precision news september/october 2012

PrecisionNews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

The NTMA SW Regional Magazine Featuring Arizona, San Diego, San Francisco and North Texas

TTHHIISS IISSSSUUEE:: Appreciation &Dedication / Political Pandering / Mastering Precise Manufacturing / Corrosion

TM

ARIZONATOOLING.ORG SEPTEMBER/OCTOBER 2012

NTMA SW BRINGS YOU:

THEEXPERIENCEANDINSIGHTTOGETTHE JOBDONE!

IInnssiiddee::IS MONEYAMOTIVATOR?ARE YOUR EMPLOYEES MOTIVATED BY THEWORK ITSELF OR BY THE REWARD?

CONCENTRATION OFSALES IS A GAME OF ‘RISK’LEARN THE SIMILARITIES BETWEEN POSITIONING AN ARMY FOR BATTLE AND BUILDING A BUSINESSFOR LONG-TERM SUCCESS

COSTING IS THE ONLY THINGGATHER SOLID AND REPRESENTATIVE DATA TOACCOUNT FOR WHAT YOUR PRODUCT COSTS

THEANALYSIS ISSUE

BLAZE ANEWPATH

NEW POLICIES,NEW PROCESSES

AND

NEW PROCEDURES

/AND WATCH YOUR BUSINESS GROW! /

september/october 2012 arizonatooling.org PrecisionNews 01

Contents101216

SEPTEMBER/OCTOBER 2012 VOLUME 2 • ISSUE 6

PrecisionNews

The NTMA SW Regional Magazine Featuring Arizona, San Diego, San Francisco and North Texas

EXECUTIVE DIRECTOR & EDITOR Chris Mignella

CONTRIBUTING WRITERSJamie Beauvais, Dante Fierros, Sean Holt, Margaret Jacoby, Omar Nashashibi, Davis Senkfor, Brent Terhaar, Ted Szaniawski

ADVISORY BOARDChris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser

EDITORIAL, ADVERTISING & ADDRESS CHANGESChris Mignella, Executive Director & EditorPhone: 602.388.5752Email: [email protected]

Precision News is published bi-monthly by the ArizonaTooling & Machining Association (ATMA). Opinionsexpressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes noliability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork.Reproduction in whole or part without the expressedwritten consent from ATMA is prohibited. Precision Newsis the registered trade name of this publication.

Copyright ©2012 by ATMA. All rights reserved.

TM

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OOUURR MMIISSSSIIOONN::

“WE JOIN TOGETHER AS MEMBERS OF THE SW REGION PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”

Features DepartmentsSPECIAL ADVERTISING FEATURE

THIS CORROSIONThe annual costs associated with corrosion in the United States was between $9 billion and $90 billion. As you can see, corrosion is a major problem for us all.

CONCENTRATIONS-A GAME OF RISKThere are many similarities between building and positioning an army for battle and building and positioning a business for long-term success.There are also many risks that both face and must overcome.

WHY COSTING ISN’T JUST THE MOST IMPORTANT THING, IT’S THE ONLY THINGCost analysis is the most important aspect of a company’s financial condition. Without a firm handle on costs, profitable selling pricescannot be established which cut to the core of the existence of thecompany. Any size company must gather solid and representative datato properly account for what the product costs.

03 President’s Letter

04 Policy Matters

06 Trend Watch

08 People Power

18 Shop Floor

20 Websites that Work

20 Arizona Chapter Info

26 San Diego Chapter Info

28 North Texas Chapter Info

30 San Francisco Chapter Info

02 PrecisionNews arizonatooling.org september/october 2012

• Aluminum• Nickel• Stainless Steel• Copper• Brass• Titanium• Aerospace Alloys

Call Kerry [email protected]

• Glass• Wood• Plastic• Paper• Cardboard• Certified Material Destruction• All Ferrous Grades

Consolidated Resources Inc.4849 West MissouriGlendale, AZ 85301Office: 623.931.5009Fax: 623.931.5852

www.consolidatedresources.com

20thAnniversary

Consolidated Resources, Inc.Industrial Recycling Specialists

ATMA MEMBER

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.. .. . .

appreciation: sensitive awareness; especially recognition of values; an expression of admiration or gratitude.

We were deeply saddened by the loss of our board member, associate and friend Bob Marusiak,CEO of Micro-Tronics Inc. who passed away after a valiant fight against cancer. Bob so loved hisfamily, country and God and we as his friends and associates miss him and will continue to do sofor a very long time. We appreciate the fact that his path crossed ours and are especially gratefulfor knowing him and working with him.

I am also very appreciative of the positive feedback we have received about our dinner meetings andother activities in support of our members. The increased participation by our members, associatesand sponsors is noted and for this we all benefit and are grateful. Please keep your comments anddirections coming. We are here to support the needs of our members through service.

We have increased our membership to number 82 which is great. However, we still see a few non-participating members falling away and not being part of the group. We endeavor to find out whyand hopefully, prevent any future resignations.

Continuing the discussion of appreciation, we are planning a wonderful “Member AppreciationNight” for September 26th at the Hilton Hotel. This program is sponsored and coordinated by ourassociate members and is full of good reasons for your attendance and participation. The agendaincludes:

• The latest associate member information on display• Associate member giveaways• An exciting presentation by a USAF officer with the theme of appreciation for the work our members do on how we positively impact the USAF mission • A drawing for an exciting B17 or B24 ride (for member representatives only)• A wonderful buffet and cash bar• The opportunity to network with associates, sponsors and peers

Keeping with the USAF subject, I am also appreciative of the fact that Luke Air Force Base will be the home to three squadrons of the new F-35 Lightning II pilot-training mission. This insures apositive economic impact to Arizona and to many of our ATMA member companies.

And finally, I am also appreciative of our teams that help to make our association a great one toinclude the Safety Team, our Marketing, Membership and Planning team, our Board of Directorsand individuals that seem to always find a few hours in the week to help out with many differentprojects. We continue to work with new and helpful “partners” like the Society of ManufacturingEngineers (SME), Arizona Commerce Authority (ACA), Arizona Chamber of Commerce andIndustry, the East Valley Partnership (EVP), ASU, Maricopa Workforce Development, ArizonaPrecision Manufacturing Apprentiship Program (AZPMAP).

Thank you all for your great efforts.

APPRECIATE...

First WordPRESIDENT’S LETTER

DANTE O. FIERROSPresident

[email protected]



Washington, D.C. – We are accustomedto seeing politicians from the county sheriffto Members of Congress to presidentialcandidates kissing babies, shaking hands,and visiting the local diner to rub elbowswith voters. But a new wave of politicalpandering has broken – courting themanufacturing vote.

As a lobbyist in Washington, D.C. formanufacturing trade associations andcompanies, my job is to convince leaders inCongress and the White House to developpolicies that strengthen manufacturing inAmerica. Typically, some people are morereceptive than others, but we have seen anotable and welcome change this year intheir attitude towards manufacturing. Moreand more lawmakers are calling us asking if we will set up a manufacturing plant tour or CEO roundtable in their congressionaldistrict, so they can meet business ownersand employees (read: voters).

Lawmakers on both sides of the aisle haveintroduced hundreds of bills in both theHouse and Senate impacting manufacturingas they try to show their support for thebackbone of our economy.

President Obama dispatched Vice PresidentBiden to virtually live in the manufacturingheavy states of Ohio and Pennsylvania. In looking at the presidential and vicepresidential candidate travel so far this year,we see their overwhelming focus on theMidwest and Western parts of the country.Since taking office in 2009, President Obamahas visited Ohio 39 times, Colorado 16times, and Arizona and New Mexico 10 times.

Republican presidential candidate, formerMassachusetts Governor Mitt Romney,recently toured the plant of a National

Tooling and Machining Association membercompany where he held a press conferencediscussing his proposals to strengthenmanufacturing in America.

For years, we have been trying to getpolitician’s attention and now we have it. So what is next? With a captive audiencebetween now and the November 6 electiondate, it is critical that manufacturers seize the opportunity to educate politicians aboutthe industry. Some will say “why should thismatter; after the election they will just goback to business as usual.” Here is whythere is no business as usual anymore inWashington.

On January 1, 2013, $5.4 trillion in taxincreases take effect if Congress does notact affect every manufacturer in the country.The nonpartisan Congressional BudgetOffice released an earthshattering report inAugust saying the country will slip back intoa recession with unemployment exceeding9.1% if Congress fails to prevent billions intax increases and spending cuts before theend of the year. Regardless of what happensby year’s end, manufacturers have a lot atstake in 2013 and this November’s electionscould determine both the winners and losersin tax reform, which Washington is slated totackle next year.

Nearly every political analyst believes thispresidential election will be one of theclosest in history—one where every votecounts. Public polls in swing states acrossthe country show either the President orGovernor Romney ahead by less than fourpercentage points. There are roughly 200million eligible voters in the U.S. of whichmanufacturing, including employees andbusiness owners and their families make up roughly seven percent of the voting age

population. If just half the eligiblemanufacturers vote, their ballots could swing the election to one party or the other.

In 2008, both Senators Obama and JohnMcCain (R-AZ) spent heavily courtingindependent and undecided voters. Thiselection has shown there are very few trueundecided voters. Therefore, this electionwill focus on turnout and which voters turnup at the polls in November.

This is why NTMA and other groups arefocusing so heavily on Get Out The Vote (GOTV) efforts and encouragingmanufacturers to vote in this decisiveelection. NTMA is providing resources to itsmembers at www.metalworkingadvocate.orgwhere manufacturers can see how any givenmember of Congress has voted on issuesimportant to our industry. While both politicalparties are engaging in massive voterregistration drives, NTMA is also helpingmanufacturing businesses inform theiremployees how to register to vote and theimportance of this election.

With so much at stake in November andfewer than a couple percentage pointspossibly deciding the outcome, every vote counts. As politicians pander tomanufacturers looking for your vote, seizethe opportunity to educate policymakersabout your business and the pivotal role itplays in the economy.

OMAR NASHASHIBI is a foundingpartner at The Franklin Partnership, LLP, a bi-partisan government relations firmretained by the National Tooling andMachining Association in Washington, D.C.

Learn more at: www.franklinpartnership.com

Politicians Courting ManufacturersA New Wave of Political Panderingby OMAR S. NASHASHIBI

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Policy MattersBECOME A VOICE FOR CHANGE

fyi:With so much

at stake in November and fewer than a couplepercentage points possiblydeciding the outcome, every vote counts. +

THE STATE OF ARIZONA has a broad and capable industrial base committed to providing low-cost manufacturing to OEMs and Tier Ones around the world. Our agile and entrepreneurial small shops make Arizona’s high-tech manufacturing supply baseone of the world’s most capable and cost-effective for machined and fabricated components. Our industry supplies the necessaryprecision tooling and machining for such vital industries as defense, automotive, aerospace, medical, appliance, business machines,electronics, agricultural implements, ordinance, transportation, environmental, construction equipment, nuclear and many more.

Contact the Arizona Tooling and Machining Association and discover why doing business in Arizona will give your company the Competive Edge.

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

[email protected]

ATMAP R E C I S I O N

Arizona Tooling & Machining Association

THE ARIZONA TOOLING AND MACHINING ASSOCIATION

arizonatooling.org

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FOCUSED ON THE FUTURE:

MANUFACTURINGIN ARIZONAAND PROVIDING THE CAPABILITIES YOU NEED TODAY!


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Trend WatchNEWS FROM THE CUTTING EDGE

Because these parts must withstand extremeconditions, they often require titanium, superalloys and other hard-to-machine materials.The same materials that guarantee the mostsolid, reliable components, however, oftenbecome subject to extreme manufacturingmethods that cause heat and stress thatadversely affect the integrity of the finishedpart. What’s more, the manufacturingprocesses for these parts are checked andaccepted prior to machining; making itimpossible to change or improve aspects ofthe machining process—insert style, grade,geometry, cutting speed/feed/depth—withoutrecertification.

The importance of surface qualityThe term “surface integrity” describes thequality and condition of a surface region, andencompasses the surface topography andany sub-surface metallurgical alterations.

The combination of stress and elevatedtemperatures that occur during machiningcan lead to alterations of the microstructure,

When it comes to manufacturing, few industries involve higher demands, stricter safety standards and tougher-to-machinematerials than aerospace and automotive. In these industries, subpar surface quality or part integrity can mean life or death—andare simply unacceptable.

cause micro-hardness changes, surfacecracking, craters, folds, inclusions, plasticdeformation and residual stresses in thefinished part.

The extent of such defects depends uponthe work-piece properties and the interactionof the mechanical and thermal energy duringmachining.

Machine and tooling leaders are constantlydeveloping technological innovations toeliminate the challenges inherent inmachining hard materials. When optimizingtheir processes, however, manufacturers andtheir customers must know and understandthe effects of changing operatingparameters before they accept newmachining strategies.

Profit takes productivity, qualityWhen optimizing a machining process for acritical component, keep productivity andquality in mind. The new method should offera reliable process with the lowest total cost,

while still producing parts with optimalsurface quality for high performance andlongevity. In titanium, for example, theminimum requirements are parts with adeformation depth no greater than 10micrometers, with compressive residualstresses returning to normal within 200micrometers of the surface.

With titanium and other difficult metals,tooling plays a large part in the process.First, because of the materials involved,these machining applications call for larger-volume insert use. The cost of theseinserts—and the resulting time operatorsmust spend indexing them—can be a hugedrain on profit. To combat this,manufacturers can use uncoated inserts witha ground sharp edge, which will maximizetool life. Previous tests in titanium haveshown that coated tools offer no consistentsurface-integrity advantage over uncoatedtools—since coated tools cause a high-levelof chemical reaction and temperatureextremes at the cutting edge.

Mastering Precise ManufacturingProcesses for Critical Partsby SEAN HOLT, AEROSPACE APPLICATION MANAGER, SANDVIK COROMANT US

+

fyi:Total solution support

should encompass spindleinterface, tool holder selection,programming methods, insertgrade and geometry, and

surface integrity.


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systems can help with chip-breakingperformance.

Partner upIndustries that require components with highsurface quality can be difficult to navigate.It’s important to choose a partner thatunderstands the nuances of challengingmachining applications. Tooling partnersshould provide total solutions thatencompass spindle interface, tool-holderselection, programming methods, insertgrade and geometry. Be sure to choose apartner who has the training programs andresources to provide ongoing support ifissues or questions arise.

While critical-component machiningpresents challenges, the growthopportunities are extraordinary. With apartner that understands the balance ofproductivity and part quality—plus the rightknowledge and tools—the sky is the limit.

SEAN HOLT is the Aerospace ApplicationManager at Sandvik Coromant U.S.

Visit www.aero-knowledge.com for these and other aerospace component solutions from Sandvik Coromant.Learn more about trochoidal turning, trochoidal milling,and other CAM programming tips atwww.MyYellowCoat.com/cam-tips

*Previously published in AMT News, October 2011.

The insert-holding system can also play apart in lessening setup and tool-changetimes—which occur more frequently whenmachining difficult materials. Quick-changesystems can allow manufacturers to changeinserts in a matter of seconds, rather thanminutes. Finally, using a maximum cuttingspeed of 380 surface-feet per minute willslow down the tool-wear process.

Another productivity tip: Always use a ound insert or the largest radius possiblewhen machining critical parts, to allow anincreased feed rate. This helps to achievehigher metal-removal rates and increaseefficiency. Also, productive coolant

INDUSTRIES THAT REQUIRE COMPONENTS WITH HIGH SURFACE QUALITY CAN BEDIFFICULT TO NAVIGATE. IT’S IMPORTANT TO CHOOSE A PARTNER THAT UNDERSTANDSTHE NUANCES OF CHALLENGING MACHINING APPLICATIONS.

+


For years you have heard statement like,“Different strokes for different folks,” “to eachhis own,” and “people do things for their ownreasons, not yours.” When you are in a workenvironment that supports your values, youwill be energized. However, when in anenvironment that stresses values that aresignificantly different from yours, you mayfeel out of sync.

Therefore, we believe strongly that thequestion “Is Money a Motivator?” cannot beanswered in a global sense, but rather mustbe addressed individually.

An assessment we use in our consultingpractice is “Workplace Motivators™”. This assessment identifies and ranks six “values” or “attitudes” that act as individualmotivators. It identifies an individual’spassion for each of the six values. And by measuring values, we uncover whatmotivates each individual.

Is Money a Motivator? Yes . . . for those with a high ranking inUtilitarian or Individualistic. Utilitarian is bestdefined as ROI. It relates to money and theefficient use of time, energy and resources.Most assuredly these individuals aremotivated by money! Research has shownthat 83% of top performing sales peoplehave Utilitarian as their primary or secondaryMotivator. Individualistic has to do withpower and influence. Money is one of theingredients in their tool kit to carry out theirmission to assert themselves and theirmission.

In a Forbes magazine article - “Why Money Isn’t a Motivator” (Jacobs) - critiquing the on-going government bailouts andparticularly the use of mandated caps on executive compensation. The major point made by the author is that these caps are“self defeating”, that “we are motivated by the work itself, not the reward”. He goes on to observe that the on-going economiccrisis offers us the opportunity to focus “not on the accumulation of wealth, but on community and public service”.

Is Money a Motivator? No . . . for those with a high score ofAesthetic or Social. The Aesthetic valuesform, harmony, beauty and balance. Think“starving artist” or environmentalist asprofessions that motivate a high Aesthetic.The Social values emphasize making theworld a better place and eliminating hateand conflict through their inherent love ofothers.

Is Money a Motivator? Maybe . . . for those with a high Theoreticalor Traditional ranking. Theoretical focuseson truth and knowledge while a Traditionalattitude focuses on principles and finding/following a system for living. Neither of thesetwo attitudes specifically addresses thequestion of money as a motivator; hence we include them in the “maybe” category. To answer this question for these individuals we need to look at the secondary level ofMotivators to move them into the Yes or Nocategory.

Lesson for Leaders/ManagersFor Leaders/Managers to manage effectivelythey must understand what motivators a jobwill reward. And then, they must understandwhat motivators each employee brings to theorganization. Matching the two will result in“unleashing talent”.

TED SZANIAWSKI is the principal ofHRGroup, LLC. He can be reached [email protected] more at: www.hrgrouponline.com

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

People PowerINFORMATION FOR ACTION

IIss MMoonneeyy aa MMoottiivvaattoorr??Yes, No and Maybe!by TED SZANIAWSKI

RESEARCH HAS SHOWN THAT 83% OF TOP

PERFORMING SALES PEOPLE HAVE “UTILITARIAN”

AS THEIR PRIMARY ORSECONDARY MOTIVATOR.

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What Drives You May Not Be What Drives Your EmployeesMotivation is the number one problem facing business today

Over the past 40 years there have been numerous surveys onwhat motivates employees to do their best work. Once people findthey earn enough to live on and money ceases to be a stress factorin their lives many other motivators in the workplace become ofhigher importance.

For motivational problems, the best source of information is theemployee. Employees must be asked on a regular basis whatsparks and sustains their desire to work. Their responses may leadthe employer to redesign jobs, increase pay, change the workingenvironment, or give more credit for work done. The key is,however, that managers avoid the assumption that what motivatesthem motivates their employees as well.

Studies have shown that employees are motivated by feedbackand recognition for the work they do. Here lies the problem. Most employers think they know how to express appreciation for a job well done. Yet, research shows that employers seldomacknowledge appreciation for employees’ work; and, when theydo, it is done poorly.

More than 80 per cent of supervisors claim they frequently expressappreciation to their subordinates, while less than 20 per cent ofthe employees report that their supervisors express appreciationmore than occasionally.

Giving staff the opportunity to contribute to a company's growthand development through hard times like the recession willmotivate people and give them a role in securing their own futureand careers. People stay in a job because they feel good aboutthemselves and their work. No one does this if they're just sloggingthrough - no matter how much they are paid.

MARGARET JACOBY, SPHRPresident, MJ Management Solutions, Inc.

Contact by email at: [email protected] more at: www.mjms.net

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


Oil Barron BulletinSPECIAL ADVERTISING FEATURE

Let’s talk about a subject which plagues everyone, corrosion. A few years back the National Bureau of Standards now called the National Institute of Standards and Technology, did a study and estimated that the annual costs associated with corrosion in the United States was between $9 billion and $90 billion. These figures have been affirmed by various organizations as well as by theNational Association of Corrosion Engineers. So as you can see, corrosion is a major problem for us all. In order to understand corrosion,we must first understand what corrosion is. As stated in the Corrosion Engineering Handbook (second addition) on the Fundamentals ofMetallic Corrosion, by Philip Schweitzer, “Corrosion is the degradation of a material’s properties or mass over time due to environmentaleffects”. When a material corrodes it elements are basically returning to their natural state. These elements turn into oxides, sulfides orother basic metallic compounds.

All metals corrode (unless present in an inert atmosphere or vacuum environment), both ferrous and non-ferrous alike. It is not the scopeof this article to go in-depth into the various forms of corrosion; however I will list them for your future reference. A more in-depth study ofthese forms of corrosion can be found in the before mentioned reference.

• Pitting• Galvanic corrosion• Uniform corrosion• Stress corrosion cracking• Intergranular corrosion• Crevice corrosion• Biological corrosion• Selective corrosion• Erosion corrosion

Let’s learn about the various forms of corrosion that machine shops and manufacturing companies alike deal with regarding the use ofmetalworking fluids. These forms of corrosion can comprise the following – Pitting, Galvanic, Biological corrosion and in the aerospacesector, Stress corrosion cracking (SCC). Many factors can induce these forms of corrosion. An example would be the result that ametalworking fluid with an excessively high pH factor would have on Aluminum, such as Pitting and Galvanic Corrosion/AluminumStaining. Biological corrosion induced by a microorganism’s metabolic activity, can cause corrosion by forming various acids in the bulkmetalworking fluid itself, or by attacking the metals surface directly via bio-films. Stress corrosion cracking takes place when variouschemicals capable of causing SCC attack the metal surface. An example of a “capable chemical”, in this case Chlorinated Paraffin foundin various MWF’s, coming in contact with Titanium can induce Hydrogen Embrittlement. This corrosion takes place when hydrogen formson the metal surface under heat and pressure, forming a hydride phase, thus allowing hydrogen to enter into the Titanium alloy. So unlessyou’re going to live in a vacuum, we’re all going to deal with corrosion at some time in our lives. Boy! Where are the Rust-eze guys whenyou need them?

Stay tuned for more useful coolant tips, from The Coolant Guy!

BRETT REYNOLDS, “The Coolant Guy” works for Blaser Swisslube Inc. If you would like more uinformation regarding metalworkingfluids, or would like to find out more information about Blaser metalworking fluid products, please contact Brett at 801.722.4095 orvia email at [email protected]. The Oil Baron Bulletin is not affiliated with Blaser Swisslube Inc. or its subsidiaries.Learn more at: www.blaser.com and [email protected]

VOLUME 11:

This Corrosionby BRETT “THE COOLANT GUY” REYNOLDS, CMFS

We are here to help youboost your productivity.

THE COOLANT.

Blaser Swisslube Inc.Goshen, New York 10924, Phone 845-294-3200, www.blaser.com, [email protected]

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There are many similarities between building and positioning an armyfor battle and building and positioning a business for long-term success.There are also many risks that both face and must overcome. Just like a good general, business owners constantly need to evaluate and takecalculated risks. Whether you’re on the battlefield, or on the shop floor,there’s one risk in particular that stands out and can mean the differencebetween success and failure – the risk of concentrations.

Concentrations are common in business and take many forms;Concentrations of sales to a major customer, a concentration servingprimarily one industry, concentrations in geographies, or concentrationsin a core competency. While common, concentrations are the mostsignificant risk for a small to medium sized business and must bemanaged accordingly.

EARLY ON – CONCENTRATIONS CAN BE YOUR FRIENDA common strategy in the board game Risk is to concentrate your armieson one front and slowly build up your defense. Early on, this strategy canlead to a position of strength. Focusing your efforts on one area allowsyou to fend off advancing armies and survive the early battles. Is thisstrategy much different than the approach a small business owner takesearly in the life of their business? Most businesses get their initial bigbreak from being closely connected to a key customer. They bet theirchips on one significant relationship and build a core competency bybeing very adept at meeting the wants and needs of that customer. Thiscustomer can be the springboard for the business, and one that sustainsthe business in its formative years. In many instances, this customerrelationship continues to expand and remains the driving force in thebusiness for years to come.

Feature Story//PrecisionNews

Concentrations–

AGame of RiskSTORY BY BRENT TERHAAR

We’ve all played it. The world map as the game board. The placement of each army on their respective continent. Assembling the cavalry, artillery, and infantry figurines preparingfor battle. Believing your strategy is the one that will get you tothe ultimate goal – World Domination! Let’s face it, playing theboard game Risk brings out the Napoleon in all of us.

OVER TIME – CONCENTRATIONS INCREASE RISKIn the game of Risk, keeping a static positionleaves an army vulnerable and susceptible toattack on multiple fronts. Armies that are welldiversified and mobile can easily find chinks inthe armor of an overly concentrated adversary.In business, concentrations also create risksthat grow over time. What happens if a keycustomer decides to consolidate suppliers(especially if you have had a service issue orsome sort of hiccup in the relationship)? Whathappens when the customer’s industry goesthrough a cyclical downturn or changes itssupply chain strategy? What happens whenthat customer decides to pay in 90 days versus30? What happens when your salesman thathas the strong customer relationship decides toleave and join a competitor? All of these canhave dire consequences for a small business.

There are collateral consequences to theseconcentrations as well. Business concentrationsnot only increase risk to the business owner,they increase the risk to outside lenders orpotential buyers of the business. Lenders willlimit credit to mitigate their risk, and potentialbuyers will likely lower their offering price (orwalk away from the deal altogether) if theydeem the risk to be too high.

continued on page 32


Building a Better Business In order to build a healthy and sustainable business, a business owner must grow profits, build value, reduce risk and plan for succession. Learn the fundamentals of building a better business in this four part series developed for business owners. Each session covers a different phase of development and builds on the previous session:

Financial Health Market Growth Leadership Development Operations Execution

Leave each session ready to implement, not plan:

Build a financial model that non-financial leaders understand and drive

Increase activity with existing customers Develop new markets Develop key leadership roles and teams Translate strategy into short-term action

plans

Who should attend Development series is ideal for owners and leadership. For maximum interaction, attendance is limited to the first 8 companies with no more than 3 individuals per company. Facilitators CliftonLarsonAllen Industry Specialists: 2 Per Session Financial, Operational, & Supply Chain Experience

Event Information

Dates:

Scheduled with enough time apart to get traction, but close enough together to create momentum. Tuesday, September 18, 2012 Financial Health Tuesday, October 30, 2012 Market Growth Tuesday, December 18, 2012 Leadership Development Tuesday, January, 29, 2013 Operations Execution

Time: 8:00 – 8:30 a.m. — Registration 8:30 a.m. – 4 p.m. — Session Lunch to be provided

Location: CliftonLarsonAllen 1201 South Alma School Road Suite 14000 Mesa, AZ 85210-2096

Fee: $800 per session – 1st participant $600 per session – Additional participants Register for one or multiple sessions

RSVP: Register by September 4th Contact Marilyn Granados at [email protected] or 480-615-2300.

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A SPECIAL INVITATION:

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arizonatooling.org / 19

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Cost analysis is the most important aspect of a company’s financial condition. Without a firm handle on costs, profitable selling prices cannot be establishedwhich cut to the core of the existence of the company. Most companies havesome kind of cost analysis system in place from the rudimentary to the mostcomplex software and systems money can buy.

STORY BY DAVID SENKFOR


Why Costing Isn’tJust the Most Important Thing, It’s the ONLYThing

purchased cost, labor rates and shipping. Others are indirect such as thecost of capital, overhead and utilities. These are just the tip of the iceberg.A company can spend an almost unlimited amount of money trying tonail down these costs that, in turn, add additional costs to be accountedfor. It is incumbent upon the business owner to determine the degree ofcertainty that allows them the level of comfort to properly use theinformation.

WHAT INFORMATION IS IMPORTANT?Simply stated, any cost that materially affects the total cost should beobtained. But, what is “material”? Does the cost of the trash pickup affectthe cost? Yes, but probably not materially unless large amounts of trash areproduced during the production or execution of the product or service.

THE SERVICE INDUSTRYFor service industries such as lawyers and accountants, the major costsinvolved will be salaries/labor hours, some incidental materials,overhead, out of pocket client advances, office space rental/utilities andpossible issues with buyouts/pensions/profit sharing. There are certainlyother costs but the question is “are they worth pursuing”?? It is doubtfulbut there are some offices that will try. To establish a cost for a service, itis a simple calculation based on the amount of time spent times the laborrate for the individual plus direct expenses that can be attributed to thisparticular service plus some allocation of the indirect costs usually basedon labor hours/department or other relevant divisor for the costs.

THE MANUFACTURING INDUSTRYHowever, for manufacturers it is a bit more complex. While some of thesame factors are involved such as labor rates, hours and overhead, thereare numerous ways of allocating these costs.

continued on page 32

COSTING 101It is my pet peeve that some companies do not have any sort of cost system and no oneincluding the owner truly knows what theproduct costs. Obviously, they know when theiraccountant totals things up for the year but thatreally ain’t getting it done.

In the most simplistic terms, for a company toshow a profit, the product or service it providesmust be sold for more than it costs. Trite buttrue. I’ve seen companies that literally toss apart into the air and can “tell” how much it costsor what the final selling price should be. Not tooscientific and the few who used this “process”are out of business. Others spend thousandsand thousands of dollars chasing down theminutest costs and then not even using theresults. They set up massive standard costsystems that do not represent their actual costsand sell their parts or services at some arbitrarymark-up that may or may not even garner themany profit. They find out at the end of themonth or year when the accounting snapshot is taken how well they have or have not done.

You would think that it is easy to capture thecosts that go into the production of a service ormanufactured part. Costs, however, come inmany flavors and types. Some are direct such as

Generally speaking, the depth and scope of the costing is relative to the size of the company – larger companies have more robust systems. That said, anysize company must gather solid and representative data to properly account for what the product costs.


Say your company purchases a newpiece of equipment from a majorcatalog company thinking it was state-of-the-art product with all required safety guards.Yes, it has a safety guard on the motor andpulley system; however, it was not a fully-enclosed safety guard. Under the OSHAsafety rule, if moving machine parts have the

potential to cause severe workplaceinjuries, such as crushed fingers orhands, amputations, burns, orblindness, you are required toguard the area despite what themanufacturer constructed.

When buying used equipment,check for outdated safety devices prior

to purchase. These items may no longer beup to code. There is no statute that exemptsyour company if you buy unsafe machinery.You may want to check with your companysafety manager or local OSHA ComplianceOfficer prior to purchasing any equipment.

OSHA Standard General MachineSafeguards 29 CFR 1910.212One or more methods of machine guardingmust be provided to protect the operatorand other employees in the machine areafrom hazards such as those created by pointof operation, ingoing nip points, rotatingparts, and flying chips and sparks. Examplesof guarding methods are barrier guards, two-hand tripping devices, and electronic safetydevices. Guards must be affixed to themachine where possible and securedelsewhere if for any reason attachment to

the machine is not possible. The guard mustnot act as an accident hazard in itself.

Point of Operation“Point of Operation” is the area on amachine where work is actually performedon the material being processed. The pointof operation of machines whose operationexposes an employee to injury must beguarded. The guarding device must bedesigned and constructed to prevent theoperator from having any part of his body inthe danger zone during the operating cycle.Special hand tools for placing and removingmaterial must permit easy handling ofmaterial without the operator placing a handin the danger zone. Such tools must nottake the place of fixed guards and can beused only to supplement the protectionprovided.

Note: Twenty-five states, Puerto Rico andthe Virgin Islands have OSHA-approvedState Plans and have adopted their ownstandards and enforcement policies. For the most part, these States adopt standardsthat are identical to Federal OSHA.However, some States have adopteddifferent standards applicable to this topicor may have different enforcement policies.

JAMIE BEAUVAIS is Safety Coordinatorat Micro-Tronics, Inc.

Learn more at: www.osha.govReference: OSHA Standard General MachineSafeguards 29 CFR 1910.212

Is the machinery you are buyingOSHA compliant?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shop FloorNEWS FROM THE FRONT LINES

by JAMIE BEAUVAIS, SAFETY COORDINATOR, MICRO-TRONICS, INC.

Are you purchasing new or used equipment for your company?Does it comply with OSHA Standard General MachineSafeguards 29 CFR 1910.212?

fyi:Twenty-five

states, Puerto Rico and the Virgin Islands have OSHA-approved

State Plans - OSHA

32 /

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L.A. SPECIALTIES, INC.4223 North 40th Avenue, Phoenix, Arizona 85019

[email protected] • www.laspecialties.com

Please feel free to contact us. We will be happy to assist.

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Are you looking for?ELECTROLESS NICKEL

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CHEM FILM - CLEAR OR YELLOWCOPPER or CHROME PLATING

POWDERCOATINGPOLISHING

GLASSBEADINGVIBRATORY DEBURRING or FINISHING

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2012 ATMA BOARD OF DIRECTORS

PresidentDANTE FIERROSNichols Precision

Vice PresidentDAVID LAIR

Dynamic Machine & Fabricating

Executive DirectorCHRIS MIGNELLA

TrusteeMARK WEATHERS

Excaliber Precision Machining

SecretaryJOHN O’LEARY

Arizona Industries for the Blind

TreasurerGREG CHAMBERS Noranco Jet Processing

BOARD MEMBERS

Mark Travis Micro-Tronics, Inc.

John RaycraftArizona Precision Industrial

Jeremy LutringerUnique Machine & Tool

Gary WatkinsMarZee

Joseph KoenigExactitude, LLC

Bruce TreicherZircon Precision

Associate Member LiaisonKerry Vance

Consolidated Resources, Inc.

ATMA AmbassadorMaxine Jones

[email protected]

Arizona Tooling & Machining AssociationA Chapter of the National Tooling

& Machining Association

P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.388.5752

[email protected]

THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

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WEBSITES THATWORKFOR YOUArizona Chapter Websitearizonatooling.org

Arizona Commerce Authority -Job Training Grant Applicationazcommerce.com/workforce

Arizona Department of Educationazed.gov

Arizona Manufacturers Councilazchamber.com/amc

Arizona Manufacturing Apprentice ProgramAzMap.org or [email protected]

Arizona State UniversityMechanical & Manufacturing Engineering Technologypoly.asu.edu/technology/mmet/

City of Phoenix – Community & Economic Development Programphoenix.gov/ECONDEV/index.html

EVIT (East Valley Institute of Technology)evit.com

GateWay Community Collegegatewaycc.edu

Greater Phoenix Chamber of Commercephoenixchamber.com

Maricopa Community Collegesmaricopa.edu

Maricopa Workforce Connectionmaricopaworkforceconnection.com

Mesa Community Collegemc.maricopa.edu

National Institute for Metalworking Standardsnims-skills.org

NTMA - National Tooling & Machining Associationntma.org

NTMA - San Diego Chapterntmasandiegochapter.org

NTMA - San Francisco Chaptersfbantma.org

NTMA - North Texas Chapterntmanorthtexas.org

National Robotics Leaguegonrl.org

One Voice Advocacymetalworkingadvocate.org

U.S. Department of Labordol.gov


Hein Tran 3D Machine & Tools 480-329-8254

Dave Wright Accuwright 480-892-4595

Sal Kielbus Aerospace Contacts, LLC 480-967-1025

Chuck Eriksen Allied Tool & Die Company, LLC 602-276-2439

John Raycraft Arizona Precision Industrial, LLC 480-785-7474

Charles A. Van Horssen Axian Technology, Inc. 623-580-0800

John O’Leary AZ Industries for the Blind 602-269-5131

Paul Bowman B3 Precision, LLC 480-250-3366

Kevin Burbas B&B Tool, Inc 520-397-0436

Jeff Buntin Barnes Aerospace - Apex Mfg. Div. 602-305-8080

Norela Harrington Bent River Machine, Inc. 928-634-7568

Eric Stroot Bolt’s Metallizing 602-244-2432

Misty Curry C & W Manufacturing 602-437-2929

Keith Adams C.G. Tech, Inc. 623-492-9400

Greg Gaudet CAD Tools Company, LLC 480-753-4290

Joe Cassavant, Jr. Cassavant Machining 602-437-4005

Steve Schwartzkopf Chips, Inc. 602-233-1335

Ron Gilmore Continental Precision, Inc. 602-278-4725

Darrel Lilly Creative Metal Concepts 602-272-1110

Allen Kiesel Creative Precision West 623-587-9400

David Lair Dynamic Machine & Fabricating 602-437-0339

Diana Buchanon-Lovett Eclipse Carbide, Inc. 480-214-3719

Grant Evans Evans Precision Machining, Inc. 623-581-6200

Joseph J. Koenig Exactitude, LLC 602-316-6957

Mark Weathers Excaliber Precision Machining 623-878-6800

Jeff Hull Foresight Technologies 480-967-0080

Tim Malin Helm Precision, Ltd. 602-275-2122

Jeremy Schaulk Hi-Tech Machning & Engineering 520-889-8325

Don Theriault Industrial Tool Die & Engineering 520-745-8771

Joseph Sirochman JPS Manufacturing 480-367-9540

Jeff Barth JWB Manufacturing 480-967-4600

Jim Carpenter Kimberly Gear & Spline, Inc. 602-437-3085

Don Kammerzell K-zell Metals, Iinc. 602-232-5882

Matt Kalina LAI International, Inc 480-348-5942

Ernest Apodaca Layke, Inc. 602-272-2654

John Lewis Lewis Aerospace 623-581-0764

Michael C. Majercak, Jr. Majer Precision 480-777-8222

Edward Wenz MarZee, Inc. 602-269-5801

Arle Rawlings Mastercraft Mold, Inc. 602-484-4520

Paul Clark Metal Spinning Solutions, Inc. 480-899-0939

Jeff Meade Metalcraft 480-967-4889

Joe Tripi Micropulse West 602-438-9770

Mark Travis Micro-Tronics, Inc. 602-437-8995

Mark Lashinske Modern Industries, Inc. 602-267-7248

Phillip LoCascio National Aviation 480-966-1097

John Anglin Nelson Engineering 602-273-7114

Dante Fierros Nichols Precision 480-804-0593

Greg Chambers Noranco Jet Processing 623-869-6749

John Maris NorthStar/D-Velco 602-275-4406

Tom Osborn Osborn Products, Inc. 623-587-0335

REGULAR MEMBERS

Jennifer Ayres Phoenix Analysis & Design Tech. 480-813-4884

Steve Macias Pivot Manufacturing 602-306-2923

James Buchanan Powill Manufacturing & Eng, Inc. 623-780-4100

Ilene Price Precise Metal Products Co. 602-272-2625

Roy Stenger Precision Aerospace 602-352-8658

Tony Costabile Precision Die & Stamping, Inc. 480-967-2038

Michael Dailey Prescott Aerospace, Inc. 928-772-7605

Tyler Crouse Pro Precision 602-353-0022

Zach Wilsterman Profile Tool & Engineering 480-894-1008

John Bloom R & D Specialty/Manco 602-278-7700

Paul Shelton Shelton Industries 520-408-8026

Mark Willmering Sonic Aerospace, Inc. 480-777-1789

Jeff Gaffney Southwest Swiss Precision 602-438-4670

Steven Yeary Southwest Turbine, Inc. 602-278-7442

Mike Gudin Southwest Water Jet 480-306-7748

Ruben Cadena State Industrial Products, Inc. 602-275-0990

Dennis Miller Summit Precision, Inc. 602-268-3550

Scott Higginbotham Sun Grinding LLC 602-238-9595

Craig Berland Systems 3, Inc. 480-894-2581

Karl Szanto Tech Mold 480-968-8691

Todd Aaronson TMA Precsion Tube 623-221-4922

Jacque Cowin Tram-Tek, Inc. 602-305-8100

Walt Ahland TriPlex, LLC 480-930-3493

Rick Lorenzen Tri Star Design & Mfg. 480-345-1699

Jeremy Lutringer Unique Machine & Tool Co. 602-470-1911

Bill Ankrom Vitron Manufacturing, Inc. 602-548-9661

Robert L.Wagner Wagner Engineering, Inc. 480-926-1761

Denise & Bob Wright Wright Prototype 623-825-8671

Bruce Treichler Zircon Precision Products 480-967-8688

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

ATMAEVENTS INSEPT/OCT2012Safety Team Meeting > 9/11 @ 11:30am (MicroTronics)

Membership/Mktng & Program Mtng > 9/13@ 4:00pmFiesta Inn/Raintree Room 4:00pm - 5:30pm

Board of Directors Mtng > 9/18 @ 4:00pm (MicroTronics)

Member Appreciation and Dinner Meeting > 9/26 @ Airport Hilton 4:30-7:30pm

Precision News Articles/Ads Due > 10/01

Luke Tour > 10/11 @ 2:00pm

Membership/Mktng & Program Mtng > 10/18@ 4:00pmFiesta Inn/Raintree Room 4:00pm - 5:30pm

NTMA Conference > 10/22

Board of Directors Mtng > 10/30 @ 4:00pm (MicroTronics)

Save the Date > 12/05Holiday Dinner @ St. Mary’s Food Bank

For more information contact Chris Mignella at:[email protected]


ASSOCIATE MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

Linda Daly A 2 Z Metalworker 602.412.7696

Richard Short Adams Machinery 480.968.3711

Greg Whelan Arizona CNC Equipment 480.615.6353

John Anderson ATS Industrial 602.276.7707

Vincent Thelander Bank of America Merrill Lynch 602.523.2044

Howie Basuk Barry Metals 602.484.7186

Joe Ciancio Bralco 602.252.1918

Marc Bissell CadCam/Geometric 480.222.2242

James Burriss ChemResearch Co., Inc. 602.288.0394

Kerry Vance Consolidated Resources 623.931.5009

Cindy Stewart Creative Promotions 480.839.9511

Lou Gallo DDi - Solidworks 602.241.0900

Randy Flores D&R Machinery 480.775.6462

Steve Warner EMJ Metals 602.272.0461

Mickey Gartman Gartman Technical Services, Inc. 602.788.8121

Bill Herbst Global SuperAbrasives 413.231.6530

Jackie Bergman HUB International 602.749.4190

Anna-Lena Seedhill IFLEX Resource Management 480.429.4508

David Cohen Industrial Metal Supply 602.454.1500

Tim Kloenne Klontech Industrial Sales 480.948.1871

Barry Armstrong L.A. Specialties 602.269.7612

David Hopkins CliftonLarsonAllen, LLP 480.615.2300

Bob Von Fleckinger Leavitt Group 602.264.0566

Jeff Trimble Magnum Precision Machines 602.431.8300

David Gundersen Makino, Inc. 602.228.0347

Michael Biesk Marshall Tool 602.269.6295

Thomas Moore Moore Tool & Equipment 602.455.8904

Glen Zachman North-South Machinery 602.466.2556

Pete Hushek Phoenix Heat Treating 602.258.7751

Scott Sherman Phoenix Metal Trading 602.257.4660

Jim Perlow Quality Advisory Services 602.910.1510

Arlene Helt Ryerson-Phoenix 602.455.3386

Ron Swartzbaugh S&S Machinery 602.714.0116

Jane Rousculp Samuel Aerospace Metals 602.721.0176

Frank Encinas Semiray 602.275.1917

Russ Kurzawski Star Metal Fluids LLC 602.256.2092

David Senkfor Top Gun Consulting 602.510.5998

John Drain Tornquist Machinery Co. 602.470.0334

Greg Burke TW Metals 602.864.0014

Doug Pratt Ulbrich Stainless Steel & Spec. 203.234.3464

Daniel Franks Wells Fargo Bank 602.522.7805

Greg Kolton Bank of Arizona 480.459.2826

Jeff Anderson National Bank of Arizona 623.872.2546

Jackie Bergman HUB International 602.749.4190

Bennet Cromer Federated Insurance 501.952.9391

Jon Gale CliftonLarsonAllen, LLP 480.615.2300

Ward Hickey Heritage Bank 602.852.3462

David Pettycrew Republic Indemnity 602.242.4602

Steve Piotter MSC Industrial Tool 480.755.0415

MANYTHANKSTO OUR 2012 ATMA VALUED SPONSORS:

ARIZONA SPONSOR MEMBERS

Get Turned-Onto the ATMA!Contact Chris Mignella at:[email protected]

MANY THANKSTO OUR 2011 ATMA VALUED SPONSORS!

MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS!MAY5/11 Safety Meeting (General Safety Standards) 11:30

at Phoenix Heat Treat, 2450 W. Mohave, Phoenix

5/12 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe

5/17 Board of Directors Meeting 11:30-1:00 atMicro-Tronics, 2905 S. Potter, Tempe, 85282

5/25 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

JUNE6/08 Safety Meeting (General Safety Standards) 11:30

at Leavitt Group, 919 N. 1st St., Phoenix


































/

Welcome!NEW REGULAR AND ASSOCIATE MEMBERS


Creative Metal Concepts Mr. Darryl Lilly4229 N. 40th AvenuePhoenix, AZ 85019602.272.1110sales@fastarchofamerica.comwww.fastarchofamerica.com(New Regular Member)

Bralco MetalsMr. Joe Ciancio929 E. Jackson StreetPhoenix, AZ 85034602.252.1918 office602.252.7813 [email protected](New Associate Member)

Global SuperAbrasives, LLCMr. Bill Herbst1835 E. 6th St, #23Tempe, AZ 85281413.231.6530 cell888.586.8783 [email protected](New Associate Member)

Bank of America Merrill LynchMr. Vince Thelander201 W. Washington St.Phoenix, AZ 85004602.523.4181vincent.thelander_iii@baml.comwww.bankofamerica.com(Reinstated Associate Member)

YOUR NEWTOOL OFTHE TRADE.PRECISION NEWS READERS ARE KEY DECISION MAKERS THAT YOU AS AN ADVERTISERWANT TO REACH. OUR READERSWANT AN EDGE IN A CONSTANTLYEVOLVING INDUSTRY AND THEYFIND IT IN PRECISION NEWS!

Let your ad be a call to action!Contact Precision News today for more details at:[email protected]

PrecisionNewsTM

Contact the Arizona Tooling and Machining Association and discover howyou can put work unique skill-set to work in Arizona and give your companythe Competive Edge.

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

[email protected]



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A CUTABOVE.We have the capabilities and the skills to get any job done.

CNC Machining5-Axis MachiningMulti-Spindle MachiningLights Out MachiningBlade and Blisk MachiningElectro-Discharge MachiningLaser MachiningWaterjet MachiningSheet Metal FabricationGun DrillingJig Bore/Jig GrindHydroformingCylindrical GrindingSurface GrindingCurvic GrindingTool GrindingThread GrindingCreep Feed GrindingChemical Milling

Swiss TurningMicro-MachiningHoneycomb SealsTube BendingHigh Speed StampingSand CastingInvestment CastingMolded RubberPlastic Injection MoldingRapid PrototypingBalancingElectromechanical AssemblyClean Room AssemblyWire Harness ProductionMIG/TIG WeldingResistance WeldingHydrogen BrazingVacuum BrazingLaser Welding

Electron Beam WeldingHeat TreatingVacuum Heat TreatNitridingShot PeeningCryogenic ProcessingPlasma Spray CoatingHVOF CoatingDiffused Aluminide CoatingElectroless Nickel PlatingHard Chrome PlatingCadmium PlatingSilver PlatingCopper PlatingAnodizingPhosphatingBlack OxideDri-LubePainting


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Sometimes, a company will allocate them based on the number of piecesor parts produced or sometimes based on labor or machine hours usedduring the production process. Other methods include the use of a“standard” cost regardless of the actual cost involved. As long as thestandard cost is monitored and closely matches the actual costs, thismethod can be used. However, some testing of the system is critical tokeeping the numbers “honest”.

SOFTWAREMaking matters even more complicated are the plethora of software outin the world that these costs are coagulated with. Most are tied into thegeneral accounting systems of the companies and are probably tied tothe production scheduling system as well. What this means is that somepre-set and possibly imperfect allocation methods may be used that may or may not be appropriate for a particular company. I have seencompanies implement what may seem to be the “best” software only tofind that THEY must change their methods of operation to conform tothe software. That’s about the time I try to find the plug to pull on thecomputer.

THE BEST ADVICEWhere does this leave a fledgling company in terms of what method,process or tools to use to calculate costs?? My best advice is to consultwith a competent accountant who has experience with a similar typecompany. There may be some experimentation involved in terms ofdevelopment and execution of the system. However, there will come atime when quality data is being collected and recorded that covers thegreatest part of the true cost of the item or service.

PRICINGOnce the costs have been collected, the task of pricing begins. Pricingcan be based on a number of factors only one of which is the actual costs as they have been recorded. Market pricing, profit margin basis orstrict mark-up factors may be used to determine the final pricing of aparticular service or item. Others may rely upon “seat of the pants”instinct to price parts. Not too scientific, but it can work if the person is experienced.

MARKET BASEDMarket based pricing disregards other factors and relies upon “what themarket will bear” in terms of the final pricing. Obviously, this kind ofpricing can be dangerous to maintenance of profit margins as theseprices are based on other companies cost not yours. If this type ofpricing is used, one must be extremely cognizant of the actual cost youare booking. Hopefully, the profit margin is sufficient and satisfactory toyou. The other problem is that if it is not or you would like to raise theprice, it is extremely difficult or impossible to do so.

PROFIT MARGIN BASEDProfit margin pricing basically works by you setting the amount of profitmargin you want and then adding this number to the cost to calculatethe final price. The basis for the profit margin is yours to decide but isusually based on the knowing all the costs and then just adding in themargin you want. Clearly, this is a simple process but can have the effectof pricing yourself out of the market by adding in too much margin.

MARK-UP BASEDUsing a basic mark-up method, the various costs along the way aremarked up by possibly different amounts taking into account differentfactors for each of the costs. The labor could be marked up one amount,machine hours by another and the rest of the costs by other amounts.The mark-up can be the same as well. This method allows the fine-tuning of the pricing taking into account factors that affect each of thecomponents. You can choose to slice and dice the numbers any numberof ways to achieve the final price. This is the most complex method butalso allows the most flexibility with regards to individual cost drivers.

Costing Is The ONLY THING! Now that you know what to look for, you must continue to keep the gathering of costs in the forefront of youractivities to make cost collection “the only thing” that must occurcorrectly every single day to maximize your profitability.

CONCLUSIONIn the end, pricing will be dictated by a number of factors that willalways include the “market based” price. However and hopefully, yourparticular company will be selling not based on price alone but also withquality and delivery considered.

Next time you look at a job or service at the end of the production cycle,take a hard look at the costs and ask yourself if ALL of the “material”costs have been considered and that the net profit you are seeing is real.

DAVID SENKFOR is the the owner of TopGun Consulting. He canbe reached at 602.510.5998 or [email protected]

Learn more at: www.topgunconsulting.net


Why Costing Isn’t Just the Most Important Thing, It’s the ONLYThingcontinued from page 17

In the end, pricing will be dictated by anumber of factors that will always includethe “market based” price.



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PrecisionNews//NTMA-SAN DIEGO CHAPTER

MEMBERLISTINGS

Todd C. Lawson Academy Machine Products 760.439.0109

Jodi Deane Advanced Maching and Tooling 858.486.9050

Steve Doda* Aerotek Commercial Staffing 619.278.3014

David Stella* Aerotek Commercial Staffing 619.278.3014

Sean Tillett Alphatec Spine 760.494.6774

Peter Neville B&H Tool Company Inc. 800.272.8878

Lyle Anderson C&H Machine and EDM Services 760.746.6459

Margarita Brear Compucraft Industries, Inc. 619.448.0787

Michael J. Brown Computer Integrated Mach., Inc. 619.596.9246

Melinda Coldwell Cornerstone Machining, Inc. 760.727.5228

Erich Wilms Diversified Tool & Die 760.598.9100

Alex Fima Directed Mfg. 512.355.1360

Donovan Weber Forecast 3D 760.929.9380

Andrew Allen Henry Machine, Inc. 760.744.8482

Jim Piel J I Machine Company, Inc. 858.695.1787

Joel Schuman JS Manufacturing 760.940.1322

Heather Russell K-Tech Machine, Inc. 760.471.9262

Cliff Manzke Manzke Machine, Inc. 760.504.6875

Russell Wells Sr. MarLee Manufacturing, Inc. 909.390.3222

Tony Martindale Martindale Manufacturing Co. 760.744.3078

Mark Rottele Roettele Industries 909.606.8252

Scott Cormony Waterjet West, Inc. 760.471.2600

Hernan Luis y Prado Workshops for Warriors 619.550.1620

Steve Grangetto 5th Axis 858.505.0432

*National Associate Members

REGULAR MEMBERS

FOUNDING PARTNERSGlenn Van Noy Champion Risk and 760.419.1393

Insurance Services

Dave Stanton Digital Dimensions, Inc. 858.279.2557

Gail Houser National Tooling & 602.758.6912Machining Assoc.

Mark Selway Selway Machine Tool Company 888.735.9290

NTMA San Diego ChapterUPCOMING EVENTSManufacturing Issues and Legislation UpdateSeptember 18th @ 5:30pmPresented by Omar Nashashibi from the Franklin Partnership and Metal Working Advocate. Location to be announced.

Open Forum DiscussionNew pension and group insurance rules and how they will affect your business. October 25th @ 5:30pmPresented by Elizabeth Long and Noel Trias.

2012 BOARD OF DIRECTORS

PresidentTONY MARTINDALEMartindale Manufacturing

Vice President and TreasurerHEATHER RUSSELL

K-Tech Machine

SecretarySEAN TILLETTAlphatec Spine

MembershipMIKE BROWN

Computer Integrated Machining

Past PresidentMELINDA COLDWELLCornerstone Machining, Inc.

BOARD MEMBERS

Education Board MemberJohn Riego de Dios

Construction Tech Academy

Member at LargeCliff Manzke

Manzke Machine, Inc.

Chapter ExecutiveTammy Tillett

OUR MISSION“To form an alliance within the San Diego

region of the local machining and tool industry and to foster mutual success

through education, technology, opportunity sharing and act as one voice with the

government and the community.”

NTMA - San Diego Chapter348 Saratoga GlenEscondido, CA 92025Phone: 760.419.1393

ntmasandiegochapter.org

SAN DIEGOCHAPTER


A2Z METALWORKER • 47 •

1-888-726-6385 [email protected] www.samuel.com

WATER-JET CUTTINGProviding...Tighter Tolerances / Minimal Machining

Table Capacity of 120” Wide x 360” LongUp to 6” Thick Cutting Capacity

HIGH DEFINITION PLASMA BURNINGUp to 5/8” thk Stainless & 1 1/4” thk CarbonTable Capacity of 120” Wide x 390” Long

CONVENTIONAL PLASMA BURNINGUp to 6” Thickness Table Capacity of 132” Wide x 564” Long

Available Products...STAINLESS: 304H, 304L, 316L, 317L, 321, 347, 904L, 2205, 2507, 254-SMO, LDX 2101CARBON: A35, W44, 514, 516-70, 572-50, 588, API-2H-G50ALUMINUM: 5086, 5454, 6061, 7075, 7050, 2024

THK: 3/16” to 6” WIDTH: 48” to 120”

LENGTHS: 96” to 528”

Range of Sizes...

Value Added Services...LASER CUTTING, POLISHING, GRINDING, HEAT TREATING,SAW CUTTING, FORMING, ROLLING, SHEARING, BEVELING

PrecisionNews// NTMA INITIATIVES

Though most of our members are small- to medium-sizedcompanies, the power of the association can help you dobusiness like a large corporation.

REVENUE GROWTH• We organize regular business-to-business purchasing fairs,designed to operate like speed dating for suppliers. We invite100 or more buyers from large companies and then give youopportunities to briefly pitch your products and services. As aresult attendees leave with good contacts and solid leads,leading to increased business. Companies have been awardedmillions of dollars in contracts as a direct result of these events.

• We offer a program called Members First, designed to helpmembers turn to each other to meet needs. Perhaps your nextcustomer is an NTMA peer? Or perhaps an NTMA memberwould make an excellent vendor for you? Members First helpsmake the connections.

• By interacting with fellow members in your local chapter, youmay discover new business opportunities, or ways to worktogether with peers to increase business or market yourselvescooperatively.

COST CONTROL• We offer discount programs with several large suppliers(including Grainger, UPS and Yellow Freight), allowing you toleverage NTMA’s combined buying power for your own benefit.

• Our business insurance program keeps more money in yourpocket by offering a necessary product in a low-overhead, not-for-profit manner.

Our decision resources allow you to be smarter about howyou use your resources, resulting in greater efficiencies andlower costs. Learn more at: www.ntma.org/initiatives

How Can NTMA Help You Grow Your Business?Profitability grows when revenue increases and costs are controlled. NTMA can help you with both.

NTMAUPCOMINGEVENTS NTMA Purchasing Fair > October 22-23, 2012Location: Nashville, TN

NTMA 2012 Fall Conference > October 24-28, 2012Location: Nashville, TNVisit: www.ntma.org

NTMA - Manufacturing America’s FutureCall: 888.904.6727


PresidentTODD ELLARD

Manda Machine Company

Vice PresidentJEFF SPENCERClay Precision

TreasurerBARRON SMITHR.W. Smith Company

Chapter ExecutiveLISA ELLARD

TrusteeWAYNE APPLEGATE

Applegate EDM

BOARD MEMBERS

Mike BerdanBE Technologies

Frank BurchSouthern Machine Works

Bill WalterEllison Technologies

Micah EmbreyCNC Precision/Shamrock-Bolt

Don HalseyHalsey Manufacturing

Ray JonesMWI, Inc.

Pat McCurleyMidlothian Insurance

Karla ChandlerEducation Liason

“The Power of Connections”NTMA - North Texas Chapter

[email protected]: 214.536.4970 P.O. Box 541236

Dallas, TX 75354-1236

ntmanorthtexas.org

NORTH TEXASCHAPTER


Providing precision machining and fabricating of diverse parts and assemblies

Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries

Our Quality System is AS9100 B Compliant

Dynamic Machine and Fabrication Corp. andDynamic Centerless Grinding

3845 E. Winslow Ave., Phoenix, AZ 85040

(602) 437-0339(602) 437-8947 fax

www.dynamic-machine.com

Equipment Capacities range up to HS-4R HAAS 4-Axis Horizontal Milling Center @ 150” x 66” x 48” and Ikegai VTL CNC Lathe @ Ø 55” Diameter

Centerless Grinding Capacities ranges from Ø1/8” up to Ø1-1/2” in Lengths up to 14’ long and Ø1-1/2” to Ø 3” RD With Weight Maximum of 50#
















REGULAR MEMBERS ASSOCIATE MEMBERS

Larry Ellison AJR Metalworks, Inc. 214.352.3766

Tommy Thompson Bodic Industries 972.840.1015

Lewis Lance Bodycote Heat Treat 817.265.5878

Rick Blair Brook Anco Corporation 585.475.9570

Craig van Hamersveld Campat Machine Tool, Inc. 972.424.4095

Claudia Pautz Castle Metals 972.339.5000

Chris Simms Champion Cutting Tool 516.536.8200

Frank Vance Frank J Vance 972.255.3925

Norm Williamson H & O Die Supply, Inc. 214.630.6660

Mike Johns Haas Factory Outlet 972.231.2802

Stephen Draper Hartwig, Inc. - Texas 972.790.8200

Matt Curtis Hillary Machinery, Inc. 972.578.1515

Rod Zimmerman Iscar Metals, Inc. 817.258.3200

Randy Joyce Joyce Engraving Company, Inc. 214.638.1262

Curtis Dahmen Kaeser Compressors, Inc. 972.245.9611

Mark S. Holly Machinists Tools & Supplies 214.631.9390

Leland McDowell McDowell Machinery & Supply Co. 214.353.0410

Pat McCurley Midlothian Insurance Agency 972.723.5171

Nicki Smith MSC Industrial Supply 817.590.2637

Ray Jones MWI Inc. / Southwest Division 972.247.3083

Mike Chadick North Texas Precision Instrument 817.589.0011

Reed Hunt Reed Hunt Services, Inc. 817.261.4432

Scott Devanna SB Specialty metals 800.365.1168

Bob Severance Severance Brothers 972.660.7000

Alan VanHoozer Top Tooling of Dallas, Inc. 972.278.8300

Tom Beurkle Traxis Manufacturing 512.383.0089

Glenn Wise Wise Machinery, LLC 817.905.9473

PrecisionNews//NTMA-NORTH TEXAS CHAPTER

MEMBERLISTINGS

NTMA-NORTH TEXASMEETINGS & EVENTSThanks to Our January-August 2012 General Meeting Hosts:Manda Machine Co., Ellison Technologies, Advanced Technology Complex,Shamrock Precision, Southern Machine Works, Applegate EDM

Upcoming Events:September 27, 2012 – Annual Golf TournamentOctober 18, 2012 – DFW MoversNovember 15, 2012 - TBD

BILLOR MACHINE TOOL SERVICE

MANYTHANKSTO OUR NTMA-NORTH TEXAS SPONSORS:

Vincente Chan Aeroweld Technologies, Inc. 972.247.1189

Wade Whistler A.C.T. Precision Sheet Metal, Inc. 214.678.9114

Wayne Applegate Applegate EDM, Inc. 972.488.8997

Tony Woodall AST Waterjet 972.554.0383

Steve Ingersoll Bailey Tool & Manufacturing 972.974.8892

Michael Berdan BE-Technologies, Ltd. 972.242.1853

Christi Cameron Cameron Machine Shop, Inc. 972.235.8876

Jeff R. Spencer Clay Precision, Ltd. 903.891.9022

Joseph Lodor Commerce Grinding Company, Inc. 214.651.1977

Robert McNamara Davis Machine & Manufacturing 817.261.7362

Charles Gilbert DNS Tool Cutter Grinding, LLC 972.241.5271

Dena Kupiec Elijah Tooling, Inc, 940.591.1340

David Ellis Ellis Tool & Machine, Inc. 903.546.6540

Rudy D. Kobus Expert Tool & Machine, Inc. 972.241.5353

Monte Titus F& R Machine & Repair, Inc. 214.631.4946

Gary Fore Fore Machine Company, Inc. 817.834.6251

Mike Lee Fort Worth Centerless Grinding, Inc. 817.293.6787

Larry Borowski Greenslade and Company, Inc. 817.870.8888

Oscar Guzman Guzman Manufacturing 972.475.3003

David L. Hodgdon H. H. Mercer, Inc. 972.289.1911

Don Halsey, Jr. Halsey Engineering & Mfg., Inc. 940.566.3306

Cory Trosper K & D Tool & Die, Inc. 972.463.4534

Keith Hutchinson Lancaster Machine Shop 972.227.2868

Scott Cody LSC Precision, Inc. 940.482.9700

Sammy Maddox Maddox Metal Works, Inc. 214.333.2311

Todd Ellard Manda Machine Company, Inc. 214.352.5946

David Evans Manek Equipment, Inc. 903.439.6414

Rodie Woodard Maximum Industries, Inc. 972.501.9990

Woodrow W. Thompson Metal Detail, Inc. 214.330.7757

Allen Meyer Meyer Enterprises 972.353.9791

Eddie Steiner, Jr. O E M Industries, Inc. 214.330.7271

Morris Padgett Padgett Machine Tools, Inc. 254.865.9772

Troy Paulus Paulus Precision Machine, Inc. 940.566.5600

Joe O’Dell Plano Machine & Instrument, Inc. 940.665.2814

Bill Gilliland Quality Tool 972.221.0537

Matt Harrell Quickturn Technology, Inc. 469.643.5010

Barron Smith R. W. Smith Company, Inc. 214.748.1699

Mike Embrey Red Rock Industries 940.665.0281

Gary Embrey Shamrock Precision 972.241.3931

Frank Burch Southern Machine Works 580.255.6525

John Anselmi Sunbelt Plastics Inc. 972.335.4100

Marshall B. Taylor T & K Machine, Inc. 903.785.5574

Jake Bailey Tower Extrusions Fabrication 940.564.5681


PrecisionNews//NTMA-SAN FRANCISCO CHAPTER

MEMBERLISTINGS

Jimmy Kim 3D Access Industries 510.668.1248

Ron Wegstein Advanced Grinding, Inc. 510.536.3465

Tim Green All Weld Machine & Fabrication Co. 408.946.5890

Fred Matter Alloy Metal Products 925.371.1234

Robert P. Dathe Benda Tool & Model Works, Inc. 510.741.3170

Jim Deemer California Brazing 510.284.0283

Tony Castruccio Custom Gear & Machine 925.455.9985

Dan McEachern Dan McEachern Company 510.532.8228

Frank Dommen Die & Tool Products Inc. 415.822.2888

Felix Q. Oramas, Jr. E R C Concepts Company, Inc. 408.734.5345

Don Castillo FM Industries, Inc. 510.668.1900

Alan Kalman Kalman Manufacturing 408.776.7664

DeAnna Godfrey McNeal Enterprises, Inc. 408.922.7290

Karen Myhre R.M. Machining, Inc. 650.591.4178

Mark Serpa Silicon Valley Manufacturing 510.791.9450

David J. Buttner Thermo-Fusion, Inc. 510.782.7755

Doug Wright True-Tech Corporation 510.353.1000

Bruce Tschida Tschida Engineering, Inc. 707.224.4482

Dane Madsen West Valley Precision, Inc. 408.519.5959

Ken Fusselman Perry Tool & Research Inc. 510.782.9226

REGULAR MEMBERS

Welcome!SAN FRANCISCO NEW MEMBERS

California Brazing

37955 Central CourtNewark, CA 94560Phone: 510.742.7114

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4050 Technology PlaceFremont, CA 94538Phone: 510.353.1000

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Education DirectorDON CASTILLOFM Industries

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CommunicationsNILS KJELL

OUR MISSION“Our mission is the advancement of

machining and manufacturing businesses in the Bay Area, through collective effort

and membership alliances.”

NTMA - San Francisco Bay Area950 Terminal Way

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UPCOMING EVENTSNTMA - San Francisco Bay Area

Manufacturing Issues and Legislation UpdateSeptember 20th @ 5:30pm

Presented by Omar Nashashibi from the Franklin Partnership and Metal Working Advocate.

Selway Machine Tool, Union City

Storm Water Permit PresentationOctober 18th @ 5:30pm

Presented by James Simonelli, President, CA Metals CoalitionThis new regulation will affect every machine shop in the state.

Selway Machine Tool, Union City

Haas HTECH ConferenceOctober 27th @ 7:30am - 4:30pm

Laney College, OaklandVisit www.HTECNetwork.org

SAN FRANCISCOCHAPTER


Manufactured with Pride in America!��

Industries Served:• Automotive • Aerospace

• Medical • Firearms• Dept of Defense • Electronics

2440 Cades Way, Vista, California 92081phone: 760.727.5228 fax: 760.727.0799

www.cornerstonecnc.com



Manufactured with Pride in America!��

Industries Served:• Automotive • Aerospace

• Medical • Firearms• Dept of Defense • Electronics

2440 Cades Way, Vista, California 92081phone: 760.727.5228 fax: 760.727.0799

www.cornerstonecnc.com






Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years. We are the leading surface grinding shop in Arizona. Family owned and operated.

www.SunGrindingUSA.com

For All Your Grinding Needs!

[email protected] / 522 E. Buckeye Rd. Phoenix, AZ. 85004

Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!

We have the largest centerless grinder in the state!

Blanchard - Our 60 inch chuck will cut stock quickly and allows us to grind parts up to 72” diagonally.



There are many reasons why concentrations exist in a business and many are a complement to howwell you perform in your core competency. However, at the end of the day, they still create risk andneed to be managed.

SO HOW DO YOU PLAY THE GAME?What can you do today to help combat the risk of concentrations? It’s important to recognize thatminimizing concentrations is a long-term journey. Start by establishing a long-term goal to reduceyour riskiest concentrations, and then begin to migrate in that direction. Just as in the game of Risk,you don’t leap to a strategic target; you start at the core of your strength and move towards the goalone step at a time.

One of the first steps towards diversification is to broaden the self-imposed definition of yourbusiness. For example:• Today: XYZ is a precision machine shop focused on providing high-tolerance products in low volumes to the aerospace industry.

• Future: XYZ is a contract manufacturer focused on being a full-service provider of small, precision products to diversified OEM’s. We specialize in meeting stringent quality system requirements.

The next step is to identify and focus on the concentrations you have.

• Industry concentrations – Understand why you are so critical to the customers in that industry – what is it (beyond the parts you make) that they value? Is it your responsiveness and ability to meet tight delivery windows? Is it your supply chain management capabilities? Your ability to provide design for manufacturability that enhances quality or reduces cost? When you begin to evaluate these factors, you begin to see how relevant those capabilities are in many industries beyond the ones you serve today.

Another option is to enter a new industry or market through acquisition. Even a very smallacquisition can diversify a business and improve its overall health and sustainability. If yourCompany is in a healthy place to make an acquisition, this might be a good way to expand yourbusiness and start reducing your concentrations.

• Customer concentrations – Who are similar customers (or competitors) to your largest customer that you are not serving today? Chances are, if your key customer values your approach other customers with similar needs will as well.

• Product concentrations – Are you serving only one component of your customers’ machined parts needs and letting competitors handle the rest? In an age of supply chain consolidation, this is a dangerous game. Take a second look at the economic impact of taking on that simpler, higher volume work. You will not only reduce part / product concentrations but you may dramatically improve profitability as well.

While success in business doesn’t mean world domination, building a sustainable company willcertainly be a rewarding venture. Being diversified and flexible in who you work with and themarkets you serve will position you well in the game of business.

BRENT TERHAAR is a Partner in the Manufacturing and Distribution group of Clifton-LarsonAllen. He can be reached at 888.529.2648 or [email protected]

Learn more at: www.cliftonlarsonallen.com

PrecisionNews

PPLLUUSS THE 800-lb GORILLA:Doing business with the customers whohelped you grow pp..1122

SPECIALRESETISSUE!

LEADINGTHERECOVERY

U.S. Manufacturing:

Our industry leads the way forward manufacturing products for

domestic use and export and the jobs it takes to produce them

pp..1144

PrecisionNews

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TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

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Concentrations–AGame of Riskcontinued from page 13

SEIZE THE OPPORTUNITY

RIDE WITH US!

As the inspirational story “Metal & Flesh” enters the final stages of production, a new opportunity has arisen: part 2 to the story, to capture on film history as it unfolds. 4 left leg amputees: Mike Schultz, MarioPanagiotopoulos, Chris Ridgway and Jim Wazny are about to do something that has never been attempted by a team of amputees. In November 2012, they will race 1000 miles across the desert in one of the mostdangerous races in the world, the legendary Baja 1000.

Edge Factor, in partnership with Hero Racing, wants to seize the opportunity to tell this compelling story by producing a film that documents their 1000 mile mission.

Without the time we need to raise money through corporate sponsorship, the Edge Factor team is taking this fundraising project to the streets! On Thursday, September 6, 2012 we launched a 37 day, grassrootsfundraising project on Indiegogo.com. We need an absolute minimum of $70,000 to roll cameras. But this isn't your average fundraiser. It's built on “give a little, get a little”. The more you pledge, the bigger your perk!

Visit edgefactor.com for details!

Edge Factor’s ultimate goal: To revolutionize the stereotype of manufacturing as a “dark and dirty” industry to one that is filled with extreme technology, advanced

innovations and modern, exhilarating careers for the next generation.


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