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October 2007 Vol.46 No. 4

FEATURES
From Lean, Leaner, Leanest Production to Where?
How springmakers apply lean principles to today’s market challenges
By Wallie Dayal, Dayal Resources

Move Your Operations to China? Do some lean math first
By James P. Womack Ph.D., The Lean Enterprise Institute

Can Manufacturers Thrive in the Culture of Change
Lean management techniques essential to compete on a global basis
By David Hogg, Association for Manufacturing Excellence

Ignoring Deductions for Tax Savings
By Mark E. Battersby, tax/financial journalist

Exploiting Analytical Laws for a Constant-Pitch Conical Compression Spring
By Emmanuel Rodriguez and Marc Sartor

Preventive Maintenance Tips for Your Inline Conveyor Ovens Part III: The Conveyor Mechanism
By Daniel Pierre III, JN Machinery Corp.

COLUMNS
IST Spring Technology
Lean Manufacturing in the Spring Industry
By Mark Hayes

Spotlight on the Shop Floor
Spring Essentials (for the rest of us) part X
By Randy DeFord, Mid-West Spring & Stamping

Checkpoint: Business Tips From Phil Perry
Health Insurance Scams: Bogus plans can expose employees to huge bills

Be Aware: Safety Tips From Jim Wood
Employee Safety Training is Mandatory

DEPARTMENTS
President’s Message: Lean Spring Manufacturing

Global Highlights

Inside SMI:
Senate voting records, SMI 75th Anniversary, Reese retires from CASMI

New Products

Snapshot:
Mike Betts, Betts Spring Co.

Global Highlights

Overseas

The Sandvik Group, Sandviken, Sweden, has completed the acquisition of Implementos Mineros SA in Implemin, Chile. Implementos will be consolidated within the business area of Sandvik Mining and Construction.

In addition, Sandvik is in the process of acquiring Metso Powdermet AB from the Finnish Metso Oy Group. Metso Powdermet makes powder metallurgy components primarily for the offshore and energy sectors. It will become part of Sandvik Materials Technology.

Sandvik is a global industrial group with products in areas such as tools for metal cutting, stainless materials, special alloys, metallic and ceramic resistance materials, machinery and tools for rock excavation, as well as process systems and sorting systems.

The second concurrent staging of wire China 2006, the All-China International Wire & Cable Industry Trade Fair and Tube China 2006 closed to successful results. There were 923 exhibitors (683 in 2004) from China and 31 other countries on 430,556 square feet of gross exhibit space (an increase of 150,690 square feet). There were 32,000 trade visitors (23,447 in 2004), including 3,500 visitors who came from more than 80 countries other than China.

glob_wirechin.epsWire and Tube China 2006 were jointly organized by Messe Düsseldorf China Ltd, the Shanghai Electric Cable Research Insti-tute and the Metallurgical Council of the China Council for the Promotion of International Trade.

A highlight of wire China was the new Chemical Zone where wire and cable material manufacturers showcased their products. In addition, about 60-spring and fastener machinery manufacturers and 40 wire and cable products manufacturers from China and overseas were present. The next concurrent staging of wire and Tube China will take place September 23-26, 2008 in Shanghai. For information, contact Messe Düsseldorf by phone at (312) 781-5180 or Web site at www.mdna.com.

The Wire Association International (WAI) Inc. has opened an office in Asia to serve that burgeoning market. Headed by managing director Anand Bhagwat, former WAI president, WAI Wire and Cable Services Pvt Ltd is located in Pune, India. The timing of this new venture in India dovetailed with WAI’s 2006 International Technical Conference, “Global Technologies for Emerging Markets,” which took place in New Delhi, India. glob_bhagwat.epsThe conference provided participants face-to-face contact with local company representatives during the tabletop exhibition and networking events.

Bhagwat has 18 years of experience as a metallurgist and was formerly vice president of quality and technology at Seneca Wire and Manufacturing Co. in Fostoria, OH.

Overseas Events

April 18-20, 2007: 7th Wire and Cable Expo International Exhibition and Conference, New Delhi, India, Intech Trade Fairs Pvt., +91-22-26861040, www.intechtradefairs.com.

June 7-8, 2007: VDFI Annual Convention, Gelsenkirchen, Germany, VDFI, fax +49 2331 587484, www.vdfi.wsu.de.

June 21-24, 2007: 8th China Int’l Fasteners Spring & Equipment Exhibition, Guangzhou, China, Julang Exhibition Co. Ltd., +86-20-38620782, www.julang.com.cn.

Oct. 16-18, 2007: wire Southeast Asia, Bangkok, Thailand, Messe Düsseldorf, (312) 781-5180, www.messe-dusseldorf.de.

Nov. 2, 2007: JSSE 60th Anniversary International Symposium, Nagoya, Japan, JSSE, +81-3-3251-5235, www.soc.nii.ac.jp/jssr.

North America

O’Hare Spring Co. Inc. in DesPlaines, IL, has announced its new management team: Bill Schneider, chairman and CEO; John Schneider, president; and Jeff Kolozsy, vice president and general manager.

The company was started in 1964 by Rudy and Lucille Schneider, and was operated for years solely by the husband and wife team in their 1,000 sq. ft. building. Brothers Bill and Jim Schneider bought the business from their parents in 1978, and expanded the company to 32 employees in a 28,000 sq. ft. building. The third generation, John, Bill’s son, is carrying on the O’Hare tradition together with his father after the sudden death of Jim in March 2006. The Schneider family thanks their friends and colleagues in the industry who shared kind words and memories of Jim.

Baumann Springs Ltd., based in Switzerland, has constructed a 24,000 sq. ft. facility in León, Guanajuato, Mexico. The plant is located at Kappa 310 y 312, Frac. Industrial Delta, C.P. 37545 León, Gto., phone +52 477 7810204. Baumann Springs Leon S.de R.L.de C.V. will supply precision springs and wire forms to the automotive, electronics and industrial industries located in the central region of Mexico. Antonio Reus is the general manager. This plant is Baumann’s third in North America and 12th worldwide.

glob_swbennett.epsThe Chicago Association of Spring Manufacturers Inc. (CASMI) reports that its Spring World 2006 trade show had greater participation than its previous staging in 2004. Registration and attendance numbers were up more than 10 percent from 2004. Exhibitors report that many attendees came with an agenda to find solutions to their problems and had a more “open checkbook” approach to the show. In attendance were 1,467 springmakers and wireformers visiting 738 exhibitors. Exhibit reservations are being accepted for the 2008 show at the Donald E. Stephens Convention Center, Oct. 15, 16 and 17.

glob_casmi.epsTom Renk (pictured, left) has been appointed the executive director of CASMI. He replaces Gerry Reese (right), who retired after serving as director for 20 years. Renk has an extensive association background and is part of an association management group. His office will be at 1801 N. Mill St., Suite R, Naperville, IL 60563; phone (630) 369-3772; fax (630) 369-3773.

The Interwire Group, based in Armonk, NY, has opened a new facility in Grand Rapids, MI. This 80,000-square-foot facility will service the western Pennsylvania, Ohio, Indiana and Michigan markets. With the existing Chicago warehouse, Interwire will now cover the entire Midwest. The addition of this new building to the existing eight distribution centers now provides a total of 400,000 square feet of warehousing throughout the U.S.

The Interwire Group is a distributor of wire in the U.S. and manufactures ferrous and nonferrous strip. Eight divisions are ISO 9001 and ISO 2000 certified.

MW Industries Inc., based in Logansport, IN, has been acquired by an investor group led by Brockway Moran & Partners Inc., a Florida-based private equity firm and management. MW Industries specializes in the manufacture of engineered springs, specialty fasteners and precision stampings. It employs more than 900 people through 12 operating divisions located in nine states across the U.S. MW Industries also has a joint venture and sales office in China. “We are very pleased to announce this transaction, which underscores the successful execution of our business strategy,” says Dan Sebastian, president and CEO of MW Industries. “For our customers and suppliers, it will be ‘business as usual’ as we continue to grow our business and global customer base.”

Wheelabrator Group in LaGrange, GA, was recently named a winner of the 2005 Outstanding Safety Award, presented in 2006 by the North American Die Casting Association. The award honors operations whose reportable injury or illness level was below the national average of 7.0 for manufacturing facilities. Wheelabrator is a global provider of surface preparation and finishing solutions.

Ulbrich Stainless Steels & Special Metals, based in North Haven, CT, is building a 12,000 sq. ft. addition to its plant in Wallingford, CT, for the production of very thin gauge stainless steel and special metal strip, targeting applications in the medical equipment, power generation, aircraft and other industries. “We are focusing on 13 markets worldwide for these light materials,” says Chris Ulbrich, CEO, of the $4 million to $5 million expansion.

The September 2006 U.S. trade deficit in goods and services fell nearly 7%, from a record $68.96 billion to $64.03 billion, led by a big drop in the price of imported oil. Despite slower U.S. economic growth, however, the non-oil goods deficit fell only slightly, reports the U.S. Business & Industry Council (USBIC).

The U.S. manufacturing trade deficit fell 4.15%, from $56.66 billion to $54.31 billion, yet the drop was led by a decline in manufacturing imports, from $124.96 billion to $121.18 billion (3%). More significant is the decrease in U.S. manufacturing exports, from $68.3 billion to $66.87 billion, despite strong levels of world economic growth.

U.S. exports to China fell for the second consecutive month, from $4.76 billion to $4.64 billion (2.52%), despite continuing double-digit economic growth in the People’s Republic. U.S. imports from China continued to rise, from $26.72 billion to $27.6 billion (3.29%).

Ringfeder Corp. in Westwood, NJ, a manufacturer of keyless shaft-hub locking devices and shock absorbing Ring-springs, as well as a line of flexible Elastomeric and steel shaft couplings and torque limiters, has announced its 35th anniversary. Ringfeder opened its doors with a specialization in keyless shaft-hub connections and has since expanded its offerings into a myriad of power transmission components.

The Manufacturing Institute reports in The Facts About Modern Manufacturing 7th edition:

• Manufacturing made the highest contribution (15%) of all sectors to real GDP growth between 2001 and today.

• It is the engine of technology innovation, responsible for more than 70% of private sector R&D.

• Its high productivity rate (which determines wages and benefits) increased by more than 50% over the past decade and was far higher than services’.

• Manufactured goods make up more than 60% of U.S. exports, helping to pay for U.S. imports. While agricultural exports amount to about $50 billion per year, manufacturers export that much each month.

• Manufacturing wages and benefits are about 25% higher than those of nonmanufacturing jobs.

• Manufacturing has a greater multiplier effect on the rest of the economy than does any other sector; each manufacturing dollar generates an additional $1.37 in economic activity.

The handbook, available at www.nam.org/facts, is based on government statistics and National Association of Manufacturers economic analysis.

GKS Inspection Services Inc., Plymouth, MI, provider of dimensional inspection and laser-scanning services, won a certificate of excellence from TRW Automotive prototype operations in Livonia, MI. The award honors GKS for a perfect record of on-time deliveries in the first quarter 2006.

Jerry W. Burris has been named president of Associated Spring, replacing Greg Milczik, who was elected president and CEO of Barnes Group Inc., parent company of Associated. Burris has also assumed Milczik’s seat on the Spring Manufacturers Institute board of directors.

In addition, Barnes Group has acquired Heinz Hänggi AG Stanztechnik of Switzerland, a manufacturer and developer of precision punched and fine-blanked components. Heinz Hänggi is now part of Associated Spring, which is based in Farmington, CT.

Stanley Spring and Stamping Corp. has announced that Ronald “Reb” Banas and his father, Ronald J. Banas have acquired controlling interest in the corporation. Located on Chicago’s north side, Stanley Spring and Stamping is a family-owned business founded in 1944 by Stanley Banas. Reb Banas will assume the position of president and Ron will serve as chairman of the board. Also included in the transaction is sister company Stanron Steel Specialties of Ft. Lauderdale, FL.

“We are repositioning ourselves in order to be more competitive in the marketplace,” says Reb. “Our market and our industry are changing, and we intend to be ahead of the curve as those changes take place.”

The company manufactures stamped metal and spring-coiled parts for industries throughout North America.

“After 62 years, we have recommitted ourselves to Chicago,” says Ron. “Its a great place to do business with a skilled work force, supply of raw materials and efficient transportation system.”

Metal Coatings International Inc. (MCII) in Chardon, OH, has appointed Gary Dillon manager of manufacturing and process technology. For nearly 30 years, Dillon has been with MCII, where he has held a variety of positions in technical areas. MCII develops and manufactures proprietary
corrosion-resistant coatings, sealers and topcoats, including Geomet and Dacromet.

Bazz Houston Co. in Garden Grove, CA, has completed recertification for ISO 9001:2000. The audit was performed by the third-party registrar TUV Rhineland, and found zero major or minor deviations. Bazz Houston is a manufacturer of springs, metal stampings, wire forms, slide products, assemblies and tooling. It has two manufacturing facilities: Garden Grove and Tijuana, Mexico.

The Wire Association (WAI) Inc. reports the renewed support of Interwire by the American Wire Producers Association (AWPA), which will be a supporting sponsor of the 2007 event to be held at the I-X Center, Cleveland, OH, May 5-10, 2007. AWPA joins the Society of Plastics Engineers (SPE) and the Wire & Cable Industry Suppliers Association (WCISA) in their supporting sponsorship roles of Interwire 2007.

Imperial Spring Co. Inc. Clarification

An article in the Global Highlights section of the October 2006 issue of Springs incorrectly stated that Imperial Spring Co. in Southington, CT, was acquired by Plymouth Spring Co. Inc. However, it was only the fourslide department, as well as other small wire coiling and torsion capabilities, that Plymouth had purchased from Imperial Spring Co. Inc. in February 2004.

Imperial Spring Co. Inc. continues to operate in Milldale (Southington), CT, at the same location since 1971. The latter part of 2007 will mark the company’s 50th year in business. Imperial offers springs and wireforms in the 1/16 in. to 7/16 in. wire diameter range. Readers may contact Imperial Spring Co. by phone at (860) 628-9611, fax at (860) 628-6396 or Web site at www.imperialspring.com.

North American Events

May 5-10, 2007: Interwire 2007, Cleveland, OH, WAI, (203) 453-2777, www.wirenet.org.

May 5-10, 2007: International Fastener Exposition, Cleveland, OH, co-locating with Interwire 2007, IFSMA (800) 688-1698, e-mail: rzirkle@bsales.com.

Oct. 15-17, 2008: Spring World 2008, Rosemont, IL, CASMI, (630) 369-3772, www.springworld.org.

It is with deep regret that Springs announces the passing of Barry Loudon, John Grace, Ned Garst and Angeline A. Dudek.

Barry Loudon, who was a wire industry veteran and became the first director/secretary of the Australasian Wire Industry Association (AWAI), passed away on August 12, 2006. He began his wire industry career in 1972 as a trainee metallurgist with Lysaght Brothers, renamed BHP Wire Products, and worked there in different management capacities. A Wire Association International (WAI) member since 1999, he was on the WAI’s board of directors, and a member of the WAI Technical Council, Ferrous Management Committee, Membership/Member Relations Committee and Education Committee.

John R. Grace died October 19, 2006. He was the founder and chairman of Spring Engineers Inc., Dallas, TX, which began as a small manufacturing company and grew to become SEI MetalTek, with multiple operating subsidiaries in both foreign and domestic markets. He was also an owner and board member of Sigma Electronics, and past president of the Spring Manufacturers Institute. He was a graduate of Texas A&M University, where he received a degree in mechanical engineering. He was a registered professional engineer. John was involved in numerous civic and charitable causes. He was preceded in death by his wife of 52 years, Diane Dickey Grace. John is survived by his children, John Robert Grace Jr., Kevin D. (Beth) Grace and Cynthia Grace Witte; five grandchildren; and brother, Joe Grace.

Edward “Ned” Garst died October 24, 2006 in Madison, WI. Ned owned and operated the Rockford Spring Co. in Rockford, IL, and Alambre Products in El Paso, TX. He had been active in community affairs with a special interest in the Natural Land Institute, which is dedicated to the preservation of natural lands. He is survived by his wife, Nancy; his children, Carolyn (Don) Chiasson, Peter (Katy) Garst; Hannah (Duane) Davis; Andrew (Karen) Garst; and Sam (Robin) Garst; nine grandchildren; sisters, Rosemary (Colin) Campbell; Barbara (George) Fell; and brother, Roger (Joyc) Garst.

Angeline A. Dudek died in October 2006. She was married to the late Joseph Dudek, founder of Dudek & Bock Spring Manufacturing Co., Chicago. She is survived by her children, Theresa (Jack) Schneider, Walter (Mary Jo) Dudek, Patricia (William) Mauk and John (Kathy) Dudek; 12 grandchildren; and 11 great grandchildren.

SMI Springmakers

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