Springs spring 2012 vol 51 no2 by Spring Manufacturers Institute

T h e I n t e r n a ti o n a l M a g a z i n e o f S p r i n g M a n u f a c t u r e

Spring 2012, Volume 51 Number 2

A Publication of the Spring Manufacturers Institute

t u o b A s u o i Getting Ser

Safety cult

ure 23

ductio e d x a t a th safety wi

n 31

It Pays to be Safe 46

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President’s Message From Steve Moreland

Anticipating a Safe Emergence from Economic Winter Living in Michigan we learn to survive the winter cold and snow, but we always look forward with great anticipation to the coming of spring. It is with this same great anticipation that I look forward to the next two years as your SMI president. Before I look forward, I would like to look back at the great leadership afforded SMI by our most recent past presidents Scott Rankin, Reb Banas and Dan Sebastian, all of whom I had the great pleasure of serving with on the executive committee for the past six years. I’m grateful to each of them for their amazing leadership of SMI, through especially difficult and turbulent economic and organizational times. Their skill and expertise in leading has allowed SMI to prosper and flourish in spite of these troubles. Thank you. Just like the emerging new life of spring, our economic climate seems to be emerging more confidently from its long winter season; ironically, being driven by the private sector, and more specifically the manufacturing sector of our economy. In fact, Ottawa County in West Michigan, where we are located, made national headlines recently for having the largest 12-month drop in unemployment of any county in the U.S. Who created most of those new jobs? Yes, we manufacturers did! This issue of Springs is focused on workplace safety. What an incredibly relevant topic as we add new employees who may not be aware of potential manufacturing safety hazards. We should all look at our new employee orientation programs to beef up the sections related to safety awareness and training. In our company, we recently ended a nearly three year long span with no lost time accidents, and I am aware of companies in our membership who have gone as long as a decade or more without a lost time accident. Our nearly three year long string was broken by a new hire, who, on his second day on the job, did something most people familiar with manufacturing would not likely have done. His injury was relatively minor and he was back on the job after missing only one day, but the damage was done. As springmakers, our safety focus should not be limited to worrying about the next OSHA audit and potential findings; we should also adopt a new mindset with a zero tolerance for accidents as its key objective. Only with a continuous improvement mindset and a zero accident objective can we truly hope to achieve a safe working environment for all the people we truly care about, our workforce. Here are some ideas to enhance safety in our workplace: • Education – teach everyone in the organization about safe working practices • Audits – internal, regular frequency audits for unsafe conditions • Audits – use outside consultants, like SMI’s own Jim Wood, to see what we cannot see • Awareness – continuous reminders on a regular basis • Team up with OSHA – VPP and SHARP are another way to enhance workplace safety • Safety Committees – employee involvement and awareness can be very helpful • Shared knowledge of best practices – learn from others in the industry, what is working Please enjoy this issue of Springs and drink in the wealth of ideas presented here to continue to improve safety in your own business as we are emerge from our climatic and economic winter into springtime.

Steve Moreland President, Automatic Spring Products stevemoreland@automaticspring.com

SMI Executive Committee President, Steve Moreland, Automatic Spring Products • Vice President, Russ Bryer, Spring Team • Secretary/ Treasurer, Mike Betts, Betts Spring • Immediate Past President, Scott Rankin, Vulcan Spring & Manufacturing • At Large, Hap Porter, SEI MetalTek SMI Board of Directors Tom Armstrong, Duer/Carolina Coil • Jim Callaghan, MW Industries • Ron Curry, Gifford Spring • Ann Davey, John Evans’ Sons • Chris Fazio, Diamond Wire • Kurt Gillespie, Century Spring • Richard Guimont, Liberty Spring • Gene Huber Jr, Winamac Coil • Miko Kabeshita, Ark Technologies • Steve Kempf, Lee Spring • Brett Nudelman, International Spring • Byron Ress, Zapp Precision Strip • Richard Rubenstein, Plymouth Spring • Dan Sceli, Peterson Spring • JeffWharin, Bohne Spring • Ted White, Hardware Products • Chris Witham, Motion Dynamics Springs Magazine Staff Lynne Carr, Advertising Sales, lynne@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Dina Sanchez, Assistant Editor, dina@smihq.org Sue Zubek, Graphic Designer, zubekdesign@gmail.com Springs Magazine Committee Chair, Richard Rubenstein, Plymouth Spring • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Raquel Chole, Dudek & Bock • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Brett Nudelman, International Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical Advisor: Loren Godfrey, Honorary Member Advertising sales - Japan Ken Myohdai, Sakura International Inc. 22-11 Harimacho 1-Chome, Abeno-ku Osaka 545-0022 Japan Phone: +81-6-6624-3601 • Fax: +81-6-6624-3602 E-mail: info@sakurain.co.jp Advertising sales - Europe Jennie Franks, Franks & Co. 63 St. Andrew's Road Cambridge United Kingdom CB41DH Phone/Fax: +44-1223-360472 E-mail: franksco@BTopenworld.com Advertising sales - Taiwan Robert Yu, Worldwide Services Co. Ltd. 11F-B, No 540, Sec. 1, Wen Hsin Rd. Taichung, Taiwan Phone: +886-4-2325-1784 • Fax: +886-4-2325-2967 E-mail: stuart@wwstaiwan.com Springs (ISSN 0584-9667) is published quarterly by SMI Business Corp., a subsidiary of the Spring Manufacturers Institute: 2001 Midwest Road, Suite 106, Oak Brook, IL 60523; Phone: (630) 495-8588; Fax: (630) 495-8595;Web site www.smihq.org.Address all correspondence and editorial materials to this address. The editors and publishers of Springs disclaim all warranties, express or implied, with respect to advertising and editorial content, and with respect to all manufacturing errors, defects or omissions made in connection with advertising or editorial material submitted for publication. The editors and publishers of Springs disclaim all liability for special or consequential damages resulting from errors, defects or omissions in the manufacturing of this publication, any submission of advertising, editorial or other material for publication in Springs shall constitute an agreement with and acceptance of such limited liability. The editors and publishers of Springs assume no responsibility for the opinions or facts in signed articles, except to the extent of expressing the view, by the fact of publication, that the subject treated is one which merits attention. Do not reproduce without written permission. Cover art created using images from the following: ©iStockphoto.com/Ruth Yoel

2 SPRINGS Spring 2012

Table of Contents

FEATURES

DEPARTMENTS

17 Getting Serious About Safety By Gary McCoy

2 President’s Message Anticipating a Safe Emergence from Economic Winter

21 1000 Days and Counting: Achieving Safety Without a Magic Bullet By Donna Goad 23 Safety Culture By David Lester 26 The Cost of Safety? By Scott Rankin 31 Safety With a Tax Deduction By Mark E. Battersby 37 Wellness Programs Proven to Reduce Work Comp Costs By Rebecca Shafer 40 Why and How to Conduct a Factory Tour By Hale Foote 43 SMI Members: Get With "The Program" By Mike Campbell 45 Report on the 2011 Japan Spring Machine Show By Michio Takeda

COLUMNS 13 Be Aware Safety Tips Is Your Safety Program Making You Money? By Jim Wood 15 Cautionary Tale Safety By Mark Hayes

4 SPRINGS Spring 2012

7 Global Highlights

10 Regional Spring Association Report 46 Flashback It Pays to Be Safe By Reb Banas 51

Springmaker Spotlight Hardwired for Continuous Improvement: A Profile of Incoming SMI President Steve Moreland By Gary McCoy

Inside SMI SMI Rides into San Antonio for Annual Meeting; SMI's Lynne Carr Joins NESMA and WCSMA Boards

66 New Products 67 Advertisers’ Index 68 Snapshot Torsten Buchwald, Kern-Liebers USA, Inc.

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Global Highlights North America Gifford Spring Company, established in 1984, and its employees have announced that founder Ralph Gifford has retired as of January 2012. The announcement states, “After Ralph’s 53 years in the spring industry, Melany (Gifford’s president and Ralph’s wife) is finally letting him step away. He won’t be going far — he will continue to assist us whenever he is not fishing, blacksmithing, reading or napping!” Ralph Gifford may still be reached at: rgiff@swbell. net or ralph@giffordspring.com MW Industries, Inc., a leading U.S. manufacturer of highly engineered specialty springs and fasteners, has acquired Pontotoc Spring of Pontotoc, Miss., a division of Union Spring & Manufacturing Corporation of Monroeville, Penn. Pontotoc Spring is a leading manufacturer of aftermarket coil springs. It also manufactures metal stampings for industrial, consumer and automotive applications. Bill Marcum, CEO of MW Industries, commented on the acquisition of Pontotoc Spring, “Pontotoc meets our strategic objective of continuing to identify strong companies that will further build our business. We are excited to add its strong operations, employees and customer base and anticipate expanding Pontotoc’s business as part of MW.” Allen Roye, general manager of Pontotoc Spring, added, “We are very pleased to be joining MW Industries to further build and invest in our operations. As part of MW, we will have additional resources that will allow us to continue providing an unmatched level of customer service and new product offerings for both our existing and new customers.” MW Industries is a portfolio company of Genstar Capital, a San Francisco based private equity firm. Rob Rutledge, a principal at Genstar who leads the firm’s industrial technology vertical, commented, “We are pleased with MW’s progress and are excited to be acquiring Pontotoc Spring as we continue the growth of MW organically and through acquisitions.”

and located in a nicely wooded industrial park,” said sales and marketing manager Norman Pierce. The Wire Association International (WAI), Inc. named leading economic expert, educator, and former Fed chief economist Dr. W. Michael Cox as the keynote speaker for its newly structured WAI Operations Summit & Wire Expo, May 22-23, 2012, to be held at the Omni Dallas Hotel, Dallas, Texas. Dr. Cox, director of Southern Methodist University’s Cox School of Business, will initiate the tone for this conference with his address entitled, “The Imagination Age: Fourth Wave of American Economic Progress.” He will track America’s progression through the Ages—emphasizing the current transition—and what that means for the country’s entrepreneurs, managers, and workers. In his talk, Cox investigates the main factor behind recent economic turmoil and concludes that the U.S. economy is in the midst of an epoch transition from the Information Age to the Imagination Age.

TAK Enterprises Inc. has moved to a new location in Bristol, Conn. at 150 Dolphin Road. “The new facility is much bigger and allows us to now have a separate staging area for the turnkey systems we now offer, a larger production and inventory space as well expanded office and engineering spaces. Lastly we have been able to establish a dedicated application and demonstration room that will be capable to present our full line of products. The building is more modern SPRINGS Spring 2012 7

Additional features of the conference program include case studies, conference sessions, and production solutions surrounding an operational excellence theme. Highlights include safety; ecostrategies; patent law; machinery reliability; commodity outlooks; warehousing and distribution fuel and truck options; the encore success story; and logistics. Local hosts Encore Wire Corp. and Gerdau Corp. will offer facility tours. The Wire Expo exhibition is expected to include participation from more than 250 companies displaying wire and cable making solutions and supplies.

WAI’s event will be held in conjunction with the American Metal Market (AMM) & American Wire Producers Association (AWPA) Wire Rod Supply Chain Conference (SCC) planned for May 21-22. For more information, visit http://www.wirenet. org/events/wireexpo/attendee.htm.

Danly IEM has announced the celebration of the company’s 90-year anniversary. Founded in 1922 by father and son Robert C. Danly and Philo H. Danly, Danly was started to serve diemakers and the metal stamping industry. Their dream was to make top quality technology affordable for any size business. Danly introduced the guide post die set as a manufactured product, then pioneered the concept of interchangeable components and later following World War I, expanded its line to provide a choice of durable all-steel die sets, semi-steel die sets and commenced the torch cut method of manufacturing. The company’s commitment to quality during 50+ reasons to select Elgiloy as your exotic alloy supplier. World War II led the United States government to recognize Danly with its prestigious “E” award for consistent production quality and delivery. After World War II, Danly became the first press manufacturer to introduce the Strip & Foil Wire & Bar principle of quick die change to Strip, Foil, Wire and Bar. Elgiloy Elgiloy the stamping industry. Through Precision rolled strip: .001 to .100 the later years, employee pride Haynes Alloys Hastelloy B3 Wire diameters: .001 to .825 and teamwork helped Danly Bar diameters: .062 to .750 Hastelloy B3 Hastelloy C22 Shaped wire continue to grow and innovate. Hastelloy X Hastelloy C276 IEM became part of the Danly 10 lbs to 10 tons, delivered to meet your schedule. Hastelloy C22 Inconel 600 family in 1989, which introduced Hastelloy C276 Inconel 601 self-lubricating bushings, heel To find out more, contact us at wire@elgiloy.com Inconel 600 Inconel 625 blocks, maintenance-free wear or strip@elgiloy.com or call 888-843-2350. products, in-die tapping units and Inconel 601 Inconel 718 aerial and diemount cams to the Inconel 625 Inconel X750 market. Inconel 718 Monel Alloys Rolling to Meet Your Schedule Over time, the mission for Inconel X750 MP35N Danly IEM was to be the leading Incoloy 800 Nimonic 90 worldwide supplier to the parts Alloy L 605 NiSpan C for ming industry. By 2003, Monel 400 Rene 41 Lempco Industries was acquired by Connell Limited Partnership, Titanium Alloys Alloy 20 CP Grades 1,2,3,4,7,9,11 Danly’s parent company, and A-286 Elgiloy Specialty Metals Beta 21S consolidated into the Danly IEM www.elgiloy.com AL6XN business. In 2005, Danly IEM Elgiloy is a trademark of Elgiloy Specialty Metals Rene 41 300 Series MP35N is a trademark of SPS Technologies merged with Anchor Lamina Haynes 25 is a trademark of Haynes International, Inc. Stainless providing expanded product

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breadth, manufacturing capacities, technical ability and services. Today, corporately known as Anchor Danly, the company is a diversified global manufacturer with several strategically located facilities throughout North America, China and Europe and serves a range of industrial markets with dies sets, steel plate, fabrications, die components, cams, springs and hydraulic motors and accessories. “Our key advantage in working with our customers is that our team is driven to be constantly improving the speed, accuracy and reliability of our products and to find innovative solutions, which enable the success of our customers,” explains Roy Verstraete, president and CEO of Anchor Danly. “What once began as a vision 90 years ago now remains as a company at the forefront of the metalworking, plastic molding and heavy metal fabrications industries offering quality products, innovation and outstanding service and support.” JN Machinery welcomes Devon Remington to the company as their new marketing manager. “I’m bringing new ideas to the table and rebuilding the image of JN from scratch,” Remington said. “I’ll be managing marketing, advertisements and promotional materials to bring a new look to JN.” JN also announces an Open House at their East Dundee, Ill. facility, August 16-18, to celebrate the facility’s one year anniversary. Company president Daniel Pierre stated, “This event will allow customers to view what JN Machinery does first hand, meet the JN family, while also having a good time with a barbecue. Even better, the food will be cooked with one of our very own JN ovens! So, save the date as JN Machinery does not want you to miss out on this well-anticipated event.”

International Springs columnist Mark Hayes started a new business, Spring Expert, to deliver independent and confidential advice and training to the supply chain for springs. Based on more than 30 years of experience in the steel and spring industry, Hayes’ available services include information on the quality requirements for the raw materials to make springs; advice for optimization of spring manufacturing processes; consultations on spring design, including methods to reduce the risk of failure; problem solving for raw material quality, spring design, or failure prevention; and training at a basic or advanced level, including courses given on behalf of the Institute of Spring Technology.

For further information, visit www.springexpert. co.uk or contact m.hayes@springexpert.co.uk. Japan Society of Spring Engineers (JSSE) held its Autumn Technical Meeting and the Japan Spring Machine Show 2011 at Plaza Industry Ota (PIO) in Ota Ward, Tokyo in November (see related story on p. 45). Five ordinal lectures, two committee reports, and one special lecture, “Can small businesses in Ota survive utilizing patents?” by Kenichi Kumakura of Kumakura Corporation, were provided in the convention hall. Eight technical posters were displayed and explained by the researchers. Three of them were given awards based on the participants’ votes. A reception was held following the technical meeting. Dr. Motoaki Osawa, deputy chairperson of the JSSE, made the opening remarks, followed by the congratulatory speech by Takehiko Amaki, chairman of Japan Spring Manufacturers Association (JSMA). The Japan Spring Machine Show is a biennial business trade show dedicated exclusively to the production of springs, exhibiting machines for making springs, machinery and tools related to those machines, materials for springs, and measuring equipment. More than 30 companies showed their latest machines and technologies at this year’s show. u

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Regional Spring Association Report NESMA 2011 At a Glance By Ted White

In 2011 the New England Spring and Metal Stamping Association (NESMA) spent a great deal of time trying to tweak the organization so that it remains relevant to the members at a time when trade organizations seem to be suffering. Two new members were welcomed to the board, Tim Dudzinski of Tollman Spring and Michael Brault of Ultimate Wire Forms, and L ynne Carr of the Spring Manufacturers Institute (SMI). The presidency changed hands from Bill Lathrop of Colonial Spring to George Fournier of Acme Monaco. The board formalized its review of many different aspects of the organization. NESMA maintained its three big events in 2011 (a trade show on April 19, the annual golf outing on September 12 and the Christmas Party on December 7), and worked diligently to upgrade each event. The trade show was re-branded from its old “table top” format, and the new format yielded a markedly increased number of participants, in ter ms of both display and attendance. In addition, ESPN founder Bill Rasmussen spoke at the dinner which concluded the trade show. Not only did the golf outing have an increased number of players, but the dinner meeting which followed was also the largest in recent memory. The holiday party, which has grown regularly for the last few years, once again had more

10 SPRINGS Spring 2012

A special recognition award was presented to David Merrills, Industrial Steel and Wire (center) by NESMA president George Fournier (left), and Scott Kirkpatrick, Radcliff Wire (right).

attendees than anyone could recently remember. This year, Charter Member Recognition Awards were given to Associated Spring Barnes Group, Connecticut Spring and Stamping, Colonial Spring Company, D.R. Templeman Company, Newcomb Spring Corporation, Peck Spring, and Springfield Spring. In addition, David Merrills of Industrial Steel and Wire, who is retiring this May, was given a special Recognition Award for his many years of dedicated service to NESMA. NESMA also continued its many outside pursuits. The technical school system in Connecticut continues to be re-evaluated in light of the fiscal crisis facing all state budgets. In addition to supporting Bristol Technical School directly, many members of the board and of NESMA itself attended these meetings to express their support for the technical system. NESMA also made its second large payment to the Main Street Community Foundation so that the NESMA scholarships could be maintained in perpetuity.

Finally, NESMA continued its ongoing discussion of becoming a more political voice for the spring and stamping industries and expanding its membership throughout New England. NESMA had looked into the possibility of directly engaging a lobbyist, but the cost was prohibitive. NESMA is trying to find a way to more politically represent its members while remaining within an acceptable budget. Fortunately this desire is greatly enhanced by NESMA’s association with the Central Connecticut Chamber of Commerce and the dedication of Cindy Scoville. For additional information on NESMA, visit www.nesma-usa.com.

WCSMA Will Hold Spring Fling 2012 T h e We s t C o a s t S p r i n g Manufacturers Association (WCSMA) will hold their “Spring Fling 2012” at Harrah’s in Laughlin, Nev. from May 18-20, 2012. Room rates are $69 per night and can be made directly with the hotel at (877) 881-5955. Be sure to

give the hotel your WSCMA group reservation code (S05WCP2) to get the discounted room rate. A golf tournament is scheduled for Saturday, May 19 at the Laughlin Ranch Golf Club at $45 per person. Contact Trully Pittman to participate in the golf

tournament at (909) 938-8100 or email tpittman@ulbrich.com. A Saturday evening dinner will also be held. Tickets are $55 per person. For additional information on WCSMA, visit their Facebook page or www.wcsma.us.

CASMI Golf Outing Set for June 6 The Chicago Association of Spring Manufacturers, Inc. (CASMI) will hold its annual golf outing and dinner at The Highlands of Elgin in Elgin, Ill. on Wednesday, June 6. The course has received many accolades from GolfWeek magazine, including its 2011 ranking as #12 among “Best New Courses in America.” CASMI has held a series of monthly meetings during the first part of 2012. Dean Santopoalo presented “Focused in Leadership: Developing Strong and Forward Thinking Leaders” during the January 19 meeting. Santopoalo said, “Leadership is a tough, risky, complex, frustrating and often a lonely business.” He emphasized that leadership is “not about me. It’s about service to others by helping them do their very best.” On February 16, William A. Strauss, senior economist and economic advisor for the Federal Reserve Bank of Chicago, provided an update on the state of the nation’s economy. In his remarks, Strauss said the outlook is for the U.S. economy to expand at a pace below trend this year and slightly above trend in 2013.

Dean Santopoalo

“Employment is expected to rise moderately,” said Strauss, “with the unemployment rate edging lower.” He said slackness in the economy will lead to a relatively contained inflation rate. In regards to the automotive sector, Strauss said vehicle sales are anticipated to rise at a good pace and that growth in manufacturing output should be solid.

Peter Philippi, president and founder of Straegex, Inc. was scheduled to address CASMI’s March meeting and in April the group planned to tour Anchor Abrasives in T inley Park, Ill. followed by a dinner at Odyssey Country Club. For more information on CASMI, visit www.casmi-springworld.org or phone (630) 369-3466. u

SPRINGS Spring 2012 11

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Be Aware

Is Your Safety Program Making You Money? Safety Tips

By Jim Wood

t could be! That a good safety program costs money is a misconception. With a good safety committee, employee training and commitment, your safety program can actually be a profit center for your company. An effective safety and health program depends on the credibility of management’s involvement in the program; inclusion of employees in the safety and health decisions; rigorous work site analysis to identify hazards and potential hazards; stringent prevention and control measures; and thorough training. It addresses hazards, whether or not they are regulated by government standards. Lost workday accidents can be very costly. Workers’ compensation has become a major operating expense, and that is just the tip of the iceberg when analyzing the cost of an accident. Hidden costs, such as lost production, late deliveries, spoiled product, schedule adjustments and lower work force morale can cost far more than the obvious fixed costs. Studies have shown that the obvious fixed cost of an accident can be more than doubled when figuring the total cost. Did you know that a typical treatment for carpal tunnel syndrome can cost over $30,000? Safety programs can vary from company to company, but they all have the same goal – to eliminate accidents. The most successful programs are built around employee training.

Why Do You Train? The real goal of training is not training, the real goal is learning. Unfortunately, this is what frequently Jim Wood is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A certified instructor of the OSHA Out-Reach Program, Wood conducts seminars, plant Safety Audits and In-House Safety Trainings. These programs help companies create safer work environments, limit OSHA/Canadian Ministry of Labor violations and insurance costs, and prepare for VPP or SHARP certification. He is also available for safety advice and information by phone at (630) 495-8597 or via e-mail at regs@smihq.org.

©iStockphoto.com/Alex

Hidden costs, such as lost production, late deliveries, spoiled product, schedule adjustments and lower work force morale can cost far more than the obvious fixed costs. Studies have shown that the obvious fixed cost of an accident can be more than doubled when figuring the total cost. happens: Trainers tell stories of training that didn’t work, production workers make the same mistakes, workers refuse to wear the proper personal protective equipment, and supervisors over-appraise and undercounsel the workers. Make sure this doesn’t happen in your company. Instead, train to the need. T raining is needed when there is a lack of appropriate knowledge, skills and/or attitudes. Once it is determined that a potential problem exists, the training must be directed to the need. “Safety First” may sound good, but in reality, safety should not be considered separately; rather it must become a basic value of your company. Changing “Safety First” to “Safe Production” should be your only standard. This emphasizes the idea that it’s fine to produce as hard and as fast as possible, as long as it can be done safely.

SPRINGS Spring 2012 13

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14 SPRINGS Spring 2012

Motivation/Incentive Many companies tie an incentive program in with a good safety program. There can be bonuses or contest prizes. Awards programs are a way for management to demonstrate to employees that they are pleased with their performance. It also shows management support and involvement with safe work behavior. Four Simple Rules for Creating an Incentive Program 1. Keep it simple. Reward employees based on injury-free days. Do not include minor first aid where a doctor’s services are not required. 2. Make the reward desirable. Get some input on this from your employees. Remember, it is better if many people get a more modest prize than one person getting a super prize. 3. Make the reward attainable. A large reward at the end of an accident-free year is nice, but without incremental rewards along the way, the reward seems so distant that day-to-day awareness is limited. 4. Tie the reward to something over which employees have control. If you neglect to do this, employees will become frustrated when they feel that the incentive really is not a measure of their performance. The Bottom Line An incentive program can actually save money. The plan does not have to be expensive. Most well thought out plans more than pay for themselves, and more, after just a few months. Even a minor lost workday accident can cost thousands of dollars. Remember, an incentive program alone does not make a good safety program, it is simply an aid. A good safety program needs: • Management commitment • Employee involvement • Work site analysis • Hazard prevention and control • Safety and health training Jim’s Regulatory Tip: I urge all springmakers to consider your states’ OSHA Consultation Programs. All states have these voluntary protection programs. State programs may have different names such as: VPP, SHARP, Star, etc., but they all have the same benefits for the manufacturer. State consultation is sponsored by OSHA but is not part of OSHA. They are operated by your states’ department of labor, state universities, department of commerce or department of human resources. Once you have been certified in your states’ program, you will not only have a safer, more profitable company, but you will be exempt from OSHA programmed inspections. And did I mention, the consultation is free. u

Cautionary Tale: Safety Spring Technology

By Mark Hayes

afety in spring design and within the spring manufacturing process can take many forms, and a Cautionary Tale on this subject is by its nature a summary of points raised during the last 50 Cautionary Tales written for Springs. Each article contains advice about how to stay safe in the spring industry and how to avoid pitfalls that the Institute became aware of in the normal course of business. As pressure grows from both spring end users and from material supply costs, most spring manufacturers have reduced costs through improved designs and weight reductions. Testing spring materials has increased, with the knowledge of fatigue life and relaxation characteristics now available. A number of spring design software packages exist and are continually being updated to provide the design engineer with an optimized design. These are vital to reducing the pre-production phase on any new design, but the nature of the beast is leading towards life cycle testing of the final design. This is increasingly important so that the spring user can be confident the design will meet the safety critical application for which it is intended. It is worth mentioning here that material suppliers are equally aware of this aspect and continue to improve the material characteristics for these applications. Springs remain a vital part of many safety critical designs and their range of working environments continues to expand; from deep sea applications to outer space, within some highly corrosive atmospheres and with temperature sensitive applications. Some IST staff members have been invited to visit manufacturing plants during our visits to countries where health and safety concerns are not top priorities, and safety inspections are virtually unknown. During Mark Hayes is Technical Advisor to the Institute of Spring Technology (IST) in Sheffield, England. He is also the principal trainer for the spring training courses that the Institute offers globally. Readers are encouraged to contact IST with comments about this cautionary tale, and with subjects that they would like to be addressed in future tales, by email ist@ist.org.uk.

one visit, we watched the coiling of springs on a coiler. When the wire ran out the next coil was brought and threaded up. The setter had not used the machine guard so far, and it looked as if it may never have been used. So the setter was surprised that IST insisted on its use. Reluctantly the setter did as he was asked, but didnâ&#x20AC;&#x2122;t immediately ask why. The first two springs coiled okay and the setter again said the guard was not necessary. But IST continued to insist on its use, and rightly so, because the third spring broke and a piece of it hit the guard, which did its job â&#x20AC;&#x201C; saving the operator and observers from serious injury. The setter then asked how we knew there was a risk, as he had inspected the tools on his coiler, which, surprisingly, were undamaged. He threaded up the wire and continued to use it without further mishap, and during a subsequent visit two years later, we noticed that he was still using the guard, but that none of his fellow setters did. Even though some equipment designs have been updated to include the latest guarding requirements, these requirements continue to be improved and refurbishment of older equipment is often preferred to new purchases. Safety on the shop floor is one thing, but many springs are in safety critical applications which need to operate as designed. The safety relief valve is the most obvious one to use to demonstrate this aspect. Relief valves used to be simple heavy weights that would lift if the pressure inside a vessel exceeded the set value. English railway engineer John Ramsbottom observed that these valves could be tampered with by adding extra Figure 1. weights or locking them down to get Ramsbottomâ&#x20AC;&#x2122;s a bit more performance on steam tamper-proof safety trains. Realizing the safety risk, in relief valve for railway steam engines 1856 he invented the tamper-proof device shown in Figure 1. This remains an important market for springs today. The moral of this Cautionary Tale: Stay safe while designing and manufacturing components that will keep others safe. u

SPRINGS Spring 2012 15

SPRING WORLD® 2012

Donald E Stephens Convention Center Rosemont, IL October 3-5, 2012 CASMI is proud to cheer for all of the Champions of the Spring Manufacturing Industry Manufacturers and Suppliers.

2012

We’re Proud to Be on Your Team!

www.casmi-springworld.org

Exhibitor applications are now being accepted. For information visit our website or call 630.369.3466.

Be proud that you are part of an industry that provides vital parts for all sectors of manufactured products. Truth.

Almost nothing man-made moves without springs.

Truth.

It takes knowledge, skill and experience to be a successful spring manufacturer.

Truth.

A complete supplier support system of equipment, materials, test equipment and services are required to maintain the spring manufacturing industry.

Be Proud. Success in this industry, whether manufacturer or supplier, demands championship performance.

Be Proud. Together at SPRING WORLD® we share remarkable achievements in applying

the latest technologies to create more productive machinery, advancements in metallurgy and fabrication of production materials, a higher level of quality and consistency of product and the means to measure it. These efforts enable improvements in products we all use and the tools to make them.

Be Proud. Your work contributes to the improvement of the quality of life for people from

all corners of globe.

16 SPRINGS Spring 2012

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SPRINGS Spring 2012 17

Two Decades of Elevating safety

orkplace safety is an important value for SMI and its member companies. That’s why SMI has a regulatory compliance program in place. Jim Wood has headed up SMI’s program for nearly 20 years. During that time he has made over 550 visits to springmaking plants for safety audits and training. So he’s seen just about everything associated with the subject of safety. Wood explained that when he first started with SMI, the spring industry was not very safe and “people hardly guarded anything.” Wood said he was bound and determined before leaving SMI and the spring industry, to leave it a safer place.

18 SPRINGS Spring 2012

Spring 2012

Quick Reference Supplier Guide

The companies listed below are among the most prominent suppliers to the spring industry. Each of these companies, presented here under product or service category, advertises in every issue of Springs. Though their products and services vary widely, these companies can all be characterized by their enthusiastic willingness to serve the needs of spring manufacturers. Coilers/Wire Formers

A & D Trading David Janowski (440) 563-5227 www.adtradingllc.com Forming Systems, Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 HTC TBE JayKase Whitelegg www.formingsystemsinc.com Gibraltar Corp. Michael Shapiro (847) 769-2099 Fax: (847) 913-4528 www.gibraltar8.com Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 Simplex Rapid/SECEM www.nimsco.com RK Trading Company Rob Meyers (847) 640-9771 Fax (847) 640-9793 Herdon, Bobbio

Furnaces / Ovens

HSI/Forming Systems, Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com JN Machinery Corp. Daniel Pierre III (224) 699-9161 Fax: (224) 699-9286 www.jnmachinery.com Precision Quincy Mike Koontz (815) 338-2675 Fax: (815) 338-2960 www.precisionquincy.com

Grinders

Bennett Mahler/NIMSCO Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 www.nimsco.com OMD/Emanon/Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Spring Manufacturers

Century Spring Kurt Gillespie (213) 749-1466 Fax (213) 749-3802 www.centuryspring.com

Spring Manufacturers

Diamond Wire Spring Co. Frank Fazio (800) 424-0500 www.diamondwire.com Vulcan Spring & Manufacturing Co. Bob Gustafson (215) 721-1721 www.vulcanspring.com

Testers/Measurement

IST/NIMSCO Jerry Jacques Fax: (563) 445-0710 (563) 391-0400 www.nimsco.com Larson Systems Bruce Hill (763) 780-2131 Fax: (763) 780-2182 www.larsonsystems.com Proto Manufacturing Ltd. Robert Drake Fax: (519) 737-6330 (800) 965-8378 www.protoxrd.com Spring Analysis Systems Inc./Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Trade Associations

Spring Manufacturers Institute Lynne Carr (630) 495-8588 Fax: (630) 495-8595 www.smihq.org CASMI Tom Renk (630) 369-3466 Fax: (630) 369-3773 www.casmi-springworld.org

Wire Straighteners

Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 SECEM www.nimsco.com

Wire/Strip Materials

Admiral Steel (800) 323-7055 Fax: (708) 388-9317 www.admiralsteel.com Alloy Wire International Ed Sierman (866) 482-5569 Fax: (401) 384-6757 www.alloywire.com

Wire/Strip Materials

Elgiloy Specialty Metals Gene Kunos Fax: (847) 695-0169 (847) 695-1900 www.elgiloy.com Gibbs Wire and Steel Bill Torres (800) 800-4422 Fax: (860) 628-7780 www.gibbswire.com Industrial Steel & Wire Dave Ritter (773) 804-0404 Fax: (773) 804-0408 www.industeel.com InterWire Frank Cardile Jr. Fax: (914) 273-6848 (914) 273-6633 www.interwiregroup.com Kiswire Trading Inc. Wan Dong Kim (201) 461-8895 Fax (201)461-8021 www.kiswire.com Lapham-Hickey Steel Dave Conrad (708) 496-6111 Fax (708)496-8504 www.lapham-hickey.com Mapes Piano String Co. Bob Schaff Fax: (423) 543-0118 (423) 543-3195 www.mapeswire.com Precision Steel Warehouse Inc. Steve Kraft (847) 455-7000 Fax: (847) 455-1341 www.precisionsteel.com Radcliff Wire Inc. Scott Kirkpatrick (860) 583-1305 Fax: (860) 583-6553 www.radcliffwire.com Suzuki Garphyttan Wire Kirk Manning (888) 947-3778 Fax: (574) 232-2565 www.suzuki-garphyttan.com Tool King Inc. Peter Hestad (800) 338-1318 Fax: (847) 537-6937 www.toolkinginc.com Ulbrich Stainless Steels & Special Metals Inc. Rich Papeika (800) 243-1676 Fax (203) 239-7479 www.ulbrich.com United Wire Co., Inc. Bob Swanson (800) 840-9481 Fax (203) 752-1762 www.unitedwirecompany.com Zapp Precision Strip Byron Ress (203) 386-0038 Fax: (203) 502-6681 www.zapp.com

Spring 2012

Quick Reference Supplier Guide

A & D Trading David Janowski (440) 563-5227 www.adtradingllc.com Forming Systems, Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 HTC TBE Whitelegg JayKase www.formingsystemsinc.com Gibraltar Corp. Michael Shapiro (847) 769-2099 Fax: (847) 913-4528 www.gibraltar8.com Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 Simplex Rapid/SECEM www.nimsco.com RK Trading Company Rob Meyers (847) 640-9771 Fax (847) 640-9793 Herdon, Bobbio

Furnaces / Ovens

Grinders

Bennett Mahler/NIMSCO Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 www.nimsco.com OMD/Emanon/Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Spring Manufacturers

Century Spring Kurt Gillespie (213) 749-1466 Fax (213) 749-3802 www.centuryspring.com

Spring Manufacturers

Diamond Wire Spring Co. Frank Fazio (800) 424-0500 www.diamondwire.com Vulcan Spring & Manufacturing Co. Bob Gustafson (215) 721-1721 www.vulcanspring.com

Testers / Measurement

Trade Associations

Spring Manufacturers Institute Lynne Carr (630) 495-8588 Fax: (630) 495-8595 www.smihq.org CASMI Tom Renk (630) 369-3466 Fax: (630) 369-3773 www.casmi-springworld.org

Wire Straighteners

Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 SECEM www.nimsco.com

Wire/Strip Materials

Admiral Steel (800) 323-7055 Fax: (708) 388-9317 www.admiralsteel.com Alloy Wire International Ed Sierman (866) 482-5569 Fax: (401) 384-6757 www.alloywire.com

Wire/Strip Materials

www.lapham-hickey.com

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The Safety Audit Being trained by the Occupational Safety and Health Administration (OSHA) and having conducted hundreds of safety audits during his career, Wood says it’s easy for him to immediately see safety violations when he walks into a plant. But before he looks at anything, Wood says he can usually predict whether a work environment is safe or unsafe by the attitude of the workforce. “When I walk into a plant and it’s clean, has good lighting and the people’s attitudes are good, invariably I find fewer violations.” He says the opposite is true if he encounters a dirty, dingy place occupied by sullen workers: Many more workplace violations. Wood says ultimately attitude starts at the top. “If a general manager wants a safe plant he’s going to have a clean plant, a well-lit plant because that’s the culture he’s going to prefer for his people.” He says employee training is absolute essential to safety. And he says training is more than just handing out pamphlets and having people watch videos. Wood says training must be taken seriously and done on a regular basis.

Wood recalls the CEO of a springmaking company who called several years ago requesting a plant audit. “It was a very large plant and it took three days. After the audit I wrote him literally a book because of the number of violations I found. The CEO took this very seriously. He actually hired three maintenance men for the sole purpose of correcting all the violations I found. It took them almost a year. “Shortly after they finished, OSHA came to his door wanting to audit the plant. OSHA also spent three days in his plant. After OSHA’s inspection, in the closing conference they stated that he was violation free. A week later the OSHA area director showed up asking if he could use the company as their poster child for show and tell. The springmaker refused, stating that he did not want to set a precedent for the industry.” Wood cites this as a great success story for SMI’s regulatory compliance program. But as Wood points out: “It only happened because this CEO took safety very seriously.”

PRECISION

By every measure, including SMI’s annual Safety Survey, the industry is much safer than when Wood began working with SMI in 1993. Wood doesn’t pat himself on the back for this. He says it’s to the credit of the leaders in the spring industry who’ve made the necessary changes to prioritize safety. Despite all the progress, Wood said there’s still work to be done and people still tend to put safety on the back burner. “If times get a little tough, safety is the first thing to go. But that’s when safety should take priority.” He believes safety has to be a part of the culture at every springmaking plant. “Everybody concentrates on quality, but safety should be right there beside quality,” Wood explains. A passion for safety permeates Wood’s work. He believes safety should be a “daily project” for every springmaker so that when employees check in for work each day it is at forefront of their mind. “Everyone should have a safety committee,” he says with urgency. He believes a plant safety committee should be comprised of people from every department and that management has to be part of it. Speaking from experience, Wood cautions that a safety committee “won’t work without management buy-in.”

E-Mail: lhsales@lapham-hickey.com Toll Free: (800)323-8443

SPRINGS Spring 2012 19

Don’t Rely Totally on Workers’ Compensation Inspectors Jim Wood says don’t believe one of the biggest safety fallacies that workers’ compensation insurance inspectors will protect your company from workplace injuries or OSHA violations. “Workers’ compensation insurance inspectors are insurance people,” explained Wood. “They are excellent in protecting you against insurance losses. But very few of these inspectors know anything about OSHA law.” Design Pics/Punchstock

Unfortunately, Wood has seen the other side where a 40-page inspection report that he’s carefully written is simply filed away and no corrective actions are taken. “I’ve come back two or three years later and that report is in the bottom drawer and they haven’t done anything I’ve recommended. I’ve seen this more than once. That’s one of the problems, companies will have me in and then ignore the report.”

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20 SPRINGS Spring 2012

Wood has come into plants after these inspectors have completed their review and found dozens of OSHA violations. At one time, Wood actually trained these inspectors and took them into manufacturing plants to point out violations. “The insurance inspector can come in and tell you to do these six things,” said Wood. “A company will do these six things, yet OSHA comes in later and finds 50 more things the inspectors overlooked because they don’t know OSHA law.”

Woods says it happens, “not often,” but it happens. He says this type of thinking is a “roll of the dice” mentality. The reality, says Wood, is that they are not just taking their chances with OSHA, they’re taking chances with worker safety. “You just can’t put a price on someone’s safety,” warns Wood.

Those Who Take it Seriously In this issue, we feature a trio of safety articles written by SMI members Scott Rankin of Vulcan Spring and Manufacturing Company, Donna Goad of R&L Spring Company and David Lester from Rockford Spring Company. You’ll find out how these companies make safety a high priority and at the core of their company’s DNA. Our two columnists, Jim Wood and Mark Hayes, also address the subject of safety. To give you some incentive to be safe, writer Mark Battersby explains how springmakers can take advantage of tax laws to fund safety at their facilities. In addition, our regular feature called “Flashback” reprints “It Pays to be Safe,” an article written by past SMI president Reb Banas. It was originally published in the Fall 1998 issue of Springs. In my limited time as editor of this publication, it has been my privilege to visit many springmaking operations. I’ve seen many things, including well-designed shop floor layouts, excellent lighting, and clean floors. But most of all I’ve been blown away by how many SMI member companies make safety a top priority. Wherever you are on the safety continuum, determine to read this issue with the goal of increasing the safety of your springmaking operations. Be safe.

Getting Serious About Safety

1,000 Days and Counting: Achieving Safety without a Magic Bullet By Donna Goad

n February 13, 2012 R&L Spring Company in Lake Geneva, Wisconsin reached a milestone with our company safety program. That’s the day we reached 1,000 days of no lost time injuries. There was no magic bullet that got us here; just a lot of support from management, employee involvement and communication. We started this journey by making safety a priority and creating a safety culture. The safety of our employees is a top priority. John Romano, R&L Spring’s executive vice president says, “For me as a business leader, the worst thing that could happen would be for one of our employees to be seriously injured.” No one wants to work for a company who doesn’t care about safety or perform a job that is unsafe. We need good employees to be successful. So we started a program about four years ago called “Safety Notifications,” that helps identify safety issues within the plant. Our safety manager conducted unscheduled plant walk throughs to identify opportunities for accidents to occur. Each notification was assigned a priority and team to perform corrective actions. We took advantage of resources, such as Jim Wood from SMI, who visited our facilities and identified several opportunities for us to improve plant safety. We also worked closely with our workers' compensation

SPRINGS Spring 2012 21

insurance company who provided the same services. At our year-end employee meeting we communicated a bottom-line $60,000 savings on our workers' compensation insurance premiums based on our improved safety record. This was especially exciting news because the savings to the business contributes to our profitability, which is a metric for our bonus program. That got everyone’s attention; not only is safety important but we can all benefit from it financially. There are so many more contributing factors; we embraced 5S (sort, set-in-order, shine, standardize, and sustain) and safety was one of the first opportunities for improvement. We created cells and the team leaders conduct their own monthly safety walk throughs with the help of a department checklist. We expanded our safety committee to include management and team leaders. We conduct quarterly employee meetings and start each meeting off with a safety report. An Employee Ideas Program was implemented and employees were empowered and encouraged to submit safety-related suggestions. The awareness that anyone can call out a safety issue was well received. In preparing for our 1,000 day safety celebration, we looked for statistics to compare ourselves to

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22 SPRINGS Spring 2012

our counterparts in the spring industry as well as manufacturing in general. Jim Wood provided us with information to support our belief that this is truly a special achievement. In fact, he believes we may be in the top ten. Based on 100 employees working 2,000 hours each year, the following was reported. • Last year in all U.S. manufacturing, companies had an average of 3.2 lost work days. • Last year in the spring industry, companies had an average of 2.4 lost work days. • Last year, R&L Spring had zero lost workdays. • Last year in all U.S. manufacturing, companies had an average of 6.2 reportable injuries or illnesses. • Last year in the spring industry, companies averaged 5.0 reportable injuries or illnesses. • Last year, R&L Spring had 2.9 reportable incidents. None resulted in lost time. OSHA statistics are even more astounding. According to the OSHA “Injury and Illness Prevention Program White Paper” published in January 2012: . • More than 4,500 hundred workers lose their lives to work-related accidents each year. • More than four million are seriously injured each year. • Tens of thousands more die or are incapacitated because of occupational illnesses including many types of cancer and lung disease. What we didn’t want to happen was for our people to stop reporting accidents. We communicated the importance of employees’ notifying us of unsafe conditions or accidents so that practices could be developed to prevent future incidents. If we don’t know what the potential hazard is we can’t put preventative safety measures in place. With top management and ownership support, participation by employees, and a “find and fix it” approach we have created a culture committed to safety first. On February 13, 2012 we celebrated reaching 1,000 days of no lost time injury with lunch and a fleece jacket for each employee. We reviewed our safety program, celebrated our success and got feedback on future ideas and involvement. Now it’s time to look forward to our next milestone: 1,250 days without lost time accidents! Donna Goad is the human resources manager for R&L Spring Company in Lake Geneva, Wisconsin. She may reached by email at dgoad@rlspring.com.

Getting Serious About Safety

Fuse/Punchstock

Safety Culture By David Lester

fully vested safety culture is one of the least utilized but most beneficial programs a company can have. So what do I mean by fully vested? There has to be “buy-in” from top management down to the newest employee and everyone in between. Every employee needs to be aware of not only the safety rules but the benefits of working safely. They need to understand that the company is truly concerned for their wellbeing and not only about the expenses that come with employee injuries. So before considering the “How’s” of a safety program you need to be sold on the “Why’s.”

The Financial Aspects of Safety First let’s take a look at some of the financial reasons to develop a safety culture in your business. The following excerpt is from the Cal/OSHA website: “… injuries and illness increase the cost of doing business. These direct costs to the workplace can include medical treatment, higher workers’ compensation insurance premiums, indemnity, and litigation. On average, costs per injury can add up to more than $50,000.00 for a back injury, $62,000.00 for a slip and fall injury, and $40,000.00 for a carpal tunnel or repetitive motion injury. These costs do not include additional indirect

SPRINGS Spring 2012 23

costs associated with injuries and illnesses such as lost productivity, re-training, hiring new employees, administrative time, repair and replacement of equipment, etc.” To put a finer point on it, these direct costs come straight off the bottom line. When taking both direct and indirect costs into account, at a 10 percent profit margin, it could take as much as $1,350,000 in sales to cover the affect on the bottom line. You can easily calculate some of the cost that we just identified, but what about the costs that aren’t as easy to define or calculate? Employee morale is the key to many successful businesses. If morale is low due to employees not feeling valued and/or respected, then productivity will be affected. According to Lin Grensing-Pophal, author of “Human Resource Essentials,” “Employees who know that employers are generally concerned about their well-being feel respected and safe.” Gallup research has shown a direct connection between employees’ feelings of safety and security on the job and their job satisfaction and morale. I can’t think of a more satisfying way to increase morale and decrease costs than to simply show your employees the respect they deserve by giving them a safe and secure place of employment. Your employees are beyond doubt the most valuable asset that you have. How much would you invest in a safety program to protect them?

Employee Buy-in on Safety Now that we have discussed the reasons for management to develop a strong safety culture, let’s look at employee buy-in: “What’s in it for me?”

Average Cost Per Permanent Disability Claim by Type of Injury for Policy Year 2006 Other Cumulative Injuries

$18,160

$25,257

Carpal Tunnel/Repetitive Motion Injuries

$17,696

$22,013

Psychiatric & Mental Stress Injuries

$19,747

$20,638

Slip & Fall Injuries

$24,035

$37,969

Back Injuries

$22,324

$26,959

$70,000

$60,000

$50,000

$40,000

$30,000

24 SPRINGS Spring 2012

$20,000

Figures from CAL/OSHA website

$10,000

Medical

Indemnity

On average, costs per injury can add up to more than $50,000.00 for a back injury, $62,000.00 for a slip and fall injury, and $40,000.00 for a carpal tunnel or repetitive motion injury. These costs do not include additional indirect costs associated with injuries and illnesses such as lost productivity, re-training, hiring new employees, administrative time, repair and replacement of equipment, etc. First, we have to get past the notion that rules are just rules and they need to be followed because they are rules. In order for employees to get on board, they need to understand that the rules are in place to protect them. If a rule is not helping to make things safer, then maybe it’s time to re-evaluate whether the rule is necessary. Second, responding to employees’ ideas is one of the most effective ways to build trust. If an employee working on the shop floor sees an unsafe condition or has an idea they feel would protect someone from possible injury, by all means discuss it with them. Let them be part of the solution so that they adopt some ownership over keeping their fellow employees safe. Again, everyone in the organization needs to have a part to make this successful. If an idea involves an expense that you haven’t planned for, how will you deal with it? Your employees will quickly discern your true motivation if you only address easy fixes and ignore fixes that will cost money. We have to put our money where our mouths are if we truly want to keep our employees safe and want them to know that we care about their well-being. I will pose the question again: How much would you invest to protect your most valuable asset? Employees must believe that you are truly concerned for them as people and not just as your employees. Awards are a good way to show them some recognition and respect. Sometimes awards can be serious and identify a specific accomplishment such as “Zero lost time accidents” or “No recordables” in a given period. Other awards may be fun and humorous which can lift the spirits of fellow employees while still giving recognition where it is due. One award that we gave out at an employee meeting was a plaque with a Depends diaper affixed to it. The title on the plaque was “Depend-able.” We had fun in giving the award. Our vice president joked that when he saw the Depends

diaper he assumed it was for him. Everyone got a good laugh from it. In giving the award I was able to share how the recipient was someone who I could depend on time and again to do whatever was needed to get the job done. Silly? Yes. Effective at giving recognition? Yes. Just a side note on awards: Awards can only go so far if the employees don’t believe that you truly care.

The How-To’s of Safety The last element that I would like to look at is some of the how-to’s in developing a strong safety culture. Consistency is number one as far as trust. Day in and day out, decisions that are made cannot compromise the safety or well being of an employee. Production can never come before the safety of an employee. This cannot be stated strongly enough. Trust is difficult to earn but easy to lose. The first time that you compromise safety to get a job completed it will cost you immeasurably in the trust of your employees. Some other ways to reinforce the attitude of safety is by taking care of issues right away. We have developed a system which requires a response to any safety concerns within 24 hours and an action plan to remedy the situation in place within 48 hours. Obviously some concerns require immediate attention which goes without saying, but others concerns may be improvements that are not immediately necessary for employee safety. One aspect of our “Supervisor’s Safety Goals” is pertaining to ergonomics and repetitive motion concerns. Part of each supervisor’s evaluation has to do with their observations of potential ergonomics problems within the factory. We try to compile a list each year of at least ten potential issues that we can improve. Some of these issues can be remedied with simple adjustments and some will take time and some engineering design to reduce the potential for motion injuries.

done to eliminate steps, reduce fatigue, and improve the process while having an eye towards safety. I would recommend bringing in an experienced consultant to help you develop these tools as the rewards will go far beyond the cost incurred. Henry Ford said, “Coming together is a beginning. Keeping together is progress. Working together is success.” The bottom line is that you need employees from all levels of your organization to get involved. In doing this your plant not only becomes a safer place to work but you improve the feeling of community in your company at the same time. You become an organization of which people are proud to be a part. We are all in this together and we are looking out for our friends (fellow employees). u David Lester is the plant manager at Rockford Spring Company in Rockford, Ill. and has 24 years of experience in the spring industry. He may be reached by email at dlester@rockfordspring.com.

Kaizen Blitzes One last tool that we have seen used to promote safety is employee-led Kaizen events. These events, called Kaizen Blitzes, combine lean manufacturing with safety. The employees observe the featured process and make notation of all movement made from employees involved in the process. From there brainstorming is

SPRINGS Spring 2012 25

Getting Serious About Safety

Image Source/Punchstock

The Cost of Safety? By Scott Rankin

26 SPRINGS Spring 2012

ears ago we made a decision to make all the operations at Vulcan safer for all of our team members. It started with a call to OSHA to find out what they wanted in regard to a safe work environment. Then the costs started, and it has never stopped. We are always looking for new ways to make our machines and overall operations safer and easier. It always costs us money to make the changes and it always pays off for us. But that is not the cost of safety I am talking about. The cost of safety to us is the bargain we get for putting all of that time and effort into our safety program. We spend a lot of time training our team to be safe but also to find the safest ways to get each job done. It works out for us because the safe way is usually the least expensive way. I know, you are thinking I got that one wrong. Well let’s look at the safe way. An employee gets a part from production and it need a loop put on the end of the spring. This is an easy job and they can use the same setup as the last job, even though it is slightly different. The safe way is to take the time to reset up the fixture and the guards and to bend the end. And so while this might take a few more minutes, the parts are all made correctly and safely with the proper set up. The other way that was close enough would have made a part that was not quite in spec so they would have had to tweak the part just a little to get it right. If the part slips out of the fixture and cuts his hand we have just stopped production on that job. The priority changes to getting the blood to stop and a trip to the hospital if stitches are needed. The job may not get done that day and the parts are not right. Costs are skyrocketing. Now “Mr. Helper” comes to finish the job since the main worker is at the hospital. Since the job was not set up properly and safely, he also gets hurt trying to make the part work. Employee two is injured and the job has stopped again. Costs go higher and a domino effect has started. No one knows where the problem started and so engineering gets involved to find what went wrong. The main worker has gone home early without telling anyone why it did not work and Mr. Helper is dripping blood on everything trying to find the next box of Band-Aids. I know this sounds a bit far-fetched, but think about it: How many times has this or something very similar happened? What is the cost? How happy is the customer who didn’t get his parts on time? Are your employees productive? So what is the cost of safety? There is the initial cost to set up your facility to be safe. This can be very

The cost of an accident is not in money, but in lost opportunity and the inability of your worker to get anything done. If they have to take a few days off to heal, what does that cost in lost time? If this person is a key setup guy and the team depends on him to setup a particular machine, the costs go higher. If you lose a job because of missed deliveries because the parts can’t be made, the costs go higher. expensive and it can be constant and never ending. But at some point it gets to be a very low number that just becomes a part of the culture of the company. And each and every employee looks for ways to make it safer because that is the culture that the management and company have put in place.

One - StOp ShOp

Then there is training. When does the training stop? Never. Because it is a part of everyday life at the company and so it goes on and on and it is part of each day’s activities. What does this cost? Really nothing. It just happens. The cost of an accident is not in money, but in lost opportunity and the inability of your worker to get anything done. If they have to take a few days off to heal, what does that cost in lost time? If this person is a key setup guy and the team depends on him to setup a particular machine, the costs go higher. If you lose a job because of missed deliveries because the parts can’t be made, the costs go higher. And this is just a bad cut. It can get worse, and it has for many company owners. Safety is one of those “extra” things that many companies feel is a good idea. They may think time and money can be saved hoping they are safe. That is not a smart business decision. Safety has to be part of the culture and the training at your company, in order to assure you get everything done on time and to the best of your abilities.

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I have seen many spring companies and talked with many owners who talk about the great safety efforts they have put into their companies. It is a testament to the managers and owners of the SMI companies that work hard to protect their workers and to assure the quality of their parts. Most SMI members understand the power of a safe environment and know that it pays them in the end to have a safe system of working. What will it take to make sure your work environment is a safe one? Can you afford not to take every precaution and to train every employee to be safe? Let’s face it, your employees will feel you care and your customers will be happy to do business with you. Your safety is part of their insurance that you are the right company for them. I have told you that safety can save you money and that it will help to create an environment of caring for your employees. Here’s how to get started. I’m sure no company is starting from scratch so what you need is an expert to help you. You don’t have to dial OSHA to find one. In fact the best in the spring industry is our own Jim Wood. He works for SMI and is trained by OSHA to help find and correct safety

I have seen many spring companies and talked with many owners who talk about the great safety efforts they have put into their companies. It is a testament to the managers and owners of the SMI companies that work hard to protect their workers and to assure the quality of their parts. problems in manufacturing. Jim worked for years as a manufacturer and then moved on to help others learn about safety in the manufacturing environment. Jim has the ability to survey your plant as well as train your employees to begin creating a safe workplace. He is trained by OSHA and knows what they look for and how to meet their safety demands and rules. This is a starting point, but there are others who can also help with this process, such as industrial safety engineers. Another way to reach this safety goal is to contact the people at OSHA consultation. This is a group of people trained by OSHA to find and help you correct safety issues. They are not able to show you what to do but they can answer questions and can tell you what won’t work. As you work through various guarding and training areas they will work with you to find solutions that fit the OSHA standard. This is a longer process, but it is a great solution to get you moving toward a great work environment. The cost of safety is an interesting journey. It has put companies out of business and kept others in business. It’s your choice and it is all a matter of perspective. u Scott Rankin is the president of Vulcan Spring and Manufacturing Co. in Telford, Pa., and the immediate past president of SMI. He may be reached by email at scott@vulcanspring.com.

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Photodisc/Punchstock

Safety

with a Tax Deduction By Mark E. Battersby

s an employer, every spring manufacturer and supplier, large or small, is responsible for protecting the safety and health of its employees. Safety is also good business. An effective safety and health program can save $4 to $6 for every $1 invested. It’s the right thing to do, and doing it right pays off in lower costs, increased productivity, and higher employee morale. Over the last several decades, laws have been passed to ensure workers are protected from hazards in the workplace. Examples are the Occupational Safety and Health (OSH) Act of 1970, the Mine Safety and Health Act of 1977, and the Fair Labor Standards Act (FLSA), which covers rules concerning the employment of young workers. Best of all, the cost of many of these safety and health program can often be offset by tax deductions and generate tax savings.

Deducting Safety Improvements All-too-often, the government steps in to tell a manufacturer what to do about its facilities, equipment, work sites, etc. A good example is provided by the improvements required under the American with Disabilities Act (ADA), and those mandated by OSHA. Obviously, a spring manufacturing operation has little choice about complying; make the changes the government wants or pay penalties. What tax relief

can any manufacturer claim for making the needed compliance improvements? A spring manufacturer forced to pay penalties for noncompliance or law violations, will also find the penalties are not tax deductible. The tax law specifically denies deductions for fines and penalties paid to the government for violating the law. Thus, the manufacturing operation has little choice but to comply with government-ordered improvements, and do it as quickly as possible, so as to minimize or avoid penalties. Unfortunately, the costs of capital construction and improvements are not immediately deductible. The costs are added to the basis of property and recovered through depreciation. This can be a long process, giving little tax relief upfront when the costs are incurred. Fortunately, special rules can accelerate the deductions or write-offs for making some mandated improvements. Consider: • The American with Disabilities Act: A spring manufacturer required to make changes to its facilities in order to accommodate the handicapped or elderly public -– or its own employees -– in order to comply with the ADA may qualify for a tax break. Thus, something as simple as adding ramps and/or railings can mean a tax deduction.

SPRINGS Spring 2012 31

• The Disabled Access Credit: A spring manufacturer can claim a tax credit of 50 percent of the cost of expenditures over $250, and up to $10,500 a year, for a top tax credit of $5,000. This credit applies only for small businesses, defined as those with gross receipts of $1 million or less, or fewer than 30 employees in the preceding year. Details about the type of improvements eligible for the credit are explained in the instructions to IRS Form 8826, Disabled Access Credit. • Barrier Removal: A special deduction for the cost of removing barriers to the disabled and the elderly, is capped at $15,000 per year. If costs are greater, the amount over $15,000 can be capitalized and recovered through depreciation. Unfortunately, a barrier removal cost can be used only once (it can’t be used as both a tax credit and a tax deduction), but write-offs for ADA-related improvements continue to help reduce the tax bills of many spring manufacturers.

OSHA Compliance The Occupational Safety and Health Administration (OSHA) is concerned with safety for employees in the workplace. Under the provisions of the OSH Act, every spring manufacturing business must provide a workplace free from recognized hazards that are

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causing, or are likely to cause, death or serious physical harm to employees, regardless of the size of the business. OSHA was established to create standards and regulations that implement the Act. There are no special tax breaks immediately tied to OSHA-ordered changes or improvements. Depending on the type of changes required, the costs may be immediately deductible or will have to be capitalized. A good example of what is immediately deductible and what must be capitalized and written-off over a number of years is provided by the personal safety equipment purchased by many manufacturers for their workers, such as goggles and protective gloves. These may be immediately deducted as an ordinary and necessary business expense, or if expected to last more than one year, as an immediate write-off under first-year expensing or bonus depreciation rules. Re-wiring, constructing exits, overhead protection, or other capital improvements to a springmaker’s plant or facility may have to be capitalized. However, for a limited time, special rules may help those leasing business property, restaurants and retail establishments write off improvements faster than the more common — and quite lengthy — depreciation process. Spring manufacturing business owners, managers or executives may want to consider OSHA’s free on-site consultation. The program does not entail penalties or citations; it merely makes recommendations for improvements to be a safer workplace. This can help a business prevent penalties that could result from inspections down the road.

Fighting Back Fines and penalties are not generally tax deductible, although fees for legal and professional services are. Amounts paid for legal services to battle fines and penalties levied for safety violations, as well as many other causes, are tax deductible. In fact, in 1996 Congress passed the “Small Business Regulatory Enforcement Fairness Act,” or “SBREFA,” to help small businesses. An oftenoverlooked provision of SBREFA gives small businesses expanded authority to recover attorneys’ fees and costs when a federal agency has been found to be excessive in enforcing federal regulations. The legislation also establishes 10 Small Business Regulatory Fairness Boards to receive comments from small businesses about federal compliance and enforcement activities and report these findings annually to the Congress. Tool and Equipment Plans Personal safety equipment purchased by many manufacturers for their workers, such as goggles and protective gloves, opens the door to other tax write-offs. Employees in many industries routinely purchase their

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That’s right, a largely-ignored tax law provision permits every spring manufacturer to claim a tax deduction for expenditures made to educate or train employees. An ideal “fringe” benefit for any employee — even employee owners of their own businesses. And, best of all, it is deductible by the business and tax-free to the recipient.

own safety clothing. In turn, they are permitted to claim a tax deduction for these expenditures under the heading of “employee business expenses,” on their personal income tax returns. Should the employee provide his or her own tools, it is a slightly different story. An “Employee Tool and Equipment Plan” is an agreement between an employer and one or more of its employees to reimburse the employee for the use of the employee’s tools and equipment. The idea is that a portion of the compensation paid to the employee is for use of his tools and equipment and, therefore, that portion is not taxable wages to the employee. In addition to saving the employee federal income taxes, the employer would not have to withhold employment taxes on that portion of the

employee’s compensation. As the IRS has pointed out, springmakers/taxpayers can achieve this tax result by structuring the Employee Tool and Equipment Plan as an “Accountable Plan” as defined in the tax law. To qualify as an Accountable Plan, the Plan must meet some very minimal requirements. Specifically, the Plan must require the employee to substantiate the expense and the Plan must provide that the employee must return any amount in excess of the amount of the expense that is substantiated.

Penalty Free Wages Little attention has been paid to the Fair Labor Standards Act’s (FLSA) restrictions on salary deductions. To qualify for the FLSA’s most common

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In addition to tax deductions for the cost of health insurance provided to employees, spring manufacturers can deduct the cost of other types of insurance, including policies covering property and casualty protection, malpractice coverage and vehicle insurance.

exemption from minimum wage and overtime requirements, the so-called “white‑collar exemption,” executive, administrative and professional employees must generally be paid on a salary basis. There are certain circumstances, however, where deduction from the salaries of exempt employees is permissible. These circumstances include the violation of a safety rule of major significance. When an employee violates a safety rule of “major significance,” the employer may impose a salary deduction as a penalty against the employee. Safety rules of “major significance” include those relating to the prevention of serious danger to the workplace or other employees.

Training and Education OSHA requires many spring manufacturers to establish an OSHA training program where all employees at the time of their hiring, and at least once a year, receive OSHA-related training. Under our tax rules many of the educational and training expenses incurred by a manufacturer are both tax deductible by the business and, at the same time, tax-free to the recipients. That’s right, a largely-ignored tax law provision permits every spring manufacturer to claim a tax deduction for expenditures made to educate or train employees. An ideal “fringe” benefit for any employee — even employee owners of their own businesses. And, best of all, it is deductible by the business and tax-free to the recipient. Financing Workplace Improvement When it comes to paying for safety improvements, whether mandated or made voluntarily, a number of lenders stand ready to assist. The SBA, for instance, is authorized to make loans to assist small businesses with meeting OSHA standards. Because SBA’s definition of a “small” business varies from industry to industry; contact your local SBA field office to determine whether your spring manufacturing operation qualifies. A helpful hint: anyone applying for an SBA loan should be aware that most delays in processing SBA/OSHA loans are because applications 1) do not adequately describe each workplace condition to be corrected and identify one or more OSHA standards applicable to the condition to be corrected, or 2) do not provide a reasonable estimate of the cost to correct each condition. In most cases however, safety hazards can be corrected without financial assistance. Health hazards may be more costly to correct. The age and condition of the building and equipment are major factors that must be considered. Interest rate information on SBA loans may be obtained from any SBA office. They fluctuate but are generally lower than can be obtained elsewhere.

34 SPRINGS Spring 2012

Obviously, the first step for every spring manufacturer seeking safety-related funding should always be the operation’s bank. And remember, it definitely pays to shop around for loans.

Insurance A spring manufacturer or supplier that has suffered the results of an accident or a theft, fire, flood, or other casualty during the year may be able to deduct some of the unreimbursed losses. Insurance can also protect against the effects from safety program failures. In addition to tax deductions for the cost of health insurance provided to employees, spring manufacturers can deduct the cost of other types of insurance, including policies covering property and casualty protection, malpractice coverage and vehicle insurance. Unfortunately, self-insurance reserve funds cannot be deducted. Amounts credited to a reserve set up for selfinsurance are not tax deductible even for those operations that cannot get business insurance coverage for certain business risks. Naturally, actual losses may be deductible. Workers’ compensation is insurance paid by a spring manufacturer to provide benefits to employees who become ill or injured on the job. Through this

program, workers are provided with benefits and medical care, and employers have the assurance that they will not be sued by the employee. In general, the cost of workers’ compensation benefits is based on the gross payroll and the number and severity of illnesses and injuries that type of employer experiences. For example, a manufacturing company would have higher workers’ compensation costs than a professional practice. Every employer has a duty to protect workers from injury and illness on the job. Protecting workers also makes good business sense. Accidents and injuries are more expensive than many realize. Costs mount up quickly. Fortunately, substantial savings in workers’ compensation and lost workdays result when injuries and illnesses decline. Establishing a safe and healthful working environment requires every spring manufacturing business -- large and small -- and every worker to make safety and health a top priority. The entire work force -- from the CEO to the most recent hire -- must recognize that worker safety and health is central to the mission and key to the profitability of the company. Better yet, are the workplace safety-related tax writeoffs available. u

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he majority of quarter-million dollar and half-million dollar workers’ compensation claims have a secondary medical issue that complicates recovery and extends the length of time the employee is disabled. Personal medical problems such as obesity, smoking, poor physical condition and diabetes often complicate severe injuries, especially those involving surgical repair, making recovery more difficult, longer and more expensive. A 300-plus-pound employee who must lose 50 pounds before surgical repair of a herniated disc can easily add six months of temporary total disability benefits and six months of doctor visit to overall claim costs. In most jurisdictions, state workers’ compensation laws take the employee the way you hired them; often referred to as, “You touch it, you bought it.” That the employee has a pre-existing medical issue does not excuse the employer from having to pay all medical care for injury and indemnity benefits until the employee can return to work (or until indemnity benefits reaches the state maximum time limit for draw.) Obese employees with medical problems are not the only ones who increase workers’ compensation claim cost. A 6-foot-tall, 140-pound man smoking a pack of cigarettes each day will find a fractured ankle (or any other bone) takes much longer to heal in a smoker than in a non-smoker. Cervical and lumbar fusions often fail in the heavy smoker, as the two bones do not grow together. A failed fusion in a person who smokes can add from months to a year to the life of the workers’ compensation claim, and increase the employee’s permanent impairment rating. Most employers totally separate their health insurance program from their workers’ compensation insurance program, with the human resources/benefits department handling the health insurance program and the risk management department dealing with the workers’ comp insurance program. If your health insurance and workers’ comp

SPRINGS Spring 2012 37

One study showed that for every $1 spent on wellness programs, there was an overall reduction in medical care cost of $3 to $4. That is a return on investment that cannot be ignored. By eliminating employees’ unhealthy habits, both parties benefit.

programs are handled separately, we recommend the two departments work together to institute a wellness program, or to improve the existing wellness program, for the simple reason that healthier employees have fewer insurance and workers’ compensation claims. If you are thinking, “Okay, I understand that unhealthy employees take longer to recover from their workers’ comp injuries, but how does a wellness program create fewer workers comp claims?” The answer is employees who are not in good physical condition are much more prone to strains and sprains than employees who are physically fit. For example, picking up and moving a 50-pound object does not create a problem for the physically fit employee who has muscles that are properly toned. The same 50-pound object creates a herniated disc in the employee who does not have developed back muscles to support the spine. A study, completed by the John Hopkins University Medical Center, of employees at eight aluminum plants found that 85 percent of those injured were overweight or obese. There is also the often-cited Duke University

study that documented obese employees have twice the number of injury claims per 100 employees as non-obese employees, lose 13 times as many work days, with indemnity cost being 11 times higher and medical cost being seven times higher. (For more details look at http://www.dukehealth.org/health_library/ news/10044.) The savings in this one area of wellness will greatly exceed the cost of the wellness program. One study showed that for every $1 spent on wellness programs, there was an overall reduction in medical care cost of $3 to $4. That is a return on investment that cannot be ignored. By eliminating employees’ unhealthy habits, both parties benefit. Not only does the employer benefit by lower insurance cost, but the employer also benefits from higher productivity, as the employee is on the job working, not at home recovering from an illness or an injury. By having an integrated, comprehensive wellness program, you are taking a holistic approach to the employee’s health and the impact it has on the employer. With the ever-rising cost of medical care, whether for health insurance claims or workers’ compensation claims, the need for a strong wellness program in your company will continue to grow. We recommend you do your employees and your company a big favor by starting or by improving your wellness program. There are a tremendous amount of resources on the Internet on wellness programs. We are also here to assist you in any way we can, so please contact us in regard to your questions about wellness programs. Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers’ compensation. She is a writer, speaker, and website publisher. Her expertise is working with employers to reduce workers’ compensation costs, and her clients include airlines, health care, printing/publishing, pharmaceuticals, retail, hospitality, and manufacturing. She is the author of the #1 selling book on cost containment, “Manage Your Workers’ Compensation: Reduce Costs 20-50%” www.WCManual.com. Contact: RShafer@ReduceYourWorkersComp.com. Our workers’ compensation Guide Book: www.wcmanual.com

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues. ©2012 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com

38 SPRINGS Spring 2012

SPRINGS Spring 2012 39

By Hale Foote, Scandic Springs

Should you consider opening the doors of your manufacturing facility to visitors? And if the answer is “yes,” how can you best conduct a tour of the plant?

40 SPRINGS Spring 2012

Why Let the World In? Having visitors come to your manufacturing facility offers a unique opportunity to present the business in a favorable way. When properly planned and executed, it is among our company’s most potent sales tools. Most sales in a technical field like ours involve plenty of education. An engineer needs to learn whether your capabilities are suited to the project; a buyer wants to make sure your business processes are up to the task. Spending time together in the factory lets them learn all they need to satisfy their requirements, and the factory setting provides a much richer environment, compared to a meeting over lunch or most email or telephone interactions. Even when the visitors don’t have a specific part they are trying to source, we look at factory tours as effective marketing. Many times I have had a visitor exclaim something like: “I knew you were a spring company, but I now see that you also do tooling and stamping. My project has a new stamping, too.” Seeing our wide range of processes very often leads to more work from an existing customer. We host several different types of visitors who are not customers at all, or at least not yet. These longrange prospects include engineering students and their professors from Stanford and Berkeley; Scandic is now established as part of their engineering curriculum,

helping with senior design projects and giving free samples of materials. I have been invited to lecture and to participate in roundtable programs there, which I think of as leveraging the marketing impact of the plant tour. We have even invited Boy Scout troops and high school manufacturing clubs (start them young!) to tour our facility. Some of these kids are future engineers and customers, and I feel the exposure also gets the word out about manufacturing as a career choice. One of our most unusual tours was a Family Day for employees’ families, with all the machines running. I overheard one say “it’s the first time in 25 years that my family has seen what I do for a living,” and his pride was obvious. I am often asked about confidentiality concerns regarding customer identities and their information. Like many manufacturers today, we have nondisclosure agreements with most of our customers. My advice is simply to keep prints and specs covered; if there is a particularly sensitive part or process running, shut it down beforehand and don’t dwell in that area of the plant. Before we start, I ask visitors to respect the privacy of the information, and remind them that their data will be treated the same.

How to Structure an Effective Tour Manufacturing plants can be complex and overwhelming to a first-time visitor. I have learned the hard way that a little preparation can make all the difference in a tour. First, what time of day is best? Consider your production shift schedule; most visitors will want to see machines in action and observe how your

operation works, which is difficult outside of production hours. But be very aware of both safety and cleanliness: safety because that is paramount for everyone, and housekeeping because a dirty restroom can spoil an otherwise positive impression. Keeping the plant in a visitor-ready state contributes to safety, too. And consider whether distributing safety glasses is prudent. Spend some time to rehearse your presentation until you get comfortable. Think about the message you want to send: Are you trying to demonstrate overall competency, or do you need to show expertise in forming a kind of part that this particular visitor needs? Who should conduct the tour? It depends on the type of visitor, and what you are trying to convey. An account manager often handles a general introductory tour. A visitor with a specific design challenge will benefit from an engineering-focused tour given by a sales engineer or engineering manager. These kinds of visitors might concentrate their time in the area of the plant which would produce the part under consideration. Note that a quality audit is a very different kind of visit, primarily involving your QA staff and concentrating on documentation and process controls. Quality audits are usually driven by the visitor’s checklist. Plan the direction of flow, and try walking it to see where you can stop to talk safely. In our plant, where jobs are constantly being setup and torn down, I find it useful to review the production area right before visitors arrive to know what is interesting today and what areas to avoid. Starting and ending in the conference room is useful but not essential. But be sure to pass through your

©iStockphoto.com/Jamie Farrant, ©iStockphoto.com/Giovanni Banfi

SPRINGS Spring 2012 41

I have to tear people away from watching the CNC wireforming machines! If you have a large group, break into smaller teams. Generally four to six is the maximum workable size per team, at least in our plant. Even with small groups, remember that the tour guide should enunciate toward the visitors, not to the machine! You don’t need to stare at the loud punch press while you describe it: direct your voice towards the listeners, and be conscious of noise levels. One technique is to introduce a process while standing away from a noisy work center, then allow visitors to approach closer (if safe). It’s even more interesting to visitors if you can pass around a warm part fresh off The spring steels we offer are the machine. Engineers especially made expressly for us - meeting love to hold a progression strip and our demand for the best. figure out for themselves how the We have the edge, the width, the part is being stamped. If your parts quality and the experience that are small, send visitors home with makes your product even better. samples; it helps to prolong their experience. • 50 Carbon • 75 Carbon • 95 Carbon Finally, remember that people • Stainless Steel-All Tempers a r e the company’s greatest • AISI-SAE 4130 Heat-Treatable Strip ambassadors. Identify department • Bainite Hardened • Blue Tempered & Polished Strip supervisors and/or line workers • MartiNsite®, Low Carbon C.R. Sheet who are good spokespeople, and let • Tempered (Scaleless) Strip visitors speak with them directly. • Special Temper High Carbon Strip The best salesperson is never as convincing as the technician who has mastered a process. Some operators enjoy demonstrating their skill, and having them describe their area to visitors lets them shine. It also demonstrates the depth of knowledge throughout the company, and your visitors will remember that more than the “sales talk.”

well-organized shipping area. I can tell visitors that we ship about one million parts every month, but it is more effective for them to see the bar-coded boxes lined up to ship to locations around the world. Because Scandic has five production departments (coiling, tooling, fourslide, punch press, secondary ops) we point out synergies between departments, such as: “These parts are blanked on this3:35 waterjet, and you can PSW Ad1_sQRƒ_HiRz.pdf 1 11/11/11 PM see them being formed on the brake press over there.” This kind of narrative will help you from forgetting to mention an important area. But recognize that for a new visitor, some processes are sexier than others;

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Conclusion In a time when most communication is electronic, an in-plant visit delivers a powerful message about what we have to offer. Tours by prospects, current customers, and even members of the community are a great way to market the business. Plant tours can showcase capabilities that even an existing customer might not know about, but planning and preparation are essential to make the visit worthwhile. u Hale Foote is the president of Scandic Springs, Inc. in San Leandro, California.

42 SPRINGS Spring 2012

©iStock

SMI Members: Get With “The Program” By Mike Campbell CPS Financial

©iStockphoto.com/John Cowie

Unlike the usual association plan, The Program allows each SMI member to have their own custom plan designed to meet their needs and objectives. It provides specialized fiduciary features that protect the business owner from risk. Special pricing for The Program is achieved by leveraging the buying power of the SMI organization.

reetings to all SMI members! I am Mike Campbell of CPS Financial in Lake Bluff, Ill. and the new financial advisor for the SMI Sponsored Retirement Plan Program (The Program). Jim Gorand, a founder of The Program and its first financial advisor, passed away suddenly last summer. He and I were business partners for more than 20 years, and friends for many more years. He is greatly missed by his family, friends and business associates. The Program has been in place for over one year, and everyone is happy with its progress and excited about the future growth and possibilities. Unlike the usual association plan, The Program allows each SMI member to have their own custom plan designed to meet their needs and objectives. It provides specialized fiduciary features that protect the business owner from risk. Special pricing for The Program is achieved by leveraging the buying power of the SMI organization. The very first SMI member company to join The Program was Vulcan Spring and Manufacturing in Telford, Pa. Vulcan’s president and thenSMI president Scott Rankin said, “The Program has worked great for my company and employees. “The biggest difference between our former 401(k) plan and The Program is the transparency of fees. With my former plan I had no idea how much I was paying and what I was paying for. “I wanted to make sure my employees were charged the lowest fees possible for a plan that is best for them, something I learned we were not getting with our old plan,” Scott said. I’m sure many of you can attest to common problems in many industries; an aging workforce where many employees are not financially prepared for retirement. The Program takes on that problem with a greater level of service compared to other 401(k) providers. We meet one-on-one with each plan participant to guide them on the path to a retirement ready portfolio. Our association with

SPRINGS Spring 2012 43

Morningstar, an independent investment fund ratings agency, demonstrates a proven record of increasing plan member’s retirement income. The insurance carrier for The Program is ING out of Hartford, Conn., one of the leaders in group retirement plans. Scott was completely sold on The Program after he made a visit to ING’s home office. “I was very impressed with the staff. Everyone really cared about their job and ING’s customers,” Scott said. Scott recommends that SMI members at the very least take a look at The Program to see if it’s a fit for their company and an improvement on an existing employee retirement plan. This cost-free analysis is available to all SMI members.

What the Program Provides to Your Company • An opportunity to reduce existing plan costs for both the employer and employees. • Total fee transparency between your real current costs, and what your costs could be. • Total state-of-the-art-customer support system for both employers and participants. • Complete administrative support and guidance. • Off-loads fiduciary risk to the owner by using a full scope ERISA 3(21) named fiduciary. AWire_Springs_Spring Issue_2012.qxd

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The Program Addresses Your Concerns • Are you getting the best value for your plan? • Are you meeting all of your fiduciary obligations? • Do you have the right investment lineup? • Do you provide an employee communication program that works? • Are you receiving the type of service you need? • Is the plan effectively meeting your goals? • Are you taking advantage of all the available tax benefits? If you have not received the answers to those questions lately, you may want to look at what SMI’s program has to offer. For a custom analysis of any of your existing plan or plans, contact the SMI office at (630) 495-8588. u

Mike Campbell has been an employee benefits broker and advisor for 21 years. You can reach him at (847) 295-2521 or mike@cpsfinancial.com.

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Report on the 2011 Japan Spring Machine Show By Michio Takeda

ince the great earthquake hit Japan on March 11, 2011, springmakers in Japan were concerned about the drastic decrease in automotive production. Some 70 percent of Japan’s spring production is for the automotive industry. But it wasn’t just the automotive industry that felt the aftershocks. Other manufacturing industries and service industries experienced the fallout: Boston suffered from a lack of electronic parts, Atlanta had an I.T. parts shortage, and in Minneapolis 41 percent of plastic manufacturers felt the pinch from late deliveries of resin supply. During the 2011 Japan Spring Machine Show held last November in Tokyo, Yuichi Kato, secretary general of the Japan Spring Manufacturers Association (JSMA), reported that production dropped considerably after the earthquake and remained that way for the next six months. “The automotive plants in the disaster area gradually recovered by September, and production began to return to 2010 levels. It is fortunate that there were only a few springmakers in the disaster area, and these plants were located far inland, so they avoided the tsunami’s destructive power.” He said there was another major concern last summer because of flooding in Thailand, where

©iStockphoto.com/Pavel Khorenyan

30 Japanese springmakers have manufacturing plants. The shortage of parts affected the automotive assembly plants in Japan. The production of micro-computer parts in the disaster area was greatly impacted, which caused a supply delay for the automotive and I.T. industries. Due to the natural disaster that hit Japan, all the springmakers and machine makers in the country were determined to be unified in order to come up with the latest high technologies for the immediate capital plans in the country. This year’s show marked the first time the machine show was held in Tokyo. Here are notable newly developed machines, introduced at this ninth machine show: Asahi-Seiki Mfg. Co. Ltd., Model T2, CNC Spring Former (0.6mm – 2.0mm): A newly developed 3-axis universal forming unit with a new wire rotation function for any complex spring parts, and all servo slides with servo motors. For torsion and extension springs. Initial tension is easily programmed with the full servo system. Itaya Engineering, Model CS-8: A newly developed small wire (0.1mm to 0.8mm) coiler. Dramatically reduced price, ultra high speed, and more computerized with axis for feed, cut, push-pitch, and diameter.

Shinko Mfg. Co. Ltd., Model S: Newly developed spring former in the UF series (1.4mm – 4.0mm), A forming unit with forward and backward movements and a shorter setting time. SD Furnace, HCSL-R1000: A smokeless oven with a newly developed PC-controlled data management system for operating four ovens at one time. The sub-title of the ninth Japan Spring Machine Show was “Spring Making to Contribute to a Sustainable Society.” Exhibitors tried to show renewable technologies that are more efficient and produce less waste, along with newly developed process engineering. The show tried to convey a message that Japan as a whole is the place for “making things,” supported by various engineering research groups. It provided attendees with a good communication center in the heart of the world’s information transmitting place, Tokyo. The next show is scheduled for November 2013. It will move back to its usual site at Fukiage Hall in Nagoya, the third largest city in Japan. u

SPRINGS Spring 2012 45

Flashback

©iStockphoto.com/Chris Fertnig

It Pays to be Safe By Reb Banas (Originally published in the Fall 1998 issue of Springs.)

46 SPRINGS Spring 2012

fficiency through productivity and safe working conditions is an important key to manufacturing success. Employee safety takes top priority at Stanley Spring & Stamping (SSS), a growing family-owned, familymanaged corporation that produces springs, metal stampings and wire forms for a variety of industries. Currently, it is in its 54th year of operation in Chicago and its 27th year of manufacturing operation in south Florida. While growth and continuing achievement are annually measured, there are other significant factors that contribute to the fruition of Stanley Spring & Stamping. Most important are the dedicated employees and their commitment to making SSS a safe and profitable place to work. For years, we have maintained a “clean” factory atmosphere throughout all our facilities. Traditional guarding, employee education, and protective personal equipment and clothing were the norm, with guidelines to follow.

However, with an increase in OSHA/government audits and rising insurance premiums, we recognized a need for a thorough housecleaning and compliance with the letter of the law, not just the spirit. In 1993, through the Spring Manufacturers Institute (SMI) and its Pyramid of Safety*, we began a full-scale assault on safety compliance through all our facilities. An initial audit by Jim Wood, SMI’ s r egu latory complian ce manager, opened our eyes to a significant number of safety violations we never knew existed. Wood followed up with a detailed compliance report and specific corrective measures. We then took Wood’s suggestions and organized our first safety committee. The committee was composed of representatives from each department in the company. Working as a team, we separated each violation by department and work area. Responsibility was delegated to correct each violation, and to submit in writing the date

and method for resolving the hazard. In this manner, the safety violations were eliminated within a period of three months. Weekly safety meetings and progress reports ensured that we remained focused. When our safety team felt comfortable about its responsive actions, we brought Wood back for a follow-up visit. Needless to say, he was impressed with our progress, but still found additional violations. Did this mean we had to go back to the drawing board? No, we just needed to make a continued effort to extinguish violations as they arose during dayto-day manufacturing operations. Today, our safety committee continues to meet once a month to address concerns and potential violations. Safety is a constant battle. Therefore, we continue to focus efforts on manufacturing production in a safe, efficient and profitable manner. The SMI Pyramid of Safety program is, and will continue to be,

a valuable asset to Stanley Spring. I have personally completed both the OSHA Voluntary Compliance and Train the Trainer seminars. They are extremely beneficial for both small and large corporations. A commitment to safety has to begin with management, and there is nothing better than selfimposed safety educational classes. Admittedly, most of us managers are short on time. However, proper planning and personal education can offer handsome rewards. In the case of Stanley Spring, not only have we reduced the number of minor accidents and injuries, but also our insurance premiums have been lowered in excess of 125 percent as a direct result of our safety program. This is proof positive that safety does pay. We continue to send members of our safety committee to SMI-sponsored seminars. The knowledge they gain is then passed on throughout the company.

Proper planning and personal education can offer handsome rewards. In the case of Stanley Spring, not only have we reduced the number of minor accidents and injuries, but also our insurance premiums have been lowered in excess of 125 percent as a direct result of our safety program.

Reb’s Five Easy Ways to Promote Safety

Establish a safety team with clear and concise rules

Compel safe work practices through positive reinforcement

Continually communicate and educate safety awareness

Create an incentive program that requires 100-percent employee participation

Habitually maintain a safe manufacturing environment

©iStockphoto.com/Peter Burnett, ©iStockphoto.com/Don Bayley, ©iStockphoto.com/Miguel Malo, ©iStockphoto.com/Nikada, ©iStockphoto.com/kali9

SPRINGS Spring 2012 47

Our employee safety program has been a huge success. Now in its fifth year, it involves 100-percent employee participation. Each person is required to wear specific safety equipment, depending on the individual’s department. Everyone knows his responsibilities and liabilities for any safety violation.

Employees are rewarded quarterly and annually through an incentive program. We make the rewards very attainable and desirable. Without being specific, the reward program ranges from simple “safety-premiums” to an annual monetary award. We recognize all employees for safe

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work habits, while they reward SSS with lower insurance and hospitalization rates. It is a win-win situation. By increasing employee awareness and participation, our number of job-related accidents has decreased dramatically for each of the last five years. Continued participation and education benefit everyone involved. Even successful programs have their problems, however. For instance, how does a company handle an individual who does not want to participate in the program or is a habitual offender? In our case, an individual is warned twice: The first warning is verbal and documented. The second warning is also documented, and the employee is sent home without pay. With the third violation, he is released from his duties at SSS, free to continue his hazardous habits elsewhere. We feel everyone must play by the same rules. Therefore, we lead by example, not by memos or directives. Hands-on participation with all employees has been the key to SSS’s achievement through the years. u

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Springmaker Spotlight

Steve Moreland (far right) with his family (l-to-r) son-in-law, Michael McPhee, daughter, Jennifer, wife, Sandy, and grandson, Jayden.

Hard Wired for Continuous Improvement

A Profile of Incoming SMI President Steve Moreland By Gary McCoy

here are moments in life when decisions and circumstances converge to create something unique. After graduating from Purdue University with a degree in metallurgy in 1978, Steve Moreland set off for a career outside the spring industry with industrial manufacturing giant Pratt Whitney in Florida. While he enjoyed the stimulation and challenge of working in the area of failure analysis, Moreland said after a couple of years he got disenchanted with “big corporation” life, noting that there were 7,300 people at the facility where he worked. His father, Darell Moreland, put out the offer to return to the family business, Automatic Spring Products Corporation in Grand Haven, Mich. Moreland had worked there growing up and during the summer while in college. Moreland told his father, “I’ll come back, but only if you won’t be upset with me if I leave after a year if it is not something I’m enjoying. I want to be doing something I have a passion for. “My dad’s a great guy and very understanding,” said Moreland. “So I came back, and after a year I was hooked.” That was in 1980 and Moreland has never left.

SPRINGS Spring 2012 51

Wanting Something Better Like a fisherman’s bait entices a fish to grab the hook, what lured Moreland back was the complexity of the family business. He explained, “I am hard wired for continuous improvement. I want things better every day of my life.” Moreland said he realized what was before him: “Here was a whole business where you could do continuous improvement from now until the end of time.” Shortly after returning to the company, the early ‘80s recession was in full bloom across the country and a company named Apple was born. This was when Moreland’s first continuous improvement job was born. “I remember going to my father and saying, ‘Hey, Dad, how about if we buy an Apple computer? I think I can write some software that can do the spring design and the job quotations that we are doing manually.’” Moreland said he finally convinced his father to spend $2,500 to buy the computer and a year later he had authored spring design and quotation software. “It wasn’t long before the quoting software took a 40-hour per week job and made it into a 10-hour per week job.” He says the success of his first projects gave him the desire to do more. Moreland next tackled changing from oil quench heat treating to austemper heat treating. In fact, Moreland had done his senior thesis at Purdue on austempering.

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The lesson for Moreland is that he learned a lot from both his grandfather and father. “At the end of the day, we’re a collection of all the things that we learned from other people.” “We had a part that we were making at Automatic and basically proved it (austemper) was a far superior method for heat treating spring clips,” he explained. So by 1983, Moreland had convinced his father to spend money for austemper heat treating. “Most of the austemper furnaces built at the time were monstrously big and weren’t right for our kind of industry,” explained Moreland. “So we worked with the heat treating company to design and develop a custom, smaller version of their austemper that would work for small parts.” After getting it running well for a year or two, Moreland said Automatic’s quality improved so much that “nobody wanted to run the parts through the other oil furnaces we had.” The company now owns four austemper furnaces. This attitude of always learning and trying to improve has helped Moreland lead Automatic through the inevitable bumps in the road that come with running a family business.

Automatic’s Three Generations Automatic Spring Products was started in 1950 by Moreland’s grandfather, Foster Poe, whose background had been in agriculture. He had helped manage farm co-ops in a five-state region. At midlife his grandfather’s agriculture career ended, so he came to work with his brother who has just started a vertical blind business in Grand Rapids, Mich., but the two brothers had different ideas of how to run the company. After a couple of years Moreland’s grandfather bought one of their component suppliers who made clips and springs for the blinds and moved it to Grand Haven, while his great uncle kept the blind business. Moreland said they were still on speaking terms and everything was fine, they just had different personalities that were not compatible for running a business together. Moreland said his grandfather was “smart enough to know that he didn’t know anything about springs.” So he hired a person from Associated Spring in Chicago with a technical background to assist him. His father, Darell, a structural architect, was hired in 1960. He later took over the business after Poe died in 1975 from brain cancer. His father ran the company for over two decades before turning the reins over to Moreland in 1996.

Top: The original plant of Automatic Spring Products located at 803 Taylor Avenue in Grand Haven, Mich. as it appeared in the 1950's. Below: The company's newer plant, at 16955 Hayes Street, was built in 2001.

Moreland did have the chance to work with his grandfather before he passed away. “I worked at Automatic during my summers and in a high school co-op program. It was in ‘73-’74 when I worked on the plant floor, and my grandfather handed me my very first dollar that I earned here.” Moreland said he was very close to his grandpa. “I had a lot of respect for him. He was a super strong Christian role model. He was a warm, caring guy with a lot of smarts and a lot of guts. The loss of him was hard on me for awhile.” Moreland worked 16 years with his dad before taking over the business as president in 1996. He said the actual transition between generations took about

five years and brought up a lot of father/son issues that commonly occur in generational transitions. “My dad and I are both pretty even tempered. We disagreed plenty, but we never argued. There were never any emotional hard feelings and that’s really to my father’s credit,” said Moreland. “He’s a very patient man and a he’s a wonderful, warm hearted guy. He just didn’t hold a grudge,” he explained. Moreland said over time his dad saw that “some of my wacky ideas actually turned out pretty well.” His dad still comes to the plant a few hours most days when he’s not in Florida with Moreland’s mother, Phyl. Moreland says his dad is the “social director,” and always has time to visit with employees in the plant.

SPRINGS Spring 2012 53

Automatic Spring Products has enjoyed a remarkable rebound following a 50 percent decline in 2009. Moreland cites the company’s hard work and innovative practices that led to an unprecedented 90-percent sales increase in 2010 and good steady improvements in 2011 and already in 2012.

Employees at Automatic Spring Products manufacturing plant in Monterrey, Mexico.

The lesson for Moreland is that he learned a lot from both his grandfather and father. “At the end of the day, we’re a collection of all the things that we learned from other people.” Moreland is the oldest of three children from the third generation of the family. His youngest sister, Nancy, works at Automatic as a purchasing agent.

54 SPRINGS Spring 2012

“She’s a great partner in the business just because it’s good to have somebody in the business that understands it,” said Moreland. Moreland’s other sister, Julie, is a registered dietician, and never has worked in the business. Moreland’s wife, Sandy, is also active in the business. “Her dad was a business owner, so Sandy grew up with that environment and she’s been a great life partner. She knew what she was getting into when she married me.” He appreciates having a wife who understands the kind of environment a business owner has to deal with and accepts the long hours that go along with the job.

Continuous Improvement Today Automatic Spring Products has two plants in Grand Haven and one in Monterrey, Mexico. The original building at 803 Taylor Avenue has been remodeled several times to accommodate growth. When there was no more space to expand the company at the Taylor Avenue facility, Automatic opened a newer plant at 16955 Hayes Street in 2001 not long after 9/11. Moreland jokes that every time the company has expanded, the economy goes in the tank. “I’ve got a lot of friends that say, ‘Just give me a call, Steve, when you’re going to add on again so I can sell my stocks.’ “We literally had opened our facility in Mexico and within six to 12 months the 2008 crash came,” said Moreland. Having survived other downturns, Automatic made it through the most recent one caused by the Great Recession. “But it was really painful this time because it was a deeper cliff, and it was a bigger commitment with our facility (in Mexico) that far away. By God’s grace we made it, but it was not easy.” The company has enjoyed a remarkable rebound following a 50 percent decline in 2009. Moreland cites the company’s hard work and innovative practices that led to an unprecedented 90-percent sales increase in 2010 and good steady improvements in 2011 and already in 2012. He says while the company looked to diversify its business in areas like military or medical, after reviewing their business model they realized that

Top: Automatic Spring Products employees at the main headquarters on Taylor Avenue and (below) at the company's newer facility in Grand Haven on Hayes Street.

SPRINGS Spring 2012 55

automotive was still their sweet spot. For Automatic, automotive means high volume production using multiple operations where the company can leverage its lean capabilities, layout and vertical integration. “We kind of came to the conclusion that, as much as it might make good business sense to diversify, we were going to make our diversification among customers instead of markets.” One major thing Automatic Spring Products embarked on five years ago was to adopt the tenets of the Rockefeller Habits for Strategic Planning. As a result, the company is committed to developing one new process or product every year for the next three decades. It’s what Moreland describes as their yearly BHAG, or big hairy audacious goal. With a little trepidation the company set out to achieve their yearly goal, and Moreland says they’ve stayed on track the past five years. Their first project involved developing an automated robotic heat treating machine. They’ve gone on to add wet double-disc shim grinding to make precision shims and have added dedicated bending to their capabilities. While most of these BHAGs have taken them into other areas of business, Moreland declares that: “We’ll always make springs. We’ll continue to make better and higher-quality springs. We’ll probably expand into other kinds of springs eventually. That’s still our core, along with stamping and multi-slide.”

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Among the priorities high on Moreland’s list are faith and family. “If you’re a business owner there’s more to life than eight hours of work each day. You have to love what you do or else you can’t enjoy the rest. I enjoy what I do and I enjoy my family and my faith.” Moreland is always thinking about continuous improvement. “We want to offer the marketplace a broader spectrum of products and processes.”

Customer Oriented He says it is all about offering the customer more, “because we really think of ourselves as being part of our customer’s operations.” Walking through the front door of Automatic Spring’s business office, you can spot awards presented to the company over the years by their customers. Moreland is proud of a prestigious award they recently received from Johnson Controls. Last year Automatic Spring Products was the only supplier in Johnson Controls’ automotive division to receive a gold award, and they were named one of the company’s top five overall suppliers of their nearly 4,000 vendors. “We aren’t that good,” says Moreland with humility. He believes the company’s integrity went a long way toward receiving the award presented by their CEO, Stephen Roell. Moreland and Pat DeShaw, Automatic’s COO, went to Milwaukee to receive the award from Johnson Controls. In accepting the award, Moreland said that “never in a million years would I have ever guessed that our business would get here.” He got everyone’s attention when he said there was one problem in receiving the award. “The problem is that this feels so incredibly good that I wish every one of my employees could be here right now, feeling what I’m feeling, because this is almost surreal.” Moreland went on to say, “We think the world of you guys. You are a first-class company that you care enough about your suppliers to do this.” Eventually Moreland’s desire to share the award with Automatic’s employees came true when Johnson Controls’ global vice president of purchasing came to Grand Haven to present the award to the company’s workforce. All employees were bused to the Hayes’ Street facility for cake and punch and a short award presentation ceremony. “It was just a real red-letter day in the history of our business,” said Moreland.

Steve Moreland (left) and the management team at Automatic Spring Products.

In addition to continuous improvement, Automatic Spring Products has developed a comprehensive sustainability program that led them to receive a “Clean Corporate Citizen” designation from the Michigan Department of Environmental Quality. The program recognizes corporations that voluntarily adopt environmentally-friendly practices. Moreland says they are always looking at new sustainability projects, such as reducing electricity and natural gas costs and water consumption.

Faith and Family Among the priorities high on Moreland’s list are faith and family. “If you’re a business owner there’s more to life than eight hours of work each day. You have to love what you do or else you can’t enjoy the rest. I enjoy what I do and I enjoy my family and my faith.” Moreland says some people look at faith as going to church on Sunday morning and then living the rest of their life the other six days a week. “My faith is a 24/7 faith,” said Moreland with conviction. “It is present in my business. People that work in our business know and understand that.” Starting back with his grandfather, Automatic Spring Products has always given five percent of its profits to Christian and faith-based causes to feed the poor and hungry, and to help clothe people. In 2008

the company increased that to 10 percent for all future years. “In addition, five percent of our profits go to the churches of our employees. I think we had 90 different churches that we donated to last year.” Moreland doesn’t believe work and faith can be separated. “So how we behave in our work environment has to be reflective of how we behave in our life.” In his inauguration speech at the SMI Annual Meeting in San Antonio, Moreland candidly admitted that relationships weren’t always as large a passion as they are today. He told his fellow SMI members, “As some of you know, Sandy and I lost our 14-year-old son, Kyle, back in the spring of 2004. It has been a gut-wrenching loss, because at that time, Kyle was my very best friend on the planet. He was so full of life, so smart and so funny.” Moreland related that Kyle was gifted at making people laugh, especially at themselves. “As you can only imagine, an event such as this changes you,” Moreland said with emotion, “it causes you to recalibrate your life going forward. “Prior to losing Kyle, I cared about my relationships with others, but I also was focused on the business and at times so much so, that it was to the exclusion of developing more or deeper relationships. I believe that God teaches you things through events and other people in your life.”

SPRINGS Spring 2012 57

He explained that one of the most important lessons he learned from this tragic event is that “ultimately, people are more important than business. I now live my life with that recalibrated focus and it has made all the difference, it has been a tremendous blessing.” Steve and Sandy spend a lot of time with their daughter, Jennifer McPhee, son-in-law, Michael, and doting over their grandson, Jayden.

“What people often don’t realize is that in our spring industry ‘We make the very things, that make things work.’ I don’t care what it is, whether it is an automobile, an airplane, a train, a truck, refrigerator, range, lawn tractor, leaf blower, cell phone, computer…… the list could go on forever, right? Not one item I mentioned in that list will work, if it doesn’t have good springs in it and it certainly will not work properly if they are not well designed, well tested, well manufactured springs to the tightest of tolerances!”

Manufacturing is Not Dead As Moreland begins his term as the 33rd president of SMI, he hopes to spread his passion for manufacturing. “People that say manufacturing is dead are clueless,” states Moreland. His passion is specifically focused on springmaking. In his inauguration remarks, Moreland said, “We springmakers are critical to maintaining the long-term success of a strong manufacturing presence here in North America.” Moreland explained that when he’s back home in Michigan, he will occasionally get into discussions about how important the spring industry is to the U.S. “As you can imagine at times that claim is questioned. ‘But Steve, you only make springs and clips, you are not making high tech chips, computers, etc. So why do you really think making springs is that

important to our entire manufacturing base? Aren’t you overstating your case?’” Usually he responds to people that, while these statements may be true, “What people often don’t realize is that in our spring industry, ‘We make the very things, that make things work.’ I don’t care what

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it is, whether it is an automobile, an airplane, a train, relationships. And second, driven by a passion for a truck, refrigerator, range, lawn tractor, leaf blower, manufacturing, I hope that you will remember me cell phone, computer…….. the list could go on forever, as the guy who helped to encourage and implement right? Not one item I mentioned in that list will work, if everyone’s creative ideas for the betterment of the it doesn’t have good springs in it and it certainly will not SMI - the North American spring industry and all our work properly if they are not well designed, well tested, member companies.” For Moreland, leading SMI is a great way for him to well manufactured springs to the tightest of tolerances!” Moreland’s involvement with SMI stretches back fulfill his inner drive to be a part of something where he to his father, Darell, who was on the SMI board of can share his passion for continuous improvement. u directors and involved in a number of committees. Moreland similarly got involved in SMI with the technology, education, and membership committees, before becoming part of the SMI executive committee. To his presidency, Moreland hopes to help spread the word to springmakers, especially those who are not SMI members or currently active, about the value of relationships. T H E “Yeah, we’re competitors, but our industry is so segmented and the market’s segmented and the product’s segmented, and with geography it’s very simple and very easy to find springmakers who really are not competitors.” He says through those T H E relationships, springmakers are able to share very detailed information to benchmark with or learn from, “because nobody is excellent in everything.” One of the goals for his presidency is for people to see the value of SMI membership and what T H E they’re missing. “The value of that membership is paid back the first day of any convention in the networking that Hot Roll Bar Products Rod and Wire Products gets done and the educational Rounds Cold-Heading Quality Rounds .250" to 28" Carbon, Alloy, and Stainless Carbon and Alloy .3125" to 1.5625" Hexes .625" to 2.3125" Carbon and Alloy opportunities available,” said (In-house Processing) Squares .500" to 12" Carbon, Alloy, and Stainless Moreland. Flats Inquire Carbon, Alloy, and Stainless Heat Treated Bar Products Moreland says attending SMI Rounds A193B7, F1554 GR105, Cold Finished Bar Products .500" to 28" A354BC, A354BD, A449, conventions should be considered Rounds .3125” to 4” Carbon and Alloy A434BC, A434BD,P110, Hexes .625” to 2.25” Carbon and Alloy a competitive advantage. L80, NACE MRO175 “Everything you learn is something that the majority of this industry did not make the time to get the chance to learn.” As he looks ahead to leading Your First, Last and Only Bar Supplier. SMI, Moreland hopes people will Melrose Park, IL Detroit, MI Dallas, TX Houston, TX Corporate Headquarters remember him as “one of the most 800.877.3830 800.525.7814 800.866.1401 800.323.0745 approachable SMI presidents ISO 9001:2000 Certified Supplier • www.kreher.com ever, because of my passion for

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Inside SMI

SMI Rides into San Antonio for Annual Meeting

With the beauty of the Texas Hill Country in the background, SMI held its 79th annual meeting at the JW Marriott San Antonio Hill Country Resort and Spa from March 16-20, 2012. The meeting marked the end of Scott Rankin’s term as SMI president and the installation of Steve Moreland, Automatic Spring Products, as the association’s new president. Rankin, of Vulcan Spring and Manufacturing, will serve as immediate past president. The rest of SMI’s executive committee are vice president, Russ Bryer, Spring Team, secretary/ treasurer, Mike Betts, Betts Spring, and at large, Hap Porter, SEI Metaltek. SMI’s committees and board of directors met on Saturday, March 17. The board welcomed its newest member, Dan Sceli of Peterson Spring. At the board of directors meeting it was announced that SMI past president Dan Sebastian has been named an honorary member of SMI. The SMI board thanked Sebastian

for his many years of service to the association and wished him well upon his retirement from MW Industries. In other board news, Hap Porter reported that the new SMI 401k program through ING continues to go well and is a “very attractive program.” His company has enrolled in the program and has enjoyed significant savings. The board is looking for a fulltime technical director to replace Jim Kobrinetz. The technical committee endorsed the idea that SMI needs to continue staffing the position with a full-time person. The board voted to continue paying dues to the National Association of Manufacturers (NAM), but will attempt to negotiate a better dues rate. In addition, there will be a concerted effort to get more news about NAM into the hands of SMI members. It was reported that the SMI Regional Scholarship Program continues to go well. Ten recipients

SPRINGS Spring 2012 61

have been chosen for $2,000 awards in 2012. In total, 99 students applied for scholarships in 2012. It was also announced that an 11th scholarship will be added in 2013. It is being presented by Peterson Spring in honor of former SMI president Bud Peterson, who passed away last year. Tom Armstrong of Duer/ Carolina Coil reported on the ANSI meeting held last November in Venice, Italy. He pointed out that the delegation from China has proposed a three-year project to establish a leaf spring standard. Armstrong encouraged SMI members to contact him if they would like to participate in the development of the leaf spring standard. The next ANSI ISO TC 227 meeting is scheduled for November 15-16, 2012 in Xi An, China. Jim Wood told board members that OSHA has become a lot more “picky” in their inspections of spring manufacturing plants, spending as much as three or four days for

62 SPRINGS Spring 2012

their visit, and bringing with them a hygienist and obtaining both air and audio samples. Wood reported that he had a record number of visits to spring plants last year and business is already brisk for 2012. Moreland reported that SMI will be working on a new strategic plan in 2012. This will include an all-day focus group session to be held during SpringWorld 2012. The focus group will be provide valuable feedback to help establish plans and goals for SMI. The SMI board will next meet on October 2, just before the start of SpringWorld 2012 in Rosemont, Ill.

Receptions and Education The SMI annual meeting included an opening reception on the lawn of the JW Marriott on Saturday, March 17. A women’s event on Sunday, March 18 included a humorous presentation by author Mary Sue Koontz Nelson. SMI members boarded buses later in the evening

for the Knibbe Ranch to participate in a welcome reception and dinner. The Knibbe Ranch was founded in 1852 and is one of the few remaining Century Heritage Ranches in the state of Texas. On Monday, March 18, Alan Beaulieu, a principal of the Institute for Trend Research, challenged SMI members to “Make Your Move.” He shared the latest economic data. He said there are seven “mustwatch” items that springmakers should pay attention to. They include: money supply, corporate bonds rate-of-change, U.S. leading indicators, purchasing managers index, retail sales, employment and nondefense capital goods new orders. In terms of a future outlook, Beaulieu said 2012 should see an ongoing recovery while in 2013 he sees a flattening of the economy and the beginning of a “mild” recession that will carry into 2014. He does see opportunities ahead with steady growth from 2015 through 2017.

A golf outing was held on Monday afternoon at the AT&T Oaks Course, the home of the Valero Texas Open. The winning team of Jake Cihal, Robert Jacobson, Jeff Van Natta and Bill McClenathan shot an 8 under 64. On Tuesday, March 19, author and speaker, Sarah Miller Caldicott presented “Innovate Like Edison: How to Drive an Innovation Culture.” Caldicott is a great-grandniece of Edison and said he set the climate for innovation, showing how it is possible to pioneer new markets. After her keynote presentation, Caldicott led SMI members in a team building exercise on topics such as: how to create collegiality among colleagues, how to magnify the effect of team interaction through collaboration, how to innovate by approaching markets or customers differently and ideas for assessing needs objectively. Miller also signed copies of her book, “Innovate Like Edison,” for those in attendance.

Passing the Gavel The meeting concluded on Tuesday evening with the PresidentElect’s Reception and Dinner. As the incoming president, Moreland thanked Rankin for his years of service to SMI and presented him with several awards to honor his service. And Rankin ceremoniously handed the gavel to Moreland to begin his term at the helm of SMI. In his inauguration remarks, Moreland said his presidency would focus on his two passions. “First, is my passion for manufacturing, and specifically my passion for spring manufacturing in North America,” Moreland explained. Moreland said his other passion is for relationships. “As your incoming SMI president, I want to meet each of you and get to know something important about you. About your company, about your family and about what makes you tick. At the end of the day, the SMI is just an organization of people and relationships.”

SMI wishes to thank the many sponsors who made the 79th annual meeting of the association possible. Gold Sponsors - American Spring Wire, Anchor Abrasives, Automatic Spring Products Corp., Gibbs Wire and Steel, Industrial Steel & Wire, The Interwire Group, JN Machinery, Suzuki Garphyttan, Ulbrich, Wafios and Zapp Precision Strip. Silver Sponsors - Leggett & Platt Incorporated Wire Group, Precision Steel Warehouse, and United Wire Company. Bronze Sponsor - Amstek Metal. The 2013 SMI annual meeting will be held April 5-9 at the RitzCarlton Dove Mountain in Marana, Arizona, near Tuscon.

SPRINGS Spring 2012 63

SMI Mourns Passing of Member It is with deep regret that Springs announces the passing of Steve Bown, 51, president of Performance Springs, Inc., on March 2, 2012. He was killed in a single-engine plane crash in North Carolina, along with his passenger and companion, Karyn Martin. Bown was a resident of Commerce Township, Mich. Bown was a graduate of Western Michigan University where he earned a bachelor’s degree in physics. Bown was an engineer for Peterson Spring before starting Performance Springs

in 1996 with Larry Luchi, a former Peterson Spring CFO. A recent Popular Mechanics article profiled Performance Springs’ staff and the company’s mission. A plaque in the company’s conference room notes that Performance Springs helped Jeff Gordon win at Rockingham in 1998.The story said the company’s valve spring was first used in Gordon’s NASCAR race. “It revolutionized engine building and the country’s most popular motorsport,

but few people have ever heard of it,” according to Popular Mechanics. By 2001, Bown reported, “all the teams were using our springs.” Bown was preceded in death by his father, Robert Bown; brother, Mark Bown; and Martin. He is survived by his mother, Pat Bown; children, Jennifer and Craig Bown and their mother, Cindy; brother, Michael (Pam) Bown; nephew, Kevin and niece, Alison.

SMI's Lynne Carr Joins NESMA and WCSMA Boards To bolster its support for the regional spring associations, SMI general manager L ynne Carr has joined the boards of the New England Spring and Metal Stamping Association (NESMA) and West Coast Spring Manufacturers Association (WCSMA). Carr is serving on both boards in an ex-officio capacity. “Though SMI has no official ties to the regional spring groups, we’ve long supported their efforts to better the industry as a whole,” said Carr. “I’m honored to join the boards of NESMA and WCSMA and look forward to contributing to their worthwhile networking and educational activities.” For more information, visit www.nesma-usa.com or www. wcsma.us. u

64 SPRINGS Spring 2012

thanks the following sponsors for their support of our 79th Annual Meeting Gold Sponsors

Silver sponsors

Bronze Sponsor

New Products New Grooveless Metric Retaining Rings from aMsp Stocked in 12 Sizes All Metric Small Parts (aMsp), a leading provider of metric hardware components, has announced the availability of 12 off-the-shelf metric spring steel HRC 46-52 grooveless retaining rings. These rings have a black oxide finish and can be identified as the MKA5DNMGR555…Series. These retaining rings are for grooveless use and can be used for external axial assembly. In the series, the 12 different retaining rings are designed to fit shaft diameters from 2 mm to 20 mm. Their allowable axial load ranges from 50N to 750N. A more detailed 3-D CAD view of these 12 grooveless metric retaining rings can be obtained from the aMsp website, which also offers an extensive array of all metric standard industrial machine components. Products include knobs, door latches, panel latches, cabinet latches,

boat latches, pull handles, handwheels, cranks, grips levers, locks, catches, hinges, screws, washers, springs, keys, plungers, and leveling and support feet.

All of these are RoHS-compliant products. For more information, visit allmetricsmallparts.com/press/retainingrings.htm.

AAC stocks a wide range of antivibration and shock isolation products, which include: stud and nut type mounts, base plate fastened mounts, wheels, leveling and foot mounts, suspension mounts, spring, steel mesh and cable mounts, bumpers, shock absorbers and channel mounts, bushings and grommets, pads and tapes, and couplings. These products are stocked in different

materials including: rubber, neoprene, urethane, Sorbothane®, stainless steel mesh and springs. Many are suitable for use in extreme environmental conditions. Of special interest is a complete selection of silicone gel floor mounts, pads, sheets, plus paste-type thermal gel. Additional technical specifications are contained in Catalog V110 or at http:// www.vibrationmounts.com. u

Series of Bell-Shaped Rubber Mountings from AAC Are Designed to Dampen Shock and Vibration A new series of bell-shaped rubber mountings from Advanced Antivibration Components (AAC) are designed to dampen shock and vibration for loads up to 887 kgf (1956 lbf). Identified as the V12Z55M062M... Series, they are made from a combination of natural rubber and styrene-butadiene rubber compound to offer excellent pliability and elasticity. Of the 12 isolators in the series, two have a four-hole mounting and ten have a twohole mount configuration. They all feature a welded steel-plated nut at the top of the housing. They are available at the AAC eStore, where you can order online, request a quote, download CAD models, check stock plus view catalog and technical pages. Typical applications include their use under controllers, large pumps, fans, motors, compressors, and other medium load equipment. Designed for use in compression, their durometer hardness ranges are 45 and 60 ±5. Their static loads range from 196 kgf to 887 kgf (432 lbf to 1956 lbf).

66 SPRINGS Spring 2012

Advertiser’s Index A & D Trading (440) 563-5227. . . . . . . . . . . . . . . 5 Admiral Steel (800) 323-7055. . . . . . . . . . . . . . 22 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . 44 CASMI (630) 369-3466. . . . . . . . . . . . . . 16 Century Spring, Division of MW Industries (800) 237-5225. . . . . . . . . . . . . . 35 Diamond Wire Spring Co. (800) 424-0500. . . . . . . . . . . . . . 32 Dispense Works (815) 363-3524. . . . . . . . . . . . . . 14 Elgiloy Specialty Metals (847) 695-1900. . . . . . . . . . . . . . . 8 Forming Systems Inc. (877) 594-4300. . inside front cover, back cover Gibbs Wire & Steel Co. Inc. (800) 800-4422 inside back cover Gibraltar Corporation (847) 769-2099. . . . . . . . . . . . . . 39 Industrial Steel & Wire (800) 767-0408. . . . . . . . . . . . . . 49 InterWire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . 1

JN Machinery (224) 699-9161. . . . . . . . . . . . . . 56 Kiswire (201) 461-8895. . . . . . . . . . . . . . 30 Kreher Steel (800) 323-0745. . . . . . . . . . . . . . 59 Lapham-Hickey Steel (800) 323-8443. . . . . . . . . . . . . . 19 Larson Systems (877) 780-2131. . . . . . . . . . . 25, 34 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . 20 Mount Joy Wire (800) 321-2305. . . . . . . . . . . . . . 27 NIMSCO (563) 391-0400 . . . . . . . . . . 28, 58 Precision Quincy (800) 338-0079. . . . . . . . . . . . . . . 9 Precision Steel Warehouse (800) 323-0740. . . . . . . . . . . . . . 42 Proto Manufacturing (800) 965-8378. . . . . . . . . . . . . . . 7 Radcliff Wire (860) 583-1305. . . . . . . . . . . . . . 54 RK Trading (847) 640-9371. . . . . . . . . . . . . . 12 Shinko Machinery +81-6-6794-6610. . . . . . . . . . . . . 3

Simplex Rapid (563) 391-0400. . . . . . . . . . . . . . . 6 Spring Manufacturers Institute (630) 495-8588 . . . . . . . . . . . 36, 65 SPX Components/Fenn Division (860) 594-4300. . . . . . . . . . . . . . 48 Suzuki Garphyttan (574) 232-8800. . . . . . . . . . . . . . 50 Tool King (800) 338-1318. . . . . . . . . . . . . . 52 Ulbrich Stainless Steels (203) 239-4481. . . . . . . . . . . . . . 64 United Wire Co. (800) 840-9481. . . . . . . . . . . . . . 33 Vulcan Spring & Manufacturing Co. (215) 721-1721. . . . . . . . . . . . . . 38 WAI Wire Expo 2012 (203) 453-2777. . . . . . . . . . . . . . 60 Zapp Precision Strip (203) 386-0038. . . . . . . . . . . . . . 29

Visit SMI at Spring World Booth #521 October 3-5, 2012

Join SMI at our next annual meeting! Ritz-Carlton Dove Mountain, Marana, Arizona, April 5–9, 2013.

SPRINGS Spring 2012 67

Snapshot Torsten Buchwald Kern-Liebers USA, Inc. Company name: Kern-Liebers USA, Inc., Holland, Ohio

Brief history of your company: Kern-Liebers is a family owned business which has been in operation since 1888. It employs more than 5,000 people in over 50 locations worldwide. In 1975 Dr. Hans-Jochem Steim, chairman of the board, founded Kern-Liebers USA, Inc. in Holland, Ohio. Since then, Kern-Liebers USA has expanded operations to various subsidiaries in Ohio, Michigan, North Carolina, Texas, and Mexico.

Job title: President and CEO Birthplace: Hanover, Germany Current home: McAllen, Texas Family: My wife, Karin, and her two cats.

What I like most about being in the industry: It is an attractive industry which has a variety of applications in automotive, aerospace, industrial, consumer goods, and other sectors.

Favorite food: German food, specifically Rolladen (thinly sliced beef, stuffed, and slowly cooked) and a good glass of Argentinean wine.

Favorite books/author: “Talent Is Overrated” by Geoff Colvin.

Favorite song/musician: A variety of different music. What I appreciate the most is listening to my wife play the piano.

Hobbies: Biking, fishing, and cooking. Favorite places: Wherever I can relax and travel with my wife.

Best times of my life: The day I met my wife.

Torsten Buchwald and his wife Karin

A really great evening to me is: Inviting friends over to my

The most difficult business decision I ever had to make was:

house, preparing a good meal, and concluding with a kitchen party.

Layoffs during the Great Recession. Prior to working at Kern-Liebers, we had to reduce head count in Michigan by over 300 people. Michigan was extremely tough during those days and I saw the deep impact it had on everyone involved.

The one thing I can’t stand is: Lack of commitment and execution.

My most outstanding quality is: Being honest and caring.

People who knew me in school thought I was: Serious. I knew I was an “adult” when: Over

I would like to be remembered in the spring industry for:

20 years ago when my friend Steffen told me we had known each other for over a decade.

But people will probably remember me for: The fellow from Kern-Liebers

If I weren’t working at Kern-Liebers, I would like to: Operate a Posada in Mendoza and cultivate my own wine.

68 SPRINGS Spring 2012

Role model: Thomas Edison.

Straightforward and honest.

with the strong German accent.

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Why Partner with Gibbs? Inventory.

Maintaining exceptionally large multi-million dollar inventories at each of our six service centers is a top priority at Gibbs. With a 96% in-stock track record, you can rely on us to have exactly what you need when you need it. Want to see for yourself? You can check our inventories as often as you want using the internet.

to customer service well beyond traditional expectations. That’s why so many leading companies have chosen to partner with us.

Since 1956, Gibbs Wire & Steel has represented a combination of excellent quality product, knowledgeable and reliable people, leading edge technology and innovation, the lowest total cost, and a commitment

The People You Can Rely On For Wire And Strip

1.800.800.4422 www.gibbswire.com Connecticut

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Indiana

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Texas

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California

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Nor th Carolina

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Ontario

INTRODUCES: 20XM 11-15 AXES SPRING FORMER

FEATURES

▪ 11-15 independent synchronized servo axes. ▪ Rotating quill & wire. ▪ Precision ball screw main slide for OD & Forming accuracy. ▪ Toolings/Servo Motor direct drive for speed & stability. ▪ Single and Multi-radii servo winders. ▪ Feed roller pressure gauges. ▪ On-screen diagnostics with alarm, status, and corrective action. ▪ Touchscreen interface. ▪ Wire range: 0.6mm - 2.0mm

See at:

2012 HTC 20XM

CL SERIES 5 AXES COILERS FEATURES

▪ Wire range: 2.2mm - 6.0mm OR 3.0mm - 8.0mm ▪ Totally cam-less operation. ▪ Rotating and straight cutoff capability standard. ▪ Mandrel in-out movement. ▪ Fast right hand to left hand coiling conversion. ▪ Feed roller pressure gauges. exchange ▪ Electronics cabin heat exchanger. ▪ O.D. control standard. ▪ Programmable air valves for flexibility. ▪ On-screen diagnostics.

See at:

2012

HTC 80CL

www.formingsystemsinc.com www.spring-testers.com

COILERS – FORMERS – BENDERS – GRINDERS – OVENS – TESTERS – VISION SYSTEMS