PMPA Craftsman Cribsheet #125:
ISO (Metric)Threading Identification

Our example insert is 16ER24UNHG.

Published March 1, 2024

By David Wynn, Technical Services Manager, PMPA

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Author

David Wynn

David Wynn, MBA, is the PMPA Technical Services Manager with over 20 years of experience in the areas of manufacturing, quality, ownership, IT and economics. Email: gro.apmp@nnywd — Website: pmpa.org.

STATE OF MANUFACTURING – Delaware Manufacturing

by Joe Jackson

Marketing & Events Assistant, PMPA

Published March 1, 2024

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Fabricated Metal Products Manufacturing is a subsector of manufacturing that makes critical goods from metal components.

Precision Turned Products Manufacturing is a subsector of fabricated metal product manufacturing that makes the components that MAKE IT WORK!

 

DELAWARE ECONOMIC OUTPUT

Delaware Manufacturing
NAICS 31-33
$4,860,000,000

Fabricated Metal Product Manufacturing
NAICS 332
$379,661,000

Precision Turned Product Manufacturing
NAICS 332721
$4,333,000

DELAWARE MANUFACTURING ACCOUNTS FOR

Manufacturing Is Productivity –6.3% of Delaware’s total output (GDP)

Manufacturing Builds Businesses –528 manufacturing establishments in the state of Delaware.

Manufacturing Creates Jobs – 5.84% of all Delaware’s employees are in the manufacturing sector. (25,000 employees)

Manufacturing produces for Delaware!

  • Manufacturing is the 5th largest GDP Producer in Delaware.
  • Fabricated metals rank the 9th of the manufacturing sector in Delaware.

Delaware is a great place for a career in manufacturing

  • Manufacturing jobs pay on average 28% over the average job in Delaware. (according to NAM.org)
  • Wilmington is Delaware’s largest city based on number for manufacturing jobs with over 8,500 workers (34%) in Wilmington alone.

 

Sources: NAM.org, US Census, statista.com, IndustrySelect.com
Data selected to show relative values. May not be directly comparable due to differences in sampling, analysis, or date obtained.

 

 

 

 

Author

Joe Jackson

Marketing & Events Assistant, PMPA

Email: gro.apmp@noskcajj — Website: pmpa.org.

Implementation and Tracking
Strategic Planning I Part 2

A strategic plan that you have to dust off, does not advance your business.

by Carli Kistler-Miller

Director of Programs & Marketing, PMPA

Published March 1, 2024

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In last month’s article, we created a strategic plan. This plan is not a new year’s resolution to be ignored in a month. This plan needs to be implemented, maintained and updated. But there are a lot of strategies and tactics. Where to begin?

Start at the Beginning

As Desmond Tutu once said, “there is only one way to eat an elephant: a bite at a time:’ The strategic plan is the elephant and each tactic will consist of bites. The bites are the actions taken to complete the tactic.
The tactic owner should break out the action steps needed to achieve the tactic in the designated timeframe. Why the tactic owner and not the shop owner/strategic plan owner? Because the tactic owner will have the expertise to know what it will take to achieve the tactic.
Each action step should have its own deadline. Consider creating a team to help implement the tactic. If the tactic has a numerical goal to it ( for example,
36 new customers), then it can be broken down into action items (three new customers per month). Once the necessary people and timeframe are in place, start taking bites: step one, then two and so on.

Tracking

The strategic plan needs to be tracked by the plan owner to provide accountability and status. It also needs to be accessible to others so that the tactic owners are able to update the status of the tactics. Here are a few of the available options:
Microsoft Excel/spreadsheet. The plan can be listed on one tab or make each tab a goal or a strategy. There are a variety of ways to set it up. Make sure to include the deadline and a place for the tactic owner to update the status.
Microsoft Planner/Trello. Project management software can be populated with the plan, owners and deadlines assigned, and the updates can be entered in the comments, which would then be sent to anyone assigned to that task.
Strategic planning software. There are several software options specifically for strategic planning that allow for assignments, reminders and reporting.
When do the tactics get updated? That’s up to the owner
of the strategic plan ( usually the shop owner or chief of operations). The timing of the updates should correlate
with the tactic action items. There could be a routine time such as quarterly or the first of the month. They could also
be specific to the tactic. There is a delicate balance between the need for updates and overwhelming the tactic owner with too many update deadlines. 

 

 

 

Author

Carli Kistler-Miller, MBA has over 25 years of experience with
communications, event/meeting planning, marketing, writing and
operations. Email: gro.apmp@rellimc — Website: pmpa.org.

Onshoring Weather Report: Strong Tailwinds!

Onshoring, reshoring, nearshoring: these terms are showing up with increasing frequency in the news and online. But is there evidence that these are real?

by Miles Free III

Director of Industry Affairs, PMPA

Published March 1, 2024

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There can be little doubt that the return of manufacturing — and manufacturing jobs — to North America is happening. But what are the facts? How can we know that
this is a real, sustainable trend worthy of our investment?

The Opportunity of Manufacturing
According to a report by Deloitte and the Manufacturing Institute, over the next decade, 4 million manufacturing jobs will likely be needed — and 2.1 million are expected
to go unfilled — if we do not inspire more people to pursue modern manufacturing careers (bit.ly/PMPA-PM0324a). Clearly, the potential for employment exists.

New Private Construction for Manufacturing
A look at new private construction for manufacturing is convincing. The hockey stick graph shown below represents investment in construction of new manufacturing facilities (bit.ly/PMPA-PM0324b). Total private construction spending for manufacturing in the United States was $18.867 billion in October 2023 — its all-time high. How many manufacturing jobs will result from this dramatic increase in manufacturing facility construction?

Foreign Direct Investment
Foreign companies are investing in the U.S., and those investments result in jobs. Foreign direct investment (FDI) in U.S. manufacturing was $5,254.816 billion in 2022, according to the Bureau of Economic Analysis’ report “Direct Investment by Country and Industry 2022” (bit.ly/PMPA-PM0324c).
That investment is up almost 20% from 2019’s $4,398.763 billion in Manufacturing FDI. According to the report “FDI in Manufacturing 2017,” produced by Trade.gov, more than
2.4 million U.S. jobs in manufacturing are supported by FDI (bit.ly/PMPA-PM0324d).
FDI in manufacturing is a major force driving manufacturing employment in the U.S.

Foreign Direct Investment
Foreign companies are investing in the U.S., and those investments result in jobs. Foreign direct investment (FDI) in U.S. manufacturing was $5,254.816 billion in 2022, according to the Bureau of Economic Analysis’ report “Direct Investment by Country and Industry 2022” (bit.ly/PMPA-PM0324c).
That investment is up almost 20% from 2019’s $4,398.763 billion in Manufacturing FDI. According to the report “FDI in Manufacturing 2017,” produced by Trade.gov, more than
2.4 million U.S. jobs in manufacturing are supported by FDI (bit.ly/PMPA-PM0324d).
FDI in manufacturing is a major force driving manufacturing employment in the U.S.

Supply Chains and Shipping Rates
Since the 2020 COVID-19 pandemic, the term “supply chain disruptions” has become an almost everyday phrase. While the pandemic is no longer the operative cause, Reuters reported on January 4, 2024, that “Rates for shipments from Asia to North America’s East Coast climbed 55% to $3,900 per 40-foot container. West Coast prices jumped 63% to more than $2,700 ahead of expected cargo diversions to avoid Red Sea-related issues.” While these are serious increases, they are nowhere near those fueled by the prior pandemic: “$14,000
per 40-foot container for Asia to North Europe and the Mediterranean and $22,000 for Asia to North America’s East Coast” ( reut.rs/ 48T2FTv ).
Rate increases like these are no longer acceptable to consumer pocketbooks already stretched by inflation. Buying (and manufacturing) local makes economic sense today, by reducing the direct costs of global shipping, as well as eliminating the costs of delays by events that delay the shipping process – weather, disease, labor disputes. The lack of a logical reason to purchase globally – in the face of so many opportunities for delay and freight cost increases – supports the idea that manufacturing in the U.S. is likely to continue its renaissance. 

Boardroom Sentiment
Bank of America strategist, Savita Subramanian, posted a May 2023 note to clients that mentions of reshoring on earnings calls from S&P 500 CEOs have risen 128% year over year (cnb.cx/3vYoZMY). S&P 500 companies produce durable manufactured goods that need precision machined products to function – automotive, appliance and aerospace to name a few – so a mention by CEOs of these companies is certainly a forward-looking indicator of their intentions and actions in this space.
According to The Conference Board “Executive mentions of nearshoring/reshoring/onshoring in earnings calls and conferences are up 1,100% since the start of the pandemic” (bit.ly/PMPA-PM0324e). Up 1,100%. That’s convincing. And they are the customers for what we make in our precision machining shops.

Chinese Manufacturing
Since 2001, when China became a member of the World Trade Organization, (WTO) China has been seen as the “workshop to the world:’ This narrative has diminished as crises in real estate, high unemployment and a crackdown on its technology sector have dampened China’s growth, in addition to a shrinking population. According to Statista, China’s labor force peaked at 800.91 million in 2015; in 2022, it had declined to 768.63 million (bit.ly/ PMPA-PM0324f).
Nor is Chinese labor a low-cost bargain. According to Global Data, “China’s labor cost index in 2021 stood at 138. The index recorded a growth of 2.8% in 2021 compared to the previous year. Between 2010-2021, the index in China increased by 37.9%” (bit.ly/PMPA­PM0324g). Up 37.98%. China GDP is also declining, as its “share of Global GDP fell in dollar terms for the first time in 29 years:’ according to NikkeiAsia ( s.nikkei.com/ 48KxFVD ).
What are the “strong tailwinds” pushing the onshoring, reshoring and nearshoring trend in manufacturing today? We see the strong boom in new construction for manufacturing as one. Increasing FDI counts as another. Chaos in supply chains and out of control shipping costs are another factor convincing executives to buy local.
Executives themselves continue to announce their plans to bring manufacturing back, and in China, the demographics, and the economic data are showing that the economy may have peaked in terms of its output as a share of global GDP. And I haven’t even mentioned­ U.S. government investments, incentives and efforts to promote domestic production of semiconductor chips and other high-technology products.
These are strong tailwinds. I’m not a weather forecaster, but the data I am seeing leads me to believe that manufacturing and manufacturing employment will be strong for the foreseeable future.

 

 

Author

Miles Free III is the PMPA Director of Industry Affairs with over 50 years of experience in the areas of manufacturing, quality and steelmaking. Miles’ podcast is at pmpa.org/podcast. Email Miles

 

STATE OF MANUFACTURING – Kentucky Manufacturing

by Joe Jackson

Marketing & Events Assistant, PMPA

Published February 1, 2024

Download Magazine Article

Fabricated Metal Products Manufacturing is a subsector of manufacturing that makes critical goods from metal components.

Precision Turned Products Manufacturing is a subsector of fabricated metal product manufacturing that makes the components that MAKE IT WORK!

 

KENTUCKY ECONOMIC OUTPUT

Kentucky Manufacturing
NAICS 31-33
$41,190,000,000

Fabricated Metal Product Manufacturing
NAICS 332
$5,458,451,000

Precision Turned Product Manufacturing
NAICS 332721
$89,273,000

KENTUCKY MANUFACTURING ACCOUNTS FOR

Manufacturing Is Productivity –17.39% of the Kentucky total output (GDP)

Manufacturing Builds Businesses –3,233 manufacturing establishments in the state of Kentucky.

Manufacturing Creates Jobs – 13.16% of all Kentucky employees are in the manufacturing sector. (250,000 employees)

Manufacturing produces for Kentucky!

  • Manufacturing is the largest GDP Producer in Kentucky.
  • Fabricated metals rank the 4th of the manufacturing sector in Kentucky.

Kentucky is a great place for a career in manufacturing

  • Manufacturing jobs pay on average 33% over the average job in Kentucky. (according to NAM.org)
  • Louisville is Kentucky’s top city for manufacturing. Louisville is home to over 67,000 manufacturing jobs and ranks first in the USA for manufacturing growth..

 

Sources: NAM.org, US Census, statista.com
Data selected to show relative values. May not be directly comparable due to differences in sampling, analysis, or date obtained.

 

 

 

 

Author

Joe Jackson

Marketing & Events Assistant, PMPA

Email: gro.apmp@noskcajj — Website: pmpa.org.

Do You Have A Plan Or A Wish? Strategic Planning | Part 1

“A goal without a plan is just a wish.” – Antoine de Saint-Expery

by Carli Kistler-Miller

Director of Programs & Marketing, PMPA

Published February 1, 2024

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We all have goals both personal and professional. “I want to go to Austria.” “I want to workout more.” “I want to be able to give my employees a raise.” “I want to sell 90% of my machine time.” All of these “wants” are only wishes without a plan. And when it comes to business, those goals are achievable through a strategic plan that is carefully crafted, implemented and evaluated.

Creating A Strategic Plan

There can be several levels to a strategic plan, but the “bones” are:

• Goals — what you want to achieve (the destination)
• Strategy — how you are going to achieve the goal (the map)
• Tactics — what needs to be done to follow strategy.(the actions taken to follow the map)
• Deadlines — the expected timeframe to achieve tactics
• Owners — (not to be confused with the shop owner) the point person in charge of making sure the tactics are completed within the allotted timeframe. Th e owner may need others to complete the task.

A strategic plan should not be created in a vacuum. To build a truly dynamic plan, gather a group of stakeholders who can provide different perspectives. Stakeholders can be management, machinists, customers, sales, quality, IT, marketing — anyone whose perspective can help shape a viable plan. For example, creating a goal of integrating a new ERP system may be desired, but without the input of someone from IT, the feasibility, tactics and deadlines would be difficult to determine.

The example to the right is a simple outline of one goal in a strategic plan for a medium size shop. Keep in mind, a strategic plan should have at least three goals. (Thank you to Henning Industrial Software for their assistance with this article.)

 

 

 

Author

Carli Kistler-Miller, MBA has over 25 years of experience with
communications, event/meeting planning, marketing, writing and
operations. Email: gro.apmp@rellimc — Website: pmpa.org.

How Do You Know What To Do Next?

Do modern, quality tools provide an answer?

by Miles Free III

Director of Industry Affairs, PMPA

Published February 1, 2024

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How do you know what to do next? Seriously. Do you follow specific work instructions? Standard work? A process flow chart? Just habit? What if the usual stimulus is not present? How do you decide what to do next?
Theodore Roosevelt isn’t quoted or often remembered these days, but my grandfather shared a quote that is often attributed to Teddy: ”In any moment of decision, the best thing that you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” So, let’s just consider this quote and see how it can apply to our work, and our shops’ success.

The Best Thing That You Can Do Is The Right Thing
Well, that seems obvious. Do the right thing. Ok. What is the right thing to do? In this exact moment, how will we know? Th at is the issue. How do we know, judge or determine what is the right thing to do?
“In the first place, do no harm,” comes to mind, providing us a guard rail or signpost on what we should or shouldn’t do. If it doesn’t protect the customer — the entity that brings our business demand then it is clearly the wrong thing to do. But doing no harm could also be taken as an instruction to do nothing. And that, Teddy states, is the worst thing. So, we need more than just a prohibition on doing harm. Operating at our highest and best use is one of my foundational principles. This tells me to do, but not what to do. We can do things that are within our scope — our responsibilities and authorities. But what to do?

This is where the tools of quality really help. Standard work tells us the What, the When and the How. Standard work is by definition the current best practice for performing a process. When combined with the practice of continuous improvement, it will answer the question that most entrepreneurs mistakenly ask when trying to decide what to do next…“What can I do that will make me the most money?” Th is is absolutely the wrong question, as shown by how it worked out when employed by the folks at Enron. We all know how that ended.

After the standard work is completed, perhaps your organization has (or needs) standing instructions. “If you have time to lean, you have time to clean,” was the motto at one of my early jobs. It stands the test of time and I wonder what other similar wisdom might be added to make a list of standing instructions for our precision machining shops? 

When I set out to write this piece, I was sure that “do the next best thing” would be the inevitable conclusion. But Teddy’s dictum —“doing the wrong thing is better than doing nothing” — gives me pause. In my world, we are performers not employees, and our pay is compensation for our performance. To perform is to do something, not for us to do nothing. And certainly not for us to do the wrong thing.

So back to the initial question how do we know what to do next? In our shops, the ERP, the scheduling software, the foreman or the production planner will generally have this covered. But those moments between jobs, projects and assignments…how do we know?

On our PMPA Mastery Program visits last year, we visited several shops that were practicing not 5-S, but
6-S. What is 6-S? Well, in the United States, we all know “safety first,” so add to that the 5-S method — Sort. Set in order. Shine. Standardize. Sustain. Takes that “time to lean, time to clean” to another level, indeed. So perhaps, as shown on the shop tours we made, 6-S is indeed our industry’s standing instructions.

The initial question was how do we know what to do next? My anticipated answer was “do the next best thing.” Perhaps when we are not at work that answer will do. But frankly, it seems vague and also highly dependent on one’s own values. But having reflected on this, I am certain that when no other work has been assigned, following the 6-S method in the area for which we have responsibility just might be that “next best thing.” What do you think? I would love to get your take (my email is below.)

 

 

Author

Miles Free III is the PMPA Director of Industry Affairs with over 50 years of experience in the areas of manufacturing, quality and steelmaking. Miles’ podcast is at pmpa.org/podcast. Email Miles

 

PMPA Craftsman Cribsheet #123:
ISO (Inch) Milling Identification

Our example insert is SEKT 33AEEN.

Published January 1, 2024

By David Wynn, Technical Services Manager, PMPA

Download Cribsheet

 

 

 

 

 

 

 

Author

David Wynn

David Wynn, MBA, is the PMPA Technical Services Manager with over 20 years of experience in the areas of manufacturing, quality, ownership, IT and economics. Email: gro.apmp@nnywd — Website: pmpa.org.

STATE OF MANUFACTURING – Alabama Manufacturing

by Joe Jackson

Marketing & Events Assistant, PMPA

Published January 1, 2024

Download Magazine Article

Fabricated Metal Products Manufacturing is a subsector of manufacturing that makes critical goods from metal components.

Precision Turned Products Manufacturing is a subsector of fabricated metal product manufacturing that makes the components that MAKE IT WORK!

 

ALABAMA ECONOMIC OUTPUT

Alabama Manufacturing
NAICS 31-33
$39,630,000,000

Fabricated Metal Product Manufacturing
NAICS 332
$6,139,747,000

Precision Turned Product Manufacturing
NAICS 332721
$318,418,000

ALABAMA MANUFACTURING ACCOUNTS FOR

Manufacturing Is Productivity –16.21% of the Alabama total output (GDP)

Manufacturing Builds Businesses –3,695 manufacturing establishments in the state of Alabama.

Manufacturing Creates Jobs – 13.11% of all Alabama employees are in the manufacturing sector. (270,000 employees)

Manufacturing produces for Alabama!

  • Manufacturing is the second largest GDP Producer in Alabama.
  • Fabricated metals make up 15% of the manufacturing sector in Alabama.

Alabama is a great place for a career in manufacturing

  • Manufacturing jobs pay on average 30% over the average job in Alabama. (according to NAM.org)
  • Alabama’s top cities for manufacturing jobs are Birmingham, Huntsville and Montgomery, collectively combining over 70,000 jobs.

 

Sources NAMorg, lndustrySelectcom, US Census, statista.com
Data selected to show relative values. May not be directly comparable due to differences in sampling, analysis, or date obtained

 

 

 

 

Author

Joe Jackson

Marketing & Events Assistant, PMPA

Email: gro.apmp@noskcajj — Website: pmpa.org.