2. Hugh Ruffing Biography
Executive Summary
Over 30 years experience in Metal Forming
Management.
Employment History
President, Masterbuilt Tool & Die 2007 – 2008
CEO, Red Rock Stamping Co. 1990 – 2007
VP Manufacturing and VP Sales
The Dickey-Grabler Co. 1970 - 1990
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3. What do I do?
I consult with the Metal Forming
Industry, so that your company can
own the process of off-shoring the
design and build of tooling and
gages.
My goal is to work with you so you
can lower your costs and shorten
your lead-times.
I help remove your fears concerning
this process change
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4. What is off-shoring?
Off-Shoring is moving an activity
from the United States to the Far
East. In this case, I am talking
about the design and build of
metal stamping dies and gages.
In most cases this activity is
already being outsourced at your
company.
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5. Am I a sales representative?
No
This process is too important to
farm out to someone outside of
your company. I work with your
employees, with the final goal of
turning the entire process over
to your company for long-term
success and control.
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6. How to accomplish this task?
• Through training and development of
key personnel within your company.
• Through introducing you to proven
sources in the Far East.
• Through being involved with your
company until a die is approved at
your chosen source.
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7. Choices That You Must Make
Do nothing
Use a Sales or Engineering
Representative firm
Own the off shoring process
yourselves
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8. Do Nothing
Starting position of every company
Fear of distance to a supplier
Fear of traveling to a new country
Fear of a new business culture
Fear of a new language
Fear of new relationships
They really can’t do that !!!!
All the tools are junk !!!!
Too much effort for the return
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9. Do Nothing
You’re not becoming global
You’re not learning what’s happening
in other parts of the world
You’re not being cost effective
You’re not helping your customer
improve
You’re not helping your company
improve
You’re ignoring an entire market that
your competitors aren’t ignoring.
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10. Use a Sales or Engineering
Representative Firm
You’re giving your ongoing profits to a
sales representative.
You’re not becoming global, the sales
representative is becoming global.
The relationships aren’t yours, they’re the
sales representative’s relationships.
You normally don’t control where a tool is
placed.
A middle man has been added in the
communication stream.
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11. Own the Off-Shoring Process
Your company works with the suppliers
directly. The relationships are yours
Your company becomes global.
Your company realizes lower tooling costs.
Your company realizes shorter lead times
for design and build.
The process is too important to pass onto
a sales representative firm.
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12. Results of owning the off-
shoring process
Tool costs averaged 40% to 60% of
U.S.
Lead-times, for parts running on
automatic, were averaging 6 to 8
weeks for dies that were 2 to 3
meters in length.
Tooling became a solid profit center.
Profits increased
Sales increased 12
13. Lead-Time detail for Far East tooling
200 and 300 ton dies - normally 50 days for good parts on automatic (smaller dies around 2.0meters
400 and 600 ton dies - normally 60 days for good parts on automatic (longer dies around 3.0meters)
50 Day Lead-Time 60 Day Lead-Time
Description Days Total Description Days Total
Strip Design 3 3 Strip Design 4 4
Die Design 7 10 Die Design 11 15
Build / Parts Ready to Run on Build / Parts Ready to
Automatic 40 50 Run on Automatic 45 60
Automatic Tryout -
Automatic Tryout - Approval 7 57 Approval 7 67
This is the key number of days when parts can be flown back to U.S. for our
customers
Move Die to Hong Kong Port Move Die to Hong Kong
of Debarkation 7 64 Port of Debarkation 7 74
Ocean time to port of Entry - Ocean time to port of
Long Beach 21 85 Entry - Long Beach 21 95
Customs clearance and Customs clearance and
delivery to Client 5 90 delivery to Client 5 100
PPAP to follow PPAP to follow
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26. Closing Thoughts
• Use LCC suppliers in the structure of
your business.
• Increase your company’s sales.
• Improve your financial position.
• Your company needs to be global.
• Your company must champion this
process change internally.
• Your company must be proactive
• Your company must do it right.
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