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ON THE LEADING EDGE: 2010 ATMA Board of Directors; Upcoming ATMA Events; Latest Technology News; ATMA and AMC: A Partnership for Dynamic Times; Helpful Websites You Should Know

ATMA

The Premier Publication of the Arizona Tooling & Machining Association JANUARY 2010 Issue

PRECISION

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CUTS LIKE A KNIFE!

ATMA Precision is revamped, renewed, and razor sharp UPDATE:

NTMA’s MANUFACTURING

TECHNOLOGY TEAM Take Advantage of Free Webinars in 2010

SOLAR

OPPORTUNITIES Breaking Into the Alternative Energy Field

LEAN IS GREEN (And More Productive)

www.arizonatooling.org The Right Tools. The Right Team. The Right Time.

PLUS Meet the 2010 NTMA Chairman Legislative Update • The CTE Pipeline Latest Local and National News

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CONTENTS in this issue

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24

MAGAZINE

26

p DEPARTMENTS

p

09 ATMA Team Updates 12 Industry News 14 Legislative Update 18 Education Update 20 Technology Update 21 Upcoming NTMA Events 30 Member Listings 32 Upcoming ATMA Events

CONTENTS in every issue

FEATURES

06 President’s Letter

24 Lean IS Green No Marketing Spin Needed The Toyota Production System and lean manufacturing focus on the elimination of wastes, which translates into higher profits.

07 ATMA Board of Directors 16 NTMA News

26 Here Comes the Sun Local Business Seeks to Diversify into Solar Energy One local manufacturer takes on the challenge as municipalities establish alternative energy plants.

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ON THE COVER Advanced, watercooled laser cutters make short work of some of the industry’s hardest metals.

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1301 W Geneva Dr., Tempe, AZ 85282 Tel 480-967-0080 x 101 jhull@foresighttech.net

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VOLUME 1, ISSUE 1 January 2010

The Premier Publication of the Arizona Tooling & Machining Association

GET IT

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RIGHT. Precision Magazine’s readers are key decision makers that you as advertisers and sponsors, want to target. Our readers strive to stay up-to-date on the latest in business, education, legislation, technology, industry news and updates. ey want an edge in a constantly evolving industry, and they find it in Precision Magazine.

MAGAZINE

PRESIDENT Trifon M. Kupanoff, Jr. PUBLISHER Michael A. Kupanoff CREATIVE DIRECTOR Neal McDaniel EDITOR Morgan Benavidez EDITORIAL INTERN Brittany Warren PRODUCTION DESIGNER Theo Tigno CONTRIBUTING WRITERS Milton Ericksen, Dante Fierros, Jim Grosmann, Kevin King, Marcus Osborn, Ph.D., Rob Tracy, Mark Weathers ACCOUNTING MANAGER Dorie Cowan EDITORIAL AND ADVERTISING OFFICE: Precision Magazine 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 Phone: 480.443.7750 • Fax: 480.443.7751 Email: precisionmag@lpimultimedia.com SUBSCRIPTIONS AND BACK ISSUE ORDERS: Call 480.443.7750 or Email: precisionmag@lpimultimedia.com

ACHIEVE BUSINESS SUCCESS THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.

PLEASE SEND ADDRESS CHANGES TO: Precision Magazine 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 Email: precisionmag@lpimultimedia.com

Precision Magazine is published six times per year by LPI Multimedia Inc. Opinions expressed are those of the authors or persons quoted and not necessarily those of LPI Multimedia Inc. While efforts to ensure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content. Publisher assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from the publisher is prohibited. Precision Magazine is the registered trade name of this publication.

Copyright ©2010 by LPI Multimedia Inc. All rights reserved.

arizonatooling.org Precision Magazine is a subsidiary of:

15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 T 480.443.7750 F 480.443.7751 www.lpimultimedia.com

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E S TA B L I S H E D 1 9 9 0

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PRESIDENT’S letter

REVAMPED, RENEWED, AND RAZOR SHARP December 14, 2009 I’m excited to announce another new development for our membership with the ATMA. is month, we are kicking off Precision magazine—the ATMA’s new publication. I’d like to thank Chris Mignella, Dante Fierros, our marketing and membership team and LPI Multimedia, Inc. for all their hard work in making this a reality. is publication will be informative and will represent the ATMA well.

Wow, the last two years as your president have flown past quickly. To quote the Charles Dickens novel A Tale of Two Cities, “It was the best of times, it was the worst of times.” We’ve truly ridden a roller coaster in precision manufacturing. Hopefully we’re at the bottom, climbing our way back out. One thing that has always helped me through both prosperous and difficult times is the relationships I have developed in both the ATMA and the NTMA. As I said on the new website, this year has been a year of transition for the ATMA. e addition of our new Chapter Executive, Chris Mignella, has brought a new perspective to the ATMA. She has been a driving force in both adaptation and change in challenging economic times. Our new partnership with the Arizona Manufacturing Council gives a new voice at the state capitol that we’ve never had before. Our growth of the ATMA summer internship program and our robotics program (NRL) continue to promote manufacturing with our youth and fill the pipeline of future employees. Our marketing and membership team has taken both fresh and innovative approaches to reach out to current, new, and prospective members. e ATMA’s safety team is continually looking for ways to help membership deal with safety around the workplace and the upcoming enforcement issues that OSHA and the government are driving. Finally, our programs team looks for ways to bring to the membership speakers and events that enhance our business, technology, and knowledge of the industry.

Every year, the ATMA looks for ways to offer more services to our members. We also look for more ways to promote manufacturing in the state of Arizona from a customer, legislative, and educational standpoint. Every year we get better. I’m very excited about the incoming officers and the direction we’re headed. Our incoming president, Mark Weathers, has a great vision on goal alignment and getting our chapter to the next level. ank you for all your support for the last two years. It’s been a privilege and honor being your president.

John Lewis President ATMA

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ATMA PRECISION 2010 ATMA Board of Directors President Mark Weathers Excaliber Precision Machining

[ GARTMAN TECHNICAL SERVICES ]

Vice President Joe Sirochman JPS Manufacturing

GTS offers a full range of high quality computer support services. Family-owned helping businesses since 1994. Services include:

Executive Director Chris Mignella

• Hardware and network installation • Ongoing network maintenance and support • Software installation • Website development • Basic support for computer related questions • Problem solving on everything from large scale servers, complete office networks, to individual PC’s and laptops

Treasurer Maxine Jones PPG-Aimco Division Trustee John Lewis Lewis Aerospace

Gartman Technical Services, Inc.

Alternative Trustee John Bloom R&D Specialty Manco

Associate ATMA Member Grady (Mickey) Gartman, President 735 N 19th Avenue, Phoenix, AZ 85009 Office: 602.788.8121 Cell: 602.369.7727 email: mickey@gartmantech.com website: www.gartmantechnical.com

Board Members Dante Fierros Nichols Precision Mark Lashinske Modern Industries Bob Marusiak Micro-Tronics, Inc.

THE NEW TOOL OF THE TRADE.

John Raycraft Arizona Precision Industrial Greg Chambers PPG-Jet Division Jeremy Lutringer Unique Machine & Tool Associate Member Liaison Mickey Gartman Gartman Technical Services

Put Precision Magazine to work for you!

Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.242.8826 Fax: 480.970.8501

When effective results are demanded, no other advertising medium targets the Arizona Tooling & Machining Industry and delivers results like Precision Magazine!

www.arizonatooling.org arizonatooling@cox.net

See page 8 for details or visit arizonatooling.org

TM

MAGAZINE

“The Right Tools. The Right Team. The Right Time.”

www.arizonatooling.org

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Shop TALK

WHAT IS THE ATMA?

by JOHN LEWIS, TRUSTEE & MARK WEATHERS, PRESIDENT

Welcome to the very first edition of ATMA’s new Precision magazine. is professional publication represents a big step forward from the internally focused newsletter we have had for many years. Many of you may not be familiar with the ATMA, so we would like to explain what our organization is all about. e ATMA is a coalition of precision tooling and machine shops in Arizona, currently with 93 shops as members. We cover manufacturing activities such as mold making, fixturing and tooling, CNC machining of all types, forming, stamping and assembly. We serve almost every high-tech sector imaginable including aerospace, defense, medical, semiconductor, mining and alternative energy to name a few. Our common link though all of this is the precision nature of our work.

Also within our group are 50 associate members that support us with machinery, tooling, processing and professional services, covering a wide variety of activities from banking and insurance to security.

golf tournaments, tradeshows and holiday parties are always great fun.

We give back as well, supporting Toys for Tots each holiday season. e ATMA is just one of 48 chapters in the National Tooling and Machining Association (NTMA), and we benefit greatly from national lobbying efforts, discount programs and semi-annual conventions. We are one of the most—if not the most—active chapters in the country.

In spite of our relatively small manufacturing base compared with some parts of the country, e ATMA is seen as one of the strongest and most dynamic chapters.

Our motto is “e Right Team, with the Right Tools, at the Right Time.” e ATMA’s purpose is to provide benefits for our members that they could not achieve for themselves as small businesses. In addition to bringing valuable technical and business information to our members, we collectively strive to: • Provide a qualified workforce by re-filling the pipeline

WE ARE DEDICATED TO HELPING EACH OTHER AND KEEPING MANUFACTURING STRONG IN ARIZONA AS WELL AS ON A NATIONAL LEVEL. e thing that most defines the ATMA is the reason we are banded together: We are dedicated to helping each other and keeping manufacturing strong in Arizona as well as on a national level. While we are competitors, we realize our greatest competition is offshore and our greatest challenge is to keep manufacturing alive and well. We support each other through the sharing of ideas, advice, experience and even work. We meet monthly throughout the year, and each meeting features topics of interest to small business owners in the machining industry, frequently drawing well over 100 attendees.

Our speakers range from politicians to economists to technical experts, and we periodically hold topical workshops as well. Of course, we try to incorporate a little entertainment along the way; the ATMA’s annual

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• Exert political influence through public policy partnerships • Market our capabilities to manufacturers on a local, national and international basis

Our workforce development efforts include scholarships, apprentice competitions, curriculum and standards validation, support for the NIMS credentialing system, relationships with Department of Education officials, support for community college programs, internships and an annual battling robotics competition.

Our political efforts revolve around our partnership with the Arizona Manufacturing Council (AMC) and the AZ Chamber of Commerce.

We seek to maximize our collective influence on issues critical to the manufacturing community and small businesses.

We are just getting started with our marketing activities are, but our mission is to make sure OEMs across the country and the world are aware of our tremendous high-technology capabilities in the Valley of the Sun. We plan to continue our partnership with the Arizona Department of Commerce and expand our relationship with GPEC. e ATMA Board of Directors is quite proud of our active and impactful organization. We look forward to sharing our enthusiasm for precision manufacturing with you in each issue of Precision this year. I

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ATMA PRECISION

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/// team updates DECEMBER 2009

Education/Bots IQ Team Many anks to Mark Weathers of Excaliber Precision who led our Education Team through several competitions, scholarships and intern programs during 2009! e 2010 Education Team will be led by David Lair of Dynamic Machine and Jeremy Lutringer of Unique Machine & Tool.

David will lead the 'Workforce Development' efforts and Jeremy will lead the 'Narlee Battlebots' program and competitions.

If you would like to join the Education team or the BOTS IQ team, please contact David Lair of Dynamic Machine at 602.437.0339, or Jeremy Lutringer of Unique Machine & Tool at 602.470.4911.

Marketing & Membership Team Many anks to Dante Fierros of Nichols Precision who led our Membership & Marketing Team during 2009! Your contribution to the new ATMA branding, logo and website are truly appreciated. e 2010 Membership and Marketing Team will be led by John Lewis of Lewis Aerospace, and Mark Lashinske of Modern Industries. John will lead the marketing efforts and Mark will lead the membership team.

To join the M&M team, contact John Lewis of Lewis Aerospace at 602.432.3523, or Mark Lashinske of Modern Industries at 480.656.1829.

NEXT TEAM MEETING: Tuesday, Jan. 5, 2010 at Lewis Aerospace from 11:30 a.m. - 1:00 p.m.

Program Team Many anks to Maxine Jones of PPG-Aimco Division who led our Programs Team during 2009! Your efforts provided venues and value to our members—everyday. e 2010 Program Team will be led by Joe Sirochman of JPS Manufacturing. e meetings will be held every second ursday of the month at JPS Manufacturing from 11:30 a.m. to 1:00 p.m. is year, the programs team will focus on bringing you interesting speakers, “lunch and learns,” and various tours.

Please contact Joe Sirochman at 480.637.9540 if you are interested in joining.

NEXT TEAM MEETING: Tuesday, Jan. 5, 2010 at Lewis Aerospace from 11:30 a.m. - 1:00 p.m.

Safety & Insurance Team Many anks to Greg Chambers of PPG-Jet Products Division who led our Safety Team during 2009! Your efforts resulted in constructing a safety plan template for our members which will be completed during 2010. e 2010 Safety Team will be led by Jaime Beauvais of MicroTronics. e safety plan template will continue to be a work in progress during 2010. Please contact Jaime Beauvais at 602.437.8995 if you are interested in joining.

NEXT TEAM MEETING: ursday, Jan. 21, 2010 at MicroTronics from 11:30 a.m. - 1:00 p.m.

Look for information regarding a new team for 2010: Legislative Updates Led by Dante Fierros of Nichols Precision, this team will bring you legislative updates for the state of Arizona that affect your businesses.

Please contact Dante Fierros if you have any questions. 480.804.0593

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Shop TALK

ATMA AND AMC A Partnership for Dynamic Times

by DANTE FIERROS President of Nichols Precision and Avid ATMA Board Member

As is the case with our National Tooling and Machining Association’s legislative efforts on the Federal level, the Arizona Manufacturers Council (AMC) provides a strong voice to the manufacturing industry at the state level. It works to ensure that Arizona provides a globally competitive environment for the manufacturing sector of the economy that promotes innovation and further investments in research and development.

• Create an economical and understandable regulatory and legal environment that facilitates manufacturing operations.

e AMC deals with a variety of policy issues that impact manufacturers of all sizes statewide, including the environment, energy, education and workforce development, human resources and intellectual property. e AMC also hosts events of special interest to the manufacturing industry.

Public Policy Participant (P3) Relationship e AMC’s expertise is in “the development and execution of sound pro-business public policy.” is focus on public policy differentiates the AMC from other trade associations, and in the case of the ATMA, it complements the work we hope to accomplish.

e ATMA has not had a dedicated full-time force to focus on issues affecting our industry at the state capitol. is need for a strong, ongoing voice to our legislators was the foundation for a relationship between the ATMA and the AMC. You will note that the Mission Statement and Guiding Principles of the AMC are very much in line with ATMA philosophies. e AMC mission is to “promote and enhance a positive business climate for manufacturing and related industries that operate within Arizona.” eir guiding principles include: • Support a taxation system that promotes capital investments and research, and keeps the manufacturing sector globally competitive.

• Support a market-driven health care system that makes it easy for employers to provide health insurance benefits for their employees.

A Public Policy Participant (P3) relationship was established to mutually benefit like-minded organizations. “ese arrangements will enhance the value propositions of both organizations by providing improved member services and greater efficacy in achieving our respective missions,” says Mark Dobbins, president of the AMC. In this regard, a Public Policy Participant (P3) relationship has been established between our organizations for our mutual benefit and support. For greater details and a look at the extensive work being undertaken by the Arizona Chamber of Commerce and Industry and the AMC, please visit their website at www.azchamber.com.

• Ensure that Arizona provides a globally competitive environment for the manufacturing sector that promotes innovation and furthers investment in research and development.

Coming Attractions Precision will provide valuable information regarding key legislation affecting our manufacturing industry within the state of Arizona. In addition, it will provide ways to get involved and make your voice heard, along with opportunities to network with the legislators who impact our businesses every day.

• Improve employer access to highly skilled employees. Support strong accountability measures, innovative management techniques, enhanced academic rigor and efficient use of resources to improve education throughout Arizona.

In our next issue, look for the 2010 Business Agenda and Budget Recommendations. is plan is presently in its final draft stages and has been authored by the AMC and agreed upon by the ATMA Board of Directors.

• Reform Arizona’s workers’ compensation system to improve employee care and ensure cost efficient use of employer dollars.

Although our relationship is only a couple of months in the making, the ATMA and AMC have enjoyed opportunities to network at two events. More activities, presentations, tours and the dissemination of useful data is planned for 2010, and will be covered within the pages of Precision. I

• Support the development of a multi-modal transportation system to facilitate the movement of goods and services.

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WEBSITES YOU SHOULD KNOW Arizona Chapter Website http://www.arizonatooling.org Arizona Department of Commerce – Job Training Grant application www.azcommerce.com/workforce

Richter Machine & Design Has Joined Forces with Accurate Waterjet

Arizona Department of Education http://www.azed.gov Arizona Manufacturers Council http://www.azchamber.com/amc Arizona MEP http://www.arizonamep.org Arizona State University Mechanical & Manufacturing Engineering Technology http://www.poly.asu.edu/technology/mmet/ City of Phoenix – Community & Economic Development Program http://www.phoenix.gov/ECONDEV/index.html EVIT (East Valley Institute of Technology) http://www.evit.com GateWay Community College http://www.gatewaycc.edu Greater Phoenix Chamber of Commerce http://www.phoenixchamber.com Human Resources, Safety & Environmental topics of interest (Also see a link on the NTMA website, www.ntma.org) http://www.blr.com Maricopa Skill Center http://www.maricopaskillcenter.com

Paul Lemaire, Accurate Waterjet Arnie Lytle, Richter Machine & Design

Maricopa Community Colleges http://www.maricopa.edu Maricopa Workforce Connections http://www.maricopaworkforceconnection.com Mesa Community College http://www.mc.maricopa.edu Mesa High School http://www.mpsaz.org

Ph: 480-736-2422 Fax: 480-292-9304 Cell: 480-510-7550 paul@accuratewaterjet.com www.accuratewaterjet.com

National Institute for Metalworking Standards http://www.nims-skills.org National Tooling & Machining Association http://www.ntma.org Occupational Health and Safety Administration http://www.osha.gov SCF Arizona http://www.scfaz.com U.S. Department of Labor http://www.dol.gov

Ph: 480-736-1736 Fax: 480-736-1740 Cell: 480-773-0115 arnie@rmdwaterjet.com www.rmdwaterjet.com

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INDUSTRY News

METHODS INTRODUCES LARGER CAPACITY 3-TURRET MULTITASKING TURNING CENTERS

PARTMAKER VERSION 2010 NOW AVAILABLE

Methods Machine Tools Inc., a leading supplier of innovative precision machine tools, has announced today that the Super NTY3 Multitasking Turn / Mill Machining Center from Nakamura-Tome is available in larger capacity "Jumbo" stations. The new Super NTY3 Jumbo Systems feature a 10-inch (254 mm) chuck on the left and right spindles and offer large bar capacities up to 3.15 inches (80mm) on the left and 2.8 inches (71mm) on the right. Ample room is provided for a big swing and a large turning diameter up to 12.8 inches (325mm).

PartMaker Inc., a division of Delcam Plc, is pleased to announce that PartMaker Version 2010, its latest version of PartMaker Software for programming CNC Mills, Lathes, WireEDMs, Turn-Mill Centers and Swiss-type lathes is now available. PartMaker Version 2010 is the most significant PartMaker release made to date as it features a number of new powerful features and enhancements that will allow users to program faster, make more complex parts and take advantage of the latest in machine tool technology.

Like the Super NTY3, the Jumbo systems offer multi-point machining with process integration, combining turning and milling capabilities in one machine. Offering 100 percent stock-on turning and machining, the systems virtually eliminate lost productivity due to tool changes.

The Super NTY3 Jumbo has three turrets, each with a Y axis, dramatically outperforming single-tool multitasking machines, allowing one-pass complete turning / machining / finishing and reducing part cycle times.

“PartMaker Version 2010 will provide every PartMaker user an immediate productivity improvement,” says Delcam’s PartMaker Inc. Division President, Hanan Fishman. “Plugging into Delcam’s development staff, the largest in the CAM industry, has facilitated the incredible leap in technology included in PartMaker Version 2010.

“Perhaps most importantly, all the new technology in PartMaker Version 2010 is provided in PartMaker’s industry leading easy-to-use user interface, allowing users to truly take advantage of the new functionality Version 2010 provides,” Fishman adds.

"With the introduction of the Super NTY3 Jumbo Systems, we are now able to provide our customers with a multitasking solution that adds increased capacities and maintains the decreased cycle times provided in the Super NTY3," says Mr. Richard Parenteau, director of applications development and Nakamura-Tome product manager, Methods Machine Tools Inc. The Jumbo Systems are available in two models including the NTY3 Jumbo Super Mill 16 Station Turret (90mm) System and the NTY3 Jumbo Standard 12 Station Turret (100mm) Station. Each model offers extremely rigid turrets with different configurations: the 16 Station Super Mill features 48 milling stations and the 12 Station Standard System provides 1/2 indexing for 72 stations. Both systems offer 10 / 5 HP and 40 Nm torque and feature accelerating Y-axis total travels of + / 2.16 inches (54.9mm) or 4.33 inches (110mm). The systems offer either 3,000 or 6,000 RPM milling motors which can simultaneously machine two flat surfaces (top and bottom) on one spindle and one surface on the other. Up to 35/30 HP left and right spindles are available for shaft/work turning. The 12 Station Standard System offers compatible tooling with the current Nakamura WT-300 and TW-20 models.

The Super NTY3 Jumbo Systems feature the Fanuc 31iA CNC control with nanometer resolution for smooth movement and improved accuracy. Overload detection and NT Nurse programming / monitoring software are also standard, as is NT Work Navigator (torque-type) software, which further reduces costs by eliminating the need for positioning jigs and fixtures.

Methods Machine Tools Inc. has been a leading supplier of precision machine tools and accessories for 50 years, providing installation, parts, service, and training through a network of dealers throughout North America. Methods Machine Tools Inc. is the exclusive U.S. and Mexico importer of Nakamura-Tome machines.For more information about Methods Machine Tools Inc., visit www.methodsmachine.com. I

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Major highlights of this newest release, PartMaker Version 2010, include the ability to perform 5-axis simultaneous milling on multi-axis lathes, more powerful milling functionality, enhanced grooving routines, faster tool path creation, improved solid model-based programming tools and the ability to better visualize thread whirling.

A host of additional productivity, user-driven enhancements will also be featured in PartMaker Version 2010.

The 5-axis simultaneous milling functionality in PartMaker Version 2010 is based on robust, well-proven technology used in PowerMILL, Delcam’s world leading specialist NC CAM software for the manufacture of complex shapes.

PartMaker is a Knowledge Based Machining system, allowing it to provide a substantial gain in programming efficiency by remembering the tools, material and process information necessary to machine individual part features. It thus relieves the user from reentering the same features information for subsequent parts. It also improves productivity by placing the emphasis on tool management functions.

PartMaker pioneered the field of CAM software for Turn-Mills and Swiss-type lathes with its patented Visual Programming Approach for programming multi-axis lathes with live tooling. It assures quicker learning and easier use. It makes an extensive use of pictures to help the user describe tools, part features and machining data. Synchronization of tools working on multiple spindles is achieved by a few mouse clicks.

PartMaker Inc. is a subsidiary of Delcam Plc, the world’s leading developer and supplier of complete CAD/CAM software solutions.

Delcam Plc is publicly traded on the AIM exchange in London. While PartMaker is sold direct in North America by PartMaker Inc., PartMaker is sold overseas through a network of sales partner offices operating in over 120 countries. For more information, visit www.partmaker.com. I

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GOT ATMA?

GET CONNECTED TO THE ATMA! • • • • • • • •

Networking Lobbying/Legislative Education/Workforce Development Business Development Member Discounts Technology Updates Industry News Vendor & Product Showcases

ATMA

ATMA Vision: Arizona’s preferred professional association, dedicated to the growth, health and prosperity of our tooling & machining members.

ATMA Mission: “We join together as members of the Arizona precision custom manufacturing community to achieve business success in a global economy through advocacy, advice, networking, information, programs and services.”

“The Right Tools. The Right Team. The Right Time.”

For more information contact: Chris Mignella, arizonatooling@cox.net www.arizonatooling.org

PRECISION

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:

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FOR DECEMBER 2009 & JANUARY 2010

/// legislative update

LEGISLATIVE Update

Welcome to the ATMA Precision’s Legislative Update. The purpose of this section is to provide you with the most current legislative activities and information pertinent to the tooling and machining industry. For our inaugural publication, we are honored to include the comments of Marcus Osborn, Ph.D., Government and Public Affairs, Deputy Director, R&R Partners.

Dr. Osborn’s lobbying career began with the Arizona Chamber of Commerce, advocating public policy on behalf of the Arizona business community. While serving with the chamber, he lobbied the legislature, administrative agencies and other governmental bodies on numerous and diverse issues important to the business community. Dr. Osborn also has held the position of legislative and public affairs director both with the Arizona Department of Commerce and the Arizona Department of Environmental Quality.

He holds a Ph.D. from Arizona State University in public administration with an emphasis on organizational theory and policy analysis, a master’s degree in public administration, and an undergraduate degree in political science and history. Dr. Osborn also completed a senior executive study at Harvard University. Additionally, he sits on the Governor’s Regulatory Review Council.

Dante Fierros ATMA Board of Directors

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LEGISLATIVE Update

IMPROVING THE BUSINESS CLIMATE FOR MANUFACTURING A Critical Factor for Arizona’s Economic Turnaround

e current recession has highlighted the fact that an economy based on housing can only last for so long. As we look at the dramatic impact the housing collapse had upon Arizona’s economy and the fiscal health of the state government, it becomes clear that Arizona must have a new economic development focus. It is critical that the state move from a housing-based economy to one that is export-based.

Failing to make such a change will certainly ensure that Arizona will suffer the same fate when the housing bubble bursts again. e path to long-term, sustainable economic development is based on making Arizona more attractive to manufacturing. is export-based economic engine will relay the income from customers not just in Arizona but across the U.S. and the globe.

What can our elected officials do to make Arizona more competitive to grow local manufacturing and attract new industry? e Arizona Manufacturers Council (AMC), the Arizona Tooling and Machining Association (ATMA) and other partners have a few suggestions we will be pursuing this upcoming legislative session.

First, Arizona must lower the business property tax burden, which is ranked as the fifth highest in the nation. is can be accomplished by eliminating the state property tax burden on businesses and lowering the assessment ratio that businesses are levied from 22 percent down to 16 percent. Business property tax is an insidious tax for capitalintensive businesses because the more you invest in your facilities and equipment to stay competitive, the higher your tax bill. High capital investment is related to high wage jobs, and Arizona needs to stop creating a disincentive to capital investment.

In addition, it is important to lower Arizona’s Corporate Income tax rate so that is more competitive both regionally and nationally.

Corporate income tax is an unstable tax for the government to budget around and our high rates makes us regionally uncompetitive; it is time we move away from corporate income tax. ese measures were narrowly defeated in the last session but are critical steps to making Arizona friendlier to manufacturing.

Arizona needs to continue its efforts to reform the regulatory environment. Arizona must be a national leader when it comes to streamlined regulation for businesses. California is experiencing record

by MARCUS OSBORN, PH.D.

unemployment—worse than Arizona—and many believe that California’s high cost of complying with state and local regulations is partly to blame.

Arizona should become a shining light by directing our state agencies to find the most efficient and business friendly ways to regulate.

Last year, the governor and state legislature agreed to put a freeze on any new regulations for one year. is sent a strong message to the business community that Arizona is open for business. is year, we want to build on last year’s success by making it easier for the state to eliminate outdated regulations while directing agencies to use only the most cost-effective approaches when they need to create new regulations. Arizona’s regulatory agencies should be a partner in economic development, not a hindrance.

FAILING TO MAKE SUCH A CHANGE WILL CERTAINLY ENSURE THAT ARIZONA WILL SUFFER THE SAME FATE WHEN THE HOUSING BUBBLE BURSTS AGAIN. Finally, Arizona must redirect our K-12 and higher education efforts toward promoting excellence in the areas of science and math.

Intellectual capacity is at the heart of the modern manufacturing sector and Arizona must do much more to ensure that the state has a workforce ready to compete in the modern manufacturing environment. It will take time to redirect our education system, but it is an investment we cannot do without. ese are three key building blocks toward restructuring Arizona’s economy into a manufacturing focused economy. We look forward to working with the legislature and the governor on transforming Arizona’s public policy environment into one that supports manufacturing. I

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NTMA News

NTMA WELCOMES NEW CHAIRMAN Russel Reschke, an active 30-year member of the NTMA, will serve as the 2010 NTMA Chairman. Reschke will be officially sworn in as Chairman during the Annual Conference in St. Thomas, to be held from Feb. 28 to March 4.

In 1978, Reschke bought Metal Processors, Inc., the company his father founded in 1956. Reschke grew up working in the family business. Following high school, he completed his apprenticeship at Early Tool & Engineering to gain outside experience and insight into company management before returning to Metal Processors.

Today, under Reschke’s leadership, MPI is a leader in building secondary tooling for the casting industry, primarily serving the automotive industry. The company is ISO9001:2000 certified and currently employs 17 people in a 33,000-square-foot facility in Stevensville, Mich.

The NTMA Insurance Program prompted Reschke to join the Association in 1979. He became active in other aspects of the association in the mid-1980s. He was a member of the Board of Directors of the Michiana Chapter and was elected chapter president in 1988. On the national level, he has served on the Networking Team and the Budget & Finance Team. Reschke was instrumental in launching an Owners Networking Program for NTMA members.

Reschke and his wife, Joy, live in Benton Harbor, Mich. They have been married 43 years and have three children: Brent and his wife, Jenefer, live in Benton Harbor where Brent is a chef; Heather, a physician’s assistant, and her husband, Danny, live in Denver, Co.; and Blake, a pilot for JetBlue, lives in Austin, Texas, with his wife, Pollyanna, and daughter, Estella.

Reschke enjoys golf and woodworking; while Joy enjoys golf, shopping, collecting antique jewelry and interior decorating.

NTMA TO HOLD TWO PURCHASING FAIRS IN 2010: “BRINGING WORK BACK TO THE U.S.A.” Mark your calendars for May 12 and October 29, 2010. These are the dates set for two NTMA/PMA-sponsored Purchasing Fairs. The NTMA is continuously looking for new potential customers for our members, and two events in one year will be a huge task. The theme for the 2010 fairs will be “Bringing Work Back to the U.S.A.” The NTMA will be concentrating on customers that have sent work offshore to other countries. There are many anecdotal stories about 16

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companies bringing work back to the U.S. for various reasons, and we want to create the opportunity for more to do so. In addition, the NTMA/PMA One Voice coalition is working to enact federal policy and legislation that will encourage more customers to bring work back by bringing down some of the barriers. Our goal is to show customer companies that they don’t need to send work offshore to find good vendors.

The two events will be held: May 12, 2010 Hyatt Regency Hotel Irvine, Calif.

October 29, 2010 MGM Grand at Foxwoods Mashantucket, Conn.

Companies looking for potential new customers won’t want to miss attending at least one of these fairs. Those who have attended the events in the past and performed the follow-up have reported a great deal of success in attracting new business. Even members with a lot of work have attended past fairs because they know that when they’re busy, it is the best time to be looking for new business.

Watch for more details about these purchasing fairs as they develop.

Will you be at one of the events? Your U.S. competition will!

FREEDOM ISN’T FREE!

by JIM GROSMANN, NTMA Marketing Director

Every year, the NTMA works hard to get legislation passed that will help the U.S. metalworking industry or to stop legislation that will harm the industry. The 2008 elections brought to power a group of people that either doesn’t care about manufacturing or small business, or just don’t get it and don’t want to. Their agenda appears to view any company owner as rich, and they want to take as much away as possible—even if it kills U.S. manufacturing.

From the beginnings of the NTMA in 1943 when a few men went to Washington and stopped the War Department from drafting journeyman tool and die makers and machinists, the NTMA has continued the legislative advocacy needed to stand up for this industry. 2010 will not be any different, and may be one of the most important years in our history. We must gain an edge in the Senate, if nothing else.

The anti-small business group holds the numbers in Washington to do just about anything they want if they stick together. It has been amazing that they have not been able to pass all the legislation they want to. What is holding them back? Your NTMA and PMA coalition: One Voice is one of the reasons.

One Voice has managed to line up other groups to help in our battle, and we’ve been able to bring to public view the truth about much of what they want to pass. We’ve been able to motivate enough members

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to contact their elected officials to let them know we’re watching their actions, and we’ve been able to align ourselves with enough groups on each issue to stop or stall what is occurring. At this time in our history, inaction in Congress is good for us!

What most people don’t realize is that we hold the power in elections that can stop them from doing what they want ... and they know it.

As small business people, the aligned groups hold tremendous power to change elections because we have more voters. After all, many elected officials are only interested in keeping in power in the next election.

Our foes in Washington are spending millions of dollars on ads and other means to sway votes. We can’t match their money, but if we work together, we can win the battle. We must get our friends and families to the polls in November to elect those who will actually help us.

There are many battles ahead, and we need to raise money to keep up the fight. The NTMA has two funds. One is a Political Action Committee (PAC) called Committee for a Strong Economy (CFASE).

That money is used to donate to the campaigns of those who have worked with us in the past or are doing so now. It is a much regulated group and we have to be careful how we ask for funds.

The CFASE cannot accept funds from non-members and can only accept funds from member companies that have signed a form giving the NTMA permission to solicit funding. If you haven’t signed that form, please contact the NTMA office and ask that an “Approval to Solicit Funds” form is sent to you. You may also contact me for more information or to request a form at jgrosmann@ntma.org.

The other NTMA fund is for general advocacy work—the Government Affairs Administrative Fund (GAAF). Money from this fund is used to pay for mailings, part of the Legislative Conference in April, supplies and the daily expenses needed to carry out the work. Anyone can donate to this fund, and we need to rebuild it immediately. To donate to this fund, please send a check or money order to the NTMA national office and indicate that the money is for the GAAF. One common refrain is that “Freedom isn’t free!” Neither is the work the NTMA does in Washington every day standing up for the industry.

Please help in any way you can. I

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EDUCATION Update

EDUCATION UPDATE CTE: THE PIPELINE TO 21ST CENTURY MANUFACTURING On behalf of State Superintendent of Public Instruction, Tom Horne, and the Arizona Department of Education-Career and Technical Education (CTE) division, I want to thank all of you for your commitment and dedication to education this past year. It has been a pleasure getting to know you and to better understand your needs for a highly trained workforce. CTE is proud to be a part of the inaugural ATMA industry publication. We look forward to providing you with current and timely information on our efforts to be the pipeline and solution for your future workforce needs.

Our Mission Statement reads: “Prepare Arizona students for workforce success and continuous learning.” Our Vision Statement follows: “Ensure a dynamic workforce by fully developing every student's career and academic potential.” To accomplish those goals, we are partnering with the statewide business community to develop industry standards and technical skill assessments in all of our CTE programs (38 this school year). We integrate current and relevant academic state standards, provide work-based learning experiences, articulate with our post secondary partners, continuously update and expand our business and industry partnerships, and provide leadership and personal development for all of our students, teachers and other faculty members.

We live and work in an ever-changing global workplace. Technological advances in all industries are the norm rather than the exception. The way we do business today is radically different than it was just five years ago. As business leaders and owners, you must be adaptive to ever-changing markets and to recognize business and marketing opportunities that present themselves worldwide. To accomplish those goals, your workforce must be properly trained to achieve your mission and vision and to produce a workforce in High Wage, High Skill and High Demand occupations.

The National Association for State Directors for Career and Technical Education Consortium (NASDCTEC) and its governing board, which I am a part of, is now midway through a “Visioning Process” (10 years out) to develop and position CTE as the preeminent delivery system for career and technical education, economic development and workforce development nationwide. When we are finished, we will be disseminating our Vision Paper to a broad constituency of business and industry, state and federal government, and education entities.

by MILTON ERICKSEN

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EDUCATION Update

We are focusing on six core principles: Global Competition, Linkages (education, workforce and economic development), Employer Focus, Student Achievement, Quality Instruction and Data. You will hear much more about this process in the coming months.

We receive federal and state funding to accomplish our goals. Each year, we provide Congress and the U.S Department of Education-Office of Vocational and Adult Education (OVAE) with a Consolidated Annual Report (CAR) detailing how we are meeting and exceeding our performance measures and federal mandates under the Carl D. Perkins Federal Education Act of 2006, better known as Perkins 4. Under that law, we are now in the process of developing Technical Skill Assessments in all of our core programs and sub-options, using the most current state and national Labor Market data.

The Arizona state legislature has also mandated the development of assessments in conjunction with the federal mandate for our programs under Joint Technical Education Districts (JTEDS) statewide. Statewide funding for our 13 JTEDS has allowed CTE to expand and enhance our CTE programs throughout Arizona. This combined emphasis, state and federal, is positioning CTE to meet and exceed your expectations for a High Wage, High Skill and High Demand workforce.

To accomplish those goals, we have created for the first time an Arizona Skills Standards Commission to provide oversight in the development and implementation of the Standards and Assessment process. Co-chairing the Commission are Superintendent Horne and Carolyn Warner, former Superintendent of Public Instruction. The commissioners represent all segments of business and industry throughout Arizona. Two of your members, Maxine Jones and Ray Rubin, are commissioners. They will be working with us and your Board of Directors to identify professionals/technicians from your businesses who can help us throughout the coming year to create and validate standards and to prepare the assessments for our students in precision manufacturing and engineering.

Over 10,000 Arizona CTE students took final assessments for the first time this past April and May. It is our goal for 2010 to have standards and assessments ready for hundreds of CTE manufacturing and engineering students statewide. Our programs in precision manufacturing and engineering continueto grow. Based on final enrollment data from the 2008-2009 school year, there were 718 precision manufacturing students at 16 sites statewide and 1,637 engineering students at 29 sites throughout Arizona. Initial enrollment figures for 2009-2010 project 800-plus precision manufacturing students and over 1,900 engineering students enrolled in CTE programs. This has resulted in more participation from teams competing in state and national competitions, “Battle Bots IQ and First Robotics.” We thank those of you who have supported the teams and have been judges and sponsors.

“

Our Mission Statement reads: ‘Prepare Arizona students for workforce success and continuous learning.’ Our Vision Statement follows: ‘Ensure a dynamic workforce by fully developing every student’s career and academic potential.’ To accomplish those goals, we are partnering with the statewide business community ...

”

skills a part of our curriculum, we are working with business and industry to host conferences on topics such as “Social Media.” Our first event will be in mid-January and will feature Mr. Lon Safko, author of The Social Media Bible. The event will be held at the East Valley Institute of Technology (EVIT). We encourage you to participate and will be sending you registration and sponsorship information soon.

Because of your commitment and dedication to CTE, our students are succeeding at very high levels academically. Each year, we track our student performance on Arizona's high-stakes test: AIMS (Arizona Instrument for Measuring Standards). We are very proud of how our concentrators in CTE who pass AIMS and graduate have performed on the reading, writing and math portions of AIMS, and of your ongoing support of our efforts in CTE. In closing, on behalf of the Arizona Department of Education and all of CTE, I know I speak for Tracy Rexroat also when I say thank you to the members of ATMA: your leadership—John Lewis and Mark Weathers, your board of directors and your caring members.

I would also be remiss if I did not single out your new Executive Director, Chris Mignella, for her consummate professionalism, leadership and creativity in the short time she has been with ATMA. We look forward in 2010 to collaborating with ATMA and related industry groups, including the Arizona Manufacturing Council, on initiatives such as the "Dream It Do It" campaign from the National Association of Manufacturers. By working together cohesively and synergistically, we will produce your future workforce and leaders in precision manufacturing and engineering. I

Wishing all of the members of the Arizona Tooling and Machining Association a very happy, healthy and blessed holiday season and a rewarding and prosperous 2010!

Milt Ericksen

As industry leaders, you continually tell us of the importance of workplace, life and social skills our students “must have” to be effective employees and leaders in your businesses. Not only is developing those

Deputy Associate Superintendent State Director of Career and Technical Education, Arizona Department of Education

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TECHNOLOGY Update

ATMA Members, Welcome to the first edition of the Technology Update. In this department, we will highlight the technical advances that can help your machining business. We’ll begin by reviewing what the NTMA Technology Team has been up to. The Tech Team is made up of members like you keeping us all abreast of the latest advances in the industry. As with most things, you only get out as much as you put in; I encourage you to participate in the programs below. It’s just one more benefit of the NTMA. Mark Weathers President

NTMA MANUFACTURING TECHNOLOGY TEAM 2009 ACCOMPLISHMENTS

by KEVIN KING

NTMA member companies manufacture an amazing array of parts and products everyday, using world-class modern equipment, methods and techniques. How do I know this? I’ve witnessed it first hand during shop tours. Entering the shops, the smell of cutting fluids and the sounds of machine tools making chips make me feel like I’m home again. I also regularly receive pictures of members’ shops capturing their most recent efforts to improve their facilities, making them more efficient, productive and competitive.

With NTMA member companies having such sophisticated operations, it is a daunting task to ask someone to provide them with information on how they could be utilizing new and emerging technologies better in their organizations. It is really only through the oversight and direction of the NTMA’s Manufacturing Technology Team that I can hope to achieve this.

The program that has touched the greatest number of members is NTMA’s webinar series. Newly created in 2009, NTMA hosted five webinars in 2009 with over 250 members registering for the events: • • • • •

R&D Tax Credits Spindle Metrology Visual Fair Light Activated Adhesive Gripping Using OCEC reports

2010 promises to bring even more of these complimentary sessions to the membership with webinars already planned for January and February. Look for those invitations in your e-mail. Upcoming webinars and links to archived event material are available online at www.NTMA.org¡News & Events¡Webinars.

Equally valuable are two awards programs that were created and launched in 2008 and saw strong member engagement in 2009. They are the Manufacturing Technology and 6S Excellence Award programs.

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The Manufacturing Technology Award honors NTMA member companies that have implemented a manufacturing business or technology solution delivering a significant positive business impact.

Two world-class manufacturing companies were recognized for their achievements and received this Award in 2009.

The first award was presented to NTMA member Ultra Machining Company (UMC), Monticello, Minn., for their incorporation of wire EDM machines to their operations. By adding a number of wire EDM machines including System 3R WorkMaster robotic automation, UMC has shown dramatically improved productivity and profitability, tripling its revenue since adding the first machine.

The second award was presented to NTMA member General Tool Company, Cincinnati, Ohio, for their game-changing use of frictionstir welding. Cover plates for the US Navy Electromagnetic Aircraft Launch Systems (EMALS) are friction-stir welded in the machine tool workstation immediately after the channel machining operation. In over 2,950 of production friction-stir welding, this process has not shown one indication of sub-standard quality.

All NTMA contract manufacturing members are eligible for this award.

Nomination forms are available online at www.NTMA.org¡Resources¡Document Library (Members).

The 6S Excellence Award program was developed in 2008 after Agie Charmilles Chairman Emeritus, Harry Moser’s trip to Switzerland with the winners of the 2007 NTMA/NIMS National Apprentice Contest. Moser challenged the NTMA Technology Team to develop a tool NTMA members could use to bring up the image of their shops and, collectively, that of our industry. Since its inception, NTMA has awarded eight outstanding NTMA member companies.

These companies have shown that they are well on the way in their journeys to becoming world-class manufacturing facilities. Of course, this is a journey that never ends; as soon as you think you are done, someone else starts to catch up to you.

Last, but not least, the NTMA is providing IMTS organizers with quality educational content for the upcoming IMTS 2010 Industry & Technology Conference being held from Tuesday, September 14 through Friday, September 17, 2010. Over 40 abstracts have been provided to the conference organizer, Tom Grasson at GIE Media.

According to John Krisko, AMT Director of Exhibitions, the West Building will be home to all sessions, which will help centralize the conferences and greater emphasis will be placed on accommodating session attendees. More information will available in the months ahead at www.imts.com/conference. I

The Manufacturing Technology Team is always looking for future team members, feedback and contributions. All questions or comments can be sent to Kevin King, Manufacturing Technology Director at the National Tooling & Machining Association at kking@ntma.org or 800.248.6862, ext. 8007.

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CALENDAR of Events

MARK YOUR CALENDAR WITH THESE UPCOMING NTMA EVENTS! 2010 NTMA ANNUAL CONVENTION Frenchman’s Reef & Morning Star Beach Resort St. Thomas, U.S. Virgin Islands Feb. 28 – Mar. 4 NTMA/PMA LEGISLATIVE CONFERENCE Westin Washington, D.C. City Center Hotel Washington D.C. April 20-21 NTMA/PMA CONTRACT MANUFACTURING PURCHASING FAIR Hyatt Regency Irvine Irvine, Calif.

May 12 38TH ANNUAL NTMA/NIMS NATIONAL APPRENTICE COMPETITION Indianapolis, Ind. Hosted by Indiana Chapter, NTMA June 9-12 13TH ISTMA WORLD CONFERENCE Caesar’s Windsor Windsor, Ontario, Canada June 20-24

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SPECIAL Advertorial

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MarZee Inc. of Phoenix, a Southwest industrial leader in waterjet cutting, has developed its business around the highprecision abrasive waterjets, which have revolutionized production and prototype accuracy for major industries.

Waterjet machining is widely popular in fields such as automobile, environmental, aerospace, architecture, medical and entertainment firms where it is vital to have every piece of equipment fit perfectly with no margin of error. MarZee has become the best in creating precision parts because they are able to successfully cut metal, glass, plastic, granite and composites to meet specific requirements and environmental responsibilities.

WATERJET CUTTING FAST, EFFICIENT, ECONOMICAL

e process works this way: A waterjet pressurizes water up to 55,000 pounds per square inch, or 379,000 kilopascals (kPa), and then forces the water through a small diamond orifice at 2,500 feet (762 meters) per second—about two and a half times the speed of sound. Hard garnet abrasive is introduced into this high-speed stream of water. A stream of abrasive-laden water moving at 1,000 feet per second (305 meters/sec) exits through a ceramic tube. is jet of water and abrasive creates controlled erosion that is then directed at the material to be machined. Abrasive waterjets can cut and process materials from .001 inches to 13-plus inches in thickness.

MarZee is family-owned and operated by three generations of the Wenz family. It was founded more than a decade ago by Cornelius “Neil” G. Wenz, the current president and a former local building contractor, and his son, Ed. e company’s general manager is Ed's son, Christopher. e production facilities have grown from an initial 2,400 square feet to 10,000 square feet to meet demand.

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We make sure our customers get their products and parts as efficiently and inexpensively as possible.

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”

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"We have a 'cut-anything-anytime' attitude with value-added services, which has paid o in satisďŹ ed customers and continuing growth to meet constant demand,â€? says Edward Wenz, vice president of MarZee. “We own more waterjets and have more capabilities than most any other shop in this part of the country."

For production purposes, MarZee relies on waterjet machines designed and manufactured by the OMAX Corp. e largest is the fabricator, which can cut standard metal sheets up to 80 wide and 240 inches long. It can be adjusted to increase its cutting length and enable the machining of even larger materials. All machines have user-friendly software that simpliďŹ es traditionally challenging and complex cutting projects. For prototype and research and development work, materials can be machined directly from existing CAD drawings or DXF ďŹ les.

Wenz notes that with an extensive in-house inventory, MarZee stocks and sells a wide selection of materials from light gauges to 1-inch-plus thick aluminum (including but not limited to 6061 and 5052), stainless steel (such as 304 and 316), steel (A36,AR,CRS,HRS) and many other materials. MarZee can also quickly duplicate original one-o parts that may be obsolete. Although waterjet may not be cost eective in some areas when compared with the laser, a waterjet can cut all the same items plus work with materials that are aected by heat, such as titanium and aluminum. It can also cut materials laser can't cut, such as thicker metals or composites.

"Our commitment to service is shown with our satisďŹ ed customers providing our largest and best form of advertising via word of mouth," Wenz says. "We make sure our customers get their products and parts as eďŹƒciently and inexpensively as possible to meet their deadlines and speciďŹ c needs." I

MarZee specializes in production and prototype accuracy for major industries including aerospace, architecture, entertainment and environmental design, and is the industry leader for waterjet cutting with CNC-controlled state-of-the-art cutting machines. For more information, call 602.269.5801. infolink: www.marzee.com

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9LVLW 8V DW ZZZ PDU]HH FRP www.arizonatooling.org

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FEATURE story

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haul it away, and some scrap will still end up in a landfill. It’s easy to see how reducing scrap is good for the environment.

• Lean companies have less inventory, which means they have smaller warehouses.

Smaller warehouses require fewer materials in their construction, use fewer forklifts to move materials and consume fewer natural resources to heat and light them.

LEAN IS GREEN NO MARKETING SPIN NEEDED I am sick of the word “green.” In my humble opinion, it has been overused, overhyped, misapplied and contorted so many times that it has become cliché. Within the manufacturing world, the only word that I can think of that has become equally cliché is “lean.”

Don’t get me wrong; I love our planet and I want to make sure that my kids and their kids will enjoy clean air, water and abundant natural resources. I am also passionate about the tremendous competitive advantage that can be achieved by properly implementing lean principles.

Lean, which is the American term for the Toyota Production System, is a fundamentally strong approach for improving company performance and the environment simultaneously—and no marketing spin is needed.

24

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by ROB TRACY

At its core, lean is about the creation of value for customers through the elimination of wastes. is relentless pursuit of eliminating wastes allows lean companies to produce products using far fewer resources than traditional manufacturers. at means lean companies have less scrap, less downtime, less inventory, cleaner factories and a more productive workforce. As you can guess, all of these improvements lead to the consumption of fewer natural resources.

Let’s explore a few examples: • Lean companies have very low scrap rates. ey are fixated on eliminating the causes of defects at the source so that defects aren’t produced. If no defects get produced, then scrap isn’t generated. Producing scrap consumes raw materials. Some scrap may be recycled, but this requires that recyclers

• Lean companies have more productive workforces, which means for a given level of output, they require fewer people than traditional manufacturers require. It is critical to understand that the goal of lean manufacturing is not to have fewer people.

Rather, the goal is to have fewer people per widget produced. Most lean organizations grow at an accelerated rate, which enables sustainable employment.

• A smaller, efficient workforce means fewer people are driving their cars to work and less electricity is used on office equipment such as computers.

• Lean companies maintain their equipment, which means it lasts longer. It also means the equipment is properly lubricated and serviced and operates as it should, which leads to less power consumption.

Toyota began building its much envied production system more than 50 years ago because it made good business sense. e Toyota Production System and lean manufacturing focus on the elimination of wastes, which has the pleasant side effect of consuming fewer resources. And here’s the kicker: because fewer resources are consumed, the company makes more money.

Now we’re talking about some real green. I

Rob Tracy is a manufacturing and distribution principal with LarsonAllen. Contact Rob at 612.376.4794 or rtracy@larsonallen.com. infolink: larsonallen.com

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GREAT INNOVATIONS BEGIN WITH SIMPLE IDEAS.

We help our manufacturing clients innovate, change, and grow. t *NQSPWJOH QSPmUBCJMJUZ t "DDFMFSBUJOH HSPXUI t 3FEVDJOH SJTL t 1MBOOJOH GPS TVDDFTTJPO

Noticeably Different.

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FEATURE story

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Peoria-based Excaliber Precision Machining is working hard to broaden its customer base as a way to offset difficult economic times.

“We are more diverse in terms of number of customers than most precision machine shops,” says owner and ATMA Vice President Mark Weathers, “but almost all of our work is in aerospace and defense. Solar energy is the obvious first choice for expansion given the interest in Arizona from solar companies.”

Breaking into the alternative energy field has its challenges, however. According to Weathers, the large wind turbines that have become so popular require much larger parts than most local suppliers are equipped to make. The ubiquitous solar-powered photocells do not require many machined components. One technology is a perfect fit: solar thermal. In this approach, the sun’s rays are focused by mirrors arranged like a satellite dish. The concentrated energy drives a simple external combustion engine based on the Stirling cycle, a concept that dates back to the 1800s. The engines and dish components are perfect candidates for local machined parts suppliers.

Here Comes the Sun LOCAL BUSINESS SEEKS TO DIVERSIFY INTO SOLAR ENERGY

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That’s why Weathers and others at Excaliber Precision Machining were so excited to hear the announcement that a 60-unit solar thermal test field was being erected at SRP’s Agua Fria generating station, practically in the shop’s back yard. “We can see the dishes from our lot!” Weathers says.

Excaliber has taken advantage of the proximity to the new site by helping with emergency projects to correct problems encountered in this pilot venture. “I spent the better part of a week driving around the Valley coordinating suppliers to make two huge weldments in order to keep the pile driver running and the project on schedule,” Weathers says. “It is not the kind of work we normally do, but it was a chance to impress the Stirling and Tessera engineers.”

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RIGHT. ON TIME.

But more challenges remain for this small manufacturer. “There are several solar companies headquartered in the Valley” says Weathers, “and several large installations on the drawing board for Arizona, but there is little to no manufacturing being done here.”

In the case of the Peoria project, a collaborative effort between Stirling Energy Systems and its sister company, Tessera Solar, all the manufacturing work is being done by automotive suppliers in the Midwest. The potentially high-volume demand drove Stirling to these large suppliers. But Weathers suspects there is more to the story.

“Many of the state governments back East fully appreciate the value of manufacturing jobs, and they have invested heavily in recruiting these companies with incentives,” he explains. “Unfortunately, our state severely lags in this regard, putting local manufacturers at a disadvantage. When we are getting beat out by states like Oregon and Michigan for solar power manufacturing, something is seriously wrong!”

Manufacturing jobs are typically better paying than less skilled work, and manufacturing companies are supported by a network of material, machine and processing operations that are an integral part of the economy. “Between payroll and payments to suppliers, we pump over $1.5 million into our local economy every year from our small company,” Weathers says. “That is why the press release for the Peoria project is ironic; they are touting the creating of 40 to 50 construction jobs that will last for three or four months. How about the jobs in manufacturing of the thousands of parts for the full production? That press release is in the Midwest newspapers.”

In spite of any obstacles, Excaliber won’t be surrendered to current conditions. “I am trying to get a meeting set with the supply chain executives,” says Weathers. “I want to convince them to have second sources for these parts here in the Valley. It only makes sense to have a backup plan and to cut down the shipping impact. The Valley has an outstanding precision manufacturing base; all we need is a chance to show what we can do.

He adds that the support of local governments is needed as well. “Part of the criteria for awarding the Buckeye alternative energy contract currently under bid should be the number of permanent jobs created in [Arizona],” Weathers says. I

Excaliber Precision Machining belongs to the Arizona Tooling and Machining Association, which has teamed with the Arizona Manufacturing Council to exert pressure on local government to attract and retain manufacturing businesses. infolink: excalpm.com

Hard Alloy Precision Machining Stainless Steels • Titanium • Maraging • High Temp Milling • Turning • Cylindrical Grinding Serving the Aerospace, Defense, Medical and Alternative Energy Industries Boeing (Silver Supplier) • ATK Sargent • Lockheed Martin

AS9100 Certified by DNV Mark Weathers, Owner 8737 NORTH 77TH DRIVE • PEORIA, ARIZONA 85345 P) 623.878.6800 • F) 623.878.0633 • C) 602.363.7929 mark@excalpm.com • www.excalpm.com

Grinding the Tough Stuff Blue Streak Grinding, Inc. is a modern and clean facility dedicated to providing precision grinding services of the highest quality with “Blue Streak” turnaround times.

Staffed with a compliment of experienced machine operators, engineers and management personnel, Blue Streak specializes in difficult jobs, exotic materials and tight tolerances.

With capacities ranging from one-piece research and development projects to high production quantities, Blue Streak can meet all your fine tolerance grinding needs in the aerospace industry.

An AS9100 Company

Mike Sniegowski 2821 West Willetta Street • Phoenix, Arizona 85009 Phone: (602) 353-8088 • Fax: (602) 353-8035 www.bluestreakgrinding.com

www.arizonatooling.org

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MEETING THE GROWING CHANGES OF INDUSTRY

!

EDUCATION PARTNERS Arizona Department of Education Tracy Rexroat • 602.364.0322 Arizona MEP John Little • 480.874.9100

Accuwright Industries, Inc.is a full service Metal Spray facility utilizing State of Art Robotics and Controls for precision Flame Spray applications.

Featuring Plasma Flame Spray,Twin Wire Arc Spray, Combustion Powder/Wire Spray, and HVOF (High Velocity Oxygen Fuel) Spray.

With Quality programs and certifications such as ISO 9001-2008 and FAA Repair Certificates we can meet the growing changes of your industry.Recently combined with our Metallizing capabilities, we now have the Cold Gas-Dynamic Spray (Low Pressure Cold Spray) available for specialized services.

Arizona State University/Polytechnic Campus Russ Biekert • 480.727.1119 East Valley Institute of Technology (EVIT) George Henninger • 480.461.4000 GateWay Community College Clyde Perry • 602.286.8615 Gilbert High School Mike Lemons • 480.497.0177 x 3208 Maricopa Skill Center Daniel Feldmann • 602.238.4397

Accurate Thermal Spray Technologies Accuwright Industries, Inc. Contact: David Wright 480.892.9595 (toll free 877.247.9108) www.accuwright.com

Dynamic Machine & Fabrication Corp. and

Dynamic Centerless Grinding

Mesa Community College Tom Reyman & Bob Bonura • 602.359.4804 Mesa Unified School District (Mesa High) Ken Jacox • 480.472.5880

/// welcome!

Manufacturing in Arizona for over 42 Years Serving Aerospace/Aircraft, Military, Oil Tool and Commercial Industries

SOUTWEST WATERJET CORPORATION

Quality System is AS9100 B Compliant Equip. Capacities range up to HS-4R HAAS Horizontal Milling Center @ 150” x 66” x 48” and Ikegai VTL CNC Lathe @ Ø 55” Diameter Centerless Grinding Capacities ranges from Ø1/8” up to Ø1-1/2” in Lengths up to 14’ LONG and Ø1-1/2” to Ø 3” RD With Weight Maximum of 50#

3845 E. Winslow Ave. • Phoenix, AZ 85040 602-437-0339 FAX: 602-437-8947

www.dynamic-machine.com We’re Looking Forward to Meeting and Exceeding Your Expectations!

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REGULAR MEMBER Mr. Mike Gudin, President 451 East Juanita Ave. #10 Mesa, AZ 85204 480.306.7748 Fax 480.306.7769 mike@southwestwaterjet.com www.southwestwaterjet.com Enrollment: October 2009

ASSOCIATE MEMBER Mr. Brad Zellers 11445 E. Via Linda #2473 Scottsdale, AZ 85259 480.686.9052 Fax 480.686.9511 bradz@boltinc.net www.boltinc.net Enrollment: May 2009

Southwest Waterjet Corporation specializes in waterjet cutting services.

Bolt Enterprises specializes in alarm systems/monitoring, closed circuit TV, access control systems, gates and gate maintenance.

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Klontech Industrial Sales 5730 Leith Lane, Scottsdale, AZ Phone: (480) 948-1871 email: t.kloenne@klontech.com

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MEMBER LISTINGS Associate Members

Regular Members

Bryn Aman Linda Daly Richard Short Sherry Sentgeorge Greg Whelan John Anderson Isaac Bunney Howie Basuk Brad Zellers Cindie Fry Stan Watkins Steve Blok Pam Lindley Kerry Vance Cindy Stewart Lou Gallo Randy Flores Steve Warner Eric Bolduc Grady Mickey Gartman

A 2 Z Logistix A 2 Z Metalworker Adams Machinery Arizona Bank & Trust Arizona CNC Equipment ATS Industrial Bank of America Barry Metals Bolt Enterprises Bowen & Groves Canyon State Oil Co. ChemResearch Co., Inc. City of Phoenix Consolidated Resources Creative Promotions D D i - Solidworks D&R Machinery EMJ Metals Federated Insurance Co. Gartman Technical Services, Inc.

480.991.4533 602.412.7696 480.968.3711 602.381.2079 480.615.6353 602.276.7707 602.523.2044 602.484.7186 480.686.9052 480.345.2007 602.271.9888 602.253.4175 602.262.6060 623.931.5009 480.839.9511 602.241.0900 480.775.6462 602.272.0461 800.527.5999 602.788.8121

Mark D'Gerolamo Peter Histed

Global EDM Supplies Haas Factory Outlet/ Ellison Machinery

480.836.8330 480.968.5877

Jackie Bergman Anna Lena Seedhill David Cohen John Reinhardt

HUB International I-FLEX Resource Mngmnt Industrial Metal Supply Industrial Property Specialists

602.749.4190 480.429.4508 602.454.1500 602.418.1539

Jim Hurley Tim Kloenne Barry Armstrong Doug Berg Bob Von Fleckinger Dave Valerio David Gundersen Michael Biesk Arlene Helt Ray Limon omas Moore Glen Zachman Kathy Furr Pete Hushek Steve Montgomery Mike Felix Russ Kurzawski John Drain Greg Burke Dorsey Tisdale

Industrial Tool & Supply Klontech Industrial Sales L.A. Specialties LarsonAllen, LLP Leavitt Group Machinery Sales Makino, Inc. Marshall Tool & Supply Metalwest, LLC Metco Metal Finishing Moore Tool & Equipment North-South Machinery OneBeacon Insurance Phoenix Heat Treating Phoenix Metal Trading SCF Arizona Star Metal Fluids LLC Tornquist Machinery Co. TW Metals Wells Fargo Bank

480.829.3835 480.948.1871 602.269.7612 480.615.2300 602.264.0566 602.403.7971 602.228.0347 602.269.6295 602.659.7000 602.276.4120 602.455.8904 602.466.2556 602.508.6133 602.258.7751 602.257.4660 602.631.2009 602.256.2092 602.470.0334 602.864.0014 602.522.7824

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John Cain Paul Lemaire Dave Accuwright Brandon McDermott Maxine Jones Chuck Eriksen

Az Industries for the Blind Accurate Waterjet Accuwright Aerostar / Aerospace Mfg. PPG - Aimco Facility Allied Tool & Die Company, LLC

602.269.5131 480.736.2422 480.892.4595 602.861.1145 602.254.2187 602.276.2439

John Raycraft

Arizona Precision Industrial, LLC

480.785.7474

Charles A. Van Horssen Jeff Buntin

Axian Technology, Inc. Barnes Aerospace Apex Mfg. Div.

623.580.0800 602.305.8080 x241

Tony Miglio

Bartino Tooling & Machine, LLC

602.248.7880

Norela Harrington John Bergmann Pat DeLanie Mike Sniegowski Mark Clawson

Bent River Machine, Inc. Bergmann Precision BID Machine Blue Streak Grinding, Inc. C & C Precision Machining, Inc.

928.634.7568 602.437.4940 480.892.7304 602.353.8088 480.632.8545

Keith Adams Greg Gaudet Joe Cassavant, Jr. Chuck & Kim Chicketti Steve Schwartzkopf Dustin Whaley Ron Gilmore Allen Kiesel Daniel Davis Daniel Krings John Maris David Lair

C.G. Tech, Inc. CAD Tools Company, LLC Cassavant Machining Centaur Technologies Chips, Inc. Cling's Manufacturing Continental Precision, Inc. Creative Precision West DaVia Waterjet, LLC Deck Machine & Tool, Inc. D-Velco Mfg. Of Arizona Dynamic Machine & Fabricating Corp.

623.492.9400 480.753.4290 602.437.4005 623.516.8080 602.233.1335 480.968.1778 602.278.4725 623.587.9400 602.442.4452 602.253.1080 602.275.4406 602.437.0339

Frank Eckert Joe Jackson Grant Evans

Eckert Enterprises, Ltd. EDM Express.com, Inc. Evans Precision Machining, Inc.

480.820.0380 480.813.1400 623.581.6200

Mark Weathers James Booden Jeff Hull Mike Adams Mike Saville Alex Curtis Joseph Joe Koenig Tim Malin Sam Ehret Greg Chambers Jim Bowen Joseph Sirochman

Excaliber Precision Machining Fajon Machining, LLC Foresight Technologies Futureweld Co., Inc. GST Industries, Inc. Hamilton Industries Hawkeye Precision, Inc. Helm Precision, Ltd. Inline, Inc. PPG -'Jet Facility' Joined Alloys JPS Manufacturing

623.878.6800 602.462.5993 480.967.0080 602.437.2426 480.324.0840 480.967.9339 480.926.8642 602.275.2122 602.278.9553 623.869.6749 602.870.5600 480.367.9540

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“The Right Tools. The Right Team. The Right Time.”

Regular Members (continued) Jim Carpenter Tom Wright Don Kammerzell Lee & Colleen Adams Ernest Apodaca John Lewis Michael C. Majercak, Jr. Edward Wenz Arle Rawlings Kris Swenson Paul Clark Jeff Meade Joe Tripi Robert Marusiak Mark Lashinske Tim Maack Dante Fierros R.L. Tom Osborn Louis Garcia Steve Macias Loyal Clausen James Buchanan

Kimberly Gear & Spline, Inc. K-2 Manufacturing K-zell Metals, Iinc.

L2 Manufacturing Layke, Inc. Lewis Aerospace Majer Precision MarZee, Inc. Mastercraft Mold, Inc. Matrix Machine Metal Spinning Solutions, Inc. Metalcraft Micropulse West Micro-Tronics, Inc. Modern Industries, Inc. MSL Precision Nichols Precision Osborn Products, Inc. Phoenix Grinding Pivot Manufacturing Plastic Engineering, Inc. Powill Manufacturing & Eng, Inc.

602.437.3085 480.968.6316 602.232.5882 480.829.9047 602.272.2654 623.581.0764 x101 480.777.8222 602.269.5801 602.484.4520 480.966.4451 480.899.0939 480.967.4889 602.438.9770 602.437.8995 602.267.7248 480.833.0112 480.804.0593 623.587.0335 602.437.8401 602.306.2923 480.491.8100 623.780.4100

Tony Costabile

Precision Die & Stamping, Inc.

480.967.2038

Shaun Schilling Michael Dailey Tyler Crouse John Bloom Arnie Lytle Doug Gottwald

Premier Tool Grinding Prescott Aerospace, Inc. Pro Precision R & D Specialty/Manco RMD Waterjet Robrad Tool & Engineering, Inc.

602.442.0698 928.772.7605 602.353.0022 602.278.7700 480.736.1736 480.892.2529

Paul Shelton Mark Willmering Jeff Gaffney Steven Yeary Mike Gudin Ruben Cadena Patrick Stewart, II Mike Gudin Dennis Miller Scott Higginbotham Craig Berland Todd Aaronson William Kushmaul Bill Brooks Jacque Cowin Jeremy Lutringer Bill Ankrom Robert L. Wagner Rick Erickson Geno Forman Bruce Treichler

Shelton Industries Sonic Aerospace, Inc. Southwest Swiss Precision Southwest Turbine, Inc. Southwest Water Jet State Industrial Products, Inc. PPG- Stewart Facility Southwest Water Jet Summit Precision, Inc. Sun Grinding LLC Systems 3, Inc. T.A. Custom Designs, Inc. Tech Mold, Inc. Time Machine & Stamping Tram-Tek, Inc. Unique Machine & Tool Co. Vitron Manufacturing, Inc. Wagner Engineering, Inc. Wire-Tech X-5 Manufacturing, LLC Zircon Precision Products

520.408.8026 480.777.1789 602.438.4670 602.278.7442 480.306.7748 602.275.0990 623.582.2261 x215 480.306.7748 602.268.3550 602.238.9595 480.894.2581 623.221.4922 480.968.8691 602.437.2394 602.305.8100 602.470.1911 602.548.9661 480.926.1761 480.966.1591 602.454.7385 480.967.8688

Industry Karla Texiera Fernando Jimenez Mark Dobbins

Department of Commerce Department of Commerce Arizona Manufacturing Council - AMC

Glenn Hamer

Arizona Chamber of Commerce

Hieu Tran

Arizona Manufacturing Council - AMC

MANY THANKS TO OUR 2009 ATMA VALUED SPONSORS!

FEDERATED INSURANCE ONE BEACON INSURANCE SCF ARIZONA “At work for you” www.arizonatooling.org

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CALENDAR of Events

Feb. 11, 11:30 a.m. - 1:00 p.m.

PROGRAM TEAM MEETING

MARK YOUR CALENDAR WITH THESE UPCOMING ATMA EVENTS!

RSVP: arizonatooling.org or arizonatooling@cox.net

Feb. 16, 11:30 a.m. - 1:00 p.m.

BOARD OF DIRECTORS MEETING (Third Tuesday of every month) Phoenix Airport Hilton, 2435 S. 47th Street RSVP: arizonatooling.org or arizonatooling@cox.net

Jan. 5, 11:30 a.m. - 1:00 p.m.

MEMBERSHIP & MARKETING TEAM

March 2, 11:30 a.m. - 1:00 p.m.

(First Tuesday of every month) Lewis Aerospace, 1401 W. Victory Lane, 85027

MEMBERSHIP & MARKETING TEAM

RSVP: arizonatooling.org or arizonatooling@cox.net

(First Tuesday of every month) Lewis Aerospace, 1401 W. Victory Lane, 85027 RSVP: arizonatooling.org or arizonatooling@cox.net

Jan. 7, 11:30 a.m. - 1:00 p.m.

PROGRAM TEAM MEETING

March 11, 11:30 a.m. - 1:00 p.m.

(Second Thursday of every month) JPS Manufacturing, 15651 N. 83rd Way, 85260

PROGRAM TEAM MEETING

RSVP: arizonatooling.org or arizonatooling@cox.net

(Second Thursday of every month) JPS Manufacturing, 15651 N. 83rd Way, 85260 RSVP: arizonatooling.org or arizonatooling@cox.net

Jan. 19, 11:30 a.m. - 1:00 p.m.

BOARD OF DIRECTORS MEETING

March 11, 11:30 a.m. - 1:00 p.m.

(Third Tuesday of every month) Phoenix Airport Hilton, 2435 S. 47th Street

SAFETY TEAM MEETING

RSVP: arizonatooling.org or arizonatooling@cox.net

RSVP: arizonatooling.org or arizonatooling@cox.net

Jan. 21, 11:30 a.m. - 1:00 p.m.

March 16, 11:30 a.m. - 1:00 p.m.

SAFETY TEAM MEETING

BOARD OF DIRECTORS MEETING

MicroTronics, 2905 S. Potter Drive, Tempe, 85282

(Third Tuesday of every month) Phoenix Airport Hilton, 2435 S. 47th Street

MicroTronics, 2905 S. Potter Drive, Tempe, 85282

RSVP: arizonatooling.org or arizonatooling@cox.net

RSVP: arizonatooling.org or arizonatooling@cox.net

Jan. 27, 5:00 p.m. - 8:00 p.m.

ATMA GENERAL DINNER MEETING

March 31, 5:00 p.m. - 8:00 p.m.

Phoenix Airport Hilton, 2435 S. 47th Street

ATMA GENERAL DINNER MEETING

RSVP: arizonatooling.org or arizonatooling@cox.net

Phoenix Airport Hilton, 2435 S. 47th Street RSVP: arizonatooling.org or arizonatooling@cox.net

Feb. 2, 11:30 a.m. - 1:00 p.m.

MEMBERSHIP & MARKETING TEAM

May 14, 7:30 a.m.

(First Tuesday of every month) Lewis Aerospace, 1401 W. Victory Lane, 85027

ATMA ANNUAL GOLF TOURNAMENT

RSVP: arizonatooling.org or arizonatooling@cox.net

More info at: arizonatooling.org or arizonatooling@cox.net

Feb. 10, 5:00 p.m. - 7:00 p.m.

July 28, Time TBD

ATMA/AMC MIXER

ATMA TOUR OF PING MANUFACTURING

Location TBD

(Followed by Happy Hour Meeting)

RSVP: arizonatooling.org or arizonatooling@cox.net

More info at: arizonatooling.org or arizonatooling@cox.net

INDEX OF ADVERTISERS For comprehensive advertising and media information, please email: precisionmag@lpimultimedia.com

32

(Second Thursday of every month) JPS Manufacturing, 15651 N. 83rd Way, 85260

www.arizonatooling.org

A&J Industrial Machine Repair Co. Accurate Waterjet Accuwright Industries, Inc. Arizona Bank & Trust Blue Streak Grinding Bolt Enterprises ChemResearch Co., Inc. Consolidated Resources, Inc. Dynamic Machine & Fabrication Corp.

Excaliber Precision Federated Insurance Foresight Technologies

Legacy Golf Resort

p 21 p 11 p 28 p 17 p 27 p 1,33 p 13 p 25 p 28 p 27 p IFC p3

Gartman Technical Services Klontech Industrial Sales L.A. Specialties, Inc. LarsonAllen Leach Laser MarZee Waterjet Services Nichols Precision Richter Machine & Design Sheffield Hexagon Metrology Star Metal Fluids, LLC Sun Grinding

p7 p 29 p 17 p 25 p 21 p 23 p3 p 11 p 29 p BC p5

METALHEAD

FACT:

The earliest precise metalworking lathes were in use as early as 1700!

Email your factoid to: precisionmag@lpimultimedia.com

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