2/08
Magazine for Sheet Metal Processing in North America
The heat is on SBI heats things up with oil alternatives
Playtime Kettler’s road to new capabilities
Mixing it up Combination of corporate and entrepreneurial thinking equals success for PCI
Keeping it clean Special
Two heads are better than one: Combination processing
Using green technology, C-Tech and Karcher keep world-famous landmarks sparkling clean
2/08 CONTENTS
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14
24
32
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36
Sample part made from 3/16 inch stainless steel.
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TOPICS
PROFILE
14 Traditional meets the exotic LoDolce Machine Company supports the military industry in the air and on the ground. DISCUSSION
17 TRUMPF Finance An overview of the various financing options now available to TRUMPF customers. FABRICATING
24 A radiant glow With creative thinking and a focus on efficient production, SBI heating products are keeping the home fires burning.
FEATURE
10 Highly clean PORTRAIT
Kärcher and C-Tech clean up some of the world’s most TUBE PROCESSING
28 The versatility of tubing The future belongs to pipes and tubing. Klaus Wedekind, operations manager at KETTLER Tube Works, is convinced of that. LASER CUTTING
32 A blending of two worlds Large corporate experience meets the entrepreneurial spirit of a small business at Precision Cut Industries. ANNIVERSARY
38 TRUMPF Express turns 25 1983-2008: A look at a quarter century of the TRUMPF Express.
famous landmarks with their pressure washing products and a green cleaning process specifically developed to preserve these precious monuments.
TO THE POINT 05 The Symbolism of “LITE“
STANDARDS 06 23 31 36 39 39
PANORAMA INSIDE THE PRODUCT ONE QUESTION PERSONALITIES STORIES IN SHEET METAL CREDITS
Special CombinationTechnology The Best of Both Worlds
From page 19
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T I L LITE Laser Innovation & Technical Excellence
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T
TO THE POINT
The Symbolism of “LITE“ Recently, TRUMPF Inc. celebrated the grand opening of the “LITE Building,” the newest addition to its Farmington, Connecticut headquarters. The building serves as the new home for all TRUMPF laser activities, including manufacturing and R&D for CO2 and Nd:YAG lasers, as well as sales and applications for TRUMPF’s TruMark laser marking systems. The name LITE not only describes a significant characteristic of the products developed and produced inside the facility, it is also an acronym that represents some of the core values of TRUMPF’s overall business strategy. “LITE” stands for Laser Innovation and Technical Excellence. The word “laser” was an obvious choice to be the fi rst word in the name of the new facility, but it is the subsequent words in the building’s name that truly represent TRUMPF’s company culture and strategy. Innovation was incorporated into the name of the new building to accentuate the fact that it has been and will continue to be a primary driver of TRUMPF’s success. Modern architecture, in combination with the newest technology, process infrastructure and state of the art manufacturing and development methods, provides the ideal platform for innovative products. This flexible concept, implemented within the design of the LITE Building, will allow us to respond to customer needs almost immediately. Successful innovations require a high level of technical aptitude or technical excellence, hence the “T” and “E” in LITE. Structured methods of development with appropriate corresponding tests and process defi nitions, as well as carefully planned product releases are required to ensure the defined product capabilities. The transition from prototype to serial production requires a high level of processing quality in a lean manufacturing environment to achieve the desired quality and cost targets. Technical excellence, therefore, naturally describes the ability to achieve high-level results, which are heavily influenced by productivity, flexibility, equipment reliability, simplicity of operation, and process predictability. The LITE Building most certainly contributes to TRUMPF’s dedication to excellence as well as its growth strategy. It will enable us to establish additional competencies for new laser products that enhance our knowledge and ultimately strengthen our ability to support your future needs. The LITE Building symbolizes our commitment to laser technology and its future, as well as to the North American market and our valued customers and employees. With this investment, TRUMPF’s position as an independent player in a very competitive environment has significantly increased. Only the best environment, technology and equipment to design and build our outstanding products are suitable to enable TRUMPF to meet your current and future needs.
Rolf Biekert, President and CEO
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PANORAMA
How It‘s Made TRUMPF to be featured on popular TV program People are curious about how the products they see and use every day are manufactured. The television series How It’s Made, which airs on The Discovery Channel, satisfies this curiosity with short segments that capture the step by step manufacturing processes in an easy to watch format. Now TRUMPF lasers and laser cutting machines will be featured on the popular show. The manufacturing steps of both the TruCoax 3200 and the TruLaser 2030 were videotaped and will provide an inside look at how the machines that are the starting point for so many other products are themselves produced. The production, clean room and assembly areas all hosted the video production crew, which included series creator Gabriel Hoss. Filming took place in early May and the two segments, which will run consecutively, are expected to air this fall. > Additional information: Mike Gordon; Phone: 860-255-6114, Email: mike.gordon@us.trumpf.com
Film crew shoots production of the TruLaser 2030.
ebm-papst honored at AHR Expo Products win innovation awards A TRUMPF Inc. neighbor and customer, ebm-papst of Farmington, Connecticut, was recently honored with an Innovation Award in the Ventilation Category at the 2008 AHR Expo held in New York City. The 5-Blade EC Axial Fan with Winglets was recognized for its advances in aerodynamic efficiency and sound reduction. Additionally, the Energy Saving Axial Fan Series was awarded Honorable Mention in the Refrigeration Category. The honors are sponsored by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), the Air-Conditioning and Refrigeration Institute (ARI); and the International Exposition Company (IEC), producers and organizers of AHR Expo. ebm-papst has been an industry leader in air movement solutions for the past 20 years. Their product lines include the design and manufacture of higher-level air moving assemblies, including fan trays, blower boxes, and electrical equipment chassis. > Additional information: www.ebmpapst.com
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ebm-papst’s award winning 5-Blade EC Axial Fan
PANORAMA
WARN wins gold Recognized by Ford as a top supplier extremely honored to receive the highest quality Ford Motor Company recently awarded 47 global award this year. suppliers with World Excellence Awards. Producing products and Gold and Silver awards were given accessories for off-road, for consistent demonstration industrial and military of superior quality, delivery use that enhance the and cost performance, performance of fourand the Recognition of wheel-drive vehicles Achievement Award was and ATVs, WARN is a given to those suppliers company dedicated to who improve customer exceeding customers’ satisfaction by leading expectations every key initiatives. day. Their products A Tier 1 supplier of are chosen for their wheel and disconnects durability, reliability and to Ford, WARN was one of dependability, much like the only 15 Gold-level winners. A TRUMPF equipment that is used recipient of the Recognition of in their manufacturing process. Achievement Award in 2005, they were WARN produces wheel and disconnects for Ford vehicles. > Additional information: www.warn.com
Just heating up Nordic Air celebrates 20th anniversary and continues to expand Where others may shy away from excessive temperatures, corrosive materials or a dirty environment, Nordic Air Inc. has proven they can take the heat. Founded in 1988, the company quickly outgrew the 3,000 square foot structure they rented in Jefferson, Ohio. Over the last 20 years they have grown while designing, developing and manufacturing heating, air conditioning and fi ltration equipment for industrial and military use with the help of TRUMPF fabricating technology. With President and Owner Ron Clutter being awarded Ohio Small Business Person of the Year for 2008 and the celebration of their 20th Anniversary, Nordic Air shows no signs of slowing down. They are preparing to open a 75,000 square foot expansion to their 185,000 square foot facility in Geneva, Ohio and with this expansion they demonstrate that while their expertise is in producing equipment for harsh environments, from a business perspective this special purpose niche has been anything but “harsh” for Nordic Air.
Ron Clutter, president and owner, Nordic Air Inc.
> Additional information: www.nordicair.com
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PANORAMA
Punching a new path New punch tooling drives production capabilities further TRUMPF has released two new punching tools for the TruPunch and TruMatic product lines. The latest engraving tool expands capabilities for complex or unique characters and contours. The needle tip displaces material as it makes contact to engrave numbers, logos, symbols, and special characters without puncturing the material. The tool is ideal for applications in mild steel, aluminum, and stainless steel with material thickness of 0.039 to 0.315 inches. TRUMPF has also introduced a 4 inch louver tool which forms a 4.00 x 0.500 x 0.250 inch louver with a single hit. With its introduction, TRUMPF enters a new size range for tooling options. This range, known as 2+, has application capabilities of 0.060 inch thickness in stainless steel and 0.08 inch thickness in CRS and aluminum. > Additional information: Carl Peterhansel; Phone: 860-255-6314, Email: carl.peterhansel@us.trumpf.com
TRUMPF’s new 4 inch louver and engraving tools.
Fast growing fabricator Advanced Laser Machining named to Inc.’s top 5000 Advanced Laser Machining, specializing in sheet-metal fabrication for the defense, aerospace, and commercial-transportation industries, has been named one of the top 5000 fastest growing private companies in the United States based on their growth percentage in company net sales over a five-year period. The company was started after owners John Walton and Rod Tegels won the “Create Your Own Business Plan” contest sponsored by the Eau Claire Economic Development Corporation in 1996 and has shown steady growth from the start. By staying on the cutting edge of new technology Advanced Laser Machining continues to attract business for major projects. With a can do attitude and a strong desire to provide industry-leading services and products, many of which are produced using TRUMPF technology, Advanced Laser Machining has secured their position on the Inc. 5000 list and will undoubtedly be able to remain at the leading edge of the machining industry. > Additional information: www.laser27.com
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PANORAMA
Follow the LITE New facility dedicated to the development and production of lasers On April 30, 2008 a crowd of more than 400 people, including State of Connecticut Governor M. Jodi Rell, Lieutenant Governor Michael Fedele, Deputy Consul General of Germany Bernd Rinnert, and Charles Skuba of the U.S. Department of Commerce, attended the grand opening ceremonies for TRUMPF’s new Laser Innovation & Technical Excellence (LITE) Building. The 86,000 square foot facility is dedicated to the development and production of industrial lasers and is one of the largest CO2 and Nd:YAG laser manufacturing facilities in North America. The building also houses a demonstration and sales area for TRUMPF’s TruMark laser marking products and the company’s Information Technology department and server room. Peter Leibinger addressed the guests, stating that the new facility is a symbol of TRUMPF’s commitment to the laser industry and to the North American market. Mr. Leibinger, Governor Rell and Rolf Biekert participated in a ceremonial ribbon cutting to mark the official opening of the building. Guests then attended a reception and were treated to a spectacular laser light and fireworks show over the TRUMPF pond which culminated the night’s festivities. TRUMPF‘s Laser Innovation & Technical Excellence (LITE) Building
> Additional information: Steffen Wilhelm; Phone: 255-6626, Email: Steffen.Wilhelm@us.trumpf.com
Catching the bus New Flyer provides transportation alternatives after bridge collapse New Flyer Industries Inc. came to the rescue after the I-35W Bridge collapsed by assisting Metro Transit in Minneapolis with ridership issues. They delivered 15 new 60-foot diesel buses in only six months, half the time the production and delivery would normally take. Thousands of people were in need of an altered commute following the bridge’s collapse into the Mississippi river, and New Flyer’s assistance was essential to Metro’s solutions for re-routing commuters. With two production facilities equipped with TRUMPF laser cutting technology, New
Flyer completed the buses on an accelerated schedule, allowing Metro to add services and adjust schedules in response to growing demands. A leading manufacturer of heavyduty transit vehicles in Canada and the United States, New Flyer was happy to be a part of Metro’s solutions and proud to play an active role in helping the community in time of need.
New Flyer bus assists Minneapolis commuters.
> Additional information: www.newflyer.com
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George Washington is treated to a much needed facial courtesy of C-Tech and Karcher. 10 Express 2/08
INTERVIEW FEATURE
Highly Clean Kärcher and C-Tech turn up the pressure to make the world a cleaner place.
George Washington was is to protect the paint. So they (the cleaning looking a little grimy. team) had to be very careful.” Kärcher is planning other cleaning projects Thomas Jefferson, dingy. Even Teddy Roosevelt’s spectacles this year at the Neresheim Monastery in were smudged. (Maybe that’s Germany, Matsudagawa Dam in Japan, and why he was always squinting.) Vigeland Park in Oslo, Norway. There will be No problem. A nice, long bath had cleaning tests in Olympia, Greece, too. them looking like new – all thanks to a thorough cleaning in 2005 of All kinds of clean machines these famous presidential faces carved Through its C-Tech subsidiary, Kärcher offers into South Dakota’s Mount Rushmore. America’s leading brands of industrial pressure It was another in a long line of washers: Hotsy, Landa and Kärcher in the rental/ famous landmark cleanings donated by janitorial segment; Kärcher-Shark; Kärcher Cuda the world’s largest maker of high-pressure automatic parts washers; and an aftermarket washing equipment, Kärcher AG. Since washer accessories retailer, Spraymart. Hotsy the early 1980’s, these ambitious projects and Landa also offer automatic parts washers include such famous landmarks as Christ the in their product lines. As washer waste water Redeemer in Rio de Janeiro, Brazil, the Colossi processing becomes critical, C-Tech leads the of Memnon in Egypt, the Statue of Liberty, and industry in water processing equipment from many others worldwide. its Water Maze brand. The most recent is Seattle’s world famous “Hotsy is number one in industrial pressure Space Needle. Originally designed and built washers and Landa is close behind,” said for the 1962 Seattle World’s Fair, “Century Crismon. Residential use drives overall growth. 21,” the 605-foot Space Needle receives 1.5 “The pressure washer market continues to million visitors per year and was in dire need of expand thanks to big box stores,” he said. “As cleaning. Earlier this year, Kärcher and C-Tech, more home owners get accustomed to it, they their U.S. subsidiary, were delighted to help. move up to the industrial pressure washer lines The ecologically friendly cleaning method so it raises the exposure of the category.” C-Tech Industries, located in Camas, Kärcher developed for Mount Rushmore was used at the Space Needle. The process is Washington, was founded in 1999 when the 100% green and uses very hot water through dominant brands in the North American high-pressure washers with no need for high-pressure cleaning equipment industry harsh chemicals. were brought together by then-owner Harbour Group. In 2004, C-Tech was purchased by What’s the best way to clean a Alfred Kärcher GmbH & Co. KG of Winnenden, Germany. C-Tech is North America’s largest towering landmark? Hang around. A team of three rappelling professionals manufacturer of high-pressure cleaning from Skala, Inc, working for Kärcher, equipment with more than 600 employees in descended from the top of the Space Needle, five manufacturing and distribution facilities cleaning only with very hot high-pressure located in Camas, Springdale, Arkansas, water. A safety supervisor manned the ropes Monterrey, Mexico, and Reggio, Italy. and rappelling equipment from above. Kärcher’s Thorsten Möwes supervised the project and A 73-year tradition of innovation rappelled down behind the team to inspect the C-Tech’s parent company was founded in 1935 by Alfred Kärcher and was originally a manufacturer cleaned surfaces. Refi ned by Kärcher at Mount Rushmore, of salt heating equipment for industrial use. rope-access cleaning avoids erecting costly To design that product, Alfred developed a scaffolding. Cleaning took place from 11 p.m. submersible heating element that portended the to 6 a.m. daily, keeping the Space Needle open company’s future. By 1950 he had designed and patented his first hot-water high-pressure cleaner, to the public. “Each project is a gift (from Kärcher),” said the KW 350. The product was a hit and by 1959, Crismon Lewis, marketing communications Kärcher started focusing on high pressure water director of Karcher’s U.S. subsidiary, C-Tech cleaning systems. Today, the famous yellow-cased Industries. “This project (the Space Needle) was Kärcher pressure washers are the leader in their two years in the making. One of the priorities field and sold by major retailers everywhere. Express 2/08
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FEATURE
Over the years, their product portfolio grew and diversified and now includes high-pressure washers, blasting systems, vacuum and steam cleaners, sweepers and scrubber-dryers cleaning agents, vehicle washes, plus drinking water and waste water treatment plants. Kärcher has more than 6,500 employees worldwide and sales of 1.38 billion Euros per year.
With 766 products and short lead times, you’ve got to be flexible C-Tech manufactures 766 different products annually and produces more than 20,000 12 Express 2/08
commercial and more than 180,000 residential units per year. “We are very flexible in our production,” said Frank Grundmann, C-Tech’s global sourcing director. The company has a large number of SKUs and very short lead times. An impressive eighty to ninety percent of the facility’s output is built to order, which they deliver to the customer within three to five days. This quick delivery time is a requirement set by the sales organization. Meanwhile, hundreds of parts that were outsourced are being brought in house. “Mainly the parts washer line, we wanted to bring that
in house,” said Frank. Even with all the costs of labor in added shifts, extra equipment and space, C-Tech “still realizes a significant savings by bringing (the work) in-house,” said Frank. To satisfy their never-ending need for speed and waste reduction, C-Tech recently added three new pieces of equipment from TRUMPF: TruPunch 2020, TruBend 3120 and TruLaser 2030. C-Tech cuts and punches steel during two shifts. “We buy four million pounds of steel a year,” said Frank. “95 percent of which is being processed through the TruPunch and the
FEATURE
Highly trained professionals clean Seattle’s Space Needle during night hours so as not to interfere with tourists.
”The ecologically friendly cleaning method Kärcher developed for Mount Rushmore was used at the Space Needle.“ TruLaser.” The new equipment has resulted in a drastic reduction in waste - from 37% to as little as 8%. One example of waste and time saving is that, with the TruLaser 2030, there’s no need to strip the protective covering off sheets before laser cutting, enabling operators to simply burn through the fi lm. Eliminating the need to strip off the protection prior to cutting makes the process faster and keeps the parts protected from damage as they move through the production cycle. Additionally, the time required to change from one material to another with C-Tech’s
previous equipment was a lengthy 45 minutes. With the introduction of the TRUMPF equipment their material changeover time has dropped dramatically, resulting in less downtime and increased productivity. With a continual focus on efficiency and flexibility in production, C-Tech has solidified its position as a leader in powered cleaning equipment. So whether their equipment is used to restore the luster of national landmarks or for everyday tasks of the weekend warrior, it is certain they will be “cleaning up” for years to come.
Sparkling clean Who:
C-Tech Industries, Camas, Washington. Founded 1999, more than 600 employees. www.c-techindustries.com What: Manufacturer of pressure washers and other related high-pressure cleaning equipment How: TruPunch 2020, TruBend 3120, TruLaser 2030
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Mike LoDolce, president LoDolce Machine Company, Inc.
Traditional meets the exotic With high speed laser cutting and combination processing of exotic materials, LoDolce Machine Company supports the military industry with crucial components.
Nine years ago Michel Gagnon, a TRUMPF service engineer, travelled to Saugerties, New York to install a TruMatic 600 combination punch laser machine at LoDolce Machine Company. The shop’s president, Michael LoDolce, recalls the day very well. He remembers Michel saying he could not believe he was installing a combination machine in such a small shop. Michael’s response? “You’ll be putting another one in here some day.” His premonition was right. Five years later Michel was back in Saugerties, New York, installing another combination machine, this time a TruMatic 6000, and it has been full speed ahead for LoDolce Machine Company ever since.
Growing Pains Result in Room to Grow Michael’s grandfather started LoDolce in 1960. Located in Brooklyn, New York the company had just four employees. The business provided 14 Express 2/08
PROFILE
Titanium panels were cut for use on the Abrams tank.
”No one had ever processed such a high volume of titanium on a laser cutting machine before.“ general machining services – milling, grinding and turning – primarily for machine repair, specifically printing machines. Just four years after the company’s inception, LoDolce had grown out of its Brooklyn home and moved to a 23 acre property with one building in Saugerties. “There was plenty of room to grow here,” states LoDolce. And grow they did. “As our business has grown and diversified we have added a new building about every 15 years and in recent years even more frequently. Our seventh building was just completed last year, bringing us to 100,000 square feet of production and warehousing space.” Just how has LoDolce changed over the years? Gone are the days of printing machine repair. Today their staff of 65 services the transportation, computer, aerospace, and military industries with both machining and sheet metal fabrication capabilities. According to Michael, “Sheet metal fabrication was added to our portfolio of services about 25 years ago to better serve our customers. We provide them with “dock to stock” service by producing complete part packages that include machining, fabrication, welding, and fi nishing (paint or powder coat). We even package the parts in the customer’s box. When the shipment arrives at their facility the parts are ready to go right into production.” When asked how much of their business today is machining and how much is sheet metal fabrication, the father of five children (ranging in age from 9 to 24 years old) replies, “It’s an even split.”
the production of the F-22. They needed to produce tight tolerance parts from inconel for the tail pipe exhaust system. The ideal machine for this work was a combination punch/laser, but Pratt & Whitney did not have the machine to do the work. In fact, very few companies in the area had such a machine at the time. So Pratt & Whitney called upon LoDolce to do the work for them. “We’ve been making the parts ever since,” comments Michael. “The ongoing work for the F-22 project is why we bought our second combination machine.”
Protecting our Troops LoDolce Machine Company’s journey into the world of exotic materials recently led them to high speed processing of titanium. They were selected to provide titanium parts for the military’s M1 Abrams tanks being used by U.S. soldiers in Iraq. These tanks traditionally have heavy shielding on the front and back, but no protection on the sides making them vulnerable to IEDs. To address this situation, reactive armor tiles were developed to protect the sides of the Abrams tanks. Should the tank suffer an attack from either side, the tiles would pre-ignite the missile before impact, redirect accompanying shrapnel and prevent it from penetrating the tank and injuring the soldiers inside. With approximately 160 tiles measuring about 14 by 13 inches in size mounted on each tank, the military needed a lot of them and fast.
A Journey into the World of Exotic Materials
Laser Cutting Their Way to Success
At first glance, LoDolce Manufacturing may appear to be your traditional job shop specializing in high end high precision production of steels and aluminum. However, if you take a closer look you will fi nd some of their major projects, particularly in the aerospace and military industries, are anything but traditional. The TruMatic 600 machine that the TRUMPF service tech installed in 1999 was their first step into the world of fabricating exotic materials. Pratt & Whitney had just begun
Given a weekly quota for parts, speed and accuracy were crucial to their success. This essentially eliminated more traditional methods of processing titanium, such as waterjet cutting. It was quickly determined that laser cutting was the only option. Not only was it approximately 10 times faster to cut with a laser, waterjet machines could not hold the required tolerances. To meet the weekly quota Express 2/08
15
Mike LoDolce checks the quality of a part for the transportation industry with laser operator Matt Gregg.
demands LoDolce needed the fastest laser they could get. “We compared the 5 and 6kW machines and found that even though the processing time per part with a 6kW resonator was only a few seconds faster, the time savings still added up. The 6kW was the way to go,” says Michael. Armed with their TruLaser 5030 6kW machine, purchased specifically for this project, LoDolce took on the challenge of extremely high volume production of the titanium panels. As it turns out, meeting the weekly quota requirements was not their only challenge. No one had ever processed such a high volume of titanium on a laser cutting machine before. Until now a typical production run might require laser cutting a total of 20 sheets of titanium. “We were running 20 sheets every five hours for hours on end,” notes Michael. “The amount of titanium dust that resulted from such high volume cutting caused problems with the scale on the machine – scratching the glass and affecting accuracy,” he explains. “We worked closely with TRUMPF service and engineering and together we came up with a solution to the problem.” Michael developed a customer exhaust system to clear away the dust more efficiently while TRUMPF improved the scale, and the situation was rectified. After two years of high volume production running virtually 24 hours a day, LoDolce recently completed the M1 Abrams tank project. “We cut about one million panels over the life of the project processing a total of 8,000 4 x 8 foot sheets of titanium,” exclaims Michael. In addition to the titanium, LoDolce processed another 8,000 sheets of armored steel for the tanks. When asked how the titanium and steel parts were used 16 Express 2/08
together in the reactive armor tile assembly, Michael replies, “I really don’t know. That information was classified - top secret. We just made and shipped the parts. No questions asked.”
No Rest for the Weary With the Abrams tank project behind him, one might think Michael would now have some extra time to spend riding his Harley Davidson Softail or searching for a new high performance boat to cruise up and down the Hudson River, but Michael admits that while he enjoys riding and boating, his true hobby is his work - and the company is always busy. Their latest major project will once again support the military, producing armor from bullet proof steel for the MRAP project, the military’s newer armored vehicles. Titanium specialists Who:
LoDolce Machine Company, Inc., Saugerties, New York. Founded in 1960, 65 employees. www.lodolce.com What: Precision CNC machining, metal fabricating and mechanical assembly primarily for the transportation, computer, aerospace, and military industries. How: TRUMATIC L 3050 (TruLaser 5030) with LiftMaster, TRUMATIC 600 L, TRUMATIC 6000 L, TrumaBend V85 (TruBend 5085)
DISCUSSION
TRUMPF Finance Janet Barone, manager, customer contracts and financing, and Bo Anderson, program manager, discuss the various options available to TRUMPF customers.
There are many considerations when selecting a machine tool – which is the best technology for a given application, what size and speed is required, among numerous others. TRUMPF is often called upon as a trusted advisor to analyze the customer’s requirements and recommend the equipment that will best suit their needs. Th is is also true with machine fi nancing. TRUMPF Finance offers many solutions for meeting specific customer requirements, and can assist with the process of funding a machine purchase. What types of financing are available to TRUMPF customers? TRUMPF Finance offers a full suite of fi nancing products. Among these products are various types of leases including those where the customer owns the machine for $1 at lease expiration, seasonally adjusted payment leases, fair market value purchase option leases as well as a variety of customized financing solutions which are tailored to our customers’ specific business needs. Can you elaborate on the various lease types? Leases come in many forms, but they basically boil down to two types: 1) those where the equipment user (the Lessee) has ownership and 2) those where the Lessee has the right to use the equipment and the Lessor, TRUMPF Finance, is the owner. Express 2/08
17
DISCUSSION
Does leasing from the manufacturer increase Can a lease be customized to a customer’s the customer’s ability to purchase a higher specific needs? At TRUMPF Finance, we discuss with our level machine? customers where they plan on taking their With an in-depth knowledge of TRUMPF business. Following this, we work with machines, we have a better understanding of them to defi ne the fi nancing solution that the value of the machine than other lenders. best meets their business needs rather than Often, customers have a certain monthly forcing what is most convenient. In this payment with which they feel comfortable. way, we become another part of the trusted TRUMPF Finance can customize the financing advisory team that the customer has during package to meet the desired monthly payment their overall relationship with TRUMPF. amount and can offer financing solutions that others may not, including the customer’s How does a customer find out if they are ability to buy a higher level machine. eligible to participate in TRUMPF financing? Working with TRUMPF Finance is relatively Is TRUMPF Finance available in Canada simple. We ask our customers to complete a and Mexico? simple, one page credit application and in certain The short answer is no; not at this time. cases, we may ask for fi nancial statements. That said, we have ambitions to expand our Following this, a credit decision is made taking capabilities into Canada and Mexico. These into account the credit caliber of the customer are strategically important countries for and the specific machine characteristics. Once TRUMPF and TRUMPF Finance will eventually the machine order is placed, a set of documents grow to cover both Canada and Mexico. is signed and the lease begins after the machine is installed and accepted. It’s that easy!
”With an in-depth knowledge of TRUMPF machines, we have a better understanding of the value of the machine than other lenders.“
Leasing Options Lessee owns machine: ■ $1-Purchase Option Lease - The machine user agrees to make level payments for a fixed period of time. Once all of the lease payments are made, the Lessee can buy the machine for $1. This is similar to a loan and is a very common form of financing machine tools. ■ Seasonal Payment Lease – In this type of lease payments are lower during months where the customer’s cash flow is typically lower and payments are higher in months when cash flow is stronger. Many customers find that January through March tend to be slower months. This type of lease is common with machine shops that serve or operate in seasonal markets. ■ Balloon Payment Lease - Customers often face the challenge of needing a machine, but only have the budget for a specific monthly payment amount. In this case, qualified customers may take advantage of a balloon payment at the end of the lease. In this type of financing, the lessee makes a series of fixed payments that are lower than those of a $1-purchase option lease and is responsible for making a one time final payment. In this lease type, the lessee can often control their lease payment by increasing or decreasing the balloon payment. ■ Delayed Payment Lease - Payments are delayed for the first few months to allow the machine user to install and program the machine, train operators, begin producing parts and start generating revenue before having to make the lease payments. An example of a delayed payment lease would be $0 payments for 3 months followed by 57 level payments. Lessee does not own machine: FMV Leases - A lease where the lessee has use of the machine for a fixed period of time and agrees to make a regular monthly payment At the end of the lease, the lessee can either: 1) return the equipment, 2) purchase the machine for the fair market value (FMV), or 3) extend the lease on a month-to- month or periodic basis. ■ Fixed Purchase Option Lease - Similar to the FMV lease; however, instead of a fair market value (FMV) purchase option at lease end, the lessee has an option to buy the machine for a pre-established purchase price. ■
18 Express 2/08
SPECIAL
CombinationTechnology
→ The Best of Both Worlds Laser cutting and punching technology in one machine.
CombinationTechnology
The best of both worlds Combination technology combines the speed and edge quality of a laser cutting machine with the flexibility and forming capability of punching technology.
1979 →
1987 →
1984 →
The result is an incredibly flexible machine that in many cases can be more productive and efficient than utilizing stand-alone laser cutting and/or punching machines. In 1979 TRUMPF introduced its first combination punch/laser machine, the TC 180L. The machine was powered by CO2 laser resonators with power ratings of 500 and 700 watts. The TC 180 L and its successor, the TC 300 L, were made at TRUMPF’s North American headquarters in Farmington, Connecticut. Some of the original combination punch/laser machines are still in service today. 20 Express 2/08
Why combine the technologies? Combining technologies can sometimes result in more than the sum of the parts. In areas where one technology specializes, another may be adequate but not as efficient. Conversely, the two technologies may be so different that it is not at all possible to produce the total desired result with either single process. Transferring parts through multiple work centers reduces efficiency and accuracy and generally also increases floor space and lead time requirements. Combining the complimentary technologies in a compact, accurate and efficient manner
SPECIAL
1995 →
1989 →
that fully utilizes the best of both without compromises is a challenge that TRUMPF has met with its current line of combination punch and laser machines, the TruMatic series. As with every technology, punching and laser cutting as a sheet metal production method each has its own advantages and capabilities. Punching, or the punching process is capable of producing results unique to itself. Hole tolerances can be met that are only possible due to the extremely tight matching of the punch to the die. Punching can also produce a lot of holes quickly, up to 900 in one minute.
2001 →
Forming, made possible using punching technology can produce louvers, card guides, extrusions, tapped holes and even bends flanges up to 1 inch in height. Laser cutting, on the other hand can produce complex shapes with no tooling at all, leaving no trace of a burr. Using a laser for producing parts also offers unmatched turnaround time. When parts can benefit from both of these proven, productive technologies, they are a candidate for the combination technology machines.
Ideal Parts for Combination Processing → intricate parts with many tangential junctions → high edge quality requirement → identical holes / many holes → forming → tapping → laser cutting on formed areas
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SPECIAL CombinationTechnology
A Lean combination Combination technology supports lean manufacturing principles. By using combination processing parts can be made as efficiently as possible by only using the process required. Additionally, shorter lead times are required for part completion and extra handling for secondary operations is eliminated resulting in a reduction of overall part cost.
Combination Processing Lean Case Study Part Description: Adapter Plate, 4.5 mm, CRS Part Requirements: Tapping, Counter sinks, Counter bores, Good edge quality Part Cost Reduction – Less is More
Lean Summary – processing a single part Machine
Total Part Throughput Time
Total WIP
Value Added Ratio
Total Part Travel Distance
Set up/ Delay/ Transport
TruLaser 3030 – 4kW
67 minutes
5 pieces
2.9%
430 feet
65 minutes
TruPunch 5000
41 minutes
3 pieces
18.5%
120 feet
35 minutes
TruMatic 6000 -3.2kW
22 minutes
2 pieces
8.4%
70 feet
20 minutes
For more information on combination processing, contact Mike Morissette, product manager punching and combination machines at 860-255-6036 or mike.morissette@us.trumpf.com. 22 Express 2/08
INSIDE THE PRODUCT
A typical fabricator wants to distinguish his operation from the competition with a focus on innovation, flexibility and productivity. TRUMPF is dedicated to creating new features that improve existing products, as well as developing new products to meet fabricators’ ever-changing needs. One result of TRUMPF’s innovative R&D efforts for existing product enhancement is its new TruCoax 3200 laser resonator. The new, higher power TruCoax 3200 increases productivity with the same stable, no moving parts design as its predecessor, the TruCoax 2000, and features a diff usion cooled, highly intense cutting beam. The RF excited resonator has increased cutting speeds up to 100% in certain materials and is comparable to 4 kW resonators in thin materials. Ideal for sheet metal processing applications, the TruCoax 3200 was developed to boost the performance of TRUMPF’s TruLaser 2030 flat sheet laser cutting machine and has even better performance in thin sheet metal than its counterpart, the TruCoax 2000. TRUMPF’s TruCoax resonators have become synonymous with high beam quality and low cost of operation and are based on the coaxial resonator concept known from the original model, the TruCoax 2000. Without sacrificing any beam characteristics (such as beam quality) the power scaling of the TruCoax 3200 resonator has directly translated into higher cutting speeds. The TruCoax 3200 laser resonator is available on the TruLaser 2030 laser cutting machine providing the ability to cut extremely fast coupled with a proven, reliable automatic load and unload system, all contained within a small footprint. The TruLaser 2030 features a moving safety enclosure that provides safe operation with easy access to the processing area and is available in 48” X 96”, 48” X 120” and 60” X 120” working areas, allowing fabricators to use the material size that best fits their needs. The standard integrated automation is expandable with material carts, which increase f lexibility and reduce processing time in unmanned operation.
Packed with power New TruCoax 3200 comparable to 4kW lasers in thin materials.
The TruCoax 3200 in action on the TruLaser 2030.
> Additional information: Erin Chasse, 860-255-6707 Email: Erin.Chasse@us.trumpf.com
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FABRICATING
Jean-Francois Cantin, operations manager at SBI, focuses on efďŹ cient production.
A radiant glow Searching for the right business opportunity, the Cantin family warmed up to the idea of getting into the production of stove and furnace products.
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FABRICATING
When Jean-Francois Cantin thinks about anything, it is “If you have people inside your place who can see the always single purposed. Make it better. Many things exist capabilities of the machine, that’s what makes the difference.” around us that seem to be designed or operating successfully, He continues, “You can focus on the part, the time it takes but when you look closely at what makes them “tick,” there to produce the part or the price. However, to be successful, is always room to improve. This spirit of re-invention is how you also have to look at the possibilities. The part you need the Cantin family rebuilt a fledgling stove company into an to create is only one aspect. You need also to question, ‘how industry leader. can we make this part differently?’” Jean-Francois Cantin and his brother Marc-Antoine were both professionals evolving in their own industries Solving the puzzle when they decided to invest in a company of their own. “We This ingenuity has successfully carried SBI through many wanted to manufacture our own product which we could new acquisitions in the last nine years. Cantin emphasizes design and sell to the end user,” recounts Jean-Francois that SBI always looks to hire creative people and maintains Cantin, Operations Manager of Stove Builder International, the goal of producing the parts as efficiently as possible. Inc. (SBI) located in Quebec, Canada. Serious about the “What surprises us is that every time we make an acquisition, venture, they decided that Marc-Antoine, now President of we re-engineer the product and find we can dramatically SBI, should leave his job as an accountant to research the reduce the amount of labor involved. A piece that required options. “For a year, we sent the family all over, meeting three parts and four welds can be redesigned as a single part with many company owners and shopping around.” They without welds.” Cantin asserts, “There is a bit of a game to it, also sought advice from their father, now the company’s but it is only possible because we have the right equipment Chairman of the Board, who had over 30 years of managerial to do so and the right people to envision it.” experience and a wealth of knowledge. SBI does not just utilize this mentality to refi ne the In the end, Marc-Antoine and the Cantin family looked products they acquire, but also in developing new products. at over 100 companies before narrowing it down to the four Recently, SBI research and development has focused on their they felt best fit their criteria and were most promising. line of pellet stoves. Just as in 1999, when the Cantin family Upon further discussion, one eventually emerged as the purchased a majority stake in SBI, the price of heating oil clear choice. The family decided to invest in Drolet, which is on the rise and as such SBI sees the value in this niche. eventually became the backbone company of SBI. When Cantin explains, “The price increase affects how the asked why, Cantin simply explained, “When it came to customer thinks – they ask themselves ‘What can I burn Drolet, the heart was there.” other than oil?’ As a result, when oil prices rise, so do sales of our products that use alternative energy.” Thinking outside the stove As a result, Cantin reveals, “R&D has been working to Although the Cantin family owns 72% of the company, further develop our pellet they recognize their success relies on the whole SBI team. burning stoves.” But, with this They emphasize that the imagination and innovation of comes new difficulties for SBI. their employees provide an essential force in driving the “Pellets are made of corn, wheat company forward. Therefore, when SBI became interested and even grass harvested from in purchasing their first TRUMPF machine, Cantin didn’t go along the highway. Using this at it alone. “We brought in our own engineering team and I matter means we have to put made sure they were ready to look at the possibilities of what a lot more technology into the the machine could create.” By including the engineers in the stoves.” When burning pellets machine selection from the beginning, Cantin ensured the of this nature, the design first purchase and each of the 11 subsequent purchases from becomes more complicated TRUMPF would enhance SBI production for the future. than with traditional stoves. Express 2/08
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FABRICATING
SBI’s pellet stoves create a warm and inviting atmosphere.
”There is a bit of a game to it, but it is only possible because we have the right equipment to do so and the right people to envision it.“ “To effectively burn this type of fuel, you have to consider factors such as air flow and how it affects the heat output.” He continues, “This results in the necessity of additional sensors and more complex electronic cards in comparison to some of our other products.” However, while tweaking the technology, SBI still retains a focus on lean manufacturing and again relies on the creativity of the engineers. As Cantin stresses, “It’s always the goal to keep parts to a minimum.” By recognizing the 26 Express 2/08
capabilities of the TRUMPF machinery, and encouraging the creativity of their engineers, SBI has found an equation for success.
Fueling the fire When the Cantin family purchased a majority stake in SBI in 1999, the company was a $5.5 million operation with forty employees manufacturing 8000 stoves, fi replaces and other custom-made products a year. By maintaining their core objectives, SBI has
garnered great success. They have diversified their product portfolio and now, with 117 employees, SBI manufactures 60,000 residential heating appliances each year yielding $35 million in sales. With six brands and a wide variety of products, SBI has found the most effective way to manage manufacturing has been to centralize certain tasks. While each of the four manufacturing facilities has at least two TRUMPF press brakes and performs both
FABRICATING
Jean-Francois displays a louvered vent panel for one of SBI’s stove products.
bending and assembly, the laser cutting is all performed in the Quebec City facility. All of the finished products are distributed from this location as well. “Our larger distributors will often carry products from different brands which are fabricated at more than one facility. By centralizing the distribution from Quebec City, we can ship everything together giving them the convenience of a one stop shop.”
Calming waters Cantin is strongly focused on the development of the company, from production to engineering, to purchasing, but just as he knows his engineers must stay creative to be successful, so must he keep his own ideas fresh. One way he does this is by canoeing the rivers of the Canadian wilderness with his family, including his 10-year-old son and 8-year-old daughter. “It restores me and it makes a considerable difference with my performance.” He explains, “When I’m working, I am focused, aiming for my goals and thinking about them all the time.” But after returning from a week on the river, he feels rejuvenated. “You see things you could not see earlier,” which allows him to approach a task with a clean view – an advantage Cantin perceives as truly invaluable. Heating things up Who:
Stove Builders International, Quebec, Canada. Founded 1999, 117 employees. www.drolet.ca.
What: Manufacturer of wood, gas, oil and pellet stoves and furnaces. How:
TruBend 5130 with BendMaster, Three TrumaBend V130 (TruBend 5130), Two TrumaBend C 60, TRUMATIC L 3030 (TruLaser 3030), TRUMATIC 5000 R with SheetMaster (TruPunch 5000), TRUMATIC L 2510 (TruLaser 2030)
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The versatility of tubing “Tunnel” profiles in real-world use – put to the test by Klaus Wedekind, operations manager at the KETTLER Tube Works in Werl-Sönnern.
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The future belongs to pipes and tubing. Klaus Wedekind, operations manager at KETTLER tube works, is convinced of that. Why? Because these profiles offer new design options that save loads of cash.
TUBE PROCESSING
Round, square, rectangular, elliptical, oval, oblong — there is hardly any from the competition with one factor in particular. Not only is tubing cross-section that can’t be found at the tube fabrication plant operated by manufactured here, but comprehensive pre-fabrication machining is KETTLER, the company famous for its recreational and leisure products. also performed, which includes cutting tubing to exact lengths, bending, They process 25,000 tons of steel coil each year to make up almost 16,000 punching, welding, powder coating and electroplating. “In addition, we miles of precision steel tubing. At present, more than 100 different profiles have our own sheet metal processing capacities since sheet metal and are being manufactured as Klaus Wedekind, operations manager at the tubing complement each other extremely well to create highly functional, plant reports, and not without a sense of pride. “KETTLER products, be cost-efficient assemblies,” Klaus Wedekind adds. it children’s toys, exercise machines or lawn and garden furniture, are design-driven products. Over and above the ‘normal supply range’ offered Competitive even in short production runs by other tube makers, we can deliver many special-design profi les and Particularly in recent years, KETTLER has faced tough competition. carry out pre-fabrication work, as well.” Thus, the company’s designers Wedekind explains, “The leisure products sector is one that manufacturers and engineers are constantly developing new profiles that not only look in the Far East have discovered. We cannot and do not intend to compete good, but that offer technical advantages. with the low-cost items manufactured there. Consequently, we have specialized in the medium and high-quality product sectors.” Thus, as an The tunnel tube is something of a trademark almost inevitable consequence of this specialization, batch sizes dropped. Take the “tunnel tube” as an example. This D-shaped profi le, reminiscent Whereas in the past, for example, customers might have ordered 5,000 to of the cross-section of a highway tunnel, was developed and put into 10,000 Kettcar pedal go-carts in one purchase, today’s volume is usually production at KETTLER more than 10 years ago. Since then, it has only between 500 and 1,000. “To be able to manufacture profitably in spite become something of a trademark for the company. Among its many uses of this, we had to become more flexible and shorten the entire production is the height-adjustable seat post for KETTLER exercise bikes. According cycle.” KETTLER found an answer to these demands in the leisure to Wedekind, “We had previously used two rectangular cross sections products industry in laser-based metal tube processing. This technique as a pair of telescoping tubes, but a certain amount of play was intrinsic makes it possible to manufacture components flexibly and economically, to this design and the posts often wobbled in spite of their being secured even in small lots. KETTLER Tube Works operates two TRUMPF laser with a set screw. With the D-tube, by comparison, we can achieve a tube cutting machines, used to fabricate complex geometries that would much stiffer joint, since tightening the set screw presses the radius of be difficult to achieve with punching technologies. The advantages are the inside tube against the radius of the outside tube.” It was exactly this quite apparent to Klaus Wedekind. “In the meantime, we have hundreds kind of special solution that company founder Heinz Kettler wanted of different patterns for tubing to be made by the laser. Punching these to make possible when, in 1977, he set up his own tube manufacturing demanding parts in the past, if that was possible at all, would surely have capacities in the Sönnern quarter of the town of Werl in Westphalia, involved several hundred thousand euros in tooling costs.” Germany. Here, high-quality components and assemblies could be manufactured individually to meet the needs of production operations Two steps instead of eight for the firm’s recreational and leisure goods. Today, all of the tubing used Laser processing has also opened the door to entirely new engineering in KETTLER merchandise is made from three high-frequency resistance designs that further reduce manufacturing costs. The operations manager welding lines at the tube works. This KETTLER plant sets itself apart once again uses the seat post as an example of the fi rst component Express 2/08
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TUBE PROCESSING
KETTLER manufactured on the laser tube cutting machine. “Eight steps had previously been required to make up the seat post. Thanks to laser-based tube processing, there are now only two steps and, in addition, we can make the seat post from a single component, not from two tube elements, as in the past. Taken together, these improvements mean significant cost savings.”
Third parties profit, too Over the course of time, the engineers and manufacturing specialists at KETTLER Tube Works have amassed comprehensive expertise about the capabilities of laser-based tube processing. This is knowledge that other companies can use, too, since the tubing facility also supplies outside customers. Unique here is the fact that tube and pipe processing, preassembly machining work, sheet metal processing and surface finishing are all available from a single source. “With our store of knowledge about tubing and tube engineering, which has grown continuously over the years, we can give our customers valuable advice on how to replace costintensive components with more economical tube designs and what design options are available.” Today, companies from a wide variety of industries, including furniture makers, conveyor and agricultural equipment manufacturers, warehouse equipment and shelving makers, capitalize on the experience available at KETTLER Tube Works. Outside business has grown to account for about 30 percent of all job orders and
the trend continues to increase. Another important group of customers is in the automotive OEM industry. Solid components are being replaced with tubular designs in the interest of reducing vehicle weight. Thus, tubing can now be found in head restraints, cross-members and seat frames.
Good ideas for simplified assembly “Our outside customers profit from our expertise in assembly and joining,” Wedekind adds. “That’s because KETTLER products also have to be easy for the layman to assemble. We have developed special solutions here, such as threaded fittings pressed into the tube wall, which simplifies customer assembly at home. This option is often of great interest to our outside customers.” Precision steel tubing Who:
Tube works operated by Heinz KETTLER GmbH & Co. KG in Werl-Sonnern, Germany. Founded in 1977, 120 employees. www.kettler-rohrwerk.de What: Precision steel tubing in a wide variety of cross-sections, extensive pre-fabrication capacities, assemblies made of tubes or tubing and sheet metal, sheet metal processing. How: Two TruLaser Tube 5000, three TRUMATIC 600 L, one TRUMATIC 500
Whether rectangular, round, oval or D-shaped profiles, the tube processing plant operated by Heinz KETTLER GmbH processes 25,000 tons of steel each year to turn out 25 million meters of precision steel tubing. 30 Express 2/08
ONE QUESTION
What is the Economic Stimulus Act of 2008, and how does it affect sheet metal fabricators, Ms. Coleman?
“The combination of enhanced expensing and accelerated depreciation can lower the after-tax cost of investing in new equipment.“
service during 2008. This incentive is available to all companies, regardless of the size of their investment. The provisions work this way: Companies are eligible for a “bonus” first-year depreciation totaling 50 percent of the cost of the investment and can depreciate the remaining basis of the asset under the regular depreciation rules. For example, assume that on March 1, 2008, a calendar year taxpayer acquires and places in service property that costs $1,000,000. The taxpayer is allowed a fi rst year bonus depreciation deduction of $500,000, with the remaining $500,000 of adjusted basis recovered in 2008 and subsequent years under current depreciation rules. For MACRS five-year property, the taxpayer would be allowed to recover 20 percent of the remaining adjusted basis of $500,000 -- or $100,000 -- in 2008. The total depreciation deduction for the MACRS five-year class life property would be equal to $600,000 ($500,000 + $100,000) or 60 percent of the adjusted basis of the property originally placed in service in 2008.
While most of the media attention has focused first $250,000 of capital investment, effective on the cash rebates for families and individuals, for purchases made in 2008. the Economic Stimulus Act of 2008, signed into For example, a business owner that buys law by President Bush on February 13, 2008, also a $250,000 machine this year can deduct the includes $45 billion in tax incentives designed total cost of the equipment in 2008. If the to “stimulate” business investment. As outlined equipment costs more than $250,000, but the in more detail below, the increased expensing company spends less than $800,000 on capital limit is geared to smaller businesses and a 50 equipment during 2008, the company can percent “bonus” depreciation provision benefits couple expanded expensing with the accelerated businesses of all sizes. depreciation described below. Under these Investments That Qualify The combination of “enhanced expensing” and provisions, a $300,000 machine that is Modified for the Incentives “accelerated depreciation” can lower the after- Accelerated Cost Recovery System (MACRS) 5- There are several requirements for investment tax cost of investing in new equipment for sheet year property would qualify for a $280,000 first property to qualify for bonus depreciation. In metal fabricators and also generate new orders year deduction (93 percent of the cost of the general, the property must be property with from customers. The power of these incentives asset); and a $500,000 machine could qualify a recovery period of 20 years or less, water can be dramatic. If you or your customers need for a $400,000 first year deduction (80 percent utility property, certain computer soft ware, new equipment and are ready to invest, you of the cost of the asset). Smaller companies can or leasehold improvements. In addition, the need to act fast—to qualify for these benefits, get even more of a “bonus” by taking advantage taxpayer must be the first to use the property businesses need to have their new investments of expensing and then using the 50 percent and must purchase and begin using the up and running by the end of the year. expensing allowance described below. equipment in 2008.
Expanded Expensing for Small Businesses
Accelerated Depreciation for All Businesses
Here’s how it works: Companies that purchase less than $800,000 of capital assets in a year now can expense (i.e., deduct currently) the
The new law also includes a new 50 percent bonus depreciation provision that also applies to capital equipment purchased and placed in
Dorothy Coleman is the Vice President of Tax, Technology and Domestic Economic Policy at the National Association of Manufacturers.
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Brian Greenplate (standing left) and some of PCI’s employees.
A blending of two worlds The unique combination of large corporate experience and the entrepreneurial spirit of a small business has enabled Brian Greenplate to propel the growth of Precision Cut Industries.
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LASER TECHNOLOGY
When German settlers came to south-central Pennsylvania in search of new opportunities, they brought many customs and traditions from their native land. When Brian Greenplate came to Hanover, Pennsylvania-based Precision Cut Industries (PCI) in 2004, he too imported elements from his former life in the world of large corporations. Since then Greenplate’s ideas have taken root in the fertile ground of PCI, transformed the company landscape, and quadrupled revenues from 3 to 12 million dollars.
A Legacy of Laser Cutting Precision Cut Industries has been dedicated to high-tech laser cutting operations ever since it was founded in 1998. Four years ago, when Brian Greenplate arrived at PCI, the company already had five laser machines busily cutting customer parts. “TRUMPF lasers were part of PCI from the start,” explains Greenplate, now PCI’s owner, president and CEO. “The previous owner did a lot of research and carefully chose the laser technology he wanted to put into the company.” A sole dedication to precision laser cutting served the business well in its first six years, bringing the company to $3 million in sales per year. In addition, the company had fostered a strong entrepreneurial culture in which employees felt empowered to make contributions. Despite the achieved level of success, revenues began to level off. Greenplate knew that the business model had to change in order to grow. Additionally, Greenplate had dreamed of owning his own business so when the chance arose to purchase PCI, he bought it. “I felt there was an opportunity to build upon PCI’s successful laser operations, expand its capabilities, and offer more value-added services,” he says. “But in order to get to the next level, PCI needed a more strategic focus and formalized procedures to support increased growth.”
Big Plans Realized An executive and seventeen-year veteran of a German corporation whose turbine and generator products provide one-third of the world’s hydropower, Greenplate was familiar with the advantages of larger, more mature companies. He also understood the benefits of long-term strategies and processes. “There’s a certain level of structure, procedure and discipline a company needs to be successful,” says Greenplate. “I wanted to marry a larger company’s strategic focus and structure with the entrepreneurial culture and agility that comes with being smaller.” While processes can bring stability, Greenplate acknowledges that too many procedures can create unnecessary delays and bureaucracy, particularly in larger companies. By contrast, smaller companies are sometimes able to more rapidly adjust operations to meet changing market demands. “The ability to quickly modify what your company is doing to meet your customers’ needs is a huge advantage,” he says.
Structured with Flexibility Greenplate and his team developed a plan to ensure their decisions correspond with where they want to go and how they want to get there. A living document, the plan is revisited regularly to guarantee each step goes in the right direction. “Our strategic plan helps us have the right people, thought process and culture in place so that we can achieve a vision that’s consistent with the character of our business,” says Greenplate. “We don’t want to accomplish the plan in a way that compromises our values and integrity.” PCI also developed the processes required to operate on a more professional level, which employees seem to appreciate. “When an organization doesn’t have enough systems in place Express 2/08
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LASER TECHNOLOGY
Scott Groft of PCI loads laser cut and bent parts into a robotic welding cell.
there tends to be chaos, which creates frustration for ever ybody,” explains Greenplate. “We have enough structure that our employees understand what we want to do and their role, but we maintain enough flexibility so that we don’t tie their hands.”
Standards for Quality Adopting new procedures also helped the company meet the requirements necessary to achieve ISO 9000 certification. Certification can create an advantage for smaller companies looking to acquire OEM contracts. The policies and structure maintain the consistency and quality which corporations expect from vendors. Greenplate concurs. “More and more of our larger customers and OEMs only want to deal with suppliers who are ISO certified.” Greenplate believes that certification conveys the message that PCI has the right organization in place to support the needs of a larger corporation. “It provides a level of comfort that the supplier has the systems to produce quality parts on a consistent basis,” he says. “Even though we are not a large company, we can prove that we understand what they’re looking for and deliver it.”
Growing to Meet Their Partners’ Needs Today PCI is a high-tech contract manufacturer running three shifts a day, five days a week. The company is devoted to keeping relationships with its customers ongoing, long-term and focused on contract manufacturing work. As part of this partnership, PCI makes a serious effort to listen to what customers have to say. “Our partners told us our laser-cut parts were great, but they wanted us to do more,” says Greenplate. Numerous PCI customers explained that they were passing along their laser-cut parts to two or three additional suppliers, which was not cost effective. To grow the business in a customer-focused manner, Greenplate decided to offer more value-added capabilities. “Until we could provide more than just laser cutting, for customers requiring an increased scope it would be hard to fully partner with them and meet their needs,” he says.
Knowledge and Technology Create New Capabilities Building up the capacity to provide new services required increased knowledge 34 Express 2/08
LASER TECHNOLOGY
”Our partners told us our laser-cut parts were great, but they wanted us to do more.“ Art with a laser, just one of many industries PCI supports.
and staff. PCI also purchased additional equipment to provide a more complete array of capabilities. Over the last few years, the company invested in six additional pieces of TRUMPF equipment: three laser cutting machines and three press brakes. “TRUMPF technology fits well with our plan by providing the flexibility required to adapt to customer needs,” Greenplate explains. “The lasers are incredibly flexible and allow us to do a wide variety of jobs. And the press brake’s precision and reduced setup time corresponds with our ability to provide total solutions.”
Strength in Flexible Diversity The flexibility to meet a variety of demands enhances PCI’s ability to successfully maintain its diverse customer base. “We do work for customers in the art, conveyor, agricultural, energy, construction equipment, transportation and defense industries,” says Greenplate. The value of client diversity to company stability is something Greenplate carefully considers. Too much work tied up with one or two customers can pose a risk to a smaller company, making it vulnerable to business cycles. “We pursue jobs in various industries so that the business cycles can offset one another,” he says. “We never want to turn away business, but at the same time we are cognizant of the work we take on and aggressively target new market segments.”
Facilities Build Confidence and Excitement Soon after Greenplate’s arrival, PCI moved to a newer, cleaner building. “We love to have customers tour our facilities,” says Greenplate. “Customers often comment on how clean and organized our manufacturing environment is and all the technology we have. It really creates a positive impression.” The company’s physical appearance engenders confidence that work will get done in a timely and high-quality manner. “It is important for potential customers and employees to see what the company looks like,” says Greenplate, noting that the company has also created a virtual facility tour on their website. “It really gives them a sense of who we are and how we do things.” The production atmosphere and state-of-the-art machinery also play a role in the company’s ability to attract bright young
candidates. “Young people don’t get excited about working in a dark dingy environment,” he says. “But we have found plenty of talented young people excited about working for a manufacturer that uses high-tech equipment in a clean, well-lit, organized environment.”
Lean Approach Yields Gains Continuous improvement, Greenplate believes, is critical to keeping manufacturing alive. “It energizes people about new ways of doing things,” he says. “Our employees are really excited about lean manufacturing. They are hungry to do things in a different, more effective manner.” In the last year, PCI has created a stronger focus on lean and cellular manufacturing. One of the company’s cellular approaches yielded turnaround times and results that ultimately helped garner a supplier of the year award from FleetwoodGoldcoWyard. Greenplate explains, “As a result of changing how we produced the parts and by developing cellular arrangements, we produce the parts they need in half the time previously required.” Not a company to rest on its laurels, PCI plans to continuously improve and expand by supporting its existing customers and gaining customers in new markets. “We are one year into a five-year strategic plan,” says Greenplate. “We want to be to 20 million in size. And TRUMPF machinery fits into the overall vision of where we want to go strategically.” Laser cutting experts Who:
Precision Cut Industries, Hanover, Pennsylvania. Founded in 1998, 75 employees. www.precisioncut.com What: Laser cut parts, components and subassemblies that become parts of manufactured products for customers in the art, conveyor, agricultural, energy, construction equipment, transportation and defense industries. How: Four TRUMATIC L 3030 (TruLaser 3030), Two TRUMATIC L 2530 Plus (TruLaser 2525), TRUMATIC L 2530, TRUMATIC L 3050 (TruLaser 5030), TrumaBend C 120 (TruBend 3120), Two TrumaBend V130 (TruBend 5130)
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PERSONALITIES
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PERSONALITIES
Service with a smile TRUMPF’s head waitress serves it up every day.
Customers that visit TRUMPF’s North American headquarters in What is the most interesting part of your job? Farmington, Connecticut are often treated to lunch in the Customer Believe it or not, there are a lot of interesting aspects of my job. The most and Technology Center’s Executive Dining Room. This dining experience interesting to me is meeting new people. TRUMPF is a company that has includes soothing views of the campus pond, freshly prepared main customers all over the world. Everyday there are people visiting from courses, delectable desserts and first class service from Dominika Leniart, different states, countries and cultures. I have served people from India, TRUMPF’s head waitress. We asked Dominika to tell us a little about Costa Rica, France and once even a customer from Poland. herself and her experience at TRUMPF. Another thing I find really interesting about my job is having the opportunity to learn what TRUMPF is all about. At the beginning everything Where are you from originally and what brought you to the United States? seemed the same to me but, after being around for a while, I now know I was born and raised in Poland. My grandmother lived in the the difference between TruLaser, TruPunch and TruBend machines. I am United States for over 30 years and she brought her daughter and really amazed by some of the things TRUMPF machines are able to do. her family here. They persuaded my parents to apply for a visa and come to the U.S. to provide me and my siblings a better life and more How many meals does the kitchen staff serve each year to customers, opportunity for the future. Waiting for approval to come to the United employees and training? States took a long time, over 9 years! Then one year, I received a very You know, I never thought about it. Every week is different but, if you special birthday gift – notification that my family and I would receive consider the typical training classes, the Executive Dining Room plus the our visas. employees that work in the Customer and Technology Center combined with special functions every couple of weeks - after doing some quick math, I would estimate we are looking at more or less 8,000 meals a year How many years have you worked for TRUMPF? I started working at TRUMPF just a couple of months after I came to the – and that is just in our building. There is another cafeteria in the main building on the other side of the TRUMPF campus. United States. I have been working here for just over 2 years now. What are your primary responsibilities? My primary responsibility is catering. I am responsible for the set up and service of lunches in the Executive Dining Room. I also provide refreshments in the various conference rooms for customer demonstrations and meetings. Did you have any catering experience before coming to TRUMPF? No, I never worked in the catering business before. In fact, I didn’t really have any work experience at all when I came here. In the beginning it was tough to be in a new country with new people and a new language but, the TRUMPF customers and employees were very understanding and patient with me. I realized after just a couple of months that things were not as complicated as I expected.
Do you participate at all in the planning of the meals/menu? I don’t have any influence on what is served in the employee cafeteria, but most of the time I help plan the menu for the Executive Dining Room. We try to be creative and come up with something different for every day. After your years of interacting with TRUMPF customers have you come to learn some of their special needs or requests? After being here for 2 years I have learned what particular customers like. It is hard to remember everyone’s name when we have so many visitors coming through, so I recognize them by what kind of soda they like, how they like their coffee or their favorite dessert. It might sound funny but, this knowledge really helps me to better know our customers and their requests. Express 2/08
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TRUMPF Express turns 25 “Dialogue with clients” has been the assignment for TRUMPF Express for a quarter of a century now. This mission was originally stated by Berthold Leibinger in the editorial for the first edition, which appeared in June of 1983. Twenty-five years ago, publishing a journal for customers was by no means commonplace and that was why the inventors of the TRUMPF Express were not sure how the idea would be received. The idea grew out of many conversations with customers; it was discovered that they were interested in having more information about TRUMPF than what they received in sporadic personal talks, as Berthold Leibinger reported in that first editorial. Establishing a continuous flow of information was from that time forward the objective and purpose for TRUMPF Express.
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The discussion subjects became clear right away: the broad spectrum of sheet metal processing and the wide range of uses for TRUMPF machinery, depicted using technical information and practical examples of customer applications. The newspaper has, over the course of time, grown to the size of a magazine. The number of pages has increased. The photos and headlines are now in color and people have moved into the foreground. This is a logical development because, just as its technology, TRUMPF wants its customer magazines (Express now has several “siblings” for other business fields) to be innovative as well. They are supposed to put the customers up to new ideas — worldwide. TRUMPF Express has always been international in its outlook. Even the first issue appeared in three languages. In 1984 a Japanese version was added. Today, in addition to the German edition and an international version in English, there are separate editions for the North American and UK markets. The first TRUMPF Express in Italian was recently introduced at the “Lamiera” trade show. And all of this is just the beginning — because 25 years old is hardly old at all.
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STORIES IN SHEET METAL
CREDITS
TRUMPF Express 2/08 Magazine for Sheet Metal Processing Published by
The long unsung genius Leonardo da Vinci invented a rolling unit for sheet metal as early as the 15th century.
TRUMPF Inc. Farmington, CT 06032 www.us.trumpf.com Responsible for the content
Sheila LaMothe Editor-in-Chief
Melanie McMillan 860-255-6112 melanie.mcmillan@us.trumpf.com Editorial Staff
Leonardo’s wringer Who invented it? The world’s first sheet metal rolling mill was sketched by multi-talented Leonardo da Vinci.
Kristina DiGiorlamo Mike Gordon Susan Grohs Sheila LaMothe Karen Miller Design and production
John Mik, MIK Advertising & Design Printing and assembly
No other individual in the 15th century had more inventions to his credit than this artist, architect and engineer. He was never without his sketch book, 7,000 pages of which are still in existence. He thought up aircraft and other means of transportation, clocks, musical instruments, weapons and hundreds of mechanical and hydraulic machines. Among them, the world’s first draft for a sheet metal rolling plant. The master wanted to incorporate into his machine the largest possible number of movements and steps in the process. His intention was, by way of standardization, to achieve uniform, precise results at maximum output. That was a thoroughly modern approach for someone who lived 500 years ago. The clever technician had recognized the fact that machinery that is to work precisely has to be built from perfectly uniform metal parts. With the method common to that time – taking a solid ingot and hammering it by hand for days to achieve the required size and thickness – it simply wasn’t possible to satisfy that requirement. A machine built specifically for this purpose had to be invented. Da Vinci devised and drew it in 1497 – a hand-powered unit that, in addition to the two main rolls, also included two smaller rolls. Leonardo’s idea was 40 Express 2/08
for them to keep the large rolls from bending under the high pressures. Such deflection would have produced sheets that were slightly convex at the center rather than being uniform in thickness. A sketch dated 1515 shows a more complex device that would have made it possible to draw copper strip. The emphasis is on “would have” because even with these fairly basic creations, da Vinci was once again ahead of this time. Hardly any of his “follies”, as skeptical contemporaries dubbed his sketches, were brought to fruition during his lifetime. It wasn’t until 300 years later that sheet metal was rolled. The first sheet metal rolling mill was built at the Dillinger Hütte smelters in Saarland, in 1802. In the following 100 years, the process became universally accepted and has maintained its supremacy to the present. For about 200 years after Leonardo’s death his ideas remained largely unknown and misunderstood. That is truly a shame. How much earlier could Leonardo’s machines have not only simplified manufacturing sheet metal, but also taken much of the “heavy” out of “labor?” > More about Leonardo da Vinci: www.mos.org/leonardo/bio.html or www.univeralleonardo.org
Paladin Commercial Printers, LLC Contributors
Catherine Flynn Robert Devol pr + co. gmbh, Stuttgart Photographs
Steve Adams Photography Oeil pour Oeil C-Tech Industries BRT Photographic Illustrations New Flyer Nordic Air ebm-papst TRUMPF Archive WARN Industries
The joy of reading is often taken for granted, but many of Americans struggle with the day to day challenges associated with being unable to read and write. For much of his life Jay Thiessens, a successful business man, was one of these people. After overcoming his own battle with illiteracy Jay and his wife Bonnie created the Jay and Bonnie Thiessens Literacy Foundation. Through corporate and individual donations the foundation provides the tools and support to help people overcome their struggle with illiteracy. For more information on the Thiessens Literacy Foundation and how you can help, please call 775-772-4274.
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Recipe for Success It’s hard to resist a freshly baked cookie and the simple happiness it brings. And, Unox, a partner of Cadco, Ltd. has found a way for bakers to quickly serve up sweetness whenever a customer wants to indulge in a warm and tasty treat. Their expertise in developing quality foodservice equipment blended with the precision of
their TRUMPF machinery allows them to produce parts that are as fresh and crisp as the cookies they bake. So, whether it’s parts per minute or cookies per hour, they are delivered just in time – leaving their customers with a taste of perfection while Cadco and Unox enjoy the sweet aroma of success.