bringing the assembly line to mold production

Fall 2016

Bringing the Assembly Line to Mold ProductionTesting for Skills Certifi cation

Connecting with Youth

Quote Volume Increases

The Offi cial Publication of the American Mold Builders Association

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AMBA-Summer-2016-TV.indd 1 8/11/2016 4:40:25 PM

3www.amba.org

DEPARTMENTS 4 Speak Out

16 Product

30 Industry

34 Association

46 Calendar

46 Ad Index

www.amba.org

contentsFall 2016

FEATURES6 AMBA Leadership Summit

8 TrendsCompumold Tool and Design Wins First Annual Educational Outreach Contest

12 FocusTake Steps to Prevent Workplace Violence

18 OperationsModeling Henry Ford: A-1 Tool’s Assembly Line Production Process

Lean Manufacturing: Who, What and Why?

24 PreviewMold Building Suppliers and Partners to Exhibit at PLASTEC West

26 StrategiesSales and Quoting: Tool Shops Express Positive Sentiment for 2016

36 UpdateSkills Certifi cation Program Intends to be Industry Standard

40 OutlookMold Builders May Qualify for the Domestic Production Activities Deduction

43 ManagementConcrete Core Values: The Driving Force to Business Success

18

Cover Photo Courtesy of Creative Technology Corp.

8 12

4 the american MOLD BUILDER Fall 2016

American Mold Builders Association7321 Shadeland Station Way, #285

Indianapolis, IN 46256p 317.436.3102 • f [email protected] • www.amba.org

Offi cers and Board of DirectorsPresidentJustin McPhee, Mold Craft, Inc.

Immediate Past-PresidentMichael Bohning, Creative Blow Mold Tooling

Vice President and TreasurerToby Bral, MSI Mold Builders

Secretary and Legal CounselAlan Rothenbuecher, Benesch Law

Board of DirectorsJim Bott, INCOERaymond Coombs, Westminster Tool, Inc.Robert Earnhardt, Superior Tooling Greg Eidenberger, Paragon D&E William Moore, Delta Technologies GroupMike Mullholand, Freeman Co.Jim Sperber, Master Tool & MoldGlenn Starkey, Progressive ComponentsMike Zacharias, Extreme Tool & Engineering

AMBA TeamTroy Nix, Executive DirectorKym Conis, Managing DirectorSusan Denzio, Business Manager

Advising Editor: Kym Conis Advertising/Sales: Susan Denzio Published by:

2150 SW Westport Dr., Suite #101Topeka, KS 66614P: 785.271.5801

Managing Editor: Dianna BrodineAssistant Editors: Lara Copeland, Nancy CatesArt Director: Becky ArensdorfGraphic Designer: Jen Clark

Opinions expressed in this publication may or may not refl ect the views of the Association and do not necessarily represent offi cial positions or policies of the Association or its members.

www.petersonpublications.com

S ince the election has come and gone, we should probably discuss the results… No, we shouldn’t go into politics here! What I am hoping for –

now that the election is done – is for the big O EM s to release all the programs that have been on hold or in the wings for what seems to have been an eternity. I heard of mix ed workloads around the country when I visited with R obbie Earnhardt and many other friends at the S uperior Tooling shop tour in Wake F orest, North Carolina. What an awesome event and mold shop! I t seemed most shops were busy, some not as much and MoldMaking

Technology is showing the G BI barometer for O ctober at 4 6 .1 , the lowest since J anuary. Personally, at M old Craft, we are doing well, and things continue to ramp up at a quick pace.

O ne unplanned topic that came up during the shop tour cross- talk at S uperior Tooling was employee appreciation and team building. Although it wasn’t intentional, it was very fi tting after learning about the effort Robbie has put into the North arolina apprenticeship program, NCTAP. While many of us – probably most of us – don’t have an apprenticeship program, there are things we can be doing within our own walls to ensure we train and retain our current employees. The question was asked: “What are people doing for their employees outside of technical training?”

A 1 0 - to 1 5 - minute discussion ensued, with a bunch of ideas that became “takeaways” for each attendee. S ome ideas offered were as simple as sending a birthday card to the employee’s home or taking each employee to lunch during the birthday month or employment anniversary. S ome are taking all “birthday month employees” to lunch at the same time. The general consensus is that this time is not used for “shop talk” or “performance review” but to learn about the employee’s family, interests outside of work and generally build a better, stronger relationship.

O n the team- building front, there were several companies that talked about having cornhole tournaments with brackets, randomized team draws and double elimination. This is a game that everyone can play, and it doesn’t take up a lot of room or investment. M any companies hold cookouts during the summer. ( I n M innesota, we usually have to wait until J uly! ) S ome companies are hosting it, some have employees doing the cooking, some have departmental teams doing the planning and cooking, some are taking one person from each department and putting them on a team together to do the planning and cooking… the options are endless.

As I left the shop tour event, I was reminded why the AM BA is such an awesome group of people. Companies like S uperior Tooling openly share “what makes them special, ” attendees provide constructive opportunities for improvement to the S uperior Tooling team, attendees are happy to share ways to improve employee retention, and sincere friendships were strengthened as attendees wished each other safe travels with a handshake and a man hug. I know that sounds weird, but tremendous relationships are built at these events.

I encourage you to take a 3 3 - foot leap outside of your comfort zone and consider attending the L eadership S ummit, annual conference or the nex t shop tour. At the very least, take a 3 3 - foot leap and spend some quality time with your employees during a simple birthday lunch. I t will go a long way.

J ustin M cPhee, M old Craft, I nc.

Justin McPheeAMBA PresidentMold Craft, Inc.

SPEAK OUT ///

Thursday, February 23The Emotionally Intelligent Leader:

Driving Change and Engaging MillenialsPresenter: Heather Haas, ADVISA

High emotional intelligence differentiates the best leaders from the rest. In fact, 90 percent of leaders who are objectively benchmarked as “top performers” have high emotional intelligence as compared to their peers. That’s because strong emotion has the power to override rational thinking. Emotions tend to be strongest during times of stress, change and

transition. Furthermore, most organizations have up to four different generations trying to communicate and work together positively. Thus, leaders who are highly self-aware and can self-manage their emotions, communications and behaviors during times of change and transition will achieve greater success and prosperity.

HEATHER HAAS

Wednesday, February 224 pm Check-in7 - 9 pm Welcome Reception and Dinner9 pm Live Entertainment

Thursday, February 237 - 11 am Breakfast in Room/on Property8:30 am - 12:30 pm Leadership Workshop 12:30 pm Lunch and Free Time*1:30 - 5:30 pm Aerial Tram Tour**6 pm Drinks (Optional)7 pm Dinner on/off Property9 pm Live Entertainment

Friday, February 247 - 11 am Breakfast in Room/on Property9 am - Noon Leadership WorkshopNoon Lunch and Free Time*6 pm Drinks (Optional)7 pm Dinner on/off property9 pm Live Entertainment

Saturday, February 257 - 11 am Breakfast in Room/on Property7:30 - 10:30 am BMW Performance Racing**6 - 7:30 pm Farewell Reception7:30 pm Dinner on/off Property9 pm Live Entertainment

Sunday, February 267 - 11 am Breakfast in Room/on Property11 am Check-out

* Afternoons and evenings are free to enjoy the property.

** Optional AMBA Excursions.

program Schedule

2017LEADERSHIPSUMMITfebruary 22-26in scenic desert springs

leadership WORKSHOPS

The luxurious JW Marriott Desert Springs Resort & Spa offers a tropical paradise amidst the desert’s warm February climate. Perfectly placed in Palm Desert, the sumptuous resort offers a spectacular backdrop for rejuvenation. Surrounded by stunning views of the San Jacinto Mountains and two creatively designed championship golf courses, the resort features exquisitely appointed guest rooms, five separate pools, a world-class spa to revitalize your body and spirit, sensational dining at six signature restaurants, an impressive collection of exotic birds, boat tours of the resort’s picturesque waterways and many exciting excursions.

Located just 12 miles from the Palm Springs International Airport (PSP), 82 miles from the LA/Ontario International Airport (ONT) and five minutes from the shops and restaurants of El Paseo, the JW Marriott Desert Springs Resort & Spa is designed to guarantee your perfect rejuvenating getaway surrounded by luxury and comfort.

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optional AMBA ExcursionsAerial Tram TourThe rotating cable cars of the Palm Springs Aerial Tram on Mt. Jacinto guide passengers 2 1/2 miles up the mountainside to a height of 8,516 feet using a push/pull method. The Mount San Jacinto State Park and Wilderness offers 54 miles of hiking trails, gift shop, two restaurants and a lounge, as well as several viewing terraces.

BMW Performance RacingTimed Autocross – Participants will get three official attempts to set the fastest lap of the day, which will earn them the ultimate bragging rights to bring away from the event – Fastest Driver!

Performance Drive – Drivers will get to experience the BMW track facility in an open lapping format on a “low risk” course.

Instructor Hotlap – Each participant will get to ride along with one of the BMW instructors to see what the cars are truly capable of with a pro driver behind the wheel.

ADAM TIMM

Friday, February 24These sessions are open to both attendees and guests.

Emotional Intelligence and My OrganizationHear from leaders who have focused on emotional intelligence as a competitive advantage. Learn how to roll out such an initiative and about potential bottom-line impact.

Stress Is Optional! 5 Keys to Making This the Best Week Ever

Facilitator: Adam Timm, ZenLife

Stress is optional?! Says who? This session is for superachievers who want to supercharge their work days and enjoy off days, too. Combat the stress of time pressure, burnout and mental demands with five powerful keys, and make every week the best ever. Learn how to thrive amidst daily challenges by turning them into fuel for the day.

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thank you to our sponsors


TRENDS

Compumold Tool and Design Wins First

Annual Educational Outreach Contest

As the baby boomer generation transitions into retirement, the manufacturing industry is seeing a

considerable gap between the talent needed to run a successful business and the available talent. With younger millennials preparing to head into the workforce, many mold manufacturers are coordinating outreach efforts in their local communities to combat shortages and eventually employ ualifi ed candidates.

The American M old Builders Association A A held its fi rst annual ducational

O utreach Contest recently to recognize member companies for their efforts in actively encouraging young people to seek career opportunities in moldmaking. The companies were asked to provide a description of how their organizations are working with their local communities

Photos courtesy of Compumold.

Romold and Ameritech Die

& Mold also honored

and strategically partnering with schools, programs and students to increase interest and skills while also raising awareness within the moldmaking industry. The association membership voted online after reviewing the entries, and winners were announced in coordination with M anufacturing D ay, held on O ct. 7.

The winner of the fi rst annual award is Compumold Tool and D esign, Phillips, Wisconsin. R omold I nc., R ochester, New Y ork, received second place, and Ameritech D ie & M old of M ooresville, North Carolina, was third. S elections from each company’s submission information follow, providing insight into outreach efforts by fellow mold building companies.

First Place: Compumold Tool and Design, Phillips, WisconsinCompumold Tool and D esign, a member of the Phillips Chamber of Commerce, designs and builds injection molds, specializing in small to medium molds for the automotive, medical, consumer, industrial and electronic markets. I ts role in educating the local youth and promoting the mold building industry has led Compumold to work with Phillips Plastics Corporation and nearby schools to bring training to the area.

• Compumold participates in a youth apprenticeship program, which is organized through Northcentral Technical College ( NTC) and Phillips H igh S chool in Phillips, Wisconsin. I t gives employers the opportunity to connect with local youth and access a pipeline of skilled employees to help shape the quality of the future workforce. Through this program, Compumold hired a high school student to take part in the youth apprenticeship program to provide an on- the- job expe rience in both manufacturing and engineering areas. Compumold worked side- by- side with the student

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to garner the best expe rience. After eight months of mentoring, student R yan Trewyn was able to design a promotional coaster that incorporated the NTC program logo and the insert for the exi sting injection mold for NTC. Currently, NTC is using this mold in its curriculum to teach students about polymer ow. Trewyn now is completing his fi rst year in the

M echanical Engineering program at UW- Platteville. H e said his expe rience as a youth apprentice working at Compumold Tool & D esign afforded him a hands-on expe rience that prepared him well for his college experience and helped secure his interest in the fi eld of engineering and manufacturing. H is future plans could include coming back to the Northwoods for a career as a mechanical engineer.

• Compumold took part in its local high school career forum to help students understand the types of jobs that are available in the community. This led to the I ndustrial Arts M etals class touring Compumold' s facility and getting the basic understanding of CNC, ED M , Wire ED M and grinding technologies.

Second Place: Romold Inc., Rochester, New YorkH oused in an 1 1,50 0- square- foot facility, R omold, I nc., manufactures plastic injection molds, die- cast molds and related components for the optical, offi ce and imaging equipment, medical devices, aeronautical, automotive, packaging and consumer product industries. I ts services include part manufacturability and tool consulting, mold design and engineering, and mold manufacturing. President L ou R omano has advocated many years for careers in the manufacturing skilled trades by speaking with and beyond the local community to promote moldmaking. R omold partners with nearby schools to in uence and inspire prospective students.

• R omano is a member of the R ochester Technology and M anufacturing Association ( R TM A) and the M onroe Community College Precision M achining Advisory Board. The advisory board oversees the curriculum for the precision machining program to ensure that students are learning the skills and training necessary for real world application.

• R omold has a total of 16 employees, two of whom are New Y ork S tate R egistered M old M aking Apprentices. I t hosts school tours for local vocational and high schools, as well as for young adults working toward G ED s. Additionally, R omold sponsors a local high school robotics team and regularly attends job fairs.

• R omano has participated in multiple forums in R ochester, New Y ork, as well as Washington, D C, to promote advanced manufacturing skills training. At the 2015 National O pportunity S ummit, called “WE G O T TH I S ,” R omold assisted M onroe Community College in highlighting the

Compumold participates in a youth apprenticeship program, organized through a local high school and technical college.

Thank you for

your support in 2016.

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importance of public- private partnerships. M ost recently, R omano spoke at the 2016 M anufacturing D ay Expo.

Third Place: Ameritech Die & Mold Inc., Mooresville, North CarolinaAmeritech D ie & M old is a mold manufacturer that provides product engineering, development, consultation and the

TRENDS


page 9

Robot Dynamic 150L

EROWA Robot Dynamic 150L

latest in manufacturing simulation software. I ts web- based meeting capabilities allow clean communication from multiple locations. Ameritech works to align education and workforce development initiatives in its local community and strives to close the skills gap by creating and supporting a European- style apprenticeship program that gives today’s students fi rsthand workforce expe rience.

• In , Ameritech oined a consortium of fi ve larger manufacturing companies that recognized the need for a strong apprenticeship program, and the idea of Apprenticeship 2000 came to life. Apprenticeship 2000 is an organization that began as an industrial apprenticeship partnership located in the Charlotte, North Carolina, region. I t was formed to offer technical career opportunities to motivated high school students and employment after graduation. Through the program, the Apprenticeship 2000 partner companies obtain highly skilled employees to fi t their technical ob needs. The Apprenticeship 2 partner companies provide onsite apprenticeships in various technical trades including mechatronics, tool and die, injection molding and CNC machining. The 8,000-hour training program spans four years, during which apprentices earn an AAS degree from Central Piedmont Community College. Upon graduation, apprentices are awarded a ourneyman’s ard and ertifi cate by the State of North arolina and a certifi cate from the US Department of abor. The benefi ts of this program include a starting salary of $34,000, free college tuition and a guaranteed job.

• Ameritech works closely with local high schools and career and technical education ( CTE) counselors. H igh school juniors and seniors considered for an apprenticeship with the company should have completed courses in algebra and geometry and maintain certain grade, attendance and other criteria.

• US S ecretary of L abor Thomas Perez and US R epresentatives V irginia F oxx and R obert Pittenger recently toured M ooresville- based Ameritech D ie and M old I nc. to see the Charlotte- area program in action. They talked with business owners, educators, apprentices and parents about the alternative to college education. n

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FOCUS

by Van Harp, partner, Harp & Associates, LLC

V iolent acts in the workplace are a reality of today. An active, engaged management team with a plan can reduce the threat of an incident. When taking steps to keep your business free from violence, remember:

Planning, Preparation and Practice = PreventionThe management team should concentrate on four areas to reduce the threat of violent conduct in the workplace and prepare for action should an event occur.

1 . Code of conduct2 . R elevant policies and procedures3 . Training4 . Assessments

Code of conductBasically, a code of conduct creates the guardrails that illustrate the acceptable

and unacceptable behaviors and attitudes in the workplace. These guardrails are the essentials of good human behavior: All people should be treated with respect; disrespectful, insubordinate conduct is not tolerated; people should be treated in a way that allows them to maintain their dignity and respect; and an opportunity should be provided to vocalize disagreements and hammer them out.

The goal is to create a successful, thriving and productive workplace environment. I n many cases, that begins with the culture, and

Take Steps

to Prevent

Workplace

Violence

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FOCUS

culture often begins with the unspoken code of conduct that governs behavior. Every company is in business to make money. That can’t be done in a facility where employees constantly are fi ghting or working separately. Instead, the leaders in each facility must build a culture that sets the tone. If leadership belittles employees, creates a culture of fear or rules without allowing employees to provide feedback, the seeds can be sewn for violent behavior.

Understanding of the code of conduct in a facility makes it easier to know when employees are acting in ways outside of those guardrails. That can be an early warning sign of a situation that could be dangerous.

Relevant policy and proceduresEach business should outline policies and procedures designed to enhance safety and draw further attention to the guardrails of the code of conduct. These can include the following:

• No weapons• No drugs• No violent personal contact

• No belittling or threatening behaviors, including verbal assault

For these to be relevant and made important to the organization, there must be an owner who is responsible for the original iteration of the policies. The owner then takes responsibility for updating the policies when necessary and reviewing current laws for compliance. The policies should be current and dated, with updates provided annually.

In my personal opinion, the employees should be given ownership of the policies and procedures at performance appraisal time when being evaluated for salary increases or bonuses. Defi ne each of the expectations and, at appraisal time, note these as objectives in the performance plan. Not only does this limit company liability by clearly setting guidelines, but it also refreshes and emphasizes the importance of the policy to each employee. Compliance with the policies and procedures should be addressed and annotated in an actual review document during the performance appraisal.

Positive reinforcement of the policies and procedures can serve as motivation to continue following those guidelines. By tying successful rules compliance with positive performance reviews, the desired behavior is encouraged and the facility is a little safer.

TrainingWhile it may seem that no one can adequately prepare for workplace violence, there are steps that can be taken to reduce the possibility of a dangerous event and save lives in the event the unthinkable happens.

In-house speakers. Ask an employee who has the ability and willingness to lead a discussion about workplace violence. This is not a public speaking event – instead, it’s done during the team meetings that are already happening during the daily work routines. Ask employees to talk about workplace violence, misconduct, knowing employees and creating a safe environment. To teach is to learn.

Event preparation. The 24/7 news cycle can be a signifi cant stressor, but it also provides an opportunity to learn. When there is an incident in the US or even globally, do a brief analysis. Ask employees what lessons can be learned – and importantly, was there a kernel of validity to the grievance? What could they look for to prevent an incident like the one that occurred? What would they do in that situation? The mental “what if’s” are valuable. As a team, talk about how to change behaviors to improve response or prevent the incident completely.

Role playing/simulations. This one can be more diffi cult. Role playing is uncomfortable, and it might feel silly, but it’s important to start the conversations about preventing and reacting to


page 13

I N S U R A N C E S O L U T I O N S F O R T H E M O L D B U I L D I N G I N D U S T R Y

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workplace violence. D uring team meetings, offer a situation for discussion. These situations can be on the continuum from “the employee’s behavior doesn’t seem right” to “a dangerous situation is happening on the oor. What do you say ow do you react?

It’s awkward and uncomfortable when these simulations fi rst begin. The team will be embarrassed, unsure of the “right” answers and worried about being offensive. I t’s important to put aside all personal worries to acknowledge that these training ex ercises could be an actual life- threatening or life- ending event. There is no stupid answer during the discussions, because the point is to fi nd the better answers.

O nce the conversations start, everyone begins to feel better because, while no one wants to think a violent event will happen, it’s better to have a plan. Addressing the possibility is a step toward being prepared.

AssessmentsTwo steps can be taken when assessing a workplace – inside and out – and its employees for potential weak points.

Facility assessment. An assessment of the environment inside and outside a facility should be done. I recommend a 3 6 0 - degree M BW – management by walking around. Walk the entire facility while employees are there and doing their jobs. This shows concern for their safety and elevates awareness, but also provides information about the facility during the work day. What windows are unlocked? What doors are unlocked? Are there areas of concealment in the outer perimeter? Are there locks that don’t work? Are the fences safe? Are entrances, ex its and specialty areas/ rooms clearly marked and labeled?

Then, perform another assessment before everyone arrives for the day or after they leave at night. Are things left undone from the day before? Who is around the neighborhood? Who is the fi rst to work Where do they park Is there ade uate lighting in all areas inside and outside? I s there order and symmetry at shift change? I s that an opportunity for someone to walk in without being noticed? L ook at the security technology – is it in proper working order and tested regularly?

F inally, do a review of the written policies and procedures. Now that assessments have been done in the heart of the business day and when the facility is empty, how does that align with the policy and procedure document? Where are the gaps?

Employee interviews. O nce the physical facility assessment is complete, perform structured employee interviews. Ask each employee to answer a series of 1 0 questions, most of which have “yes or no” answers ( see sidebar on page 1 5 ) . O nce these questions have been answered, data- driven information will be available to identify gaps between the policy and what actually is

15www.amba.org

FOCUS

Understanding of the code of conduct in a facility makes it easier

to know when employees are acting in ways outside of those

guardrails. That can be an early warning sign of a situation that

could be dangerous.

done. This will allow leadership and employee teams to develop gap closure plans and increase the safety of the employees.

And, when those interviews take place, very honest conversations will happen about concerns within the workplace that are not just related to safety. When coupled with the survey answers, some real substance and recommendations can be considered for the benefi t of not only the facility, but the larger organization.

Workplace violence is no longer an isolated incident that only happens to other companies. I t could happen anywhere, but steps can be taken to reduce the likelihood of an incident and increase the safety of employees if the worst should happen. n

Van Harp is a partner in Harp & Associates, LLC, a workplace violence prevention consultancy. The company’s focus is awareness, recognition, prevention and response to violent workplace incidents in both public and private settings. The approach is from a 360-degree perspective to prevent concerning incidents from escalating along the continuum of violence up to and including extreme violence/active shooter. For more information, call 607.329.2160 or email [email protected].

10 Questions to Ask Employees During an Internal Assessment

123456

89

7

1 0

Have you been trained to respond to a violent incident?

Do you have the authority to respond to a threat of violence?

Do you think your company’s current safety policies/procedures are suffi cient?

Do you think the policies/procedures are being implemented and followed?

Do you feel your colleagues and coworkers are “on board”?

Do you feel the business is moving in the right direction for providing a safe and secure workplace environment?

What changes or suggestions do you have to improve safety/security?

Do you know how to get support/help in case of a violent incident?

Is there a current situation that causes you concern at this time?

Has there been a situation in the past that caused you concern?© Harp & Associates


Makino Unveils New IIoT Machine Interface M akino, M ason, O hio, unveiled its new ProNetConneX , which provides the data and connectivity necessary for intelligent factories to rapidly respond to uctuating market demands. ProNetConneX offers manufacturers a built- in, instant on- ramp to the I I oT, with secure connectivity to today’s leading software management systems via the M TConnect standard. With support for both secure local network and private cloud- based data resources, ProNetConneX gives users the ability to connect, collect and analyze machine data from anywhere in the world.

roNet onne facilitates the free ow of machine data for intelligent factories through a variety of capabilities. Unlike many other I I oT machine interfaces, ProNetConneX is fully integrated into M akino’s latest machine controls, requiring no supplemental hardware. Additional machine sensors can be installed within machines and added to ProNetConneX to ex pand data collection capabilities based on manufacturers’ unique needs. F or more information, visit www.makino.com.

HASCO Introduces Screw Memory UnitH AS CO , L ü denscheid, G ermany, released S crew M emory A5 8 0 5 / … , its new information memory unit that makes it possible to archive all the mold specific and/or article specific data and fully document the production process. The S crew M emory A5 8 0 5 / ... can easily be installed and removed and can be used up to 8 0 ° C. I t is screwed directly into the mold with an 2 outside thread so that it is ush mounted and protected. The S crew M emory' s orange threaded housing not only provides protection against soiling, but also makes the information memory easy to identify on the injection molding machine. With a capacity of 1 6 G B and a US B 2 .0 interface, the H AS CO information memory unit ensures that moldmakers can reliably store and edit designs, injection parameters and milling programs. I t also provides direct and rapid access to all the mold data. F or more information, visit www.hasco.com.

Orycon Unveils Valve Gate ControllerO rycon, O cean, New J ersey, unveiled the T- 7 0 0 sequential valve gate controller. The new T- 7 0 0 controller comes in a mobile housing, has a touchscreen with high-resolution graphics and is available in standard models of 1 2 and 2 4 control zones. The ability to operate based on both time and screw position is standard with all units. Accuracy is 0 .0 1 second when operating based on time and 0 .0 1 percent of screw travel when operating in position mode. The T- 7 0 0 can control pneumatic and hydraulic valve gates and can be supplied with optional

PRODUCT ///

detached hydraulic or pneumatic valve packs and a hydraulic pressure tank with or without accumulator. The touchscreen interface makes all the gate open- and- close operations visible at a glance. The O rycon T- 7 0 0 has the ability to save, copy and edit up to 5 0 0 programs. F or more information, visit www.orycon.com.

Walter Launches Extension of its Turning Geometry ProgramWalter US A, L L C, Waukesha, Wisconsin, launched a major ex tension of its turning geometry program with new products that bring Walter precision and reliability to a range of new applications. O ne ex tension is the F M 4 positive inserts.

ngineered for finishing stainless and high temperature alloys ( I S O M , S ) , these inserts have ex cellent chip breaking capabilities at low feed rates and low cutting depths. Walter’s R M 4 positive inserts are targeted at stainless and high temperature alloys ( I S O M , S ) for roughing and medium machining operations. The new F P6 positive inserts excel at finishing steels IS and provide superior chip control. Walter’s F K 6 positive inserts, available in grades WK K 1 0 S and WK K 2 0 S , are engineered specially for finish to medium machining. The Walter turning program ex tension also includes positive wiper inserts for PF and PM geometries. F or more information, visit www.walter- tools.com/ us.

Frigel Extends Advanced Control Technology to Product LinesF rigel, S candicci, I taly, ex tended its 3 PR technology platform to its M icrogel and H eavygel product lines, making it the only company that offers common control capabilities on three types of cooling systems, as well aux iliary components. I n addition to providing more information than previously available in a portable chiller, 3 PR technology delivers the first availability of Wi Fi and Ethernet connectivity. M icrogel users are able to access temperatures, pressures, ow rates and energy use. Among the key features of the control technology is an intuitive 7 " full- color touch screen. Users can easily view, control and optimize all aspects of their equipment based on real- time data across their network infrastructure, including building management systems. Unique to the F rigel control technology are on- board maintenance recommendations, as well as troubleshooting guides and event/processing data history logs to ensure max imum equipment uptime. F or more information, visit www.frigel.com.

17www.amba.org

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BORIDE Introduces Nontoxic Rust/Corrosion InhibitorBO R I D E Engineered Abrasives, Traverse City, M ichigan, introduced M etalR ustG uard, a rust and corrosion inhibitor, as the latest addition to its product offering. M etalR ustG uard comes in a protective wrap and was developed to prevent rust and corrosion on any type of metal. The nontox ic, environmentally friendly and F D A- approved wrap is self- adhesive, easy to apply, reusable and requires minimal cleanup after removal. I t does not require any other V olatile Corrosion I nhibitor ( V CI ) to be used, and installation is simple – cut and apply the material to any metal product or piece. M etalR ustG uard provides short- and long- term protection when shipping and/ or storing metal tools and components and is available in a roll form in sizes ranging from 4. to that can easily be cut to the shape of a tool to provide coverage for nearly any application. I n addition, M etalR ustG uard is lab tested and 1 0 0 percent made in the US A. F or more information, visit www.borideabrasives.com.

Meusburger Offers Slide UnitsM eusburger G eorg G mbH & Co K G , Wolfurt, Austria, introduced its new compact slide units designed specifi cally for small installation spaces. The products feature wear resistance and optimal sliding properties to ensure process reliability in the injection molding process. The D L C- coated slides are made from 5 4 H R C- grade 1 .2 3 4 3 steel, suitable for mirror polishing. There are two versions of the compact slide units, each with three variations. The E 3 3 6 0 version can be installed quickly from the split line face or from the back side. F or use in very tight spaces, M eusburger offers the E 3 3 3 0 Compact S lide Unit. An installation rotated at 1 8 0 ° also is possible, creating additional space for the hot runner nozzles or cooling holes. The new compact slide units are available from stock. F or more information, visit www.meusburger.com. n


Modeling Henry Ford: A-1 Tool’s

Assembly Line Production Processby Brittany Willes, contributing writer, The American Mold Builder

H enry Ford fi rst introduced the odel T in 1908. While it was a fairly inexpe nsive automobile for the time,

F ord was determined to further reduce the price in order to make the M odel T available to the great multitude. As a result, the fi rst automated assembly line was developed in 1913. F ord’s moving assembly line reduced the time it took to produce an entire car from 12 hours to less than three. By training his workers to complete just one step in an 84- step process in a standardized fashion, F ord dramatically increased production and effi ciency in his factories. Today, manufacturers still are taking cues from F ord, streamlining their production processes to create standardized parts and increase effi ciency.

“Before H enry F ord, a car was built by an individual or a group of individuals,” said G eoff L uther, CEO and owner of A- 1 Tool Corporation, M elrose Park, I llinois. “This is very similar to the way molds are built today. F ord recognized that by making standardized parts and using assembly lines and dividing labor into specialized tasks, he could mass-produce cars quicker, cheaper and with better quality.”

ike Ford, A Tool recognizes the benefi ts of standardizing parts and breaking down labor. O ver the last several years, the company has made changes to its production process to allow for greater production effi ciency and increased mold quality.

“I t started about 10 years ago,” expl ained President M ike Pohjola. “O ne of our machines lost all of its parameters, and we were unable to locate the backup copy. D ue to its diminished ability, we decided to use that machine for squaring blocks only.”

F or L uther and Pohjola, this decision sparked

OPERATIONS

A-1 Tool developed specialized work stations so employees would become task experts. Photos courtesy Creative Technology Corp.

19www.amba.org

C

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UltraPolishing AMBA Ad 2009.pdf 10/6/09 3:02:05 PM

page 20

Systems and processes are redesigned into simpler tasks that workers perform repetitively.

an “ah- ha” moment that would lead to a more specialized production process.

“Breaking down the labor process of that one machine led to marked improvement in effi ciency, as well as reduction in the amount of training required to bring new employees up to speed,” expl ained Pohjola. “We decided to purchase more specialized, high- performance tooling and again, we saw improvement. The process evolved from there.”

O ne of the most important parts of the process involves training expe rts in different areas of production. A- 1 achieved this by developing specialized, individual work stations made up of smaller, simpler tasks. With each task broken down into smaller, simpler components, workers at each station become expe rts at their individual jobs, leading to improved speed and quality. F urthermore, the work stations have been developed as “lean” stations, containing only the equipment needed for each individual task, thereby creating further task effi ciency.

“We created a custom scheduling solution which allows us to prioritize tasks,” L uther revealed. “We take every component from every mold, and we schedule every process for each one. We are able to prioritize when it needs to be completed, and it gets pushed and pulled through all of the individual stations.” H aving these stations not only allows workers to get better at their jobs, but also holds everyone accountable. “The expe ctation is that everyone does their job and does it correctly,” he said.

Breaking production down to individual stations also has meant a breakdown of the training process. Now, systems and processes are redesigned into simpler tasks that workers perform repetitively, rather than every few days. This has the added benefi t of not only developing experts, but also allowing supervisors to discern which workers are more ualifi ed and more likely to perform well.

“I t is important not only to qualify individuals, but to disqualify them as well,” remarked L uther. “The new training allows us to vet each individual on a lot quicker basis based on the employee’s work ethic and other factors.”

The price of training also is affected. “R ather than training an individual on all of the tasks needed to build an entire mold, the employee is trained on a subset of tasks,” expl ained Pohjola. Training is not the only cost benefi t to this style of mold manufacturing. Workers become profi cient not only at the task at hand but at the use of temperamental, high- priced, high-performance tooling. As a result, uality and effi ciency goes up while the overall cost of tooling and rework goes down.

OPERATIONS


page 19

OPERATIONS

While the emphasis for workers is to become expe rts at their particular tasks, cross- training still is important, according to Pohjola. “When the shop is full of work, everything works really well,” he stated. “H owever, when the workload is light, it becomes a challenge to keep each work station busy, and you can end up with holes. That is where cross- training becomes crucial, enabling you to move people along with the work. There will still be a reduction in effi ciency but there will be fewer workers standing around doing nothing.”

As mentioned earlier, the cost of tooling also can be affected. L uther expl ained that when the company decided to move to more assembly- line style manufacturing it decided to invest in better tooling, despite the fact it was more expensive and diffi cult to run.

“When you introduce this expe nsive, fussy tooling to the whole shop, you end up going through it like crazy,” remarked Pohjola, citing concerns with learning how to properly use the equipment. “But, once you only have a few workers using it, they become more profi cient. It creates better utilization.

Naturally, implementing this style of mold building was not without its challenges. F or instance, according to Pohjola, wondering how far to take it? F or A- 1 Tool, the original plant layout wasn’t conducive to doing everything that was desired. With very large, expe nsive pieces of machinery, having a long and skinny shop building would have been ideal for putting

everything in line. We had to fi nd a way to work around our size and space limitations,” stated Pohjola. “That was probably the biggest challenge.”

Another big challenge was with the workers themselves. People can prove naturally resistant and, “any time you have change, there will be issue,” said Pohjola. “S ome people buy in immediately and are ready to work with a new system. O thers fi ght right from the start. There is a lot of education and training that goes with something like this. O ften, it is a complete change in culture and mindset,” he asserted.

Work stations contain only the equipment needed for each individual task.

21www.amba.org

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OPERATIONS

Despite early challenges, A Tool has reaped the benefi ts of assembly- line manufacturing. “I t goes right back to engineering,” said Pohjola. “I t goes from a highly custom built mold to a more manufactured mold. We are machining things to size and to fi t.

With everything broken down into smaller, simpler tasks, A- 1 Tool is able to apply manufacturing principles used in Toyota, lean and 5S manufacturing, all of which play hand- in- hand with the principles of F ord- style manufacturing. “This type of manufacturing can be benefi cial in a lot of ways. For any place with multiple, repetitive steps and lots of components, the same principles can be of use,” said Pohjola.

That’s not to say it would be appropriate everywhere. F or instance, a small company with a smaller economic position may not be able to reasonably afford such a system. At a certain point, i t would not pay off.

“I t’s a direction we have taken, yet not all companies’ management or culture will have the same philosophies,”

uther affi rmed.

While A- 1 Tool’s H enry F ord- style production process was set in motion a decade ago, according to L uther and Pohjola,

the last three years have taken it to a much higher level as the company continues to develop and adapt its process.

“We’ve gone down a road and expl ored a path,” said L uther. “O ne door opened and then another and it has been an evolution where, in the end, we had all of these pieces and it all started fi tting together.

According to L uther, the company still is in the middle of developing its process. There may have been some resistance or skepticism at fi rst, but A Tool has committed to its current path.

“We have a vision,” said L uther. “The pieces are in place, and we will continue to change and improve as needed. This is the direction we’ve chosen and we’re making it happen.” n


page 21

OPERATIONS

Lean Manufacturing:

Who, What and Why?

by Dianna Brodine, managing editor, The American Mold Builder

H enry Ford may have been the fi rst US manufacturer to implement lean production when he simplifi ed processes on the assembly line by creating a moving assembly line

in 1 9 1 3 . D riven by a desire to make the automobile affordable for everyone, the workers laboring on the F ord M odel T were divided by tasks into separate locations in an effort to reduce unnecessary movement. R ather than hauling parts and tools to an area where the vehicle would be built, F ord implemented a system of pulleys to move the car from one work station to another.

F ord realized stunning time savings with this production change. ost savings followed as labor was utilized more effi ciently, and

F ord soon was selling more cars than ever before.

The principles of the assembly line – elimination of waste, specialization of tasks and increased production – evolved into the modern day “lean manufacturing.” F ord’s production model worked well when the ex act same product was produced each time, but when variety was needed the system fell into chaos.

Who?Toyota may be the most widely known implementer of lean manufacturing, having modifi ed the reduction of waste mantra into the Toyota Production S ystem ( TPS ) that has been adapted across the world. H owever, manufacturing facilities across a wide range of industries and serving a range of end markets have added lean manufacturing concepts. F rom the big names – Caterpillar, J ohn D eere and Nike – to the small, lean manufacturing can positively impact any company involved in a physical product creation process.

What?ean manufacturing, at its most simple level, is about fi nding

waste in a production environment and removing it. The J apanese word “kaizen” also is commonly heard in discussions about lean – meaning “change for better” or continuous improvement. Taken together, the lean manufacturing process encourages those in a production environment to fi nd waste and work to improve or eliminate it.

Waste can take a variety of forms, including wasted steps in a production process, wasted labor hours or wasted movement of materials. Poor quality and ex cess inventory also are forms of waste. I n view of managing that waste, TPS has been distilled to fi ve steps, namely the following

1 . S pecify the value. F ind what creates value in the product/process from the customer’s viewpoint.

2 . M ap the process. L ist each step in the process of creation.3 . Flow the product. Simplify the steps so the product ows

through production.4 . Pull the product. Produce only what is required when the

customer needs it – also known as justin- time production.5 . Work toward perfection. Continually evaluate the process

to fi nd other examples of waste that can be removed.

Why?R emoving waste from the manufacturing process saves time, money and resources. ne of the key benefi ts is an improvement in quality. When processes are standardized and unnecessary steps eliminated from a production environment, the product created typically has fewer errors – reducing defects and rework. I mprovements also can be found in employee satisfaction as those repetitive tasks that cause job frustration are eliminated.

L ess space often is required as unnecessary steps – and sometimes e uipment – are eliminated on the production oor, and ust intime production reduces the amount of ex cess inventory on site. This can allow for ex pansion of services or future growth – or facility reduction, if that step makes more fi nancial sense. ost importantly, the implementation of lean manufacturing and its related continuous improvement efforts often lead to increased profi t levels and higher customer satisfaction, which, in turn, can lead to additional business.

Adding lean manufacturing to any production environment isn’t an instant cure- all, and the process itself can be messy and frustrating. I t requires a culture shift and a team effort that starts at the top, but the rewards can be great. n

Henry Ford circa 1919.

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PREVIEW

Mold Building

Suppliers and

Partners to Exhibit

at PLASTEC West

J oin more than 20,000 industry professionals at PL AS TEC West at the Anaheim Convention Center in Anaheim, California, F eb. 7 through 9, 2017.

Network with engineers and exe cutives, and engage in conversation with leading suppliers across the advanced design and manufacturing spectrum offering plastics solutions including 3D printing, polymers, injection molding, rotational molding, pultrusion, thermoforming, lightweighting and ext rusion. Conference topics will include design innovation, smart manufacturing and much more.

These exhi bitors may be of interest to The American Mold Builder audience:AMBABooth #375 www.amba.orgAM BA is the premier trade association for the US mold manufacturing industry, serving its members with fi nancial and operational metrics, cost- saving programs, educational resources and much more. M embership information, AM BA S ourcebook, AM BA Annual Conference information and the latest issue of The American Mold Builder will be available.

Crystallume Booth #3414 www.crystallume.comCrystallume will debut two new tool lines, D emon and S tealth. Demon cuts molds in the most diffi cult materials for up to 4 percent longer, and eliminates the need to switch tools midway through applications. Check out the S tealth line for the sharpest diamond- coated end mill around.

Custom Mold & Design (CMD)Booth #2870 www.custommold.netCM D manufactures and designs fully interchangeable, high-precision injection molds, multi- cavity molds, two- shot molds, metal injection molds, silicone molds, micro- molds and ceramic molds. The company' s CM D Expr ess provides ultra-precision machined components and assemblies re uiring fi ne detail. D is ToolingDoc certifi ed, IS and AS certifi ed and ITAR registered.

DMS, Inc.Booth #3921 www.dmscomponents.comD S features ool ow Water anifolds, R D ault, M etalR ustG uard, S lide L ubricants, L ixi e H ammers, Worm

ear, I S full color pla ues, I I mold xa ow tunnel gate inserts and much more.

25www.amba.org

PREVIEW

EDRO Engineering, Inc.Booth #3446 www.edro.comED R O provides solutions to the plastics and rubber tooling industries, specializing in the complete manufacture of custom mold bases, and the distribution of premium tool steel and aluminum products in the saw- cut or machined condition. ED R O ’s unique tooling materials include proprietary steels such as R oyAlloy™ , ED R O 400™ , and P1- F M ™ and Q C- 10 ® aluminum from Alcoa.

EWIKONBooth #3847 www.ewikon.com/ en/EWI K O N provides innovative, reliable and practical hotrunner technology at the highest technical level. EWI K O N’s system solutions optimize the injection molding process, enhance the quality of the manufactured parts, reduce costs and have proven their capability in thousands of successfully realized projects for all sectors of the plastics processing industry.

GF Machining SolutionsBooth #3501 www.gfms.comG F M achining S olutions serves moldmakers and manufacturers of precision components. G F M achining S olutions is the North American supplier of AgieCharmilles ED M machines;

ikron ill and axis high speed, high effi ciency and high- performance milling machines; M icrolution micro machining solutions; L iechti airfoil machining solutions; 3D laser text uring solutions; S ystem 3R automation solutions; and spare and consumable parts.

INCOE CorporationBooth #4029 www.incoe.comI NCO E engineers and manufactures hotrunner systems driven by performance for the processing of all injection moldable plastic materials. I NCO E is a global company that is 100% US A family- owned and operated, with a commitment to supporting the plastics industry, innovating new products and providing best- in- class service.

LaserStar Technologies CorporationBooth #2852 www.laserstar.netL aserS tar has supplied laser sources and systems to the industrial marketplace for 60 years. The US manufacturer designs and manufactures a complete range of Nd:Y AG and F iber laser systems for micro- welding, marking, engraving and cutting applications. S uperior service, education and technical support are available at any one of its national L aserS tar Centers in R hode I sland, F lorida and California.

Companies also on site and of interest to The American Mold Builder readers include the following:

3D S ystems Booth #3617Accede M old Booth #2999F airway I njection M olding S ystems Booth #3826G esswein Booth #3822G PI Prototype & M fg. S ervices I nc. Booth #3427H irschmann Engineering US A, I nc. Booth #816M atrix Tooling, I nc. Booth #2092M G S M fg. G roup Booth #2370M ilacron / M old- M asters / D M E Booth #3865M old- Tech I nc. Booth #4039M .R . M old & Engineering Booth #1346PCS Company Booth #3820Prestige M old I nc. Booth #1547Progressive Components Booth #391 1Pyramid M old & Tool Booth #3825S ynventive M olding S olutions Booth #3949 n

As one of the early pioneers developing CAD/CAM software for manufacturing, Cimatron will continue its 33 year legacy going forward as part of 3D Systems.

Look forward to new opportunities for MANUFACTURING THE FUTURE!

Cimatron is nowpart of 3D Systems

THINGS ARE GETTING BIGGER AND BETTER

For more information go to:www.3dsystems.com | www.cimatrontech.com


STRATEGIES

Sales and Quoting: Tool Shops

Express Positive Sentiment for 2016by Laurie Harbour, president and CEO, Harbour Results, Inc.

The O riginal Equipment S uppliers Association ( O ES A) and H arbour R esults, I nc. ( H R I ) recently completed their Automotive Tooling Barometer, containing data

from Q 2 2016. The survey reached a total of 65 respondents from North America: 69 percent from the US and 31 percent from Canada. S eventy- six percent of total respondents were mold builders with diversifi ed revenue ranges, including shops with less than $5 m illion in revenue to more than $ 40 m illion.

After expe riencing a very slow start to the year, the survey revealed that respondents from mold shops felt generally positive about the second half of the year, matching many industry forecasts that projected the third and fourth quarters of 2016 w ould be very busy times.

Capacity utilization stabilizesThe industry expe rienced a decline in tooling utilization in the beginning of the year, with more than $2 billion in tooling capacity not leveraged; however, utilization rates stabilized in spring 2016. M old shops faced their average lowest rates in the fi rst uarter of 2 7 percent . Although the industry has not reach its highest capacity utilization rates since the downturn, the industry is currently stable, with mold shops predicted to maintain a 76 percent capacity rate or higher at the end of 201 7.

Additionally, the industry has seen a signifi cant decrease percent) in overall work “on hold” from J anuary to J une, and that trend seems to have continued throughout the remainder of 2016. H arbour R esults estimates the industry “on hold” impact in the second half of the year to be around $1.68 billion, a decrease from more than $2 billion in J anuary. Not only has overall work “on hold” decreased, but the number of those shops that previously had more than 10 percent of work “on hold” also has decreased by 9 pe rcent.

The Barometer also looked at toolmakers’ sentiment – what is each toolmaker’s business outlook for the next three months. There appears to be a cyclical nature to the tooling sentiment index, with some level of correlation to the amount of work

“on hold” reported in this survey. O verall sentiment has increased to 74, up 8 points since J anuary’s study. What’s more interesting is that year over year, since August 2014, tooling sentiment has increased from 56, a 32 percent change.

Quote volume and sales increase, yet revenue remains fl atThis Barometer study also focused in closely on mold marketing and sales practices, which uncovered a number of interesting facts. S ince 2015, surveyed tool shops are quoting more and are expe cted to reach $9.3 billion in overall quote

activity this year, compared to the $8.9 billion ( 2015) and $8 .6 billion ( 2014) . M old shops’ quotes are forecasted to remain relatively consistent throughout the years.

Although tool shops are quoting more, their revenue is projected to remain at overall, compared to 2 . While the stagnant revenue can be a result from the slow start to the year, the survey also revealed a decrease in revenue per tool, specifi cally for die shops. S ince 2014, mold shops expe rienced a 4 percent increase

27www.amba.org

STRATEGIES

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in revenue per tool, from $194 to $209 per tool. When looking at North American revenue per tool, Canadian shops are having greater success, as they are expe riencing higher average tool prices than their US peers. A decrease in tool price counteracts the increase in uoting and causes revenue to remain at.

I t is hard to speculate too far, but H R I expe cts to see an increase in average tool shop revenue for 2017.

Limited visibility of future salesI n the study, tool shops shared the amount of booked work, in terms of purchase orders and/ or letters of intent for customers.

M ost shops shared they have limited visibility of future sales, typically only three to six months out, but shops over $20 million in revenue have booked 19 percent more work than shops under $20 m illion in revenue.

Larger shops show more effi ciencyNot only do larger shops have greater visibility of future sales, but they also have a signifi cant advantage of having fewer customers, in terms of earning more revenue. S hops with revenue between $20 and $40 million tend to have the largest

Although tool shops are quoting more, their revenue is

projected to remain fl at overall, compared to 2015. While the

stagnant revenue can be a result from the slow start to the

year, the survey also revealed a decrease in revenue per tool,

specifi cally for die shops.


STRATEGIES

page 27

number of customers ( 40) and earn, on average, $1.5 million per customer. H owever, shops with more than $4 0 million in revenue have, on average, 30 customers ( which is the same number as shops $10 to $20 million) , but earn $2.4 million per customer – a 56 percent increase in revenue per customer compared to other shops.

Not only do larger shops earn more revenue per customer, but also the same is true per salesperson. S hops over $20 million in sales earn 22 percent more revenue per salesperson and also quote 32 pe rcent more per estimator.

An incredibly sluggish start to the year put a majority of tool shops into very tough situations. H owever, work “on hold” has decreased considerably, and the number of tooling packages released and tools per package are steadily increasing. While sales and quoting levels have shown an overall increase, they vary greatly by revenue range. Specifi cally, larger shops are more effi cient, have more future sales booked and earn more revenue per salesperson.

Predictions for 2017 show limited manufacturing growth. F actors impacting this include the strong US dollar, which limits the country’s ability to expor t manufactured goods in some industries. Also, the decline in the oil and gas industry has impacted the entire supply chain, including the mold shops that supply to the machining companies. F inally, weak capital spending – specifi cally in production capabilities – will limit the growth among manufacturers.

H owever, the news is not all bad. Consumer spending will continue to be strong, and certain industries, such as automotive, are continuing to develop and launch new vehicles. Based on L M C Automotive forecasts, H arbour R esults expe cts the industry in 2017 to source tooling to support 70 new vehicle launches.

Effective sales planning D eveloping a sales process is one avenue to help companies balance out the peaks and valleys that are part of this cyclical industry. R egardless of shop size or area of expe rtise, a sound sales process will help ensure business is coming through the door. The fi rst step in developing this process is to look at data – hit rate, pro ect margin, profi tability by customer – and understand what’s working and what is not. F rom there, work on identifying target markets, a pricing and quoting strategy, and specifi c customer sales plans. Another critical aspect of building an effective sales process is feedback. This will help determine if the plan is working or needs adjustments.

As the industry recovers from a slow start and expe riences a busy second half of 2 016, mold shops must keep sight of what’s to come, as predications show limited manufacturing growth in 2017. Now, more than ever, mold manufacturers must work “on the business.”

L eadership must review both internal and ext ernal data and create a strategic plan that aligns the business and operational

29www.amba.org

STRATEGIES

activities to optimize shop performance. Companies that ensure their production oors have the exibility to scale up

and shrink with the market will be most successful. n

Laurie Harbour is president and CEO of Harbour Results, Inc. Combining operational and fi nancial advisory expertise with industry analysis and thought leadership, Harbour Results delivers results that impact the bottom line. The company specializes in manufacturing, production operations and asset-intensive industries, as well as a number of manufacturing processes, including stamping, tooling, precision machining and plastics. For more information, visit www.harbourresults.com.


SST and JUNKER Group Enter IntoSales AgreementPart of M akino, S ingle S ource Tech ( S S T) , Auburn H ills, M ichigan, announced an agreement with the J UNK ER G roup to distribute its products in key North American markets, including S S T S outh, S outheast and M idwest. The J UNK ER G roup is a global leader in the market for high- speed CBN and non-CBN grinding machines. With J UNK ER , S S T now offers solutions for any grinding task: double- disc grinding machines, hard turning/ grinding machines, profile grinding machines,

ute grinding machines, cylindrical grinding machines, cutting tool grinding machines, tool grinding machines, centerless grinding machines and noncircular grinding machines. F or more information, visit www.singlesourcetech.com or www.junker- group.com.

GF Machining Names DistributorsG F M achining S olutions, L incolnshire, I llinois, named three new distributors to serve customers in the Northwest and West regions. Ellison Technologies is serving G F M achining S olutions customers in California, O regon, Washington and Nevada. D & R M achinery is covering Arizona, and the current territory for H artwig, I nc., has been ex panded to serve those customers in Colorado, New M ex ico, Wyoming, M ontana and I daho. G F M achining S olutions selected the new distributors based on their abilities to provide ex tensive service and support to customers while offering more complete market coverage in the states they serve. ustomers will benefit from easier access to demonstration centers and larger sales and support teams that can work in conjunction with G F M achining S olutions to provide timely front- line service and application support on equipment. F or more information, visit www.gfms.com/ us.

Stratasys and Siemens Partner to Incorporate Additive Manufacturing into Volume ProductionS tratasys L td. and S iemens announced a formal partnership to integrate S iemens’ D igital F actory solutions with S tratasys’ additive manufacturing solutions. The partnership is intended to lay the foundation for the two companies to fulfill their shared vision of incorporating additive manufacturing into the traditional manufacturing work ow, helping it to become a universally recognized production practice which can benefit multiple industries, including aerospace, automotive, transportation, energy and industrial tooling. This announcement also builds on S iemens’ recently announced end- to- end solution integrating digital design, simulation and data management with conventional and additive manufacturing. S tratasys and S iemens

have been collaborating on multiple projects, including the direct link from S iemens’ NX ™ software for CAD / CAM / CAE to S tratasys’ G rabCAD Print platform – enabling a seamless design to D print work ow – and the recently previewed S tratasys R obotic Composite 3 D D emonstrator that incorporates S iemens’ product lifecycle management ( PL M ) software and its motion control and CNC automation technologies, to produce strong, lightweight performance parts. F or more information, visit www.stratasys.com and www.siemens.com/ plm.

Harbour Results Hires Consultantarbour Results, Inc. RI , Southfield, ichigan, has hired

J oseph Chebby as an associate consultant with ex tensive ex perience in data analytics, implementing L ean S ix S igma improvement tools and working with industrial statistics. H e previously served as a process improvement manager and statistics analyst at R uffalo Noel L evitz. H e also has worked as a research analyst at Nielsen, specifically in the medical market. I n his new role, Chebby will work with manufacturing companies to develop market insights, conduct benchmarking and drive improvement in client business and manufacturing operations. Additionally, Chebby will support the H R I team in organizing, planning and directing activities for H arbour I Q TM , a business intelligence tool. F or more information, visit www.harbourresults.com.

DENSO Robotics Releases CatalogD ENS O R obotics, L ong Beach, California, announced a new company catalog that features its range of compact four- ax is S ARA and five and six axis articulated robots for payloads up to 2 0 kg. R eaches are from 3 5 0 to 1 , 3 0 0 mm, and repeatability is to within + / - 0 .0 1 5 mm. The high- speed robots are widely used in traditional manufacturing sectors, as well as in advanced-technology applications in the medical, pharmaceutical and life sciences industries. Available configurations include standard ( I P4 0 ) , dust- and mistproof ( I P6 5 ) , dust- and splashproof ( I P6 7 ) , cleanroom ( I S O 3 , 4 and 5 ) and aseptic ( resistant to hydrogen perox ide and UV light) . ANS I and CE compliance enables global deployment. UL -listed models are available for both the US and Canada. The 5 2 - page publication, which is available as an interactive online version or download, offers detailed descriptions, specifications and technical drawings of each of D ENS O ’s four- ax is S CAR A and five and six axis articulated robots, including its latest SS eries pharmaceutical cleanroom model. F or more information, visit densorobotics.com.

CoreTech Announces Contest WinnersCoreTech S ystem ( M oldex 3 D ) , H sinchu, Taiwan, announced

INDUSTRY ///

31www.amba.org

page 32

INDUSTRY ///

the winners of the 4 th G lobal I nnovation Talent Award with the theme “Tell Us Y our # M oldex 3 D S tory.” This global competition recognizes customers that best demonstrate M oldex 3 D ’s solutions, values and offerings to the overall manufacturing process and outcome. Andy Chen, S teven Chang, I an Weng, S hark H su and Benson Tsai from F ox link I mage Technology Co., L td., Taipei, Taiwan, won. They were awarded the G lobal G rand Prize for sharing a story about applying M oldex 3 D simulation solutions in the development process of four scanner components in which M oldex 3 D helped predict potential short shots in a scanner cover. It guided Foxlink to identify fi ber orientation as the leading cause of the warpage in an ex isting mold and to implement an appropriate countermeasure. The story has demonstrated the power of virtual simulation to provide not only analysis data but actionable insights to ensure the best production outcomes. F or more information, visit www.moldex 3 d.com/ en.

Choice Tool & Mold Adds General ManagerChoice Tool & M old, S arasota, F lorida, announced the latest addition to team CH O I CE – G eneral M anager V incent Cataldo. Cataldo has over 4 0 years in the tooling industry and brings a wealth of knowledge to the group at CTM . As general manager, Cataldo will oversee and lend his ex pertise to a number of operations. F or more information, visit www.choicetool.com.

Hirschmann Names New Regional ManagerH irschmann Engineering U.S .A., I nc., S chaumburg, I llinois, announced the hiring of Nicholas Casbar J r., a resident of Warrington Pennsylvania, as its northeast regional manager. I n this position, Casbar is responsible for selling and servicing the entire H irschmann product line in the Northeast US , from eastern O hio, north to M aine and south to M aryland. M ost recently, he worked for O ptimum M achine S olutions in H atboro, Pennsylvania. F or more information, visit www.hirschmanngmbh.de.

Gilman Adds Business Development SpecialistsG ilman Precision, G rafton, Wisconsin, added Craig G rady and Chris S chmid to its sales force team as business development specialists. G rady will manage western US territories and work with Weimer Bearing on regions within Wisconsin to accomplish business growth goals. S chmid will play


Josef F. KlinglerL ongtime AM BA member J osef F . K lingler passed away S eptember 24, 2016, at the age of 90. K lingler

was a founding charter member of the AM BA and started J anler Coproration in 1957. J anler Corporation remains a family-owned business, led by K lingler' s daughter, Carol Ebel. K lingler was the beloved husband for 67 years to the late Patricia K lingler, nee M urphy; devoted father of Patricia ( J . Christopher) S vare,

Charles E. ( D ayle) K lingler, K athleen ( the late William) M cK eown, L inda ( K enneth) M cAnelly, Alan J . ( Carol) K lingler, Carol ( Bruce) Ebel, Ellen ( J ames) L oiselle, D onna K lingler, J osef F . J r. ( Aiko) K lingler and J ohn M . K lingler; loving grandfather of 23; and great grandfather of 12.

bringing more than 2 0 years of industry ex perience to the role. Prior to joining S uperior D ie S et, he worked in the tool and die industry in technical and management positions. M ost recently, Y eomans was with a tool and die manufacturer in M ichigan, where he was responsible for territory and regional sales throughout the M idwest and Western United S tates. I n his new role, Y eomans will oversee S uperior D ie S et’s direct sales team, manufacturer’s reps and key distributors, helping to develop new business as well as strengthening current client relationships. F or more information, call 8 0 0 .5 5 8 .6 0 4 0 or visit www.superiordieset.com.

Gesswein Promotes New PresidentPaul H . G esswein & Co., I nc., Bridgeport, Connecticut, promoted G reg G esswein to president of the 1 0 2 - year- old company. G reg G esswein is the fourth generation of the G esswein family to manage the business. H e replaces his father, D wight W. G esswein, who has served as the president since 1 9 9 3 . D wight G esswein will retain the position of vice- chairman and along with his brother R oger H . G esswein, J r., the company’s current chairman and CEO , will continue to support the company in a broader advisory capacity. F or more information, visit www.gesswein.com.

page 31

INDUSTRY ///

a critical role in prospecting, generating leads and fostering positive customer relations in M idwest regions of the US and with international customers. F or more information, call 8 0 0 .4 4 5 .6 2 6 7 or visit www.gilmanprecision.com.

INCOE Named on Top Workplaces ListThe D etroit F ree Press has named I NCO E Corporation among the S tate of M ichigan' s Top 1 0 0 Workplaces for 2 0 1 6 . The Troy, M ichigan- based hot runner systems manufacturer placed 2 4 th on the list. “We are very thankful to be chosen by the D etroit F ree Press as a Top 1 0 0 Workplace, ” said Eric S eres, I NCO E’s president and CEO . “We’ve always held the belief that a strong employee/ employer relationship is fundamental to our success, together. O ur commitment to our employees is re ected in their commitment to our customers’ success and satisfaction. When everyone is committed and focused and pulling in the same direction, there is no hurdle or achievement that can’t be reached.” Annually, the newspaper partners with WorkplaceD ynamics L L C, Ex ton, Pennsylvania, to recognize the very best organizations in M ichigan. The Top Workplaces list is based purely on employee opinion surveys conducted by WorkplaceD ynamics. F or more information, visit www.workplacedynamics.com/ top_ workplaces or www.incoe.com.

Superior Die Promotes YeomansS uperior D ie S et, M ilwaukee, Wisconsin, announced the promotion of R odney Y eomans to sales manager. Y eomans joined S uperior D ie S et in 2 0 1 4 as regional sales engineer,

Christopher JonesChristopher J ones, 55, passed away on S eptember 12, 2016. J ones began his 30- year career at R apid D ie &

Engineering, G rand R apids, M ichigan, at age 15, following in his father’s footsteps as a mold maker. H e started in the industry by sweeping oors and cleaning bathrooms, eventually working his way up to become president of the company. J ones also served as president of the American M old Builders Association

( AM BA) . H e is survived by his wife of 19 years, S hawn; parents J im and Eleanor J ones; sister M ichelle ( William) K endall; and many more friends and family. n

In Memory ...

33www.amba.org


ASSOCIATION ///

EHS Summit Focuses on Prevention, Not ReactionI ndustry professionals from the plastics, rubber and mold manufacturing industries gathered at the recent 2 0 1 6 H ealth and S afety ( EH S ) S ummit, on Nov. 2 - 3 , in Columbus, O hio. H osted by The Association for R ubber Products M anufacturers ( AR PM ) , and joined by the A m e r i c a n M old Builders Association ( AM BA) and the M anufacturers Association for Plastics Processors ( M APP) , this one- of- a- kind event brought EH S ex perts together to share best leadership and safety practices with manufacturing ex ecutives from across the US .

I t’s a fact that one workplace injury can damage morale and eliminate profi ts. This precarious balancing act between a worker’s health and the safety performance within the workplace directly determined the agenda for the 2 0 1 6 EH S S ummit, which included classes, discussions and presentations focused on workplace safety.

The event included learning and networking opportunities covering topics such as the illusion of safety; safety and risk management; drugs and alcohol in the workplace; S D S labels; O S H A slips, trips and falls; combustible dust safety; and more. The S ummit provided high- level safety professionals with ideas

they could take back to their facilities and implement to improve workplace safety, as well as an avenue to discuss challenges, fi nd solutions and make connections.

L ocation and date of the 2 0 1 7 EH S S ummit will be announced early nex t year.

Premier Partner Program AM BA has partnered with dozens of industry service providers to support AM BA members through the Premier Partner Program. AM BA’s Premier Partners now offer ex clusive discounts and offerings to AM BA members. These corporate partners offer products and services specifi c to the moldmaking industry and understand the concerns and challenges facing AM BA members. These ex clusive offerings may include, but are not limited to, the following:

• D iscounts on supplies and services

• Ex tended warranties• Ex tended payment terms• M uch more

To learn more and take advantage of these AM BA- ex clusive resources, visit www.amba.org. L og in and click on “Cost R eduction Programs” under the M embership tab.

Commit to the ChallengeJ oin Titan G ilroy, Titans of CNC ( M AV TV ) , at the AM BA 2017 Annual Conference, M ay 10- 12, in Cleveland, O hio, as he shares his amazing story of ext reme perseverance and what it takes to “Commit to the Challenge! ” Titan’s story of hope and redemption had to be lived out in his own life fi rst, with all the pain, struggle and setbacks, before his compelling story could be told to the world. I nspirational and motivational, Titan’s message is one of persistance and unwavering hope. Now as an ambassador to the American manufacturing industry, his vision rings loud and clear: to restore the United S tates as the undisputed champion of manufacturing. Utilizing out- of- the- box recruitment strategies to staff his organization, Titan G ilroy’s mission is “to show the world that US manufacturing can still compete and can move this country forward.” R egistration, programming and hotel information coming soon at www.amba.org/ conference. Titan Gilroy

35www.amba.org

ASSOCIATION ///

AMBA Membership Satisfaction Survey UnderwayH elp AM BA improve your membership ex perience! The 2 0 1 6 M embership S atisfaction S urvey is currently underway – and we need your insights. Each year, AM BA will evaluate the programs, services, events, resources and reports that are offered to ensure members are receiving the resources and programs needed to succeed. The survey closes on D ecember 3 0 , 2 0 1 6 . To take the survey, visit www.amba.org.

New MembersBull Engineered ProductsG ary D ickison, President7 0 4 .5 0 4 .0 3 0 0 www.bullep.comBull Engineered Products is a full service, turnkey injection molding source located in Charlotte, North Carolina. F rom design and rapid prototyping to assembly and delivery, Bull Engineered Products can manage a complete parts program and work behind the scenes to ensure that the tightest of tolerances are met. The company’s commitment to quality is what makes it an industry leader.

Excel Mold and Engineering, Inc.J enna Barnes, H uman R esources7 3 4 .3 3 1 .2 7 4 0 www.ex cel- mold.com Ex cel M old and Engineering, I nc. strives to produce the highest quality “made in the US A” plastic injection molds. While the company’s chief customers are in the automotive supply industry, providing parts to nearly every major automotive manufacturer in the world, virtually any kind of precision plastic injection mold is imaginable. Ex cel M old is highly ex perienced in creating molds specialized in the production of housing for electrical components, covers, connectors and a variety of other plastic products in automotive manufacturing.

MoldesignR yan Peterson, M anager8 6 5 .5 8 8 .3 7 7 4 www.moldesign.com M oldesign designs and builds molds in- house for quick response to changes and process control. F rom mold design to sampling and delivery, a personalized service profile is created to be specific to each pro ect and customer’s needs. oldesign offers a partnered vendor network, real- time project management, design review and more.

New PartnersCastec CorporationTara Turner, Accounting M anager/ H R Administrator3 1 7 .8 7 2 .3 8 8 2 www.castec- inc.com Castec Corporation is a leading manufacturer of high quality, custom- made core pins and inserts for the die casting industry. Conveniently located in I ndianapolis, I ndiana, with two additional locations in J apan, Castec supplies its products to customers around the world. I n- house heat treatment and surface treatments provide customers with competitive pricing and lead times. Castec’s product line includes core pins ( with and without cooling holes) and sleeves, inserts, sprue cores and bushings.

HRS Flow – Division of INglass USA J ohn Blundy, President

.22 . www.hrs ow.com RS ow ot Runner System , a division of INglass USA,

was established to design and fabricate hot runner systems for injection molding. M any years of ex perience in hot runners and lighting molds allow the company to offer a line of hot runners that cover all needs of the automotive industry. n


UPDATE

Skills Certifi cation

Program Intends to

be Industry Standardby Nancy Cates, contributing writer

R ecruiting, training and retaining ualifi ed employees is a vital part of any business, and it’s especially diffi cult in the skilled trades. Now, the A A Skills

ertifi cation rogram is helping member companies and other mold manufacturing operations test and quantify the value of their employees’ training and skills while providing the employees with a clearer learning path and a real sense of accomplishment.

The American M old Builders Association saw the need to defi ne industry standards and brought together mold builders and other industry contributors to develop a certifi cation program. After a couple of years of beta testing and more than pilot tests, the refi ned program was rolled out in uly 2 . Now, certifi cation is being launched to the entire US mold manufacturing industry, setting new goals as the industry standard.

Andy Baker, operations manager at Byrne Tool + D esign, R ockford, M ichigan, had served on the AM BA board and was recruited to be on the development committee. “The skilled trades have taken a beating over the past couple of decades,” he said. “But, we are seeing investment by the community, and on Capitol H ill, people are talking about ( the trades) again. Those changes have given employees a lot of pride, and now, with certifi cation, they have something to show for all that work.”

With ex perienced workers – especially baby boomers – retiring, US Bureau of L abor S tatistics projections show that overall employment of machinists and tool and diemakers is expe cted to grow an average of six percent, and employment of machinists alone is expe cted to grow by 10 percent by 2 24. In addition, the number of workers entering the fi eld is

expected to be signifi cantly lower than the number of openings created by those retirements.

This projected shortage of skilled employees presents both a challenge and an opportunity in the industry. Using the certifi cation program in con unction with an apprenticeship program and an educational partnership with a community or technical college can ensure that apprentices obtain a solid and consistent training ground.

“We did a lot of the beta testing with three or four employees in our shop right away,” Baker said. “The committee went back and changed some things and improved the certifi cation tests. Then we sent them out to the membership. I took the tests myself so I could speak about them knowledgeably.”

M ore than 50 AM BA member companies were involved in pilot testing the program, which includes three tests: Primary S kills, M aster CNC Technician and M aster M oldmaker. Tests are taken online and are administrated by NO CTI ( National O ccupational Competency Testing I nstitute) Business S olutions, Big R apids, M ichigan.

“The tests are pretty in depth,” Baker said. “S ome people have a hard time testing and may have to take it a couple of times, but we have a really good success rate.” According to Baker, the aster N test is the most diffi cult, and people have the hardest time passing that test. H owever, as Baker pointed out, as an AM BA member, the cost to take the tests is minimal and the program allows members to utilize the tests to identify skills gaps, create training programs to address those gaps and even utilize the tests to measure the skills of potential new hires.

“I t meets our needs and the original goal of making sure we have a robust apprenticeship training program,” Baker continued.

37www.amba.org

Trainhands-on.

Whether you’re an experienced mold polisher or new to

the industry, Gesswein’s mold polishing classes will help

to hone your skills and improve the quality of work.

888.429.6336 www.gesswein.com/moldmakingtechnology.aspx

Whether you’re an experienced mold polisher or new to

2017 Dates

16th-17th

13th-14th

26th-27th

March: 13th-14th

July: 10th-11th

October: 23rd-24th

|||

We are confi dent that the program will ensure those being trained will learn what they are supposed to know. Y ou want to be sure you are training your staff appropriately.”

The Skills ertifi cation rogram can provide guide rails as moldmaking businesses evaluate their training curriculla. “Way back when I did my journeyman’s card there was nothing really recorded about, for exa mple: H ow many hours did I work on a specifi c machine he said. Now we sign off on specifi c skills we teach on the shop oor, and it’s uite extensive. We know ( the employees) get what they need from our local community college, so the certifi cation program ensures that everything is covered.

“There are some great people in this trade who don’t have formal training or a journeyman’s card, but they are valuable. M aybe they didn’t have the opportunity or couldn’t make the time commitment. H aving this opportunity can provide friendly competition, along with the pride of knowing they have the skills. I t pushes them to get involved,” he continued.

aker said his staff initially was hesitant about the certifi cation tests, and volunteers were sparse. The committee, or D ACUM , that created the tests was composed of master moldmakers and CNC technicians from all areas of the country, from varying industries and from different- sized shops. Because of those differences, some of the topics were unfamiliar to the Byrne employees. Now, Baker said, they understand they will have access to an outline before testing so they can study areas that aren’t familiar to them.

“O ur employees are our biggest asset,” he continued. “We have an education program that pays for schooling if they want to advance. A journeyman apprentice is a four- year program: 8,000 hours or so. D uring the second year, they should be ready to take the Primary S kills test. M aster S kills would be at the fourth year or beyond, because those are skills that really take time to learn. They can take the test when they are comfortable, but we will provide them with a recommendation. I f they try it too early, they can take it again later. The idea is that once they learn it, t hey know it.”

Byrne Tool + D esign is a small shop, with fewer than 25 on staff, Baker said. After working more than 10 years without an apprentice, the staff began to change. R ecently, three machinist apprentices fi nished the rimary Skills test and two are preparing for the M aster S kills tests. Now, an apprentice moldmaker is just beginning the program. The new people on staff and the certifi cation program sparked changes in training.

page 38

• One piece design• Small to medium sized parts up to 200 g• Gate diameters up to 1.8 mm• Suitable for use with all common plastics• In stock for same day shipping

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introduces the

TUNNEL GATESTUNNEL GATES

MIDIFLOW


UPDATE

Registration and details at…

PLASTECwest.com/AMBA

■ Get answers from hundreds of specialty suppliers and service providers, exhibiting the products you’ve only read about

■ Cut through the crowd with a variety of networking opportunities specially designed to connect you with the industry professionals you want to meet

■ Experience a wealth of educational opportunities, including free presentations in multiple theaters on the expo fl oor and open-to-all keynotes

EXHIBITION & CONFERENCE:

February 7–9, 2017Anaheim Convention Center | Anaheim, CA

33540_PL_ANA17

“Before, when we needed machinists, we threw them in the job where we needed them and didn’t move them around the shop the way we would have liked,” Baker said. “We will do it differently with the moldmaker so he will have opportunities to take classes at the community college throughout the four years. The program will certify everything learned on the shop oor, and we’ll use the information on what will be covered by

page 37

the AM BA skills test so apprentices know what they need to work on before they take the certifi cations.

The time and effort that go into the Skills ertifi cation rogram testing are reasons for recognition at Byrne Tool + D esign. When somebody passes and gets the certifi cate, we go buy

lunch for the shop and celebrate,” Baker expl ained.

“We’ve got guys who’ve been in the trade 20 to 30 years. I t’s something they can hang up on the wall at home or in the offi ce. I t means something to them and to the company.” I n addition to the certifi cates, those who pass the aster Skills tests can opt to purchase a plaque, which many companies are displaying in common areas for employees and customers ( and potential customers) to see.

“I t’s a great way to test your apprenticeship program,” Baker said. “Y ears ago, you could hire people from other shops, and they may have a certain knowledge level — but it wasn’t always the case. The certifi cation tests ualify your program. It could have as much meaning as a journeyman card or maybe replace the card.”

To that end, the AM BA is in the process of trademarking the Skills ertifi cation rogram with four letter credentialing for those participants who pass the tests.

“As the new industry standard, the AM BA Board of D irectors felt it important to recognize those that achieve certifi cation with credentials that will follow the recipient throughout his/her career path – truly an accomplishment to display with pride,” stated AM BA M anaging D irector K ym Conis. “As the A A Skills ertifi cation rogram continues to grow in visibility, we are confi dent that these credentials will serve to mark the highest level of competency throughout the mold manufacturing industry.”

ore information on the Skills ertifi cation rogram can be found at www.amba.org/skills certifi cation. n

The cost to take the tests is minimal and the program

allows members to utilize the tests to identify skills gaps,

create training programs to address those gaps and even

utilize the tests to measure the skills of potential new hires.

Registration and details at…

PLASTECwest.com/AMBA

■ Get answers from hundreds of specialty suppliers and service providers, exhibiting the products you’ve only read about

■ Cut through the crowd with a variety of networking opportunities specially designed to connect you with the industry professionals you want to meet

■ Experience a wealth of educational opportunities, including free presentations in multiple theaters on the expo fl oor and open-to-all keynotes

EXHIBITION & CONFERENCE:

February 7–9, 2017Anaheim Convention Center | Anaheim, CA

33540_PL_ANA17


OUTLOOK

Mold Builders

May Qualify for the

Domestic Production

Activities Deductionby Michael J. Devereux II, CPA, CMP, partner, Mueller Prost

The domestic production activities deduction ( D PAD ) , enacted in 2004 to help offset the repeal of a tax break for US expor ters, equals nine percent of the taxpayer’s ualifi ed production activities income for the tax year. While

this tax benefi t is more than a decade old, we have found that not all mold builders are claiming this valuable deduction. The D PAD is designed to be an equivalent of approxi mately three percent reduction in the mold builder’s tax rate associated with its US manufacturing operations.

Corporations, partnerships, limited liability companies and sole proprietors are eligible for the deduction. F urther, while the deduction was enacted as a result of the elimination of an expor t subsidy, mold builders are not required to expor t the tools to qualify for the D PAD .

The deduction equals nine percent of the net, taxa ble income attributable to eligible activities. H owever, the deduction may not exc eed the taxpa yer’s taxa ble income ( or adjusted gross income, in the case of S Corporation shareholders, partners in partnerships, and sole proprietorships) . I n addition, the D PAD may not exc eed 50 percent of the W- 2 wages paid to employees allocable to the activities giving rise to the deduction.

F or mold builders, qualifying income is equal to the difference between the business’ domestic production gross receipts ( D PG R ) , or qualifying sales, and its allocable expe nditures – including cost of goods sold allocable to the qualifying sales; deductions, expe nses and losses directly allocable to such sales; and other deductions, expe nses and losses that are properly allocable to such qualifying sales.

Q ualifying sales are those sales from the manufacture, production, growth or ext raction of qualifying production items in whole or in signifi cant part in the US. ost US mold builders engage in qualifying activities, but, that said, they should not assume that all net income is qualifying income. H owever, de minimis amounts of “other income” will not disqualify a mold builder from qualifying for the full deduction.

I R S treasury regulations provide that only one business may claim the D PAD with respect to any qualifying activity that is performed in connection with the same qualifying product. This requires the item to be manufactured:

1. by the business and 2. in whole or in signifi cant part within

the US .

Under current regulations, if one company performs a qualifying activity pursuant to a contract with another party, then only

41www.amba.org

OUTLOOK

page 42

the taxpayer that has the benefi ts and burdens of ownership of the qualifying production property is treated as engaging in qualifying activity. D etermining which party has the benefi ts and burdens of ownership is based upon the facts and circumstances, and taxpa yers should consider which party has the risk of loss, title of the work in process ( WI P) , control over the production process, liability with respect to “make good” contractual provisions and an opportunity to benefi t fi nancially from increased effi ciencies in the production process.

M old builders must look to their relationships with both customers and vendors in determining which party has the benefi ts and burdens of ownership during the manufacture of a tool. The I R S has issued a number of directives, each one superseding the previous, to help taxpayers determine which party has the benefi ts and burdens of ownership. The fi rst directive, in an effort to provide guidance to taxpa yers, provided for tax payers to assess three

“steps” ( each with three questions) to determine which party has the benefi ts and burdens of ownership. The determination of meeting these tests was to be applied on an item- by- item basis.

Mold Sales $8,000,000 $8,000,000

Cost of goods sold - 5,000,000 - 5,000,000

Gross profi t $3,000,000 $3,000,000

Other allocable expenditures - 2,200,000 - 2,200,000

Taxable income (pre-DPAD) $ 800,000 $ 800,000

DPAD - 0 - 72,000

Taxable income $ 800,000 $ 728,000

Federal income tax $ 295,250 $ 267,170

Tax Savings, as a result of DPAD $ 28,080

Not Claiming DPAD

Claiming DPAD


page 41

OUTLOOK

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CHICAGO 800-621-1460DETROIT 800-367-4720

LOS ANGELES 800-248-0551BRAMPTON, ONTARIO 800-268-3077

I n an effort to simplify the process, the second directive provided that the parties could agree at the outset of the manufacturing activity which party has the benefi ts and burdens of ownership. The third, and fi nal, directive reiterated the second directive and provided that the taxpa yer provide a statement expl aining the basis for the determination of which party has the benefi ts and burdens of ownership.

While the third directive has not been rescinded, the US Treasury D epartment proposed regulations eliminating the benefi ts and burdens of ownership test. In its place, the proposed regulations provide that if a qualifying activity is performed under a contract, then the party that performs the activity is the taxpayer that receives the benefi t of the deduction.

M oreover, it should be noted that multiple companies could have qualifying income for different stages in the manufacture of a product.

To the magnitude of this benefi t, consider the following, contrasting exa mples for a US mold builder claiming and not claiming the D PAD . This exa mple assumes all of the activities take place within the United S tates and are performed by the mold builder.

The D AD is an extremely benefi cial provision of the I nternal R evenue Code for mold builders in the US . Careful consideration of the requirements will help companies ensure they are calculating the proper amount of D PAD , as well as help establish procedures that substantiate such positions in the event of an I R S exa mination. n

Michael J. Devereux II, CPA, CMP, is a partner and director of Manufacturing, Distribution & Plastics Industry Services for Mueller Prost. Devereux’s primary focus is on tax incentives for the manufacturing sector. He serves on MAPP’s Board of Directors and has been a MAPP sponsor since 2006. Mueller Prost’s Tax Incentives Group is nationally recognized and has assisted numerous companies in the plastics industry capture these benefi ts. For more information, email [email protected] or call 314.862.2070.

43www.amba.org

page 44

MANAGEMENT

Concrete Core Values: The Driving Force to Business Success

by Wayne Schoeneberg, speaker and author

Core values are the driving force behind your professional life, so you had better take a moment

and fi gure out what they are.

S peakers love to talk about them. Writers love to write about them, but few get down to expl aining what they are and how core values in uence the actions you take daily. Whether you run the suite or mop the oors, it’s imperative that you identify your core values and realize how important they are to your success.

Core values are the company’s compassCore values for companies are primarily a guide for the internal organization. Core values are very much like a mission statement. They announce for the managers, employees and your customers what the company’s philosophy is supposed to be. Core values can be helpful in setting the direction of a business. They can be a reminder – readily available to employees – of the management’s corporate compass: the ideals, principles and values that create the company’s foundation.

Make your core values knownou often will fi nd the core values or

mission statement on the wall. They are certainly somewhere in contracts or other customer- focused business collateral. The numbers, of course, are immensely valuable, but simple facts and fi gures on a page can quickly become tedious, repetitive and ultimately uninteresting. D isplaying your company’s core values clearly provides your customers with the reassurance that they are choosing to do business with a company of principle and integrity.


page 43

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AMBAMoldBuilder2016_Ad_WIEngraving.indd 1 12/30/2015 2:18:58 PM

Your company’s values are more than wordsBut, your values need to be more than part of the company slogan to be effective. Core values need to be just that: They need to be the company culture. I f they are, they don’t need to be repeated; they will be expe rienced and lived by each employee each day, from the C- S uite to the street sweep.

S imply announcing a core value is not enough – it must be woven into the company culture. To allow that, it must be genuine. To be a core value it must be simple enough that any employee can look at it and determine whether his or her actions are in accordance with the value. That is a tall order.

Core values lead the way during adversity I t is easy for companies to say they are propelled by a distinct set of core values. I n times of adversity, your core values should be the guide that is consulted. S adly, often in those hard times, the core values give way to ex pediency. That is when the core value, or mission statement, gets ignored in order to achieve a desired result. Avoid the temptation to subvert your driving principles for an easy solution. L et your company’s core values guide you when times get tough.

Your personal core values impact the companyWhat are you core values as an individual? These are more important to you than the core values of your company. These are your guiding principles. These are the values that determine the course of action you will take as you go through your professional life.

What is important to you? The reason you need to know them is because even if you can’t identify them, they are the driving force behind everything you do. R ather than let these values unconsciously dictate your direction, you need to identify them and allow them to take an active part in every decision that you make.

Values are a decision-making beaconEvery choice you make at work, from seemingly innocuous daily decisions to the choices that play a major part in the direction of the company, is an opportunity to display your internal values. I f honesty and integrity are your core values, your decisions are made with those principles in play whether you know it or not.

That is why it is important to investigate your core values. When you discover what they are you begin to understand why you behave the way you do. ou will not fi nd happiness and success if you are operating in opposition to your core values.

Peer into the future. Think of where you would like to be and how you plan to get there. Core values can include a variety of things. M aybe adventure is a core value of yours. I f so, pursue it. Try new things. Take some risks.

45www.amba.org

build lasting relationships. This is your life. G et the most out of it by honoring those values that go to the heart of who you are. That is the way to better serve yourself and those around you. n

Wayne Schoeneberg is a Certifi ed Professional Coach, a dynamic speaker and bestselling author of “No Clients? No Job? No Problem!” With his distinct perspective on the infl uence of fear, Schoeneberg’s inspiring message instills in his audience the courage to be confi dent and provides them with the tools to become the architects of their own success. For more information, visit www.LiveBeyondFear.com.

MANAGEMENT

O nce you discover your core values, life becomes simpler. Y our decisions about your career become more evident and easier to make. Y our business relationships take on new meaning. M ost of all, t hose relationships become more meaningful to you.

M ake a list of those things that are important to you and those things that are important to your business. As you do, you will see your core values reveal themselves and you will see which values are priorities. O nce you make the list, it almost organizes itself.

The secret to success is to be true to your core values – at a company and personal level. Build your life around those values and you will alleviate stress, increase bottom lines and

Every choice you make at work, from seemingly innocuous

daily decisions to the choices that play a major part in the

direction of the company, is an opportunity to display your

internal values.


4

Ad Index3D Systems/Cimatron E ...................................................... www.3dsystems.com | www.cimatrontech.com .................................. 25

Acrisure ................................................................................ www.acrisure.com................................................................................ 14

American Mold Builders Association .................................. www.amba.org ............................................................................... 33, 45

CGS North America, Inc. .................................................... www.camtool.com ............................................................................... 38

Crystallume, a Division of RobbJack Corporation .............. www.crystallume.com.......................................................................... 41

Dynamic Surface Technologies ........................................... www.dynablue.com................................................................................ 5

EROWA System Solutions .................................................. www.erowa.com .................................................................................. 10

Ewikon Molding Technologies ............................................ www.ewikonusa.com ........................................................................... 33

Finkl Steel ............................................................................ www.fi nkl.com .................................................................................... 42

Gesswein .............................................................................. www.gesswein.com.............................................................................. 37

Grainger ............................................................................... www.grainger.com ..................................................... Inside Back Cover

HASCO America, Inc. ......................................................... www.hasco.com ..................................................................................... 9

Hirschmann, Inc. ................................................................. www.hirschmannusa.com .................................................................... 31

INCOE Corporation ............................................................. www.incoe.com.................................................................................... 21

Meusburger .......................................................................... www.meusburger.com ......................................................................... 17

Milacron ............................................................................... www.milacron.com ............................................................... Back Cover

Mold-Tech Midwest ............................................................. www.mold-tech.com ............................................................................ 20

National Tool & Manufacturing, Co. . ................................. www.ntm.com ...................................................................................... 14

PCS Company ...................................................................... www.pcs-company.com ....................................................................... 29

PLASTEC West ................................................................... www.plastecwest.com .......................................................................... 39

Plastic Engineering & Technical Services, Inc. ................... www.petsinc.net ................................................................................... 11

Precision Laser Technology ................................................. www.PrecisionLaserTech.com ............................................................ 44

Precision Marshall Steel ...................................................... www.MarshalloyMQFM.com .............................................................. 23

Progressive Components ...................................................... www.procomps.com .................................................. Inside Front Cover

Superior Die Set Corporation ............................................... www.superiordieset.com ...................................................................... 37

Ultra Polishing, Inc. ............................................................. www.ultrapolishing.com ...................................................................... 19

Vincent Tool ........................................................................ www.vincenttool.com .......................................................................... 28

Wisconsin Engraving Co. Inc./Unitex ................................. www.wi-engraving.com ....................................................................... 44

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