How to have it all quality, cost, and performance

How to Have It All: Quality, Cost, and Performance

X

Paul Menig, CEO PaulMenig@Tech-‐I-‐M.com

Helping You Get Money Out of Your Business

And Time for Your Life

Driving Faster Profitable Growth

What I Promised How to Have It All: Quality, Cost, and Performance

•  No compromise •  Advanced manufacturing examples •  Integrated & Automated SoluKons

•  Order entry to cash from a saKsfied customer

3 Legged Stool with Seat

Cost Performance

Order Entry to Cash from a SaKsfied Customer

Sales

Start

ProspecKng for Business

RFQ

Engineering

Operations

Customer Support

Preliminary Design

Cost EsKmaKng

Quote Purchase Order

Never Finish

Final Design Tooling Design

Finance

Scheduling Internal ProducKon

External ProducKon

Pack & Ship

Parts

Credit Approval Invoice Final Cost

Sales

Start


RFQ

Engineering

Operations

Customer Support

Preliminary Design

Cost EsKmaKng


Never Finish


Finance


External ProducKon

Pack & Ship

Parts


PR—Prospect to Repeat

Pit Stop 1950 67s

h[ps://www.youtube.com/watch?v=RRy_73ivcms

h[ps://www.youtube.com/watch?v=NVJ-‐gXhscwc

Danica Patrick 8.5 seconds

h[ps://www.youtube.com/watch?v=RRy_73ivcms

Pit Stop 2013 <3s StarKng at 1:23


Sales

Start


RFQ

Engineering

Operations

Customer Support

Preliminary Design

Cost EsKmaKng


Never Finish


Finance


External ProducKon

Pack & Ship

Parts



Sales

Start


RFQ

Engineering

Operations

Customer Support

Preliminary Design

Cost EsKmaKng


Never Finish


Finance


External ProducKon

Pack & Ship

Parts


Manual Input


Sales

Start


RFQ

Engineering

Operations

Customer Support

Preliminary Design

Cost EsKmaKng


Never Finish


Finance


External ProducKon

Pack & Ship

Parts


Decision Decision

Survey

•  15 Site visits – Washington, Oregon, California, Illinois, Indiana, Michigan, Tennessee, Texas

•  Wri[en Survey – 13 MulKple choice quesKons – 1 Open ended quesKon – Up to 48 responses from @212 member locaKons

•  23% response rate is outstanding

Spring & Forming Industry is: Growing 19%

Steady 62%

Shrinking 19%

Expect Change

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

h[ps://www.youtube.com/watch?v=99KNCCIiMQI and h[ps://www.youtube.com/watch?v=omLKbKakDoY

Spring Manufacture—Overview

MagneKc Force

Sales/MarkeKng/ProspecKng/Tracking

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sales Methods

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Forms of Payment

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Other Issues—Customers

•  Constance price reducKons from customers and price pressures where it will make it difficult to keep and raise the wages of employees

•  Customer process integraKon •  Warranty

Example ProspecKng Tools

•  Websites need a[enKon •  Use ERP somware modules if available •  CRM tools should be invesKgated •  Spreadsheets should have visual report output •  Standardize sales reports everyone can use

GravitaKonal Force

IT Support Provided by:

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Tax & AccounKng

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Phone System

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Other Issues—Supply •  Supply chain is falling down. Squeezed far too long—so

many are just closing shop. New suppliers hire young people with no experience, and nobody wants to take on risk anymore. As a supplier to the Springmaking industry, we have no choice but to start charging more and at a rate HIGHER than inflaKon.

•  There seems to be a lack of consistency in the quality of the raw material used to make springs

•  Disappearance of US Baird/Nilson for new machines •  Lack of materials •  Rod availability in US •  Liability for bad materials or improper cerKficaKon •  TransportaKon costs

Improve the Supply Chain

•  Value added processes should be internal or have a close partner

•  Determine which processes are non-‐value added and don’t provide a compeKKve advantage – Outsource them

FricKonal Forces

Issues

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

KPI—Key Performance Indicators

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

CAD/CAE ProEngineer, 0.0%

AutoCad, 50.0%

CaVa, 3.3% SolidWorks, 36.7%

CorelCAD, 0.0%

KeyCreator, 10.0%

Other, 26.70%

ERP—Enterprise Resource Planning JobBoss 13%

Shop MRP 2%

Infor Syteline 7%

EPICOR 13%

Plex 9%

Other 56%

Other Issues—People

•  DifficulKes finding people who – Want to work & learn spring making – Are younger and can succeed – Are skilled and competent—technical/metalurgical – Want to learn manual and CNC controls – Want to be educated for the future – Can succeed aging workforce

•  May drive mergers

Other Issues—Internal

•  Be[er spring engineering somware •  TransiKon from mechanically-‐actuated machines to electrically-‐actuated machines

•  ConKngency planning

Standardized Interface

•  Minimize Kme and effort to get a CNC machine running quality parts

Compression Spring IteraKon 1 Part Number: Run #: Print Rev: Characht

erisKc

InformaKon about the part design directly out of design somware database ( Print Specs)

Cold Dimensions from coiling and before

stress relief

Dimensions on iniKal check amer stress relief and post processing

In SPEC? Needed changes in CNC program

Nominal Max Min setup results audit results automaKc amount to adjust the CNC PGM

End ID 1 1.5 1.52 1.48 1.53 1.518 Y FALSE Middle OD 2.5 2.52 2.48 2.51 2.498 Y FALSE Total Number of Coils 12 13 11 12.8 12.9 Y FALSE AcKve Number of Coils 10 11 9 10.8 10.9 Y FALSE Free Length 10 10.1 9.9 12 9.8 N 0.1 Pitch 1 1.2 0.98 N -‐0.98 Spring Rate 50 55 45 N/A 52 Y FALSE Load 1 100 110 90 N/A 104 Y FALSE Load 2 200 220 180 N/A 208 Y FALSE End ID 2 1.625 1.645 1.605 1.665 1.653 N -‐0.008

Cummins Engine—Jamestown

Force of Nature

Open Discussion of Risks

•  What disrupKons have you experienced this year alone?

•  What disrupKons have you experienced in other years?

Atomic Forces

Other Issues—CompeKKon

•  Foreign compeKKon •  Enabling technology from out of the blue upsewng industry

•  What are you seeing in terms of compeKKon?

Centrifugal Force

3rd Party CerKficaKons

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Other Issues—Market Constraints

•  Professional standards in wire industry vs. Japan

•  Verifiable tesKng standards

Other Issues—Government •  What is the government doing to help small manufacturers to survive foreign compeKKon. If U.S. manufacturers have to play by the rules OSHA, EPA, etc. why do we allow countries, that don't pracKce this, do business in the USA? Level the playing field.

•  Government regulaKons and taxes •  NAFTA could very soon start affecKng the machine prices coming from outside the U.S.A. We are already seeing the expired tax credit affect the machine sales.

Open Discussion

•  What does the government do to your business? Anything new coming?

•  What market constraints do you have?

Force of Change

7 Forces

h[ps://www.youtube.com/watch?v=2qk5vxWY46A

PCB Manufacture—Germany

3 Legged Stool with Seat

Cost Performance


Sales

Start


RFQ

Engineering

Operations

Customer Support

Preliminary Design

Cost EsKmaKng


Never Finish


Finance


External ProducKon

Pack & Ship

Parts



Your Com

pany

Customer

Sales

Custom

er Support

Engineering

Never Finish

OperaKons Parts & Invoice

Finance

Pit Stop 2013 <3s StarKng at 1:23

Let’s Spring into acKon!!! h[ps://www.youtube.com/watch?v=RRy_73ivcms