1. V&M STAR
NORTH AMERICA’S LEADING PRODUCER OF SEAMLESS TUBULAR PRODUCTS VOLUME IV NUMBER 3
Rick Hiles, Piercer
Process Engineer, is
working with Christian
Klempel, an engineer
from V&M Deutschland,
GmbH, to find the most
economical tooling for
our Piercer. They analyze
operating parameters on a
day-to-day basis, check to
see that the right tooling
is available, and discuss
operations, equipment,
and tooling with the
Piercer operators, Team
Leaders, and maintenance crews.
Their task would be virtually
impossible without computers and
sensors because there are more
than four dozen parameters taken
into account for every run. Before
each run, they review the order
information entered into a Process
Control Report (PCR) Setup Screen
by the operators. Some of the items
are the sort of thing you might
expect, i.e., billet diameter, mandrel
size, shell dimensions, product size,
speeds, and cut length. Others are
a bit more abstruse, i.e., HEAT
SHEET WALL and STICH ZAHL.
Computer-generatedProcessControl
Reports give an immediate visual
check of certain
parameters over a
period of several
days.Ideally,when
running a given
product, many of
them would show
straight horizontal
lines indicating
c o n s i s t e n t
Free money continued other side
Meet the People of V&M STAR
Piercer studies lower tooling costs
Hiles continued other side
performance. For instance, the line
wouldnotshiftupordowniftherollsor
Diescherdiscsdidnotchangeposition.
Of course, there are always variables,
such as temperature fluctuations in the
incoming billets, so some changes are
normal.
In addition to all of this empirical
data, Rick gets a lot of information
from his ongoing communication
with operators and maintenance
personnel. He also learns a lot as
the facilitator for a Continuous
Improvement Team concerned with
Hot Finishing Maintenance.
Rick serves on V&M STAR’s 5-S
Committee, which studies the
organization of tools and equipment,
the condition of the workplace, and
ways in which efficiency can be
increased. He is a 5-S auditor for the
MeltShopElectricArcFurnaceandthe
Pipe Mill Physical Laboratory. Healso
is an internal auditor for our ISO for
audits. The International Organization
for Standardization (ISO) sets quality
standards worldwide, ensuring
uniformity of specifications for
Like some free money?
by Cissy Hortin and Gayla Gaudette
That is what you get from your
V&M STAR 401(k) Plan. The
Company matches every dollar you
save in the Plan, up to 3% of your
income. Then for every dollar you
save on the next 2% of your income,
the Company adds $0.50. It is like
getting a 4% raise: you save 5% for
yourself and you get an extra 4%.
That is not all. Uncle Sam wants
to encourage your saving, so you
will not pay taxes on the amount you
save until you eventually take it out
of savings. But that is still not all.
The Company may provide
additional contributions to your
account as part of year-end EBITDA
Sharing: an annual allocation. For
2006, we project that this will be
5% of your total earnings. But wait,
there is still more.
If you save in the 401(k) Plan, you
will be eligible for an additional
match that the Company may give
after the end of the year. This is the
Profit Sharing Match. For 2006, we
are projecting that the additional
match will be $0.50 for every dollar
you save up to 11.4% of eligible
wages. We are also projecting
an estimated $1,595 lump sum
contribution to your 401(k).
Hereisalookatwhatallofthiswould
mean for someone making $50,000.
Rick Hiles with Piercer photo on his computer monitor.
Personal savings $ 3,000 ($50,000 X 6%)
Company Safe Harbor Match $ 2,000 ($50,000 X 4%)
Projected Profit Sharing Match $ 1,500 ($3,000 X 50%)
Projected Profit Sharing Lump Sum $ 1,595
Projected Company Annual Allocation $ 2,500
TOTAL $10,595

2. Deductyour$3,000contribution,and
you wind up with a $7,595 employer-
paid contribution to your 401(k)
retirement savings plan. But hang on,
there is one more major advantage.
Your personal savings and the
Company’s Safe Harbor match are
100% vested, and the funds always
belong to you. The discretionary
annual allocation and profit sharing
contributions are subject to a five-
year vesting schedule, in which
ownership of the money transfers
to you over time, beginning with
your date of hire. After five years
of service, you are 100% vested,
and all 401(k) funds belong to you.
You are the one who decides how to
invest the money in your account.
Profits may not always be as good as
they are this year. If you assume that
the Company contribution had to be
cut in half for the next twenty years,
you would still see excellent growth in
your401(k)savings.Ifyourinvestment
grew at a very conservative annual
rate of 5%, you would have $282,713
for your retirement after only twenty
years. If the rate were 8%, you would
have $391,264. So, do you want some
free money?
To set up a new 401(k) account or for
assistance with your existing account,
please contact your local Human
Resourcesrepresentative:CissyHortin,
phone (330) 480-6726 or Ashley
Harvey, phone (281) 456-6004.
Hiles continued
Free money continued
materials, manufacturing processes,
testing procedures, and terminology.
It requires both internal and external
audits that lead to corrective and
preventive actions throughout the
certified organization.
Althoughheisarelativenewcomer
to V&M STAR—Rick joined us as
a Project Manager in September
of 2005—he has had many major
responsibilities. He spent only
a few months in his initial job,
but he was involved in the Pulpit
Consolidation Project (Furnace
Discharge, Piercer, and MPM),
safety systems at the Baghouse,
and investigating proposed projects
to see if they were viable.
In November of 2005, he was
namedSizingMillandHotFinishing
MaintenanceEngineer.Heanalyzed
delayrates,recommendedsolutions,
and did troubleshooting. When the
Hot Finishing Maintenance CIT
discovered a shaft misalignment in
the chain section of Cooling Bed
#2, they corrected the problem
eliminating about five hours of
downtime each year. Rick was
instrumental in starting the project
to refurbish the exit section of the
Sizing Mill. This involved replacing
the rolls and chains in the bed, and
upgrading the straightener entry
stands.
Rick graduated from New Castle
High School in Pennsylvania
in1990, and earned his Bachelor
of Science degree in Mechanical
EngineeringfromThePennsylvania
State University in 1995. He did his
graduate studies at Youngstown
State University, earning his
Executive Masters in Business
Administration in 2003.
While attending college, he worked
at Sharon Tube Company in Sharon,
PA. He did design work, physical
and chemical testing, and served an
internship in Quality Assurance and
Engineering. In 1996, he was hired as
ajuniormechanicalengineer,andwas
laterpromotedtomechanicalengineer
and then production foreman. He was
involved in
a variety
of projects,
andmainte-
nance and
p r o c e s s
work.
He and
his wife,
Anastasia,
were married in 1998 in Erie, PA.
They have a two-year-old daughter,
Cassie, and another child is expected
to arrive next May. There is not much
time for outside activities, but Rick
enjoys sailing and racquetball when
he can find time for them. With some
babysittinghelpfromthegrandparents,
Rick and Anastasia did manage a
Caribbean cruise last summer.
Rick presents study results.
Roger Lindgren, CEO,
addresses Ohio
Congress Committee
V&M STAR’s CEO Roger
Lindgren was invited to speak
before the Ohio House Finance
and Appropriations Committee
on behalf of a coalition of
taxpayers and groups supportive
of Substitute House Bill 632.
Many major, energy-intensive
corporations were represented
in the coalition, including GM,
Ford, Daimler Chrysler, AK Steel,
Mittal Steel, WCI Steel, and the
Timken Company.
The proposed legislation would
provide a partial tax rebate
for companies that use large
amounts of electricity. Lindgren
emphasized three major points in
support of the legislation. One,
the cost of electricity is critical to
many Ohio-based manufacturers
that are facing fierce national and
international competition. Two,
Ohio’s deregulation of electricity
coupledwiththeplannedexpiration
of the Rate Stabilization Plans
could push prices higher over the
next two years. Three, large users
of electricity are paying a kWh
tax that is based, in part, on the
price of electricity, so they will
pay more in taxes if the cost of
electricity increases.
AtatimewhenOhioisattempting
to foster industrial growth, this
legislation is definitely on point.
The rebate is limited to one dollar
of credit for every ten dollars of
capital investment the taxpayer
makes in Ohio. This “invest in
Ohio” mandate of the bill assures
a significant commitment on the
part of all the companies applying
for a rebate.