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THIS ISSUE: Appreciation & Dedication / Political Pandering / Mastering Precise Manufacturing / Corrosion

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ARIZONATOOLING.ORG SEPTEMBER/OCTOBER 2012

PrecisionNews TM

TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

Inside: IS MONEY A MOTIVATOR? ARE YOUR EMPLOYEES MOTIVATED BY THE WORK ITSELF OR BY THE REWARD?

CONCENTRATION OF SALES IS A GAME OF ‘RISK’ LEARN THE SIMILARITIES BETWEEN POSITIONING AN ARMY FOR BATTLE AND BUILDING A BUSINESS FOR LONG-TERM SUCCESS

COSTING IS THE ONLY THING GATHER SOLID AND REPRESENTATIVE DATA TO ACCOUNT FOR WHAT YOUR PRODUCT COSTS

NEW POLICIES, NEW PROCESSES NEW PROCEDURES AND

BLAZE A NEW PATH

/ AND WATCH YOUR BUSINESS GROW! /

THE ANALYSIS ISSUE

NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!


SEPTEMBER/OCTOBER 2012 VOLUME 2 • ISSUE 6

Contents Features

Departments

SPECIAL ADVERTISING FEATURE

10 12 16

THIS CORROSION

03 President’s Letter

The annual costs associated with corrosion in the United States was between $9 billion and $90 billion. As you can see, corrosion is a major problem for us all.

04 Policy Matters

CONCENTRATIONS - A GAME OF RISK There are many similarities between building and positioning an army for battle and building and positioning a business for long-term success. There are also many risks that both face and must overcome.

06 Trend Watch 08 People Power 18 Shop Floor 20 Websites that Work

WHY COSTING ISN’T JUST THE MOST IMPORTANT THING, IT’S THE ONLY THING

20 Arizona Chapter Info 26 San Diego Chapter Info

Cost analysis is the most important aspect of a company’s financial condition. Without a firm handle on costs, profitable selling prices cannot be established which cut to the core of the existence of the company. Any size company must gather solid and representative data to properly account for what the product costs.

28 North Texas Chapter Info 30 San Francisco Chapter Info

OUR MISSION:

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

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

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TM

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CONTRIBUTING WRITERS Jamie Beauvais, Dante Fierros, Sean Holt, Margaret Jacoby, Omar Nashashibi, Davis Senkfor, Brent Terhaar, Ted Szaniawski ADVISORY BOARD Chris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser EDITORIAL, ADVERTISING & ADDRESS CHANGES Chris Mignella, Executive Director & Editor Phone: 602.388.5752 Email: ExecutiveDirector@arizonatooling.org

Precision News is published bi-monthly by the Arizona Tooling & Machining Association (ATMA). Opinions expressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes no liability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from ATMA is prohibited. Precision News is the registered trade name of this publication. Copyright ©2012 by ATMA. All rights reserved.

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Consolidated Resources, Inc. Industrial Recycling Specialists

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

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

20th

Anniversary

Call Kerry 623.931.5009

kerry@consolidatedresources.com

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


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First Word PRESIDENT’S LETTER

APPRECIATE... appreciation: sensitive awareness; especially recognition of values; an expression of admiration or gratitude.

. . .. ..

We were deeply saddened by the loss of our board member, associate and friend Bob Marusiak, CEO of Micro-Tronics Inc. who passed away after a valiant fight against cancer. Bob so loved his family, country and God and we as his friends and associates miss him and will continue to do so for a very long time. We appreciate the fact that his path crossed ours and are especially grateful for knowing him and working with him. I am also very appreciative of the positive feedback we have received about our dinner meetings and other activities in support of our members. The increased participation by our members, associates and sponsors is noted and for this we all benefit and are grateful. Please keep your comments and directions coming. We are here to support the needs of our members through service. We have increased our membership to number 82 which is great. However, we still see a few nonparticipating members falling away and not being part of the group. We endeavor to find out why and hopefully, prevent any future resignations. Continuing the discussion of appreciation, we are planning a wonderful “Member Appreciation Night” for September 26th at the Hilton Hotel. This program is sponsored and coordinated by our associate members and is full of good reasons for your attendance and participation. The agenda includes: • The latest associate member information on display • Associate member giveaways • An exciting presentation by a USAF officer with the theme of appreciation for the work our members do on how we positively impact the USAF mission • A drawing for an exciting B17 or B24 ride (for member representatives only) • A wonderful buffet and cash bar • The opportunity to network with associates, sponsors and peers

DANTE O. FIERROS President 602.980.1907 dante@nicholsprecision.com

Keeping with the USAF subject, I am also appreciative of the fact that Luke Air Force Base will be the home to three squadrons of the new F-35 Lightning II pilot-training mission. This insures a positive economic impact to Arizona and to many of our ATMA member companies. And finally, I am also appreciative of our teams that help to make our association a great one to include the Safety Team, our Marketing, Membership and Planning team, our Board of Directors and individuals that seem to always find a few hours in the week to help out with many different projects. We continue to work with new and helpful “partners” like the Society of Manufacturing Engineers (SME), Arizona Commerce Authority (ACA), Arizona Chamber of Commerce and Industry, the East Valley Partnership (EVP), ASU, Maricopa Workforce Development, Arizona Precision Manufacturing Apprentiship Program (AZPMAP). Thank you all for your great efforts.

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fyi: .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..With .. .. ..so.. ..much ......................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . at. .stake . . . .in. November . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. and fewer than a couple Policy Matters percentage points possibly BECOME A VOICE FOR CHANGE deciding the outcome, every vote counts. +

Politicians Courting Manufacturers A New Wave of Political Pandering by OMAR S. NASHASHIBI

Washington, D.C. – We are accustomed to seeing politicians from the county sheriff to Members of Congress to presidential candidates kissing babies, shaking hands, and visiting the local diner to rub elbows with voters. But a new wave of political pandering has broken – courting the manufacturing vote. As a lobbyist in Washington, D.C. for manufacturing trade associations and companies, my job is to convince leaders in Congress and the White House to develop policies that strengthen manufacturing in America. Typically, some people are more receptive than others, but we have seen a notable and welcome change this year in their attitude towards manufacturing. More and more lawmakers are calling us asking if we will set up a manufacturing plant tour or CEO roundtable in their congressional district, so they can meet business owners and employees (read: voters). Lawmakers on both sides of the aisle have introduced hundreds of bills in both the House and Senate impacting manufacturing as they try to show their support for the backbone of our economy. President Obama dispatched Vice President Biden to virtually live in the manufacturing heavy states of Ohio and Pennsylvania. In looking at the presidential and vice presidential candidate travel so far this year, we see their overwhelming focus on the Midwest and Western parts of the country. Since taking office in 2009, President Obama has visited Ohio 39 times, Colorado 16 times, and Arizona and New Mexico 10 times. Republican presidential candidate, former Massachusetts Governor Mitt Romney, recently toured the plant of a National

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Tooling and Machining Association member company where he held a press conference discussing his proposals to strengthen manufacturing in America. For years, we have been trying to get politician’s attention and now we have it. So what is next? With a captive audience between now and the November 6 election date, it is critical that manufacturers seize the opportunity to educate politicians about the industry. Some will say “why should this matter; after the election they will just go back to business as usual.” Here is why there is no business as usual anymore in Washington. On January 1, 2013, $5.4 trillion in tax increases take effect if Congress does not act affect every manufacturer in the country. The nonpartisan Congressional Budget Office released an earthshattering report in August saying the country will slip back into a recession with unemployment exceeding 9.1% if Congress fails to prevent billions in tax increases and spending cuts before the end of the year. Regardless of what happens by year’s end, manufacturers have a lot at stake in 2013 and this November’s elections could determine both the winners and losers in tax reform, which Washington is slated to tackle next year. Nearly every political analyst believes this presidential election will be one of the closest in history—one where every vote counts. Public polls in swing states across the country show either the President or Governor Romney ahead by less than four percentage points. There are roughly 200 million eligible voters in the U.S. of which manufacturing, including employees and business owners and their families make up roughly seven percent of the voting age

september/october 2012

population. If just half the eligible manufacturers vote, their ballots could swing the election to one party or the other. In 2008, both Senators Obama and John McCain (R-AZ) spent heavily courting independent and undecided voters. This election has shown there are very few true undecided voters. Therefore, this election will focus on turnout and which voters turn up at the polls in November. This is why NTMA and other groups are focusing so heavily on Get Out The Vote (GOTV) efforts and encouraging manufacturers to vote in this decisive election. NTMA is providing resources to its members at www.metalworkingadvocate.org where manufacturers can see how any given member of Congress has voted on issues important to our industry. While both political parties are engaging in massive voter registration drives, NTMA is also helping manufacturing businesses inform their employees how to register to vote and the importance of this election. With so much at stake in November and fewer than a couple percentage points possibly deciding the outcome, every vote counts. As politicians pander to manufacturers looking for your vote, seize the opportunity to educate policymakers about your business and the pivotal role it plays in the economy.

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


THE ARIZONA TOOLING AND MACHINING ASSOCIATION

FOCUSED ON THE FUTURE:

MANUFACTURING IN ARIZONA AND PROVIDING THE CAPABILITIES YOU NEED TODAY!

/

THE STATE OF ARIZONA has a broad and capable industrial base committed to providing low-cost manufacturing to OEMs

and Tier Ones around the world. Our agile and entrepreneurial small shops make Arizona’s high-tech manufacturing supply base one of the world’s most capable and cost-effective for machined and fabricated components. Our industry supplies the necessary precision tooling and machining for such vital industries as defense, automotive, aerospace, medical, appliance, business machines, electronics, agricultural implements, ordinance, transportation, environmental, construction equipment, nuclear and many more.

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Arizona Tooling & Machining Association

ATMA PRECISION

Contact the Arizona Tooling and Machining Association and discover why doing business in Arizona will give your company the Competive Edge. CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752 executivedirector@arizonatooling.org

arizonatooling.org


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Trend Watch NEWS FROM THE CUTTING EDGE

Mastering Precise Manufacturing Processes for Critical Parts by SEAN HOLT, AEROSPACE APPLICATION MANAGER, SANDVIK COROMANT US

When it comes to manufacturing, few industries involve higher demands, stricter safety standards and tougher-to-machine materials than aerospace and automotive. In these industries, subpar surface quality or part integrity can mean life or death—and are simply unacceptable. Because these parts must withstand extreme conditions, they often require titanium, super alloys and other hard-to-machine materials. The same materials that guarantee the most solid, reliable components, however, often become subject to extreme manufacturing methods that cause heat and stress that adversely affect the integrity of the finished part. What’s more, the manufacturing processes for these parts are checked and accepted prior to machining; making it impossible to change or improve aspects of the machining process—insert style, grade, geometry, cutting speed/feed/depth—without recertification. The importance of surface quality The term “surface integrity” describes the quality and condition of a surface region, and encompasses the surface topography and any sub-surface metallurgical alterations. The combination of stress and elevated temperatures that occur during machining can lead to alterations of the microstructure,

while still producing parts with optimal surface quality for high performance and longevity. In titanium, for example, the minimum requirements are parts with a deformation depth no greater than 10 micrometers, with compressive residual The extent of such defects depends upon the work-piece properties and the interaction stresses returning to normal within 200 of the mechanical and thermal energy during micrometers of the surface. machining. With titanium and other difficult metals, tooling plays a large part in the process. Machine and tooling leaders are constantly First, because of the materials involved, developing technological innovations to these machining applications call for largereliminate the challenges inherent in volume insert use. The cost of these machining hard materials. When optimizing their processes, however, manufacturers and inserts—and the resulting time operators must spend indexing them—can be a huge their customers must know and understand drain on profit. To combat this, the effects of changing operating manufacturers can use uncoated inserts with parameters before they accept new a ground sharp edge, which will maximize machining strategies. tool life. Previous tests in titanium have shown that coated tools offer no consistent Profit takes productivity, quality surface-integrity advantage over uncoated When optimizing a machining process for a tools—since coated tools cause a high-level critical component, keep productivity and quality in mind. The new method should offer of chemical reaction and temperature a reliable process with the lowest total cost, extremes at the cutting edge. cause micro-hardness changes, surface cracking, craters, folds, inclusions, plastic deformation and residual stresses in the finished part.

fyi: Total solution support should encompass spindle interface, tool holder selection, programming methods, insert grade and geometry, and surface integrity. +

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The insert-holding system can also play a part in lessening setup and tool-change times—which occur more frequently when machining difficult materials. Quick-change systems can allow manufacturers to change inserts in a matter of seconds, rather than minutes. Finally, using a maximum cutting speed of 380 surface-feet per minute will slow down the tool-wear process. Another productivity tip: Always use a ound insert or the largest radius possible when machining critical parts, to allow an increased feed rate. This helps to achieve higher metal-removal rates and increase efficiency. Also, productive coolant

systems can help with chip-breaking performance. Partner up Industries that require components with high surface quality can be difficult to navigate. It’s important to choose a partner that understands the nuances of challenging machining applications. Tooling partners should provide total solutions that encompass spindle interface, tool-holder selection, programming methods, insert grade and geometry. Be sure to choose a partner who has the training programs and resources to provide ongoing support if issues or questions arise.

While critical-component machining presents challenges, the growth opportunities are extraordinary. With a partner that understands the balance of productivity and part quality—plus the right knowledge and tools—the sky is the limit.

SEAN HOLT is the Aerospace Application Manager at Sandvik Coromant U.S. Visit www.aero-knowledge.com for these and other aerospace component solutions from Sandvik Coromant. Learn more about trochoidal turning, trochoidal milling, and other CAM programming tips at www.MyYellowCoat.com/cam-tips *Previously published in AMT News, October 2011.

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People Power INFORMATION FOR ACTION

Is Money a Motivator? Yes, No and Maybe! by TED SZANIAWSKI

In a Forbes magazine article - “Why Money Isn’t a Motivator” (Jacobs) - critiquing the on-going government bailouts and particularly the use of mandated caps on executive compensation. The major point made by the author is that these caps are “self defeating”, that “we are motivated by the work itself, not the reward”. He goes on to observe that the on-going economic crisis offers us the opportunity to focus “not on the accumulation of wealth, but on community and public service”. For years you have heard statement like, “Different strokes for different folks,” “to each his own,” and “people do things for their own reasons, not yours.” When you are in a work environment that supports your values, you will be energized. However, when in an environment that stresses values that are significantly different from yours, you may feel out of sync.

RESEARCH HAS SHOWN THAT 83% OF TOP PERFORMING SALES PEOPLE HAVE “UTILITARIAN” AS THEIR PRIMARY OR SECONDARY MOTIVATOR.

Therefore, we believe strongly that the question “Is Money a Motivator?” cannot be answered in a global sense, but rather must be addressed individually. An assessment we use in our consulting practice is “Workplace Motivators™”. This assessment identifies and ranks six “values” or “attitudes” that act as individual motivators. It identifies an individual’s passion for each of the six values. And by measuring values, we uncover what motivates each individual. Is Money a Motivator? Yes . . . for those with a high ranking in Utilitarian or Individualistic. Utilitarian is best defined as ROI. It relates to money and the efficient use of time, energy and resources. Most assuredly these individuals are motivated by money! Research has shown that 83% of top performing sales people have Utilitarian as their primary or secondary Motivator. Individualistic has to do with power and influence. Money is one of the ingredients in their tool kit to carry out their mission to assert themselves and their mission.

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Is Money a Motivator? No . . . for those with a high score of Aesthetic or Social. The Aesthetic values form, harmony, beauty and balance. Think “starving artist” or environmentalist as professions that motivate a high Aesthetic. The Social values emphasize making the world a better place and eliminating hate and conflict through their inherent love of others. Is Money a Motivator? Maybe . . . for those with a high Theoretical or Traditional ranking. Theoretical focuses on truth and knowledge while a Traditional attitude focuses on principles and finding/ following a system for living. Neither of these two attitudes specifically addresses the question of money as a motivator; hence we include them in the “maybe” category. To answer this question for these individuals we need to look at the secondary level of Motivators to move them into the Yes or No category. Lesson for Leaders/Managers For Leaders/Managers to manage effectively they must understand what motivators a job will reward. And then, they must understand what motivators each employee brings to the organization. Matching the two will result in “unleashing talent”.

TED SZANIAWSKI is the principal of HRGroup, LLC. He can be reached at ted@hrgrouponline.com Learn more at: www.hrgrouponline.com


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What Drives You May Not Be What Drives Your Employees Motivation is the number one problem facing business today Over the past 40 years there have been numerous surveys on what motivates employees to do their best work. Once people find they earn enough to live on and money ceases to be a stress factor in their lives many other motivators in the workplace become of higher importance. For motivational problems, the best source of information is the employee. Employees must be asked on a regular basis what sparks and sustains their desire to work. Their responses may lead the employer to redesign jobs, increase pay, change the working environment, or give more credit for work done. The key is, however, that managers avoid the assumption that what motivates them motivates their employees as well. Studies have shown that employees are motivated by feedback and recognition for the work they do. Here lies the problem. Most employers think they know how to express appreciation for a job well done. Yet, research shows that employers seldom acknowledge appreciation for employees’ work; and, when they do, it is done poorly. More than 80 per cent of supervisors claim they frequently express appreciation to their subordinates, while less than 20 per cent of the employees report that their supervisors express appreciation more than occasionally. Giving staff the opportunity to contribute to a company's growth and development through hard times like the recession will motivate people and give them a role in securing their own future and careers. People stay in a job because they feel good about themselves and their work. No one does this if they're just slogging through - no matter how much they are paid. MARGARET JACOBY, SPHR President, MJ Management Solutions, Inc. Contact by email at: margaret@mjms.net Learn more at: www.mjms.net

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

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

Copper Brass Aluminum Steel Stainless Steel

Titanium Plastic Cardboard Nickel and Cobalt Alloys

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

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


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Oil Barron Bulletin SPECIAL ADVERTISING FEATURE

VOLUME 11:

This Corrosion by BRETT “THE COOLANT GUY” REYNOLDS, CMFS

Let’s talk about a subject which plagues everyone, corrosion. A few years back the National Bureau of Standards now called the National Institute of Standards and Technology, did a study and estimated that the annual costs associated with corrosion in the United States was between $9 billion and $90 billion. These figures have been affirmed by various organizations as well as by the National Association of Corrosion Engineers. So as you can see, corrosion is a major problem for us all. In order to understand corrosion, we must first understand what corrosion is. As stated in the Corrosion Engineering Handbook (second addition) on the Fundamentals of Metallic Corrosion, by Philip Schweitzer, “Corrosion is the degradation of a material’s properties or mass over time due to environmental effects”. When a material corrodes it elements are basically returning to their natural state. These elements turn into oxides, sulfides or other basic metallic compounds. All metals corrode (unless present in an inert atmosphere or vacuum environment), both ferrous and non-ferrous alike. It is not the scope of this article to go in-depth into the various forms of corrosion; however I will list them for your future reference. A more in-depth study of these forms of corrosion can be found in the before mentioned reference.

• Pitting • Galvanic corrosion • Uniform corrosion • Stress corrosion cracking • Intergranular corrosion • Crevice corrosion • Biological corrosion • Selective corrosion • Erosion corrosion Let’s learn about the various forms of corrosion that machine shops and manufacturing companies alike deal with regarding the use of metalworking fluids. These forms of corrosion can comprise the following – Pitting, Galvanic, Biological corrosion and in the aerospace sector, Stress corrosion cracking (SCC). Many factors can induce these forms of corrosion. An example would be the result that a metalworking fluid with an excessively high pH factor would have on Aluminum, such as Pitting and Galvanic Corrosion/Aluminum Staining. Biological corrosion induced by a microorganism’s metabolic activity, can cause corrosion by forming various acids in the bulk metalworking fluid itself, or by attacking the metals surface directly via bio-films. Stress corrosion cracking takes place when various chemicals capable of causing SCC attack the metal surface. An example of a “capable chemical”, in this case Chlorinated Paraffin found in various MWF’s, coming in contact with Titanium can induce Hydrogen Embrittlement. This corrosion takes place when hydrogen forms on the metal surface under heat and pressure, forming a hydride phase, thus allowing hydrogen to enter into the Titanium alloy. So unless you’re going to live in a vacuum, we’re all going to deal with corrosion at some time in our lives. Boy! Where are the Rust-eze guys when you need them?

Stay tuned for more useful coolant tips, from The Coolant Guy!

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

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

Exclusive distributor for the state of Arizona:

MAGNUM PRECISION MACHINES

Magnum Precision Machines 3614 E. Southern Avenue #1 Phoenix, AZ 85040 Phone (602) 431-8300

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Feature Story // PrecisionNews

We’ve all played it. The world map as the game board. The placement of each army on their respective continent. Assembling the cavalry, artillery, and infantry figurines preparing for battle. Believing your strategy is the one that will get you to the ultimate goal – World Domination! Let’s face it, playing the board game Risk brings out the Napoleon in all of us.

Concentrations–

AGame of Risk STORY BY BRENT TERHAAR

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There are many similarities between building and positioning an army for battle and building and positioning a business for long-term success. There are also many risks that both face and must overcome. Just like a good general, business owners constantly need to evaluate and take calculated risks. Whether you’re on the battlefield, or on the shop floor, there’s one risk in particular that stands out and can mean the difference between success and failure – the risk of concentrations. Concentrations are common in business and take many forms; Concentrations of sales to a major customer, a concentration serving primarily one industry, concentrations in geographies, or concentrations in a core competency. While common, concentrations are the most significant risk for a small to medium sized business and must be managed accordingly. EARLY ON – CONCENTRATIONS CAN BE YOUR FRIEND A common strategy in the board game Risk is to concentrate your armies on one front and slowly build up your defense. Early on, this strategy can lead to a position of strength. Focusing your efforts on one area allows you to fend off advancing armies and survive the early battles. Is this strategy much different than the approach a small business owner takes early in the life of their business? Most businesses get their initial big break from being closely connected to a key customer. They bet their chips on one significant relationship and build a core competency by being very adept at meeting the wants and needs of that customer. This customer can be the springboard for the business, and one that sustains the business in its formative years. In many instances, this customer relationship continues to expand and remains the driving force in the business for years to come.


OVER TIME – CONCENTRATIONS INCREASE RISK In the game of Risk, keeping a static position leaves an army vulnerable and susceptible to attack on multiple fronts. Armies that are well diversified and mobile can easily find chinks in the armor of an overly concentrated adversary. In business, concentrations also create risks that grow over time. What happens if a key customer decides to consolidate suppliers (especially if you have had a service issue or some sort of hiccup in the relationship)? What happens when the customer’s industry goes through a cyclical downturn or changes its supply chain strategy? What happens when that customer decides to pay in 90 days versus 30? What happens when your salesman that has the strong customer relationship decides to leave and join a competitor? All of these can have dire consequences for a small business. There are collateral consequences to these concentrations as well. Business concentrations not only increase risk to the business owner, they increase the risk to outside lenders or potential buyers of the business. Lenders will limit credit to mitigate their risk, and potential buyers will likely lower their offering price (or walk away from the deal altogether) if they deem the risk to be too high. continued on page 32


Arizona Tooling & Machining Association

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Building Buildinga aBetter BetterBusiness Business In order to build a healthy and Building B u i ld i n g a Better B e t t e r B Business ussustainable in ess business, In order to build a healthy and sustainable business,

a business nbusiness order order owner tto oowner build buildmust amust he healthy agrow ltgrow hy and aprofits, nprofits, d sustainable sustabuild ibuild nablevalue, business, business, aIIn value, reduce risk and plan for succession. Learn the a bus i ne s s o w ne r m us t g r o w pr o f i t s , bui l d v alue, business owner must grow profits, build value, reduce risk and plan for succession. Learn the plan Learn rreduce educe rrisk isk aand ndof plbuilding an for forasuccession. suc cessiobusiness n. Learninthe tin hthis ethis fundamentals of building better fundamentals a better business of building better ffundamentals unda mseries ent alsdeveloped ofdeveloped buildingfor afor be tbusiness ter business busiowners. ne ss iin n this this four part business four part series owners. series developed owners. ffour our part part se ries de veloped for for business business o wners. Each session covers a differentphase phaseofof Each session covers a different Each session sessionand cand ovbuilds erbuilds s a different don iffer en p hase o Each covers phase offsession: development onthe thetprevious previous session: development development aand nd builds builds on on the the pr evious session: session: development previous Financial Health x x Financial Health Financial F in a n c ia l Health Health x Market Growth x Market Growth x Market M a r k et Growth G roDevelopment wth Leadership x Leadership Development LLeadership eadership Development D evelopment Operations Execution x x Operations Execution x O Operations perations EExecution xecution

EEvent vent Information Information Information Event Event Information Dates: D ates: Dates: Dates:

SScheduled cheduled w with ith enough eenough nough time titime me apart apa rt to totogget et Scheduled with apart get traction, tra c tio n , but b u t close c lo s e enough e n o u g h together to g e th e r to Scheduled with enough time apart to get traction, but close enough together to ccreate reate momentum. mo meclose ntum.enough together to traction, but create momentum. create momentum. TTuesday, uesday, September September 18, 2012 Tuesday, September 18, 2012 Financial Fin ancial Health H ealth Tuesday, September 18, 2012 Financial Health Financial Health TTuesday, uesday, October October 30, 2012 Tuesday, October 30,2012 2012 Market M arket Growth GrOctober owth 30, Tuesday, Market Growth Market Growth TTuesday, uesday, December December 18, 2012 Tuesday, 18, LLeadership eadershiDecember pDecember Development Developm en2012 t2012 Tuesday, 18, Leadership Development Leadership Development TTuesday, uesday, January, January, 29, 2013 Tuesday, January, 29, 2013 Operations O perationJanuary, s Execution Executio n 2013 Tuesday, 29, Operations Execution Operations Execution

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8:00 8: 00 – 8:30 8:30 a.m. — Registration Registration 8:00 8:30 a.m. ——Registration Registration 8:30 8 :30 a.m. – 4a.m. p.m. p.m.— Session Session – 8:30 8:30 a.m. – 4 p.m. — – 4 provided p.m. LLunch unch to to be pr ovi— deSession dSession

Leave each session ready to implement, not plan: Leave each session ready to implement, not plan: LLeave eave each each ssession ession rready eady tto o iimplement, mplement, n ot plan: plan: not x Build a financial model that non-financial x x Build Build B uialdfinancial a financial funderstand inanciamodel l model modand ethat l that thdrive anon-financial t non-financial non-financial leaders leaders understand and drive l e a de r s unde r s t a nd a nd dr i v leaders understand and drive x Increase activity with existinge customers x Increase IIncrease ncreasactivity e new activity activmarkets itwith y with withexisting existing existingcustomers customers customers x Develop x x Develop new markets Develop key n new ewleadership markets markets roles and teams Develop x x Develop leadership Develop D evelokey p kkey ey leadership leaderinto shiproles roles rolesand and andteams teams taction eams Translate strategy short-term x x Translate strategy into short-term action TTranslate ranslate strategy strategy iinto nto sshort-term hort-term action action plans plans pl ans plans Who should attend Who Whshould o sshould houattend ld attend aseries ttend is ideal for owners and Who Development Development series for Development is and DevelopmenFor t sseries er ieiss ideal is ideal ideainteraction, l for foowners r owners ownersand an d leadership. maximum attendance is leadershi p.the Fomaximum rm a8ximu m iinteraction, nterawith ctionno , aattendance tmore tendathan nceisiiss3 leadership. For maximum leadership. interaction, attendance limited toFor first companies limited o tthe hper e first ficompany. rs8t companies ompaniewith sw ithnonomore morethan than33 limited 8 ccompanies with more than limited to tto the first individuals individuaper ls per pecompany. r company. company. individuals individuals Facilitators Facilitators Facilitators CliftonLarsonAllen Industry Specialists: 2 Per Session Facilitators C l i f t o nL a r s o nA l l e n Indus&trSupply y Sp eciaChain lists2: 2Experience PerSession Session CliftonLarsonAllen Industry Specialists: Per Session Financial, Operational, CliftonLarsonAllen Industry Specialists: Per Financial, Operational, Supply Chain Experience FinanciaOperational, l, O perationa& l, & SupplyChain C hainExperience Experience Financial, Supply

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Feature Story // PrecisionNews

STORY BY DAVID SENKFOR

Cost analysis is the most important aspect of a company’s financial condition. Without a firm handle on costs, profitable selling prices cannot be established which cut to the core of the existence of the company. Most companies have some kind of cost analysis system in place from the rudimentary to the most complex software and systems money can buy.

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Why Costing Isn’t Just the Most Important Thing, It’s the ONLY Thing Generally speaking, the depth and scope of the costing is relative to the size of the company – larger companies have more robust systems. That said, any size company must gather solid and representative data to properly account for what the product costs. COSTING 101 It is my pet peeve that some companies do not have any sort of cost system and no one including the owner truly knows what the product costs. Obviously, they know when their accountant totals things up for the year but that really ain’t getting it done.

purchased cost, labor rates and shipping. Others are indirect such as the cost of capital, overhead and utilities. These are just the tip of the iceberg. A company can spend an almost unlimited amount of money trying to nail down these costs that, in turn, add additional costs to be accounted for. It is incumbent upon the business owner to determine the degree of certainty that allows them the level of comfort to properly use the information.

In the most simplistic terms, for a company to show a profit, the product or service it provides must be sold for more than it costs. Trite but true. I’ve seen companies that literally toss a part into the air and can “tell” how much it costs or what the final selling price should be. Not too scientific and the few who used this “process” are out of business. Others spend thousands and thousands of dollars chasing down the minutest costs and then not even using the results. They set up massive standard cost systems that do not represent their actual costs and sell their parts or services at some arbitrary mark-up that may or may not even garner them any profit. They find out at the end of the month or year when the accounting snapshot is taken how well they have or have not done.

WHAT INFORMATION IS IMPORTANT? Simply stated, any cost that materially affects the total cost should be obtained. But, what is “material”? Does the cost of the trash pickup affect the cost? Yes, but probably not materially unless large amounts of trash are produced during the production or execution of the product or service. THE SERVICE INDUSTRY For service industries such as lawyers and accountants, the major costs involved will be salaries/labor hours, some incidental materials, overhead, out of pocket client advances, office space rental/utilities and possible issues with buyouts/pensions/profit sharing. There are certainly other costs but the question is “are they worth pursuing”?? It is doubtful but there are some offices that will try. To establish a cost for a service, it is a simple calculation based on the amount of time spent times the labor rate for the individual plus direct expenses that can be attributed to this particular service plus some allocation of the indirect costs usually based on labor hours/department or other relevant divisor for the costs.

You would think that it is easy to capture the costs that go into the production of a service or manufactured part. Costs, however, come in many flavors and types. Some are direct such as

THE MANUFACTURING INDUSTRY However, for manufacturers it is a bit more complex. While some of the same factors are involved such as labor rates, hours and overhead, there are numerous ways of allocating these costs. continued on page 32

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Shop Floor NEWS FROM THE FRONT LINES

Is the machinery you are buying OSHA compliant? Are you purchasing new or used equipment for your company? Does it comply with OSHA Standard General Machine Safeguards 29 CFR 1910.212? by JAMIE BEAUVAIS, SAFETY COORDINATOR, MICRO-TRONICS, INC.

Say your company purchases a new piece of equipment from a major catalog company thinking it was state-of-theart product with all required safety guards. Yes, it has a safety guard on the motor and pulley system; however, it was not a fullyenclosed safety guard. Under the OSHA safety rule, if moving machine parts have the potential to cause severe workplace injuries, such as crushed fingers or fyi: hands, amputations, burns, or Twenty-five blindness, you are required to states, Puerto Rico guard the area despite what the and the Virgin Islands manufacturer constructed. have OSHA-approved

State Plans - OSHA

When buying used equipment, check for outdated safety devices prior to purchase. These items may no longer be up to code. There is no statute that exempts your company if you buy unsafe machinery. You may want to check with your company safety manager or local OSHA Compliance Officer prior to purchasing any equipment. OSHA Standard General Machine Safeguards 29 CFR 1910.212 One or more methods of machine guarding must be provided to protect the operator and other employees in the machine area from hazards such as those created by point of operation, ingoing nip points, rotating parts, and flying chips and sparks. Examples of guarding methods are barrier guards, twohand tripping devices, and electronic safety devices. Guards must be affixed to the machine where possible and secured elsewhere if for any reason attachment to

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the machine is not possible. The guard must not act as an accident hazard in itself. Point of Operation “Point of Operation� is the area on a machine where work is actually performed on the material being processed. The point of operation of machines whose operation exposes an employee to injury must be guarded. The guarding device must be designed and constructed to prevent the operator from having any part of his body in the danger zone during the operating cycle. Special hand tools for placing and removing material must permit easy handling of material without the operator placing a hand in the danger zone. Such tools must not take the place of fixed guards and can be used only to supplement the protection provided. Note: Twenty-five states, Puerto Rico and the Virgin Islands have OSHA-approved State Plans and have adopted their own standards and enforcement policies. For the most part, these States adopt standards that are identical to Federal OSHA. However, some States have adopted different standards applicable to this topic or may have different enforcement policies.

JAMIE BEAUVAIS is Safety Coordinator at Micro-Tronics, Inc. Learn more at: www.osha.gov Reference: OSHA Standard General Machine Safeguards 29 CFR 1910.212


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

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WEBSITES THAT WORK FOR YOU

ATMA PRECISION 2012 ATMA BOARD OF DIRECTORS President DANTE FIERROS Nichols Precision

Arizona Chapter Website arizonatooling.org Arizona Commerce Authority -Job Training Grant Application azcommerce.com/workforce Arizona Department of Education azed.gov

Vice President DAVID LAIR Dynamic Machine & Fabricating Executive Director CHRIS MIGNELLA

Arizona Manufacturers Council azchamber.com/amc Arizona Manufacturing Apprentice Program AzMap.org or gnhenninger@azmap.org Arizona State University Mechanical & Manufacturing Engineering Technology poly.asu.edu/technology/mmet/ City of Phoenix – Community & Economic Development Program phoenix.gov/ECONDEV/index.html EVIT (East Valley Institute of Technology) evit.com GateWay Community College gatewaycc.edu

Trustee MARK WEATHERS Excaliber Precision Machining Secretary JOHN O’LEARY Arizona Industries for the Blind Treasurer GREG CHAMBERS Noranco Jet Processing BOARD MEMBERS Mark Travis Micro-Tronics, Inc. John Raycraft Arizona Precision Industrial

Greater Phoenix Chamber of Commerce phoenixchamber.com Maricopa Community Colleges maricopa.edu

Jeremy Lutringer Unique Machine & Tool Gary Watkins MarZee

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PrecisionNews

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U.S. Department of Labor dol.gov

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ATMA Ambassador Maxine Jones mjones14@cox.net Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association

NTMA - San Francisco Chapter sfbantma.org

20

Associate Member Liaison Kerry Vance Consolidated Resources, Inc.

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

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PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS REGULAR MEMBERS Hein Tran

3D Machine & Tools

480-329-8254

Jennifer Ayres

Phoenix Analysis & Design Tech.

480-813-4884

Dave Wright

Accuwright

480-892-4595

Steve Macias

Pivot Manufacturing

602-306-2923

Sal Kielbus

Aerospace Contacts, LLC

480-967-1025

James Buchanan

Powill Manufacturing & Eng, Inc.

623-780-4100

Chuck Eriksen

Allied Tool & Die Company, LLC

602-276-2439

Ilene Price

Precise Metal Products Co.

602-272-2625

John Raycraft

Arizona Precision Industrial, LLC

480-785-7474

Roy Stenger

Precision Aerospace

602-352-8658

Charles A. Van Horssen

Axian Technology, Inc.

623-580-0800

Tony Costabile

Precision Die & Stamping, Inc.

480-967-2038

John O’Leary

AZ Industries for the Blind

602-269-5131

Michael Dailey

Prescott Aerospace, Inc.

928-772-7605

Paul Bowman

B3 Precision, LLC

480-250-3366

Tyler Crouse

Pro Precision

602-353-0022

Kevin Burbas

B&B Tool, Inc

520-397-0436

Zach Wilsterman

Profile Tool & Engineering

480-894-1008

Jeff Buntin

Barnes Aerospace - Apex Mfg. Div.

602-305-8080

John Bloom

R & D Specialty/Manco

602-278-7700

Norela Harrington

Bent River Machine, Inc.

928-634-7568

Paul Shelton

Shelton Industries

520-408-8026

Eric Stroot

Bolt’s Metallizing

602-244-2432

Mark Willmering

Sonic Aerospace, Inc.

480-777-1789

Misty Curry

C & W Manufacturing

602-437-2929

Jeff Gaffney

Southwest Swiss Precision

602-438-4670

Keith Adams

C.G. Tech, Inc.

623-492-9400

Steven Yeary

Southwest Turbine, Inc.

602-278-7442

Greg Gaudet

CAD Tools Company, LLC

480-753-4290

Mike Gudin

Southwest Water Jet

480-306-7748

Joe Cassavant, Jr.

Cassavant Machining

602-437-4005

Ruben Cadena

State Industrial Products, Inc.

602-275-0990

Steve Schwartzkopf

Chips, Inc.

602-233-1335

Dennis Miller

Summit Precision, Inc.

602-268-3550

Ron Gilmore

Continental Precision, Inc.

602-278-4725

Scott Higginbotham

Sun Grinding LLC

602-238-9595

Darrel Lilly

Creative Metal Concepts

602-272-1110

Craig Berland

Systems 3, Inc.

480-894-2581

Allen Kiesel

Creative Precision West

623-587-9400

Karl Szanto

Tech Mold

480-968-8691

David Lair

Dynamic Machine & Fabricating

602-437-0339

Todd Aaronson

TMA Precsion Tube

623-221-4922

Diana Buchanon-Lovett

Eclipse Carbide, Inc.

480-214-3719

Jacque Cowin

Tram-Tek, Inc.

602-305-8100

Grant Evans

Evans Precision Machining, Inc.

623-581-6200

Walt Ahland

TriPlex, LLC

480-930-3493

Joseph J. Koenig

Exactitude, LLC

602-316-6957

Rick Lorenzen

Tri Star Design & Mfg.

480-345-1699

Mark Weathers

Excaliber Precision Machining

623-878-6800

Jeremy Lutringer

Unique Machine & Tool Co.

602-470-1911

Jeff Hull

Foresight Technologies

480-967-0080

Bill Ankrom

Vitron Manufacturing, Inc.

602-548-9661

Tim Malin

Helm Precision, Ltd.

602-275-2122

Robert L.Wagner

Wagner Engineering, Inc.

480-926-1761

Jeremy Schaulk

Hi-Tech Machning & Engineering

520-889-8325

Denise & Bob Wright

Wright Prototype

623-825-8671

Don Theriault

Industrial Tool Die & Engineering

520-745-8771

Bruce Treichler

Zircon Precision Products

480-967-8688

Joseph Sirochman

JPS Manufacturing

480-367-9540

Jeff Barth

JWB Manufacturing

480-967-4600

Jim Carpenter

Kimberly Gear & Spline, Inc.

602-437-3085

Don Kammerzell

K-zell Metals, Iinc.

602-232-5882

Matt Kalina

LAI International, Inc

480-348-5942

Ernest Apodaca

Layke, Inc.

602-272-2654

John Lewis

Lewis Aerospace

623-581-0764

Michael C. Majercak, Jr.

Majer Precision

480-777-8222

Edward Wenz

MarZee, Inc.

602-269-5801

Arle Rawlings

Mastercraft Mold, Inc.

602-484-4520

Paul Clark

Metal Spinning Solutions, Inc.

480-899-0939

Jeff Meade

Metalcraft

480-967-4889

Joe Tripi

Micropulse West

602-438-9770

Mark Travis

Micro-Tronics, Inc.

602-437-8995

Mark Lashinske

Modern Industries, Inc.

602-267-7248

Phillip LoCascio

National Aviation

480-966-1097

John Anglin

Nelson Engineering

602-273-7114

Dante Fierros

Nichols Precision

480-804-0593

Greg Chambers

Noranco Jet Processing

623-869-6749

John Maris

NorthStar/D-Velco

602-275-4406

Tom Osborn

Osborn Products, Inc.

623-587-0335

ATMA EVENTS IN SEPT/OCT 2012 Safety Team Meeting > 9/11 @ 11:30am (MicroTronics) Membership/Mktng & Program Mtng > 9/13 @ 4:00pm Fiesta Inn/Raintree Room 4:00pm - 5:30pm Board of Directors Mtng > 9/18 @ 4:00pm (MicroTronics) Member Appreciation and Dinner Meeting > 9/26 @ Airport Hilton 4:30-7:30pm Precision News Articles/Ads Due > 10/01 Luke Tour > 10/11 @ 2:00pm Membership/Mktng & Program Mtng > 10/18 @ 4:00pm Fiesta Inn/Raintree Room 4:00pm - 5:30pm NTMA Conference > 10/22 Board of Directors Mtng > 10/30 @ 4:00pm (MicroTronics) Save the Date > 12/05 Holiday Dinner @ St. Mary’s Food Bank For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

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MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS!

PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS!

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

MEMBER LISTINGS

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

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

ASSOCIATE MEMBERS

5/12 Combined Membership, Marketing & Program

Linda Daly

A 2 Z Metalworker

602.412.7696

Richard Short

Adams Machinery

480.968.3711

5/17 Board of Directors Meeting 11:30-1:00 Meeting at Foresight11:30-1:00 Technologies,at Micro-Tronics, 2905 S. Potter, Tempe, 85282 1301 W. Geneva, Tempe Board of Directors Meeting 5:00-8:00pm 11:30-1:00 at at Phoenix 5/255/17 General Dinner Meeting Micro-Tronics, S. Potter, Tempe, 85282 Airport Hilton,2905 2435 S. 47th Street, Phoenix

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

Greg Whelan

Arizona CNC Equipment

480.615.6353

John Anderson

ATS Industrial

602.276.7707

Vincent Thelander

Bank of America Merrill Lynch

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

Howie Basuk

Barry Metals

602.484.7186

Joe Ciancio

Bralco

602.252.1918

Marc Bissell

CadCam/Geometric

480.222.2242

James Burriss

ChemResearch Co., Inc.

602.288.0394 MAY

Kerry Vance

Consolidated Resources

623.931.5009 6/29 Standards) General Meeting AirportDinner Hilton, 2435 S. 47th5:00-8:00pm Street, Phoenixat Phoenix 5/11 Safety Meeting (General Safety 11:30

Cindy Stewart

Creative Promotions

2435 S. 47th Street, Phoenix at Phoenix Heat Treat, 2450 W. Airport Mohave,Hilton, Phoenix 480.839.9511

Lou Gallo

DDi - Solidworks

5/12 Combined Membership, Marketing & Program 602.241.0900

Randy Flores

D&R Machinery

480.775.6462 1301 W. Geneva, Tempe

Steve Warner

EMJ Metals

602.272.0461 5/17 Board of Directors Meeting 11:30-1:00 at

Mickey Gartman

Gartman Technical Services, Inc.

Micro-Tronics, 2905 S. Potter, Tempe, 85282 602.788.8121

Bill Herbst

Global SuperAbrasives

5/25 General Dinner Meeting 5:00-8:00pm at Phoenix 413.231.6530

Jackie Bergman

HUB International

602.749.4190

Anna-Lena Seedhill

IFLEX Resource Management

JUNE 480.429.4508

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

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

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

MANY THANKS TO OUR 2012 ATMA VALUED SPONSORS: Meeting 11:30-1:00 at Foresight Technologies,

Airport Hilton, 2435 S. 47th Street, Phoenix

David Cohen

Industrial Metal Supply

6/08 Safety Meeting (General Safety Standards) 11:30 602.454.1500 at Leavitt Group, 919 N. 1st St., Phoenix

Tim Kloenne

Klontech Industrial Sales

480.948.1871

Barry Armstrong

L.A. Specialties

602.269.7612 Meeting 11:30-1:00 at Foresight Technologies,

1301 W. Geneva, Tempe 480.615.2300

6/09 Combined Membership, Marketing & Program

David Hopkins

CliftonLarsonAllen, LLP

Bob Von Fleckinger

Leavitt Group

6/21 Board of Directors Meeting 11:30-1:00 at 602.264.0566

Jeff Trimble

Magnum Precision Machines

602.431.8300

David Gundersen

Makino, Inc.

Michael Biesk

Marshall Tool

602.269.6295

Thomas Moore

Moore Tool & Equipment

602.455.8904

Glen Zachman

North-South Machinery

602.466.2556

Pete Hushek

Phoenix Heat Treating

602.258.7751

Scott Sherman

Phoenix Metal Trading

602.257.4660

Jim Perlow

Quality Advisory Services

602.910.1510

Arlene Helt

Ryerson-Phoenix

602.455.3386

Ron Swartzbaugh

S&S Machinery

602.714.0116

Jane Rousculp

Samuel Aerospace Metals

602.721.0176

Frank Encinas

Semiray

602.275.1917

Russ Kurzawski

Star Metal Fluids LLC

602.256.2092

David Senkfor

Top Gun Consulting

602.510.5998

John Drain

Tornquist Machinery Co.

602.470.0334

Greg Burke

TW Metals

602.864.0014

Doug Pratt

Ulbrich Stainless Steel & Spec.

203.234.3464

Daniel Franks

Wells Fargo Bank

602.522.7805

ARIZONA SPONSOR MEMBERS Greg Kolton

Bank of Arizona

Jeff Anderson

National Bank of Arizona

623.872.2546

Jackie Bergman

HUB International

602.749.4190

480.459.2826

501.952.9391

Bennet Cromer

Federated Insurance

Jon Gale

CliftonLarsonAllen, LLP

480.615.2300

Ward Hickey

Heritage Bank

602.852.3462

David Pettycrew

Republic Indemnity

602.242.4602

Steve Piotter

MSC Industrial Tool

480.755.0415

PrecisionNews

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TO OUR 2011 ATMA MANY THAN VALUED SPONSORS!

TO OUR 2011 ATM VALUED SPONSOR

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

6/29 General Dinner Meeting 5:00-8:00pm at Phoenix 602.228.0347 Airport Hilton, 2435 S. 47th Street, Phoenix

22

MANY THANKS

september/october 2012

MANY THANKS TO OUR 2011 ATMA VALUED SPONSORS!


Welcome! NEW REGULAR AND ASSOCIATE MEMBERS

Creative Metal Concepts Mr. Darryl Lilly 4229 N. 40th Avenue Phoenix, AZ 85019 602.272.1110 sales@fastarchofamerica.com www.fastarchofamerica.com (New Regular Member)

Global SuperAbrasives, LLC Mr. Bill Herbst 1835 E. 6th St, #23 Tempe, AZ 85281 413.231.6530 cell 888.586.8783 office Bill@globalsuperabrasives.com www.globalsuperabrasives.com (New Associate Member)

Bralco Metals Mr. Joe Ciancio 929 E. Jackson Street Phoenix, AZ 85034 602.252.1918 office 602.252.7813 fax JCiancio@bralco.com www.bralco.com

Bank of America Merrill Lynch Mr. Vince Thelander 201 W. Washington St. Phoenix, AZ 85004 602.523.4181 vincent.thelander_iii@baml.com www.bankofamerica.com (Reinstated Associate Member)

(New Associate Member)

PrecisionNews

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

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A CUT ABOVE.

///////////////////////////////////////////////// We have the capabilities and the skills to get any job done.

CNC Machining 5-Axis Machining Multi-Spindle Machining Lights Out Machining Blade and Blisk Machining Electro-Discharge Machining Laser Machining Waterjet Machining Sheet Metal Fabrication Gun Drilling Jig Bore/Jig Grind Hydroforming Cylindrical Grinding Surface Grinding Curvic Grinding Tool Grinding Thread Grinding Creep Feed Grinding Chemical Milling

YOUR NEW TOOL OF THE TRADE. PRECISION NEWS READERS ARE KEY DECISION MAKERS THAT YOU AS AN ADVERTISER WANT TO REACH. OUR READERS WANT AN EDGE IN A CONSTANTLY EVOLVING INDUSTRY AND THEY FIND IT IN PRECISION NEWS!

Let your ad be a call to action! Contact Precision News today for more details at: executivedirector@arizonatooling.org

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Swiss Turning Micro-Machining Honeycomb Seals Tube Bending High Speed Stamping Sand Casting Investment Casting Molded Rubber Plastic Injection Molding Rapid Prototyping Balancing Electromechanical Assembly Clean Room Assembly Wire Harness Production MIG/TIG Welding Resistance Welding Hydrogen Brazing Vacuum Brazing Laser Welding

Electron Beam Welding Heat Treating Vacuum Heat Treat Nitriding Shot Peening Cryogenic Processing Plasma Spray Coating HVOF Coating Diffused Aluminide Coating Electroless Nickel Plating Hard Chrome Plating Cadmium Plating Silver Plating Copper Plating Anodizing Phosphating Black Oxide Dri-Lube Painting

/

////////////////////////////////////////////////////////////////////////////////////////////////////////////// Arizona Tooling & Machining Association

Contact the Arizona Tooling and Machining Association and discover how you can put work unique skill-set to work in Arizona and give your company the Competive Edge.

ATMA

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

PRECISION

executivedirector@arizonatooling.org

september/october 2012

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Feature Story // PrecisionNews

Why Costing Isn’t Just the Most Important Thing, It’s the ONLY Thing continued from page 17

Sometimes, a company will allocate them based on the number of pieces or parts produced or sometimes based on labor or machine hours used during the production process. Other methods include the use of a “standard” cost regardless of the actual cost involved. As long as the standard cost is monitored and closely matches the actual costs, this method can be used. However, some testing of the system is critical to keeping the numbers “honest”. SOFTWARE Making matters even more complicated are the plethora of software out in the world that these costs are coagulated with. Most are tied into the general accounting systems of the companies and are probably tied to the production scheduling system as well. What this means is that some pre-set and possibly imperfect allocation methods may be used that may or may not be appropriate for a particular company. I have seen companies implement what may seem to be the “best” software only to find that THEY must change their methods of operation to conform to the software. That’s about the time I try to find the plug to pull on the computer. THE BEST ADVICE Where does this leave a fledgling company in terms of what method, process or tools to use to calculate costs?? My best advice is to consult with a competent accountant who has experience with a similar type company. There may be some experimentation involved in terms of development and execution of the system. However, there will come a time when quality data is being collected and recorded that covers the greatest part of the true cost of the item or service. PRICING Once the costs have been collected, the task of pricing begins. Pricing can be based on a number of factors only one of which is the actual costs as they have been recorded. Market pricing, profit margin basis or strict mark-up factors may be used to determine the final pricing of a particular service or item. Others may rely upon “seat of the pants” instinct to price parts. Not too scientific, but it can work if the person is experienced. MARKET BASED Market based pricing disregards other factors and relies upon “what the market will bear” in terms of the final pricing. Obviously, this kind of pricing can be dangerous to maintenance of profit margins as these prices are based on other companies cost not yours. If this type of pricing is used, one must be extremely cognizant of the actual cost you are booking. Hopefully, the profit margin is sufficient and satisfactory to you. The other problem is that if it is not or you would like to raise the price, it is extremely difficult or impossible to do so.

24

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PROFIT MARGIN BASED Profit margin pricing basically works by you setting the amount of profit margin you want and then adding this number to the cost to calculate the final price. The basis for the profit margin is yours to decide but is usually based on the knowing all the costs and then just adding in the margin you want. Clearly, this is a simple process but can have the effect of pricing yourself out of the market by adding in too much margin.

In the end, pricing will be dictated by a number of factors that will always include the “market based” price.

MARK-UP BASED Using a basic mark-up method, the various costs along the way are marked up by possibly different amounts taking into account different factors for each of the costs. The labor could be marked up one amount, machine hours by another and the rest of the costs by other amounts. The mark-up can be the same as well. This method allows the finetuning of the pricing taking into account factors that affect each of the components. You can choose to slice and dice the numbers any number of ways to achieve the final price. This is the most complex method but also allows the most flexibility with regards to individual cost drivers. Costing Is The ONLY THING! Now that you know what to look for, you must continue to keep the gathering of costs in the forefront of your activities to make cost collection “the only thing” that must occur correctly every single day to maximize your profitability. CONCLUSION In the end, pricing will be dictated by a number of factors that will always include the “market based” price. However and hopefully, your particular company will be selling not based on price alone but also with quality and delivery considered. Next time you look at a job or service at the end of the production cycle, take a hard look at the costs and ask yourself if ALL of the “material” costs have been considered and that the net profit you are seeing is real.

DAVID SENKFOR is the the owner of TopGun Consulting. He can be reached at 602.510.5998 or david@topgunconsulting.net Learn more at: www.topgunconsulting.net


ATMA_0202_FINAL_Layout 1 6/18/11 7:05 AM Page 27

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PrecisionNews // NTMA -SAN DIEGO CHAPTER

MEMBER LISTINGS

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

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

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

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

26

PrecisionNews

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REGULAR MEMBERS Todd C. Lawson

Academy Machine Products

760.439.0109

Jodi Deane

Advanced Maching and Tooling

858.486.9050

Steve Doda*

Aerotek Commercial Staffing

619.278.3014

David Stella*

Aerotek Commercial Staffing

619.278.3014

Sean Tillett

Alphatec Spine

760.494.6774

Peter Neville

B&H Tool Company Inc.

800.272.8878

Lyle Anderson

C&H Machine and EDM Services

760.746.6459

Margarita Brear

Compucraft Industries, Inc.

619.448.0787

Michael J. Brown

Computer Integrated Mach., Inc.

619.596.9246

Melinda Coldwell

Cornerstone Machining, Inc.

760.727.5228

Erich Wilms

Diversified Tool & Die

760.598.9100

Alex Fima

Directed Mfg.

512.355.1360

Donovan Weber

Forecast 3D

760.929.9380

Andrew Allen

Henry Machine, Inc.

760.744.8482

Jim Piel

J I Machine Company, Inc.

858.695.1787

Joel Schuman

JS Manufacturing

760.940.1322

Heather Russell

K-Tech Machine, Inc.

760.471.9262

Cliff Manzke

Manzke Machine, Inc.

760.504.6875

Russell Wells Sr.

MarLee Manufacturing, Inc.

909.390.3222

Tony Martindale

Martindale Manufacturing Co.

760.744.3078

Mark Rottele

Roettele Industries

909.606.8252

Scott Cormony

Waterjet West, Inc.

760.471.2600

Hernan Luis y Prado

Workshops for Warriors

619.550.1620

Steve Grangetto

5th Axis

858.505.0432

*National Associate Members

FOUNDING PARTNERS Glenn Van Noy

Champion Risk and Insurance Services

760.419.1393

Dave Stanton

Digital Dimensions, Inc.

858.279.2557

Gail Houser

National Tooling & Machining Assoc.

602.758.6912

Mark Selway

Selway Machine Tool Company

888.735.9290

NTMA San Diego Chapter UPCOMING EVENTS Manufacturing Issues and Legislation Update September 18th @ 5:30pm Presented by Omar Nashashibi from the Franklin Partnership and Metal Working Advocate. Location to be announced.

Open Forum Discussion New pension and group insurance rules and how they will affect your business. October 25th @ 5:30pm Presented by Elizabeth Long and Noel Trias.


PrecisionNews // NTMA INITIATIVES

How Can NTMA Help You Grow Your Business? Profitability grows when revenue increases and costs are controlled. NTMA can help you with both. Though most of our members are small- to medium-sized companies, the power of the association can help you do business like a large corporation. REVENUE GROWTH • We organize regular business-to-business purchasing fairs, designed to operate like speed dating for suppliers. We invite 100 or more buyers from large companies and then give you opportunities to briefly pitch your products and services. As a result attendees leave with good contacts and solid leads, leading to increased business. Companies have been awarded millions of dollars in contracts as a direct result of these events. • We offer a program called Members First, designed to help members turn to each other to meet needs. Perhaps your next customer is an NTMA peer? Or perhaps an NTMA member would make an excellent vendor for you? Members First helps make the connections. • By interacting with fellow members in your local chapter, you may discover new business opportunities, or ways to work together with peers to increase business or market yourselves cooperatively. COST CONTROL • We offer discount programs with several large suppliers (including Grainger, UPS and Yellow Freight), allowing you to leverage NTMA’s combined buying power for your own benefit. • Our business insurance program keeps more money in your pocket by offering a necessary product in a low-overhead, notfor-profit manner. Our decision resources allow you to be smarter about how you use your resources, resulting in greater efficiencies and lower costs. Learn more at: www.ntma.org/initiatives

NTMA UPCOMING EVENTS NTMA Purchasing Fair > October 22-23, 2012 Location: Nashville, TN

WATER-JET CUTTING Providing...Tighter Tolerances / Minimal Machining Table Capacity of 120” Wide x 360” Long Up to 6” Thick Cutting Capacity

HIGH DEFINITION PLASMA BURNING

CONVENTIONAL PLASMA BURNING

Up to 5/8” thk Stainless & 1 1/4” thk Carbon Table Capacity of 120” Wide x 390” Long

Up to 6” Thickness Table Capacity of 132” Wide x 564” Long

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

Range of Sizes...

NTMA 2012 Fall Conference > October 24-28, 2012 Location: Nashville, TN Visit: www.ntma.org

THK: 3/16” to 6” WIDTH: 48” to 120” LENGTHS: 96” to 528”

Value Added Services... LASER CUTTING, POLISHING, GRINDING, HEAT TREATING, SAW CUTTING, FORMING, ROLLING, SHEARING, BEVELING

NTMA - Manufacturing America’s Future Call: 888.904.6727

1-888-726-6385

samuelplate@samuel.com

www.samuel.com A2Z METALWORKER

september/october 2012

arizonatooling.org

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Providing precision machining and fabricating of diverse parts and assemblies Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries Our Quality System is AS9100 B Compliant Equipment Capacities range up to HS-4R HAAS 4-Axis Horizontal Milling Center @ 150” x 66” x 48” and Ikegai VTL CNC Lathe @ Ø 55” Diameter Centerless Grinding Capacities ranges from Ø1/8” up to Ø1-1/2” in Lengths up to 14’ long and Ø1-1/2” to Ø 3” RD With Weight Maximum of 50# Dynamic Machine and Fabrication Corp. and Dynamic Centerless Grinding 3845 E. Winslow Ave., Phoenix, AZ 85040

NORTH TEXAS CHAPTER 2012 BOARD OF DIRECTORS President TODD ELLARD Manda Machine Company Vice President JEFF SPENCER Clay Precision Treasurer BARRON SMITH R.W. Smith Company Chapter Executive LISA ELLARD

(602) 437-0339 (602) 437-8947 fax

www.

dynamic-machine.com

Trustee WAYNE APPLEGATE Applegate EDM

BOARD MEMBERS Mike Berdan BE Technologies Frank Burch Southern Machine Works

THANKS

Bill Walter Ellison Technologies Micah Embrey CNC Precision/Shamrock-Bolt

2011 ATMA SPONSORS!

Don Halsey Halsey Manufacturing Ray Jones MWI, Inc. Pat McCurley Midlothian Insurance Karla Chandler Education Liason

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

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PrecisionNews // NTMA -NORTH TEXAS CHAPTER

MEMBER LISTINGS REGULAR MEMBERS

ASSOCIATE MEMBERS

Vincente Chan

Aeroweld Technologies, Inc.

972.247.1189

Larry Ellison

AJR Metalworks, Inc.

214.352.3766

Wade Whistler

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

214.678.9114

Tommy Thompson

Bodic Industries

972.840.1015

Wayne Applegate

Applegate EDM, Inc.

972.488.8997

Lewis Lance

Bodycote Heat Treat

817.265.5878

Tony Woodall

AST Waterjet

972.554.0383

Rick Blair

Brook Anco Corporation

585.475.9570

Steve Ingersoll

Bailey Tool & Manufacturing

972.974.8892

Craig van Hamersveld

Campat Machine Tool, Inc.

972.424.4095

Michael Berdan

BE-Technologies, Ltd.

972.242.1853

Claudia Pautz

Castle Metals

972.339.5000

Christi Cameron

Cameron Machine Shop, Inc.

972.235.8876

Chris Simms

Champion Cutting Tool

516.536.8200

Jeff R. Spencer

Clay Precision, Ltd.

903.891.9022

Frank Vance

Frank J Vance

972.255.3925

Joseph Lodor

Commerce Grinding Company, Inc.

214.651.1977

Norm Williamson

H & O Die Supply, Inc.

214.630.6660

Robert McNamara

Davis Machine & Manufacturing

817.261.7362

Mike Johns

Haas Factory Outlet

972.231.2802

Charles Gilbert

DNS Tool Cutter Grinding, LLC

972.241.5271

Stephen Draper

Hartwig, Inc. - Texas

972.790.8200

Dena Kupiec

Elijah Tooling, Inc,

940.591.1340

Matt Curtis

Hillary Machinery, Inc.

972.578.1515

David Ellis

Ellis Tool & Machine, Inc.

903.546.6540

Rod Zimmerman

Iscar Metals, Inc.

817.258.3200

Rudy D. Kobus

Expert Tool & Machine, Inc.

972.241.5353

Randy Joyce

Joyce Engraving Company, Inc.

214.638.1262

Monte Titus

F& R Machine & Repair, Inc.

214.631.4946

Curtis Dahmen

Kaeser Compressors, Inc.

972.245.9611

Gary Fore

Fore Machine Company, Inc.

817.834.6251

Mark S. Holly

Machinists Tools & Supplies

214.631.9390

Mike Lee

Fort Worth Centerless Grinding, Inc.

817.293.6787

Leland McDowell

McDowell Machinery & Supply Co.

214.353.0410

Larry Borowski

Greenslade and Company, Inc.

817.870.8888

Pat McCurley

Midlothian Insurance Agency

972.723.5171

Oscar Guzman

Guzman Manufacturing

972.475.3003

Nicki Smith

MSC Industrial Supply

817.590.2637

David L. Hodgdon

H. H. Mercer, Inc.

972.289.1911

Ray Jones

MWI Inc. / Southwest Division

972.247.3083

Don Halsey, Jr.

Halsey Engineering & Mfg., Inc.

940.566.3306

Mike Chadick

North Texas Precision Instrument

817.589.0011

Cory Trosper

K & D Tool & Die, Inc.

972.463.4534

Reed Hunt

Reed Hunt Services, Inc.

817.261.4432

Keith Hutchinson

Lancaster Machine Shop

972.227.2868

Scott Devanna

SB Specialty metals

800.365.1168

Scott Cody

LSC Precision, Inc.

940.482.9700

Bob Severance

Severance Brothers

972.660.7000

Sammy Maddox

Maddox Metal Works, Inc.

214.333.2311

Alan VanHoozer

Top Tooling of Dallas, Inc.

972.278.8300

Todd Ellard

Manda Machine Company, Inc.

214.352.5946

Tom Beurkle

Traxis Manufacturing

512.383.0089

David Evans

Manek Equipment, Inc.

903.439.6414

Glenn Wise

Wise Machinery, LLC

817.905.9473

Rodie Woodard

Maximum Industries, Inc.

972.501.9990

Woodrow W. Thompson

Metal Detail, Inc.

214.330.7757

MANY THANKS

Allen Meyer

Meyer Enterprises

972.353.9791

Eddie Steiner, Jr.

O E M Industries, Inc.

214.330.7271

TO OUR NTMA-NORTH TEXAS SPONSORS:

Morris Padgett

Padgett Machine Tools, Inc.

254.865.9772

Troy Paulus

Paulus Precision Machine, Inc.

940.566.5600

Joe O’Dell

Plano Machine & Instrument, Inc.

940.665.2814

Bill Gilliland

Quality Tool

972.221.0537

Matt Harrell

Quickturn Technology, Inc.

469.643.5010

Barron Smith

R. W. Smith Company, Inc.

214.748.1699

Mike Embrey

Red Rock Industries

940.665.0281

Gary Embrey

Shamrock Precision

972.241.3931

Frank Burch

Southern Machine Works

580.255.6525

John Anselmi

Sunbelt Plastics Inc.

972.335.4100

Marshall B. Taylor

T & K Machine, Inc.

903.785.5574

Jake Bailey

Tower Extrusions Fabrication

940.564.5681

BILLOR MACH INE TOOL SERVIC E

NTMA-NORTH TEXAS MEETINGS & EVENTS Thanks to Our January- August 2012 General Meeting Hosts: Manda Machine Co., Ellison Technologies, Advanced Technology Complex, Shamrock Precision, Southern Machine Works, Applegate EDM Upcoming Events: September 27, 2012 – Annual Golf Tournament October 18, 2012 – DFW Movers November 15, 2012 - TBD september/october 2012

arizonatooling.org

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PrecisionNews // NTMA -SAN FRANCISCO CHAPTER

SAN FRANCISCO

MEMBER LISTINGS

CHAPTER

REGULAR MEMBERS 2012 BOARD OF DIRECTORS President DAVE BUTTNER ThermoFusion Vice President/Treasurer MICHELLE MYHRE R.M. Machining, Inc. Education Director DON CASTILLO FM Industries Membership Director PAT HAYES NORM FINK Communications NILS KJELL

OUR MISSION “Our mission is the advancement of machining and manufacturing businesses in the Bay Area, through collective effort and membership alliances.” NTMA - San Francisco Bay Area 950 Terminal Way San Carlos , CA 94070 Phone: 510.782.7755 sfbantma.org

UPCOMING EVENTS NTMA - San Francisco Bay Area Manufacturing Issues and Legislation Update September 20th @ 5:30pm Presented by Omar Nashashibi from the Franklin Partnership and Metal Working Advocate. Selway Machine Tool, Union City Storm Water Permit Presentation October 18th @ 5:30pm Presented by James Simonelli, President, CA Metals Coalition This new regulation will affect every machine shop in the state. Selway Machine Tool, Union City

Jimmy Kim

3D Access Industries

510.668.1248

Ron Wegstein

Advanced Grinding, Inc.

510.536.3465

Tim Green

All Weld Machine & Fabrication Co. 408.946.5890

Fred Matter

Alloy Metal Products

925.371.1234

Robert P. Dathe

Benda Tool & Model Works, Inc.

510.741.3170

Jim Deemer

California Brazing

510.284.0283

Tony Castruccio

Custom Gear & Machine

925.455.9985

Dan McEachern

Dan McEachern Company

510.532.8228

Frank Dommen

Die & Tool Products Inc.

415.822.2888

Felix Q. Oramas, Jr.

E R C Concepts Company, Inc.

408.734.5345

Don Castillo

FM Industries, Inc.

510.668.1900

Alan Kalman

Kalman Manufacturing

408.776.7664

DeAnna Godfrey

McNeal Enterprises, Inc.

408.922.7290

Karen Myhre

R.M. Machining, Inc.

650.591.4178

Mark Serpa

Silicon Valley Manufacturing

510.791.9450

David J. Buttner

Thermo-Fusion, Inc.

510.782.7755

Doug Wright

True-Tech Corporation

510.353.1000

Bruce Tschida

Tschida Engineering, Inc.

707.224.4482

Dane Madsen

West Valley Precision, Inc.

408.519.5959

Ken Fusselman

Perry Tool & Research Inc.

510.782.9226

Welcome! SAN FRANCISCO NEW MEMBERS

California Brazing

True-Tech Corporation

37955 Central Court Newark, CA 94560 Phone: 510.742.7114

4050 Technology Place Fremont, CA 94538 Phone: 510.353.1000

Jim Deemer, Machine Shop Manager jimd@californiabrazing.com

Doug Wright, Executive Vice President dwright@true-tech.com

YOUR NEW TOOL OF THE TRADE.

PrecisionNews

TM

Haas HTECH Conference October 27th @ 7:30am - 4:30pm Laney College, Oakland Visit www.HTECNetwork.org

30

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

arizonatooling.org


 

• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless,Served: aluminum, Industries plastics and exotics • Automotive • Aerospace • 8A Certified, Viet•Nam Vet, • Medical Firearms Minority Owned Small Business • Dept of Defense • Electronics • Eager to provide you with quality performance quick responses 2440 Cades Way,and Vista, California 92081 phone: 760.727.5228 fax: 760.727.0799

Contact Nichols at 480-804-0593 www.nicholsprecision.com www.cornerstonecnc.com

Manufactured with Pride in America!  

www.SunGrindingUSA.com

For All Your Grinding Needs!

We have the largest centerless grinder in the state!

Blanchard - Our 60 inch chuck will cut stock quickly and allows us to grind parts up to 72” diagonally.

Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!

Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years. We are the leading surface grinding shop in Arizona. Family owned and operated. info@sungrindingusa.com / 522 E. Buckeye Rd. Phoenix, AZ. 85004

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Feature Story //

NTMA EXCLUSIVE

Concentrations– AGame of Risk

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continued from page 13

There are many reasons why concentrations exist in a business and many are a complement to how well you perform in your core competency. However, at the end of the day, they still create risk and need to be managed. SO HOW DO YOU PLAY THE GAME? What can you do today to help combat the risk of concentrations? It’s important to recognize that minimizing concentrations is a long-term journey. Start by establishing a long-term goal to reduce your riskiest concentrations, and then begin to migrate in that direction. Just as in the game of Risk, you don’t leap to a strategic target; you start at the core of your strength and move towards the goal one step at a time. One of the first steps towards diversification is to broaden the self-imposed definition of your business. For example: • Today: XYZ is a precision machine shop focused on providing high-tolerance products in low volumes to the aerospace industry. • Future: XYZ is a contract manufacturer focused on being a full-service provider of small, precision products to diversified OEM’s. We specialize in meeting stringent quality system requirements. The next step is to identify and focus on the concentrations you have. • Industry concentrations – Understand why you are so critical to the customers in that industry – what is it (beyond the parts you make) that they value? Is it your responsiveness and ability to meet tight delivery windows? Is it your supply chain management capabilities? Your ability to provide design for manufacturability that enhances quality or reduces cost? When you begin to evaluate these factors, you begin to see how relevant those capabilities are in many industries beyond the ones you serve today. Another option is to enter a new industry or market through acquisition. Even a very small acquisition can diversify a business and improve its overall health and sustainability. If your Company is in a healthy place to make an acquisition, this might be a good way to expand your business and start reducing your concentrations.

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

• Customer concentrations – Who are similar customers (or competitors) to your largest customer that you are not serving today? Chances are, if your key customer values your approach other customers with similar needs will as well.

THIS ISSU E: Your

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TM

• Product concentrations – Are you serving only one component of your customers’ machined parts needs and letting competitors handle the rest? In an age of supply chain consolidation, this is a dangerous game. Take a second look at the economic impact of taking on that simpler, higher volume work. You will not only reduce part / product concentrations but you may dramatically improve profitability as well.

TECHNOLO GY . BUSIN ESS . EDUC AT

U.S. Manufact uring:

LEADIN RECOVEGRTYHE

Our industry leads the way domestic use forward manu and export and factur the jobs it takes ing products for to produce them

p.14

While success in business doesn’t mean world domination, building a sustainable company will certainly be a rewarding venture. Being diversified and flexible in who you work with and the markets you serve will position you well in the game of business.

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

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ION . EVEN . TS DIREC TORY

SPECIAL

RESET ISSU E!

PLUS THE 800-lb

GORILLA:

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

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


Edge Factor’s ultimate goal: To revolutionize the stereotype of manufacturing as a “dark and dirty” industry to one that is filled with extreme technology, advanced innovations and modern, exhilarating careers for the next generation.

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P RO U D

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Precision News September/October 2012