss or decrease in business in our “up chain” can spell disaster for many of our member companies especially those with smaller and tighter budgets than some of the larger companies. We have all heard the adage, “If Boeing sneezes, we get pneumonia”.

. . .. ..

DANTE O. FIERROS President 602.980.1907 dante@nicholsprecision.com

WHAT ARE WE TO DO? WELL IF YOU ARE CURRENTLY SWAMPED, YOU SIMPLY CONTINUE WITH THE BUSINESS OF THE DAY AND LOOK FOR WAYS TO CONTINUALLY IMPROVE AND GROW. IF YOU ARE EXPERIENCING A “DRY SPELL” AND ARE LOOKING FOR OPPORTUNITIES, A RIGOROUS OPPORTUNITY SEEKING AND COST CUTTING STRATEGY IS PROBABLY IN ORDER.

We in the ATMA seek to provide our members with as many tools as possible to help in many business processes. Here are some examples of planned programs and updates: • Business Opportunities, Positions Openings, and Resume Posts – Think of it as a bulletin board of projects, people seeking work and openings needing to be filled.

• Upcoming Interesting and insightful speakers – Scott Walker, VP of Mitsui Seiki, USA on “Current trends in Aerospace & demand for OEM outsourcing”. Mayors Greg Stanton of Phoenix and Scott Smith of Mesa, plus the “Edge Factor Television Program/Presentation” by producer/star Jeremy Bout (www.edgefactor.com). You won’t want to miss this outstanding manufacturing based presentation.

• OEM business development and buyer executive panel and presentations - Details TBA. • “Arizona First”-ATMA’s own affinity program with discounts for ATMA members for all those products/services you use in your businesses from local companies-look for details on the website soon.

• Luke AFB tour-only 30 slots and they will fill up fast - Details TBA. • PLUS all of the NTMA tools and services listed in this issue.

• But wait, there’s more- Our networking segments at our dinner meetings have been extended.

Also, a fun and unique approach (“speed networking”) will be introduced at our June meeting to maximize the ability to meet more people during the networking segment of our meetings.

So if your business is experiencing the fruits of spring, use the ATMA resources to help continue this season of plenty. If your business opportunities are as dry as the Sonora desert, then why not maximize your use of the ATMA and what it has to offer. Let us help in making this a “water shed” year. We are here for you rain or shine.

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Policy Matters TAXATION

“Taxmageddon”

by OMAR S. NASHASHIBI

...In Theatres January 1st

THE U.S. HAS LONG LED THE WORLD IN INNOVATION, DEFENSE SPENDING, AND UNIVERSITY GRADUATES AMONG OTHER INDICATORS. NOW, EFFECTIVE APRIL 1, 2012, ADD THE DEVELOPED-WORLD’S HIGHEST CORPORATE TAX TO THE LIST. I SUSPECT MOST U.S. MANUFACTURERS PREFERRED WHEN JAPAN HELD THAT DUBIOUS DISTINCTION JUST A FEW SHORT WEEKS AGO. As we passed another tax day in April, members of Congress in Washington and politicians from around the country spent a few days talking about their ideas to reform the tax code. From flat tax, to a surtax, from child tax credits to eliminating the IRS entirely, politicians could not talk enough about how their plan would fix all our country’s problems. However, the main problem is no one has presented a plausible plan to solve the $5.4 trillion in tax increases Americans and businesses will face on January 1, 2013.

Think April 15th is a bad day every year?

Consider, for example, the pending “Taxmageddon” that will occur on January 1st if Washington fails to take any action:

• Estate Tax reduces to $1 million exemption, 55% tax on excess • Payroll tax cut expires • Dividends taxed as ordinary income • Reduced Child Tax Credit And this does not include the $1.2 trillion, including over $400 billion defense spending, in mandatory budget cuts taking effect January 1, 2013 as part of the sequestration budget deal last summer.

Most believe that comprehensive tax reform will not occur in 2012 but congressional staff and stakeholders are already putting together their priorities amid the looming deadlines in preparation for “Taxmageddon.”

• Top individual tax rate increases to 39.6% • Capital gains rate increases to 20%

Before we examine how Washington will prevent what amounts to a tax increase of

$18,000 on every American, we must examine what politicians can accomplish in this presidential election year. While abolishing the IRS makes for good Republican primary politics, the current political makeup of Congress renders that proposal little more than campaign rhetoric.

Taxpayers must also be wary of proposals which claim to balance the budget and lower tax rates but do not identify which programs they will cut, which entitlement programs they will reform, or which tax credits and deductions they will eliminate. This is the fundamental challenge we face heading into the elections; the politicians promise the moon but know they cannot deliver.

Ignore, for a moment as Washington tends to, that you must fix the budget by looking at both revenues and spending at the same time (after all, you should know your income and expenses before you start to balance

fyi: For 2011, the CBO projects that if current laws remain unchanged, the federal budget will show a deficit of close to $1.5 trillion, or 9.8 percent of GDP. - Congressional Budget Office

+ Projections suggest we will approach our $16.4 trillion debt limit in the fourth quarter of 2012.

- Peter Orszag, bloomberg.com

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+ IGNORE, FOR A MOMENT AS WASHINGTON TENDS TO, THAT YOU MUST FIX THE BUDGET BY LOOKING AT BOTH REVENUES AND SPENDING AT THE SAME TIME.

your business’s budget). Today, we really only have two mainstream detailed proposals – President Obama and the House Republican alternative presented by Chairman Camp and House Budget Committee Chair Paul Ryan (R-WI).

President Obama calls for a reduced top effective corporate tax of 28% and an even lower 25% for C-Corporation manufacturers.

The President is showing his political support for manufacturers by proposing to reduce the top corporate effective rate for manufacturers to 25% by expanding the Section 199 Domestic Production Activity Deduction. However, the President’s

At the end of this year, all the Bush tax cuts expire - amounting to about $250 billion a year. The payroll-tax holiday, at more than $100 billion a year, ends too, as do expanded unemployment-insurance benefits.

- Peter Orszag, bloomberg.com

Framework does not address Subchapter S Corps, LLCs, Partnerships, and other pass-throughs, which is how 80% of all manufacturing businesses are structured – all paying individual income tax rates. The President’s FY2013 Budget recommends increasing the top statutory individual tax rate to 39.6% which amounts to a significant increase for these 80% of pass-through manufacturers who currently pay an average 30% effective tax rate.

The President uses tax increases on the “wealthy” and many small manufacturing business owners to pay for his tax cuts.

However, House Republicans propose to

lower the top statutory rate for both individuals and all businesses to 25% but do not outline which tax credits and deductions they will eliminate while not increasing taxes elsewhere. Both proposals claim they are revenue neutral yet neither details how without stifling the manufacturing economy.

All individuals and businesses are different and we cannot take a one-size-fits-all approach to tax reform. Few doubt we must eliminate tax deductions or credits in order to achieve lower statutory tax rates. The question is which ones?

“Taxmageddon” continues on page 28

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PLEASE JOIN US WEDNESDAY, JUNE 27TH, FOR THIS SPECIAL DINNER EVENT! Special Guests include Mayors Greg Stanton & Scott Smith and Jeremy Bout from the “Edge Factor” television show. visit arizonatooling.org and edgefactor.com for more information Arizona Tooling & Machining Association

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Trend Watch NEWS FROM THE CUTTING EDGE

Failure to File or Pay Penalties:

Eight Facts source: IRS

THE NUMBER OF ELECTRONIC FILING AND PAYMENT OPTIONS INCREASES EVERY YEAR, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.

Here are eight important points about the two different penalties you may face if you file or pay late.

1. If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.

2. The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. The IRS will work with you.

3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.

fyi: If you have delinquent tax payments or unfiled tax returns for prior tax years, your efforts to regain tax compliance before the IRS or state tax authorities take action against you to force compliance may lessen penalties, interests or potential criminal prosecution that may be imposed for willful failure to pay or willful failure to file.

6. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.

7. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.

8. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.

Learn more at: www.irs.gov

4. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.

5. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid.

This penalty can be as much as 25 percent of your unpaid taxes.

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PrecisionNews // FOCUS

A “Should-Be Concern� for Small Business Almost every business encounters pollutants of some sort, yet many business owners think, “I don’t need to worry - I don’t have any pollutants.� This mindset can potentially have catastrophic consequences, as endless numbers of substances are considered pollutants if released in large enough quantities.

Common Pollutants: • Petroleum products • Fuels • Chemicals

Overlooked Pollutants: • Batteries • Printing ink • Machine cutting oils • Oil from burning tires • Paint thinners • Finishes

Commercial and industrial sites have the potential to cause significant environmental damage if major pollution incidents

occur. In the event of a fire, water and other firefighting products can quickly make their way into the drainage system or straight to the nearest body of water. That can amount to a serious pollution problem and the building owner is responsible for the cleanup of this material. Preventing incidents should be a top priority.

Planning for pollution exposure is an important risk management strategy. Standard insurance policies may provide some limited coverage; however, specialized coverages and policies can be tailored to help your business survive these potential claims.

Contact your local Federated representative to help you identify these risks and ways to help protect your business.

Learn more at: www.federatedinsurance.com

We W e Ser Serve ve Main Street, Not Wall Wall Street As a mutual company company,, our number one concernn is policyholders, not stockholders. concer Discover the value of having a financially sound insurance company with your best interests in mind.

Visit www www.federatedinsurance.com .federatedinsurance.com to find a representative near you.

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People Power INFORMATION FOR ACTION

What Got You Here. . .

May Not Get You Where You Want to Go!

by TED SZANIAWSKI AND MARGARET JACOBY, SPHR

IF YOU THINK THAT “SAME OLD, SAME OLD” STILL WORKS WHEN DEALING WITH YOUR EMPLOYEES, THINK AGAIN. TODAY’S WORKFORCE ISN’T THE SAME AS THE WORKFORCE YOU DEALT WITH FIFTEEN YEARS AGO OR TEN YEARS AGO OR EVEN FIVE YEARS AGO. The change is not just based on the fact that your workforce may be made up of younger workers --- that’s just part of it. The bottom line is that workers of all ages are thinking differently about what they want out of their work. As a result, as their supervisor or manager you have to recognize these changes if you want to keep (and keep motivated) your best employees. And, it’s not just about money!

Let’s look at a couple of statistics that may shock you about today’s workforce: • 30% are actually engaged in what they are doing, but . . .

• 52% are not engaged, and . . .

• 18% are so dis-engaged that they work against the organization’s goals • 45% plan to change jobs when the economy really starts to grow • 48% are not satisfied with their boss.

So what can managers and supervisors do to improve employee engagement and increase productivity, improve performance and retain their best employees? Some simple, cost effective steps include the following: Listen to your employees’ opinions Today’s employees want to actively participate and to contribute to the success of their organization. Your role as their manager/supervisor is to open the door to effective, two-way discussions. And . . . don’t be surprised if they provide solid, valuable input. You don’t have all the best answers!!

Communicate Clear Expectations If your employees don’t have a full understanding of what you want them to do, that’s your problem, not theirs. Few employees go to work wanting to do a bad job, most want to “do good”, but in the absence of clear expectations they will do what they assume you want them to do and that may not produce the your desired outcome.

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If you’re not Listening, Communicating, Recognizing and offering Opportunities, you may just fall into the “poor manager” bucket.

Give Praise and Recognition Now how cost effective is this?! A simple “thank you” or “job well done” can go a long way toward satisfying the needs of employees who want to be appreciated. And offering recognition positively reinforces the level of performance and quality of work that you want them to consistently achieve.

Provide Learning and Development Opportunities Today’s workers --- workers of all ages --- want to feel fulfilled at work. It’s not like it was back in the days when mass production on the factory floor had workers turning lug-nuts. Current work environments are more complex and workers want to be allowed and encouraged to learn new things and to have opportunities to grow their skill sets.

Here’s something that is critically important to understand: Good workers don’t leave companies . . . they leave poor managers! If you’re not Listening, Communicating, Recognizing and offering Opportunities, you may just fall into the “poor manager” bucket. That’s not good for you and certainly not in the best interests of your organization since it may result in dis-engaged or only partially engaged employees and higher turnover and less-thanoptimal performance and productivity.

TED SZANIAWSKI Principal, HRGroup, LLC. Contact by email at: ted@hrgrouponline.com Learn more at: www.hrgrouponline.com

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This Is Only A Test Consider a test to see how you’re doing as a manager/supervisor Ask several of your employees to respond to the following six questions (developed by Gallup Leadership Institute) and listen closely to their responses. You may hear some answers that will give you a “call to action” --- an indication of some things that you may wish to implement in order to improve how you are managing your employees:

• Do I know what is expected of me at work?

• Do I have the materials and equipment I need to do my work right?

• Do I have the opportunity to do what I do best every day?

• In the last seven days, have I received recognition or praise for good work?

• Does my supervisor, or someone at work, seem to care about me as a person?

• Is there someone at work who encourages my development?

Bottom Line: Don’t assume that workers need your company more than the company needs them. Good workers know that they can leave --- they have mobility and selfconfidence --- and as the economy picks up and jobs are more readily available, they may quit.

PHOENIX METAL TRADING, INC. Industrial Scrap Specialists OUR MISSION: Our mission at Phoenix Metal Trading is to provide the best service at a fair price and to continually improve our company to be a leader in our industry.

EPA and ADEQ Environmental Compliance We Purchase All Types of Scrap:

Copper Brass Aluminum Steel Stainless Steel

Titanium Plastic Cardboard Nickel and Cobalt Alloys

Final Thought:

“Workers have to be treated and managed as volunteers . . .”

State of the Art Fleet and Plant Equipment Never a charge for pickup

-Peter Drucker, Management Consultant

MARGARET JACOBY, SPHR President, MJ Management Solutions, Inc. Contact by email at: margaret@mjms.net Learn more at: www.mjms.net

602-257-4660 www.phxmtl.com SCRAP METAL RECYCLING SINCE 1989 • ATMA MEMBER

PARTICIPATE. SPEAK OUT. LEAD.

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NTMA EXCLUSIVE

Oil Barron Bulletin

ASK ABOUT SPECIAL RATES FOR NTMA MEMBERS!

SPECIAL ADVERTISING FEATURE

VOLUME 9:

Got Foam?

by BRETT “THE COOLANT GUY” REYNOLDS, CMFS

So you have decided to go out and purchase a brand new metal removal fluid for your shop. After filling your machine, expectations are high! Good cutting performance, machine cleanliness and bio-stability are all promised by the metalworking fluid manufacturer. So you go to fire up the machine and decide try out that new high pressure pump you just paid a bundle for, and presto! Foam all over the shop floor! Great, now what do I do? Well… there are a few things you can do; first you can add anti-foam additives to help control the foam, or you can make up your coolant with hard water if you are lucky or unlucky enough to have it available. You could even reduce the pressure on that nifty new high pressure coolant system; but that tends to negate the whole purpose of having high pressure doesn’t it? So what is causing the problem, why do coolants foam? Well… there are numerous reasons that can lead to metalworking fluids foaming, let’s talk about a few of them.

• Air entrained into the fluid can cause the coolant pumps to cavitate and create additional foam, which leads to even more foam the longer the coolant pumps continue to run.

• Higher coolant pressures (1000psi plus), pushing fluid through small tool orifices with high RPM spindles can entrain air into the fluid (High pressure/ low volume).

• Inadequate sump volume and/or poor sump design can lead to foam build up.

• High cutting fluid turn over, with inadequate dwell/rest time for the fluid to release entrained air.

Call 602.388.5752 today and become a part of Precision News - the most informative and comprehensive tooling and machining industry magazine!

• High fluid temperature; the more the fluids temperature increase so does its potential to foam.

• Excessive coolant concentration; running the coolant concentration higher that the manufacturer recommends.

THIS ISSU E: Your

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Secret Weap on / Process .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . .

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So as you can see there are many possibilities for foam. So the big question is… what can I do about it? Other than adding anti-foam additions to the sump, which can be costly measure, the best solution is to purchase a metal removal fluid which is designed for high pressure coolant systems. So… got foam? Give your coolant representative a call and get the right fluid for the job.

ION . EVEN .

TS DIREC TORY

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p.14

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LLA: Doing bus the custominess with helped you ers who grow p. 12

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THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

BRETT REYNOLDS, “The Coolant Guy” works for Blaser Swisslube Inc. If you would like more useful information regarding metalworking fluids, or would like to find out more information about Blaser metalworking fluid products, please contact Brett at 801.722.4095 or via email at b.reynolds@blaser.com. The Oil Baron Bulletin is not affiliated with Blaser Swisslube Inc. or its subsidiaries.

Learn more at: www.blaser.com and theoilbaronbulletin@blogspot.com

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THE COOLANT. We are here to help you boost your productivity.

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Feature Story // PrecisionNews

On June 6, 1944, a date better known as D-Day, the Western Allies launched the largest amphibious invasion in the history of the World. This “Great Crusade” was focused on one task – eliminating the Nazi tyranny in Europe. Did this focus and effort pay off? Less than a year after D-Day, Nazi Germany delivered their unconditional surrender to the Allies, thus liberating Europe from Nazi rule.

WAGING WAR TO LIBERATE CAPACITY

BY BRENT TERHAAR

Manufacturing companies need to embark on their own “Great Crusade”. You’re not storming the beaches of Normandy, however, you need to wage war on your own shops. Unlike the young service men and women who were so bravely committed in their quest to liberate Europe, your “Great Crusade” needs to focus on ways to liberate your untapped production capacity and the economic potential of your business. What is the reward for winning this battle?

Reduced business risk and economic prosperity the likes of which very few jobs shops will realize.

• Understanding and managing capacity • Evaluating estimating and cost accounting systems

• Walk the floor – For the next week, walk the floor on the hour and count how many machines are actually cutting parts. It is not uncommon for a job shop with a high mix of parts to be running significant overtime, yet only 50% to 60% of the machine tools on the floor are cutting parts at the same time. There are reasons for this and solutions to this. Don’t waste the valuable human capital and skilled labor on busy work. Being busy and being productive are two very different things.

U N D E R STA N D I N G A N D M A N A G I N G C A PA C I T Y Business owners are quick to invest in new equipment to address perceived capacity constraints. Increased spindle speed, automated loading, and enhanced machining capabilities are all attractive reasons to buy new equipment. In some cases, it makes sense to reinvest. However, most manufacturers today are sitting on untapped capacity on their floor. Before buying more capacity, take a hard look at ways to maximize every hour available using your current people and equipment. This may not make the machine salesmen happy, but it will drop significant dollars to your bottom line and reduce the business risk of increased overhead the next time sales get soft.

• Look at the schedule – It is not uncommon in shops that are experiencing perceived capacity constraints to be late on jobs or constantly expediting while at the same time building well ahead of schedule. The root cause is often batch processing of certain parts to leverage setups and be more ‘efficient’. This common practice will result in robbing current capacity to meet future demand. Shops that practice this habit will spend more on capital equipment and floor space and be far less profitable over time. The need to leverage setups is the symptom – the setup itself and scheduling approach is the problem. The good news? The vast majority of setup time reduction efforts do not require capital investment to yield significant results.

There are two important fronts you should focus on as you develop your battle plan:

12

The pushback can be significant when discussing this concept. ‘My people are really busy’, ‘The only way I can win new work is with faster spindle speed’, ‘I can reduce setups or operations with this equipment’ are just a few of the objections you typically hear. How do you know if these arguments hold water? Take these few simple steps and you might see some enlightening results:

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Most manufacturers today are sitting on untapped capacity on their floor.

• Measure it – As simple as it sounds, very few shops actively measure spindle time versus available capacity. You don’t need fancy software or report writers to get at this information. There are very simple visual tools that can be used at each workstation to give you the information you need.

Information is power – knowing what is actually happening is the first step to improving performance.

E V A L U ATI N G E STI M ATI N G A N D C O ST A C C O U N TI N G SY STE M S Pricing is less than half of the profitability equation, yet typically the exclusive tool used by shop owners to drive changes in profitability.

If you examine two job shops that compete against each other with the same customers and similar pricing, their profitability can be worlds apart. Why? The difference usually comes down to the level of excess capacity in each shop. Asset utilization, combined with good pricing decisions, is what drives profitability in a job shop – period.

Most estimating and job costing systems do not model this well. Be cautious in your reliance of financial metrics generated by these systems.

Many times, the information generated from these systems can be misleading and result in actions that are counter-productive to the health of your business.

The bottom line is this - pricing will vary by market and by type of work. Estimating using cost information can lead to poor decision making. The idea of improving profitability by increasing pricing or focusing only on high margin work usually results in just the opposite.

It takes a good mix of complex, highly engineered work combined with higher volume or repetitive work to fill your capacity and achieve the right returns in contract manufacturing. continued on page 24

Feature Story // PrecisionNews

BY SEAN HOLT, AEROSPACE APPLICATION MANAGER, SANDVIK COROMANT US

EXPERTISE AND MANUFACTURING METHODS FOR ADVANCED AEROSPACE ENGINE PRODUCTION

AEROSPACE IS ONE OF THE MOST TECHNICALLY DEMANDING INDUSTRIES IN THE WORLD. With increasingly difficult-to-machine materials, complex geometries, exacting specifications and constant time restraints, the manufacture of aerospace parts has many limitations; still, production rates are set to increase.

Total component expertise is the key to success in such a competitive manufacturing landscape. These and other challenges dictate a production environment with complicated four- and five-axis machines driven by CAM solutions. Choosing an industry partner that has the experience and resources to support all aspects of individual component development, including both the physical tool and the processing knowledge is crucial in this highly competitive industry.

Total solution support should encompass spindle interface, tool holder selection, programming methods, insert grade and geometry, and surface integrity – all of the parameters that will produce the highest-quality parts. Aligning and optimizing these factors will help you compete on a global scale.

The aerospace industry specifications, the nature of the materials and the component configurations all create some of the most challenging machining operations. These components are made up of some of the most difficult-to-cut materials and complex shapes, requiring extensive tool reach and the right tool path.

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These high-temperature operations create demands for materials that are harder, stronger, tougher, stiffer and more resistant to corrosion or oxidation, such as nickel alloys, highstrength titanium, high-alloy steels and composites. These materials have much lower machinability than other, more common materials, and require a great deal of processing knowledge. You can optimize machining productivity with the right combination of cutting tools, cutting conditions and machine tools.

Engine components are demanding workpieces due to their complex geometries. They are often extremely large in size, with critical strength and weight restrictions. This is achieved with thin walls, intricate geometries, and complex shapes – all presenting new challenges in machinability.

HERE WE TAKE A LOOK AT THE MACHINING CHALLENGES OF CERTAIN AERO ENGINE COMPONENTS, AND THEN SHOW HOW COMBINING THE LATEST APPLICATION AND PROCESS KNOWLEDGE WITH THE BEST POSSIBLE TOOLING SOLUTIONS CAN BE THE KEY TO SUCCESS.

///Component: TURBINE DISC The turbine disc is a complex turned part machined from difficult alloys such as Inconel 718, Waspalloy and Udimet 720. This component usually features profiled pockets with difficult clearance requirements. ///Tooling Solution: The modular SL70 tooling system Due to tough material, accessibility and productivity, round inserts offer the best method for both roughing and finishing. The large radius of these round inserts means a reduction in the entering angle without reducing the depth of cut, therefore increasing productivity.

The modular SL70 tooling system is designed with blades to fit restricted pocket features without the need for special or modified tools. The range of adapters and blade alternatives for the tool gives it the flexibility to build many different tools from a limited tool inventory. These blades include the required radial and axial clearances for blades reaching deep into angled grooves with highpressure coolant supplied through the tool to the cutting edge. Having built-in dampening for ensuring performance at extended tool reach, these blades turn features in deep grooves often at higher feed rates causing less vibration and increased tool life. In addition, the Coromant Capto interface provides excellent stiffness even in long overhangs and against high cutting forces. ///Application: Trochoidal Turning Trochoidal turning is a productive method for removing material in deep slots and grooves. By breaking the part into manageable pieces, trochoidal turning uses a roll-into-cut approach to reduce engagement on the insert. When producing grooves by turning, chip evacuation is always a critical factor. Because the material is being highly sheared, generating narrow chips is often more demanding, and requires a balance between the most suitable insert geometry and feed rate. It also maximizes straight line movements, which enables max feed rates for optimal productivity. This approach involves changing the cutting direction at the end of every pass. Alternating the direction of the cut makes the insert last longer because it never leaves the material. Trochoidal turning minimizes chip jamming, vibration tendencies and residual stress, and is well suited to remove a large amount of material efficiently and securely. ///Component: TURBINE CASING The turbine casing is typically machined from challenging materials such as Inconel or Waspalloy. The structure of these components

poses significant problems during milling due to the large amounts of material that must be removed. These components require a significant number of mill-turn and 5 axis operations to remove large amounts of material, resulting in very long cycle times. ///Tooling Solution: Ceramic Grade CC6060 Ceramic cutting tools have a much higher resistance to heat than carbide tools and have low reactivity with workpiece materials.

Ceramic grade CC6060 is optimized for large-diameter components with long cutting lengths that allow it to cope with higher feed rates and longer continuous cuts, making it ideal for milling operations on turbine casing components. Excellent resistance to notch wear allows for higher depth of cut than other ceramic grades, for optimal productivity in medium to roughing operations in first- and intermediate-stage machining. The grade is also the first choice for pocketing and profiling operations. ///Application: Ceramic turn milling between bosses On average 75% of the total turbine casing machining is spent on removing material using mill-turn operations between the bosses.

Mill-turning involves cutting with a rotating milling tool while the workpiece is also rotating. This operation is ideal for turned parts that require high metal removal and have obstructions such as ignition bosses. Turbine casing bosses are located around its cylindrical perimeter. Turn-milling with ceramic inserts reduces notch wear, increases feed rates and achieves higher metal-removal rates – it is the most productive way to remove material between bosses. ///Component: FAN CASING These large titanium components have low machinability, and feature complex shapes and thin walls. But unlike the nickel alloys, ceramic cannot be applied. This makes productive metal removal challenging. Keeping the cutting temperature low is essential when machining this component. ///Tooling Solution: Vertical Turning Lathes (VTL) To achieve the unique combination of temperature control and superior component accuracy, machining should be done on a vertical turning lathe. VTLs by design need to have either manual quickchange or automatic tool-change. Particularly with automated tool changing, long chips present a high risk to component damage.

However, with the coolant piped through the ram directly to the spindle, there are no coolant pressure restrictions, improving cutting conditions and process security.

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EXPERTISE AND MANUFACTURING METHODS FOR ADVANCED AEROSPACE ENGINE PRODUCTION continued from page 15

///Application: High-pressure coolant (HPC) One key to success in the machining of fan casings is the use of highpressure coolant. HPC improves chip control and reduces the temperature in the cutting zone. Chip control is more secure, ensuring evacuation from tight pockets and grooves. This guarantees that the chips won’t wrap around tools or drag across the component. Effectively cooling the machining zone will help minimize tool wear, prolong tool life by up to 50%, and provide a potential for 20% higher cutting speed.

While the machine’s pump can provide the pressure, getting the coolant to the right place is the responsibility of the tool. Making use of highprecision nozzles, coolant is directed to the main cutting edge. This effective application can help evenly distribute and reduce heat during machining. ///Components: SPOOL AND FAN DISC The engine spool and fan disc present two of the same challenging features: deep internal chambers and tulip grooves. ///Tooling Solution: Dampened Blades Using dampened blades on these components will help control the common challenges of vibration and chip removal. Dampened blades are designed with a patented dampening device, for a more productive and secure process. This allows depth of cut to be 4 times greater than without dampening. These slender tools can access and effectively remove chips from the deep internal chambers for an extremely secure machining process. ///Application: Vibration-free turning in deep grooves Deep grooves present one of the most challenging features of these components. Deep grooving on spool applications can result in chip buildup in the pocket and lead to insert failure. For a more secure process, use vibration-free turning. Oval serration blades provide the best stability and accessibility, while 3 to 10 inch high blades allow for the best coolant delivery to assist in chip removal. ///Component: SHAFT The engine shaft is made from high-alloy steel or inconel; its primary machining challenge is the length and internal features of the component. The biggest development in shaft manufacturing has come from the evolution of the multitask machine. ///Tooling Solution: Silent Tool dampened boring bar Because of this component’s length, vibration can be a common problem during boring applications. Vibrations may cause problems such as bad surface texture, insufficient accuracy, loss of productivity, increased insert and machine tool wear, and noise. Silent Tool boring bars have a built-in dampening mechanism, making it possible to machine without vibration and still maintain good productivity and close tolerances.

IN TODAY’S GLOBAL MANUFACTURING ENVIRONMENT, THE DEMANDS OF WORKING WITH CRITICAL PARTS ON HIGH VALUE MACHINE TOOLS CAN BE EXCEPTIONALLY TRICKY WITHOUT THE RIGHT PROCESS KNOWLEDGE AND BEST-PRACTICE MACHINING STRATEGIES. instability. The only cutting force component that does not need to be counteracted with support is the axial force. However, the radial force bends the tool out and away from the cutting zone in such a way that the tolerance and diameter of the hole is negatively affected. By applying increased axial load and radial load, the present frequency or a silent tool dampened bar absorbs any vibration in cut, improves chip control, and can run at increased cutting data. ///Component: BLISK/IMPELLOR Blisks are becoming more common in engines’ high-pressure compressors due to the advantages of weight, efficiency and servicing.

This component has narrow pockets, slots, and deep complex geometries, more so than other components, that often requires 5-axis machining movements.

Key factors to machining success include five-axis machinery with good simultaneous dynamics, optimized software and a proper tooling selection. ///Tooling Solution: Plura 50-degree relieved shank When roughing a slot in inconel, the Plura 50-degree relieved shank, with a bull-nose design, is optimized for axial depth of cut twice the diameter and low radial cuts, for a high-speed process. ///Application: Trochoidal Milling Trochoidal milling is a high-speed machining technique for removing material in scallops and pockets. This application uses a roll-in entry and exit from the cut to control the arc of engagement, for higher productivity and improved tool life. Trochoidal milling enables high table feeds in combination with low cutting forces; generating low cutting edge and workpiece temperatures. This method utilizes the technique of chip thinning, resulting in less heat build-up in the chips and allowing the tool to run in at full depth. In addition, this can also cut down the number of passes. Trochoidal milling is not always the fastest method for roughing in slots, but does result in better tool life, better predictability, and a better quality part.

In today’s global manufacturing environment, the demands of working with critical parts on high value machine tools can be exceptionally tricky without the right process knowledge and best-practice machining strategies. Having the right resources to support you on all levels will keep you competitive globally with process improvements, increased productivity, quality consistency, cost reduction and process security.

SEAN HOLT is the Aerospace Application Manager at Sandvik Coromant U.S. Visit www.aero-knowledge.com for these and other aerospace component solutions from Sandvik Coromant. Learn more about trochoidal turning, trochoidal milling, and other CAM programming tips at www.MyYellowCoat.com/cam-tips

///Application: Boring in deep cavities and holes Boring in deep holes can lead to poor surface finish and vibration due to

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*Previously published in the SME Aerospace Manufacturing Yearbook, Sept. 2011.

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Shop Floor NEWS FROM THE FRONT LINES

LockOut / TagOut Small steps can make a big impact in your safety program from THE ATMA SAFETY COMMITTEE

A fatalgram from the Mine Safety and Health Administration reminded the mining industry on March 30, 2012 about proper lock out/tag out procedure.

A 37 year old electrician was fatally electrocuted while making the final electrical connections for a replacement cable reel.

The disconnect device was not properly locked out and it is suspected that the 995 volt leads were live when he fyi: Workers injured on touched them. the job from exposure to hazardous energy lose an Lock out/tag out (aka LOTO) is the average of 24 workdays for recuperation. procedure and practice of - OSHA preventing equipment from becoming energized accidentally—particularly during repairs or maintenance. A simple LOTO plan will go a long way toward protecting yourself and your employees from accidental injury.

your lock or your key to anyone. Lock out the equipment yourself; don’t rely on someone else to do it.

Start the equipment to release stored energy and make sure all power is off.

Inform co-workers in the area that the equipment is down for repairs.

Do not remove a lock or tag unless you are the person who originally attached it.

When equipment is ready to go back into service: Make sure all tools have been removed from the area.

Locks and tags are removed.

Proper Lockout/Tagout procedures include the following:

Employees are clear before the equipment is re-started.

Check all power sources. Have a work plan citing all power sources of equipment.

Shut down the equipment. Make sure all switches are in the OFF position.

If you would like to put together a Lockout/ Tagout plan and have some questions, please contact the ATMA safety committee.

Or come to a meeting. We can help.

Disconnect the power. Shut off at the circuit breaker or the line valve—never just the on/off switch.

Learn more at: www.osha.gov and www.arizonatooling.org

A typical LOTO kit

Use your own lock. Tag the lock the employee’s name and the date. Don’t lend

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ATMA_0202_FINAL_Layout 1 6/18/11 7:07 AM Page 32

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THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

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PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

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Jim Carpenter

Kimberly Gear & Spline, Inc.

602-437-3085

Safety Team Meeting > 5/15 @ 11:30am (MicroTronics)

Don Kammerzell

K-zell Metals, Iinc.

602-232-5882

Matt Kalina

LAI International, Inc

480-348-5942

Membership/Mktng & Program Mtng > 5/17 @ 4:00pm Fiesta Inn/Raintree Room 4:00pm - 5:30pm

ATMA EVENTS IN MAY/JUNE 2012

Ernest Apodaca

Layke, Inc.

602-272-2654

John Lewis

Lewis Aerospace

623-581-0764

Michael C. Majercak, Jr.

Majer Precision

480-777-8222

Edward Wenz

MarZee, Inc.

602-269-5801

Arle Rawlings

Mastercraft Mold, Inc.

602-484-4520

Paul Clark

Metal Spinning Solutions, Inc.

480-899-0939

Jeff Meade

Metalcraft

480-967-4889

Joe Tripi

Micropulse West

602-438-9770

Robert Marusiak

Micro-Tronics, Inc.

602-437-8995

Board of Directors Mtng > 6/19 @ 4:00pm (MicroTronics)

Mark Lashinske

Modern Industries, Inc.

602-267-7248

Dinner Meeting > 6/27; Guests: Mayors Greg Stanton & Scott Smith; Jeremy Bout from “The Edge Factor” TV Show

Phillip LoCascio

National Aviation

480-966-1097

John Anglin

Nelson Engineering

602-273-7114

Dante Fierros

Nichols Precision

480-804-0593

Greg Chambers

Noranco Jet Processing

623-869-6749

Board of Directors Mtng > 5/22 @ 4:00pm (MicroTronics) Dinner Meeting > 5/30 Keynote Scott Walker, President Mitsui Seiki Precision News Articles/Ads Due > 6/11 Membership/Mktng & Program Mtng > 6/14 @ 4:00pm Fiesta Inn/Raintree Room 4:00pm - 5:30pm

For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

may/june 2012

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MARK YOUR CALENDAR WITH THESE

PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

UPCOMING ATMA EVENTS! MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS!

MAY 5/11 Safety Meeting (General Safety Standards) 11:30 at Phoenix Heat Treat, 2450 W. Mohave, Phoenix

MEMBER LISTINGS

5/12MAY Combined Membership, Marketing & Program Meeting 11:30-1:00 atSafety Foresight Technologies, 5/11 Safety Meeting (General Standards) 11:30 at Phoenix Heat Treat, 2450 W. Mohave, Phoenix 1301 W. Geneva, Tempe

ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

ASSOCIATE MEMBERS

5/12 Combined Membership, Marketing & Program

5/17 Board of Directors Meeting 11:30-1:00 Meeting at Foresight11:30-1:00 Technologies,at Micro-Tronics, 2905 S. Potter, Tempe, 85282 1301 W. Geneva, Tempe

Linda Daly

A 2 Z Metalworker

602.412.7696

Richard Short

Adams Machinery

480.968.3711

Greg Whelan

Arizona CNC Equipment

480.615.6353

John Anderson

ATS Industrial

Isaac Bunney

Bank of America

JUNE Airport Hilton, 2435 S. 47th Street, Phoenix JUNE Safety Meeting (General Safety Standards) 11:30 602.276.7707 MARK YOUR CALENDAR 6/08 WITH THESE 6/08 Safety Meeting (General Safety 11:30 at Leavitt Group, 919 N. 1stStandards) St., Phoenix 602.523.2044

Howie Basuk

Barry Metals

602.484.7186

Board of Directors Meeting 5:00-8:00pm 11:30-1:00 at at Phoenix 5/255/17 General Dinner Meeting Micro-Tronics, S. Potter, Tempe, 85282 Airport Hilton,2905 2435 S. 47th Street, Phoenix

Get Turned-On to the ATMA! Chris Mignella at: UPCOMINGContact ExecutiveDirector@arizonatooling.org ATMA EVENTS! 5/25 General Dinner Meeting 5:00-8:00pm at Phoenix

at Leavitt Group, 919 N. 1st St., Phoenix

6/09 Combined Membership, Marketing & Program 6/09 Combined Membership, Marketing & Program Meeting Foresight Technologies, Meeting11:30-1:00 11:30-1:00 atat Foresight Technologies, 1301 W.W.Geneva, Tempe 1301 Geneva, Tempe

Marc Bissell

CadCam/Geometric

480.222.2242

Steve Blok

ChemResearch Co., Inc.

602.253.4175

Kerry Vance

Consolidated Resources

MAY 623.931.5009

Cindy Stewart

Creative Promotions

6/29 Standards) General Meeting AirportDinner Hilton, 2435 S. 47th5:00-8:00pm Street, Phoenixat Phoenix 5/11 Safety Meeting (General Safety 11:30 480.839.9511

Lou Gallo

D D i - Solidworks

602.241.0900

Randy Flores

D&R Machinery

480.775.6462

Steve Warner

EMJ Metals

5/12 Combined Membership, Marketing & Program TO OUR 2012 ATMA VALUED Meeting 11:30-1:00 at Foresight Technologies, 602.272.0461 1301 W. Geneva, Tempe

Mickey Gartman

Gartman Technical Services, Inc.

602.788.8121 5/17 Board of Directors Meeting 11:30-1:00 at

Jackie Bergman

HUB International

Micro-Tronics, 2905 S. Potter, Tempe, 85282 602.749.4190

David Cohen

Industrial Metal Supply

5/25 General Dinner Meeting 5:00-8:00pm at Phoenix 602.454.1500

Tim Kloenne

Klontech Industrial Sales

480.948.1871

Barry Armstrong

L.A. Specialties

602.269.7612

Board Directors Meeting 11:30-1:00 at 6/216/21 Board ofofDirectors Meeting 11:30-1:00 at Micro-Tronics, 2905 S. Potter, Tempe, 85282 Micro-Tronics, 2905 S. Potter, Tempe, 85282 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix

2435 S. 47th Street, Phoenix at Phoenix HeatMANY Treat, 2450THANKS W. Airport Mohave,Hilton, Phoenix

Airport Hilton, 2435 S. 47th Street, Phoenix

David Hopkins

CliftonLarsonAllen, LLP

JUNE 6/08 Safety Meeting (General Safety Standards) 11:30 480.615.2300 at Leavitt Group, 919 N. 1st St., Phoenix

Bob Von Fleckinger

Leavitt Group

602.264.0566 6/09 Combined Membership, Marketing & Program

Meeting 11:30-1:00 at Foresight Technologies, 602.431.8300 1301 W. Geneva, Tempe

Jeff Trimble

Magnum Precision Machines

David Gundersen

Makino, Inc.

Michael Biesk

Marshall Tool

602.269.6295 Micro-Tronics, 2905 S. Potter, Tempe, 85282

Thomas Moore

Moore Tool & Equipment

602.455.8904 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix

Glen Zachman

North-South Machinery

Airport Hilton, 2435 S. 47th Street, Phoenix 602.466.2556

Pete Hushek

Phoenix Heat Treating

602.258.7751

Scott Sherman

Phoenix Metal Trading

602.257.4660

Arlene Helt

Ryerson-Phoenix

602.455.3386

Ron Swartzbaugh

S&S Machinery

602.714.0116

Jane Rousculp

Samuel Aerospace Metals

602.721.0176

Frank Encinas

Semiray

602.275.1917

Russ Kurzawski

Star Metal Fluids LLC

602.256.2092

David Senkfor

Top Gun Consulting

602.510.5998

602.228.0347

John Drain

Tornquist Machinery Co.

602.470.0334

TW Metals

602.864.0014

Doug Pratt

Ulbrich Stainless Steel & Spec.

203.234.3464

Joseph Velez

Law Office of Velez

480.710.5079

Daniel Franks

Wells Fargo Bank

602.522.7805

ARIZONA SPONSOR MEMBERS Greg Kolton

Bank of Arizona

Jeff Anderson

National Bank of Arizona

623.872.2546

Jackie Bergman

HUB International

602.749.4190

480.459.2826

Bennet Cromer

Federated Insurance

501.952.9391

Jon Gale

CliftonLarsonAllen, LLP

480.615.2300

Ward Hickey

Heritage Bank

602.852.3462

David Pettycrew

Republic Indemnity

602.242.4602

Steve Piotter

MSC Industrial Tool

480.755.0415

PrecisionNews

arizonatooling.org

MANY THANKS

TO OUR 2011 ATMA MANY THAN VALUED SPONSORS!

TO OUR 2011 ATM VALUED SPONSOR

6/21 Board of Directors Meeting 11:30-1:00 at

Greg Burke

22

SPONSORS:

may/june 2012

MANY THANKS TO OUR 2011 ATMA VALUED SPONSORS!

MARK YOUR CALENDAR WITH THESE Welcome!

UPCOMINGConsolidated Resources, ATMA EVENTS! " ! % !

Inc.

NEW REGULAR AND ASSOCIATE MEMBERS

C & W Manufacturing Aerospace Contacts, LLC Misty Curry Sal Kielbus 4334 E. Winslow Ave. Southern Ave. 560 W. MAY AZ 8504011:30 Tempe, AZ Safety Meeting (GeneralPhoenix, Safety Standards) 5/1185282 602.437.2929 ph: 480.967.1025 at Phoenix Heat Treat, ph: 2450 W. Mohave, Phoenix & " " sal@acllcaz.com 5/12 Combined Membership,mistycurry@qwestoffice.net Marketing & Program www.aerospacecontactsllc.com & Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe & ! !

BoardInc. of Directors Meeting 11:30-1:00 atTube TMA& Precision Eclipse5/17 Carbide,

Micro-Tronics, 2905 S. Todd Potter, Tempe, 85282 Diana Buchanon-Lovett &Aaronson

8951 Tuckey 526 E. Juanita Ave. Suite #8 Meeting 5/25 General Dinner 5:00-8:00pm at Lane Phoenix & W. ! " AZPhoenix 85305 Mesa, AZ 85204 Airport Hilton, 2435 S.Glendale, 47th Street, & % ph: 623.221.4922 ph: 480.214.3719 JUNE tmaprecision@hotmail.com diana@eclipsecarbide.com 6/08 Safety Meeting (General Safety Standards) 11:30 www.eclipsecarbide.com at Leavitt Group, 919 N. 1st St., Phoenix

Providing precision machining and fabricating of diverse parts and assemblies Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries

& Our Quality System is AS9100 B Compliant & & Equipment !

Capacities range up to HS-4R HAAS 4-Axis Horizontal Milling Center @ 150� x 66� x 48� and &

Ikegai VTL CNC Lathe @ Ă˜ 55â€? Diameter & Centerless Grinding Capacities ranges from & !

! ! " ! Ă˜1/8â€? up to Ă˜1-1/2â€? in Lengths up to 14’ long and & " Ă˜1-1/2â€? to Ă˜ 3â€?

RD With Weight Maximum of 50#

Dynamic Machine and Fabrication Corp. and Dynamic Centerless # Grinding % 3845 E. Winslow Ave., Phoenix, AZ 85040

6/09 Combined Membership, Marketing & Program Noranco Jet Processing Meeting 11:30-1:00 at CadCam/Geometric Foresight Technologies, Marc Bissell Greg Chambers 1301 W. Geneva, Tempe 15974 N. 77th St. #103 2660 W. Quail Ave. 6/21 Board of Directors Meeting 11:30-1:00 at www.

AZ85282 85260 Phoenix, AZ 85027 Micro-Tronics, 2905 S. Scottsdale, Potter, Tempe, ph: 480.222.2242 ph: 623.869.6749 x126 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix Marc.bissell@geometricglobal.com greg.chambers@noranco.com Call Kerry 623.931.5009 Airport Hilton, 2435 S. 47th Street, Phoenix www.geometricglobal.com www.noranco.com % ! " (Associate Member)

(602) 437-0339 ! "

(602) 437-8947

fax !" !! #

dynamic-machine % .com

$

$$$ ! "

MANY THANKS TO OUR 2011 ATMA VALUED SPONSORS!

arizonatooling.org / 23

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Feature Story // PrecisionNews

WAGING WAR TO LIBERATE CAPACITY continued from page 13

Estimating using cost information can lead to poor decision making.

I N S U M MARY Companies need to get creative in finding ways to liberate capacity in their shops. Taking full advantage of using excess capacity before extending dollars to invest in new equipment should be a top priority in your business. Thinking beyond your normal course of business may open your eyes to new opportunities. Companies that do this see dramatic improvements in profitability. Taking advantage of the fixed infrastructure in your shop will lead to a more profitable business.

While it’s nowhere near the event that D-Day was, liberating capacity in your shop is no small battle. Although it took less than 12 months to liberate Europe during World War II, the planning, effort, and execution of this campaign was daunting. Don’t underestimate the effort and change necessary to tackle your capacity opportunities. Focus on doing more with what you have.

Get creative on figuring out ways to free up capacity. Exhaust your current capabilities before investing in new equipment.

While your results may not be as significant as freeing a continent from tyrannical rule, your efforts will help you win the battle of improving profitability and reducing risk in your business.

BRENT TERHAAR is a Partner in the Manufacturing and Distribution group of CliftonLarsonAllen. Brent can be reached at 888.529.2648 or brent.terhaar@cliftonlarsonallen.com.

Learn more at: www.cliftonlarsonallen.com

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PrecisionNews // NTMA -SAN DIEGO CHAPTER

MEMBER LISTINGS

SAN DIEGO CHAPTER 2012 BOARD OF DIRECTORS President TONY MARTINDALE Martindale Manufacturing Vice President and Treasurer HEATHER RUSSELL K-Tech Machine Secretary SEAN TILLET Alphatec Spine Membership MIKE BROWN Computer Integrated Machining Past President MELINDA COLDWELL Cornerstone Machining, Inc.

BOARD MEMBERS Education Board Member John Riego de Dios Construction Tech Academy Member at Large Cliff Manzke Manzke Machine, Inc.

REGULAR MEMBERS Todd C. Lawson

Academy Machine Products

760.439.0109

Jodi Deane

Advanced Maching and Tooling

858.486.9050

Steve Doda*

Aerotek Commercial Staffing

619.278.3014

David Stella*

Aerotek Commercial Staffing

619.278.3014

Abhay Vijayan

Alphatec Spine

760.494.6774

Peter Neville

B&H Tool Company Inc.

800.272.8878

Lyle Anderson

C&H Machine and EDM Services

760.746.6459

Margarita Brear

Compucraft Industries, Inc.

619.448.0787

Michael J. Brown

Computer Integrated Mach., Inc.

619.596.9246

Melinda Coldwell

Cornerstone Machining, Inc.

760.727.5228

Erich Wilms

Diversified Tool & Die

760.598.9100

Alex Fima

Directed Mfg.

512.355.1360

Donovan Weber

Forecast 3D

760.929.9380

Andrew Allen

Henry Machine, Inc.

760.744.8482

Dora E. Tuza

I-Source Technical Services, Inc.

949.453.1500

Jim Piel

J I Machine Company, Inc.

858.695.1787

Joel Schuman

JS Manufacturing

760.940.1322

Heather Russell

K-Tech Machine, Inc.

760.471.9262

Cliff Manzke

Manzke Machine, Inc.

760.504.6875

Russell Wells Sr.

MarLee Manufacturing, Inc.

909.390.3222

Tony Martindale

Martindale Manufacturing Co.

760.744.3078

Mark Rottele

Roettele Industries

909.606.8252

Scott Cormony

Waterjet West, Inc.

760.471.2600

Hernan Luis y Prado

Workshops for Warriors

619.550.1620

Steve Grangetto

5th Axis

858.505.0432

*National Associate Members

FOUNDING PARTNERS OUR MISSION “To form an alliance within the San Diego region of the local machining and tool industry and to foster mutual success through education, technology, opportunity sharing and act as one voice with the government and the community.”

NTMA - San Diego Chapter 348 Saratoga Glen Escondido, CA 92025 Phone: 760.419.1393 ntmasandiegochapter.org

26

PrecisionNews

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may/june 2012

Glenn Van Noy

Champion Risk and Insurance Services

760.419.1393

Dave Stanton

Digital Dimensions, Inc.

858.279.2557

Jeff Schwen

East County Internet Marketing

619.315.5604

Gail Houser

National Tooling & Machining Assoc.

602.758.6912

Mark Selway

Selway Machine Tool Company

888.735.9290

NTMA San Diego Chapter UPCOMING EVENTS Speaker: Greg Koehler - Human Resource Law May 24, 2012 The Joe Martin Foundation Museum and Machine Shop Facility June 21, 2012

PrecisionNews // NTMA INITIATIVES

How Can NTMA Help You Grow Your Business?

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Profitability grows when revenue increases and costs are controlled.

NTMA can help you with both.

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Though most of our members are small- to medium-sized companies, the power of the association can help you do business like a large corporation.

REVENUE GROWTH â&#x20AC;˘ We organize regular business-to-business purchasing fairs, designed to operate like speed dating for suppliers. We invite 100 or more buyers from large companies and then give you opportunities to briefly pitch your products and services. As a result attendees leave with good contacts and solid leads, leading to increased business. Companies have been awarded millions of dollars in contracts as a direct result of these events. â&#x20AC;˘ We offer a program called Members First, designed to help members turn to each other to meet needs. Perhaps your next customer is an NTMA peer? Or perhaps an NTMA member would make an excellent vendor for you? Members First helps make the connections.

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â&#x20AC;˘ By interacting with fellow members in your local chapter, you may discover new business opportunities, or ways to work together with peers to increase business or market yourselves cooperatively.

COST CONTROL â&#x20AC;˘ We offer discount programs with several large suppliers (including Grainger, UPS and Yellow Freight), allowing you to leverage NTMAâ&#x20AC;&#x2122;s combined buying power for your own benefit. â&#x20AC;˘ Our business insurance program keeps more money in your pocket by offering a necessary product in a low-overhead, notfor-profit manner.

Our decision resources allow you to be smarter about how you use your resources, resulting in greater efficiencies and lower costs. Learn more at: www.ntma.org/initiatives

WATER-JET CUTTING Providing...Tighter Tolerances / Minimal Machining Table Capacity of 120â&#x20AC;? Wide x 360â&#x20AC;? Long Up to 6â&#x20AC;? Thick Cutting Capacity

HIGH DEFINITION PLASMA BURNING

CONVENTIONAL PLASMA BURNING

NTMA UPCOMING EVENTS

Up to 5/8â&#x20AC;? thk Stainless & 1 1/4â&#x20AC;? thk Carbon Table Capacity of 120â&#x20AC;? Wide x 390â&#x20AC;? Long

Up to 6â&#x20AC;? Thickness Table Capacity of 132â&#x20AC;? Wide x 564â&#x20AC;? Long

NTMA-PMA Legislative Conference > May 8-9, 2012 Location: Washington, DC Visit: www.ntma.org and www.metalworkingadvocate.org

STAINLESS: 304H, 304L, 316L, 317L, 321, 347, 904L, 2205, 2507, 254-SMO, LDX 2101 CARBON: A35, W44, 514, 516-70, 572-50, 588, API-2H-G50 ALUMINUM: 5086, 5454, 6061, 7075, 7050, 2024

Available Products...

Range of Sizes...

THK: 3/16â&#x20AC;? to 6â&#x20AC;?

WIDTH: 48â&#x20AC;? to 120â&#x20AC;?

LENGTHS: 96â&#x20AC;? to 528â&#x20AC;?

NTMA Purchasing Fair > June 13-14, 2012 Location: Suburban Collection Showplace, Novi, MI Visit: www.ntma.org and www.PurchasingFair.com NTMA - Manufacturing Americaâ&#x20AC;&#x2122;s Future

Value Added Services...

LASER CUTTING, POLISHING, GRINDING, HEAT TREATING, SAW CUTTING, FORMING, ROLLING, SHEARING, BEVELING

1-888-726-6385

samuelplate@samuel.com

www.samuel.com A2Z METALWORKER

may/june 2012

arizonatooling.org

â&#x20AC;˘ 47 â&#x20AC;˘ -XO\ $XJ

PrecisionNews

27

Policy Matters TAXATION

NORTH TEXAS CHAPTER 2012 BOARD OF DIRECTORS President TODD ELLARD Manda Machine Company Vice President JEFF SPENCER Clay Precision

“Taxmageddon” continued from page 05

fyi:

By CBO’s estimates, federal revenues in 2011 will be $123 billion (or 6 percent) more than the total revenues recorded two years ago, in 2009.

A recent survey that included - Congressional Budget Office members of the National Tooling and Machining Association showed that 78% of Association members used Bonus Depreciation for equipment purchases, 53% claimed the R&D Tax Credit, and 40% used the Section 199 Domestic Production Activities Deduction. Each of these means something different to each manufacturer but they mean billions in lost annual revenue to the federal government. Which one of your children would you give up? At which point does your company say, yes, for XX rate I will give up YY credit? R&D, LIFO, the Section 199 that reduces your federal effective tax rate by 3.17%?

These are the questions manufacturers must ask themselves, but more importantly, these are the issues politicians need to understand better if they’re going to “fix Washington.”

The clock is ticking. We have now spent over 30 days as the developed world’s highest taxed corporate economy. We cannot afford to spend the next 30 years at a disadvantage because politicians are using taxes for their own election campaigns. “Taxmageddon” is coming to every theatre near you, opening January 1st, unless Washington acts now.

OMAR NASHASHIBI is a founding partner at The Franklin Partnership, LLP, a bi-partisan government relations firm retained by the National Tooling and Machining Association in Washington, D.C. Learn more at: www.franklinpartnership.com

Treasurer BARRON SMITH R.W. Smith Company Chapter Executive LISA ELLARD Trustee WAYNE APPLEGATE Applegate EDM

BOARD MEMBERS Mike Berdan BE Technologies Frank Burch Southern Machine Works Bill Walter Ellison Technologies Micah Embrey CNC Precision/Shamrock-Bolt Don Halsey Halsey Manufacturing Ray Jones MWI, Inc. Pat McCurley Midlothian Insurance Karla Chandler Education Liason

“The Power of Connections” NTMA - North Texas Chapter ntc.ntma@gmail.com phone: 214.536.4970 P.O. Box 541236 Dallas, TX 75354-1236 ntmanorthtexas.org

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PrecisionNews // NTMA -NORTH TEXAS CHAPTER

MEMBER LISTINGS REGULAR MEMBERS

ASSOCIATE MEMBERS

Vincente Chan

Aeroweld Technologies, Inc.

972.247.1189

Larry Ellison

AJR Metalworks, Inc.

214.352.3766

Wade Whistler

A.C.T. Precision Sheet Metal, Inc.

214.678.9114

Tommy Thompson

Bodic Industries

972.840.1015

Wayne Applegate

Applegate EDM, Inc.

972.488.8997

Lewis Lance

Bodycote Heat Treat

817.265.5878

Tony Woodall

AST Waterjet

972.554.0383

Rick Blair

Brook Anco Corporation

585.475.9570

Steve Ingersoll

Bailey Tool & Manufacturing

972.974.8892

Craig van Hamersveld

Campat Machine Tool, Inc.

972.424.4095

Michael Berdan

BE-Technologies, Ltd.

972.242.1853

Claudia Pautz

Castle Metals

972.339.5000

Christi Cameron

Cameron Machine Shop, Inc.

972.235.8876

Chris Simms

Champion Cutting Tool

516.536.8200

Jeff R. Spencer

Clay Precision, Ltd.

903.891.9022

Frank Vance

Frank J Vance

972.255.3925

Gary Embrey

CNC Precision Manufacturing, Inc.

972.241.3931

Norm Williamson

H & O Die Supply, Inc.

214.630.6660

Joseph Lodor

Commerce Grinding Company, Inc.

214.651.1977

Mike Johns

Haas Factory Outlet

972.231.2802

Robert McNamara

Davis Machine & Manufacturing

817.261.7362

Stephen Draper

Hartwig, Inc. -- Texas

972.790.8200

Charles Gilbert

DNS Tool Cutter Grinding, LLC

972.241.5271

Matt Curtis

Hillary Machinery, Inc.

972.578.1515

Dena Kupiec

Elijah Tooling, Inc,

940.591.1340

Rod Zimmerman

Iscar Metals, Inc.

817.258.3200

David Ellis

Ellis Tool & Machine, Inc.

903.546.6540

Randy Joyce

Joyce Engraving Company, Inc.

214.638.1262

Rudy D. Kobus

Expert Tool & Machine, Inc.

972.241.5353

Curtis Dahmen

Kaeser Compressors, Inc.

972.245.9611

Monte Titus

F& R Machine & Repair, Inc.

214.631.4946

Mark S. Holly

Machinists Tools & Supplies

214.631.9390

Gary Fore

Fore Machine Company, Inc.

817.834.6251

Leland McDowell

McDowell Machinery & Supply Co.

214.353.0410

Mike Lee

Fort Worth Centerless Grinding, Inc.

817.293.6787

Pat McCurley

Midlothian Insurance Agency

972.723.5171

Larry Borowski

Greenslade and Company, Inc.

817.870.8888

Nicki Smith

MSC Industrial Supply

817.590.2637

Oscar Guzman

Guzman Manufacturing

972.475.3003

Ray Jones

MWI Inc. / Southwest Division

972.247.3083

David L. Hodgdon

H. H. Mercer, Inc.

972.289.1911

Mike Chadick

North Texas Precision Instrument

817.589.0011

Don Halsey, Jr.

Halsey Engineering & Mfg., Inc.

940.566.3306

Reed Hunt

Reed Hunt Services, Inc.

817.261.4432

Cory Trosper

K & D Tool & Die, Inc.

972.463.4534

Scott Devanna

SB Specialty metals

800.365.1168

Keith Hutchinson

Lancaster Machine Shop

972.227.2868

Bob Severance

Severance Brothers

972.660.7000

Scott Cody

LSC Precision, Inc.

940.482.9700

Alan VanHoozer

Top Tooling of Dallas, Inc.

972.278.8300

Sammy Maddox

Maddox Metal Works, Inc.

214.333.2311

Glenn Wise

Wise Machinery, LLC

817.905.9473

Todd Ellard

Manda Machine Company, Inc.

214.352.5946

David Evans

Manek Equipment, Inc.

903.439.6414

Rodie Woodard

Maximum Industries, Inc.

972.501.9990

Woodrow W. Thompson

Metal Detail, Inc.

214.330.7757

Allen Meyer

Meyer Enterprises

972.353.9791

Eddie Steiner, Jr.

O E M Industries, Inc.

214.330.7271

Morris Padgett

Padgett Machine Tools, Inc.

254.865.9772

Troy Paulus

Paulus Precision Machine, Inc.

940.566.5600

Joe O’Dell

Plano Machine & Instrument, Inc.

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Matt Harrell

Quickturn Technology, Inc.

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Barron Smith

R. W. Smith Company, Inc.

214.748.1699

Mike Embrey

Red Rock Industries

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Frank Burch

Southern Machine Works

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John Anselmi

Sunbelt Plastics Inc.

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Marshall B. Taylor

T & K Machine, Inc.

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MEMBER LISTINGS

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REGULAR MEMBERS 2012 BOARD OF DIRECTORS President DAVE BUTTNER ThermoFusion Vice President GABOR PAULOVITS, JR. G & S Tool Secretary/Treasurer MICHELLE MYHRE R.M. Machining, Inc. Education Director DON CASTILLO FM Industries

OUR MISSION “Our mission is the advancement of machining and manufacturing businesses in the Bay Area, through collective effort and membership alliances.”

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Jimmy Kim

3D Access Industries

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Boris Kesil

ADEM, LLC

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Ron Wegstein

Advanced Grinding, Inc.

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Tim Green

All Weld Machine & Fabrication Co. 408.946.5890

Fred Matter

Alloy Metal Products

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Robert P. Dathe

Benda Tool & Model Works, Inc.

510.741.3170

Tony Castruccio

Custom Gear & Machine

925.455.9985

Angelo Grestoni

D & H Manufacturing Company

510.770.5100

Dan McEachern

Dan McEachern Company

510.532.8228

Frank Dommen

Die & Tool Products Inc.

415.822.2888

Felix Q. Oramas, Jr.

E R C Concepts Company, Inc.

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Don Castillo

FM Industries, Inc.

510.668.1900

Gabor Paulovits, Jr.

G & S Tool Incorporated

510.633.9632

Alan Kalman

Kalman Manufacturing

408.776.7664

DeAnna Godfrey

McNeal Enterprises, Inc.

408.922.7290

Karen Myhre

R.M. Machining, Inc.

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Mark Serpa

Silicon Valley Manufacturing

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David J. Buttner

Thermo-Fusion, Inc.

510.782.7755

Bruce Tschida

Tschida Engineering, Inc.

707.224.4482

Dane Madsen

West Valley Precision, Inc.

408.519.5959

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Zap O Marks, Inc.

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Perry Tool & Research Inc.

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TheTea Leaf

//OPINION //

INSIGHT AND UNDERSTANDING

8.2% …or 11.3%?

Growth forecasts for this year still center near 2.4% after inflation.

Labor Statistics (BLS). The construction sector (down 7,000 jobs) and logging & mining (up 1,000 jobs) were less newsworthy.

by JEFF THREDGOLD, CSP

March employment gains were less than expected, less than exciting, less than worth writing home about and will again pose the question of whether U.S. job creation is about to slow as summer months approach. Such a pattern occurred during the past two years.

The American economy added 120,000 net new jobs during March, sharply below the consensus view of 205,000 net new jobs. The gain was the smallest in five months and was less than half the average gain of the three prior months. In addition, previously reported job gains during January and February were revised higher by only 4,000 jobs, breaking a pattern of sizable upward revisions to prior data that had largely been in place for some time.

Better news saw the nation’s unemployment rate decline from 8.3% in February to 8.2% in March…but NOT for the right reason.

The rate declined only because an estimated 164,000 people, presumably discouraged at the prospect of finding a job, dropped out of the labor force in March.

The household survey, from which the unemployment rate is derived, also reported a decline of 31,000 employed people in March. One lumps various numbers together to arrive at the 8.2% rate.

Much weaker-than-expected employment data in March validated recent views of Federal Reserve Chairman Ben Bernanke that the prior pace of more solid job gains could not be sustained unless and until U.S. economic growth picked up. In a presentation on March 26 (to a room full of economists no less!), Bernanke stated that recent employment gains had been a “welcome development.”

“Still,” he continued, “conditions remain far from normal, as shown, for example, by the high level of long-term unemployment and the fact that jobs and hours worked remain well below pre-crisis peaks.

We cannot yet be sure that the recent pace of improvement in the labor market will be sustained.”

JOB DETAIL The 120,000 net rise in employment, for a change, did not include a major hit to estimated state and local government employment.

The private sector added 121,000 net new jobs in March, led by the addition of 31,000 new jobs in goods production.

Manufacturing continued its promising stretch of new job creation.

The addition of an estimated 37,000 net new jobs in March sees total manufacturing employment up by 470,000 jobs since January 2010, according to the U.S. Department of Labor’s Bureau of

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The nation’s private service providing sector added 90,000 jobs in March, led by the addition of 39,000 net new jobs in leisure & hospitality; 37,000 net new jobs in education & health services; and 31,000 jobs in professional & business services. According to BLS, employment in professional & business services has climbed by 1.4 million jobs since reaching a low point in September 2009. In contrast, the retail trade sector lost an estimated 34,000 jobs in March, the largest monthly decline since October 2009.

8.2%…or 11.3%?

The substantial decline in the nation’s labor participation rate continues to “understate” the painful level of unemployment, when compared to just four years ago. An estimated 66.0% of potential workers were either employed or seeking employment in 2008.

That share in March 2012 was down to 63.8%. Simply applying a 66.0% rate to the March data would suggest an unemployment rate of not 8.2% (as reported)…but a much different 11.3% rate!!

We have noted before that if we could somehow get three million more people to leave the estimated labor force, national politicians could brag of a 6.4% unemployment rate…but does that mean anything? I leave this to your interpretation…

CHALLENGES AHEAD The desire for strong job gains over the balance of the year will be met with significant challenges. Five consecutive sessions of the Dow Jones Industrial Average losing ground validates this view.

The European fiscal situation promises to get worse before it gets better, with the focus now shifting to Spain. In addition, greater scrutiny is now entering new locales such as the Netherlands.

French financial challenges are again raising more eyebrows.

U.S. economic growth has now been positive for 11 straight quarters. That being said, the current economic recovery is the weakest since the 1940s. Growth forecasts for this year still center near 2.4% after inflation…simply pathetic giving the unprecedented and massive amount of fiscal and monetary stimulus at play in the economy.

JEFF THREDGOLD, CSP and Economic Futurist, is author of the Tea Leaf, a free weekly economic and financial newsletter, now in its 37th year. He can be reached at 888-THREDGOLD. Learn more at: www.thredgold.com/tea-leaf

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