Industry Shipments Up 6.6% Year Over Year

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How are you doing compared to your peers?
With 80 companies responding, the PMPA Business Trends Index in June recovered to 128, which had been the Index’s
previous high until the March 2015 record of 138. This strong showing (from 80 respondent shops) is up 8 points from last June and is right on track with our April forecast for 2015 to be 6.7% over last year.

128 was our highest value historically until March 2015... — 128 was our highest value historically until March 2015…

By the way, we are out performing the Fed’s IP indicator as well.
Our index is up 6.6% over the average for 2014. According to the FED:

“Industrial production increased 0.3 percent in June but fell at an annual rate of 1.4 percent for the second quarter of 2015.

In June, manufacturing output was unchanged: The output of motor vehicles and parts fell 3.7 percent, but production

elsewhere in manufacturing rose 0.3 percent… at 105.7 percent of its 2007 average, total industrial production in June was

1.5 percent above its year-earlier level.”

Our industry’s sales and shipments continue to outperform the Fed IP numbers.

We personally believe that it is the wide cross section of industries served and customer zero inventory policies that keeps our numbers higher in the

aggregate than the Fed’s IP.
Our four sentiment indicators for Sales, Lead time, Employment and Profitability remained level from May.
Get the full report.

Plan Do Study Adjust- The Engine of Continuous Improvement

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Continuous improvement is of necessity in the very DNA of our shops.

In ISO 9000:2000 Section 8.5.1 read :
The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive action, and management review.
In TS16949:2009 it read:
8.5.1.1 Continual Improvement of the Organization
The organization must define a process for continual improvement .
8.5.1.2 Manufacturing Process Improvement
Manufacturing process improvement must continually focus on control and reduction of variation in product characteristics and manufacturing process parameters.
The standard defined continual improvement as : “recurring activity to increase the ability to fulfill requirements.”
Recurring activity. To me that means cycle.

It is not a wheel, PDSA is a continuous cycle of cycles!

Karen Martin shared this graphical representation of PDSA in her book The Outstanding Organization.
Plan. Do. Study. Adjust.
This is the process of continuous (continual) improvement.
Plan. Do. Study. Adjust.
It’s what we do.
If this sounds familiar, it is because I first wrote about this here Karen Martin
DNA Photocredit

Buy American- What Does That Mean?

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Industry Week Reports that “Ford Plans Move for Compact Car Production Out of US.” What exactly does “Buy American” mean these days?

In 2009 , While two of the three bankrupt thinking Detroit firms were using the government to bully their way through Bankruptcy, running roughshod on their suppliers and creditors, I wrote a piece about “The New Domestics.”
Here are a few points that I made in that article:

More than 70 percent of the value added in a new car is provided by the suppliers, not the assemblers;
More than 300 companies have created jobs in Ohio as a result of the state’s “New Domestic” auto industry;
Honda has plants or major operations in Alabama, California, Connecticut, Colorado, Georgia, Indiana, Iowa, Michigan, New Jersey, North Carolina, Ohio, South Carolina, Tennessee and Texas.
Mercedes has a plant in Alabama too.
And BMW has a plant in South Carolina.
Volkswagen has broken ground for an assembly facility in Chattanooga, Tennessee. (It’s been making cars since 2011, employs 2000 people)

So what is an American Car?

One made by my friends and neighbors;
Made from materials and parts purchased locally;
One that the first digit of the VIN is a “1”;
One that has more than 50% “domestic content;”

Want to know more about American Cars in 2015?
The MOST AMERICAN CARS
What is the US’s leading auto exported abroad?
Surprise Answer
Industry Week Article
Thanks to Draplin Design for the neat graphic.
Camry Photo
Postscript- Not to diminish the role of Canadian Manufacturers- nor their vehicle assembly plants. PMPA members in Canada produce high volumes of high technology systems parts for the automotive markets- fuel injectors, anti-lock brake parts, fluid power system components and much, much more. But the irony of the whole Ford “Wrap ourselves in the flag while we really export your jobs” marketing is really the “driver” behind this post.

Sales and Shipments Leveling in Precision Machining

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The PMPA Business Trends report for May 2015 showed a second month of declines from our all time high in March.

With 84 companies responding, the PMPA Business Trends Index in May continued its descent to 121, a 7 point decline

from April, which was itself a 9 point drop from the record of 137 in March. This was our first April to May decline since 2010.

Our three month moving average remains above the 12 month moving average, which supports the idea that demand is leveling.

When the 3 month Moving Average crosses the 12 month moving average, we take that as a convincing indication that the demand has in fact

“significantly changed.” (Compare dark orange to shaded orange lines on the graph below)

3 month moving average still above 12 month moving average... — 3 month moving average still above 12 month moving average…

Sentiment was down slightly in the areas that we measure, but we are not wringing our hands.
Full report available here.

Sales and Shipments Leveling in Precision Machining

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The PMPA Business Trends report for May 2015 showed a second month of declines from our all time high in March.

With 84 companies responding, the PMPA Business Trends Index in May continued its descent to 121, a 7 point decline

from April, which was itself a 9 point drop from the record of 137 in March. This was our first April to May decline since 2010.

Our three month moving average remains above the 12 month moving average, which supports the idea that demand is leveling.

When the 3 month Moving Average crosses the 12 month moving average, we take that as a convincing indication that the demand has in fact

“significantly changed.” (Compare dark orange to shaded orange lines on the graph below)

Sentiment was down slightly in the areas that we measure, but we are not wringing our hands.
Full report available here.

The Person is at the Center

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I visited HORN to learn about their Workforce Development Program.
For the German version of this post, go here.

“The best people are the basis of the future.
Our job is to help our people remain the best.”-Lothar Horn
In Germany they have a saying. It is a play on the word Punkt, which means both “point” and “period.” (“Period” as in “End of discussion!”)
“Der Mensch ist Mittelpunkt ( The man is the centerpoint -implies part of the team, respected)
Der Mensch is Mittel.” The man is center. PERIOD (implies just a means to an end, a resource not respected)

Der Mensch ist mittelpunkt — The man is the center of the company and important for what it does.

This saying conveys that the human should be at the center of the company and its purpose, not just a means to an end.
But I say “It is really all about the People.”
Our People

Der Mensch macht unser Produkt. — Our people make the product.

Der Mensh sichert Qualität. — Our people assure the Quality

Der Mensch ist auch unser Kunde. — Our people are also our customers.

We are all customers, that is my POINT! (Punkt)
What did I learn about workforce development from HORN?

“You are not just a number, you are a name, everyone is important at HORN.”
And that is all that you need to know about workforce development philosophy.

The Person is at the Center

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I visited HORN to learn about their Workforce Development Program.
For the German version of this post, go here.

This saying conveys that the human should be at the center of the company and its purpose, not just a means to an end.
But I say “It is really all about the People.”
Our People

We are all customers, that is my POINT! (Punkt)
What did I learn about workforce development from HORN?

“You are not just a number, you are a name, everyone is important at HORN.”
And that is all that you need to know about workforce development philosophy.

Der Mensch Ist Mittelpunkt

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English translation will be my follow up post.

Ich ging nach Horn, über Weiterbildungsprogramm erfahren.

“Die Besten Menschen sind die Basis für die Zukunft.

Unsere aufgabe ist es, unsere Mitarbeiter bleiben die beste.“- Lothar Horn
In Deutschland gibt es ein Sprichtwort:
“Der Mensch ist Mittelpunkt
Der Mensch is Mittal.” (Punkt!)

Dies bedeutet, dass der Mensch im Mittelpunkt des Unternehmens, nicht nur Mittel zum Zweck.

Aber ich sage: “Es ist wirklich alles über den menschlichen!”

Der Mensch

Wir alle sind der Kunde, das ist der Punkt!
Oder wie ich lernte Horn:

“Du bist nicht eine Zahl, ein Name bist du, jeder ist wichtig. “

Das ist alles, was Sie wissen müssen über Weiterbildungsprogramm Philosophie.

Der Mensch Ist Mittelpunkt

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English translation will be my follow up post.

Ich ging nach Horn, über Weiterbildungsprogramm erfahren.

“Die Besten Menschen sind die Basis für die Zukunft.

Unsere aufgabe ist es, unsere Mitarbeiter bleiben die beste.“- Lothar Horn
In Deutschland gibt es ein Sprichtwort:
“Der Mensch ist Mittelpunkt
Der Mensch is Mittal.” (Punkt!)

Dies bedeutet, dass der Mensch im Mittelpunkt des Unternehmens, nicht nur Mittel zum Zweck.

Aber ich sage: “Es ist wirklich alles über den menschlichen!”

Der Mensch

Wir alle sind der Kunde, das ist der Punkt!
Oder wie ich lernte Horn:

“Du bist nicht eine Zahl, ein Name bist du, jeder ist wichtig. “

Das ist alles, was Sie wissen müssen über Weiterbildungsprogramm Philosophie.

Revised OSHA Hazard Communication Standard Now In Effect

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Starting yesterday, chemical manufacturers, importers, distributors and employers are required to provide a common approach to classifying chemicals and communicating hazard information on labels and safety data sheets.

The June 1 deadline was established when OSHA aligned its Hazard Communication Standard in 2012 with the global standard for chemical product labeling.
Chemical manufacturers and importers must provide a label that includes a signal word, pictogram, hazard statement, and precautionary statement for each hazard class and category. Beginning in December, distributors may only ship containers labeled by the chemical manufacturer or importer if the labels meet these requirements.
Until then, your shop will likely see containers with old or new pictograms and information.
For more information, try the OSHA Hazard Communication WebPage
Small Business HAZCOMM Guide