Canadian Metalworking June 2014

June 2014 • www.canadianmetalworking.com

Serving the Canadian Metalworking Industry Since 1905

Small, Medium, Engaged

Winning SMEs across Canada

CUTTING TOOL INVENTORY SYSTEMS UNDERSTANDING TOLERANCE STACK PM 40069240

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Aerospace component solutions Difficult materials, complex shapes, exact specifications, higher production rates and tighter timelines are some of the many factors which make manufacturing aerospace components so challenging.

Whatever material you are machining - we can support you with comprehensive component solutions including tools, services and process knowledge.

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NEW SPEEDIO

Elliott Matsuura Canada Inc. 2120 Buckingham Road Oakville, Ontario, L6H 5X2 Tel: 905-829-2211 sales@elliottmachinery.com www. elliottmachinery.com

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A LOOK INSIDE Vol. 109 | No. 5 | June 2014 | www.canadianmetalworking.com

SPECIAL ISSUE

Small, Medium, Engaged: Metalworking SMEs in Canada

FEATURES HOW ONE ORGANIZATION IS FIGHTING THE SKILLS GAP............................................................... 30 Vets are an untapped resource

THE EXPORT IMPERATIVE................................................. 36 SMEs need to export for long term growth. But how?

30

THE WEST COAST WAY..................................................... 44 Metalcraft Technologies forms sheet for the world

RADICAL TORQUE TOOLS................................................ 50 New World Technologies manufactures tools with a twist

SIMPLE AS AN ATM........................................................... 56 Effective computerized tool dispensing

CUTTING TOOL INVENTORY COSTS................................. 60

44

Software addresses the problem

WORLD CRUISERS............................................................ 62 Kanter Marine creates vessels for a demanding clientele

BUILDING A BOOM TOWN................................................ 70 Glenmore Fabricators makes structural steel for big projects “A LOOK INSIDE”, continues on page 8

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Amada_4-2

FEATURES cont’d TWO SKILLED SIBLINGS................................................... 74

70

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At A&R Machining, brothers build the business

WHEN THINGS STACK UP................................................. 78 Is tolerance stack always a worst-case scenario?

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AMPHIBIOUS AMBITIONS.................................................. 82 Normrock Industries builds innovative dredging machines

A DIFFERENT KIND OF SHOP............................................ 86 Mitacor Industries machines with advanced engineering support

SMALL PARTS, COMPLEX CONFIGURATIONS.................. 90 D-M Precision has cut to close tolerances for over 50 years

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EXPERTISE DRIVES EXPANSION....................................... 94 Thomas Wire Die builds for specialty, precision applications

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DEPARTMENTS

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View From the Floor..........................................................10

Ken Hurwitz on Finance....................................................27

News.................................................................................12

Welding News....................................................................68

Business of Welding..........................................................25

By The Numbers................................................................98

On the cover: Rick Sands, Machinist, Thomas Wire Die Ltd., Burlington, Ontario. Story page 94

Earlier this year Canadian Metalworking partnered with Makino to launch a new section on our website called the “Productivity Centre”. The goal of the new addition is to give our readers a place where they can find stories and case studies about shop owners who are finding new and unique ways to improve their business. Visit us online at: www.canadianmetalworking.com to find out more, or subscribe to our weekly Machine Shop newsletter to keep up to date with the new stories and videos as they appear!

Am digita

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And don’t forget to follow along and engage with us on social media – look for us on Twitter, Google+, and Facebook!

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If you have a question or a comment about our website or the new Productivity Centre, feel free to send me an email at nhealey@canadianmetalworking.com.

I’d love to hear from you!

8 | JUNE 2014 | www.canadianmetalworking.com

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Gran

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Reh Abdulla, General Manager (left) and Feroz Abdulla, Production/Lean Manager of Metalcraft Technology Inc.

“We’ve increased productivity by more than 30% while reducing lead times, setup, scrap and overall costs.”

— Feroz Abdulla, Production/Lean Manager Metalcraft Technology Inc.

The Power of Integrated Technology and Automated Processing.

With 220 punches and 440 dies, the PDC ensures that the right tool is always available.

www.amada.ca

Amada’s networked machines and digital technology enable Metalcraft to provide fully integrated and highly-precise bending, punching and laser cutting.

Amada Canada, Ltd. 885 Avenue Georges Cros, Granby, Quebec, Canada J2J 1E8

800-363-1220 2345 Argentia Road, Unit #101 Mississauga, ON L5N 8K4

800-561-4578

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Since 1997, Metalcraft Technology Inc. in Coquitlam, BC has been a leading provider of custom sheet metal products for a wide range of industries.

Founded by Azim Abdulla, the company operations are now managed by second generation family members Reh Abdulla, General Manager and Feroz Abdulla, Production/Lean Manager. Committed to uncompromising quality and lean manufacturing, Metalcraft partnered with Amada. After an in-depth analysis of Metalcraft’s specific manufacturing challenges, Amada provided the optimal solution.

Amada’s solution included the EML 3610 NT punch/laser combination machine equipped with an automated load/unload system and a single-part picking machine. To maximize machine utilization, the EML is also equipped with a PDC automated tool changer. Reflecting on the purchase, Feroz Abdulla states, “ The EML is a model of efficiency and productivity allowing us to run 24/7 without operator intervention.” The EML provides fully automated production of complex parts (including nested sheets with a large variety of components) while eliminating manual tool changes.

Amada’s integrated, automated solution enabled Metalcraft to: • Reduce Operating Costs (The EML’s energy-efficient, servoelectric design eliminates the need for hydraulics and delivers up to 50% cost reduction over conventional turret punch presses.

Time-consuming and costly manual tool changes have been eliminated by automated precision).

• Expand Capabilities (Capable of handling 5' x 10' fully-nested sheets without repositioning, the EML combines the punching, forming and tapping power of Amada’s innovative 33-ton Electric Motor (EM) turret punch press with the unlimited shapecutting capabilities of a laser).

• Maximize Efficiency (Equipped with TK/ASR material handling options, enables the EML to cost-effectively produce smaller lot sizes in a variety of material types and thicknesses or operate lights-out for extended production runs).

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PUBLISHER Steve Devonport 416-442-5125 | SDevonport@canadianmetalworking.com ASSOCIATE PUBLISHER Rob Swan 416-510-5225, cell 416-725-0145 | RSwan@canadianmetalworking.com EDITOR Jim Anderton 416-510-5148 | janderton@canadianmetalworking.com ASSOCIATE EDITOR Nicholas Healey 416-442-5600 x 3642 | nhealey@canadianmetalworking.com EDITORIAL DIRECTOR Lisa Wichmann 416-442-5600 x 5101 | LWichmann@canadianmanufacturing.com ART DIRECTOR Sheila Wilson 416-442-5600 x 3593 | shwilson@bizinfogroup.ca CIRCULATION MANAGER Selina Rahaman 416-442-5600 x 3528 | SRahaman@bizinfogroup.ca MARKET PRODUCTION MANAGER Barb Vowles 416-510-5103 | vowlesb@bizinfogroup.ca PRINT PRODUCTION MANAGER Phyllis Wright 416-442-6786 | Pwright@bizinfogroup.ca BIG MAGAZINES LP.............................................................................

PRESIDENT OF BUSINESS INFORMATION GROUP | Bruce Creighton VICE-PRESIDENT OF CANADIAN PUBLISHING | Alex Papanou EXECUTIVE PUBLISHER, MANUFACTURING | Tim Dimopoulos HOW TO REACH US.............................................................................

Published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. 80 Valleybrook Drive, North York, ON M3B 2S9 Phone: 416-442-5600. Fax: 416-510-5140 CM, established: 1905 is published 9 times per year by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. SUBSCRIPTION RATES Canada $55.00 per year, Outside Canada $90.00 US per year, Single Copy Canada $8.00.

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View From the Floor Where Things Work

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ver the years, I’ve written this column from the shores of pristine lakes, from creaky Jumbo Jets 39,000 feet over Siberia and once from the hangar deck of an aircraft carrier. Right now, I’m in a pretty resort town in Switzerland, Interlaken. Normally, the venue doesn’t matter and I don’t care enough to mention it, but there’s something going on here that’s important.

Switzerland is famously ordered and organized and while the stereotype is rooted in a great deal of truth, the hidden subtext that the Swiss are a staid and uninteresting people is far wide of the mark. If ‘functional’ is the same as ‘stolid’, then give me a little of their kind of boredom back home. Things work here. Switzerland integrates natural spaces and green principles with some of the highest technology precision engineering on the planet.

The Canadian toolmaker or machinist’s descriptor “Swiss job” refers to intricate, precision work derived from a traditional watchmaking culture but the nation applies the core principles broadly. Road construction crews for example, use equipment that is significantly smaller than the Canadian norm for many tasks, yet work at a noticeably faster pace.

Everything from ATMs to railway crossing safety barriers are better, smarter and faster than our norm. It’s an outward looking culture that’s confident, sophisticated and worldly.

Here in Interlaken, Chinese tourists photograph goats grazing in a small pasture 20 metres from one of the numerous boutiques selling cell phones and Rolex watches. Much of the country has a gingerbread feel with funicular railways, traditional architecture and village charm, all with the Alps as a backdrop.

What the postcards don’t show however, are hundreds of factories small and large producing class-leading machine tools, advanced materials, production processes and components for applications ranging from orbital satellites to dairy farming. Everything works in Switzerland and works well, but not for the reasons that we believe.

In Canada we often cite our dysfunctional political system for hobbling economic progress, but the Swiss have an antique form of regionalism and direct democracy which can be even more fractious and paralyzing than a Rob Ford council meeting. Except that here, the infrastructure gets built.

How? The Swiss communicate in French, Italian and German but maintain a strong national identity and unique culture that has pragmatically evaded centuries of European conflict. Like us, they are a peace loving country. Also like Canada, they are a small country relative to their neighbours but are proud, tough and resourceful.

From where I’m writing this however, the Wi-Fi signal is strong, the vending machines are never out of Diet Coke and the teenager with the ring in his nose gives you simple, clear and concise directions to your destination in the major language of your choice. A nation is the sum of the stories that it tells about itself, a set of memes derived from oral and written traditions that are simultaneously distorted and amplified by foreign ideas and ideals that once crossed the Alps on leather boots and now flood in through the Web, just like everywhere else.

Things work here because the Swiss like it this way. They like how it makes them feel and the like the way it makes the world feel about them and their culture. Homes that have stood for 200 years carry solar panels discreetly on their roofs. World-class pharmaceutical research coexists with traditional herbal medicine. Tradition endures, but progress marches on.

I used to wonder how Einstein could formulate General Relativity in a Swiss patent office, but from where I sit it makes perfect sense. It’s the culture; their culture. Switzerland isn’t better than Canada, it’s different.

I wouldn’t want Canada to duplicate Switzerland, but we could benefit greatly from a little Swiss enthusiasm for technical and operational excellence combined with an unapologetic worldview and confidence that our culture will survive for centuries, long after politics and economics cease to be relevant. Our’s might, but I’m pretty sure that their’s will.

JIM ANDERTON, EDITOR

Do you agree? Let me know, and feel free to drop me a line at the e-mail address below, or buttonhole me at a show or event. I’d love to hear from you! janderton@canadianmetalworking.com

10 | JUNE 2014 | www.canadianmetalworking.com

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Micro Circular Milling Taken to the Extreme

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IN THE NEWS

25th annual Ontario Technological Skills Competition takes place in Waterloo

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his May 5-7, over 1,900 elementary, secondary and postsecondary students from across Ontario were able to prove they are the best of the best in their fields — and those fields are in the skilled trades and technologies.

The 25th annual Ontario Technological Skills Competition — Canada’s largest skilled trades competition — took place at RIM Park in Waterloo. With over 65 contests onsite, competitors took part in everything from welding , to building robots.

The oversized building swelled with over 20,000 spectators, including educators, proud parents/guardians, politicians, industry leaders, the general public, and the competitors themselves.

Winners were presented with gold, silver and bronze medalso — some also received monetary awards — and at press time many are competing at the National Competition, taking place in To-

ronto from June 4-7. From there, many competitors are eligible to advance to the WorldSkills Competition, taking place in Brazil in 2015.

The competition receives over $7 million in in-kind donations from industry, and pumps approximately $3.5 million into the local economy.

Skills Canada — Ontario is a not-for-profit organization dedicated to promoting the skilled trades and technologies as viable career options for Ontario youth.

Throughout the year, the organization promotes skilled trades and technologies through in-school presentations, the Ontario Technological Skills Competition (OTSC), cardboard boat race competitions, networking dinners and conferences, and Aboriginal initiatives.

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IN THE NEWS

Canadian Metalworking hosts pair of tabletop shows in Western Canada

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anadian Metalworking magazine hosted two table top shows in western Canada in the month of May. The first show, in Coquitlam, took place at the Hard Rock Casino on May 6, while a show in Calgary took place at the Commonwealth Centre on May 27. It was the first time Canadian Metalworking went to the Calgary area, however the Coquitlam show was taking place for a second year in a row.

The shows, which featured a tabletop format and a keynote speaker before the floor was opened, were well received by both exhibitors and attendees alike.

“The second edition of the Coquitlam Tabletop Show was a success. Attendance was up and the quality of the leads was once again positive,” said Frank Bolieiro, VP-Sales & Marketing at Elliott Matsuura Canada Inc. “The western Canada market has been somewhat slow at the beginning of 2014. Some pockets are now showing signs of recovery… The addition of tabletop shows in Vancouver and Calgary has allowed Elliott to reach customers where machine tool shows have not existed in the past. Certainly a good way to serve these markets in the coming years.”

David Lowey, a sales associate for Machine Toolworks, a distributor of Mazak machine tools, also had positive things to say about the event.

“The show was well attended, a steady stream of visitors all day. The addition of a keynote speaker did encourage people to arrive earlier than last year so the exhibitors were straight into business,” Lowey said.

“The BC marketplace is growing and business owners are starting to invest in their companies. There is confidence they can compete against more established manufactures from outside the province, something that would not have been contemplated even a few years back,” he continued.

Both of the 2014 shows featured Ed Beange as a keynote speaker. Beange is the owner of a Vancouver based shop named Hansen Industries which was profiled in Canadian Metalworking in 2013. He spoke at length to audiences of roughly 100 in each city about some of the strategies that have made Hansen a successful shop.

Speaking about his early philosophy towards work, and how it’s since changed, Beange said, “All I wanted to do was retire… and that didn’t serve me very well. ’Plork’ is when you combine your play and your work… where you actually enjoy what you’re doing.”

He cited this and a positive attitude at work to why his company has such strong workforce, and low turnover rates. He noted that in many cases they have hired based on the concept of “emotional IQ”, and take a very forward-thinking approach

14 | JUNE 2014 | www.canadianmetalworking.com

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IN THE NEWS

Y i p

Joe Poulin of Hurco speaks with attendees on the floor at the Calgary show on May 27.

An attendee visits the Fein booth at the show in Coquitlam on May 6.

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Canadian Metalworking associate publisher Rob Swan and Design Engineering publisher Alan MacPherson present attendee David Koetsch with a Samsung Galaxy tablet as a door prize.

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to keeping their employees happy in their roles.

Both shows also featured a number of giveaways and door prizes, with iPad minis, GoPro video cameras and Samsung tablets among the prizes for the attendees.

As a result of the events’ success the Coquitlam and Calgary shows will be returning, however dates are yet to be determined.

“Elliott intends to sponsor the 2015 Metalworking Manufacturing & Production

F

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IN THE NEWS EXPO in B.C. We will work with our suppliers to continue having a tabletop at this show,” Bolieiro said.

Canadian Metalworking will also be hosting a third show this year, which will take place in Windsor, Ontario on October 23, 2014 at the Ciociaro Club. The show will be co-hosted along with Canadian Plastics magazine, and is expected to draw a strong crowd in Canada’s automotive heartland. The show will also feature a keynote presentation

by Dennis Desrosiers, one of Canada’s foremost experts in the auto industry.

For information about how you can register to attend the Windsor show, or exhibit at and/or attend future shows visit: www.mmpshow.com Attendes on hand at the Hard Rock Casino in Coquitlam, B.C. listen to the keynote presentation.

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Above: Attendees gather to hear the keynote presentation in Calgary.

18 | JUNE 2014 | www.canadianmetalworking.com

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The global technology leader presents it’s high performance PVD coatings.

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Daryl Frankowski Manager of Sales M: 716 864 7802 daryl.frankowski@oerlikon.com Michael Molnar Sales Territory Account Manager M: 289 834 1448 michael.molnar@oerlikon.com

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IN THE NEWS

EMEC announces new team E

MEC Machine Tools have announced they will be moving into their new facility at 7939 Henri-Bourassa Blvd West, Montreal QC on August 1, 2014.

This new facility will have a complete showroom with

the latest technologies on display.

The company has also added new staff members:

New from FEIN...

PAUL TELLES:

»

EMEC Machine Tools Inc. is delighted to announce the appointment of Paul Telles as Area Sales Manager.

Paul joined EMEC just prior to MMTS 2014 and is a great addition to our already strong sales team. Paul brings over 20 years of successful experience selling high quality , high technology products and his new territory will encompass the east end of Montreal, Laval as well as the North Shore of the St-Lawrence river with some selected accounts on the South Shore. Paul’s excellent reputation and trusted customer relationships will only enhance EMEC’s push to increase its presence in Québec and the Maritimes and maintain its position as a leader in providing machine tool solutions to the highly demanding, high technology Quebec manufacturing sector. All at EMEC wish Paul all the best in his new position.

GINO SCOPELLITI: EMEC Machine Tools Inc. is delighted to announce the addition of Mr. Gino Scopelliti to its sales team.

Gino is a seasoned professional who brings with him many years of experience in selling high quality machine tool solutions. With his experience Gino has a reputation for putting his customers first and has developed many solid customer relationships along the way. We at EMEC are excited by this addition to our team and wish Gino all the best.

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EMEC Machine Tools Inc. is pleased to announce the appointment of Zach Bird to its Quebec service/applications engineering group. Zach brings with him several years of manufacturing experience along with several years as a teacher in a technical college. This combined with being fully bilingual will serve to enhance EMEC’s training capabilities. All at EMEC are looking forward to working with Zach and wish him all the very best in his new position.

20 | JUNE 2014 | www.canadianmetalworking.com

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IN THE NEWS

Star power on hand at MMTS

Canadiens legend Guy LaFleur entertains fans at MMTS 2014

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“We need to inspire entrepreneurial dreams amongst the youth… The manufacturing sector has much value to add to the economy,” Vezina said (note: quotes have been translated from French to English).

“We need to change the public perception of manufacturing and metalworking. It’s crucial to alter clichés. Manufacturing – c’est chic!”

A number of education sessions were also run throughout the event in French, some of which focused on emerging technologies like additive manufacturing.

A job shop night was also hosted at the show with former Montreal Canadiens star Guy LaFleur on hand to sign autographs.

ERI America_CMW_06-14.pdf 1 6/5/2014 3:04:59 PM www.mmts.ca

he Montreal Manufacturing Technology Show took place May 12-14 at Place Bonaventure in René the city’s downtown core.

Vézina delivers The show, which is a biennial keynote event, featured roughly 150 exhibitors address showcasing the latest in machine tool technology and many ran The show opened with a Keynote address from René Vézina, a Columnist with Les Affaires magazine.

Vézina specializes in science and economic journalism and delivered an inspiring talk to the roughly 170 attendees on hand.

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IN THE NEWS

Canada needs more than trade deals to succeed: report

By Canadian Manufacturing Staff OTTAWA — Free trade agreements aren’t enough to bolster Canada’s “dismal trade performance over the past decade,” claims a report issued by the Canadian Chamber of Commerce.

According to the national business association, trade deals like the ones the federal government recently signed with the European Union (EU) and South Korea are not enough to support business growth, and the Conservatives need to take “parallel steps” and support companies working internationally.

“International trade is one of the fastest and most effective ways for our businesses to grow, create jobs and contribute to the economy,” chamber president and CEO Perrin Beatty said in a statement.

“But the facts show that our companies are increasingly reluctant to export and invest abroad, especially with emerging markets where the bulk of future growth will come from.”

While the chamber lauded the recentlysigned trade deals, it said they are not enough to “address all the barriers” firms face when breaking into new business environments.

The deals also don’t substitute for the need for Ottawa to build government-to-government relationships abroad that help open new opportunities.

Based on consultations with members, the chamber is recommending the government take a number of steps to help business, including integrate trade services and connect them to businesses; put the business back in Canada’s global brand; strengthen Canada’s diplomatic presence abroad; and incorporate the private sector into Canada’s international aid strategy.

“It’s not so much about changing what we do, but doing more of it and learning from others how to do it better,” Beatty continued.

“The government’s Global Markets Action Plan is a step in the right direction, but we need to do more than just shuffle the same deck of cards. We’re playing a new game now.”

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THE BUSINESS OF WELDING

Your name here (Ian’s guide to self-promotion)

I

Ian Campbell, Director of

would like to start this column by saying that Canada is a great country. There are lots of good things happening here that are the direct result of our collective success, but I’m sure there are even more great things lurking in the background that, given a chance, would help propel us even further. Every company or person that has survived, grown and prospered has as a result a story to tell, and that story should be a key part of future successes. What I’m talking about here is promotion.

There are all kinds of ways to think about promotion, but from my perspective good promotion is all about telling a story, getting people interested in what you have to say and by extension what you have to offer. It’s about making yourself more “visible” to the industry, your clients or potential employers. In short – it gives people a reason to believe in you and what you have on offer.

Not to stereotype too much, we as Canadians seem to undersell ourselves, so lets take a quick look at a simple route to changing that through promotion:

Marketing and New Product to talk about it are two very different Development, CWB things. If you want promotion you are going to need to go out and look for it. Almost any editor, publisher, web site owner, blogger or fan of services like Facebook, Twitter, Pinterest, etc. is looking for stories. However, today’s world is a world of a billion stories (aka “content”) so you will need to do some research and have a plan to get results.

Research and planning are two sides of a single coin – you cannot have one without the other. By doing research you help to shape your plan by identifying opportunities to tell your story. On the flip side you need to start with some plan objectives (like what you want to promote, and to whom) to avoid waiting time. You also need to understand that the research results may take you in a direction you never thought of going before: Embrace the change if it seems right, or rethink your plan objectives if you come to dead-end. In the end what you want is a short list of people, places and publications that are a good fit for your story.

Know what makes you different

Look for opportunities- then use them

Do you really know what makes you, or your company different? The easiest way to figure this out is to make a big list of your perceived strengths, then spend some time comparing it to others who are similar to you in the marketplace. Start crossing off items that you feel make you weaker until you get down to a small list. If you end up crossing off everything then don’t despair; go back to the list and pick three of four items that you think you could excel at. Don’t forget about things like certification, industry programs and testing that you have gone through, stuff that shows the industry you’re serious about what you do. Remember: From a promotions perspective there is a story in everything you do.

Okay, you now have a story and have identified places you want to tell it. The task at this point is to look for opportunities to showcase your story. All major publication have editorial calendars that spell out what will be published each month and websites, blogs and bloggers typically have topics they like to cover. Use this information to help you get your story across. Be selective and make sure your story matches the focus of the opportunity.

Strive for improvement Now that you have your list, write down the reasons you think the items on the list truly represent you and your current (or potential) unique position in the marketplace.

This is basically an exercise in charting out your history, as well as your investment in training, equipment, time and dollars spent to get you to where you are now. It is about looking for what you have done so that you can do more of it to improve your story. Be proactive and start the improvement process now with the knowledge that every improvement you make is a new promotional opportunity for you to leverage.

Finally – think positive It’s easier to make opportunities than wait for them to drop out of the sky, so put some time aside to run your own promotional activities. Reach out to editors, customers, employers – whoever you consider your prime promotion “targets”. If you have a good, unique and compelling story you will likely find a receptive ear now and into the future.

As always, if there is something the CWA or CWB Group can do to help you then please drop us a line or find us on Facebook. You can also find me on LinkedIn or catch up on past articles at my blog at opiniongarden.wordpress.com.

I’m interested in hearing what you have to say, so feel free to leave a comment.

Do your research, have a plan Having something to talk about and having an opportunity

Canadian Welding Bureau/Canadian Welding Association www.canadianmetalworking.com | JUNE 2014 | 25

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FINANCING

Don’t let ‘sticker shock’ prevent machinery upgrades Financing allows the focus to shift to revenue potential and efficiency gains

Ken Hurwitz

By Ken Hurwitz.........................................................................................................................................................................................

L

ast month I discussed how the “show season” for machine tools and manufacturing equipment is upon us, along with what to expect when visiting different shows and how to make productive use of your time.

Well it wasn’t just lip service since I not only had a small booth at FABTECH Canada but spent one day visiting the Joint Machine Tool Open Houses in April, and MMTS in May. From the standpoint of new technology and services, it was quite overwhelming. There was a lot to see and plenty of experts to speak with so from where I sit, it was a productive use of time.

What also became evident was even though I visit these events mainly as an attendee instead of a host/ seller, a lot of what happens at the events doesn’t seem to change much.

When a manufacturer or prospective customer looks at a new piece of technology, such as a multi-axis CNC lathe or a 5-axis machining centre, the first issue that seems to arise is ‘sticker shock’ (I used to keep smelling salts in my desk to revive a potential customer after delivering a quote).

Next month I will discuss some of reasons why the typical Canadian buyer is so price-conscious but I digress.

In any case, I found when we were offering a high-end piece of equipment, we almost always tried to get our customer in front of the machine.

That’s the beauty of these shows and open houses.

They allow buyers to at least get an idea or understanding of what’s being offered. When the machine can be seen and touched (and demonstrated under power) we found the price was a litter easier to digest.

The most successful clients I have are the ones investing in new technology. They are sharp, forwardthinking companies that have recognized they have to upgrade to a multi-axis CNC lathe because they have work which needs to be both turned and milled. By

adding one machine that can complete the part, they dramatically increase both their capacity and efficiency and in turn, their bottom line.

Other clients have purchased a 5-axis machining centre because the set-up time for machining a part on a 3-axis was killing their profitability and not allowing them to competitively quote. In either case, the business decision to upgrade was easy, particularly because the funds didn’t have to come from their working capital or bank operating line.

Growing companies taking on more work have plenty of additional costs that can’t be financed, such as material, perishable tooling, or operators. These are areas where their cash is of its highest and best use.

Successful manufacturers financing the equipment look at the transaction and make the business decision based on monthly cost—not on overall equipment cost.

Once the thinking moves into this type of evaluation, the sticker shock of buying a new machine is either entirely disarmed or at least minimized significantly. Now the focus is on configuring the machine to maximize efficiency and profitability, as opposed to finding a machine that fits into a “budget.”

For instance, a manufacturer looking to upgrade an older 2-axis lathe may only purchase the model with live tools (milling capacity) even though the right machine for the job is the one with a sub-spindle or a y-axis (or both) because it adds $50,000 to $75,000 to the upfront purchase price. However if buying the right machine only works out to an additional $975 to $1,450 per month it becomes very easy to measure the cost against the monthly savings in time and efficiency and in turn justify the more functional machine.

The time and effort the customer may have spent trying to negotiate a better price from the seller can now be used in a collaborative manner to find the most efficient ... continues on page 29 www.canadianmetalworking.com | JUNE 2014 | 27

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solution to manufacture the part. Long- term savings on minimizing manufacturing time will far exceed any type of negotiated discount from the retail or asking price.

DON’T FORGET THE SOFTWARE While visiting the shows and open houses I also spent a lot of time with the software and accessory suppliers.

Investing in new machinery is the first step to improving both efficiency and profitability. But if the systems aren’t in place to support it, the profitably gain could be somewhat compromised.

You should avoid installing a new machine but continuing to use 10-year-old software or outdated measuring equipment. One customer of mine had invested in a new 5-axis machining centre but hadn’t upgraded their software system.

The cycle time for the part was better, but still quite

NEW

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long. It wasn’t until a new software solution was implemented, at a cost of roughly $30,000, that the benefits of the new equipment were fully realized.

Getting financing for software isn’t as easy as financing a hard asset, although it is something we offer our customers. By financing the equipment, a manufacturer may still have some capital available to purchase the needed accessories which might have been postponed if the equipment was being financed internally. CM Ken Hurwitz is the Senior Account Manager with Enable Capital Corp., an asset-based lending company in Toronto.

Ken has years of experience in the machine tool industry and now works to help all types of manufacturers tap into their own capital to optimize their operations.

Contact Ken at (416) 614-5878 or via email. Learn more at www.enablecapitalcorp.com

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Skills Training

Call to Arms:

How One Organization is Fighting the Skills Gap 30 | JUNE 2014 | www.canadianmetalworking.com

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The Helmets to Hardhats program is helping transition Canadian vets into great roles in the civilian workforce

A

ll over the nation, Canada has a slew of industries looking for skilled workers. A common refrain amongst businesses is that there just aren’t enough employees with the right skills sets to meet the demand. There is however, an obvious source that some businesses may be overlooking: Canadian veterans. Helmets to Hardhats is a program that originated in the U.S. (under the stewardship of a Canadian), and has since gotten off the ground north of the border. Canadian Metalworking spoke with retired Brigadier General Gregory Matte, the program’s executive director, about the details of the program:

How exactly did the Helmets to Hardhats program originate?

The program Helmets to Hardhats started in the United States about 12 years ago. At the time in America they had a shortage of skilled workers, primarily in the construction industry. Same time, the Iraq war was just underway, the invasion of 2003, and they had a number of vets returning after their initial six months of duty — a lot of them part time reservists. It was front and centre in the news that a lot of these vets were coming home, had lost their jobs, and were looking for new work.

The building trade unions one day said, “you know, why don’t we try and tap into these great people and see if they’d be interested in working in construction.”

The person that started that whole idea happened to be a Canadian who was down in Washington at the time (Joe Maloney, Vice-President, Western Canada, International Brotherhood of Boilermakers). Joe came back to Canada, and he thought this worked out great in America, why don’t we try and do the same in Canada?

It took a little more time, and he went about it in a slightly different way because he wanted to make sure the funding for this program didn’t come from a single source. He wanted it to come from at least two or three sources so that nobody could really take ownership of it. The core partners really are the building trade unions themselves, the General Presidents’ Maintenance Committee, as well as a number of major corporations that have collective agreements with them, such as TransCanada pipeline.

He was finally able to get support through Veterans Affairs Canada — it took quite some time — when he got that, the program was set to be launched and it was the prime

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is part of the incentive underlying our “Teens to Trades” initiative, which is designed to attract youth into the trades and the military reserves concurrently.

The only caveat we have is that if someone is in the military and they had a dishonourable discharge, then they would not be eligible. But that’s quite rare actually.

Brigadier General (ret.)

Gregory Matte, Executive Director, Helmets to Hardhats

minister himself that announced it in January of 2012 at the Boilermaker’s Training Centre in Edmonton, Alberta.

So the Canadian arm of it is actually relatively new then?

Relatively new, because after the prime minister announced it they had nobody to run it! I was selected to implement the program beginning in May of 2012, so we’ve been going for almost two years now. We’ve now grown to a team of five vets to run H2H, along with a Board of Directors with Joe Maloney as Chairman, to oversee the implementation and ongoing evolution of the program in Canada.

Do you do any work with the American side?

We have an excellent working relationship with them because we have a common interest, which is helping our vets. The difference is of course the constituency: we assist Canadian military vets in Canada, while they do the same for their vets in America. They were very instructional in helping me get set up, and they shared with me all the lessons they learned — what did work, what didn’t work, and how they built awareness - so that was very helpful.

Who exactly is eligible for the program?

At this point in time it’s strictly for Canadian Forces vets — both those serving and looking to transition into a civilian career, as well as those who already left the military. It’s important to highlight that we assist many of our part-time reservists. Someone could be in the military for literally just a month and they could receive our assistance, which

How does the program receive its funding?

At this point, the funding from the unions and industry is recurring, while the funding from government is typically in the form of a one-time grant.

We have received a grant of $150,000 from the federal government through Veterans Affairs Canada, and that was about a year and a half ago. But we also got $150,000 from the province of Alberta and the province of Ontario back in May of 2012. They contributed $150,000 as a onetime grant. More recently, Premier (David) Alward, in New Brunswick, contributed $50,000.

That’s three provinces so far and the idea is that over time we’ll go to other provinces and some of the larger municipalities, whether it’s Vancouver, or Calgary, Winnipeg, Toronto, Montreal. We will eventually try to bring them on board as well. We find by soliciting that kind of grant, (municipalities or organizations) they have “skin in the game” and as such, it fosters a higher degree of commitment. As a result we have their endorsement, which quite often opens doors in dealing with bureaucratic issues like prior credit towards apprenticeships as well as licensing.

Are there any ways other than financial help that provinces have been involved?

Well in the case of Alberta it’s interesting. One of the challenges that the vets have when they transition out of the military they have quite a lot of training and expertise as you can imagine. But, the skill sets are necessarily directly transferrable.

The province of Alberta recognized that of the 100 plus different trades in the military they saw that there were 10 that had a very close correlation (to “real world” trades).

In the military we refer to “qualification level”. When someone gets to a certain qualification level, they’re basically like a journeyman with the requisite authority to sign off on their work, such as certifying that an aircraft is serviceable to return flying after major repairs have been completed. Furthermore, this qualification allows them to supervise and train other apprentices.

So what the province of Alberta did was they took a bold step and they decided to take these particular trades in the military, and if someone had that qualification level 5, they’ll give you the equivalent civilian recognition in the province of Alberta.

So they just said enough with the bureaucracy?

Yes. And that was very progressive on their part, and Saskatchewan has since followed suit. So we have two provinces that recognize those occupations now, and we’re hoping to get more and more.

32 | JUNE 2014 | www.canadianmetalworking.com

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In some ways that’s almost better. Do you know why other provinces haven’t done that?

It comes down to a need, and the need out west for skilled workers is obviously higher, and I think it comes down to a certain degree of progressiveness as government and as a bureaucracy. Sometimes it’s just simple awareness and making it a priority, and over time I hope to do the same here in Ontario, and probably in British Columbia.

You mentioned that there were a number of military trades being recognized in a civilian setting. What are they?

Electrician, cook, heavy duty mechanic, millwright, plumber, refrigeration mechanic, welder, carpenter, and machinist — when it comes to sheet metal, we don’t have that yet. But we do have people that deal with it both in the navy and the air force.

(Trades) that you might not expect, like cook — are actually very attractive when you consider these work camps up in Fort McMurray. A military cook, might not necessarily be working in a five star gourmet restaurant but they know the logistics of planning meals for a thousand people at a time.

The program is also designed such that if we have a vet that does not have a background in any of those trades, we will help them, but what they’re looking at is that they’ll either be doing a full, or partial apprenticeship.

Is there one field that is in particularly high demand?

I would say the ones right now that seem to be most popular are heavy equipment operator, welder — and welder then takes them into things like boilermaking. Electrician is popular. Carpentry is popular. After that is falls off a little bit, it depends on the need. For instance, over the last six months elevator constructor, which is not necessarily very well known trade, they went on a recruiting blitz, and in a very short time, we had 10 vets that were accepted into one local alone.

Lots of these trades seem like a natural fit for veterans. Are there any challenges for some?

There are some challenges. The first one vets are unaccustomed to is the whole idea that you can be laid off. In the building construction industry, you work yourself out of a job. There might be a project building a hospital, or laying a section of pipe, or building an LNG project. This is a

project that could be a year to three years in duration, but eventually it’s completed. It’s not the same as if you’re laid off because you’re incompetent; you’re laid off simply because the project has ended.

So for people that are in the military, they’re un­accus­ tomed to that because in the military it’s a government department and you’re paid on a regular basis.

I laugh about it now, because I talk to a number of people, who’ve been in the union for years, and they often relate to me stories such as, ‘when I was laid off, I took it personal, and I was scared about what’s going to happen’, but then they realized this was normal. Eventually they started looking forward to the end of a project, because it’s when they planned their vacation down south!

There must also be some people who take to it quite well though. It seems like there are some similarities between the trades and the military.

In the construction industry, it’s similar to the military, in that every member of the team is valuable. It doesn’t matter what your rank or what your skill is, if you take someone out of the team, the team will fail. Everybody on the team succeeds when the mission is finished. If you have a big project you’re working one. If you take out the electrician, the plumber or the ironworker, and that project will never get done. The idea that you’re coming together to achieve a big mission is very similar.

The final thing — which is probably the most important — is that in (the trades industry) it’s not uncommon that when the members of the union go to work on a project, often they have to go out of town to work on it.

Sometimes they might be away for three weeks at a time.

So the support network that the unions have developed for the families and the children is very strong and quite well founded. The military is very similar. We ask people to leave for a month, or a year, and so we’ve developed those networks of support for the family that’s left behind.

So culturally the similarities between the military and the trades unions is quite strong, and very positive, and that is a great thing because it leads to vets recognizing that very quickly, and on top of that they’re welcomed into the fraternity and the people behind it support the vets.

So the similarities outweigh the challenges?

Very much so. It’s not for everyone, don’t get me wrong.

But for those that decide to give it a try, most are just delighted. Also, while it’s largely focused on trades and apprenticeships, we have a number of people that may have an education from a university. They may be an engineer, project manager , human resources expert or an accountant. The program also assists those people, and quite often they get hired directly into some of those large companies that promote the program and work directly on the core staff as project managers or planners. CM For more information visit: www.helmetstohardhats.ca

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Export THE

Imperative

Small and medium sized business needs to export to secure long term growth.

But how?

By Jim Anderton, Editor ............................................................................................................................................................................

I

n 2014 more than either of the previous two years, economists everywhere agree that the recovery is in full swing. While the shock of 2008 rippled through the financial services sector, destroyed billions in US consumer home-equity and dampened consumption globally, for goods manufacturing industries there’s a silver lining. Consumer demand especially for durable goods, can be deferred, but not destroyed. Durables require replacement; when the furnace quits, you’re going to replace it, period.

Our current era of sustained, historically low interest rates may be responsible for a housing bubble in some Canadian urban real estate markets, but it’s also a strong incentive for renewed consumption of manufactured goods. For small and medium-sized enterprises in Canada in the metalworking sector, this is an indirect economic driver as they operate in primarily B2B environments, with Tier 1 and Tier 2 suppliers supporting major manufacturers.

For Canadian majors like Bombardier for example, the demographic reality of Canada’s stubbornly small population makes export a necessity for business survival. In a just released report by the Canadian Chamber of Commerce, Peter Hall, chief economist, Export Development Canada reveals the numbers: “the number of small businesses exporting to emerging markets is growing by 8.5% annually. At this rate, the number of businesses selling their products and services abroad will double every eight years. In many cases, these firms’ revenue growth is much greater than that. Given the fast pace of Canadian export growth to emerging markets,

many exporting firms are seeing explosive growth in total revenues.”

It’s an optimistic outlook, but percentage growth doesn’t tell the whole story. For the last 10 years, the value of exports has increased very little, despite strong prices for Canadian energy, minerals and agricultural commodities.

With these price increases stripped out of the statistics, merchandise export volume in 2012 was 5% lower than in 2000, in a world where trade increased 57% over the same period. Just as importantly, we are not reducing our dependence on the US as an export market. Over the last five years, sales to non-US nations has held steady at approximately 25% of the total.

According to the Ontario Chamber of Commerce report “Emerging Stronger 2014”, only 6% of small businesses export. The Chamber of Commerce report further notes that measured by value of foreign assets, only one Canadian firm, Barrick Gold, cracks the top 100 globally. This is Ottawa’s territory, and the federal government has vigorously pursued a string of free-trade agreements and foreign trade missions to promote Canadian exports. According to a Foreign Affairs and International Trade Canada report entitled “The Impact of Trade Promotion Services on Canadian Exporter Performance”, firms that use federal trade promotion services export 18% more than their competitors, and also export to 36% more markets.

According to Foreign Affairs, this makes Ottawa’s foreign trade promotion activities cost effective, generating 27 dollars of exports for every dollar spent. For Canadian SMEs however, the federal programs mainly help larger firms that already export a significant proportion of their produc-

36 | JUNE 2014 | www.canadianmetalworking.com

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U.S. growth drives manufacturing rebound

source: PLANT Manufacturer’s Outlook: 2014

Alberta is the perennial growth leader in the Canadian economy, but Ontario is poised to rebound strongly due to improving demand in the U.S., states a new report. According to international forecasting house IHS Economics (formerly IHS Global Insight) growth will average 2.3 per cent this year, 2.5 per cent next year, and 2.7 per cent in 2016, with unemployment rates dropping to 6.5 per cent by the third year. Alberta will continue to be the major driver of Canadian growth, but Ontario is staging a comeback after two consecutive sub-par years.

Manufacturing in Ontario is projected to grow by 2.4 per cent this year and rising to 2.7 per cent in 2016, essentially matching the national average. Ontario’s goods-production sector, including manufacturing, should benefit from the increased U.S. demand, the report said, adding that the province’s under-performing jobs market will likely catch up to the national average of one per cent growth in 2014.

The 2016 IHS projection is half-a-point stronger than the Bank of Canada’s more modest forecast, but IHS chief economist Arlene Kish is confident the U.S. economy is ready for a major rebound. The U.S. accounts for more than 70 per cent of Canadian exports.

“We did differ [from the Bank of Canada] in terms of 2016 economic growth,” Kish wrote in the report. “Part of this may be explained by the fact that IHS is more bullish on U.S. economic growth for 2016 and the impact it would have on the Canadian economy.”

tion, the companies that least need government assistance and have the best resources to cope with regulatory and compliance costs. And despite efforts by Export Development Canada to simplify and streamline the application process for critical exporter risk mitigation strategies like receivables insurance, most Canadian small manufacturers don’t participate.

RISK MITIGATION IS THE KEY For suppliers of customized speciality products like molds, tools and dies, smaller job shops can literally bet the company on a single major export order. While many tooling contracts in this hemisphere operate with initial payments followed by performance and milestonedriven follow-up cash, unless a working relationship is www.canadianmetalworking.com | JUNE 2014 | 37

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source: PLANT Manufacturer’s Outlook: 2014

source: PLANT Manufacturer’s Outlook: 2014

“

For the last 10 years, the value of exports has increased very little, despite strong prices for Canadian energy, minerals and agricultural commodities.

source: PLANT Manufacturer’s Outlook: 2014

already established with the foreign firm, payment on delivery might be the only terms available. Getting paid for the job is not enough; if “Net 30” terms stretch to 90 or 120 days due to a dispute or transaction difficulties, the resulting cash flow crunch can drive a job shop into expensive bridge financing, or worse.

For manufacturers that produce lower unit cost, higher volume products, the risk per export shipment is lower, but they face a different problem. Canadian markets with strong demand may already exist, but without production volumes of sufficient size to amortize tooling and development costs over a run long enough to keep unit pricing down, the manufacturer may be uncompetitive.

In this case, export markets are the only way to create an aggregate demand large enough to justify a production run. This may require distribution systems in a number of countries simultaneously, raising the risk threshold again.

For exporters with one customer or many, marketing help is useful, but receivables insurance is a margin protecting risk mitigation strategy used by few small shops.

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The 2014 report by the Conference Board of Canada entitled “Not for beginners: Should SMEs go to fast growth markets?” concludes that for many smaller businesses, the most lucrative markets may be too risky to pursue.

Companies with a proven product are more successful with access to traditional forms of trade finance and benefit most from government programs that fill information gaps, while large firms selling very high-value products like aircraft often place more value on political advocacy and purchase financing for their customers.

In Canada, just getting to the export starting line can be a challenge. The manufacturing SME may be best served by the Trade Commissioner Service, Export Development Canada, the Canadian Commercial Corporation, Industry Canada, or Natural Resources Canada, for example. The Chamber of Commerce report notes that these federal agencies have different core competencies; referrals and international leads don’t tend to be shared between them.

It’s possible for a Canadian SME to have the right product at the right price aimed at the right export market, all facilitated by the wrong supporting agency. Finding the right agency is easier if it’s also trying to find you, but unfortunately, the”right agency” may not be well placed to locate Canadian exporters.

Recent estimates suggest that Canada has over 40,000 active exporters, yet the Trade Commissioner Services

database lists 20,000 organizations, and the EDC services lists approximately 7000 annually. Clearly a large number of active exporters go it alone. The Chamber of Commerce report also voices a common complaint among smaller Canadian manufacturers: “smaller firms find it particularly difficult to navigate the trade promotion ecosystem. Often, they have to visit multiple websites and speak with several representatives in different departments before finding the relevant solution to their problem. This can be enough to deter them from seeking services in the future. While most agencies have websites with information on how to access their services, past attempts to create streamlined

“

Despite efforts by Export Development Canada to simplify and streamline the application process for critical exporter risk mitigation strategies like receivables insurance, most Canadian small manufacturers don’t participate.

OTTAWA’S PRIORITY MARKETS

T

he federal government has multiple resources for potential exporters; Foreign Affairs, Trade And Development Canada is the lead department and on a macro scale, has identified priority nations thorugh “Canada’s Global Markets Action Plan”. The plan establishes key foreign markets using economic modelling to identify markets with highgrowth potential given Canadian industrial capabilities and competitive advantages as well as an analysis of potential sources of capital, technology and talent. Existing global trading blocs and current Free Trade Agreement partners for Canada are also considered with guidance from key Canadian industry sectors. The map strongly infers a tilt toward the BRIC (Brazil, Russia, India, China) nations, with

Russia

China India

Brazil

some broad-based opportunities in the Asia Pacific region and Latin America.

Prioity sectors identified by the department include much of the metalworking industry and includes aerospace, automotive, oil and gas, and the industrial machinery sector.

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FINDING FINANCING

E

xpansion into overseas markets is a good thing, but not if your business can’t supply the new demand.

Alternative sources of capital include the Business Development Bank of Canada’s “Market Xpansion Loan” program, which lends up to $250,000 for export-related growth through Participation in prospecting initiatives like overseas trade shows, development of export and/or e-commerce plans, investment in R&D and product development and the purchase of additional inventory for export. Benefits of the program include repayment periods of up to 8 years, customized repayment schedules, collateral requirements that exclude personal assets and prepayment privileges of up to 100 percent of the loan anytime. Other government departments offer financing programs accessible to Canadian SME’s. Export Development Canada, for

online portal that would guide users through the universe of government services have been largely unsuccessful.

One initiative with that potential – the Virtual Trade Commissioner service – is now closed.”

Hurdles remain, but the manufacturing outlook for Canada in general looks optimistic. A recent survey by Canadian Metalworking sister publication Plant conducted

by Bramm Research in partnership with sponsor Grant Thornton LLP is significant. Respondents were 87% small and medium-sized companies and 64% expect orders to increase with 44% expecting higher profits and 32% anticipating higher pricing through 2014.

Biggest reported challenges this year are 61% referring to increasing sales, 58% citing cost reduction and 47% declaring improving productivity as their main issue.

Perhaps most significantly, a full 49% of executives surveyed stated that access to financing is their biggest growth constraint, with 71% intending to finance using internally generated cash flow.

example, offers financial security guarantees, supplier and project financing, export guarantees and money for marketing and promotion. If your business has annual gross revenues of under $5 million, Industry Canada’s Canada Small Business Financing Program offers to risk share with banks, credit unions or caisses populaire for loans of up to $500,000 for expansion of facilities and the purchase of new or used equipment. With multiple and often overlapping programs, getting started can be as difficult as accessing a particular program.

A “concierge service” at www.concierge.portal.gc.ca offers single point access to multiple programs. www.edc.ca www.canadabusiness.ca www.tradecommissioner.gc.ca

For SMEs lack of access to capital combined with inaccessible or ineffectual government services is a onetwo combination that threatens to keep small exporters on the mat. And it shows in the survey numbers: 62% derive most of their revenue from Canada, 27% from the US but Western Europe accounts for a mere 2.6% and China even less. 40% plan to chase new markets in the US over the next three years, essentially the same as those intending to two expanding Canada while 16% target Mexico followed by 13% in Brazil and 13% and other South American countries.

PREPARING AN EXPORT PLAN The Business Development Bank of Canada offers multiple resources for potential exporters, including useful guides to help SMEs begin what can be a lengthy process. BDC recommends starting with an export plan—similar to a business plan but focusing instead on strengths, weaknesses, opportunities and threats your company would

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face in a foreign market. An export plan should help you for manufactured goods drive margins down, increasing define your objectives clearly so that you can use the right volumes are the only alternative to sustained growth and in tactics to reach your goals, and will give you more credibila country of 34 million, a purely domestic market focused ity with lenders, who will ask you to prove your capacity for SME is fighting in handcuffs. exporting. BDC recommends that the plan should spell out It’s a tough world; the metalworking sector needs the which countries are you targeting, what opportunities exist banks and government in its corner. CM there, who your competitors are and how you will market and distribute your products in each location. It should www.chamber.ca www.plantmagazine.ca also state whether you will need to adapt your products www.occ.ca for the foreign market, how you will determine your export www.conferenceboard.ca sales price and how much time will be required to meet www.international.gc.ca your objectives. In addition, the bank suggests that the plan outline the staffing levels needed to implement the export initiative, as well as how the company will reach the target market, for example through distributors or an on-site sales team.

Feedback and a sound methodology to analyze results and change the plan are also important; flexibility is very important when working in foreign markets.

Distribution is a common barrier to entry for smaller exporters. Direct sales, especially on-line is cost effect• Available in - Serrated, Acme Key, Square Key, Tongue ive, but local distributors, with local and and Groove styles regional market knowledge, may be the preferred option when introducing • Option of either single or two-step jaws a new product into a foreign nation.

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Other factors include market demand, DillonManufacturing, Inc. competition and costs such as tariffs, custom fees, currency fluctuations, Peter Seessle | Expertech Dist. & Tech. Inc. value-added taxes (VAT), shipping and 44 Goodfellow Crest | Bolton, Ontario insurance.

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SME Success Stories

Metalcraft keeps a low profile, yet operates a 40,000 square foot facility near a residential neighbourhood with minimal impact on the environment.

The West Coast Way Metalcraft Technology forms sheet for the world from Coquitlam, B.C.

By Jim Anderton, Editor ............................................................................................................................................................................

C

oquitlam, like much of the lower mainland of Western British Columbia, welcomes spring with a verdant rush that makes it seem more green and lush than is possible to Canadians east of the Rockies.

Across from a schoolyard ball field and backing onto a row of comfortable detached homes is a nondescript, straightforward 40,000 square foot building. This is the home of Metalcraft Technology, a second generation business that has called the city home since their founding in 1997.

“My father started Metalcraft Technology in 1997, working strictly with sheet metal.” says Production Manager Feroz Abdulla, adding “He started making mostly power supplies and enclosures.” While electronics still forms a major part of the business, Metalcraft Technology has grown into a firm capable of cutting, bending, welding and finishing a broad range of parts in many metals. The two shift operation is ISO 9001 registered, LEED and Controlled Goods certified and serves the electronics, oil and gas, industrial and many other industries. While many

medium sized firms like Metalcraft Technology works a narrow range of part sizes, handling parts of all shapes and sizes can be seen in process. “The smallest is about the size of a fingernail and the largest is fourteen by five feet.” states Abdulla. Materials include cold rolled steels, stainless, aluminium and surprisingly for a shop handling large industrial parts, copper, a consequence of power supply work and suggests bus bars that carry serious current. While being ISO registered is common in advanced Canadian fab shops, the Controlled Goods certification allows Metalcraft Technology to bid on military work that the firm can only describe in general terms. “I can’t say specifically...we’ve done military shelters, kitchens; they need a certified supplier and we document the work fully.”

While government work operates on a schedule driven by that customer’s unique bureaucracy, the needs of business for fast turnaround parts frequently challenges the engineering and production team at Metalcraft.

“They’ve asked for parts in one day.” laughs Abdulla.

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“Send it to Germany please. Sometimes they’re in a panic and frequently we’ll pull some strings. Often we can give them a turnaround time of a few days. Normally, the first order is in two or three weeks. If they give us some lead time, our QC process can guarantee the parts.” Quality comes up often in the conversation and a tour of the facility shows Kanban and Lean systems everywhere, from individual workstations to the climatecontrolled QC lab.

“First off’s are inspected.” states Abdulla, adding “We have a batch count driven system for small batches, we’ll inspect them all.” We can track tickets through the system by computer. There’s a Team Leader in every department. QC will do inspection reports as needed for the customer as well.”

While the design, production and quality processes are all computer aided, Metalcraft Technology makes extensive use of paper-based systems especially where team members can see process parameters at a glance using wall or workstation-mounted charts.

Lean processes are not new at Metalcraft Technology, which began the process as early as 2002. “The results improved all areas of the operation.” according to Abdulla “Our inventory was too high. We controlled lead times first. We controlled by what we wanted, not by the amount we consumed in the year. It’s a just-in-time system and it reduced our inventory by 25 percent.

Safety improved, also. It (Lean) went right down to how our employees stacked the parts. Our stock room is almost empty, just the minimum we need. We do a “5S” audit every month, it gives the teams the flexibility to be

in control of their stations.”

Like the production systems used in large manufacturing plants, Metalcraft doesn’t operate in a vacuum. “Vendors have to be tied in with us as well. We audit the suppliers. We’re close to our suppliers, We’ve achieved numerous awards from them.”

On the equipment side, Metalcraft Technology is substantially different from most Canadian fab operations. All metal fabricating equipment is sourced from a single manufacturer, Amada. Literally everything that cuts, bends or punches metal. The decision to equip entirely with Amada machines was the result of a “clean sheet” redesign of the production floor two years ago with a layout designed by Amada Engineers. Units include a punch/laser combo and two new brakes. “The goal was to simultaneously add capability and efficiency.” says Abdulla “As technology grows we need to be in that scene as well. We need to be where the new markets are. If we get behind, we can’t make elaborate shapes. We need to harvest that advantage, plus the shorter learning curve, reducing setup time. The all-Amada setup also allows commonality of machine control architecture throughout the shop, with obvious advantages. It’s all common, one universal control. It’s easy to train operators and they’re networked by hard lines and wireless.”

Welding at Metalcraft Technology is by MIG and TIG processes, as well as spot welding. Future plans include a new robotic laser welding system from Amada America that the firm recently exhibited at their Digital Innovation Expo in Illinois. The system is scheduled for North American release early this summer. The new system is

Feroz Abdulla beside the punch and die grinding station. The in-house capability keeps sharp tools at hand, minimizing burrs and rework.

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Metalcraft uses simple Kanban and 5S systems that make responsibility and procedures easy to understand.

part of a highly robotic future for Metalcraft Technology.

“It’s a big factor for us.” declares Abdulla. “We can build things on the fly that we never could before. We don’t need three shifts. On the weekends we can preload it and let it run; there are lots of ways to take advantage of it. In a couple of years we want to be lights out, fully automated.”

Metalcraft is all process control, both in the quality sense and in the firm’s willingness to take on functions not often seen in similarly sized Canadian shops. An

example is an in-house powder coating line, part of a three million dollar plant upgrade. It uses a water-based process to eliminate the environmental and safety risks, as well as the regulatory issues that are tightening yearly due to new rules on volatile organic compounds. The only waste product requiring speciality disposal is relatively benign iron phosphate. With VOC regulations chasing finishing operations out of many Canadian fab shops, why take on in-house powder coating? “Again, it’s about control. Fuel prices and shipping got too high.” says Abdulla adding, “With our Kanban system we wanted total control over the process.

We can change colours on the fly and we control packaging. We can package and ship directly to customers, rather than receiving the products packaged then checking them again for damage. It runs about 10 hours a day.” The result of this attention to process detail is a 30 percent jump in sales this year, the best ever for the company. While Eastern Canadians might assume that an operation located west of the Rockies would be restricted to local markets only, Metalcraft has a healthy sales mix of 20 percent US-based customers, 20 percent to the rest of Canada and the balance locally-based, with some exports as far as Taiwan. While many manufacturers struggle with the dollar exchange when shipping south of

Feroz Abdulla

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Untitled-2 1

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Metalcraft’s automation allows small and large runs to coexist on the shop floor

Measurement takes place in a climate controlled room. Note the posted procedures.

Metalcraft makes extensive use of this Amada 357V Apelio III laser/turret punch combination machine. Feroz Abdulla notes that the system is very versatile and that another combination machine is a future buy.

This big Amada HDS2204NT is a 243 ton, electric/hydraulic press brake with a bed length of 14 feet. The unit has a 5-axis backgauge.

This automated Amada Astro 100NT robotic bending cell uses a servo drive bending robot and a six axis part handling robot for high throughput. Parts of up to 33 pounds and 31.5 by 39.5 inches can be processed.

Metalcraft uses an environmentally friendly water-based powder coating system with minimal waste.

the border, Metalcraft Technology uses fast turnaround times to win customers who need their parts on time.

“Our customers are okay with shipping costs, they just want their parts on time.” relates Abdulla “Some of our US suppliers have had to wait six weeks or more. Our customers are willing to pay the shipping.”

Metalcraft Technology’s enviable success is ultimately a combination of modern manufacturing technique,

the right equipment and a cooperative collaborative approach toward customers and vendors. “Everything is referrals.” states Abdulla “It might be about engineering, or just looking at their parts and seeing how they could be changed to make them better. It’s about being aware of what customers want, how to talk to them and how to solve their problems. It’s not about selling them anything, it’s about how we can help.” CM

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First she cut 50% of the energy consumed by her compressors.

Then she took a deep breath and looked at the rest of her business.

Once you start seeing the benefits of our incentives for upgrading compressed air systems, you’ll want to look into making other parts of your business like lighting, motors and HVAC systems more efficient too. When you do, you’ll be joining companies like DJ Galvanizing, RNR Custom Cycle and TRW Automotive who are

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OPA_10198946_14_B2B_CDN_metal_working

CYAN

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SME Success Stories

Radical Torque Tools New World Technologies makes tools with a twist

By Nick Healey, Associate Editor ..............................................................................................................................................................

P

ulling up to New World Technologies in a quiet subdivision of Abbotsford, B.C., one gets the impression that this is a well-run business.

The gleaming reflective glass on the main building’s exterior is more reminiscent of a software company than a machine shop, but huge loading bays in an adjacent building put those thoughts to rest.

Inside, the wood-lined walls of the lobby have a distinctly west coast feel to them, and local business awards stand along the top of the receptionist’s desk.

But the good looks and the slick first impressions aren’t just a façade. Once you get into the guts of the machine shop things are just as impressive, and the staff who work there ooze a passion for what they do.

But what exactly are these guys making? To hear machinist/programmer Jason Adams describe it, they’re

‘torque systems’, or tools for ‘controlled bolting’. Basically, torque wrenchs using planetary gears to deliver the exact amount of torque – within 3-5 per cent according to their website. And to be clear, while the company goes by New World Technologies, their actual brand is Rad Torque.

When asked to describe how the systems work, Adams sums it up: “Basically,we’ve strain-gauged the end of the annulus and put this data recorder on the end of it so that it can give (users) a red light or a green light,” And if that didn’t make it user-friendly enough, the torque systems are also Bluetooth-capable, so they can be hooked up to a smartphone, and can show you spikes in torque in real time.

Some of the most common applications for the torque systems are the energy sector – particularly wind power

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– and industries like bridge-building, heavy equipment, and aerospace. But there’s one other area that Adams and machine shop supervisor Greg Doughty are also quick to point out.

“We offer a lot of customizing – we’ll fit a reaction arm to your application,” says Doughty.

The company seems to have very few projects they won’t tackle, and even supply special tools for the production of the new Boeing 787, where ultrasonics actually shut the tool off.

IN THE BEGINNING: The story of how the company actually got founded is a pretty classic example of a Canadian success story - both for it’s humble beginnings and it’s desire to remain that way.

“The owner [Dan Provost] is pretty humble. He could have been out (on the shop floor) and you wouldn’t have even noticed,” says Pat McFadden, Rad Torque’s operations manager.

To hear McFadden tell it, Rad Torque’s origins rival that of the Magnas and the Linamars of the world.

Provost originally worked in the industry in sales. In the early ‘90s he started making reaction arms because the products his company sold needed them, and there was a large market for custom reaction arms. At the

same time he would also fix gearboxes on the side. After his suggestions on how to improve the gearboxes fell on deaf ears, Provost decided to fashion the parts himself out of his garage in his spare time.

“He paid the price. He had to take grocery money to buy parts, then assemble gearboxes and travel up to northern B.C. to try and sell them,” McFadden says.

The rest of the story is history. The company grew little by little, expanded, and now owns six buildings and about 30,000 square feet of shop space in the western suburbs of Abbotsford.

They have over 75 employees – and are looking for more – and have about 20 machine tools spread across their shops, and the odd piece of fab equipment.

They make anywhere between 60,000 and 80,000 planetary gear systems a year, and that number could be higher in the coming years. They also manufacture almost everything in-house, save for the circuit boards and displays. They even roll their own bearings.

In the middle of explaining everything they do though, McFadden stops himself, realizing the company is bigger than he led on.

“There’s actually seven buildings because we have one in Holland,” he realizes. That facility primarily does sales and repair, but Europe, with it’s wind power industry, is one of their key markets.

Greg Doughty (left) and Jason Adams (right) show off some of the various sizes of torque wrench and reaction arms the company manufactures.

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New World Technologies shop floor

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After a few minutes of talking to Doughty, it’s quite apparent that his knowledge and passion for the job are the big drivers behind his number one priority for the shop — production.

As Doughty and Adams tour us around the spotless shop they detail the efforts made to keep the place looking clean for whenever high-profile clients like Boeing might make a quick drop-in visit.

“We mop every Wednesday and Friday, and the guys are responsible every evening to make sure this place is swept and the benches are clean.

There’s no excuses,” Doughty says.

Adams even somewhat apologizes and mentions that we caught them at a high production time, so the shop was a bit dirty — but there appeared to be nothing more than a few chips scattered here and there across the floor.

This was about as clean as it gets. But a clean shop isn’t the reason for Rad Torque’s success. Obviously there has got to be more than tidy benches and

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Annulus before grinding, during and after machining.

clean floors driving their success.

“I can’t stress enough how what’s got the company to this point here is the willingness to try new tooling and constant cycle time improvement from Jason,” Doughty says.

Doughty and Adams make it very clear that they take great care to focus on getting the most out of their tooling and the types of programs they run.

“I can’t say enough how good of a program I have,” Doughty says. “I’m an old guy, but you’re only as good as your tools. We use all the practices for high-feed machines. Sandvik, OSG, they come in and we let them test on the floor. We don’t test blind.

SumpAd_CanMetal_6_14_Layout 1 5/5/14 4:51 PM Page 1

“We have a drill test where we take a three inch bar, mill a flat on it and just start pounding holes,” Adams says. “See who does the best.”

The pair are also quick to point out the new pride and joy of their shop, an Okuma MB 4000H lathe they recently purchased from distributor Thomas Skinner.

Doughty notes that the shop primarily machines very hard materials, notably heat-treated and annealed steels, making a machine’s rigidity of paramount importance.

“We use E52100 too, that’s like murder,” he says.

But so far, the new equipment has seemed to garner lots of praise from the pair, and most importantly, been a boon to the company.

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“We’ve set (the horizontal) up where we’ve had a lot of good running jobs. We had 97 per cent production for a week,” says Adams. “With the Okuma it has more canned cycles, more options, more abilities to do exactly what we want to do.”

They also now have the ability to add a pallet system to the horizontal lathe, and because of their high production, are making efforts to get more automated.

A LOOK AT THE FUTURE:

(Above) An operator sets up a program on the company’s new horizontal lathe (Below) A machined part that will house a planetary gear system

Like any company, they eye growth and expansion, but have to deal with some of the same challenges across the country – notably skilled workers.

When asked about the way they address staffing, and skilled trades they take a positive and practical approach.

“You’re better off building them… Their heads are empty,” Doughty jokes. “They’re straight out of school so they’re still in that learning mode.”

“We find we get a lot better retention when you take a landscaper, who has a mechanical aptitude, and you tell them, ‘okay here’s an opportunity.’ Some of our best guys come from that,” McFadden says. “We apprentice a lot; we have two apprentices right now.

“It’s hard for a guy off the street to compete. Even

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about the business that how can the people below him, not be?” Doughty asks.

And if there’s one thing that passion is likely to bring, it’s more business.

“We’re always moving forward in some way or another,” McFadden says.

So, luckily the company has left itself room to expand.

They own more than 10 acres of the lush, green farmland around their shop - something they might just need to tap in to the way things are going. CM One of the torque wreches with a reaction arm in action.

though they’ve only been taught on the floor, they’ve been taught everything about our floor, so they just eat people up,” Adams.

“These guys have got a lot of knowledge here, and our parts don’t run unless they’re concentric. So these guys are learning stuff they need to learn in school. There’s no button pushers here,” Doughty notes.

While the company has its heart set on automating the process a little more, they also won’t rule out the idea of adding some five-axis machines down the line. But for now, the addition of a horizontal machine is enough of a boost to production.

“That five-axis probably is in the future, but like I say, the focus is on the horizontal, and getting that pallet system on the floor and getting to semi-lights out,” Doughty says.

One other thing stands out about the operations at Rad Torque. The employees seem to have a strong sense of community and a tight-knit team atmosphere. The shop has a hockey team, and the owner, as well as some of the other employees, are involved in the local drag racing circuit.

“We all make parts for the same company,” Doughty says.

“If you look at (the business) as just bricks, mortar and machines, they aren’t going to run as well as if you look at the people who are running them, treat them fairly. And that’s what we try to do,” McFadden says.

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As Simple as an ATM The Iscar Matrix system simplifies cutting tool control.

By Nate Hendley ......................................................................................................................................................................................

T

he Matrix is more than just a movie with Keanu Reeves and flying drop kicks. It’s also the name of a cutting tool inventory management system featuring computer-controlled tool dispensers. The system is designed to offer a convenient and economical way to store, issue, track and order cutting tools. While the Matrix system is mature, the Matrix-TM software that runs the system has been recently tweaked.

“They’ve made a lot of improvements [on the software] in terms of user-friendliness … they’ve added a lot more things that are picture driven … you can move around a lot easier,” says Tim Marlatt, who works in systems implementation for Commodity and Tool Management Services (CTMS), a business branch of the International Metalworking Companies (IMC) Group.

IMC is a network of over a dozen cutting tool firms including Iscar and Tungaloy that provides engineering and manufacturing solutions.

“Matrix is a product built, designed and supported by the IMC Group,” explains Marlatt.

The enhanced Matrix-TM software was released “globally, towards the end of 2012 … but didn’t [appear] in Canada until first quarter last year,” he adds.

Here’s how the Matrix system works: when authorized personnel need a new tool, they do a search on a touch screen PC monitor on top of the tool dispensing cabinet. Once a selection is made, the appropriate drawer containing the tool opens in the cabinet. The machinist simply takes the tool or part they need from the correct bin (a smaller storage unit inside the drawer) then closes the drawer. The system is designed it make tool dispensing as simple as using an ATM machine. A back-end software program installed on a company PC serves as master-control, monitoring the Matrix network in a plant and compiling a database.

Benefits of the Matrix system include shorter distance to point of use (which cuts down on the time it takes to issue tools), round-the-clock tool access, less handling in warehouses, automated ordering and inventory control, statistics and reports that allow shop owners to manage tool costs and consumption, reduced purchasing and administrative expenses, less time spent looking for missing tools, the ability to track tools and their usage and ensuring the right tools go to the right person.

The tool dispensing cabinets are primarily made out of ABS plastic and are black in appearance with silver

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trim. The cabinets come in two formats: “Touch” units feature a PC with a 15 inch touch screen monitor while “POD” units lack such equipment. The POD cabinets are designed to supplement the Touch cabinets (one Touch unit can control several PODs). Both Touch and POD cabinets are electronically networked to the Matrix master-control on a company PC. Cabinets come in either Maxi or Mini size. The Maxi cabinet is 51 inches wide x 28 inches deep x 57 inches tall (to the top of a touch screen). The Mini cabinet is 33 inches wide x 22 inches deep and 30 inches tall (to the top of the touch screen). Empty, the Mini weighs 350 pounds while an empty Maxi weighs 750 pounds. A Mini unit cost around $10,000 while a Maxi unit is double that.

“The Mini is essentially a tabletop version” that can fit on a workbench, says Marlatt.

The Series 33 uses the latest in engineering The Maxi cabinet can be fitted with up to 12 drawers while the Mini can be design and grinding capabilities to handle fitted with five. One Maxi drawer can aggressive ramping, pocketing and slotting take up to 198 bins while a Mini drawer of difficult materials such as Stainless Steel, can take 96. The bins can hold all manTitanium, and Inconel* ner of tools from inserts, drills and end mills to Cat 40 type tool holders. It’s not recommended to put more than 50 kilos (110 pounds) of tooling in a Maxi drawer or 20 kilos (44 pounds) in a Mini drawer. Drawers on both the Maxi and the Mini can be locked as a security precaution.

The Matrix master-control can be

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The Matrix system is available in large and small cabinet configurations

used to track data and create reports on tool prices, stock levels, usage history, etc. This information can be compiled into documents that are viewed in Excel or pdf format. The master control program can also be set to automatically send out warning emails or print purchase orders when stocks run low. This feature can help eliminate “tool hoarding” by staff — a common occurrence when machinists are uncertain as to their plant’s inventory and fear tool stocks will run out in the middle of a shift.

“Because the machine is there and runs 24/7, your operators are far more confident that the tooling they need [is always available]. Staff don’t have to take extra tools for their shift,” says Marlatt.

The Matrix master control also tracks exactly where

tools end up. Matrix users can customize the system to track tools by cell number, machine number or shift number — “the machine will feed that information back to whoever is concerned about it … in a piecework shop, they can have a tough time tracking their tooling use or their tooling spend because they’re doing one-offs,” says Marlatt.

Some of the changes to Matrix-TM software involved improved security features designed to ensure only authorized personnel can access the system.

The new security features involve fingerprint scanning, says Marlatt. The Matrix can also be set up to allow login via barcode scanner, magnetic card reader, proximity card reader, etc.

According to Marlatt, over 2,000 shops around the world including 200 in Canada, use the Matrix system. The Maxi is the more popular format, something Marlatt ascribes to “the bigger is better mentality.”

Plants can put Matrix cabinets in one centralized location or, in the case of larger facilities, place one cabinet near each machining cell. Setting up a Matrix system usually takes two days, including installation, programing software and training staff.

Given that most workers will be using the Matrix to access tools, training lasts no longer than 10 minutes.

Part of that time is spent scanning staff fingerprints to set up new users, says Marlatt.

Marlatt says the Matrix system isn’t just designed for large plants with huge stocks of cutting tools. Small shops can also benefit from installing the Matrix system. In addition to decreasing the amount of time spent hunting for tools, having a Matrix gives small firms a clearer idea of their inventory needs, which benefits the bottom-line.

“A lot of shops will carry excess inventory. A lot of the reason is they don’t know what’s sitting in their [tool cabinets],” states Marlatt. CM

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Cutting Tool Inventory Costs – Software Addresses the Problem

By Nate Hendley andvik Coromant believes their AutoTAS tool inventory management system is the answer to some nightmarish tooling scenarios. According to Sandvik Coromant, 60 per cent of tool stock in a typical manufacturing operation is obsolete, 30 – 60 per cent of tools aren’t stored properly and 80 per cent of tools in stock are used only twice a year.

Such inventory woes dramatically impede employee performance: 15 per cent of scheduled jobs are stopped or delayed due to lack of appropriate tools, 20 per cent of employee time is spent looking for tools and 20 – 30 per cent of extra time is spent administrating orders because of delays caused by not having the right tools, states information from Sandvik Coromant.

Enter the AutoTAS tool inventory management system,

S

designed for the “optimization of cutting tool logistics,” says Mike Hammond, Canadian services manager for Sandvik Coromant Canada, in Mississauga, Ontario.

AutoTAS (the acronym stands for “Tool Administration Program”) is the name of a proprietary software program from Sandvik Coromant that controls cutting tool dispensing cabinets made by the SupplyPro. The latter is a San Diego-based manufacturer of industrial vending equipment. In addition to controlling tool access, AutoTAS tracks inventory levels and monitors which tools are being used most often and for what purpose. Operators can configure the system to send out warning emails when specific inventory is getting low. The system is designed to reduce machine downtime, get the right tools to the right person and cut tooling costs by avoiding overstock.

The latest version of AutoTAS software has “a new user interface called SmartPick. Previously the user interface and items were more text-based, Serving the code-based. This latest interface is Automotive Parts really picture-based,” says Hammond.

Manufacturing The SmartPick feature was introIndustry for duced at the end of 2013, he adds.

55 years The tool dispensing units controlled

by AutoTAS come in two main formats: Engineered the “SmartDrawer” cabinet (which resembles a silverware cabinet with a Solutions for 15 inch touchscreen computer monitor High Production on top) and the “SupplyBay” helix disManufacturing penser (which resembles a snack food vending machine).

“Smart Drawer is the choice for most installations in Canada”, in part Manufacturer of Exclusive North American Dealer for because it’s very flexible in terms of the Custom Designed Chucks and Fixtures Gamet DELTA Series Jaw Chucks size and quantity of products it stores, for High Volume CNC Turning Collet, Diaphragm, Offset and Bruckner Live and Dead Centers, and Face Drivers says Hammond.

Many Other Chuck Designs Depending on how the system is set up, users can access SmartDrawer with a proximity card, swipe card or touchscreen password. Once access is gained, machinists use the touch-screen computer to find the tool they’re looking Old Indian Trail, Middlefield, CT 06455 USA | T: 860-349-1044 | F: 860-349-1815 for. The computer can be programmed WWW.POWERHOLDINC.COM

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to display tools according to machine type or job-type, fers lessons on various manufacturing-related topics. among other categories. The display screen can also “We have a full-blown network-based system at the indicate what spare parts are available for a given tool. A Productivity Centre that we utilize for demonstration machinist selects the tool they want, in the quantity they purposes with customers,” says Hammond. need, and the appropriate cabinet drawer opens.

If increasing plant efficiency is the main advantage of SmartDrawer cabinets can be stocked with all manner AutoTAS, Hammond also sees another benefit. of “consumable and returnable materials” as SupplyPro Manufacturing customers who use the system often puts it. This includes production components, spare discover they’re harbouring “obsolete inventory … a lot parts, safety supplies, welding supplies, electrical parts, of customers know what [tooling] they buy but they don’t calibrated tools and instruments, power tools, vehicles actually know what they use and where it gets used … keys, tool holders, etc.

[AutoTAS serves as] a real eye-opener,” he says. CM Each drawer in the SmartDrawer cabinet be fitted with two, four, eight, 12, 16 or 24 storage compartments covered by lids. A high density storage drawer with 48 compartments is When the coolant becomes a liquid tool. also available for small items such as inserts, taps, drill bits, tiny tooling, fuses, switches and keys.

The SupplyBay helix dispenser, meanwhile, comes with either a seethrough or solid door and is designed for tough engineering environments that require a high-volume of tools and supplies. SupplyBay works like a vending machine—operators press the appropriate button on a keypad controller for an item then retrieve it from the slot on the bottom. The SupplyBay can stock cutting tools, welding supplies, safety supplies, batteries, maintenance items and shop items. A suggested inventory from SupplyPro includes gloves, batteries, inserts, drills, taps, hand tools such as utility knives and screwdrivers, fuses, etc.

SupplyPro has other industrial vending hardware, such as the SupplyTower, designed to store narrow items like torque wrenches up to 48 inches long.

We are here to help you One AutoTAS powered computer can control multiple tool storage cabinets. boost your productivity, In a multi-cabinet environment, economic efficiency and “AutoTAS would be installed on a netmachining quality. work,” explains Hammond.

Our specialists support you to get the He believes that “500 plus” plants best out of your machines and tools in North America are currently using with the liquid tool. the AutoTAS tool dispensing system.

Sandvik Coromant use an AutoTAS Please contact us for your local distributor. system of their own at the Sandvik Academy in Mississauga, Ontario.

Designated as a Sandvik Coromant Productivity Centre, the Academy ofBlaser Swisslube Inc. Goshen, New York Phone 845-294-3200 mailboxusa@blaser.com www.blaser.com www.canadianmetalworking.com | JUNE 2014 | 61

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SME Success Stories

World Cruising Kanter Marine builds world-class yachts

By Nestor Gula

T

he depth and strength of the Canadian manufacturing sector is very broad. This manufacturing prowess does not just exist in the big conglomerates which have shops across Canada but in small specialized facilities dotted throughout the land.

Although unfamiliar to many Canadians, Kanter Marine is known throughout the sailing world as a premier builder of custom steel and aluminium yachts. Their yachts are not built for the casual sailor but for mariners who want to sail long distances, crossing oceans, exploring exotic islands and circumnavigating the globe.

As they are meant to conquer the seven seas reliably and comfortably, they’re not small boats; the sailing yachts start at 47 feet and go up. Construction time is more than a year on a cruising yacht – typically 14 to 24 months. This is a labour intense operation with a high investment. Since most of their work is custom, prices

vary but their cruising yachts start at under one million dollars to a high of 3 million. “We don’t try to compete with the production builders that build multiples of boats,” said manager Manfred Kantor, Jr. Located in St. Thomas, Ontario, a short drive south of London, Kanter Marine occupies two medium sized facilities where they build their large sailing vessels and commercial water craft. The business started in 1977 by Manfred Kanter. He came to Canada in 1962 with his wife Lisa. “He came to Canada for a better life, more room and a new start,” according to Manfred Jr. “I don’t think that he was of the mind to start boat building when he came to Canada. He got involved in sailing early on when he came to Canada. He had a six-meter boat which was a prestigious class of sail boats.”

He studied boat building in Hanover and with that knowledge built his first boat. “When my brother and I

Above: Brothers Manfred Jr. and Christopher in front of the 53-foot custom yacht. (photo: Nestor Gula)

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A Kanter Marine built Bouganvillea 65 gracefully cuts through the water. (photo courtesy of Kanter Marine)

were young he built his first boat which we as a family cruised not around the world, but a good bit of the world, for three years.” Manfred Jr. was ten and his brother Christopher, who is a co-manager of Kanter Marine, was seven when they set off on the adventure. “We cruised the Caribbean, the US Atlantic coast, the Carolinas, Virgin Islands for one year. Crossed the Atlantic to the Azores, England, Holland, where we spent a winter, Spain, Portugal, Madeira, the Canary Islands, sailed back to the Caribbean for a third winter and home in the spring.”

This first boat was constructed out of Cor-Ten steel.

“Cor-Ten is an alloy of steel that is often used to build bridges; it does not perforate, it only rusts on the surface.

The thought was that the metal boat would have a longer life,” said Manfred Jr. On arrival back to Canada he was asked to build a boat for an acquaintance and Kanter Marine was born. “The very first boat that was built under the name Kanter Yachts was a 24-foot aluminium sail boat,” he said. “It is presently in our yard and we will

The Eckold former shapes panels (photo courtesy of Kanter Marine)

update it. It has been actively sailed since 1977 in the Great Lakes. Picked it up in Long Point. One of our past employees had it most recently and we bought it from them.”

Most of the boats built

by Kanter Marine are still sailing and this is a testament to the excellent construction techniques and the care that is exhibited by the company.

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With the frame constructed, the plates will now be welded on. (photo courtesy of Kanter Marine)

more accepted in boat building. Kanter Marine is strictly a builder of boats. They don’t do any of the design work and get the designs from naval architects that they choose or that the customer supplies. Besides sailing yachts they also do some power yachts and have expanded into a series of smaller commercial vessels.

The business started building boats in Port Stanley, a town on Lake Erie some ten kilometres south of St. Thomas. “We were in some leased property and although it was nice to be right on the water, the building was not ideal for what we were doing so we moved to St. Thomas in the early 1980s,” he said. In classic family business tradition, both Manfred Jr. and Christopher have worked at Kanter Marine since their teens – as summer jobs and part-time during the year and then moving to full time as they finished school. The decision to enter the

A completed boat being towed out of Kanter Marines main shop. (photo: Nestor Gula)

family business was easy for both brothers. “We saw the business grow and support our family reasonably well.

I think it is a very interesting career. You create things out of plates of steel and aluminium. You build it until it leaves and then you hear about it years later as it is sailing across every ocean, doing expeditions in Antarctica” said Manfred Jr. “It is pretty rewarding. I don’t know what else I would do. There are a lot of things that would be much easier than this.” He said his dad, Manfred Sr. is still involved. “He oversees everything. As my father, he will always be the CEO but me and my brother Chris are the two officials in the company.”

There have been many changes to the industry although the basic methods of boat building have not changed. The frame is constructed and then shaped metal panels are placed in the appropriate places, welded together and ground smooth. “The boats we make were and are hand made,”he said. In the past the boats were much simpler, not in the hull shape or design, although there have been some evolution of hull design for efficiencies and performance, but in the complexity of the electronic systems. “In those days you did not have anywhere near the complexity of systems of navigation, aids to make it easier and faster. It gives the ability to handle a boat with fewer people.”

While the method of construction has not changed much the equipment to manufacture the yachts has.

When they started, all metal panels were cut with oxy-

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acetylene torches. As the company grew they moved to hand-held plasma cutting. “Now we use CNC plasma cutting,” said Manfred Jr. “We have not gone to water jet because plasma provides suitable accuracy for our needs. We would not cut more that 1/2-inch aluminium or steel. There are some components that are thicker.

But as far as hull plating it would not be more than 1/2–inch. It is thicker on the bottom and gets lighter as it goes up. We recently upgraded to a much larger table, a 12 by 24-foot table and a Hypertherm power source.” They bought this unit used from a neighbouring company that was upgrading their equipment. “There is no way we would be able to remain competitive without the efficiency that a CNC plasma table offers,” Manfred Jr, notes. He said that if the economy allows, he would not mind getting a water jet system to cut the metal.

The welding of the vessels is all done with hand-held welders. Manfred Jr. does not really see where automating this process would work for Kanter Marine as most of the work they do is custom order. Their first welder was a Miller power source that had an AC TIG module on top. “We had that until recently,” he said. “You could weld steel with that machine and then TIG

aluminium.” They recently purchased two Fronius welding machines. “We were working on a couple of Coast Guard pollution response vessels that required a high quality level of welds,” he said .The specifications called for all the welds to be x-rayed so they made a decision to upgrade their welding power sources. “Now we are using computer-controlled cutting and better welding machines. There are more efficiencies,” he said.

The main shop, where the boats are built is about 8,000 square feet. The other building houses the offices and the wood shop for the boat interiors. Manfred Jr.

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The complexity of the wiring system of new yachts is evident. (photo: Nestor Gula) www.canadianmetalworking.com | JUNE 2014 | 65

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Manfred conversing with one of the employees on the shop floor. The newly purchased 12 by 24 plasma cutting table with Hypertherm power source is behind. (photo: Nestor Gula)

said that the biggest boat they built at the shop was 123foot long and its bow jutted out of the building. During our visit, there wasn’t much machinery in the building as the space was dominated by the nearly completed hull of a 53-foot yacht. The CNC plasma table occupies one corner of the space while the opposite corner houses some machining equipment that includes a shear, a brake, a lathe and a massive metal forming tool made by the Swiss-German firm Eckold. This machine forms the cut plates to the proper contours to fit the hull profile.

Most of the hull work is done by the two welding units and a selection of hand grinders.

As boat builders, Kanter Marine must make boats to a variety of standards. “We have our own in-house QA,” said Manfred Jr. All welders have the proper “tickets” including the CWD47.2 – Fusion Welding of Aluminium.

He said that there are no general standards for boat building. When nothing is specified in the contract they use the ABYC (American Boat and Yacht Council) standards that pertain to the majority of the boats. Some are CE certified for a European vessel and other have Lloyd’s Register. All commercial boats built by Kanter Marine have to be Transport Canada certified.

Manfred Jr. said the economic downturn has affected their business by slowing down orders for the pleasure yachts. This was one of the reasons they ramped up their involvement in building commercial vessels. “The commercial boats are more demanding in terms of documentation, correspondence and record keeping. It is a challenge. We have done some 60mph- plus boats

for the RCMP with shock mitigating seats and other high-tech features. It is also rewarding to make a large pleasure boat.” There is an added benefit to making the two types of boats. “The commercial business teaches us. It produces a better yacht in our opinion. Some of the things that are more carefully done on a commercial boat, done to a higher standard then on a pleasure boat, and we carry that over to the yachts. And vice versa,” he said. “Yachts demand a higher level of finish that we can work into our commercial vessels . It makes the boat better. It is important to be diversified.”

A roadblock for their commercial business is the United States. “It is difficult for a Canadian company to sell commercial vessels to the US,” he said. “You have to build the boat in the US. Some Canadian and other non-US yards set up facilities to build the whole or part of the boat there.” This is due to the Merchant Marine Act of 1920 commonly referred to as the Jones Act. It stipulates that “all goods transported by water between U.S. ports be carried on U.S.-flag ships, constructed in the United States.”

In all Manfred Jr. expects Kanter Marine to continue operation for the foreseeable future. “We hope to be doing this for another 30 or more years. My brother and I both have children and the hope is that the children can carry the company forward,” he said. “Yacht building, big or small, pleasure or commercial, is quite sluggish, but there are signs that it will end soon. We are building one nice yacht project now and we are talking to some other people about various projects as well.” CM

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FABRICATING & WELDING NEWS

DC Welder Summit invites the world Lincoln Electric Showcases new DC welding power sources

By Nestor Gula ....................................................................................................................................................................................................

DC Generator welders are lined up in a row as attendees to the DC Welder Summit file in.

The SA-400 I is designed for the international market and can pump out 425 Amps of pure DC welding power and 3,000 Watts of AC power.

O

Welding demonstration at the DC Welder Summit in Toronto

ver 30 people from all over the world descended on Lincoln Electric’s facility in the north-east corner of Toronto to attend the DC welding summit that the company hosted on May 13th and 14th. Although Lincoln Electric is an American company, the engine driven DC welders are fabricated here in Canada at the plant in Toronto.

The two day event commenced with a tour of the factory and a demonstration of the DC welders. Two new welders, the SAE-300 HE and the SA-400I were part of the showcase. A discussion followed the open air presentations. The next day the attendees visited Lincoln Electric’s facility in Mississauga and viewed Automated welding processes and Aluminium solutions.

Attendees were from Mexico, Venezuela, Nigeria, Abu Dhabi and some North American clients as well. The organizer of the event, Bruce Clark, Director, Marketing & Export Sales, for Lincoln Electric, said the event was geared primarily for people involved in pipeline construction. “We had some clients from Iraq and Egypt who were invited but could not come because they could not get a visa in an expeditious way.” He said that this is an important region for their sales but an Iraqi

Welding demonstration at the DC Welder Summit in Toronto

With 390 Amps of pure DC power and 3,000 Watts of AC power, the domestic SAE-300 HE (High Efficiency) comes with either a Perkins or Kubota diesel engine.

citizen, to come to Canada, first must travel to the Canadian Embassy in Jordan to get a visa.

The SA-400I is expressly designed for the international market. It features a 32.7 horsepower four-cylinder Perkins diesel engine and can pump out 425 Amps of pure DC welding power and 3,000 Watts of AC power. The SAE-300 HE (High Efficiency) puts out up to 390 Amps of pure DC power and 3,000 Watts of AC power. It is meant for the domestic North American market. Both are multi-process power source.

“The beauty of the machines you see out there is that we can actually control the amperage and the voltage,” said Clark. “When you are welding on a pipe from vertical down, as you go down you are trying to maintain a welding arc and you are trying to deposit weld metal. If your amperage is too high then the metal filler has the tendency to spill. So voltage is what is used to try to keep the pressure on so that metal stays in place. With other machines if you set it at 100 amps then you automatically get 20 volts. You have no choice. With our machines you can set it at 100 amps and set it at 10 volts, or thirty or 20 you can set it at any voltage you need. You can’t do that with an alternator/rectifier power source. You have a given voltage and a given amperage.” CM

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SME Success Stories

Building a

Boom Town

Glenmore Fabricators is making its mark on one of Canada’s fastest growing cities.

By Nick Healey .........................................................................................................................................................................................

I

t’s hard not to notice the scope of expansion going on in Calgary these days. Housing developments dot the city’s perimeter, a brand new tower gleams in the city centre, and roads are being built faster than GPS systems can manage. It’s definitely a different city than your father’s Cow Town was – and as a result of the boom, someone has had to step in to get this city built. Enter, Glenmore Fabricators.

Glenmore Fabricators has been something of a parable for the pace and style of construction in the city. Glenmore started as a miscellaneous shop in the year 2000, handling around $1 million worth of business a year. Over the last 14 years, as the city has grown, the shop has grown in lock step to become a company with two locations, around 100 employees, and one that handles roughly $30 million worth of business on an annual basis.

Sitting in the boardroom of the semi-finished upstairs at Glenmore’s new facility in southeast Calgary, it’s obvious that Jason Gillen, the shop’s general manager, is a big

reason for its success. Gillen started at the shop in 2004 and never looked back, helping establish the company as one that would be unafraid to go after the big business, and exciting projects.

“When you look around at these square boxes, you know, there’s not much ‘vision’ and that’s what we call ‘gravy’,” Gillen says.

“Then there’s the times where they come up with the funkiest stuff, and they come to us and they say ‘how do you make it real?’ and that’s where we specialize. We do a lot of the complex work. A lot of the things most fabricators won’t touch.”

Two notable projects for the company have been ‘ornamental’ fixtures for Calgary’s recent downtown centerpiece, The Bow tower, where the pieces

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were 60,000 pounds and 6 stories high. Another is and the Mount Royal Conservatory, which he and Glenmore’s production manager My Lam are particularly happy about.

We had the largest crane in Canada there,” Gillen said.

“We actually couldn’t even assemble the whole truss on the ground, we actually had to assemble most of it in the air.”

“We had to bring in steel and it was 342 pounds per foot.

It was monstrous and so those were actually embedded in concrete,” says Lam. The company is also establishing themselves as a business that can add value through their engineering expertise. This was part of the reason they decided to build a second location that could handle higher volumes of work.

“The market is starting to change and so are we,” Gillen says. “We built this shop so we could handle capacity within the market, but also to get into the design-build. We’re hoping to have an engineering firm.

“Most of (our engineers) have experience in consulting that help us do design builds – helping us get our customer their final package in time.”

The shop is so new (they moved in this past January) that some areas are still getting the finishing touches, but eventually it will be home to an in-house engineering firm.

Gillen actually took a very hands on role in designing the layout of the shop, and incorporating their new Voortman machinery into what they do.

“Your flow is always to go through one machine and then go to the next and allow it to bypass if you don’t need it so you don’t create bottlenecks,” he says.

Gillen, like any good shop manager, seems to be relentlessly focused on efficiency. He explains that automation

and efficiency are what took Glenmore to the level they’re at, and believes they can continue to follow that path on the road to more expansion.

“You’re always trying to find a more efficient way of doing something. We did a test here on some tubes, where we had to cut them in very complicated shapes. It did one tube in five minutes – we figured it was two hours for your best guy.”

“At my other fabrication shop if we do 20-30 pieces per shift, that’s pretty good. Processing wise, this (new shop) will probably do 120 pieces per shift.

“We’ve had guys fabricate something and they’ve cut the beam too short or they put the piece in the wrong spot. As soon as you put in the human value, you’ve created sources of error. We’re just trying to limit those sources of error so we can fabricate fast.”

Then of course there’s the issue of finding good labour in general – which was another reason Gillen chose to focus on automating, and simplifying processes as much as possible. He also laments the fact that the problem can be particularly trying in Alberta. Due to the nature of the oil and gas industry in the province, it’s not uncommon for your workers to suddenly bolt for the oilfields and go chase after higher wages.

He emphasizes that the simplicity of the new equipment was a key factor in their decision to base a lot of the new shop’s design around it.

“A lot of it’s pre-determined by creating batches and NC1 files so the operator is just pressing play,” Gillen says.

Giles Young, sales manager for All Fabrication Machinery, explains how Voortman machines are able to run in a fairly automated manner.

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P

Above: Glenmore’s General Manager, Jason Gillen, stands beside the control for the laser unit of the firm’s Voortman line.

Right: Laser cutting, and a streamlined workflow system have dramatically improved the shop’s productivity.

“As long as you put the correct beam on there, the machine will know because it’s in the file. If you put the incorrect beam on there, it’ll tell the operator,” Young says.

“Guys aren’t running tapes anymore. That took a while to learn, to trust the machine, because any time you’ve got to run a tape and double check, now they’re finally like ‘okay the marks are good and we can weld on it.’”

Gillen elaborates further on the idea of taking a drawing and making it a reality.

“The equipment that we have now ‘talks’ to our detailed design software,” he says. “So the minute you take something and you draw it, and you print it you’ve created a source of error. The person who’s interpreting the drawing can interpret it incorrectly. This goes right from our 3D modeling software and right into the machines.”

“The interesting thing about Voortman is they were fabricators and they started manufacturing equipment… so when they have a problem in the shop, they go up to R&D and say, ‘make the machine do this’.”

Since Glenmore itself is so big on custom work for its clients, they felt having machinery that was customizable was helpful as well. The shop has sawing, beam drilling, and robotic plasma on site, but choose to contract out a lot of the bending work they need done. They’re also considering adding robotic welding to the shop, but there are some challenges to implementing that, so for the time being they do mostly flux-cored, or stick welding when in the field.

Now, armed with the new shop and more capabilities, Glenmore has the capacity to go and acquire even more business – something that should suit them well in their booming city.

“We have a pretty big customer base that we service, and it’s tough because for the last 8 or 9 years we’ve only had the one shop, so we’ve been maxed out,” Gillen says.

“Now that we’ve built this shop, we’ll service not only the customers, the general contractors, but some of the fabricators that want to do processing – where they want to cut some beam, have something drilled, and we’ll do that for them.”

Then there’s the added benefit for Gillen that he genuinely loves the work.

“We see a lot of different challenges out here. Fabrication is a hard job to do. Because the information is harder and the architects seem to be able to just dream up everything, but we’ve got a really good staff… we make everything real.

I drive around the city, I see something and say, ‘hey, I did that building.’”

“There’s parts of the city that I won’t go to for a year, then I show up and it’s all new. I won’t even recognize it.”

And the way things are going, there’s no doubt it’ll be that way for years to come – but at the rate Glenmore is growing, they may just recognize more and more of it as time goes on. CM

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SME Success Stories

Two Skilled Siblings At A & R Machining, brothers build the business

By Jim Anderton, Editor ............................................................................................................................................................................

I

n Airdrie, Alberta, near Calgary, two brothers are building a solid job shop the old fashioned way: through quality and service. While those are attributes of all good job shops, Alex and Rich Clugston, the “A and R” of A &R Machining, use a solid fraternal bond to build a business that works better than just a simple partnership. Rich Clugston, operations manager, relates: “We both have our own expertise. Alex is the machinist, I run the office. We felt that if we put our heads together we could be different, more efficient. It gives us the freedom to do what we want to do. Because Alex is so talented, he was ridden pretty hard in other shops, at one point running four machines at once with no time for training, so we thought we should get him into his own environment. We like challenges.”

The term ‘synergy’ comes to mind, and although that expression has become a cliché, at A&R Machining, it’s

plainly visible. With a talented machinist making parts and an operations man handling customer-facing tasks, both have the time and space to focus on their individual strengths.

A&R machines a broad range of parts for industrial and commercial applications. As an Alberta-based business, down hole equipment is a natural market, as is electrical components (connectors) and interestingly, custom lighting for the interior design market. A&R does one-off jobs, but doesn’t shy away from moderate production runs.

“We like longer runs”, state Rich, adding “with three machines and two of us, one running all the time is great for us. Our largest run so far is 1000 parts. We have several customers who do that.”

The current setup at A&R Machining operates three major machines. Says Rich, “we started with our

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Doosans, but after our clients wanted more and more, we needed another machine.”

Alex is especially enthusiastic about the new acquisition: “We needed reliability so we went with a Nakamura Tome 200LMYS two spindle unit with live tooling. It’s a beast.”

A&R sourced the Doosans from Moore Industrial Ltd. and the Nakamura Tome from Elliot Matsuura Canada Inc. All the machines run FANUC controls, according to Alex: “I’m familiar with them..its important that they’re the same.

As we hire people it will keep everyone on the same page.”

The brothers use a GibbsCAM station to avoid onmachine programming. A&R prefers to build from a print, but has the capability to work around many issues. “Some customers provide just a 3D rendering”, says Alex, adding “we create the toolpaths from there.”

The shop has both leased and finance purchased equipment, opting for a low buyout at the end of the term for leased machines. According to Rich, “that’s why we bought these machines; we wanted something that would last in the end.”

The Clugston brothers are young, with Rich, 35, and Alex, 31; in person they look even younger. Youth can be

an asset, but rarely so when arranging business financing.

“One of the handicaps starting up was that we look so young, no one took us seriously”, says Rich. “It took 6 months to build our business plan, and people said ‘that’s great’, but no one would take a chance on us. It was difficult just getting the shop opened.”

Rich notes that third party equipment leasing companies were useful early on and Elliot Matsuura was instrumental in financing the new Nakamura Tome.

A&R is a multi-material operation, but according to Rich, aluminum forms the bulk of the work. “We do beryllium copper, steel and stainless but it’s aluminum all day, every day.” 6061 in the T6 heat treat is a big part of aluminum production. The beryllium copper work is for high tech components for the downhole market. “It’s for measurement well drilling pump parts, lots of downhole. Often we don’t know what we’re making is used for”, he says with a grin. Tolerances vary as much as the work at A&R. Standard jobs may be plus or minus 5 thousandths, with closer tolerance work at two or three ‘tenths’. Modern equipment helps the brothers cope with the wide ranging demands, relates Rich: “The Nakamura Tome and the Doosans hold

Above: A&R has added a Nakamura Tome dual spindle machining centre with FANUC control.

Right: Alex and Rich Clugston.

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Production machining and small specialty parts are common jobs at A&R Machining.

tolerances well with great repeatability. We’re not changing offsets all the time. We invest everything in the machinery.

Everything else is peripheral. $15,000 workbenches aren’t what we need…we need machines to make repeatable parts.” The brothers expect to add another Nakamura Tome machine in the future.

A&R occupies 3000 square feet in a bright, open concept layout. Like many young businesses, there’s no

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receptionist, so the open layout lets Alex and Rich keep an eye on production and the office. The current location works with three machines but A&R will soon reach a crossroads; hire more people and move to a bigger facility or stay small and flexible? When pressed, Rich and Alex don’t talk much about staying a two-man operation, noting that hiring may be an obstacle. “We need someone willing to put in an honest day. Someone who can buy into our system and who shares our vision.”

The brothers rely heavily on the vendor community for tooling support, much of it with Sandvik, but with many brands on the production floor, depending on the application.

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freedom to explore advanced machining, leveraging the individual talents of Alex and Rich.

What’s the best part of running A&R Machining? Rich Clugston answers without hesitation: “I get to work with my brother. He’s my best friend. And it offers the freedom to do our own thing.

It’s 100 per cent trust. Alex’s domain is the shop, and mine is the front office.

We make the decisions together, based on the ‘pros’ and ‘cons’. For a while it was 18 hour days, seven days a week.

We have to prove ourselves to every new customer.” CM

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When Things

STACK UP Tolerance stack is a common issue for job shops… but is it always a matter of the worst case scenario?

PRODUCT RQMTS Marketing & Prod. Dev.

DFMEA Design Failure Modes and Effects Analysis

MECHANICAL RQMTS Strength, function, motion, package space

What does the customer need our product to do?

What are all the possible failure modes for our product?

What do we need to control in the assembly to achieve customer requirements?

MECHANICAL FIT AND PERFORMANCE RQMTS

ESTABLISH ACCEPTANCE LIMITS ON PERFORMANCE RQMTS1…DOE

What are the specific gap and alignment requirements between parts to achieve customer needs?

How much gap and alignment variation is allowable?

QUALITY DOCUMENTATION “Mechanical Requirements”

Product and Quality Management – Mechanical Requirements FIG.1

P

roduct manufacturers utilize an organized flow of information to translate customer requirements into product requirements. This process for mechanical requirements is generalized in the flow diagram above. (Fig.1) Tolerance Stack-Ups are vital to address mechanical fit and mechanical performance requirements. Mechanical fit is simply answering the question, “Do the parts that make up the assembly always go together?” Mechanical performance requirements would include the performance of mechanisms, like switches, latches, actuators, and the like. Other performance requirements could include optical alignments or motor efficiency. So what is a “stack-up”?

Tolerance stack-up calculations represent the cumula-

tive effect of part tolerance with respect to an assembly requirement. The idea of tolerances “stacking up” would refer to adding tolerances to find total part tolerance, then comparing that to the available gap or performance limits in order to see if the design will work properly. This simple comparison is also referred to as worst case analysis. Worst case analysis is appropriate for certain requirements where failure would represent catastrophe for a company. It is also useful and appropriate for problems that involve a low number of parts. Low being defined as three or four parts.

Worst case analysis is most often done in a single direction, i.e. a 1D analysis. (Fig.2) If the analysis involves part dimensions that are not parallel to the assembly measurement being studied, the stack-up approach must be modified

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1D RSS ASM =

σ

(∑ σ )½ i

+

2

Distribution 1

Distribution 2

σi= Standard deviation of the “ith” dimension since 2D variation such as angles, or any variation that is not parallel with the 1D direction, does not affect the assembly measurement with a 1-to-1 ratio.

Many companies utilize a statistical method for tolerance analysis. One approach involves a simple calculation using the RSS Method, Root-Sum-Squared. (Fig.3) Instead of summing tolerances, as in worst-case analysis, statistical analysis sums dimension distributions. It is important to understand that the inputs values for a worst-case analysis are design tolerances, but the inputs for a statistical analysis are process distribution moments (e.g., standard deviation). Worst-case analysis (also called tolerance stackup analysis) can be used to validate a design. Statistical analysis (also called variation analysis) can be used to predict the actual variation of an assembly based on the variation of the part dimensions. Comparing the assembly standard deviation to the assembly limits allow for the calculation of quality metrics like sigma, % yield, DPMU, etc. This approach requires distributions to be normal with all parts at the same quality level, i.e. +/- 3σ.

Given the limitations of RSS, other methods for calculating assembly variation have been developed. One such method (incorporated into Sigmetrix CETOL 6 Sigma software, for example) is called the Method of System Moments. This method eliminates the limitations stated above. Analyses of all complexities, i.e. 1D, 2D, and 3D,

=

Stackup Distribution FIG.3

can be created with no restriction on distribution type or quality level. Companies can now do full Assembly Variation Analysis with tolerance analysis software.

Assembly variation analysis provides insight required to identify the key part characteristics, (KPCs) that must be controlled in order to produce a product that meets the expectation of the customer. The product development process should then become focused on defining and validating part manufacturing and assembly processes that are capable of achieving high producibility levels.

Goals of Cpk = 1.67 for key features and Cp = 1.33 for non-key features are commonly quoted. Utilizing the insight for variation analysis allows design engineers to allocate tolerance budgets strategically. Critical features will be held to tighter tolerances. Looser tolerance can be applied to less important features. These decisions not only ensure product quality and performance, but also ensure manufacturability at the right price. The impact on the product development process can be huge.

Tolerance stack is often a unidirectional problem, but it can create higher order issues in complex parts. In that case, statistical tolerance analysis can be is used to understand how these tolerances contribute the various performance characteristics of the design. A statistical tolerance analysis is when you take the variation of a set of inputs to calculate the expected variation of an output of interest. In mechanical engineering, a product design is composed of multiple features, each with tolerance values that control the variable aspects of those features.

1D TOLERANCE STACKUP The simplest form of tolerance analysis is the single direction, 1D Tolerance Stackup. A 1D Tolerance Stackup is created by creating a cross section of a model and adding the tolerance values for each feature in a straight line. The variation in each contributes to the overall output/outcome.

FIG.2

WORST-CASE ANALYSIS VS RSS (ROOT-SUM SQUARED) STATISTICAL ANALYSIS In a Worst-Case Analysis, each dimension will have a minimum and maximum value that represents the range of acceptability for that dimension. www.canadianmetalworking.com | JUNE 2014 | 79

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not account for the breadth of conditions that exist in typical scenarios found in manufacturing.

First Moment: mean – measure of location

x Second Moment: Standard deviation – measure of spread

-s Third Moment: skewness – measure of symmetry

Fourth Moment: kurtosis – measure of peakedness

+s

SECOND ORDER TOLERANCE ANALYSIS Because manufacturing methods vary for different types of parts, the distribution moments or parameters change as well. RSS only uses standard deviation and does not include the higher moments of skewness and kurtosis that better characterize the effects tool wear, form aging and other typical manufacturing scenarios. Second Order Tolerance Analysis incorporates all distribution moments (Fig.4) Second Order Tolerance Analysis is also needed to determine what your output is going to be when the assembly function is not linear. (Fig.5) In typical mechanical engineering scenarios kinematic adjustments and other assembly behaviors result in nonlinear assembly functions. Second order calculations are much more complex so hand calculations are not advisable but the computation accuracy is greatly improved and becomes viable within a tolerance analysis software package.

FIG.4

SUMMARY The choice in tolerance analysis method is based on many factors, but the can be summarized as “Which method best matches the manufacturing and inspection process of the assembly”. For simple fit problems, a 1D stack-up may be sufficient. RSS is sufficient for the small number of scenarios where the inputs are normal and the assembly relationships are linear. For all other scenarios, Second Order Tolerance Analysis is required to address the real world of manufacturing. CM

Worst-Case answers the question, if I take the maximum range on each input, what is the maximum range for the measurement of interest or stackup? We are therefore dealing with the limits of acceptability and not probability.

RSS (Root-Sum Squared) Statistical Analysis does not focus on the extreme values, but focuses on the distribution of the variation for each dimension. Each dimension will have a unique distribution of values based on the manufacturing process. Tool wear, operator differences, changes in material and environment all contribute to variation in the Courtesy, Sigmetrix LLC. dimension value. Each dimension has its own distribution www.sigmetrix.com curve.

When you combine the probabilities for each dimension (each separate curve) you get the probability for the total and therefore the distribution curve of the total.

Statistical analysis answers the question, given the distribution of variation on each dimension what is the probability that my perform⦶ H+ ance characteristic will fall within H ∂H defined acceptable limits. The ⦶+∂⦶ R limitation of RSS is that it assumes all inputs are normally distributed and all performance characteristics have a linear relationship with the dimension. These assumptions do

R+∂R

FIG.5

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SME Success Stories

Amphibious Ambitions Normrock Industries dredges the world with innovative technology

By Nick Healey, Associate Editor ..............................................................................................................................................................

C

anada has a strong history of unique and important inventions. They can be as simple as fivepin bowling, or high impact game-changers like insulin or the pacemaker. Now, another invention by a Montreal company, is well on their way to winding up in a group with the latter.”

Normrock Industries, the makers of Amphibex dredging equipment have come up with a great idea for an obvious problem within the industry – mobilization.

Up until fairly recently, and currently in a lot of cases, dredging has been done the old-fashioned way. Excavators and similar types of equipment are hooked up to barges and moved around with tugboats, or other rudimentary propulsion methods.

But with Amphibex equipment these days of slow, arduous dredging practices are beginning to be phased out.

“It started because of the need for this type of machine,” says founder and president, Norman Grant.

“We were in dredging and excavation, and dredging with big machines in the centre of a river, it’s okay, but then you have to dredge your way to the shore, otherwise you’re stuck in the middle.

“We just wanted to fill the gap between regular dredging and land excavation.”

This truly global company was founded in 1987 by the elder Grant and it remains a family-run business to this day, with his two sons Dany and Jimmy, now key figures in the shop’s operation, and his wife Louise running the finance side of the business.

The affable Norman, Dany and Jimmy, sit in the boardroom of their 45,000 square foot facility in Terrebonne, a huge world map sprawled out behind them with pins stuck to many exotic locales where their dredging equipment has become a staple.

Top: A finished Amphibex 400 ready to be shipped This image: The company’s headquarters are based in the Montreal suburb of Terrebonne

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“We have some in China, Turkey, Romania, Iraq,” Norman says. “We’re working on Argentina right now, we have some in Mexico, St. Maarten.” And that list doesn’t include the other pins stuck to Russia, Senegal, and even New Caledonia in the South Pacific.

The beauty of the machine is in its simplicity. While it looks fairly unique – the hydraulic legs,and pontoon floats make it resemble some sort of grasshopper-like insect – mostly, it’s designed to be simple to use, maintain, and repair. All of the machine’s moving parts are hydraulic, making them much easier to fix in some of the remote locations the Amphibexes find themselves in.

The machines range in size, starting from the 400 model, running up through the 600, 650, 800, 1000, and most recently 1200.

Top: Martine Henry grinds down a weld on an unfinished Amphibex.

Executive Vice President Dany Grant claims that women are some of the company’s best employees.

Middle: An Amphibex tears through chunks of ice on the St. Lawrence River Bottom: An example of traditional dredging practices the Amphibex does

going to be 60 feet long and 28 feet wide,” Dany says.

Currently, the company has about 60 employees who work on the machines, and along with their 12 engineering staff they do all of their own R&D in house.

The machines vary in cost, from about $1.35 million for a small one, and up to $6 million for their largest models. There is also a variety of custom options for the excavating equipment.

“From scratch – ordering the steel – it takes about 4-5 months depending on the machine,” Norman says. “But we have pretty good orders so we build 4, 5, or 6 together.”

They also make a transport vehicle – the Amphitransport AT300 – for moving containers of waste material when necessary.

“We’re facing a demand for larger equipment – especially in North America.

We developed the 1200 and they’re not going to be able to ask for more because it bears a 30-inch pump! 44,000 gallons per minute,” Norman says.

Grant claims the machines don’t need to get bigger to be more effective, but he laughs when Dany reminds him that every time he says that, they go up another size.

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“Every piece of steel on the machine has a serial number and we know the mill test and everything.”

The steel on the sides and the top is 3/16th, while the bottom uses 1/4 –inch, so clearly the machines are durable – probably important when you are sometimes floating through rock and ice.

“The smaller one has nine compartments (for floatation). If we hit a rock, the rock’s going to suffer!” Norman jokes.

And of course, with that much steel being used, it’s obviously the type of work that lends itself to a lot of welding and grinding applications.

Dany credits their beveling equipment as a time saver. “Without that we’d use a lot more stuff from Walter. Still, we need the hand grinders also. We’re using 5-inch (disc). It’s easier to handle, and it goes everywhere,” he says.

The Grants also credit their use of flux-cored welding wire for speeding up the process. They claim it works best in vertical and overhead situations, and that deposition rates work well for their projects.

The company has also added a new facility about 10 minutes down the road. They plan to

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use the new building to do a lot of the final assembly of the parts – especially on the bigger models.

One of the other features of the business is their environmental ethos. Both on their website and in person the Grants are quick to point out the value of the machines from an environmental perspective. Often, dredging is thought of as a destructive and unnatural process used more for the sake of human comfort than anything else. However, the dredgers are often used for decontamination projects, including one where the machines pulled up 19 kilos of mercury from contaminated soil in a river bed.

In Senegal there was also an environmental project example where they supplied equipment for one section of the Senegal River. “No water was coming out of that (area),” Norman explains. “There was not enough unsalted water coming into it, so the sea water was coming up, the city of St. Louis had salt water as drinking water… once they opened that up, it was fine.”

Of course there is a massive range of applications for the machine, and some of the other jobs

An example of one of the many attachments that can be used on an Amphibex. Applications for the machine range from traditional dredging to ice breaking.

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happen a little closer to home. The Red River in Manitoba has always struggled with the spring thaw and the massive amount of ice it sees – a job requiring seriously durable equipment.

“It’s very, very rugged equipment – we’re breaking ice with it,” Norman says. “On the Red River in Manitoba they have four of our machines and they’re breaking ice every spring, to prevent ice buildup and flooding.”

A number of Amphibex machines have also already made their way to the oilsands in western Canada, for use in the basins.

Then sometimes the reason they’re called upon drifts into the territory of the completely bizarre – like pirate-hunting.

“In Saudi Arabia they’re grinding part of the coral reef because the coast guard can’t get in. There are pirates, they hide (in the reef) so the coast guard can’t chase

Normrock is a proudly run family business

them! It’s surprising the type of jobs (we do),” Norman says.

It’s clear in the way the Grants talk that they have a real passion for their business and enjoy getting involved in projects and offering their expertise.

“People come with their problem, they ask us if we can do something and we try to find the solution,” Dany says.

The funny thing about solutions though is that sometimes the simplest ones are the best answer – something Normrock has clearly discovered with their unique invention. CM

23rd International Sheet Metal Working Technology Exhibition

21 - 25 October 2014 Hanover, Germany Sheet metal, Tube, Sections Handling Forming Finished products, Parts, Assemblies Separation, Cutting Joining, Welding Flexible sheet metal working Machine elements Tube / Section working Composites Surface treatment Tools, Dies Data capture / processing Safety at work Controlling, Regulating, Measuring, Inspection R&D Factory and warehouse equipment CAD/CAM systems Environment protection, Recycling

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SME Success Stories

A different kind of shop Mitacor Industries combines machining with advanced engineering support

By Jim Anderton, Editor ............................................................................................................................................................................

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n Pointe Claire, Quebec, just outside Montreal, Youssef Nakhoul owns a very nice job shop. There are lots of small shops in Canada, but Mitacor Industries takes a slightly different approach to management, one that is paying off for Nakhoul and his 11 employees.

Nakhoul established Mitacor in 2006 by purchasing a business serving the telecom industry. “It was strictly a production shop, running pallet after pallet. A single program would run for four years. But that telecom business was dying down, so I changed it to a precision operation”, he says, adding “the changeover involved replacing the machines, then adding a single pallet changer type production machine for series runs when needed.”

Nakhoul came to Canada in 1982 from Beirut, Lebanon, and studied at Concordia University in Montréal, reading physics and then engineering.

“The subject was interesting and it came easily to me,” says Nakhoul. After working for a Québec moldmaker, he moved Youssef Nakhoul, General Manager, to Nortel Networks, working in Mitacor Industries Inc.

research and development, leading to patent work for the telecom giant.

“Nortel gave me a strong background in how to structure a business. When I took over this business there were production runs of 50,000 pieces running 24 hours a day.

I didn’t want to do things that anyone can do and with my background in engineering it was an interesting challenge.”

Of Mitacor’s 11 employees, there are three engineers who each have 10 to 15 years of programming experience. “I knew that telecom and military business was out there; I just needed the right equipment. Everybody has “20 by 40” tables, so I went outside of the box and bought “60 by 33” capability that other shops don’t have. Fortunately I was able to work with Megatel, who gave me amazing service. I told them what I was planning to do and we stuck together to make it a reality.

They helped me benchmark against my competitors and before selling me a machine let me see it in action.

What really counts is the mentality of our people. We don’t take shortcuts. People see it.” Nakhoul is a pro/ ENGINEER/SolidWorks expert, which combined with his design experience, allows him to generate tool paths that optimize workholding, and machine complex parts efficiently. “Planning the job helps them on the shop floor. They learn, and I learn too.”

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Where the serious buyer goes.

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s A simple message on an advanced Takumi machine. Cycle time is everything to an efficient operation. s Mitacor’s EMCO Linearmill 600 features 5 axis movement by linear motors instead of gears and ball screws. Advantages include mechanical simplicity, little wear, higher speed and accuracy. Youssef Nakhoul notes that the smooth acceleration and deceleration of cutting tools generates no variation in force during movement, useful for thin wall parts.

designed this circuit board tester for assembly line checking of electronic components at high speed with little risk of damage

Quality systems and job traceability are universally applied at Mitacor

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Nakhoul is adamant about design for machining in a single set-up wherever possible. “Every time you touch the part, you have the potential to make a mistake’, he says, adding, “I spend money on machines to get the accuracy and precision I am looking for. If I didn’t, I would be like everybody else. A year ago I bought a five-axis machine, a small one to learn the technology, then a big-

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ger one; and now we know five-axis like three-axis. It cost money but it was an objective for me. I don’t run a shop just to make money, I want to feel proud of it. I reinvest in my company, 40 per cent of net profit. Reinvestment is key. Even when the economy is not strong it’s important.

It’s not about the money, it’s the challenge; that’s the key…if you like what you’re doing it’s like a hobby. You like to spend money on your hobby.”

Mitacor offers a profit-sharing program for staff based on percentages of sales. The firm is also unique in that Nakhoul has written his own ERP software, controlling all aspects of the operation. The custom system interfaces with the firm’s accounting package and handles everything from job costing to order tracking. Nakhoul’s engineering background gives Mitacor an edge when customers require design support as well as machining services. Quality however, trumps price in every case.

Referring to offshore competition, Nakhoul states simply “they drill a hole for 10 cents, and we do it for 50 cents.

We need to know that it’s right. Sometimes we lose business but we maintain our standards.”

Mitacor’s close relationship with their customers allows the firm to push back against low-cost overseas competition by working jointly to use advanced tooling designs and part optimization to reduce cycle time. The firm recently won a major contract against a low-cost Asian supplier despite a slightly higher unit cost, reflecting customer confidence that Mitacor’s quality and delivery will in the end deliver lower overall part cost to the customer.

Although Mitacor transitioned from large volume operations, this doesn’t mean that Nakhoul has rejected automated production. “Human beings make mistakes, that’s why I believe in automation”, he says, adding “It was a learning process. I was costing incorrectly.

Five-axis is more complicated, and I was costing for a

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three-axis process. With five-axis, there are many things Mitacor uses their skill advantage to secure work to consider, but I learned.” from a wide range of customers, from Tier 2 aerospace Nakhoul believes one key to winning back offshore companies to makers of horse racing sulkies. As the business is through faster turnaround. Parts that were firm expands to other markets, Nakhoul expects to add once ordered six months in advance are now expected a dedicated salesman soon, and will add aerospace with lead times measured in weeks, making it far easier certification to the current ISO9001. As the business for local supplier deliver on time then a lower per-part grows, Nakhoul expects to maintain direct contact with price offshore firm shipping from 10,000 kilometers away. customers and products. “Every setup on the floor has “The secret is to understand the customer’s product very been touched by me. I quote all the jobs”, says Nakhoul well”, he states, adding “If I’m involved at the development with modest pride, adding simply “I’m having fun.” CM phase, it helps them a lot and it lets me quote the job effectively.”

Besides Mitacor’s function as a job shop, Nakhoul has developed a testing product for the electronics industry iMachining for rapid checkout of circuit board TechnologyWizard assemblies.

“When you talk about mechanical assemblies, it’s simple”, he declares.

“You see if it fits or not. In electronics however, a board is assembled on the line, and at the end of that line it must be tested. But when the boards are assembled in Mexico, who will test them? I saw a need for an automated testing device that would let them fully check the board at the end of the line.

Assembly lines in India, Asia and Mexico buy my test stations.” Engineering test equipment is no simple task. The of your current CAM system ability to maintain a solid electrical Finally, a CAM system that contact with the board is essential, REVOLUTIONIZES machining to make any yet the realities of assembly-line work CUTTER, on any CNC MACHINE, DEVOUR mean that the system must accommoany MATERIAL! date rough or careless board handling, without damage to board or tester.

Reduce your cycle times, extend your “Electrical signal is often a function of tool life and increase your profits! the contact force and it’s an 18 layer board” says Nakhoul.

SolidCAM’s iMachining Reduced Cycle Times by at Least Half Nakhoul talks with pride about the - GUARANTEED! Frees You With: technology, but the conversation soon returns to Mitacor people.

UNMATCHED Tool Life “Our people feel that this is their PATENTED Speeds & Feeds Wizard company. The profit-sharing is a part of that; each year we do an individual el evaluation, noting pros and cons.” gh 1018 ste u ro th t u c s Nakhoul takes an engineering approach to watch u IVE! r Webinar u o chining – L a in iM Jo h it to personnel evaluation too, with a w r e like butt highly developed system to determine individual performance weaknesses with an eye toward continuous improveRegister for the LIVE Webinar at ment of personal skills as well as shop www.solidcam.com/cmw capability. for Automatic Feeds and Speeds

Break the Chains

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SME Success Stories

Small Parts, Complex Configurations

By Nate Hendley ......................................................................................................................................................................................

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his spring, D-M Precision Products, a custom machining shop in small-town Dunnville, Ontario went on something of a machine tool bender.

“We bought one Haas VF-3 VMC along with a TR160 Platter for an existing machine and a TR160-2 Platter for

a new machine,” reports Chad Plath, shop floor manager at D-M. The shop also acquired a Hardinge Super-Precision Quest CHNC 42 turning center for small part turning.

Including the shop’s most recent purchases, D-M

D-M Precision Products recently purchased a Haas VF-3 vertical machining center

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The shop makes components for the medical, telecommunications and scientific research sectors. “currently has 10 CNC milling centers, five CNC lathes and an EDM sink and wire cutter … Haas and Hardinge brands make up around 70 percent of the machine tools on our shop floor,” reports Plath.

Founded in 1960, D-M Precision is housed in a 10,000 square foot facility. The shop makes components for the medical, telecommunications and scientific research sectors. D-M specializes in machining tight tolerances, small components and complex configurations.

The new machine tools were bought to enhance growth: D-M wants to boost its work load while maintaining on time delivery and high quality, says Plath.

The Haas VMC and rotary tables were installed in late April, 2014 while the Hardinge lathe was installed the first week of May. Installation of the VF-3 took one day and “went very smoothly,” according to Dan Ferko, president of Sirco Machinery Company Limited, a Haas distributor with branches in Toronto, Montreal and Windsor.

Sirco sold D-M the VF-3 and the TR160 and TR160-2 Platters and was responsible for delivery and installation.

The Hardinge turning center came from EMEC Machine Tools, a Mississauga, ON-based machine tool distributor.

As far as Ferko is concerned, D-M made a wise move in their purchase decisions.

“Clearly, based on the number of VF-3 frame-size machines that D-M runs in its day-to-day operations, the VF-3 is a very good fit for D-M,” says Ferko.

The VF-3 features x, y, z axis travels of 40 x 20 x 25

inches (1,016 x 508 x 635 mm), a 20-station carousel tool changer, 1,000 ipm (25.4 m/min) rapids and a 15 inch colour LCD monitor. The VMC table is 48 inches long by 18 inches wide (1,219 x 457 mm) and can handle a maximum table weight of 3,500 pounds (1,588 kilos).

The spindle can achieve 8,100 rpm and maximum torque of 90 feet-pound @ 2,000 rpm.

D-M has very specific plans for the VF-3, which was running jobs one day after installation.

“D-M Precision currently machines parts that are what we call high complex, low volume part families. Some jobs require fifth axis rotation and run times between 180 minutes to 240 minutes per part. With the added capabilities of a twin spindle, fifth axis rotation will allow us to fixture two parts at a time and in most cases run the machines well into the evening hours as we are running one day shift (7 am – 5:30 pm) four days a week,” says Plath, of the VF-3.

The TR160, meanwhile, is a 160 mm (6.3 inch) tilting,

Close-up of the Hardinge SuperPrecision Quest CHNC 42 turning center purchased by D-M Precision Products

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D-M Precision Products is a custom machining shop based in Dunnville, Ontario Photos: D-M Precision Products

two-axis trunnion rotary table with a platter diameter of 6.3 inches (160 mm). The platter can take a maximum weight of 80 pounds (36.3 kilos). Both Spindle A (tilt) and Spindle B (rotary) on the TR160 have a maximum speed of 0.001 to 80 °/sec.

The TR160-2 is a 160 mm (6.3 inch) dual spindle, tilting two-axis trunnion rotary table with a platter diameter of 6.3 inches (160 mm). Spindle A (tilt) and Spindle B (rotary) both have a maximum speed of 0.001 to 80°/sec.

The Haas VMC and rotary tables “allow us to be more productive, have better quality parts and shorter lead times,” he adds.

For its part, the Quest CHNC 42 turning center features an A2-5 16C spindle capable of 5,000 rpm, 152.4 mm (six inch) jaw chuck capacity and interchangeable 8-position or 4-position gang tool-style top plates. The CHNC 42

has a maximum turning diameter of 203 mm (8 inches), maximum turning length (with collet) of 101.6 mm (4 inches), maximum travels of 310.9 mm (12.24 inches) on the x axis and 311.2 mm (12.25 inches) on the z-axis.

The Hardinge turning center will allow D-M to “turn small parts roughly 30 percent faster with an increased value of part finishes and accuracy,” says Plath.

According to Plath, D-M staff didn’t face much of a learning curve with the VF-3.

“We currently have similar machine tools on our floor so the adjustment was minimal,” he states.

While very pleased with D-M’s current acquisitions, Plath doesn’t rule out more machine tool purchases for the rest of the year: “We are always looking at machine tools that will help us either gain new business or help with productivity,” he says. CM

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Job Shops SME Success In Canada Stories

By ? .........................................................................................................................................................................................................

Expertise Drives Expansion Thomas Wire Die builds for specialty, precision applications

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shop can grow its business in many ways. One proven path involves steady expansion based on a foundation of expertise. The consistent growth of Thomas Wire Die Ltd., Burlington, Ontario, is a good example. Founded in 1966 to produce and service small tungsten carbide wire dies, the company built on its experience in making precision parts from hard materials and used it to expand its range of products and customers. And through its nearly 50 years in operation, the shop has continually updated its manufacturing technology to enable it to take full advantage of its special skills.

Wire drawing dies are the shop’s original product and continue to be an important part of the business.

A typical die is composed of a steel casing that holds a carbide component with a hole through which wire material is drawn. “We buy carbide and steel as raw materials and we machine the steel casing, grind or EDM the carbide, then assemble them into a tool and finish it,” said Adam Thomas, vice president of Thomas Wire Die as well as grandson of the company’s founder.

If the die aperture is round the shop grinds it; if it is square or another shape it is machined via EDM. Part sizes include casings as large as 16” OD that hold a carbide insert with a 12” diameter; among the smallest part features produced are 0.005”-diameter holes in natural diamond wire drawing dies.

As time passed, Thomas Wire Die began to produce larger carbide wire and cable dies, then added dies used to cold finish round bar and to draw square, hex and other shapes of bar and tube. Expansion continued with the manufacture of carbide punches and shape dies for forming, stamping and deep drawing, as well as tube drawing plugs and mandrels.

Taking further advantage of its longtime familiarity with the challenges of processing hard carbide parts, Thomas Wire Die moved into engineering and producing carbide wear components. The custom parts combat corrosive and abrasive wear in industrial applications ranging from agriculture to aerospace. “In wear components, we look for opportunities where we can get people

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Above left to right: Adam Thomas, vice president, Thomas Wire Die Ltd.; The new STUDER CT750. Bottom: Rick Sands, machinist, monitors the STUDER unit.

to switch from using tool steel to carbide,” Thomas said.

“Carbide can provide five times the life of the tool steel.

Our customers used to replace a tool steel part every month, now they replace it every six months.”

As the shop expanded its offering of services, it continually augmented its skills with the addition of new manufacturing technology including EDM, turning and milling machines, and advanced CNC grinders that enabled it to serve its traditional markets better and move into new ones.

A notable addition was the company’s 2006 acquisition of Stoney Creek Precision Parts, a machine shop and manufacturer of cold-heading dies used to form bolts and similar products. Thomas Wire Die made the acquisition to help it grow its business in the cold-heading die market and strengthen its machining capabilities.

About three years ago, Thomas Wire Die looked for ways to reinforce its capabilities in the ID grinding that is still the basis of the company’s business. “We grind ID every day, all day, and we asked ourselves what piece

of equipment would help us be better in that product,” Thomas said. “We weren’t trying to get into a totally new area; it was work that we already had and we wanted to move it on to a machine that was more efficient and produced higher quality, higher precision and better parts.”

Subsequently, the company acquired a STUDER CT750 radius ID grinding machine for hard materials in 2011. The machine has a CNC-controlled B-axis with an automatic swiveling range from +60 degrees to -91 degrees. An oscillating grinding wheel enables it to produce an unlimited number of different radii up to 90 degrees. A modular turret with two grinding spindles provides great flexibility in the machining of individual parts as well as large-scale production. The machine handles small- to medium-size workpieces, with X- and Z-axis travels of 360 mm and 250 mm respectively, a grinding length of 100 mm, and a maximum ID grinding diameter of 80 mm.

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petitive on the pricing side,” Thomas said.

The machine’s CNC technology and structural rigidity ensure the production of a good grinding surface finish.

Surface finish is critical in diemaking because it is the basis for final polishing. “The STUDER machine allows us

to get a better surface finish faster than we could before, and reduces polishing by hand,” Thomas said, noting that excessive polishing can distort a part’s geometry.

The STUDER grinder also has in-process gaging capability that helps reduce cycle times. The probe measures the part during the rough grinding process and adjusts the operation to leave a minimum amount of material for finish grinding. Because finish grinding is slower than rough grinding, minimizing finishing passes reduces cycle times overall.

The machine’s CNC capabilities also boost part consistency. Previously, for example, reworking a wire die involved changing its contours via manual grinding. Now the shop can program an exact radius. “The STUDER machine allows us to produce a more consistent, uniform product,” Thomas said. “In the past when we ground the parts by hand, we might get a few tenths difference on the size. Now, we can sell a die today, and sell that same die a month from now, and it is exactly the same geometry. The customer knows the dies are identical.”

Thomas said the programming software has proven easy to use, both for employees who are familiar with computers and those who are not. However, he pointed out that the best results require a combination of computer savvy meshed with familiarity with the grinding process.

Thomas Wire Die soon found that the shop had enough work to keep the STUDER grinder going nonstop. As a result, the company recently added a second CT750 machine. “The machine’s increased efficiency has freed personnel to move to other areas,” Thomas said. “Where we might have had three people doing work, now we have one and a half. The other one and a half are working in

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ADVERTISERS INDEX ADVERTISER . . . . . . . . . . . . . . . . . . . PAGE ADVERTISER . . . . . . . . . . . . . . . . . . . PAGE

other areas because of growth we are seeing in other products.”

In addition to increasing revenue, expanding and diversifying a company’s customer base can help moderate the effect of economic slowdowns. “Part of our thought process in how we grew our business was to try to expand into different markets,” Thomas said. “Working with customers in wire and cable, oil and gas, metal forming, metal stamping and wear parts helped us historically in that when there was a downturn in one area it didn’t affect everything.”

The depth of the most recent “Great Recession,” however, certainly had more impact than past slowdowns. Thomas Wire Die reluctantly performed the first layoffs in the company’s history. “That was a culture change,” Thomas said. “We realized we had to look more closely at cost control. New CNC grinders and wire EDM equipment have allowed us to increase our output. We are also looking at ways to increase the utilization of the equipment we have. We run a single shift now and we have a lot of capital equipment that sits idle two out of three shifts every day. We are looking at changing that, which will mean adding additional people.”

Today, Thomas Wire Die has 20 employees at its 17,000 sq ft. facility and handles between 150 and 200 accounts a year. The shop’s diverse skills enable it to participate in a variety of industry segments. For example, its cold-heading dies are used by suppliers to make fasteners for the aerospace industry. Similarly, the shop makes tooling that tier 1 and 2 suppliers use to deep draw and stamp automotive components.

The fastest growing market for wear resistant parts is the oil and gas industry. “There is more and more fracking activity in North America and worldwide, and it is driving a lot of that growth,” Thomas said. The shop

3M Canada – Abrasive Systems Division ........ 33 Amada Canada, Ltd. .......................................... 9 AMT Machine Tools Ltd. ................................. 52 Benz Inc. ........................................................ 88 Blaser Swisslube Inc. ..................................... 61 Bohler-Uddeholm Ltd. ...................................... 15 Brother .............................................................. 6 Brubaker Tool .................................................. 28 CWB Group ......................................................84 Dillon Manufacturing, Inc. ............................... 43 DiPaolo Machine Tools ..................................... 13 Elliott Matsuura Canada Ltd. ............................. 6 ERI America Inc. ............................................. 22 Eriez Magnetics ...............................................53 Fein Power Tool Company .............................. 20 Frasers ........................................................... 87 Gravotech – Gravograph ................................. 47 Gravotech – Technifor ................................... 47 Haas Automation Inc. ..................................... 21 Henkel Canada ............................................... 23 HORN USA, Inc. ............................................... 11 Hurco USA ...................................................... IFC IMTS 2014 ..................................................... 35 Ingersoll Cutting Tools Inc. ............................. 39 Iscar Tools Inc. ............................................ OBC ITI Tooling Company Inc. ................................ 55 Jesse Engineering .......................................... 16 Kinetic Cutting Systems Inc. ........................... 31 Kyocera Industrial Ceramics Corp. ...................77

Lincoln Electric Co. of Canada ........................ 69 LOSMA ........................................................... 14 EuroBLECH 2014 ............................................ 85 Micro 100 Tool Corporation .............................22 Miller Electric ................................................. 24 Multicyl Inc. .................................................... 18 Natex Tools & Natex Machinery Group ............ 42 Oerlikon Balzers Coating ................................ 19 Ontario Power Authority ................................. 49 PFERD ............................................................. 73 Powerhold Inc. .................................................60 Renishaw Canada Ltd. ..................................... 81 Retention Knob Supply & mfg. Co. Inc. ............ 97 Salvagnini America, Inc. ................................. 41 Sandvik ......................................................... 4,5 Schunk Intec Corp. ......................................... 26 Scientific Cutting Tools ................................... 54 SGS Tool Company ......................................... 57 Sirco Machinery Co. ....................................... 21 SME AM Expo ................................................. 93 SolidCAM Inc. ................................................. 89 Thomas Skinner ............................................. 21 TRUMPF Inc................................................... IBC Tungaloy America Inc. ...................................... 3 Universal Robots USA, Inc. ............................. 76 Victor Technologies.......................................... 67 Walter Surface Technologies ........................... 17 Walter USA, LLC .............................................. 59 YG-1 Canada Inc...............................................65 8CMM20186

makes carbide valve components up to 4” and 5” in diameter and 10” long as well as other parts such as nozzles and small wear rings. Some of the customers for the parts are international OEMs that use the components in assemblies that are shipped worldwide.

In the present era of struggling digital startups with alleged vast potential but questionable experience, Thomas Wire Die bases its growth on its prior successes and strengths, and applies that expertise to realize the potential of new and growing markets for its singular products and services. CM Courtesy, United Grinding Körber Solutions

01/07/2008

08:19 AM

Page 1

IN STOCK American Standards and specials.

Japanese Standards inch or metric.

FOR FAST DELIVERY: Contact your local tooling dealer or order direct.

TEL 937-686-6405 FAX 937-686-4125 www.retentionknobsupply.com Retention Knob Supply Company P.O. Box 61 Bellefontaine, OH 43311

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By The NUMBERS Who are Canadian SMEs? Small business is the majority

Distribution of SMEs by Size of Business

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ndustry Canada’s Small Business Branch gathers and collates a vast amount of information on SME activity in the nation. Their most recent report entitled Special Edition: Key Small Business Statistics November 2013, breaks down the key parameters that define Canadian SMEs and they make for interesting reading. The survey results indicate that small businesses represent the majority (99 per cent) of SMEs in Canada and approximately half (53 per cent) were micro-enterprises (1–4 employees), whereas only 1 per cent were medium-sized enterprises (100–499 employees). In 2011, 4.9 per cent of SMEs had been in business for 2 years or less (Figure 4), 27 per cent for 3 to 10 years and 24.3 per cent for 11 to 20 years. About 43.7 per cent of SMEs had been in operation for more than 20 years.

WHAT ATTRIBUTES CHARACTERIZED SME BUSINESS OWNERS? In 2011, the majority of SME owners had some post-secondary education (66.7 per cent). About 32.1 per cent of SME owners had a college degree, whereas 23.8 per cent of SME owners had a high school diploma. Fewer

Distribution of SMEs by Age of Business

than 10 per cent of SME owners had less than a high school diploma.

About 1.6 per cent of SME owners in Canada were less than 30 years of age. Fewer than 11 per cent were between 30 and 39 years of age, and approximately half (48.4 per cent) of SME owners were between 50 and 64 years of age. Only 5 per cent of SME owners had less than 5 years of management experience. About 18 per cent of SME owners had between 5 and 10 years of management experience and 77 per cent had 10 years of management experience or more. Approximately three quarters (78 per cent) of SME owners were born in Canada. The majority (61 per cent) spoke English as their primary language, while 22 per cent spoke French as their primary language. What the numbers show is an SME population that’s increasingly moving toward educated entrepreneurs, with very few under 30 years of age - not surprising given the difficulty small enterprises have in securing financing. For lenders, experience and a significant owner investment are key strategies for risk mitigation. www.ic.gc.ca

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