The U.S. Department of Labor’s Occupational Safety and Health Administration today announced that it is withdrawing its proposed interpretation titled “Interpretation of OSHA’s Provisions for Feasible Administrative or Engineering Controls of Occupational Noise.” The interpretation would have clarified the term “feasible administrative or engineering controls” as used in OSHA’s noise standard. The proposed interpretation was published in the Federal Register on Oct. 19, 2010.
PMPA alerted the industry and other metalworking associations to this proposed reinterpretation when it was first published in the Federal Register. We wrote requesting an extension for comments and fact finding. We have been gathering data to establish the cost burden of the proposal on the small manufacturing businesses that we serve.
Thanks to all who joined with PMPA, our members who commented, and other metalworking associations who also commented and made their concerns known.
As a result of effective associating, this ill-conceived proposal has been withdrawn.
You can read the OSHA Announcement here.
Author: Miles Free
Any design- whether product, recipe, process, or art- should be subject to periodic review of the designer.
The reason for this is to assure that
- It is being used as originally intended
- It is being followed
- It is effective
- Opportunities for improvement are identified
This is fully in keeping with the Deming Wheel, or for us old timers,”the Shewart Cycle.”
The revisiting of the process creates learning opportunities for the organization as well as the people involved:
- Teaches those involved in the process
- Teaches the Designer doing the review about his process
- Teaches the Designer about how the organization implements their designs
- Teaches the Designer how to improve their future process designs
- Adds to the “Tribal Knowledge” of the organization.
The review of the process can be the most profitable aspect of the company’s product provision efforts.
If it is not neglected.
Plan and Do are critical and measured by the customer.
Check and Act are equally as important and measured by profitability. They are the engine of institutional learning and continuous improvement.
Deming Wheel.
Prices increased across the board on all metals that we track…
Aluminum is up 9.16% December 2009 – December 2010. Average price was up 33% over the year.
Brass scrap up 34.29% since December 2009. Average for year up~43%.
Copper 30.92% increase December 2009 –December 2010. Average for year up ~42%.
Nickel up 51.86% since December 2009. Average for year up 62%.
Steel busheling up 25.60% since December 2009. Average for year up 58%
China Coke down 27.45%, The only item we track lower for the period.
Raw material prices remain highly volatile, and are likely to remain so given global demand and supplier reticence to build inventory.
PMPA Members can get the full Raw Materials Impact report here: December 2010 Materials Impact
Good housekeeping enables many things in your shop- all good!
I recall when a colleague was given a “battlefield promotion” from inside sales manager to plant manager at a steel plant that was closing. My colleague confided in me by saying, “I don’t know how to run a plant; I don’t know this; I don’t know that.”
My comment to her was simple: “I’ve been to your home. It is a clean and safe place. Think of the mill as your home. Does it meet your standards for safety? Does it meet your standards for housekeeping? If you don’t tolerate dirty laundry on the floor in your home, why would you let your crew put debris or rags on the floor of the shop — your home away from home?”
During the period of time that she was plant manager, her plant (despite the stress of imminent closing) had the top safety record, the top on-time performance record and the best crew attitude.
There was no uncertainty in her crew. They knew that she expected an orderly, free-from-trash, no-waste work environment (and lunchroom). That’s how she managed. Along with that came improved safety, attitude and performance. Those are not bad side effects from just focusing on one area.
Is housekeeping an area you choose to focus on in 2011?
And what do you expect as the side effects of your choice?
Original Article: Production Machining
Photo credit: Floating Branch Products
Here are three reasons for optimism for 2011 for our Precision Machining Industry:
1) Metal Service Center Shipments in November
Metals service center shipments of steel and aluminum products rose robustly in November, perhaps signaling the beginning of a sturdier recovery for the metals industry, the Metals Activity Report from the Metals Service Center Institute shows. Year-over-year steel shipments from U.S.-based service centers rose 28.4% during November; Canadian shipments were 19.5% above year-ago volume. U.S. aluminum shipments were 38.8% higher than in November 2009, while Canadian shipments of the light metal rose 18.3% from last year. In each case, the sequential rise in shipments from October volume was pronounced. Link
Double digits shipments increases = Optimism.
2) Auto Sales SAAR (Seasonally Adjusted Annual Rate) are approaching 13 million
“U.S. auto sales rose more than 11 percent in 2010 to almost 11.6 million vehicles, snapping a four-year slide that forced the Detroit automakers into a wrenching restructuring that included government-directed bankruptcies for GM and Chrysler.
“In a year-end surge that took the industry by surprise, the annualized sales rate for December jumped to almost 12.6 million vehicles, the highest rate since August 2009 when the U.S. government’s “Cash for Clunkers” trade-in incentives touched off a short-lived boom.”
Reuters story
Automotive is traditionally 25% of precision Machining industry sales according to PMPA Business Forecast reports.
3) First Shift Hours
The early returns for our January Business Trends Reports show many shops scheduling first shifts of over 45 hours.
Shifts> 45 hours = Immediate Demand
Fabricated metals and primary metals were two of the 11 manufacturing segments reporting growth in December 2011 according to the latest ISM Report on Manufacturing.
Our precision machining industry makes the highly engineered precision components that enable the technologies embedded in manufactured products.
Manufacturing is responsible for approximately 12 % of GDP.
The PMI registered 57 in December, indicating a continued expansion in Manufacturing. December was the 17th consecutive month of manufacturing expansion according to ISM.
We believe that the ongoing US Manufacturing expansion, when coupled with the economic expansion in Brazil, India and China, indicates a year of high variability in prices for raw materials needed for producing precision parts. Brass, steel, stainless steel, prices of these are likely to swing wildly as inventories remain low and demand registers episodically and news distracts the market.
We are pleased to see manufacturing continue its expansion in the US, but are keeping in mind the challenges that many shops will face as they try to purchase materials not available from stock for orders with immediate due dates.
A better problem to have than we had in the fourth quarter of 2008…
Have you noticed availability issues in certain materials?
Have you noticed unseasonably strong orders or sales in the final quarter of 2010?
Photo
$62 billion spent on education, and $20 billion spent on ‘training, employment, and social services,’ and yet precision machining shops all over the country are unable to find skilled machinists.
Over $82 billion in education and training spending and yet- skilled machinists are nowhere to be found.
Graph via Thomas Lee Dunlap
Data
Guest post by Seth Godin
Maybe next year…
The economy will be going gangbusters
Your knowledge will reach critical mass
Your boss will give you the go ahead (and agree to take the heat if things don’t work out)
Your family situation will be stable
The competition will stop innovating
Someone else will drive the carpool, freeing up a few hours a week
There won’t be any computer viruses to deal with, and
Your neighbor will return the lawnmower.
Then…
You can ship, you can launch your project, you can make the impact you’ve been planning on.
Of course, all of these things won’t happen. Why not ship anyway?
[While others were hiding last year, new products were launched, new subscriptions were sold and new companies came into being. While they were laying low, websites got new traffic, organizations grew, and contracts were signed. While they were stuck, money was being lent, star employees were hired and trust was built.
Most of all, art got created.
That’s okay, though, because it’s all going to happen again in 2011. It’s not too late, just later than it was.]
Originally posted here.
Photo credit.
Your knowledge will reach critical mass
Your boss will give you the go ahead (and agree to take the heat if things don’t work out)
Your family situation will be stable
The competition will stop innovating
Someone else will drive the carpool, freeing up a few hours a week
There won’t be any computer viruses to deal with, and
Your neighbor will return the lawnmower.
Then…
You can ship, you can launch your project, you can make the impact you’ve been planning on.
Of course, all of these things won’t happen. Why not ship anyway?
[While others were hiding last year, new products were launched, new subscriptions were sold and new companies came into being. While they were laying low, websites got new traffic, organizations grew, and contracts were signed. While they were stuck, money was being lent, star employees were hired and trust was built.
Most of all, art got created.
That’s okay, though, because it’s all going to happen again in 2011. It’s not too late, just later than it was.]
Originally posted here.
Photo credit.
We recently caught up with Santa on his pre- flight rounds checking chimney status in Ohio.
Speaking of Precision: What brings you to Ohio now? I would have thought that you’d be back at the North Pole frantically working on Production?
Santa Claus: Frantically working on production? Heck No. We’re ISO/TS 16949. We have systems in place. Procedures to follow. There is nothing ‘frantic’ about our product realization methodology.
SOP: Sorry about that Santa. I guess it isn’t very well known that your North Pole Workshop is ISO TS 16949 Certified.
SC: Yes. Everybody thinks we’re this old fashioned, 19th century kind of sweat shop. We’ve had to keep up with the manufacturing technology you know. We’re nothing at all like that overly sentimental Coke commercial. We’re up to date. Using best practices. Modern lighting. Safe job procedures. Continuous improvement. Who has time for nostalgia? Do you know how much coal I have to deliver to Wall Street Bankers this year?
Our monitoring and measurement of product (TS 16949 Clause 8.2.4 ) is one of the reasons I’m out here with the Medina Township Fire Dpartment today. Our procedures require us to validate delivery systems, so the fire department is driving me around to verify chimneys. The data I get will be used in our algorithm for lean delivery…
SOP: Santa, who would have thought that you were a proponent of “lean anything?” Just sayin… But why not just do a reindeer flyover?
SC: Are you kidding me? I’m all about reducing waste. I have a world to satisfy in just one night. As for why not use the reindeer, look, you don’t know just how hot it is here. Look at me, I’m really sweating here in this heat wave. Is Ohio always this hot?
SOP: Santa, its 10 degrees F, we just got 6 inches of snow…
SC. Down right tropical. Down right tropical. If I’d have brought my deer, they’d be losing weight. They will need all their energy for our big night. Thank goodness the fire department can take me around on this preflight. So what is it that you have on your list? New Car? Vacation? Stop foreclosure on your house?
SOP: Santa, Thanks for asking, on behalf of the precision machined products industry (we’re the people who make things)…
SC: Just like us at the North Pole, I know you guys. You make the crucial components that make other technologies function. I use a lot of your stuff in my work. And I think one of your shops made the hardware for my hip replacement last June.
SOP: You had a hip replacement?
SC: Yes, it was the off season. Your guys did a nice job on the screws to attach it. Looked like they were whirled, not chased.
SOP: Well Santa some of our shops do that. Now about that list.
SC: Yes- The List.
SOP: What we’d like from you, Santa, is to see continued and growing demand for our Precision Machined Products.
SC: Well of course you do, you tracked me down to ask for that?
SOP: Also, we’d really like to see improved availability of the raw materials that we use to make our products. ..
SC: You’re telling me. I had a bit of a time finding some rare earth magnetic materials for earbuds and hard drives. I’ll see what I can do- professional courtesy, manufacturer to manufacturer, you know. You guys wouldn’t happen to need any coal would you?”
SOP: No thanks on the coal Santa. Save it for the bankers. Finally, we’d like to see some real substantive action out of Washington on the issues of manipulated currency and regulation escalation. The last two administrations have been do- nothings on the artificially low value of the Renminbi, and we are constantly trying to respond to the latest regulation or reinterpretation that puts our shops at a disadvantage globally, increases our costs to comply, and increase our risk of facing draconian fines and penalties….
SC: Can’t help you there, son. Even my magic has limits… Why not ask for a winning season for your local Cleveland sports teams? Better chance of my delivering that- someday. Sheeessh! We’ll see what we can do on the demand and raw materials side, but your industry is going to have to effectively work with the folks in Washington if you want to get any real change. Asking magic guys in flying sleighs isn’t going to help in that arena. That one you’ll have to tackle yourselves.
SC:Well I’ve got to run, off to verify the quality of my purchased product. You know, ISO TS 16949 Clause 7.4.3. Tell your people thanks for making quality parts that make a difference. I’m really enjoying my new hip. Improved mobility is a real blessing. Your peoples’ focus on Quality will continue to be the key to keep them on my Nice List. You should see how many Wall Street Bankers I have on my Naughty List.
SOP: I’ll tell them Santa. Thanks for the chat.
News to China: Fair Trade means Trade Fair.
Our original post on this subject: Chinese tire dumping .
A ruling announced yesterday by the World Trade Organization (WTO) upheld U.S. tariffs levied on China-made tires entering the U.S.
Moments after the WTO ruling the Chinese said they would appeal the decision.
Here is a summary of findings and conclusions.
The WTO’s dispute settlement panel rejected China’s position that U.S. tariffs imposed last September on all Chinese tires violated global trade rules.
China retaliated against the U.S. tariffs by slapping duties on a variety of American-made products, including chicken and nylon.
So much for a commitment to trade fair under WTO by China.
So much for mature behavior from our “global trading partner” and “manufacturer to the world.”
The decision to impose the tariffs came last September after a complaint brought by the United Steelworkers union was confirmed by the U.S. International Trade Commission and subsequently recommended by the ITC. The tariffs levied are 35% in the first year, 30% in the second year and drop to 25% in the third year.
According to the initial complaint, China has more than tripled its low cost tire exports to the U.S. between 2004 and 2008, costing the U.S. tire industry more than 5,100 jobs.
Maybe that’s why its called Dumping.
The ITC ruled June 19th that Chinese tire manufacturers were dumping their products on the U.S. market, hurting domestic tire manufacturers and causing increased unemployment in the domestic tire industry.
And now the WTO agrees.
Photocredit
