SMI Springs winter v57 no1

Winter 2018

The InTernaTIonal MagazIne of SprIng ManufacTure

a publication of the Spring Manufacturers Institute / Vol. 57, no. 1

Experts Provide Operational Excellence Roadmap 26

Flashback: Focus on Basics 31

The Road to Operational Excellence Technology Changes on the Road to Operational Excellence 30 The Relentless Battle for Operational Excellence 34

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President’s Message From Mike Betts

What Does Operational Excellence Mean to You? When I learned the theme of this issue of Springs was “The Road to Operational Excellence,” I thought: “What a great topic. Isn’t operational excellence what we all strive to achieve every day?” The topic exemplifies that SMI is about sharing best practices with its members and industry partners to enhance, improve and grow our businesses.

After reading this issue, I hope you come away thinking about this topic in ways that you did not first think possible. Did you learn new ways on how to enhance your past planning efforts? Do you now believe that having the right facilitator can help your company make the proposed outcomes more credible and tangible?

I would like to share something that my company went through recently.

We embarked on a new way to tackle our budgeting and planning efforts. We heard some hype about EOS®, the Entrepreneurial Operating System. We were curious if what we had heard about EOS would make learning about it worthwhile. Every company has an operating system even if it does not have a name.

An operating system is the way a company organizes itself, with people (the team) in mind. It includes the way we meet, solve problems, plan, set priorities, develop processes, communicate, measure, clarify roles, lead and manage.

The six key components of EOS are: vision, data, process, traction, issues and people. The system is intended to improve and evolve the way a business manages each of these components, with the end goal of creating a clear picture of where the company is going and the things it needs to focus on to get there — creating alignment.

Have you asked yourself these questions: What operating system does our company operate from? Does our team communicate clearly and without dysfunction and confusion?

We have implemented the EOS system in our business and our team has found the process and EOS to be a positive game changer. EOS is designed for a 10-to-300 person company that is open-minded and growth-oriented.

We are pleased with the results of implementing EOS and excited about what it means for our future. The EOS process is inclusionary of every team member which has made the planning process simple and easy to understand for everyone. EOS brings visibility, clarity and purpose to everyone’s contribution in moving the business forward.

To learn more about EOS check it out at www.eosworldwide.com Now it is time to say thank you to all our faithful SMI magazine readers.

Serving as SMI’s president these past two years has been a privilege and honor that will remain with me forever.

Thank you all for your friendship, support and stewardship and for helping make the North American spring industry stronger, year after year!

Please join us this spring in Napa, California as we celebrate the induction of Steve Kempf of Lee Spring as our next SMI president.

All the best!

Mike Betts

SMI Executive Committee President: Mike Betts, Betts Company Vice President: Steve Kempf, Lee Spring Secretary/Treasurer: Bert Goering, Precision Coil Spring Co. Immediate Past President: Hap Porter, SEI MetalTek At Large: Dan Sceli, Peterson Spring Executive Director: Lynne Carr

SMI Board of Directors John Bagnuolo, MW Industries • Cheri Betts, Betts Company • Mark DiVenere, Gemco Manufacturing • Frank Foernbacher, Kern-Liebers USA • Ritchy Froehlich, Ace Wire Spring & Form • Brett Goldberg, International Spring • Agustin Estalayo Ibanez, RPK Mexico SA de CV • Don Jacobson III, Newcomb Spring • Bill Krauss, Vulcan Spring • Bill Lathrop, Colonial Spring Company • Don Lowe, Peterson Spring • Daniel Pierre III, JN Machinery • Hannes Steim, Kern-Liebers USA • Chris and Jeff Wharin, Bohne Spring • Ted White, Hardware Products • Steve Wunder, Duer/Carolina Coil

Springs Magazine Staff Lynne Carr, Advertising Sales, lynne@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Dina Sanchez, Assistant Editor, dina@smihq.org Sue Zubek, Art Director, zubekdesign@gmail.com

Springs Magazine Committee Chair, Ted White, Hardware Products • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Raquel Chole, Dudek & Bock • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Brett Goldberg, International Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical Advisors: Loren Godfrey, Honorary Member • Dan Sebastian, Honorary Member Advertising sales - Japan Ken Myohdai, Sakura International Inc. 22-11 Harimacho 1-Chome, Abeno-ku Osaka 545-0022 Japan Phone: +81-6-6624-3601 • Fax: +81-6-6624-3602 E-mail: info@sakurain.co.jp Advertising sales - Europe Jennie Franks, Franks & Co. 63 St. Andrew's Road Cambridge United Kingdom CB41DH Phone/Fax: +44-1223-360472 E-mail: franksco@BTopenworld.com Advertising sales - Taiwan Robert Yu, Worldwide Services Co. Ltd. 11F-B, No 540, Sec. 1, Wen Hsin Rd. Taichung, Taiwan Phone: +886-4-2325-1784 • Fax: +886-4-2325-2967 E-mail: stuart@wwstaiwan.com Springs (ISSN 0584-9667) is published quarterly by SMI Business Corp., a subsidiary of the Spring Manufacturers Institute: 2001 Midwest Road, Suite 106, Oak Brook, IL 60523; Phone: (630) 495-8588; Fax: (630) 495-8595; Web site www.smihq.org. Address all correspondence and editorial materials to this address.

The editors and publishers of Springs disclaim all warranties, express or implied, with respect to advertising and editorial content, and with respect to all manufacturing errors, defects or omissions made in connection with advertising or editorial material submitted for publication.

The editors and publishers of Springs disclaim all liability for special or consequential damages resulting from errors, defects or omissions in the manufacturing of this publication, any submission of advertising, editorial or other material for publication in Springs shall constitute an agreement with and acceptance of such limited liability.

The editors and publishers of Springs assume no responsibility for the opinions or facts in signed articles, except to the extent of expressing the view, by the fact of publication, that the subject treated is one which merits attention.

Do not reproduce without written permission.

Cover art created using images from: ©iStockphoto.com/OlgaYakovenko

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Contents 48 41 FEATURES 24 The Road to Operational Excellence

By Gary McCoy

26 Experts Provide Operational Excellence Roadmap

By Gary McCoy

30 Technology Changes on the Road to Operational Excellence

By Adam Jacobson

31 Flashback

Focus on Basics: The Best First Step for Improved Operation

By Thomas E. Arenberg

34 The Relentless Battle for Operational Excellence

Four Systems to Significantly

Improve Operating Performance

By Vince Bovino

38 Why Do We Undervalue Competent Management?

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48 More Than Double the Number of Manufacturing Day Events Held by SMI Members in 2017

DEPARTMENTS 2 President’s Message

By Phillip Perry

59 Reflections on the 9th International Congress of Spring Industry in Taormina

7 Global Highlights 14 Regional Spring Association Report 61 Springmaker Spotlight

Spiros Industries: Co-Owners Are Still Living the Dream

By Gary McCoy

COLUMNS

69 Book Corner

19 Be Aware Safety Tips

71 CTE News

The Road to Operational Excellence via Safety, Health and Environmental Management

By Laura Helmrich-Rhodes

73 Inside SMI

21 Dean of Springs

79 Advertisers’ Index

Leadership Can Affect Culture: Quality and Integrity

By Dan Sebastian

75 Committee Connection 77 New Products 80 Snapshot

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What Does Operational Excellence Mean to You?

53 ASQ Survey

5 4 Forecast 2018: Sunny Skies, Clear Sailing

CMY

Michael Brault Ultimate Wireforms, Inc.

Artwork created using images from: ©iStockphoto.com/OlgaYakovenko

41 SMI Metal Engineering eXpo 2017 Recap

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Global Highlights North America Genstar Capital, a leading middle-market private equity firm focused on investments in targeted segments of the industrial technology, health care, financial services and software industries, announced the sale of MW Industries, Inc. Oct. 3, 2017 to affiliates of American Securities LLC. MW is one of the largest and most diversified precision spring and fastener manufacturers in North America.

Acquired by Genstar in 2011, the company has since completed 12 strategic add-on acquisitions that broadened its product offerings and positioned the company in higher growth markets, including aerospace, consumer products and medical sectors. MW manufactures products that are mission critical but represent only a small percentage of the overall finished product it is a component within. Its full line of industrial springs, fasteners, machined parts and flat-stamped spring-related products are engineered to drive increased performance, made from the world’s best materials, and sold to more than 23,000 customers nationwide.

Rob Rutledge, managing director of Genstar, said, “Genstar has greatly enjoyed partnering with the MW team in transforming its business. During our ownership, we meaningfully increased the scale of MW’s leadership team, supported the implementation of the OneMW Operating System, and through acquisitions expanded the company’s product portfolio and end markets, all of which contributed to a doubling of revenue. Importantly, MW is strongly positioned for continued growth to further support its customers and the market’s needs.”

“I am proud of the growth in scale, talent and capabilities that MW has achieved under Genstar’s ownership,” said John Bagnuolo, chief executive officer of MW. “Increased investments will deliver long-term growth, and combined with the new systems and processes we put in place, MW will continue to grow and expand our products, channels and geographies. Our management team and employees are excited to further strengthen our position as an industry leader and world-class supplier through additional strategic acquisitions and investments.”

Latham & Watkins LLP served as legal counsel to MW Industries and Baird acted as financial adviser to the company with respect to the transaction.

David Devoe was named president of Plymouth Spring Company, Inc. effective August 2017. Devoe has worked at Plymouth Spring for 25 years and most recently was vice

president of the company. Richard Rubenstein, chairman of the company said, “David has a wealth of experience in the spring business. We are very proud to have him associated with Plymouth Spring.”

The company, founded in 1959, is located in Bristol, Connecticut and specializes in spring manufacturing, fourslide stamping and wireforming.

Tri Star Metals, LLC has received accreditation for AS 9100C. Tri Star Metals manufactures, sells and distributes stainless steel, aluminum, nickel and specialty alloys.

The company is a unique hybrid, multi-location service organization supported by its own domestic cold finishing mill. Tri Star Metals leverages the strengths of its global mill partners, key alliances with specialized producers, and the capabilities of the Freeport manufacturing site to give customers the right product for specific applications. Tri Star offers engineered products supported by its national organization of sales and metallurgical professionals. Jay Mandel, president and CEO of Tri Star, stated, “Receiving our AS9100 certification opens the door for Tri Star to leverage its strengths to pursue aerospace and defense business suited to our unique manufacturing and distribution capabilities. We have worked tirelessly to achieve this accreditation, and it is a testimony to our strong team at Tri Star Metals.”

Tri Star Metals, LLC received accreditation for demonstrating its ongoing commitment to quality by satisfying customer requirements and industry specifications, and has demonstrated its commitment to world class quality, implementing and becoming certified to the AS9100 standard. “They have joined an elite number of organizations worldwide who have achieved certification to this globally recognized quality standard,” said Randy Daugharthy, director of the registrar program at the Performance Review Institute Registrar. “PRI Registrar is proud to partner with Tri Star Metals in this accomplishment and look forward to continued support of their objective of quality excellence.”

Mount Joy Wire, a leading U.S. manufacturer of specialty wire for many applications, has hired a new process engineering manager and a new quality assistant as part of its ongoing emphasis to add value to and ensure the quality of its products.

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Global Highlights

Matt Graham is the new process engineering manager at the company’s York location and will be responsible for processing and internal quality and supervising the company’s process control manager and environmental service technician. He reports to general manager Jon St i ne. Gr a h a m, who graduated from Millersville Matt Graham University in 2010 with a B.S. in chemistry and a minor in physics, previously worked six years at Mount Joy Wire until September 2015 as

the environmental process engineer. He then served as interim quality manager and understudy for the process engineering manager’s position until rejoining the company full-time in July.

Adam Dent is the new quality assistant at the company’s Wrightsville location. He is responsible for managing quality complaints and customer quality issues and supporting internal quality control and reports to quality manager Ed Hollock. Dent is also a Millersville alumnus, graduating with a B.S. in chemistry in spring 2017. At Millersville he was a member of the university’s American Chemical Society student chapter, and was awarded a NeimeyerHodgson grant to conduct collaborative research with ITT Engineered Valves, Lancaster. He also worked as a lab technician for Millersville and at K&L Plating, Lancaster.

(L to R) Jim Landis 43 yrs, Stephen Wagner 42 yrs, Richard Null 53 yrs, David Shelly Jr 43 yrs making wire

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Newcomb Spr i ng Cor p ha s announced the appointment of Nathan Watson as general manager of its Thornton, Colorado plant, and Jason Bingham as general manager of its Ooltewah, Tennessee plant.

Watson began his career at Newcomb Spring in 2012 as a CNC setup technician and operator, was later promoted to shipping and receiving supervisor and most recently to plant production manager. He is an Army veteran and completed three Middle East tours. During his nearly eight years of service, Watson was a student of Troy University’s distance learning program, and after being honorably discharged in 2009, he continued his education at University of Denver, earning a degree in molecular biology.

Bi ng ha m bega n h is ca reer at Newcomb Spring in 2000 as a quality technician. He was promoted a year later to quality manager, and then to his most recent position as operations manager in 2008. Bingham is a native of Ooltewah, Tennessee and earned his B.S. in engineering from Virginia Tech while working full-time and raising a family.

These appointments follow the retirement of both Bob Herrmann and Keith Porter, Sr., after decades of service as general managers of the Colorado and Tennessee plants, respectively.

Gibbs Metal has launched a crowdsourcing contest with prizes of $1,000, $500 or $300 for the top three innovative ideas using stainless steel scrap

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Global Highlights

and excess inventory created from the coil slitting process.

Slitting is a metal cutting process that “slices” narrower coils from a wider coil. The coil cutting process requires Gibbs to take an outer edge cut or a “side-cut” that frequently becomes scrap. In addition, the coil cutting process can produce shavings, which also become scrap.

The “middle material,” or prime coil material, is utilized for many applications. Gibbs frequently has overages of excess prime coil inventory on its shelves that goes unused. Rather than scrap the side-cuts, shavings, and prime excess inventory, Gibbs is looking for ideas on how to use this material. The contest runs from Dec. 1, 2017 through 5 p.m. (EST) March 1, 2018. Only three entries per person are allowed. For complete contest rules and to enter, visit gibbsmetalscontest.com.

nee Bieszczad, and a fond uncle, cousin and friend to many.

H is obit ua r y noted t h at Michals “was an admired and h ig h ly r espe c ted boss a nd mentor to his many employees at Andrew Technologies and Fun Incorporated in Wheeling, and his previously owned Mohawk Spring Corporation. His legacy David V. Michals will live on as he was a compassionate and generous supporter of many causes.”

Memorials may be made to American Heart Association, 208 S. LaSalle St., Ste 1500, Chicago, IL 60604 or PAWS Chicago, 1997 North Clybourn Ave. Chicago, IL 60614.

Obituaries SMI mourns the death of David V. Michals, 64, of Prospect Heights, Illinois, Aug. 18, 2017. He was the beloved husband of Kathleen Michals nee Strok, devoted and adored father of Andrew Michals, and is treasured by his dogs Blake and Minnie. Michals was the son of the late Thomas and Isabelle Michals nee Fabian; dear brother of Sandra Griffin and the late Wendy (Jim) O’Lear, the late Thomas (late Shirley) Michals and the late Randy (late Barbara) Michals; the son-in-law of the late Andrew and Helen Strok

SMI also mourns the passing of Anthony E. Indihar, Jr., 74, of Mount Prospect, Illinois, Aug. 11, 2017. Indihar was the president and owner of Gilbert Spring Corporation in Chicago from 1972 to 2016. He was the beloved husband of the late Patricia; father of Edward Indihar, LoriAnne (Rob) Del Dotto, and Anthony F. (Wendy) Indihar; grandfather of Holly, Nina and Frank Indihar; Reina and Nicholas Torrez; Ryann, Katelyn and the late Anthony Michael Indihar; great-grandfather of Charlotte, Madison and Riley; brother of Joyce (Tom) Boyle; and uncle of Tommy and Kevin Boyle.

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Global Highlights

SMI also mourns the death of Craig Miller, 86, Nov. 18, 2017 in Logansport, Indiana.

Born Aug. 5, 1931, Miller was the former president of Myers Spring Company. He received his bachelor’s degree in accounting from Indiana University and went on to receive a degree in education Craig Miller before becoming a teacher at Longfellow School, where he taught for 20 years. After his stepfather, Walter Myers, passed, Miller took over the helm of Myers Spring, and continued until he passed the business on to his son Todd. Although no longer at the helm, Miller stayed active by making deliveries with his co-pilot Wilbur Trinen. He was an Army veteran of the Korean War. He was a member of American Legion Post #60, V.F.W. Post #3790, Royal Center Masonic Lodge and Scottish Rite Valley of Fort Wayne. Miller was a member of First United Methodist Church of Logansport and attended the Mexico Church of the Brethren. He was an avid fisherman and enjoyed his yearly trips to Canada.

Surviving along with Craig’s wife, Barbara, is one son, A. Todd (Gretchen) Miller, Logansport; two daughters, Rindy (Doug) Boedeker, and Amy (Dr. Cyprian) Gardine;

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one sister, Marilyn (Dr. Joseph) Howard; six grandchildren; one niece and one nephew.

Memorials may be made to the Twelve Mile Community Building Fund, c/o Twelve Mile Community State Bank, P.O. Box 101, Twelve Mile, IN 46988.

SMI mourns the loss of Robert Arnold Cox, who died Dec. 9, 2017 after a lengthy illness.

Cox was born in Sherman Mills, Maine to Harold and Irene (Cox) Doliber. He lost his father a few years later and was lovingly raised on the family farm by Augustus and Fred Cox. Cox attended the University of Maine to study agriculture. Deciding “farm livin’ was not the life for him,” he moved to Connecticut in 1959, where he learned the tools of the manufacturing trade eventually joining All Five Tool Company/North American Spring Tool as a partner, where he spent the bulk of his working years. Until his illness he was a consultant for Sirois Tool in Berlin, Connecticut.

Cox enjoyed traveling and dining out with his wife Beth. His generosity and willingness to help friends and family was well-known, as was his love of practical jokes, the Boston Red Sox, Foxwoods, lobster and his pups.

Cox is survived by his devoted wife Beth (Scott) Cox; mother Irene Doliber; his children Rhonda Cox, Cindy Cox and Robert F. Cox, and their mother Janice Cox (Mel Armstrong); Kyle Cox, Damon Angelone, Michael Angelone (Sue), Rhonda DeNoto (Mike); 11 grandchildren, Trevor Johnson, Shane Johnson, Raina Cox, Kenley Cox, Bela Belaire, Carrissa Winters, Amber Angelone, Conner Angelone, Frankie DeNoto, Mickey DeNoto and Randy DeNoto; four great-grandchildren; siblings Clifton Sumner (Maureen), Joan Duffy and Herbert Perkins; half-siblings Mary Annis (Gary), Helen Lane (Frank), Clancy Hayes (Rachel), and Gagie Raven (Brian); many nieces and nephews, and his beloved dog, Lucy.

Services were held. Donations may be made to Connecticut Public Television https://cptv.org/ or American Diabetes Association. The family requests that you play your favorite slot machine in memory of Bob, he would love that.

SMI announces the death of Glenn A. Keats, age 97, a WW II Navy veteran, of Evanston, Illinois.

Ke at s a nd h i s b r ot he r, Be r t , f ou nde d Ke at s Manufacturing Company Oct. 1, 1958, on Cicero Avenue on the northwest side of Chicago.

Keats was the beloved husband of the late Olga L. Keats; loving father of Maria Eggemeyer and Allwyn (Mark) Nagel; revered grandfather of Emily Nagel, John Matthew (Jennifer) Eggemeyer and Susan (Daniel) Rooney; proud great-grandfather of Greta and Jack Eggemeyer, and Patric, Macy and Mia Rooney; inseparable brother of the late Bert (late Barbara) Keats; caring uncle of Wade, Matt, Paula and their children. Services were held December 22, 2017.

Ralph William Gifford was born in Tulsa, Oklahoma September 15, 1933 to Roy Gifford and Pearl (Davis) Gifford.

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Global Highlights

He died Saturday, Jan. 6, 2018. Gifford was the second oldest of four children. From a young age, he had a strong work ethic, always had a positive attitude and cheerful disposition. He was a tremendous help to his mother in caring for his siblings and his older sister who was hearing impaired.

After graduating from Central High in Tulsa, he volunteered to serve in the Army for two years. He served in Nice, France as a field radio repairman. When he returned from France, Gifford attended Oklahoma State University to pursue an engineering degree.

Gifford met his f uture wife, Phyllis Jan Grant, on a blind date, and eight months later, February 16, 1958, they were married in Ponca City, Oklahoma. Ralph and Jan were just a few weeks shy of celebrating their 60th wedding anniversary together at the time of his passing.

He began his career at Geophysical Research Corp in Tulsa, worked nights at a local spring company, and later ran Associated Spring of Oklahoma. In 1971, Gifford moved his family to Dallas to manage the Texas branch of Midwest Spring.

In 1984, he founded Gifford Spring Company, a manufacturer of precision springs and wire forms on Gold Street in Garland, where the company remains today. GSC has continued to thrive after Gifford’s 2012 retirement. His three children and one of his grandchildren currently work at Gifford Spring and continue to assist in its success.

Gi f ford wa s a pi l la r of t he Cumberland Presbyterian Church since his youth in Tulsa and at Lake Park Cumberland Presbyterian Church af ter moving to Dallas, now Lake Highlands Presbyterian Church. Gifford opened the doors and closed the doors, and whatever else needed to be done. He served several terms as Elder of Lake Park and LHPC, Property Committee Chair, Yard Crew, and has been a faithful member of the Men’s Fellowship. He was instrumental in the beginning of the Clean Water Project, and traveled twice to Guatemala and to Haiti for the implementation of clean water systems for these communities.

Gifford’s many joys throughout his life included extensive

gardening, travel, blacksmithing, and the Giffords’ second home at their cabin in Ladonia, in northeast Texas.

Gifford was diagnosed four years ago with a rare form of dementia. He retained his calm demeanor, never complained, was always grateful, and continued to be very strong; physically, spiritually and intellectually. His infamous smile continued to light up the room and the lives of everyone he met up until the last moments of his life.

Gifford is survived by his wife of 60 years, Phyllis Jan Gifford; three children, Melany Beth Gifford, Melissa

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Global Highlights JSSE Achievement recipients

(Missy) Anne Rodgers and husband Mike, Blake Gifford and wife Diana; brothers Fred Gifford of Bixby, Oklahoma and Richard Gifford of Adair, Oklahoma. He was the proud grandfather of five grandchildren: Evan and Abby Rodgers, Manny, Kelcy and Macie Gifford. He was preceded in death by his parents Roy and Pearl and his sister Viola.

Services were held. Donations may be made in memory of Ralph Gifford to Lake Highlands Presbyterian Church “Clean Water Project,” 8525 Audelia Road, Dallas, Texas.

International Shinko Machinery, known in the U.S. as Shinko Machine Tool Co., Ltd. celebrated its 50th anniversary in 2017. Shinko Machinery has its origins in Shinki Seisakusho, which manufactured wiredrawing machines. When Shinko Machinery made its entrance into overseas markets in 1984, the company introduced its popular machines, VF615FT, VF700ST and VF800MFT, at U.S. exhibitions.

In 1985, Shinko Machine Tool Co., Ltd. was established for sales and service, while Shinko Machinery continued in its role of developing and manufacturing machines. The company produces machines to make compression, extension and torsion springs with a minimum wire size of .0006” and a maximum wire size of .394.” The company introduced two new machines last year in honor of its anniversary: FC-20 coiling machine and LF-20 torsion machine.

To help celebrate the 50th anniversary, the company held ceremonies in Osaka June 23, 2017 and in Tokyo July 14, 2017.

From November 27–29, 2018, the Bombay Exhibition Center in Mumbai will host Tube India, 8th All Indian International Exhibition and Conference for the Tube and Pipe Industries. Held concurrently will be wire India and Metallurgy India as well as Welding and Cutting India.

Messe Düsseldorf and its Indian subsidiary Messe Düsseldorf India are the organizers of Tube India, wire India and Metallurgy 2018 while Welding and Cutting India 2018 is jointly organized by Messe Düsseldorf India and Messe Essen.

For more information on visiting or exhibiting at Tube India, wire India or Metallurgy 2018, contact Messe Düsseldorf Nor t h America, at 312-781-5180, email: info@mdna.com or visit http://www.mdna.com.

The Japan Society of Spring Engineers (JSSE) held a commemorative ceremony on Sept. 27, 2017, at Arcadia Ichigaya in Tokyo to mark the organization’s 70th anniversary. Two commemorative lectures were presented to 135 attendees which included 67 invitees.

Makoto Sahashi of Japan’s Engineering Policy Division, Road Transport Bureau, Ministry of Land, Infrastructure, Tra nspor t a nd Tou rism presented “Domest ic a nd International Trends of Automated Driving.” His presentation was followed by Masahiro Ogasawara of NEC Aerospace Systems, Ltd. who presented “Day to Day: The Challenge to the Universe.”

After the lectures, an opening speech was delivered

by Dr. Yuji Nakasone, JSSE chairperson and professor of Tokyo University of Science. A congratulatory speech was then delivered by Kazumi Tamamura, chairperson of the Japan Spring Manufacturers Association (JSMA) and chairman and CEO of NHK Spring Co., Ltd. This was followed by an additional congratulatory speech

by Yoshiyuki Matsumoto, chairperson of the Society of Automotive Engineers of Japan, Inc. (JSAE) and president of Honda R&D Co., Ltd. After the congratulatory speeches, there was a slideshow that displayed JSSE’s 70-year history. That was followed by an honors ceremony, where special achievements were given to 18 recipients.

The commemorative ceremony was followed by a reception with an opening speech delivered by Dr. Yuji Nakasone, JSSE chairperson and professor of Tokyo University of Science.

Dr. Katsuji Tosha, a former JSSE chairperson and adviser to the JSSE made a toast to the development of the spring industry and to the participants’ good health.

Motoyuki Sato, vice-chairperson of the JSMA and president of Mitsubishi Steel Mfg. Co., Ltd. provided a guest speech.

Dr. Takahiko Kuno, an honorary member of JSSE, also made a guest speech.

After plenty of mingling and exchanging of information, Toshio Kazama, executive chairman of the 70 th anniversary commemorative ceremony and executive operating officer of NHK Spring Co., Ltd., brought the reception to a close with a final speech. n

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©iStockphoto.com/Scott Hirko

Regional Spring Association Report CASMI Report

By Michael Bandy, Co-Executive Director, CASMI

Joe Goldberg Honored by CASMI The Chicago Association of Spring Manufacturers, Inc. (CASMI) recognized longtime member and past president Joe Goldberg of International Spring Co. at its Membership Dinner Meeting Nov. 16, 2017, in Oak Brook, Illinois.

Joe, who has been a member of CASMI for 48 years, was honored for “his significant contributions to the organization and the industry.”

Nearly 60 CASMI members, family and friends were on hand to celebrate Joe’s accomplishments.

In addition to recognizing Joe, members participated in a variety of table topic discussions that focused on: employee engagement, manufacturing in the current economic environment, technology and regulation.

Strauss Headlines January Meeting CASMI’s Jan. 17, 2018 Membership Dinner Meeting featured William A. Strauss, a senior economist and economic advisor in the economic research department at the Federal Reserve Bank of Chicago. His chief responsibilities include analyzing the current performance of the Midwest economy and the manufacturing sector. He produces the monthly Chicago Fed Midwest Manufacturing I ndex a nd orga n izes t he Ba n k’s Economic Outlook Symposium.

Strauss has taught as an adjunct faculty member at Loyola University and Webster University in Chicago.

He c u r rent ly teaches at DePau l University Kellstadt Graduate School of Business and at the University of

Above: The Goldberg family (l-to-r): Richard, Sheila, Joe, Brett and Steven. Right: David Avrin

Chicago Graham School. His research papers include analysis of the manufacturing sector, the Midwest regional economy, the trade-weighted dollar, business cycles and Federal Reserve payments operations.

Strauss is a regular contributor to CASMI events, having provided his economic outlook for the membership for several years.

CASMI Hosts Successful SpringWorld Kickoff Dinner On Oct. 19, 2017, CASMI hosted its SpringWorld 2018 Kickoff Dinner at Maggiano’s Little Italy in Schaumburg, Illinois. It was attended by 70 CASMI members, SpringWorld exhibitors and potential exhibitors. This biennial event signals the beginning of the year leading up to SpringWorld, which takes place Oct. 3-5, 2018, at the Rosemont Convention Center in Rosemont, Illinois.

CASMI Board and staff members provided an overview of the

upcom i ng t rade show, wh ich is already 86 percent sold.

I n a dd it io n t o n e t w o r k i n g , dinner and show announcements, David Avrin, president, Visibility International, presented “It’s Not Who You Know, It’s Who Knows YOU!” The program’s focused on attracting the best customers and creating “an Army of Raving Fans.”

Companies interested in exhibiting at SpringWorld 2018 should contact CASMI at 630-359-4273, or email dbandy@casmi-springworld.org.

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Regional Spring Association Report ©iStockphoto.com/Scott Hirko

NESMA Holds New Business Meeting Event

By Ted White, Hardware Products The New Engla nd Spr i ng & Metalstamping Association (NESMA) held its first ever separate business meeting Dec. 1, 2017 with 45 in attendance. Prior to this year, the business meeting was incorporated into the annual Christmas party. The NESMA board of trustees decided to divide the two events so business functions could be handled separately, and the Christmas event would be quite simply a party.

The first NESMA Christmas Party had only 8 attendees, in comparison to the 180 to 200 people who now routinely attend. The 2017 party was held Dec. 14 at the Farmington Club and included a DJ, a lot more dancing and a lot more partying.

NESMA president Michael Brault led the business meeting and cited over 20 accomplishments the association made in 2017. These included the successful partnership with SMI in holding the Metal Engineering eXpo in October. Confirmed attendees at the Hartford show increased by 49 percent when compared to the first show in Charlotte. There were 25 NESMA affiliated spring companies that brought 164 attendees.

NESMA added 15 new member compa nies in 2017 bringing t he total membership to 85 companies, the largest it has ever been. NESMA also added two new board members: Charlie Radcliff of Radcliff Wire and Lynn Bousquet of Connecticut Spring & Stamping.

Other significant 2017 accomplishments included the introduction of a new class of membership called “Exclusive Membership,” which includes five areas of expertise: banking; insurance; legal; accounting; and marketing. NESMA changed its approach to legislative involvement by joining the Connecticut Business and Industry Association (CBI A). Work force development

Top: Award winners (l-to-r): Bill Lathrop, Lynne Perotti and Ted White with NESMA president Michael Brault. Above (l-to-r): Lynette Nadeau, Michael Brault and Cindy Bombard. Left (l-to-r): Ted White and Bill Lathrop

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Regional Spring Association Report

efforts continue with the AEDAC program at Rowley Spring and Stamping, as well as programs at Nashoba Valley Com mu n it y College a nd Tu n x is Community College.

During the networking portion of the meeting, it was brought up repeatedly that NESMA has grown in many directions at a time when many other organizations are struggling. It was generally concluded that this was the result of many small things being done right, rather than any one big thing.

The eXpo was big, but involved the work of many individuals, including

Bill Lathrop, president of Colonial Spring and the co-chairman of the show. NESMA president Michael Brault, who is vice president of Ultimate Wire Forms, has worked tirelessly to interweave NESMA into many Bristol area organizations. Lynette Nadeau, president of Southington Tool and Manufacturing Corporation and NESMA vice president, has been productive as chairman of the NESMA events committee, helping plan successful 2017 events and putting together a strong program of 2018 events. Jackie Zenhye of FENN helped organize a new

Alan Ortner

Lynne Perotti

Scott Kirkpatrick

website and logo for NESMA. Many other members, too numerous to mention, did a lot of hard work behind the scenes to make NESMA so successful.

Alan Ortner, president of North American Spring Tool, gave a financial update through October 2017 and introduced the 2018 budget. SMI executive director Lynne Carr provided an update on SMI activities. She graciously congratulated NESMA for its ability to promote and enlarge the eXpo. The meeting included awards. Bill Lathrop introduced me with a very funny opening. With my term on the board concluding at the end of 2017, I received an award recognizing my

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Regional Spring Association Report

service. Lynne Perotti of Connecticut Spring was int roduced by Scott Kirkpatrick of Radcliff Wire for the same award. In addition, Lynne Carr and Michael Brault presented an award to Bill Lathrop in “Special Recognition for Dedication and Service to the Industry.”

Michael Brault concluded the event by announcing that NESMA would form a Young Professionals committee to design and implement programs for younger members of the spring and metalstamping industry.

Michael said this will help get younger professionals involved in NESMA and teach them what it is like to work at and belong to a trade organization.

He also announced the formation of a past presidents council. He stated that anyone who takes on the title of president should be willing to give counsel to his successors. This council could be convened by the sitting president at any time when they need help.

WCSMA Will Hold February Tabletop Expo The West Coast Spring Manufacturers Association (WCSMA) will hold its 2018 Tabletop Expo Thursday, Feb. 22, from 3 to 7 p.m. at the Holiday Inn at 7000 Beach Blvd. in Buena Park, California. This is a new venue for the event.

WCSMA bills the expo as “a must-attend trade show for everyone in the spring manufacturing and metalforming indust ries.”

The expo will include door prizes, free hors d’oeuvres, a cash bar and technology updates.

The WCSMA Tabletop Expo is held every two years and includes vendors who supply products, materials, equipment, services and

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There is no charge for springmakers to attend.

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Be Aware Safety Tips

The Road to Operational Excellence via Safety, Health and Environmental Management

By Laura Helmrich-Rhodes, CSP, Ed.D.

I

t seems that every management textbook uses the same framework to describe the general functions of management: planning, leading, organizing and controlling. Using these characteristics to measure your company’s operational health is a good start. Are all of those in leadership prepared for and pulling their weight in these areas? Are those expectations in writing?

Are they published or implied?

A culture of safety, environmental stewardship and operational excellence all go hand in hand. One well-known global organization’s commitment to organizational excellence is widely published and one to emulate. They list their “Operational Excellence (OE)Tenets” specifically in safety, health and environmental terms.

Who would have thought that safety would be the building blocks to operational success! They even begin by saying that operational excellence is the “systematic management of process safety, personal safety and health, environment, reliability and efficiency to achieve world-class performance.” (Chevron, 2017) Chevron’s OE tenets address a wide range of behaviors.

The general functions of management are there, but it is easy to see that the focus on safety, health and environment (SHE) is a priority for the whole organization. These all demand that employees always operate under safe and controlled conditions.

• Always ensure safeguards are in place and functioning.

• Always follow safe work practices and procedures.

• Always meet or exceed customers’ requirements.

• Always maintain integrity of dedicated systems.

• Always comply with all applicable rules and regulations.

• Always address abnormal conditions.

• Always follow written procedures for high-risk or unusual situations.

• Always involve the right people in decisions that affect procedures and equipment. (Chevron, 2017)

The key word in Chevron’s tenets is “always.” Operational excellence behaviors are not just for when it is cost effective or when it is convenient. These behaviors happen when you are short-handed, when materials and resources are limited and when delivery times are tight.

OSHA has its own recommended practices for creating a culture or safety. These include management leadership, worker participation, hazard identification and assessment, hazard prevention and control, education and training, program evaluation and improvement and finally, communication with contractors and staffing agencies. Operational excellence can result from dedication to these elements. According to OSHA’s publication, “Management Leadership,” there are four action items your organization should consider to improve your commitment to OE.

Laura Helmrich-Rhodes, CSP, Ed.D., is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A former member of PA/OSHA Consultation, she is an associate professor in the Safety Sciences Department at Indiana University of Pennsylvania where she teaches graduate and undergraduate classes on topics such as OSHA standards, safety communications, workers’ compensation and human relations. Rhodes is available for safety advice and information. Contact SMI at 630-495-8588 or laurahrhodes@gmail.com.

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join the best: 16-20 April 2018 Düsseldorf, Germany I www.wire.de

Leadership Action Items • Communicate your commitment to a safety and health program • Define program goals • Allocate resources • Expect performance Perhaps you are wondering “Does any small business actually do these specific things?” or, “How does the average CEO dedicate time and resources specifically to these items?” Each year, the National Safety Council (NSC) recognizes “CEOs Who Get It” by demonstrating a personal commitment to worker safety and health.

These CEOs show the key role management leadership plays in building a culture of safety. In addition, OSHA has accumulated over 60 success stories on its webpage describing the implementation of operational excellence through safety initiatives.

The key word in Chevron’s tenets is “always.”

Operational excellence behaviors are not just for when it is cost effective or when it is convenient. These behaviors happen when you are short-handed, when materials and resources are limited and when delivery times are tight.

• Accidents are truly preventable • Always operate within design and environmental limits • Leadership at all levels is responsible and accountable for those responsibilities • Commit your company to your own list of OE tenets • Publish your operational excellence commitments in company annual report • Communicate them to employees whenever possible • Post them for all to see and hold everyone accountable for that shared commitment

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As we move into a new year, consider formalizing the building blocks of operational excellence by committing to your planning, leading, organizing and controlling safety, health and environmental behaviors. n

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OSHA Recommended Practices for Management Leadership https://www.osha.gov/shpguidelines/management-leadership.html

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Dean of Springs

Leadership Can Affect Culture: Quality and Integrity

By Dan Sebastian

I

n the Summer 2017 issue of Springs, I introduced 10 fundamentals that help shape a company’s culture.

The culture is the way in which a company approaches its day-to-day tasks and its set of common values. It develops over time and is sometimes hard to change. There are other times when a simple act by the leadership team can significantly alter the established culture.

In my many years in the spring industry, I experienced, and at times was part of that secret “change agent” that changed the culture. I had either the opportunity or misfortune of being a “parachute manager.” That is the person who is dropped in from the outside to a company or one of its divisions, to address some internal issues. I would like to relate a few examples that may help demonstrate the effects of leadership in shaping culture.

they were making a mistake, but would work with them to make the transition to the other supplier as seamlessly as possible.

It was a long r ide home to Logansport. I got a lot of input about how we should handle “those nogood so-and-so’s who were stealing our jobs.” I tried to explain that I was also unhappy, but doing something inappropriate was the wrong thing to do, even if it was for what we believed to be the right reason.

Over the next few months, we built schedules on how to move each part to the other supplier in sequential order so that the auto company had ample time to validate and test the parts.

During this very uncomfortable time, our engineering manager had a request to go to Detroit and meet with the auto company about a problem. This time it was just the engineering manager and myself. After we arrived in Detroit, we were escorted into a room with more than 10 engineers and the director of engineering. The engineering director explained that they had recently introduced a new transmission with our parts and they were failing in the field.

As we waited for them to tell us it was our fault and we had to correct it, they surprised us by saying that they had already tested our parts and found them to meet all their requirements.

I explained that we were being rationalized out, and perhaps they should be working with their new supplier. They told us they did not have time to start over with another supplier, and besides, all the engineers that were there had reviewed

Doing something inappropriate was the wrong thing to do, even if it was for what we believed to be the right reason.

Integrity Matters In my early days at MW Industries, I worked hard to bring about a change in culture and return pride in our products and in the way we serviced our customers. My team came in and worked tirelessly to bring about change in a company that, after many years as a very small part of a multi-national corporation, had been reduced to employees just going to work every day, doing their job and going home. The changes were beginning to work in restoring pride, but we still had to work on that “integrity” thing (doing the right thing for the right reasons).

Our sales representative asked us to go Detroit to meet with a large auto company to explain to them why they should expand our business with MW Industries. We assembled a team of customer service and plant employees to make a presentation that we knew would “wow” them.

When the buyer and her boss arrived, he looked at her and said, “You did not tell them?” and the room went silent.

He then announced that we had been rationalized out of the supply base. We were all divested. At that point, I responded that we were very disappointed and believed

Dan Sebastian is a former SMI president and currently serves as a technical consultant to the association. He holds a degree in metallurgical engineering from Lehigh University and his industry career spans more than four decades in various technical and management roles. He may be reached by contacting SMI at 630-495-8588.

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the design and had no solutions that would not result in very expensive and time-consuming tooling changes. After more than an hour, we came up with an idea on a process change in our parts that might be able to solve their problem.

By the time we arrived home, we had formulated a plan on what to do. The hard part was how to do it. We assembled a team of engineers, manufacturing managers and equipment operators to put together a game plan.

Everyone responded, even though we had a few dissenters who wanted to know why we were helping someone who was taking away their jobs. Sample were produced, rushed to Detroit and put on test. It worked! Now we had to figure out how to do this in high volume production. After a few tries, we were able to get the production process going.

Everyone was proud of what we had accomplished, but waited to see if “doing the right thing for the right reasons” was only going to end with our company being required to transfer the part to the other supplier. What happened next was proof that integrity does matter. The director convened a meeting with all his colleagues in Detroit and began it with a strong defense of our company, saying it was wrong to take out a supplier that could perform so well in a crisis.

After that meeting, we were reinstated as a key supplier and enjoyed a lot of business in the ensuing years. More importantly, the lesson of integrity had the effect of changing our company culture, which made us a better company.

Quality Matters Quality (excellence) is an essential part of a company’s culture. Without quality and a way to prove it, a company’s future is questionable. In the early ‘80s, the U.S. auto industry faced what seemed to be an insurmountable crisis. Sales had fallen, the Japanese were taking market share and the quality of American-made vehicles was, at best, in question.

After years of unparalleled success with limited worldwide competitive pressure, the attitude that the public would buy whatever was produced had come to an end.

It was under that backdrop that I was parachuted into a division of a public spring company that made parts for the auto industry. I took the job knowing there was an inventory problem, and that profits had disappeared year after year (this from a division that had once been the company’s leading profit generator). Customers had begun to question our quality. There were lots of opportunities to improve.

The clear cultural approach to quality, that had been driven home by the demands of the automakers, was having products at their plants was more important than how good it was. Under that challenging scenario, we began to address the problems.

Under pressure from senior management, I started with the inventory issue (the common language of money was very loud). As the team reviewed the inventory on

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hand, I noticed a large number of boxes labeled B.O.P. My immediate assumption was as an auto supplier it stood for BuickOldsmobile-Pontiac, who were among our largest customers.

After some time of not being able to find it reported on our computer reports, I went to the production control department to get an explanation. After showing them my problem, I expected there was a logical explanation.

What came next was a surprise to someone who was still trying to take off his parachute.

Everyone started laughing and proceeded to explain to me it stood for “Bottom of the Pallet.” Apparently, the auto companies would check a few parts from the top of each pallet when it was received. If they were good, there were no problems. As a way to help the profits of the company, employees would save the parts that had fallen on the floor or were “a little” off specification and put them at the bottom of each pallet. All the good parts were placed on top.

This seemed a little unusual, so I directed to have all the parts moved to the back of the building and to

gather all the employees in that area. I looked each employee in the eye and explained that, if it was not good enough to go in the box the first time, it was never good enough. After I made my point, each employee had to stand there while every B.O.P. box was dumped in the scrap hopper. A point was made.

During the next few months, the employees did their best to make good parts, but it was clear they did not have the tools to get the job done. Working with the company’s technical experts, we developed a program in Statistical Process Control (SPC) that gave everyone the tools they needed. Every employee, from accounts to machine operators, were taken from their regular jobs and trained for three days.

From the seed of this irrational act that required every employee to stand there and watch questionable parts be destroyed and undergo three days of training, we made a quantum leap in our cultural commitment to quality. If you are still curious about the inventory issue: we found the problem, cleared the books and the company returned to profitability. n

Quality (excellence) is an essential part of a company's culture.

Without quality and a way to prove it, a company's future is questionable.

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The Road to

Operational Excellence T

By Gary McCoy

Winter2018-v3.indd 24

Artwork created using images from: ©iStockphoto.com/OlgaYakovenko

24 / SPRINGS / Winter 2018

his issue of Springs looks at how spring manufacturers are increasingly embracing operational excellence to gain and sustain performance improvements.

What is operational excellence? Here’s how businessdictionary.com defines it: “A philosophy of the workplace where problemsolving, teamwork, and leadership results in the ongoing improvement in an organization. The process involves focusing on the customers’ needs, keeping the employees positive and empowered, and continually improving the current activities in the workplace.”

1/17/18 9:07 PM

“A philosophy of the workplace where problem-solving, teamwork, and leadership results in the ongoing improvement in an organization.

The process involves focusing on the customers’ needs, keeping the employees positive and empowered, and continually improving the current activities in the workplace.”

Artwork created using images from: ©iStockphoto.com/OlgaYakovenko

I recently attended a session on operational excellence just prior to the start of the 2017 Assembly Show.

You can read my report on page 26.

My takeaway from this three-hour session: There are a lot of different paths on the road to operational excellence, and very many helpful methods or formulas to get you there. You need to pick a path and stick with it.

I r e c a l l t he pr esent at ion by Brian McKibben of The Cumberland Group. Early on in his presentation, McKibben put a PowerPoint slide on the screen that contained a myriad of operational excellence tools: Toyota Production System, SME, VE or VA, CI, Six Sigma, SPC, ERP and Kaizen.

And that’s only naming a few!

As McKibben pointed out: “None of them are complicated rocket science.” Whatever method you choose, choose one and stick to it.

Mike Betts, in his President’s Message on page 2, talks about how the Betts Company recently adopted

the Entrepreneurial Operating System (EOS). The man who helped develop EOS, Gino Wickman, has a good book that helps explain how this system works called “Traction: Get a Grip on Your Business.”

His belief: “You cannot build a great organization on multiple operating systems. You must choose one.”

In addition to my report from the Assembly Show, here’s what you have in store to read about operational excellence.

• Adam Jacobson, general manager of JN Machinery, looks at “Technology Changes on the Road to Operational Excellence” on page 30. He provides readers with an overview of how the company implemented several technology changes to revolutionize the way the JN Machinery team works in and out of the office.

• Our Flashback feature rewinds nearly 25 years ago to the May

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1993 issue of Springs to “Focus on Basics: The Best First Step for Improved Operations.” The author says, “Improvement opportunities are not available just to large organizations through large capital investments and technology. Rather, a consistent focus on the basic blocking and tackling of manufacture practice can make companies of all sizes more competitive.” Still good advice today.

• Consultant Vince Bovino looks at “The Relentless Battle for Operational Excellence: Four Systems to Significantly Improve Operating Performance” on page 34. As Bovino wisely observes, “It does not matter if you are just getting started with an improvement initiative or you have been formally at the improvement game for many years, you must have a single-minded objective for the initiative. Too many organizations have improvement initiatives that sound good, but

Experts Provide Operational Excellence Roadmap

By Gary McCoy

they are not aligned to the core objective of that business.”

• Finally, Melissa Barton and Bill Torres of Gibbs Metals review a recent Harvard Business Review article, “Why Do We Undervalue Competent Management?” The authors argue that considerable opportunities exist when companies ensure that operational excellence is a key component of strategy.

What measures have you undertaken to reduce waste and increase production to improve your company’s operations? As Jacobson observed in his article, “Change may have been difficult, but the results are clearly worth it!”

Whether it is smooth sailing or lots of bumps and bruises from hitting potholes, let us know how your spring company is doing on the road to operational excellence. Send me your comments via email: gmccoy@ fairwaycommunications.com. n

E

mbracing operational excellence was the focus of a halfday workshop just before the start of the Assembly Show, Oct. 24, 2017, Donald E. Stephens Convention Center, Rosemont, Illinois. The workshop focused on how manufacturers are increasingly embracing operational excellence to gain and sustain performance improvements.

Kevin Duggan, founder of the Institute for Operational Excellence and Duggan Associates in North Kingstown, Rhode Island, provided this helpful definition of operational excellence: “When each and every employee can see the flow of value to the customer, and fix that flow before it breaks down.”

Duggan said there are eight steps to achieving operational excellence: 1. Design a lean flow using lean guidelines 2. Implement a lean flow 3. Make the lean flow visual 4. Create standard work for the lean flow 5. Make abnormal flow visual

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6. Create standard work for the abnormal flow 7. Teach employees to maintain and improve the flow to the customer 8. Free management to work on offense

Assembly Show Grows

Duggan advocates for the concept of “value stream design” instead of “value stream mapping.” He said the mapping process focuses on eliminating waste, while the value stream design focuses on the customer and product innovation.

What is good value stream design?

Duggan says it is based on guidelines, not opinions. It is not directed by management or a steering committee.

It is not done in a kaizen event and the objective isn’t to eliminate waste.

Duggan says waste is eventually eliminated, but it is not the primary function of value stream design.

Duggan says the real goal of operational excellence is business growth.

He shared several examples of companies where that is taking place.

all areas at the recent trade show and conference. The exhibit

Lean Can Work Anywhere Darril Wilburn is a partner with Honsha Associates, which is a group of former Toyota team members. He’s a faculty member of the Lean Enterprise Institute. Wilburn learned the Toyota system of lean and is the co-author of “Toyota by Toyota.”

Wilburn said he’s heard a variety of objections to company’s implementing lean into their business. Here are a couple of examples: “It won’t work here, we are unique.”

“We don’t make widgets and we are not Toyota.”

“Our variety and complexity is too high, we can’t do lean.”

The fifth annual Assembly Show included 5,250 engineers and executives responsible for assembly manufacturing. BNP Media, publishers of Assembly magazine, announced growth in hall floor had 295 exhibits occupying 76,800 net square feet, a 15 percent increase over 2016. With nearly 8,000 industry professionals from 48 states and 28 countries registered to attend, the Assembly Show experienced a 12 percent increase in total registrations over 2016. Exhibitors responded enthusiastically with over 75 percent of the 2017 show exhibitors renewing booth space on-site for the 2018 show, which will take place Oct. 23-25, 2018 back in Rosemont, Illinois.

complexes. Lean was implemented at this company with amazing results.

In an example that is near and dea r to most motorists, Wilburn talked about the work his company is doing with the Arizona Department of Motor Vehicles (ADOT) to implement lean. Since implementing lean, motorists now average 20 minutes to complete their transactions versus hours. Jokingly, he said one of the unintended consequences of their lean work is a decrease in scratch off lottery ticket sales through vending

machines at ADOT facilities. “Shorter waits, less ticket sales.”

Wilburn explained how companies are utilizing the Single Minute Exchange of DIE (SMED) concept to realize the same lean objectives that drive traditional lean operations.

SMED is one of the many lean production methods for reducing waste in a manufacturing process. It provides a

His presentation focused on using lean in high mix, low volume and other unique environments. “Lean can work in any environment,” argued Wilburn. He told the story of doing a lean assessment at a company that makes wooden trusses used in the floors and roofs of large apartment

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rapid and efficient way of converting a manufacturing process from running the current product to running the next product.

Escaping the Improvement Trap “Despite the near universal acceptance of lean manufacturing methods, most companies rarely achieve anything more than an average level of improvement maturity.”

Th at w a s t he me s s a ge f r om Brian McKibben, a partner with The Cumberland Group. When it comes to common improvement tools, he said there is a lot of overlap.

Of improvement tools, McKibben said there are no silver bullets; none of them are complicated “rocket science;” all are useful, with appropriate usages; and their applications are a “complex” stew that are not simple to diagnose.

McKibben identif ied t he f ive critical ingredients required for successful improvement.

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1. A meaningful business value proposition and strategy that drives key improvement actions.

2. An engaging environment where people can do their best work.

3. A focus on meaningful metrics while avoiding irrelevant details.

4. Process improvement efforts that maximize cross-functional process performance and foster deeper process understanding, innovation and execution of best work practices.

5. An executive mindset that focuses on customer value, people development, process performance and business improvement outcomes, not solely on savings.

McKibben said leaders must avoid weak or missing ingredients for enterprise excellence. “Keep the big picture of your business processes in mind, such as strategy, customer requirements, operating plans and processes.”

He said you must also be aware of faulty drivers of improvement initiatives such as the “shiny new object syndrome.” McKibben further said companies must also constantly search for weak or missing ingredients, by using company self-assessment tools like AME Lean Sensei. The Association for Manufacturing Excellence offers the AME Lean Sensei to anyone interested in benchmarking their organization against distinguished AME Excellence Award recipient companies. More on this program is available at: www.ame.org/lean-sensei.

Finally, he said the “devil is in the details of your business value streams.” Improvement can be accomplished by constantly pressing into customer requirements and your business strategy.

Smart Factories Are Coming Pat rick Lucansky, president and managing partner at Value Innovation Partners, Ltd. In Mundelein, Illinois,

5/15/17 2:02 PM

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specializes in Six Sigma and lean enterprise. His presentation looked at Industry 4.0, which is a name for the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of Everything (IoT), cloud computing and cognitive computing. Industry 4.0 creates what has been called a “smart factory.”

Lucansky said IoT’s impact will be far reaching. He said projections put IoT device sales at $6.7 billion in in the next couple of years, as companies develop and deploy these devices in what he calls the “fourth industrial revolution.”

“The Internet of Everything has already set in motion the idea of a fourth industrial revolution — a new wave of technological changes that will decentralize production control and trigger a paradigm shift in manufacturing.”

While the full impact of Industry 4.0 is still many years away, Lucansky believes manufacturers are closer to Industry 3.5 which he describes as “a steppingstone to get us there (Industry 4.0) and really get our heads around it. IoT will allow companies to understand how it works and how it can impact operational excellence.”

He said smart factories are beginning to show up at companies like Bosch, Siemens, Volkswagen and GE. Lucansky says smart factories will allow the products to “talk to us and tell us what it needs, why it needs it and when.”

Lucansky says smart factories will allow everything to be networked to provide better connections between customers and suppliers.

“Sensors on the factory floor constantly transmit data at every step of the manufacturing process to provide operators with information they need to produce a better product and ensure on-time delivery,” observed Lucansky.

According to Lucansky, smart product ion prov ides for g reater interoperability, real-time information, collaboration and continuous improvement. He said many new apps

Trends and Drivers in Manufacturing During his presentation on smart factories, Patrick Lucansky of the VIP Group provided five trends and drivers in manufacturing.

1. The New Workforce – New recruits are tech savvy and very collaborative. These recruits must become productive quickly.

2. Regulatory Environment – Managed compliance processes to decrease risk. Compliance applies to materials, production, suppliers and global agency.

3. Increased Customer Centricity – Digital-savvy customers are driving innovation. The role of engineering, product and supply chain is changing.

4. Next-Shoring (Reshoring and Globalization) – Tax incentives and China’s increase in labor costs are driving reshoring and shifting production from overseas to the U.S. and E.U. 5. Faster Innovation Cycles – By 2018, 60 percent of the top 100 global manufacturers will be using a product innovation platform approach to drive enterprise quality and speed.

are available for Industry 3.5 including LEA!N Power Tools, a powerful new app that applies lean concepts for continuous improvement to manufacturing through the Google Apps for Work platform. The apps promise to help connect users to networked equipment on the shop floor.

He cautioned that there are many challenges to the development of smart factories, because the revolution could yield greater inequality, particularly in its potential to disrupt labor markets.

“Talent, more than capital, will represent the critical factor of production.”

Overall, he said managing and assuring IoT security will continue to be one of the greatest challenges, especially in protecting data.

The takeaway from this three-hour workshop: operational excellence goes beyond the traditional event-based model of improvement toward a longterm change in organizational culture. n

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Technology Changes on the Road to Operational Excellence

By Adam Jacobson, JN Machinery

T

he world is constantly accelerating at a high pace thanks to the internet, which has revolutionized ever y t hing, f rom ou r cars to the way we pay our bills. At JN Machinery, we have recognized these changes and reacted by making substantial improvements to our workplace so we can better serve our clients in this technological climate.

Over the past year, the JN team has taken a good look in the mirror.

We asked: “How can we become more productive in our office to support our clients and the increasing demands placed upon on us, in order to increase productivity?� To answer this question, JN focused on three main concepts: documentation, communication and information. We outlined goals to reduce paperwork by going digital, improving overall communication, and refreshing the JN brand to give our clients a clear and concise brand image.

Documentation We started our update by going digital to reduce paperwork. One simple thing we did was save important documents to our server as PDF files.

This made all documents easily accessible, organized and digital. We took it a step further by integrating Google Suite into our digital repertoire. We utilize GoogleDocs and GoogleSheets so multiple users can collaborate on a single document simultaneously, send email alerts when edits are made, add

comments and anything else we may need. Since the JN team is in and out of the office, this has allowed us to seamlessly continue working while in different locations.

Communication Our next task was to update, modernize, and streamline communication within the JN team. This simple task was where we made the most changes.

Our biggest change was updating the phone systems. Gone are the days of multiple phones ringing in the office at one time and taking handwritten messages when someone is out or unavailable. By upgrading to Comcast Business, we can now better serve our clients when they call based upon their particular needs. The phone system allows us to set up a menu for callers to select a specific department based on their calling purpose. Because the JN team travels often, this phone system allows calls to be forwarded directly to the personal cellphone of the right individual via the Comcast Business App. This multifunctional app works for incoming and outgoing phone calls.

This new phone system, along with Google Suite, means that the JN team never misses a beat when it comes to keeping business flowing smoothly.

Information Our last goal was to refresh the JN brand digitally. Quite often our website is the first thing our clients see

when researching us. Our previous website was not user-friendly and very outdated. We put some thought into what our current and potential clients would like to see when they visit our website. As a result, we created a new digital image. The website now converts to mobile viewing for any device. Overall, our new website is much more user-friendly, inviting and maintains a clear brand image.

To top it off, we refreshed our JN Machinery logo so that it truly stands out on any digital or print platform.

For better or for worse, the technological world we live in continues to advance daily. At JN Machinery we have done our best to keep up with the times in order to provide the best service we can. Our new technological implementations have revolutionized the way our team works in and out of the office. We took notes from others, who have made these advancements.

Using the ideas that worked best for our needs. If these are the kinds of things that your company might benefit from, feel free to reach out.

Change may have been difficult, but the results are clearly worth it! n Adam Jacobson is the general manager of JN Machinery in East Dundee, Illinois, a position he has held since October 2015. He earned an associate degree in automated manufacturing and has more than 10 years of experience in manufacturing, mainly in plastics. Jacobson can be reached at 224-699-9161, ext. 120 or email: adam@jnmachinery.com.

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Flashback

Focus on Basics: The Best First Step for Improved Operations

by Thomas E. Arenberg (Editor’s note: This article was originally published in the May 1993 issue of Springs and provides an interesting look at the thinking on operational excellence from 25 years ago.)

D

ownsizing, rightsizing, regulations, computerized and costly equipment... Each a current buzzword that reflects ways for businesses to cope with the constantly changing climate in which we must compete, thrive or survive.

Some of the nation’s most prestigious corporations are learning that virtually unlimited resources do not automatically lead to unlimited success. However, resources certainly help.

But a small company, one that depends on major corporations as customers, rarely has the luxury of time, resources and expert staff to guide them through the maze of change that is becoming increasingly more important. How to proceed?

A return to the basics is essential for the job shop company to thrive and survive.

It is hard to find a newspaper or business publication that does not talk about the need to achieve new levels of global competitiveness. And the only weapons in our arsenal are: lead time, quality and cost.

In order to become more competitive, companies have realized that manufacturing operations are key to making improvements in these areas

and now aggressively focus on improvements in those functions to survive.

This renewed focus on improvement t y pica l ly put s sig n if ica nt pressu res on suppliers, because purchased components of end items typically represent 50–60 percent of the overall cost. As such, many companies look to suppliers as the initial source for improvement.

Job shop spring manufacturers are particularly burdened by the issue of suppliers being squeezed to produce more for less. As original equipment manufacturers (OEMs) look around for improvements, job shop companies are sometimes, and unfairly, targeted subjects. While compa nies need improvements in suppliers to become competitive, most make the mistake by starting with the supply chain.

Making major improvements in an external organization in order of magnitude is more difficult than changing your own organization. It

is critical to prove success stories in-house before asking or directing suppliers to improve their operations.

There are a variety of ways to improve operations. Large corporations have the luxury to consider significant capital investments in automated equipment and technologies as one obvious method for improved operations. But these capital resources are typically unavailable to the small supplier and smaller manufacturer.

To reflect the increased demands for better suppliers, small companies must seek improvement without the risk of significant capital investment.

One approach, which has been proven i n m a ny locat ion s, is a consistent focus on the basics of manufacturing and product design. New technology and new techniques can help, but the key to success is a focus on the basics. Addressing the “blocking and tackling” of manufacturing may not have the dramatic appeal of

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The key to success

high technology investment, but it is without a doubt the best first step in improving operations.

This step has lower risk, and offers constant improvements in lead time, quality and cost.

What are the Basics?

is a focus

on the basics

While the basics may appear simple in black and white, they are not easy to accomplish. They require more resources than have been available in the past in design engineering, purchasing and product development. They also require a consistency of purpose or a vision of the i mproved or ga n i zat ion throughout the organization.

• • • • • • •

•

A brief list of the building blocks is: Focused manufacturing Elimination of waste Lead time Hands-on management involvement Customer/operator meetings Joint product development between customer and supplier Focus on quality in the product, and in relationships with customers Emphasis on people as the primary source of improvements

Focused Facilities While “focused facilities” is a term that has been misused, sometimes it is easiest to describe what is not a focused facility.

If your plant consists of departments of similar, dedicated equipment—one department for secondary operations, one department for heat-treat, etc. — it is not focused. Your parts end up getting a plant tour on a daily basis as they get carted from department to department. An appropriate approach for process design is a “start to finish” concept where coilers, secondary

operations and heat-treat are close together. More important than location is the fact that you manage the operation with this dedicated flow in mind.

Companies are succeeding in implementing the concepts of cellular manufacturing without moving a piece of equipment, using a term called “logical cells.”

By managing with logical cells, they get the benefits of focus without the expense of moving the cells.

A second key indicator for lack of focus is the overall space utilization of the facility. Take a top down picture of your facility and color in all the space filled with inventory, aisles and material handling equipment. If this is over 40 percent of the space in your plant, the non-value added real estate is costing you in terms of control, travel distance, and material handling, reflected in higher overhead and direct labor costs. Typical improvement opportunity for small companies is to get a 20–30 percent space reduction through the consolidation of inventory and related material handling space.

Lead-Time Reduction With the advent of just-in-time, lead time is now finally being recognized as a competitive weapon in the marketplace.

Measure lead time for each product family in hours and days instead of weeks and months. It is important to measure lead time on an ongoing basis and to demand and plan for improvements on an ongoing basis. Companies were typically comfortable running products once or twice a year. Now the process must be effective enough to run on a monthly, and better yet, on a weekly basis without a reduction in quality, nor an increase in cost. Setup improvements, mistake-proof design on the operations and the operator training are required to make this happen.

Hands-on Management Employees who are not involved will not perform if management is hidden in the back office. Management must participate actively in the plant on a daily basis, working with the people, knowing the names of the individuals

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in the organization, and caring for the “whole” of the employee. This includes providing training, good benefits package and a secure environment in which to work. This is key as the next generation of the workforce replaces the baby boomers.

Emphasize people as

Customer/Operator and Meetings

and involved workforce.

A new source of improvement and cost production opportunities is being discovered as companies organize between their customers and the production floor within their facility.

The concept is very simple. In a manufacturing cell, a group of focused operations is a way to improve quality.

That same concept makes sense when going across organizations. Having operators from your facility talk to operators in your customer’s facility where your product is being used can help identify significant operating improvements in quality, inspection and packaging.

the primary source of improvements. These improvements require a strong, solid, educated

Typical results from this type of cooperative cross-talk include 75–90 percent reductions in lead time, 5–10 percent reductions in packaging costs, and 90-100 percent improvements in quality.

Joint Product Development Historically, OEMs have provided all the design skills and purchased components based upon three criteria — price, price and price. Many OEMS still follow these same misguided rules, others OEMS follow the best practices of relying on their suppliers for the

skills they have developed over the years. These include product design skills as well as process design skills.

When possible, getting involved early in the product development process allows you to design your product to right specifications from scratch. Of course, this may require a new and deeper mix of skills than may have historically been maintained in an organization.

Companies in the spring industry will need detailed design skills in manufacturing and overall product design. More importantly, they will need design skills for tooling and machine maintenance and repair, as the reduction of lead times and increasing quality requirements will require significant improvements in reliability in the operation.

Focus on Quality Quality in the product, and in relationships with customers, also comes from dealing with best customers.

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Best customers are those that value your skills and design in process development as well as delivery and price. Those customers who continually purchase solely on price can harm your organization. It will be important to be able to pick and choose “the best customers,” which means saying “no” to some business that you historically may have taken.

This is a significant challenge in the spring industry, given the overall consolidation of the industry. People who compete and purchase solely on price will not be in business long. In the long run, it is best to stick with the best customers.

Quality Product quality has been very much like motherhood and apple pie. Today, quality is expected and holds virtually no competitive edge anymore. Unlike

motherhood and apple pie, quality is being misused and misapplied in many organizations today. Good quality practices are visible at the workstation and in the people within the organization.

Well-managed companies actively use quality metrics in the operation to make management decisions.

Typically, companies only use quality statistics at the engineer’s workstation or in the quality department.

Emphasize people as the primary source of improvements. These improvements require a strong, solid, educated and involved workforce. Successful companies are identifying ways of bringing skilled people in-house and training them throughout their careers in order to maintain this level of performance. Apprenticeship programs, internships at the high school and technical school level are being found effective to accomplish this.

Summary There is a requirement for a new focus on manufacturing competitiveness.

Improvement opportunities are not available just to large organizations through large capital investments and technology. Rather, a consistent focus on the basic blocking and tackling of manufacturing practices can make companies of all sizes more competitive. Focusing on the basics can allow you to achieve benefits that can fund an appropriate use of technology in the future. The goal is to make the right “soft investments” in people, in processes, and your customers before taking the high-risk capital investment requirements.

Lead-time, quality, and cost are the only competitive weapons in the marketplace. What are you doing in your company today to improve that process? n

The Relentless Battle for Operational Excellence: Four Systems to Significantly Improve Operating Performance

By Vince Bovino

E

very company, large or small, public or private, hi or low tech, capital or labor intensive, people-paced or machine-paced, customer focused or commodity based must be relentlessly dedicated and laser guided to improve every aspect of their business.

Unfortunately, in some organizations it is easier to do little or nothing to elevate operating performance.

These organizations simply let their success or failure flow with “marketplace” changes … clearly a strategy for failure. You cannot create a different future by desperately clinging to your current method of operating.

Challenge yourself to break the bonds of tradition.

If your company is not charging beyond your industry’s “best practices,” your competitors will leave you in their dust with a limping profit margin. Caution! Never benchmark your company’s operating performance against indust ry average.

Industry average will put you on the fast track toward mediocrity!

Every Initiative Must Support the One Objective It does not matter if you are just getting started with an improvement initiative or you have been formally

at the improvement game for many years, you must have a single-minded objective for the initiative.

Too many organizations have improvement initiatives that sound good, but they are not aligned to the core objective of that business.

These initiatives have a short shelf life. Organizations often spin up a series of standalone initiatives that are well intended, but do not support the reason for the business’s existence. Every initiative must be in harmony with the company’s core values/ philosophies (if they are

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The foundation of the high-performance organization is comprised of the following four systems or building blocks: • Measures and Metrics • Reward System • Performance Communication System • Performance Improvement Team

custo

You cannot create a different future by desperately clinging to your current method of operating.

Challenge yourself to break the bonds of tradition.

A Performance Measurement System It all starts with the correct measures and metrics. The first and most solid principle of improvement is: “what gets measured gets done.” All improvement initiatives must begin with deep and well anchored measures. The measures are the starting point for developing performance goals and without goals, optimum business success is impossible.

Measures also provide purpose, direction and the information necessary to achieve meaningful improvement.

oy e e w pl

Creating a Rock-Solid Foundation for All Improvement Initiatives

With these four systems firmly in place, you are well positioned to move forward with a variety of topic based initiatives that are “bolted on” to the four core systems. These initiatives must support a return to owners/ shareholders, and drive results as defined in your performance measurement system.

Some of the “bolt on” initiatives might include: preventive maintenance, quality improvement, scrap reduction, work flow analysis, customer satisfaction, technological innovation, employee wellness, energy reduction, equipment upgrades, capital investment, material utilization, short interval scheduling, quick change over, cycle time reduction, leadership development or inventory accuracy.

The list is endless. If you have selected the correct measures of success, nearly every “bolt on” initiative must support and drive improvement to one or more of your measures.

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well defined) and drive the primary reason for the business’s existence.

At the risk of sounding like a free market capitalist (it’s true, I am), the objective of any business is to make money. Stated more smoothly, the objective of a business is to provide a return on invested capital for the owners/shareholders. The origins of some businesses may have been to provide superior products and services to customers that were poorly served, while other businesses sought to advance technology and creativity to benefit mankind. I don’t challenge those reasons; however, unless the business makes money, the other “reasons for being” will not be realized on a sustained basis. The objective of all improvement initiatives must be viewed through the lens of the owners/shareholders, and that view reads, “Drive operating performance to new heights for the purpose of improving profitability.”

If you have not created a welldefined culture of continuous and breakthrough improvements, it is time to start now.

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The measures at the business unit level (plant, mine, refinery, mill, distribution center, etc.), are often called Key Performance Indicators (KPIs). They become the only factors upon which the incentive pay system is based and reflect the only performance information to be included in the performance communication system.

An Incentive Pay System The first law of economics is not “supply and demand.” The first law of economics is “incentives matter.”

“What gets measured gets done” is true. “What gets measured and rewarded gets done to a greater degree” is also an important take away message.

Well-designed and implemented variable pay or incentive pay systems, if they are driven by factors that employees can understand and influence that produces a “meaningful and timely” financial reward, will change employee workplace behavior quickly and on a sustained basis.

A Performance Communication System Unfortunately, companies do a marginal job of effectively communicating operating performance to their employees in a visual, timely, easy to use, repetitive and understandable format.

An uninformed workforce is destined to achieve predictable levels of marginal performance, which is clearly not a winning formula. An excellent performance communication system is an absolute necessity.

Effective communication systems present the most recent performance and performance trends, along with the incentive pay that was earned (or lost) because of the performance.

A Team Based Improvement System The Performance Improvement (PI) teams are the heartbeat of a highperformance organization and must be in constant motion to stay alive to produce business results. Your

employees are oozing with concerns, issues, solutions to problems and ideas to achieve new and heightened levels of excellence.

PI Teams are strategically positioned, trained, and charged with assaulting the inefficiency and waste that exists at all levels of most organizations. Every company is “target rich” with opportunities for improvement. PI Teams are an excellent forum for systematically pursuing those opportunities.

The Seamless Integration and Linkage of the Four Systems Most companies miss the seamless integration and linkage of the four systems to their continuous improvement activities.

Today many companies have reasonably good operating performance measures, and about 35 percent of companies have some form of incentive pay system. Very few companies do a good job at communicating performance

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Step 2 Incentive Pay

Step 1 Performance Measurement

results and even fewer companies have effective and long lived continuous improvement, Performance Improvement Teams, or any other effective system to capture and implement employees’ ideas for betterment.

Unfortunately, very few companies weld the measurement system to the incentive system to the communication system to the performance improvement team system. This is a huge missed opportunity.

The above four systems are the foundation for a high-performance organization and must be seamlessly linked and aligned to each other. Here is how to achieve the four-system linkage and alignment.

Step # 1 Define your business goals and identify the business unit’s measures of success. These are the KPIs that are defined in your performance measurement system. When correctly designed, there is perfect linkage and alignment between the business goals and the performance measurement system defined by the KPIs. For this discussion, let’s assume your business has developed six KPIs. Take home message: “Measures must support, reinforce and drive your business goals.”

Step # 2 The incentive pay system becomes perfectly linked and aligned to the performance measurement system,

by only including the same six KPIs in the incentive pay system.

Take home message: “That which is measured is also rewarded.”

Step # 3 Now for the performance communication system; the primary performance communication document is the monthly KPI report (reviewed with employees in small group meetings).

The only information in the monthly KPI report is the operating performance results of the same six KPIs and the incentive pay earned (lost) from the same six KPIs. Take home message: “That which is measured, is rewarded and is also communicated to employees.”

Step #4 Enter the performance improvement system; the primary forum for capturing, evaluating and implementing ideas for improvement, cleansing the organizations of behavioral toxins, shedding stale approaches to operating performance, solving operating problems and enhancing efficiency is the PI team. The sole focus of the PI teams is improving the business as defined by the same six KPIs. Take home message: “That which is measured, is rewarded, is communicated to employees and is also the sole focus of the PI teams.”

You now have perfect linkage and alignment between the four foundational systems for a high-performance

Step 3 Performance Communication

Step 4 Performance Improvement

organization. This model will produce heightened levels of operating excellence, meaningful levels of incentive pay for employees, a more informed workforce and improved profits. n Vince Bovino is a management consultant and founder of Bovino Consulting Group. He is a facilitator for productivity and quality improvements, a catalyst for organizational change, and a dynamic seminar leader. Bovino and his team have developed a powerful and effective high-performance work system (supported by a gainsharing incentive pay plan) that quickly produces significant and lasting operating performance improvements. He frequently speaks to corporate and professional groups on achieving world-class levels of productivity and quality. Prior to forming Bovino Consulting Group, Bovino was the vice president of human resources for Bunker Limited, employee relations manager for Standard Oil, Noranda Mining, Inc., Boise Cascade Corporation and General Cable Corporation. Bovino can be reached at 208-699-3004 or via email: vbovino@bovino-consulting.com.

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Why Do We Undervalue Competent Management?

The data presented clearly indicates that substantial profits, faster annual growth, and higher productivity are at stake when companies are able to perform at the top of the spectrum.

W

e have long hea rd t hat achieving a nd susta ining operational excellence cannot be considered a strategic advantage in the marketplace. In 1996, renowned strategist Michael Porter claimed that “operational effectiveness, although necessary to superior performance, is not [a] sufficient [strategy], because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match.”

However, according to a recent research report published in the September-October 2017 edition of Har vard Business Review (HBR), Porter may have incorrectly asserted our ability to easily replicate skilled operational management. Based on this latest research, which spans 12,000 firms and 34 countries, it is “still a massive challenge [for companies] to achieve operational excellence.” Not only that, but “large, persistent gaps in basic managerial practices are associated with la r ge, per sistent d i f fer ences i n

performance.” The data presented clearly indicates that substantial profits, faster annual growth, and higher productivity are at stake when companies are able to perform at the top of the spectrum.

The report begins by detailing the methodology behind the authors’ extensive research project. It discusses four broad measures and 18 underlying aspects of management that are used as a proxy for measuring operational excellence. We find that these measures are an extremely useful resource. In our company, we used the measures in a survey to all managers to assess their view of our progress toward operational excellence. This alone makes the article valuable.

The authors go further, however, and provide a host of reasons that cause some, but not other, companies to excel. They include false perceptions, governance structures, and organizational politics and culture.

We are particularly drawn to the discussion around false perceptions.

While it’s natural to overestimate abilities, the authors rightly caution that it can have a real business impact.

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We don’t focus on the areas that we perceive to be our core strengths.

They provide the example of 70 percent of students, 80 percent of drivers, and 90 percent of university teachers rating themselves as above average.

It is not surprising, on reflection, to think we may hold a similar bias when we rate the level of our operating performance.

So, while this research may not come as a surprise to many Springs readers, it is a compelling reminder that considerable opportunities exist when companies ensure that operational excellence is a key component of strategy. The spring industry has long focused on operational excellence, which we believe is due in significant measure to our products and location in the supply chain.

We must operate with high levels of efficiency in order to make a profit on many products.

In the coming years, we think that this focus on operational excellence will continue to be a strong part of the springmaker — sourcing relationship. For example, we think that an underexplored opportunity is the efficiency of the transaction. We recently developed a portal for our customers to check status of orders, print shipping documents and certifications, and soon, check inventory.

Regardless of how our customers want to connect with us, we want to make it the most efficient process.

We don’t think you’ll be disappointed if you pick up a copy of this

article. It is a compelling and relatable read. It is also highly encouraging to see a leading business journal highlight a research project that validates what has been occurring in our industry for a very long time. n Please note: You can order reprints of this article directly from the Harvard Business Review website at https://hbr.org/ It is reprint R1705K. Reviewed by Melissa Barton, vice president of Gibbs Metals and William J. Torres, president and CEO of Gibbs Metals.

Porter, M.E. “What is Strategy?” Harvard Business Review 74, no. 6 (November – December 1996): 61 – 78.

2 Sadun, Raffaella, Bloom, Nicholas, and Van Reenen, John. “Why Do We Undervalue Competent Management? Neither Great Leadership Nor Brilliant Strategy Matters Without Operational Excellence.” Harvard Business Review 95, no. 5 (September – October 2017): 120 – 127.

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SMI Concludes Successful Metal Engineering eXpo in Hartford

Boasting a nearly 50 percent increase in attendance, SMI held the second edition of the Metal Engineering eXpo™ at the Connecticut Convention Center in Hartford, Connecticut from Oct. 3-5, 2017. The premier event for the North American engineered spring and precision metal components industries was produced with the cooperation and support of the New England Spring and Metalstamping Association (NESMA).

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“SMI and NESMA worked closely together to produce a show that benefited members of both organizations and promoted the interests of our industry,” said Brault. “The model we created should be adopted and improved upon in future shows.”

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“Once again, SMI held an outstanding event for the spring industry with a world class exhibit floor, and our two-day symposia education sessions continued to surpass industry expectations,” said Mike Betts, SMI president.

“By working with NESMA, our regional partner, the team effort put forth by both associations demonstrated that together our industry becomes stronger.”

NESMA president Michael Brault agreed that the overall show was a great success, and provides a compelling example of what can be achieved when associations cooperate with each other.

“SMI and NESMA worked closely together to produce a show that benefited members of both organizations and promoted the interests of our industry,” said Brault. “The model we created should be adopted and improved upon in future shows.”

Brault said one of the highlights of the show was the opportunity for NESMA to host local legislators and educators on the show floor to help support the association’s workforce development efforts in Connecticut.

Bill Lathrop, president of Colonial Spring in Bristol, Connecticut, served as co-chair of the eXpo. “I was glad to see the number of decision makers in attendance, but I was also gratified to see shop floor personnel able to attend the technical sessions, view the latest equipment and software and to interact with the variety of service providers like raw material suppliers, platers, etc.,” commented Lathrop.

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“The concept of moving the trade show to various centers of spring industry activity allows member companies the opportunity to have broader participation. This concept fosters the transfer of knowledge to a larger audience through the symposia, and enhances the sense of community within our industry.�

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“The concept of moving the trade show to various centers of spring industry activity allows member companies the opportunity to have broader participation. This concept fosters the transfer of technical knowledge to a larger audience through the symposia, and enhances the sense of community within our industry,” added Lathrop.

Co-chair Daniel Pierre, III, president of JN Machinery in East Dundee, Illinois, said, “With the quality of attendees, I felt the show was a success. Decision makers were certainly there in full force.”

Just like the show in Charlotte, Pierre said moving the show around, this time to Hartford, afforded his company the opportunity see more local springmakers from within a two- to three-hour drive. “I think moving the event around the country is a positive thing for our show,” added Pierre.

Get on Board A sold-out three-hour cruise on the Connecticut River was held Wednesday, Oct. 4, aboard the “Mystique.” The networking event featured 300 attendees, and was sponsored by NESMA in partnership with SMI. “We had lots of positive feedback saying it was a great event,” said Brault.

“I would like to thank the NESMA member springmakers and stampers who stepped forward to sponsor the cruise.”

Lathrop, who is also a former NESMA president, echoed Brault’s comments. “The cruise on the Connecticut

SMI Thanks eXpo Sponsors SMI wishes to thank the sponsors who made the Metal Engineering eXpo a great success.

Visionary Sponsor: Industrial Steel and Wire Platinum Sponsors: Gibbs Interwire Group Suzuki Garphyttan Gold Sponsors: WAFIOS RK Trading Company Bronze Sponsor: Vinston

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“The cruise on the Connecticut River under warm, moonlit skies was certainly a treat, and a wonderful networking event as well.”

46 // SPRINGS SPRINGS // Winter Winter 2018 2018 46

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River under warm, moonlit skies was certainly a treat, and a wonderful networking event as well.”

The 2017 SMI Metal Engineering eXpo spanned three days, and featured a technical symposium for individuals and companies to share their knowledge and expertise on a variety of topics surrounding the design, engineering and production of springs, wireforms and stampings. The trade show portion of the event included vendors displaying a vast array of machinery to produce these items, along with wire suppliers and exhibitors representing all facets of manufacturing.

“Congratulations to the SMI team for successfully hosting the Metal Engineering eXpo in Hartford. We truly enjoyed spending quality time with our friends and industry partners, giving all of us a chance to catch up,” said Dan Foster, vice president of sales, Industrial Steel & Wire. “As the Visionary sponsor, we were blown away by the attention to detail shown by SMI and NESMA.” The 2019 SMI Metal Engineering eXpo will be held Oct. 1-3 at the David L. Lawrence Convention Center (DLCC) in downtown Pittsburgh, Pennsylvania. Located in the heart of the city between Pittsburgh’s cultural district, the historic strip district and the Allegheny River, the DLCC provides optimal access for exploring what Pittsburgh has to offer. For more information, visit the show website at www.MetalEngineeringeXpo.com. n

Technical Symposia Presentations Available Like the inaugural show in Charlotte in 2015, attendees to the 2017 eXpo in Hartford appreciated the variety and depth of material presented during the technical symposia sessions Wednesday, Oct. 4, and Thursday, Oct. 5, from 8 a.m. to 10 a.m.

Attendees could choose from a myriad of presentations from robots to shot peening to slide forming. Slides from many of the presentations are available at: http://www.metalengineeringexpo. org/2017-presentations

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More Than

Double the Number of Manufacturing Day Events Held

by SMI Members in 2017

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L

ast year, SMI joined the National Manufacturing Association’s “Dream It. Do It.” initiative to tap into resources and branding of the program so SMI could provide a “costeffective solution for its members in reaching the future workforce for the spring manufacturing sector.”

One of the key elements of the initiative is Manufacturing Day, held each year on the first Friday in October and designed to inspire the next generation of manufacturers.

The number of SMI member companies participating climbed from 12 in 2016 to 26 in 2017. Here’s the list of companies who indicated they held Manufacturing Day events.

• Ace Wire Spring and Form Co. • Ark Technologies • Automatic Spring Products • Betts Company • Clips and Clamps Industries • Colonial Spring Company • Dudek & Bock Spring Manufacturing • Duer/Carolina Coil • Ironmonger Spring • Keats Manufacturing (2) • Lee Spring • Leggett & Platt • Michigan Spring & Stamping • Myers Spring Co. • Newcomb Spring • Perfection Spring & Stamping • Peterson Spring (3) • Precision Coil Spring • R&L Spring • Scandic Springs • Spiros Industries • Winamac Coil Spring • Wolverine Coil Spring Co.

“The SMI DIDI Ambassadors are pleased with the results of the SMI Dream It. Do It. program and the record number of Manufacturing Day events held in 2017,” said Jim Parsons, senior vice president at Myers Spring Co., who serves as SMI’s Dream It. Do It. champion. “This is only the start as we seek to come alongside SMI members to help reach the next generation of workers needed to fill our factories.”

Here are reports from the some of the companies who held 2017 events.

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Ace Wire Spring Marking its second year of participation in Manufacturing Day, Ace Wire Spring hosted two separate groups of students for a presentation and tour of the company’s facility.

In the morning, the company welcomed a group of eighth grade middle school students. In the afternoon, the company hosted a group of Brashear High School students.

Ace Wire Spring also welcomed Bill Padnos, director of youth engagement for the NTMA and executive director of SWPA BotsIQ, and David Fair, president and CEO of SMC Business Councils.

Ace Wire Spring & Form Co. said in a news release, “After the tour, we invited the students back into the office to perform a hands-on experiment, make their own springs using small pipe cleaners and pencils for the shaping possibilities. The hope is that this event helped expand the minds of the students that visited Ace Wire Spring, and that they saw the many opportunities for a career in the manufacturing industry.”

Winamac Coil Spring Winamac Coil Spring, also hosted its second Manufacturing Day Event on Oct. 6, 2017. Approximately 200 eighth grade students and chaperones from Caston and Winamac Schools came to the Winamac Coil Spring campus in Kewanna, Indiana.

“We believe it’s not too early to begin talking about the diverse careers in manufacturing, because it is very troubling when you hear graduating seniors express they have no clue as to what they want to do, or even know what

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Cameras were rolling when Spiros Industries welcomed Wisconsin Governor Scott Walker to its Manufacturing Day event.

type of jobs exist,” stated Brian Shafer, WCS sales and marketing manager.

Myers Spring Myers Spring in Logansport, Indiana hosted dozens of fifth graders for its annual Manufacturing Day event, wh ic h mea n s t hat t hat roug h ly 1,200 students have toured the company since it started celebrating Manufacturing Day in 2015.

Myers Spring president Todd Miller told the Phairos-Tribune in Logansport, “It’s a workforce development issue for us,” Miller said, “and as far as the kids, it’s trying to expand on the types of opportunities we have in our area. We want them to know that there is a seat for every rear end, and there’s a million ways to learn. We’ve got to make sure what we’re telling kids is that there are options out there, and they aren’t just pigeon-holed.”

Ralph Kauffman has been with Myers Spring for 15 years. Myers Spring has participated in Manufacturing Day for the past three years, and Kauffman said he’s always impressed at how much the students listen and pay attention during the tour of the facility.

“I think it’s pretty neat to see the kids all come through and for them to see how the different springs are made,” he said. “To see their faces when they see different things, and you know they’re learning what it takes to do this stuff for a living and as a career. It then gives you pride, and it makes you feel good.”

Added Parsons, “We know that experience makes up 65 percent of a student’s decision on what career path they follow. That’s why we continue to host every fifth grader in our county on a tour of our facility on Manufacturing Day, to see what kind

of work they could be doing when they grow up.”

Spiros Industries Spiros Indust ries in West Bend, Wisconsin held its first Manufacturing Day event on October 9, 2017.

Dennis Backhaus, Spiros Industries president, declared, “We had 15 students from three schools, a dozen neighbors and one governor!”

Wisconsin Governor Scott Walker toured Spiros Industries and delivered a short speech about promoting manufacturing in the state. “He talked to our employees and guests, and even took time to pose for pictures,” said Backhaus.

For more information on Manufacturing Day and how to participate in 2018, visit www.mfgday.com. n

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.

ASQ Survey Says Shortage of Skilled Workers Tops Economy for Anticipated Challenge in 2018

F

or the first time since 2013, the shortage of skilled workers overtakes the economy as the greatest hurdle manufacturers anticipate facing in the year ahead, according to the ASQ 2018 Manufacturing Outlook Survey.

According to the survey, 41 percent of manufacturers say finding skilled workers will be the No. 1 challenge in 2018, compared to 30 percent who say the economy will be their biggest hurdle.

I n last yea r’s Ma nufactu ring Outlook Survey, 36 percent of manufacturers said the economy would be the greatest challenge, compared to 30 percent who claimed finding skilled workers would be the biggest hurdle.

“The results of this year’s Manufacturing Outlook Survey are both encouraging and cause for concern,” said ASQ Chair Eric Hayler. “While it’s great that the economy is improving, it’s troubling that manufacturers expect to struggle finding the skilled workers they need to be successful.”

To help find the skilled candidates they currently need, 39 percent of respondents say they have hired an agency to help, while 30 percent are working with local colleges on programs that teach students the skills needed in manufacturing. Fifteen percent of respondents say they enhanced their benefits package to attract qualified candidates.

And while manufacturers are taking necessary steps to hire for vacant positions, fewer manufacturers anticipate having to fill vacant positions due to retirements — 35 percent said it’s very unlikely retirements will affect their organization in 2018, compared to 33 percent who say it will.

Survey Says...

ASQ Respondents Biggest Anticipated Challenge for 2018 vs. 2017

41% 30%

2017 2018

36% Manufacturers who said finding skilled workers will be their biggest challenge

30%

2017 2018

Manufacturers who said the economy will be their biggest challenge

How Respondents Plan to find Skilled Candidates in 2018

39% Hire an agency

30% Work with local colleges

Regardless, 43 percent plan to fill the vacancies on a case-by-case basis, with 69 percent training new hires on the job. Twelve percent require additional, company-provided classroom training and 6 percent require thirdparty classroom training.

The Manufacturing Outlook Survey also questioned respondents about the economic outlook for the year ahead.

In this year’s and last year’s survey, 72 percent of respondents said they expect an increase in their company’s revenue.

However, only 69 percent of respondents this year said they realized an increase in revenue in 2017.

F u r t he r mor e, 65 p e r c ent of respondents said they expect salary

15% Enhance benefits packages

increases in 2017, up from 61 percent in the 2016 survey — while less than 1 percent expect a salary reduction — and 44 percent said they expect their company to increase staff, compared to 47 percent last year. Forty-three percent of respondents expect their organization will maintain current staffing levels, while 13 percent said they expect staffing cuts in 2018.

More than 650 manufacturing professionals responded to ASQ’s 2018 Manufacturing Outlook Survey, which was conducted online in October and November. Respondents represent a mult itude of industries, including automotive, medical device, aerospace, and oil and gas. n

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Forecast 2018 Sunny Skies, Clear Sailing

By Phillip M. Perry

B

usinesses should enjoy a robust 2018, thanks to growing employment rates, rising wages and low borrowing costs. At the same time, they should keep a watchful eye on Washington legislation, and on the continuing health of lending institutions. Good economic conditions offer the opportunity to strengthen internal operations to prepare for the inevitable correction when it arrives.

Fair weather ahead: That’s the economic forecast for 2018. Business operations should benefit from an improving employment picture, growing disposable consumer income, and an easy credit environment.

“The United States economy continues to power forward,” says Sophia Koropeckyj, managing director of industry economics at Moody’s Analytics, a research firm based in West Chester, Pennsylvania. “Furthermore, for the first time during the nation’s eight-year expansion there are no serious impediments to growth.”

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Brisk tail winds should keep the economy in full sail for the near future.

“Consumers are benefiting from a strong job market, their balance sheets are healthy, and credit is flowing freely,” says Koropeckyj. “A revival in profitability, record stock prices and rock-bottom borrowing costs are buoying businesses.” Even the global picture is brighter. “All of the major economies are expanding in unison for the first time in a decade.”

Steady Growth

©iStockphoto.com/courtneyk

For 2018, Moody’s expects gross domestic product (GDP) to grow by 2.9 percent, thanks mostly to stronger growth in residential investment and government spending. That’s a healthy increase from the 2.19 percent expected to be recorded for 2017 when numbers are finally tallied, a figure which was itself an increase from the 1.49 percent of the previous year. (GDP, the most common measure of economic growth, is the total spending on goods and services by consumers and businesses).

A strengthening labor market should put more spendable cash in consumers’ pockets, helping accelerate business activity in general. “We expect well over 2 million jobs to be created in 2017,” says Koropeckyj. “This is about the same growth experienced since the expansion began over eight years ago.”

Strong job growth resulted in an unemployment rate of 4.4 percent by the end of 2017, a figure which is expected to fall to 3.94 percent by the end of 2018.

As unemployment declines, employers have more difficulty finding sufficient workers. That bodes well for wage growth, and for a resultant increase in consumer income. “Most measures of wage rates are showing some acceleration and pay increases remain in the headlines,” says Scott Hoyt, senior director of consumer economics for Moody’s Analytics. Average hourly earnings are expected to grow by 3 percent in 2018, up from the 2.6 percent increase of 2017, which was little changed from the previous year.

Business Confidence Confidence among consumers and businesses is yet another driver of growth.

Here the news is good. “Consumer confidence remains high,” says Hoyt. “It jumped following the presidential election, and the tapering back down that many of us anticipated has not occurred.”

Business people, for their part, seem confident as well, and seem willing to invest. Moody’s expects business investment to increase by 4.5 percent in 2018, up from an anticipated 4.07 percent figure for 2017.

“Nonresidential investment has improved following the swoon caused by the collapse in oil prices,” says Koropeckyj. “Equipment outlays and intellectual property products are both growing strongly. And accelerated wage

“Consumers are benefiting from a strong job market, their balance sheets are healthy, and credit is flowing freely,” says Koropeckyj. “A revival in profitability, record stock prices and rock-bottom borrowing costs are buoying businesses.”

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growth could spur firms to spend more on equipment and technologies that reduce the need for workers.” And then there is the business-friendly environment of the nation’s capital. “A favorable business climate, particularly a relaxation in various regulations, could boost investment spending more than expected.”

Adding fuel to this fire is an upswing in corporate profits, which are expected to rise by 4.5 percent in 2018, a good increase over the 4.07 percent figure expected when 2017 numbers are finally tallied. “Low costs and sturdy revenue growth have bolstered profits,” says Koropeckyj.

While both conditions are expected to extend over the coming months, stronger profits in 2018 depend upon the delivery of lower corporate taxes.

Businesses looking for expansion capital are in a favorable position. “Banks are eager to lend,” says Walter Simson, principal of Chatham, New Jersey-based Ventor Consulting. “And the borrower has a lot of power when it comes to pricing and conditions of the loan.”

instituted, our forecast is too weak. We are also assuming there is some increase in federal infrastructure spending.”

The picture could further darken if President Trump institutes protectionist measures promised during the campaign. “The president has an agenda which is somewhat protectionist and I think we need the exact opposite,” says John Manzella, a speaker on global business and economics, and CEO of World Trade Center Buffalo Niagara, an international business development organization based in western New York. “We actually need more agreements for free trade, which is extremely beneficial to the U.S. economy.”

At least there has been no recent talk about a border adjustment tax, notes Manzella. “That would result in many lost jobs. While the president has focused on the trade deficit, we need to realize that more than half of imports represent intermediate goods used in the production of U.S. products. This makes our goods more competitive around the world. Imports also reduce prices and stretch the consumer dollar.”

Looming Risks

Housing Struggles

Favorable as the forecast is, uncertainties in Washington might spark problems. “We have built some corporate tax cuts into our forecast,” says Hoyt. “If they don’t happen, our forecast is too strong. And if personal tax cuts are

Housing activity, a key driver of economic growth and consumer spending, is bringing up the rear. “Housing starts remain disappointing,” says Koropeckyj. Moody’s expects 2017 starts to increase by 5.17 percent, to 1.24

Have We Reached Full Employment?

The employment picture is improving in the United States, to the extent that by the end of 2017 some 95.6 percent of willing workers had obtained jobs, according to figures from Moody’s Analytics, a research firm based in West Chester, Pennsylvania. Does that mean the nation has reached a condition economists refer to as “full employment?”

The question is important because wages generally start to increase across the board when the number of available workers becomes scarce. And a general rise in wages usually translates into more spendable income, a healthier economy and more profitable businesses.

Even so, a firm answer is elusive because several forces muddy the waters, according to Sophia Koropeckyj, managing director of industry economics at Moody’s Analytics.

First, baby boomers are retiring from the workforce. Because older workers tend to have a lower incidence of unemployment than younger ones, economists

respond to this change in workforce demographics by lowering the employment rate they consider “full.”

Second, there has also been a large decline in labor force participation by younger workers since the Great Recession. Many prime-age workers have dropped out as well. People not actively participating in the labor force are not considered in the unemployment rate calculation.

“But since there is a possibility of more entry of those on the sidelines as the expansion persists and since there are so many idle workers, we cannot say that we are truly at full employment now,” notes Koropeckyj.

Also, the share of unemployed workers out of work longer than half a year remains higher than it was before the recession. “As the expansion persists, more of these workers should find jobs,”

95.6% says Koropeckyj. “If the absorption of these workers to reach the prerecession share is considered full employment, then we are not at full employment now.”

Finally, economists differ on what they feel constitutes a “full-employment unemployment rate,” and have advanced figures that vary from 4.0 percent to 5.0 percent.

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million, when numbers are finally tallied. That’s lower than the expected 1.64 million, and represents a rate of increase noticeably below the 6.34 percent increase clocked in 2016.

The culprit? Neither d e m a nd (w h i c h i s robust) nor credit availability (which is strong).

Instead, a tight labor market has limited the capacity for new construction. Furthermore, it’s expected that a good portion of available workers will be siphoned off for the reconstruction of buildings damaged by Hurricanes Harvey and Irma. Put it all together and it means a substantial backlog in the construction of single-family homes and apartments.

Despite the downside risk of labor shortages, Moody’s forecasts a robust 26.11 percent increase in 2018 housing starts. “The combination of increased housing permits and reconstruction in the aftermath of Harvey and Irma will keep demand for housing starts at a hot burn,” says Koropeckyj.

While the president has focused on the trade deficit, we need to realize that more than half of imports represent intermediate goods used in the production of U.S. products. This makes our goods more competitive around the world. Imports also reduce prices and stretch the consumer dollar.

Financial Risks Finally, business owners should keep a watchful eye on the health of the banking industry. “I continue to worry about the strength of the financial system,” says Simson.

“When the value of assets such as the stock market and real estate goes up, that usually means there is too much easy money in the system.”

The nature of the nation’s increasing debt loads also worries Simson. “Student loans, credit card debt and longer-term auto loans are continually increasing,” he says. “So are derivative-backed CDs, which carry high rates of return and carry higher risk than many people realize. Finally, we are also seeing the bundling of loans that got us into trouble in 2008.”

The end result? “Maybe some lenders have too many high-risk loans on their books,” says Simson. “If they cannot collect, the whole banking system will again be at risk.”

Running Start In the early months of 2018, some key indicators may offer clues to the year’s economic trajectory. First, suggests Hoyt, keep an eye on what is happening in Washington.

“Will there be a program of fiscal stimulus? If so that will bolster the economic environment.” He also suggests staying alert to reports of wage increases, which would stimulate consumer spending.

A favorable operating environment can provide the opportunity to strengthen internal controls. “When you foresee a year of steady economic growth, it’s time to take the opportunity to look inside the walls of your organization and determine how you can improve your execution, your strategies and your financial systems,” says Simson.

“Make sure you understand your costs and are ready to react quickly to changes in the market. As for employees, go for the ‘A Players’ rather than settling for the ‘C’ ones.”

In all cases, says Simson, emphasize stronger internal operations. “Batten the hatches. Keep asking yourself, ‘How can I strengthen my organization for the long term?’” n

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Reflections on the 9th International Congress of Spring Industry in Taormina

By Frank E. Fazio, Diamond Wire Spring Company

©iStockphoto.com/labsas

M

y wife, Mary Ann, and I had the honor of representing SMI at the 9th International Congress of Spring Industry Sept. 29, 2017 in Taormina (Sicily), Italy. I felt like I was part of the Olympics, as 140 delegates from 20 countries from all over the world were in attendance.

Michel Fauconnier, president of the European Spring Federation (ESF), welcomed everyone to a reception dinner, which was a great way to meet and exchange “hellos” to other spring people.

Wolfgang Hermann, general secretary of the ESF, hosted the opening congress. He expressed appreciation for all those attending and introduced the guest speaker, Federico Fubini, who lectured on migration and its impact on European society and labor.

Next came overseas speakers from 17 countries to present the economic conditions of the spring industry in their nation. Speakers started in alphabetic order by country, so I was the last (U.S.) to speak. It seemed the common worldwide challenge was replacing older craftsmen with younger workers. The “jobs” are there, but the challenge is finding the right person to fill the position.

I began my presentation saying I was extremely honored professionally and personally to be a part of the Congress. First, I have been in the spring industry for 42 years and have enjoyed working with very fine and respectable individuals. It has been my experience that spring and wire people are hardworking and honest people. Second, my grandfather came from Palermo, Sicily, just 100 miles away. He immigrated to America in 1900 as a 20-yearold, where he started a fruit store and worked hard to send my dad to college. My dad became a metallurgist and eventually came to own Diamond Wire Spring Company. I related that the impressive thing about the spring industry and SMI members is not just about sales, costs and profits, it is the history of many companies that are still primarily family-owned.

I went over statistics of the average spring company and current economic conditions impacting the spring industry.

The afternoon session covered new developments in spring technology: • Composite springs • Specialized polymer springs

• Pre-setting value for compression springs • Optimize shot peening • Thirty quality control inspections • Test frequency of springs under corrosion The evening ended with a gala dinner under the stars of Taormina.

The conference was a huge success.

The next congress will be in 2019 in Hamburg, Germany. This is one event well worth attending. Special thanks to Lynne Carr, Mike Betts, Mike McNulty and Tom Armstrong for their help and support in preparing for our attendance at this special event. n

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Springmaker Spotlight

Pictured (l-to-r): Jim Maronde and Dennis Backhaus

Spiros Industries: Co-Owners Are Still Living the Dream

By Gary McCoy, Managing Editor

W

hen Jim Maronde and Dennis Backhaus went into business in 1994 they named their fledgling business Spiros Industries, Inc. The company name, an inspiration from Dennis’ wife, Cindy, comes from the Latin word “spiros” which means to “dream to be alive,” explained Backhaus, who holds the title of president. “Cindy said it was always a dream of mine to have my own business.”

“We went with Spiros Industries,” said Backhaus. “We didn’t want our names on the door.”

Maronde, the company’s vice president, quickly interjected with a laugh, “We didn’t think Jim and Dennis’ spring shop would sell.”

With a mailing address of West Bend, Wisconsin, the company is in rural Kohlsville, an unincorporated community in the town of Wayne in Washington County, Wisconsin. Dairy farms and rolling hills can be seen for miles around, though Interstate 41 is not far away leading south to Milwaukee and north to Green Bay. SPRINGS / Winter 2018 / 61

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“We couldn’t leave, we couldn’t fail at this with everything we had invested in it,” explained Maronde. “You’ve got to make it go. Dennis and I always talk about how fortunate we’ve been. A lot of companies fail.”

Both men credit the success of the business to perseverance.

“You have to persevere, and I don’t think that matters much whether it’s a spring business or another business,” said Maronde.

Backhaus agrees, “The reality is, there’s a lot of competition in every business, and you have to persevere. And we’ve been fortunate. We’ve got some great customers and great employees.”

Getting Started Backhaus and Maronde met while working together at another spring company. When they first stared working together, they bought an unrelated business fabricating metal tables. That proved to not be successful. Of that experience, Maronde said, “Why wouldn’t you do what you know best?”

A sales agency talked to Maronde and Backhaus about starting a world class spring company. The original

business they had bought was from a man named Dave Loomans. Backhaus and Maronde brought Loomans back as a third partner in the business when they focused on springs and wireforms.

“People talk about starting a business and having an angel investor. Well, Dave was ours,” said Maronde.

Years before Loomans died, Backhaus and Maronde bought out his one third ownership to make them both 50 percent owners of the business. “Right up to the day he died, we were all friends,” explained Backhaus.

Starting with three machines, the fledgling business had no business for months. Eventually they began making springs for appliances.

Maronde and Backhaus told the story of a new customer that was instrumental in getting them “over the top.”

Spiros was contacted by an engineer that Backhaus had previously worked with from the lock industry. The customer needed springs for 600 automobiles, but said

Good Neighbors There’s a special bond between Spiros Industries and its neighbors at the Kohlsville Fire Department. When Spiros Industries went through its recent renovation, they used the back parking lot at the fire station.

As a thank you, Spiros Industries made a generous donation of nearly $10,000 so the fire department could purchase its first Jaws of Life.

In an April 19, 2017, article by Judy Steffes in the Washington County Insider, fire chief Curt Martin said they had always thought about getting the lifesaving device because other nearby fire departments with the equipment can sometimes be more than 10 minutes away.

“You don’t often find a local business that does something like that

©iStockphoto.com/NNehring

for a volunteer fire department,” Martin said. “It’s amazing what people in the neighborhood do.”

Dennis Backhaus, president of Spiros Industries, said they try to do something every year for the firefighters.

“When we’re running out, these are the

guys who are running in,” he said.

Jim Maronde told the paper, “These are really a dedicated bunch of guys. We’ve been fortunate in business and we like to help out wherever we can.”

Maronde and Backhaus said that during its first Manufacturing Day event last October, they invited their neighbors to attend.

“We’re really good buddies with the fire department next door, so I contacted the chief and said, ‘You’re more than welcome to come through during our open house.’ I’m sure they wonder: ‘What do they do there?’”

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he would take 1,000. The order then grew to 10,000. This was all done over a weekend, but there was no assurance of further work because the customer had a contract with someone else to produce the part.

The customer called again Monday and now needed 100,000 springs. “And then we ended up getting the part,” said Maronde.

The engineer later quit and went to work for another company, and Spiros Industries became his branch spring supplier.

Both men reiterated again the word “perseverance” in how they were able to survive the company’s lean years.

“We couldn’t leave, we couldn’t fail at this with everything we had invested in it,” explained Maronde. “You’ve got to make it go. Dennis and I always talk about how fortunate we’ve been. A lot of companies fail.”

Backhaus added, “We knew we could deliver a world class product. We just needed to convince enough people to get to the point where it was a sustainable business.”

Growth From that modest start, Spiros Industries has grown a little bit year by year to a current employee head count of 50, and a little bit over $10 million in sales. The company has made several additions to its current facility. The most

recent one took place just over a year ago, adding 11,000 sq. feet to the existing 33,000 sq. foot facility.

Added manufacturing space was the goal of the expansion, giving Spiros the ability to add 25 workers in the coming years as the company grows.

Spiros touts a customer retention rate of 98 percent, working with companies like In-Sink-Erator and Briggs and Stratton.

The company’s product mix includes highly engineered torsion, compression and extension springs, along with wireforms.

Both Maronde and Backhaus cite a talented workforce for its success where employees are grouped together into cross-functional teams.

“We pay well, have great benefits and appreciate our employees,” said Backhaus. “They’re on assorted teams with a lot of ability to direct their own work. We’ve got some great talent.”

Backhaus says turnover is low. “Most people think it’s a pretty good place to work. We always have a few people that come in and it’s not a good fit for them.”

The goal says Backhaus is a workforce that is sensitive to the customer.

Maronde adds, “The customer is No. 1. I think everybody knows that we don’t pay our wages, the customer does. If you don’t satisfy him or her, then none of us gets paid.”

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Even on the company website they tout that, “Making highly-satisfied customers is just as important to our team as turning out high quality springs and wireforms.

Teamwork is our key ingredient and it’s applied to every facet of our company.”

High Retention Rates Spiros is quick to recognize work anniversaries and provide educational opportunities for its employees.

Maronde says the company recently went through an exercise with an outside consultant who specializes in hiring. “He’s got programs set up where you hire for culture,” he explained. “You’ve got to have a person that fits your culture. As a result, we’ve had some of our younger employees involved in interviewing prospective candidates to see if they fit our culture.”

Younger employees, especially millennials, have taken a bad rap as not being good employees. Maronde says with pride that this sentiment is not true at Spiros. “We’ve really been blessed with some outstanding young people.”

Like most SMI member companies, finding new workers is an ongoing challenge for Spiros.

The company recently completed its first Manufacturing Day event Oct. 9, 2017, with Wisconsin Governor Scott Walker in attendance (see related story on page 48) and has partnered with i4Leaning, a local community charter school.

According to an article in the June 1, 2017 edition of the Kewaskum Statesman, the school has formed community partnerships to provide more effective learning experiences for students beyond the classic classroom setting. The school brought in a group of third through fifth grade students (pictured above) to get a tour of Spiros and to understand how springs are made. As part of its partnership, Spiros also donated more than $10,000 to purchase robot kits for the students.

The company has also taken a proactive stance in recruiting women to work at Spiros, especially in machine setup. They currently have three women working in that area of the business.

“Dennis and I knew from working together that we wanted women to be a part of our business,” explained Maronde. “If you cut women out of the equation, 50 percent of your workforce is no longer eligible to setup machines. A lot of women have the mechanical aptitude to set a spring machine. Why not recruit them and allow them to try?”

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Younger employees, especially millennials, have taken a bad rap as not being good employees. Maronde says with pride that this sentiment is not true at Spiros. “We’ve really been blessed with some outstanding young people.”

Still Having Lunch Together How do you run a business with 50/50 ownership between two people? Backhaus and Maronde said they’ve made it work.

“We agreed when we went into business that if there was a disagreement, we would do what was best for the company,” explained Maronde. “We have a third person who sits on the board of directors, but Dennis and I really haven’t had many disagreements over the years. I guess it was just a good fit that we saw going into this, because we had previously worked together for more than 10 years.”

Backhaus added, “We agree that we are going to ship high quality parts, on time. We agree that we are going to take care of employees and our customers. We both do our work, but we’re not going to do anything of significance without the other person agreeing.”

He explained further, “If there’s a question on whether we’re buying a machine or not, if I say ‘yes,’ and Jim would say, ‘I’m not sure,’ well, it’s a ‘no’ then until we agree.”

In testimony to the harmony between the two men, they still have lunch together twice a week.

Maronde harkens back to a quote next to his senior picture in high school, “If you take life too seriously, what is it worth?”

He quipped that more than 50 years later, “I’m trying to live up to it.”

Looking Ahead Maronde has two children, and Backhaus has three, but none are interested in being involved in the business in the future. That’s fine with both men.

“We are not against family businesses,” explained Backhaus. “But the partnership involves two families which can make it more complicated.”

Both men have enjoyed being a part of the spring industry.

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“Springmaking still fascinates me,” said Maronde. “I love going to shows and seeing the new equipment. I like to design things.”

He added, “I don’t build model airplanes, I come here to work on machinery. You know, scratch that itch. I don’t know, springmaking just intrigues me.”

Backhaus added, “I love manufacturing and I love the challenges.”

Both men are of the same mind that being a job shop is high pressure.

“Customers need something, and we always do what we have to do to satisfy our customers,” said Maronde.

They recently had a customer who urgently needed a part made. One of their younger employees drove to the plant from a trade show and got things squared away.

Backhaus explained, “We got an email from our employee at about two in the morning, saying, ‘I went to the shop, and tooled it. It’s ready to go, but I must get some sleep because I have to be back here at six.’”

Regarding lessons they’ve learned during their careers, Maronde says treating your customers right is top of mind for him. “They’re depending on you, so you’ve really got do whatever you’ve got to do help satisfy their needs.”

Backhaus interjects, “It’s a people business. Spring machines are here, but you need to do what’s right for your people, whether it’s your suppliers, customers or employees.”

Still Having Fun Outside of running Spiros Industries, Maronde says he enjoys playing golf, while Backhaus’ sport of choice is tennis. Backhaus and his wife, Cindy, just started their sixth year tutoring and mentoring public high school students in Milwaukee.

“It gets me excited to work with some of the young children in the program,” said Backhaus. “To try and encourage them to get through school and into college and a career.”

Backhaus says it’s been gratifying to stay in touch with some of the kids to see how they are doing.

Neither Backhaus, who recently turned 67, or Maronde, who is about to turn 70, are ready to retire.

Backhaus related a story about former Florida State football coach Bobby Bowden. “When they asked him about retirement, he said, ‘After you retire, there’s only one big event left....and I ain’t ready for that.’”

As a transitional step, Backhaus said, “We intend to hire a general manager and work a little less, but stay involved. We’re still trying to work out the details.”

Maronde said he still enjoys going to work. “I’m happy with the people, I’ve got projects that I’m working on. It’s still fun. When it’s no longer fun, we’ll have to figure it out. But right now, it’s still fun.” n 217112 Syntech Casmi Ad 1_4 Page_26233 J&R Casmi Ad 1_4 Page 5/31/

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Book Corner ©iStockphoto.com/kertlis

.

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17 8:39 AM

Win at Losing

S

can your local bookstore (those that are still left!) or Amazon.com and you’ll find plenty of books about how to win at sports, business, life, etc.

Rare are the books that flip the coin and look at how you can win by losing.

Author Sam Weinman’s book, “Win at Losing: How Our Biggest Setbacks Can Lead to Our Greatest Gains,” is a fascinating study of how to cope with defeat. Though Weinman is an editor at Golf Digest, the book is not all about sports. Weinman says even the sports stories in the book are really about the universal emotion of disappointment, “about wanting something badly and having to pick up the pieces when things don’t go the way you want.”

The inspiration for the book came to Weinman due to watching his two boys, who are very competitive in sports, struggle with even the most benign of setbacks. The opening story of the book is a too-real story of Weinman’s oldest son losing in a tennis match and having a small meltdown in a parking lot.

“Having experienced my own share of losses, I wanted to impress upon them that it’s OK to lose, and how much it can even help,” explained Weinman.

“From there I became intrigued by how others have dealt with the dynamic and what we all can learn from them.”

Among those profiled are actress Susan Lucci, who was nominated and passed over 18 times before winning an Emmy on her 19th try; golfer Greg Norman who suffered a major collapse at the 1996 Masters; and politician Michael Dukakis who was crushed by George H.W. Bush in the 1998 presidential election.

Those who read this column on a regular basis may remember a review of “Mindset” by Bill Torres in the Fall 2016 issue of Springs. Mindset, written by Stanford University professor Carol Dweck, distinguishes between a “growth” mindset and one that is

“fixed.” Dweck is extensively quoted in Weinman’s book and talks about how losses can help people grow and not crush them.

“People in a growth mindset don’t just seek challenge, they thrive on it,” said Dweck in Weinman’s book.

In information provided by the publisher, Weinman was asked about the audience for the book.

“The book is written for people looking for inspiration. It’s for people who want to better prepare for the challenges we face, and who need reassurance that we can profit even when we don’t succeed. Graduates, men and women adrift in their careers, parents looking to instill resilience in themselves and their kids — they’re all people who would benefit from the message of this book.”

I particularly enjoyed the chapter about Sara Whalen Hess, a women’s soccer player who made it to the top as a member of the U.S. Women’s National Team that won the 1999 Women’s World Cup. Her career ended when she suffered a series of devastating injuries playing major league women’s soccer, and she nearly died during one of the surgeries to repair the damage due to a severe allergic reaction. Hess was someone who Weinman says “didn’t let negative outcomes fester and instead channeled the experience into something productive.”

He said she was a prime candidate for a “Why bother?” thinking.

“Instead, in the same way she pushed herself to run through her tears, Hess recognized it fell to her to steer herself through her lowest moments.

Given enough time, she came to embrace the notion that your worst moments and your most important moments can often be the same thing.”

As painful as it is, you will enjoy Hess’ story, now a psychologist and a mother of three, along with others who are

brutally candid and honest about the losses they faced and how it made them a better person.

As Weinman says, “I don’t know if we learn from the people who seem to have it easy, as much as we envy them.

But when someone has landed on his backside and still has to find a way to his feet, that’s a blueprint we can follow.” n Book reviewed by Gary McCoy, managing editor.

Have a favorite business book you would like to tell us about or review?

Send your suggestions to Springs managing editor Gary McCoy at gmccoy@ fairwaycommunications.com.

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Global CTE News Highlights

Parents Support Teens’ Pursuit of Entrepreneurship, Study Finds

N

ew research conducted by ORC International on behalf of Junior Achievement (JA) and Ernst & Young LLP (EY) shows that nearly nine-in-10 parents (88 percent) would be extremely or very likely to support their teen’s interest in becoming an entrepreneur as an adult, but less than one-in-three teens (30 percent) demonstrate that same level of enthusiasm for starting a business. For teens, the greatest concerns for starting a business include it being “too risky” (31 percent) and “not enough money in it” (22 percent). Only 16 percent of teens indicate they have no concerns about trying. Conversely, 53 percent of parents have no concerns about their teen starting a business as an adult. Those citing concerns focused on it being “too risky” (27 percent) and there being “not enough money in it” (9 percent).

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30% Teens that would like to start a business as an adult

31% Teens that consider starting a business too risky

22% Teens that believe there is not enough money in starting a business

“These results speak to some of the challenges facing the nation when it comes to business creation,” said Sandy Daffé, president of Junior Achievement of Chicago. “Since the Great Recession in 2008, the country has been experiencing a net decline in business startups. Today’s young people grew up in the shadow of the Financial Crisis, which may explain their risk-aversion when it comes to taking the entrepreneurial leap. This is why we need to promote the benefits of entrepreneurship early and often.”

The entrepreneurship survey, which polled about 1,000 parents of 13- to 17-year-olds and about 1,000 teens, was undertaken to coincide with Junior Achievement’s A Launch Lesson, a program that helps high school students gain first-hand knowledge of starting a business by interacting with entrepreneurs in their communities.

Teens were also asked what they would need to consider becoming an entrepreneur. About half said they would need “more information on what it takes to be successful” (51 percent), “investors” (50 percent) and “support from parents” (49 percent). About a third said they would need “a role model who is a business owner” (35 percent) and “friends with a similar interest” (32 percent).

“Entrepreneurs are the driving force behind growth and positive change, and at EY we believe it is vital to help enable our future generation of innovators,” said Randy Cain, vice chair and southwest region managing partner, Ernst & Young LLP, and JA USA board member. “Creative, hands-on programs such as JA Launch Lesson are critical to providing our youth with the tools, information and resources necessary to succeed when starting their own business.” n

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Magic Wheelchair Project SMI staff member Dina Sanchez and her family, “Team Sanchez,” helped a girl named Emma from Chicago with a magical wheelchair in time for Halloween.

Emma’s magic Moana wheelchair boat was unveiled to her at Brookfield Zoo’s “Boo at the Zoo” event, not far from where the Sanchez family lives in Brookfield, Illinois.

According to the Team Sanchez Magic Wheelchair fundraising page, https://www.classy.org/team/135670, Emma is a funny and spirited little girl who is quick to smile and loves to laugh.

“She lives with her twin brother, 2 older siblings and parents in Chicago.

Emma loves going for bike rides, participating in wheelchair races,

attending Comic Con, C2E2, going site seeing and living life without limits! Unfortunately, Emma has a rare disease called Rett Syndrome, it is an awful neurological disorder that affects most everything she does— and it primarily affects girls.

“Emma was perfectly fine at birth, and didn’t show any symptoms until almost age 2 when she started to lose her motor skills. Rett Syndrome causes Emma to spend lots of time in the hospital and in therapy, but it never dulls her fighting spirit or sassiness. Testing has shown that Emma is developmentally on track with her peers and she attends her local public elementary school where she continues to impress those around her. She is the only student in a wheelchair at her school.

“Emma cannot talk, walk or use her hands, but she can hear you. She understands you and she is smart. She uses a computer with eye gaze technology to talk, kind of like Steven Hawking.

Emma’s favorite movie is Moana and she is going to be dressing up as Moana for Halloween. She cannot wait to show off her amazing costume at school, so the other kids can see that wheelchairs and Rett Syndrome don’t mean you can’t be amazing!”

Magic Wheelchair is a nonprofit organization t hat seeks to put a smile on the face of every child in a wheelchair. To learn more about the organization, volunteer, donate or apply for a Magic Wheelchair, visit https://www.magicwheelchair.org.

Magic Wheelchair recipient Emma, as Moana, and her family enjoy “Boo at the Zoo” at Brookfield Zoo in Brookfield, Ill. on October 29, 2017.

Dina and Scott Sanchez (right) built the costume as volunteers for Magic Wheelchair.

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Inside SMI

SMI Mourns Loss of Jennifer Porter She is also survived by her father, John R. Newkirk, her brother, JB and his wife Jane, sister Kim and her husband Alan, as well as numerous nieces and nephews.

The Porter family asks that gifts be made to Dana-Farber Cancer Institute in Jennifer’s memory, to support further advancements in neuroendocrine and carcinoid tumor research and patient care: Neuroendocrine and Carcinoid Tumor Program, c/o Hillary Repucci, Dana-Farber Cancer Institute, 10 Brookline Place West, 6th Floor, Brookline, MA 02445.

©iStockphoto.com/Studio-Pro

SMI mourns the loss of Jennifer Porter November 13, 2017, after a long and brave battle with carcinoid cancer. She was surrounded by her loving family, and was cared for by the amazing nurses and doctors at Brigham and Women’s Hospital and Dana-Farber, to whom her family will forever be grateful.

Jennifer lived a wonderful life, and wished to express her deep love and gratitude to her family and friends who made it so. She is survived by her loving husband of 37 years, Hap, immediate past president of SMI, as well as her daughter, Laurent, and son, Gordon.

Donations can also be made online at: www.myjimmyfundpage. org/give/matthewkulke

2018 Annual Meeting Features Leadership Speaker The 2018 SMI Annual Meeting will be held April 28 to May 1 at the Meritage Resort and Spa in Napa, California.

The meeting will feature Dan Quiggle, a successful entrepreneur who promotes and expands leadership excellence through keynote speaking, executive training and corporate retreats. He uses personal examples and observations learned directly from Ronald Reagan. Quiggle was given the opportunity of a lifetime to work in the office of Ronald Reagan following President Reagan’s return to California in 1989.

Quiggle continued his career as an entrepreneur and successfully started five companies in various industries. As a business leader himself, Quiggle has the reallife experience to authentically communicate with today’s top business leaders. Today, he is the founder and CEO of the Floridabased America’s Choice Title, a company recognized by Inc.

Magazine as the second fastest growing title agency in America. This professional repertoire equips him with the know-how and credibility needed to support the leadership growth of any professional.

Quiggle is the author of “Lead Like Reagan: Strategies to Motivate, Communicate and Inspire.” The book is a firsthand account of Ronald Reagan’s leadership style, with personal insight and practical application.

For more information on the 2018 SMI Annual Meeting, visit www. smihq.org or phone 630-495-8588. n

New Members SMI is pleased to announce its newest members. Please join us in welcoming these new companies.

Ohio Wire Form & Spring Columbus, Ohio R-R Spring Addison, Illinois

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Committee Connection ©iStockphoto.com/Studio-Pro

SMI Board Gets Update on Search to Fill New Technology Position The SMI board of directors met in regular session just prior to the start of the Metal Engineering eXpo in Hartford, Connecticut. One of the items for discussion was the status of a newly created technology position.

The board learned that a highly q u a l i f i e d c a n d id a t e h a d b e e n identified, but had to drop out of consideration for personal reasons.

As a result, SMI has initiated a search to identify an individual with a background and expertise in metallurgy to fill the position. The SMI Technologist will provide SMI members with technical consultation

services and be responsible for interfacing with key worldwide organizations that oversee industry standards.

“Our search to fill the SMI technologist position has been driven by our members who have expressed a need for technical help with metallurgical issues such as fatigue life, corrosion problems and general issues with the metals they use to make parts for customers. Beyond that, the person should be familiar with failure analysis and spring designrelated questions,” said Mike Betts, SMI president. “This is an exciting time in the life of our organization, and the technologist will be a visible individual

playing a key role to assist SMI members with myriad technical challenges.”

The SMI Technologist is a part-time position and requires someone who is available to respond to members’ technical inquiries, oversee failure analysis requests, develop and deliver face-to-face training and webinars for members, and provide support to various SMI committees. Some travel will be involved, as needed.

For more information about the SMI Technologist position, contact Lynne Carr, SMI Executive Director at 630-495-8588 or email: lynne@ smihq.org. n

WIRED FOR SUCCESS Unsurpassed Quality Since 1959

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Plan now to attend SpringWorld® 2018!

Join thousands of your colleagues in Rosemont. ©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey

SpringWorld provides a unique opportunity to network with other spring manufacturers and wire formers: • The premiere spring show since 1960.

• A global showcase for suppliers to the spring and wire form industry featuring attendees from 18 countries.

• One-on-one discussions with others who share your concerns offering new insights for your business.

• See the newest technology available to improve your productivity, quality and service.

• Attend free educational seminars offered by exhibitors and industry experts.

We’ll see you at

SpringWorld® 2018 October 3-5 Donald E. Stephens Convention Center Rosemont, IL

presented by www.casmi-springworld.org

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New Products ©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey

FENN Launches Torin Dual Point Spring Coiler at SMI Show FENN has launched its latest made-inthe-U.S. product offering, the Revolution or “R” series of dual point spring coilers.

The company displayed its first machine in the new series, a model R-12, in October 2017 at the SMI Metal Engineering eXpo in Hartford, Connecticut.

Since its acquisition of BHS-Torin in 2003, FENN has been building, supporting and improving upon the Torin brand of spring coilers. The Torin product line, traditionally focused on single point springmaking, is known for its speed and versatility. The new Torin Revolution series line of dual point spring coilers pairs the dual point tooling technique with Torin’s robust mechanics and reliable, accurate controls.

According to FENN, saving time and promoting efficiency was key in developing the Revolution series. Users save on setup time with three programmable axes for diameter, allowing for a quick changeover from left to right hand spring helix. There is also a time savings with moveable wire lines so wire line tooling does not need to be changed with wire size adjustments.

Other features include programmable horizontal and vertical pitch, programmable servo elliptical cutter motion, complete system diagnostics available through the user interface, and programming available in multiple languages. Other well-known Torin features, like the Spring Shortcut spring pro-

HSI Ovens Offer Step Indexing Oven Belt

gram generator and the Spring Portal used for remote diagnostics and repair, both help promote uptime as well.

FENN is a global supplier of state-ofthe-art metal forming machinery, custom engineered and precisely manufactured for each client’s application. The company,

based in East Berlin, Connecticut, offers a variety of metal forming equipment including: spring coilers, wire flattening and shaping lines, rolling mills, turks heads and drawbenches. For more information, visit www.fenn-torin.com or phone 860-259-6600.

HSI Ovens now offers optional “STEP”

signal exchange. Control and operation process can be configured based on requirements. STEP moving distance and conveyor speed are variable for a wide range of applications.

For additional information, contact Forming Systems, Inc. at info@formingsystemsinc.com or call 269-679-3557.

moving conveyor belts to replace continuously moving belts when needed. STEP movement can be used with various in-line processes which require coordination with other loading or unloading systems, providing the ability to stop and start for a short time. Communications with external systems is possible via

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New Products

750ºF Three-Zone Conveyor Oven from Grieve Grieve’s No. 865 conveyor oven is a 750°F (399°C), three-zone conveyor oven, currently used for curing coatings at the customer’s test facility. Workspace dimensions of this oven measure 30” W x 18’ D x 15” H. 90KW (30 KW per zone) are installed in Incoloy sheathed tubular heating elements, while three 1500 CFM, 1-1/2 HP recirculating blowers provide vertical downward airflow to the workload.

This Grieve conveyor oven has a 4' long open belt loading zone and 4' long open unloading zone.

Features include three 6' long insulated heat zones with independent recirculated airflow and temperature control, 6" insulated walls and aluminized steel exterior. Type 304 has a 2B finish stainless steel interior with continuously back welded seams. Additional features include 24" wide, 1" x 1" 304 stainless

steel flat wire conveyor belt with ½ HP motor drive, variable from 0.1 to 2 feet per minute. The oven is sectioned into five pieces for shipping. The oven has safety equipment for handling flammable solvents, including explosion venting door hardware.

Admiral Steel Introduces New Blanking Line Admiral Steel has introduced its new Minster-Nova precision blanking line.

This line expands Admiral’s capabilities by guaranteeing very tight length tolerances and improved flatness when blanking coil to length. Capacities of .020"–.187" thick and 26" max width allow them to offer just about any cold rolled specialty steel product they stock as a precision cut blank. Length tolerances as tight as .003" provide consistent product quality. This new line can help trim your supply chain responsibilities. Admiral Steel stands ready and able to deliver specialty spring, alloy, and strip quality steels as coil, sheets and now precision cut blanks.

For more information, contact Brett Zischke at 800-323-7055, or visit admiralsteel.com.

Controls on the No. 865 include digital indicating temperature controllers and a 3-pen circular chart recorder.

For more information, please contact The Grieve Corporation at 847-546-8225, visit www.grievecorp.com or email Frank Calabrese at sales@grievecorp.com.

BradyConnect Inspection Management Software Launched Brady, a global leader in industrial and safety printing systems and solutions, has launched BradyConnect Inspection Management software, a fully integrated safety, identification and business productivity solution.

This cloud-based software allows facility management to combine inspection and asset management capabilities with label creation and printing solutions.

“We know that having a safe and compliant workplace is important, and having an effective facility management system makes that easier to achieve. The BradyConnect software provides this management system by combining asset and inspection workflows into one flexible and easy-to-use program,” said Dave Neuman, global product manager for software at Brady. “This software allows users to maximize workplace efficiency and streamline processes, so they can focus on the safety of employees in their facility.”

The BradyConnect Inspection Management system features task-specific applications that are optimized to get work done quickly. Its intuitive interface and dashboard help users effortlessly identify and track assets, schedule and perform inspections on dozens of equipment types, then report inspection data. In addition, BradyConnect Inspection Manager connects with Brady Workstation software for easy label creation, and the BradyConnect Inspector App for on-the-go tracking. All of these features are backed by more than 100 years of manufacturing and safety expertise from Brady.

Learn more at connect.bradyid.com.

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New Products

U.S. Auto Parts Manufacturer Orders Lucifer Fiber Lined Box Furnace Lucifer Furnaces, Inc. has received an order for an electric ceramic fiber lined box furnace from a leading U.S. stamping manufacturer of automotive products. Model LI 7-M18, with a chamber size of 12" W x 18" L x 18"H, quickly heats to a uniform 2200°F. A hotface of 2" ceramic fiber insulation with 3" coldface mineral wool block insulation around the entire chamber maximizes heating efficiency with low power input. Ceramic fiber insulation, with low heat storage and low thermal conductivity combined with high thermal shock resistance, allows faster heat up/cool down cycles, reducing wait times between

loads resulting in increased production. Heavy gauge coil wound Kanthal A1 iron-chromium-aluminum wire heating elements are supported on ceramic rods effecting rapid heat up. Elements, mounted on both side walls, can be easily replaced individually, savings costs. A 1" thick hearth plate protects the floor insulation and supports up to 40 lbs. per square foot of hearth area. Temperature is monitored by a rear mounted Type K thermocouple and regulated by

a Honeywell DC2500 microprocessor based digital time proportioning temperature controller. An insulated horizontal swing door with a tight seal comes standard with safety switch.

Ceramic fiber lined furnaces are general purpose box furnaces for batch heat treating in air atmosphere. n

Advertiser's Index A & D Trading (440) 563-5227. . . . . . . . . . . . . . 70 Acquisition Asset Mgmt (312) 613-5259. . . . . . . . . . . . . . 23 Admiral Steel (800) 323-7055. . . . . . . . . . . . . . . 9 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . 13 CASMI (630) 369-3466. . . . . . . . . . . . . . 76 Central Wire (800) 435-8317. . . . . . . . . . . . . . 39 Diamond Wire Spring Co. (800) 424-0500. . . . . . . . . . . . . . . 9 Dispense Works (815) 363-3524. . . . . . . . . . . . . . 33 Elgiloy Specialty Metals (847) 695-1900. . . . . . . . . . . . . . 17 Fenn/Torin (860) 594-4300. . . . . . . . . . . . . . 52 Forming Systems Inc. (877) 594-4300. . . inside front cover, back cover Gibbs Wire & Steel Co. Inc. (800) 800-4422. . . inside back cover Gibraltar Corporation (847) 769-2099. . . . . . . . . . . . . . 68

Industrial Steel & Wire (800) 767-0408. . . . . . . . . . . . . . . 5 Interwire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161. . . . . . . . . . . . . . 10 Jowitt & Rodgers (704) 525-8030. . . . . . . . . . . . . . 66 Julang- China Intl. Spring Show 0086-20-38620792. . . . . . . . . . . 11 Kiswire (201) 461-8895 . . . . . . . . . . . . . 60 Larson Systems (763)780-2131. . . . . . . . . . . . . . 28 Maguire Machinery (609) 266-0200. . . . . . . . . . . . . . 67 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . 65 Mount Joy Wire (717)653-1461. . . . . . . . . . . . . . . 8 NIMSCO (563) 391-0400. . . . . . . . . . . . . . 22 North American Spring Tool (860) 583-1693. . . . . . . . . . . . . . 57 Proto Manufacturing (800) 965-8378. . . . . . . . . . . . . . 22

Radcliff Wire (860) 583-1305. . . . . . . . . . . . . . 75 RK Trading (847) 640-9371. . . . . . . . . . . . . . . 3 Simplex Rapid (563) 391-0400. . . . . . . . . . . . . . 40 Spring Manufacturers Institute (630) 495-8588. . . . . . . . . . . . . . 58 Suzuki Garphyttan (574) 232-8800. . . . . . . . . . . . . . 18 Tool King (847) 537-2881. . . . . . . . . . . . . . 71 Ulbrich Stainless Steels (203) 239-4481. . . . . . . . . . . . . . 66 United Wire (800) 840-9481. . . . . . . . . . . . . . 36 Vinston (847) 972-1098 . . . . . . . . . . . . . 16 Vulcan Spring & Manufacturing Co. (215) 721-1721. . . . . . . . . . . . . . 65 WAFIOS (203) 481-5555. . . . . . . . . . . . . . . 6 Wire DĂźsseldorf (312) 781-5180. . . . . . . . . . . . . . 20 Zapp Precision Strip (203) 386-0038. . . . . . . . . . . . . . 72

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Snapshot ©iStockphoto.com/Tryfonov Ievgenii, nicholas belton

Michael Brault

Ultimate Wireforms, Inc. Name: Michael Brault Company name and city: Ultimate Wireforms Inc., Bristol, Connecticut.

Brief history of your company: Ultimate started in 1988 in a garage, making nickel titanium orthodontic archwires, and quickly grew into a small, 5,000sq. ft. building. When I joined the company in 1995, we were in the midst of renovating a 20,000-sq. ft. facility to accommodate future growth. Currently Ultimate is building a brand-new 31,000-sq. ft. facility for our next phase of growth. Today, Ultimate is one of the world’s largest manufacturers of orthodontic wire products.

Job title: Vice President of U.S. Operations.

Spring industry affiliations: NESMA (president since Jan. 2015), Main Street Community Foundation (vice chair), Bristol Technical Advisory Council (chair), Smaller Manufacturers Association of CT, Inc. (member), CASM — CT Assoc. of Small Manufacturers (member — legislative committee).

Birthplace: Bristol, Connecticut.

NESMA has given me the opportunity to witness this firsthand in too many ways to count. I believe it would be difficult to find the quality and character of this group in other industries.

Favorite food: Roasted chicken with gravy or lamb osso bucco.

Favorite books/authors: Don Miguel Ruiz, “The Four Agreements,” Stephen Covey, “The Seven Habits of Highly Effective People,” anything written by Thomas Sowell, or Jordan Peterson.

Hobbies: Cooking, collector cars and restoration, motorcycles, woodworking, metalworking, target shooting and archery.

The most difficult business decision I ever had to make was: Leaving a career in the nuclear power industry to join Ultimate.

Favorite places: My house, Prague, Vienna, Old Quebec City, Nantucket, Acadia, Green Mountains of Vermont, Finger Lakes region of New York.

I wonder what would have happened if: I hadn’t made the most difficult business decision I ever made. Moving back to Connecticut led to me marry my beautiful wife and have a great life with her and at Ultimate.

Best times of my life: Every single day — I’m serious.

A really great evening to me is: A quiet evening on the beach with my wife at our cottage in Madison, Connecticut.

Current home: Burlington, Connecticut.

The one thing I can’t stand is: Passiveaggressive behavior.

Family: My bride is Susan Brault (best friends since high school). We have no children.

My most outstanding qualities are: A good listener, calm, rational and act on fact.

What I like most about being a springmaker: Two things come to mind.

First, there is always a new challenge, a new design, a new technique — it never stops — always something new and interesting to learn. Second, the people in NESMA have an amazing camaraderie and willingness to help each other. My role as president of

People who knew me in school thought I was: Not destined for greatness; they were right.

I knew I was an “adult” when: I chose a high-performance sedan over a highperformance coupe as my daily driver.

If I weren’t working at Ultimate, I would like to: I can’t really imagine that.

Role models: My father gave me the most valuable piece of advice: surround yourself with quality people.

That one pearl of wisdom has helped me more than anything. I am literally surrounded by role models. You can learn something from everyone.

I would like to be remembered in the spring industry for: I have one year left in my term as president of NESMA. My hope is that I leave the organization healthier, more robust, more dynamic and providing better service to its members than when I joined the board.

But people will probably remember me for: ”Who was that guy that used to be on the board?”

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The InTernaTIonal MagazIne of SprIng ManufacTure

Experts Provide Operational Excellence Roadmap 26

Winter 2018

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a publication of the Spring Manufacturers Institute / Vol. 57, no. 1

Flashback: Focus on Basics 31

The Road to Operational Excellence Technology Changes on the Road to Operational Excellence 30 The Relentless Battle for Operational Excellence 34

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