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How to have it all quality, cost, and performance

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How to have it all quality, cost, and performance

  1. 1. How  to  Have  It  All:  Quality,  Cost,   and  Performance   X  
  2. 2. 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  
  3. 3. 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  
  4. 4. 3  Legged  Stool  with  Seat   Cost   Performance  
  5. 5. Order  Entry  to  Cash  from  a  SaKsfied  Customer   Sales Start   ProspecKng  for   Business   RFQ   EngineeringOperations 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  
  6. 6. Sales Start   ProspecKng  for   Business   RFQ   EngineeringOperations 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   PR—Prospect  to  Repeat  
  7. 7. Pit  Stop  1950  67s   h[ps://www.youtube.com/watch?v=RRy_73ivcms  
  8. 8. h[ps://www.youtube.com/watch?v=NVJ-­‐gXhscwc   Danica  Patrick  8.5  seconds  
  9. 9. h[ps://www.youtube.com/watch?v=RRy_73ivcms   Pit  Stop  2013  <3s   StarKng  at  1:23  
  10. 10. PR—Prospect  to  Repeat   Sales Start   ProspecKng  for   Business   RFQ   EngineeringOperations 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  
  11. 11. PR—Prospect  to  Repeat   Sales Start   ProspecKng  for   Business   RFQ   EngineeringOperations 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   Manual   Input  
  12. 12. PR—Prospect  to  Repeat   Sales Start   ProspecKng  for   Business   RFQ   EngineeringOperations 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   Decision  Decision  
  13. 13. 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  
  14. 14. Spring  &  Forming  Industry  is:   Growing   19%   Steady   62%   Shrinking   19%  
  15. 15. Expect  Change   0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
  16. 16. h[ps://www.youtube.com/watch?v=99KNCCIiMQI  and   h[ps://www.youtube.com/watch?v=omLKbKakDoY   Spring  Manufacture—Overview  
  17. 17. MagneKc  Force  
  18. 18. Sales/MarkeKng/ProspecKng/Tracking   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%  
  19. 19. Sales  Methods   0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
  20. 20. Forms  of  Payment   0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
  21. 21. 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  
  22. 22. 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  
  23. 23. GravitaKonal  Force  
  24. 24. 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%
  25. 25. Tax  &  AccounKng   0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
  26. 26. Phone  System   0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
  27. 27. 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  
  28. 28. 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  
  29. 29. FricKonal  Forces  
  30. 30. Issues   0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
  31. 31. KPI—Key  Performance  Indicators   0.0%   20.0%   40.0%   60.0%   80.0%   100.0%   120.0%  
  32. 32. CAD/CAE   ProEngineer,  0.0%   AutoCad,  50.0%   CaVa,  3.3%  SolidWorks,  36.7%   CorelCAD,  0.0%   KeyCreator,  10.0%   Other,  26.70%  
  33. 33. ERP—Enterprise  Resource  Planning   JobBoss   13%   Shop  MRP   2%   Infor  Syteline   7%   EPICOR   13%   Plex   9%   Other   56%  
  34. 34. 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  
  35. 35. Other  Issues—Internal   •  Be[er  spring  engineering  somware   •  TransiKon  from  mechanically-­‐actuated   machines  to  electrically-­‐actuated  machines     •  ConKngency  planning  
  36. 36. 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  
  37. 37. Cummins  Engine—Jamestown  
  38. 38. Force  of  Nature  
  39. 39. Open  Discussion  of  Risks   •  What  disrupKons  have  you  experienced  this   year  alone?   •  What  disrupKons  have  you  experienced  in   other  years?  
  40. 40. Atomic  Forces  
  41. 41. Other  Issues—CompeKKon   •  Foreign  compeKKon   •  Enabling  technology  from  out  of  the  blue   upsewng  industry   •  What  are  you  seeing  in  terms  of  compeKKon?  
  42. 42. Centrifugal  Force  
  43. 43. 3rd  Party  CerKficaKons   0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
  44. 44. Other  Issues—Market  Constraints   •  Professional  standards  in  wire  industry  vs.   Japan   •  Verifiable  tesKng  standards  
  45. 45. 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.  
  46. 46. Open  Discussion   •  What  does  the  government  do  to  your   business?  Anything  new  coming?   •  What  market  constraints  do  you  have?  
  47. 47. Force  of  Change  
  48. 48. 7  Forces  
  49. 49. h[ps://www.youtube.com/watch?v=2qk5vxWY46A   PCB  Manufacture—Germany  
  50. 50. 3  Legged  Stool  with  Seat   Cost   Performance  
  51. 51. PR—Prospect  to  Repeat   Sales Start   ProspecKng  for   Business   RFQ   EngineeringOperations 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  
  52. 52. PR—Prospect  to  Repeat   YourCompany Customer   Sales   CustomerSupport Engineering   Never   Finish   OperaKons   Parts  &   Invoice   Finance  
  53. 53. Pit  Stop  2013  <3s   StarKng  at  1:23   Let’s  Spring  into  acKon!!!   h[ps://www.youtube.com/watch?v=RRy_73ivcms  

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