Friday, October 12, 2007

The First Thing We Do, Let's Kill all the Bean Counters

INTRODUCTION

Nope, its not the lawyers; its the "bean counters" that are ruining business. Let me give you an example, I know of a large machine-tool operation in the Midwest who used to be heralded for producing quality products. To this end, the company established an in-house school who taught their machinists how to build products, not just any old way, the company's way. The school was led by the senior craftsmen of the business who took pride in their workmanship and passed this on to the new employees. When an employee graduated from the school, a machinest not only knew his job, but took pride in his work and became loyal to the company due to its reputation. Even if an employee dropped out and went elsewhere, he would always recommend his former company's products because he knew they were built with quality. This school went on for a number of years and became a part of the corporate culture. However, in the 1980's the company hired a team of MBA's to look over their operations and make recommendations for improvement. You must remember, this was a time when cost cutting was the norm. After looking over the financial statements of the business, the management consultants concluded the school represented a costly overhead and convinced the company to close it down.

Shortly after the school's closure, the company started to experience a drop in morale, absenteeism and tardiness began to rise, and craftsmanship began to deteriorate. Product quality dropped significantly and the company began to lose customers, so much so, they eventually sold off their machine-tool operations and went into a totally new line of business. Keep in mind, prior to this the company was a leader in the machine-tool industry and generated substantial profits from it.

Obviously this story isn't unique as we have witnessed several such changes in the corporate landscape during the 1980's and 1990's. The point is, the bean counters have taken charge of business which has triggered sweeping changes in how we deal with our customers, our vendors, and our employees.

LOSING THE PERSONAL TOUCH

Under the bean counter approach to business, numbers are all that matter. Of course, paying attention to the bottom-line is always important, but this should not result in a callous way of operating a business. To me, studying the numbers is analogous to watching the dials and gauges of a machine. It is like watching the speedometer of an automobile. But if I observe an emergency vehicle approaching or see a drunk driver nearby, I am going to ignore the gauge and do what is proper. I am going to make a human decision and do what is best for my passengers and myself, as well as the other surrounding vehicles. If I only did what the dials and gauges told me, I would probably harm others.

The bean counter approach to business represents a very mechanical way of operating. Let me give you an illustration. I have a friend here in Florida who is the state sales manager for a home health business (a lucrative business for a retirement state like Florida). The company was recently purchased and a new management team put into place run by bean counters. After studying sales figures, management found a salesman who wasn't making his quota and, consequently, instructed my friend to terminate his employment. My friend knew the salesman in question and realized he was experiencing some personal problems. After considerable discussion with corporate management, he convinced them to let him (the Sales Manager) work with the salesman a while longer to see if he could help him. He pointed out to management, the alternative was to start the laborious and costly process of recruiting and teaching a replacement. Management acquiesced and granted the salesman a stay of execution. Over the next few weeks, the Sales Manager was able to work with the salesman, helped him overcome his personal problems and rebuilt his confidence. Since then, the salesman has gotten back on track and has been exceeding quota ever since.

Bean counters do not understand or appreciate the true business of a company. They make knee-jerk reactions based strictly on numbers, not on human intuition or social interaction. It is no small wonder the corporate world has become dehumanizing. I know of a medium sized semiconductor business in the Southeast who also experienced a similar phenomenon. The company was founded by a man with little formal education, but a lot of "street smarts." He took a hands-on approach to the startup of the company which grew in leaps and bounds. As the company settled into maturity, the founder began to slow down and brought in a new management team to take over the reins. His new management team had some pretty slick business school credentials but, inevitably, they were nothing more than bean counters. Under their watch, corporate growth was arrested and the company's stock diminished radically. Today, a company that was at one time a robust and thriving business with loyal customers and dedicated employees is a mere shadow of its old self.

Conducting business is more about our interpersonal relations with customers, vendors and employees, than it is about watching dials and gauges. As the famed W. Edwards Deming once said:

"Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them."

Keep in mind, Deming understood the need for statistical analysis and watching the bottom-line, but he also realized they were nothing more than the dials and gauges of the business.

CONCLUSION

Under the bean counter approach we have lost the personal touch for conducting business. Companies have become cold and calculating, certainly not the types of businesses we want to work for or with. Always remember that bean counters believe conducting business is simply manipulating numbers, not in building products or servicing customers. Yet, for some unfathomable reason, we have put them on a pedestal and expect them to competently guide our companies. But the only thing I see them guiding is our foreign competitors who take over our market share.

Craftsmanship: the Meaning of Life

When I got into the work force back in the mid-1970's it seemed everyone dressed in a suit and tie, drank black coffee, smoked their brains out, and worked their butts off. Today, golf shirts have replaced suits, herbal tea and bottled water have replaced coffee, nobody is allowed to smoke, and rarely does anyone work beyond 5:00pm. More importantly, we used to care about the work we produced; there was a sense of craftsmanship, regardless of the job.

My Brother-in-law in Cincinnati conducted me on a tour of his company's machine-tool shop years ago and showed me how he could take a block of aluminum and convert it into a high-precision machine tool. It was a pleasure to watch him work, as it is to watch anyone who knows what they are doing, be it a waitress, a programmer, a laborer or a clerk.

Quality and service used to be considered paramount in this country. If it wasn't just right, you were expected to do it over again until you got it right. We cared about what we produced because it was a reflection of our personal character and integrity. But somewhere along the line we lost our way and craftsmanship has fallen by the wayside. Why? Probably because we no longer care.

In today's litigious society, employees are acutely aware that it is difficult to be fired due to poor performance. They know they will still get paid and receive benefits, regardless of the amount of effort they put forth. Consequently, there is little to encourage people to perform better. Money isn't a motivating factor anymore. People now expect bonuses, raises and other perks to be paid out regardless of how well they perform during the year.

We've also become a nation content with doing small things. America used to be known as a powerhouse that could tackle large projects, such as building skyscrapers, designing innovative bridges and tunnels spanning substantial bodies of water, engineering transcontinental railroads and highway systems, conquering air and space travel, and defending freedom not just once but in two world wars. If you really wanted something done, you talked to the Americans and no one else. Now we get excited over iPods, cell phones, and other electronic trinkets.

Many believe Craftsmanship is in decline due to the general apathy found in today's society. Maybe. I tend to believe it is due to an erosion of our moral values. Let me give you an example. Having a child in college, my interest was piqued recently by an article describing the pervasiveness of cheating and plagiarism in our schools. It is not my intent to make a political statement here but many of the students mentioned in the article rationalized their cheating on the fact that one of our past Presidents cheated and lied under oath, and got away with it. They figured if it is okay for the Commander-in-Chief to act this way, it was an acceptable form of behavior.

Arnold Toynbee, the famed English historian, observed, "Civilizations die from suicide, not by murder." If the moral fabric of our society dies, our story is told as evidenced by other great civilizations that long preceded us. Our perspective needs to be realigned: Our personal and professional lives must be viewed as one. As Toynbee remarked, "The supreme accomplishment is to blur the line between work and play." By doing so, we identify more closely with our work and assume a greater pride in workmanship. We do not need to hear this from our boss, but rather from within. As strange as it may sound, I see Craftsmanship as being patriotic in nature; doing a good quality job is part of leading a good and honorable life and builds on the individual's esteem, the company he works for, and the country he lives in.

The biggest problem though is that we have forgotten how to manage people. The manager's primary goal is to create the proper work environment for employees to produce the desired work products. This is different than a supervisory capacity that directs how each person performs the various tasks of a job. In fact, I encourage managers to manage more and supervise less. I cringe when I see a manager try to "micromanage" either a Fortune 500 company or a non-profit organization.

Yes, people need to be trained in order to properly perform their work but following this, employees should be mature enough to supervise themselves. In the old days, management stressed discipline, accountability, and structure; three ugly words in today's workplace.

Understanding Craftsmanship

Some might say craftsmanship is a simple concept that we should intuitively know. Not true; most people today have no comprehension as to what makes up a good craftsman; they have either forgotten or it has simply passed them by. Craftsmanship can be found in any field of endeavor imaginable, be it in the product sector or service industry. Craftsmanship, therefore, is universally applicable to any line of work.

Craftsmanship is not "workmanship", nor is it synonymous with quality, although the three concepts are closely related. Let's begin by giving "Craftsmanship" a definition: "The production and delivery of quality goods or services from highly skilled workmen."

Quality relates to the absence of errors or defects in the finished product or service. In other words, finished goods operate according to their specifications (customers get precisely what they ordered). Such products are normally durable and require minimal maintenance. Craftsmanship produces quality products. In the absence of craftsmen, a rigorous methodology or assembly line process is required to produce quality goods using workers without the expertise of craftsmen. Such processes detail "Who" is to perform "What" work, "When", "Where", "Why" and "How" (5W+H), thereby assuring a quality product or service is produced. Such is the underlying rationale of the ISO 9000 certification as used by many companies today. The point is, quality is not the exclusive domain of the craftsman.

Craftsmanship is also a human trait. Some might argue a computer or industrial robot can produce quality products and are, therefore, craftsmen. However, we must remember these devices are programmed by human beings in accordance with the rules of the craftsman. As such, they are an extension or tool of the craftsman.

Craftsmanship can be found in either the overall work process or a section of it. For example, there are craftsmen who are intimate with all facets of building furniture, such as a table, a chair or desk, and can implement the product from start to finish. However, as products grow in complexity, it becomes difficult to find people suitably qualified to build them from the womb to the tomb. Consider military weapons alone, such as the complicated ships, tanks, and airplanes we now use, with thousands or millions of parts to assemble. Such complexity makes it impossible for a single person to have the expertise to build the whole product. The same is true in the service sector where different types of expertise and capabilities may be required. In other words, craftsmen have a specific scope of work. The scope of work may relate to other types of craftsmen through a chain of work dependencies, e.g., Craftsmen A, B and C concentrate on separate sub-assemblies which are eventually joined into a single product.

Attributes

So, what are the attributes of a craftsman? What makes a craftsman a craftsman? There are three basic attributes described herein:

1. Possesses the necessary knowledge and skills to perform the work.

The craftsman is an expert in his field of endeavor; so much so that he could easily serve as an instructor in the subject matter. But the craftsman is also smart enough to know that education is not a one time thing, that his world and field evolve as new tools and techniques are introduced. As such, the craftsman is a student of his profession and is constantly looking to improve himself. This is exercised through such things as continued education, routine certification, studying books and trade publications, and industrial groups. The craftsman willingly participates in trade groups, often at his own expense, in order to network with his peers.

It is Important to note that the craftsman does not need to be told he needs periodic training to sharpen his skills. Instead, he takes the personal initiative to stay on top of his game. Further, the craftsman has no problem with a periodic job review; in fact, he welcomes it for it might bring out a weakness in a skill he needs to sharpen.

2. Attention to detail.

The craftsman understands and respects the process of building/delivering a product or service and is acutely aware of the penalties for cutting corners. Earlier we discussed the need for a methodology that specifies 5W+H. The craftsman is intimate with all details of his scope of work, so much so, he could probably write the methodology himself. Further, his intimacy of the work process means he can produce a reliable estimate of time and costs to perform the work.

Although many of the craftsman's tasks may be repetitive, it doesn't mean he easily falls into a rut. Instead, he is constantly looking for new tools and techniques to improve the work process. As such, he plays the role of Industrial Engineer who is normally charged with such a task.

The craftsman's attention to detail also means that he demonstrates patience in his work effort. Again, wary of cutting corners, the craftsman must possess such patience in order to produce the product the right way.

3. Views professional life as an extension of his personal life.

The craftsman identifies with the end product which is where pride in workmanship comes from. In his mind, the craftsman has been charged with the responsibility of producing something, and wanting to satisfy the customer, puts forth his best effort to produce it. In other words, craftsmen take their work personally. This is a difficult trait to teach particularly in today's society where the focus is more on financial compensation than on the work product itself. It may sound naive, but the craftsman believes he will be suitably compensated for producing superior results.

Years ago, Dick Butkus of the Chicago Bears (NFL) confounded sports writers who could never understand why Butkus played as hard as he did year after year for a losing football team. True, Dick loved the game, but beyond that, the sports writers didn't understand one thing about the seven time All-Pro linebacker: Butkus took his job personally. It was important to him that his opponents know that they had been tackled by the best player; as he said, "When they get up from the ground I want them to say 'it must have been Butkus that got me'." Dick Butkus was a craftsman.

The craftsman has a burning desire to produce a superior product/service because he sees it as a reflection of himself. As such, the lines delineating their personal life and professional life are blurred. This is a significant characteristic that clearly separates a craftsman from the average worker. The craftsman's work is his life. He does not shirk responsibility, but rather embraces it with confidence and embosses his name on the finished product. Conversely, making a work related mistake of any kind pains a true craftsman.

Job titles are normally inconsequential to the craftsman who is more interested in delivering a quality product/service enjoyed by the customer. Instead, the craftsman takes pleasure in being touted as the best in his craft. He appreciates recognition; when someone makes a compliment about a product, the craftsman views it as a personal compliment. This too runs contrary to today's corporate world where people desperately seek recognition through simple job titles. Want someone with an inflated ego? Give them a title. Want something done right? Call a craftsman.

Productivity

"Dependable", "professional", and "resourceful" are adjectives that aptly describe the craftsman. He is not one who fabricates excuses but, rather, always finds a way to get the job done. The craftsman is typically your most productive employee. He is mindful of the concept of productivity that we have touted for years:

Productivity = Effectiveness X Efficiency

Most people fallaciously equate productivity with efficiency, which simply gauges how fast we can perform a given task. Effectiveness, on the other hand, validates the necessity of the task itself. There is nothing more unproductive than to do something efficiently that should not have been done at all. An industrial robot, for example, can efficiently perform such tasks as welding. But if you are welding the wrong thing, then it is counterproductive. Going back to our description of a methodology, effectiveness defines "Who/What/When/Where/Why", efficiency defines "How." The craftsman is well aware of the difference between the two and knows how to apply both. As such, the craftsman is in tune with his work environment and corporate culture.

So how do we make craftsmen?

Not easily. Because of the human dynamics involved with the craftsman, you will need to be a pretty intuitive manager or industrial psychologist to make it happen. Selecting suitable candidates is the logical first step. Devise an aptitude test to determine the candidate's suitability to become a craftsman. After all, "you cannot make a silk purse from a sow's ear." Aside from specific knowledge and experience in a given field (e.g., programming, woodworking, construction, accounting, etc.), here are some other important traits to look for:

* Fertility of mind - judge his ability to learn, to adapt to changing conditions, and to look beyond his scope of work. Evaluate his professional curiosity.

* Confidence - judge how well the candidate knows himself, particularly how well he knows his own limitations. He should admit his deficiencies and not fabricate excuses.

* Dedication - judge his loyalty and determination to accomplish something. What is his attendance record? What outside clubs and organizations does he belong to and how active is he in them?

* Entrepreneurial spirit - judge his personal initiative. Is he driven to succeed (but not to the point of reckless abandon)? Does he have a problem with accountability? This says a lot about assuming responsibility.

* Attention to detail - judge his ability to focus on a subject. Does he have a problem with discipline or organization? A person's dress, mannerisms, and speech says a lot about a person.

* Reliability - judge his ability to assume responsibility and carry a task through to completion.

* Resourcefulness - judge his ability to adapt to changing conditions and persevere to see a task through to completion. The candidate cannot be inflexible; he must be able to find solutions to solve problems.

* Socialization skills - does he work better alone or as a team player? His position may depend on his answer.

When you have selected suitable candidates, here are three areas to concentrate on:

1. Develop their skills and knowledge by allowing such things as: participation in trade groups, outside certification and on-going training, subscriptions to trade journals, continued education, etc. Some companies even go as far as to develop an in-house school to teach the company's way of doing things. If the in-house school is good, it will promote confidence through consistency. Even if people leave the company, they will recommend your company because they know the quality of the work produced. Supporting the education needs of our workers is not only smart, it is good business.

2. Teach them the need for producing quality work; they should become intimate with all aspects of their work process (5W+H). Further, instill discipline and patience in their work effort.

3. Change their attitude towards development so they become more focused on delivering a quality end-product. This is perhaps the most difficult element to teach. However, it can be realized by having them become intimate with the needs of the customer (have them visit or work with a customer for awhile - "let them walk in the customer's shoes"). It may also be necessary to change their form of remuneration by going to a reward system for work produced (as opposed to guaranteed income regardless of what is produced). Changing the mode of financial compensation is highly controversial in today's business world. But, as an example, can you imagine the change of attitude of today's professional athletes if they were paid based on their accomplishments (e.g., runs or points scored, hits, rebounds, etc.) rather than having a guaranteed income? Their motivation and attitude towards their profession and team would change radically.

Candidates must learn to respect their institution, the process by which they work, fellow human beings, and themselves. They must also learn not to be afraid to TRY; that they must put their best foot forward, win or lose. Bottom-line: they must learn that their work has meaning and worth. If they don't enjoy their work, they shouldn't be doing it.

"There are two things that I want you to make up your minds to: first, that you are going to have a good time as long as you live - I have no use for the sour-faced man - and next, that you are going to do something worthwhile, that you are going to work hard and do the things you set out to do." - President Theodore Roosevelt Talk to schoolchildren in Oyster Bay, Christmas-time 1898

Certification

Teaching the elements listed above probably cannot be done in one fell swoop. Further, companies simply don't have the time or money to wait for the craftsman to be produced. Instead, they must understand the human spirit needs to be cultivated and be allowed to grow over time. Because of this, it is strongly recommended that an in-house certification program be devised specifying what the candidate should know and what skills and talents he should demonstrate. This should be divided into classes of progressive expertise; e.g., apprentice, intermediary, and craftsman. The ancient builders in Egypt, Rome, and Greece understood this concept and devised such classes of workmen. Other disciplines and schools follow similar tactics (the various degrees or belts in martial arts for example). Each degree is based on specific prerequisites to master before moving on to the next level.

An in-house certification program has the added nuance of making people feel special which greatly enhances their self esteem. If they are made to feel like a vital part of the company, regardless if their work of a large magnitude or trivial, they will strive to do what is best for the company overall, not just themselves. Consequently, their work adds meaning to their life.

There is one pitfall to all of this; today's "go-go" management style fails to see how craftsmanship adds value to the company. In fact, there were companies back in the 1980's that shut down such programs simply to reduce costs. As a result, quality suffered, repeat business was lost, products were more in need of repair, absenteeism on the job escalated, etc. Want value? How does a loyal customer base who has confidence in your products or services sound? And what effect would employee harmony have, particularly if they believed in the work they were producing? It would be mind-boggling, all because we had faith in the human spirit to produce superior results.

A final note: craftsmanship is not a one time thing. After it has been instilled in people, it has to be cultivated and perpetuated. If a manager slips even for a moment, it will go right out the window and it will take time to bring it back to life. As for me, I like to post motivational reminders kind of like the one recently spotted in the Hickey Freeman manufacturing facility in New York, "Excellence is Tolerated."

Thursday, October 11, 2007

Home Machine Shops

A profession or hobby that uses a power-driven machine tool such as a lathe or drill to shape metal, is known as machining. The person specializing in its use is called a machinist. A machine shop that is run from home is called a home machine shop.

Most machining operations are those that remove metal from an item or those that add metals. There are typical tools that are used in home machining. A lathe is a machine tool that creates sections in circles by rotating a metal work piece. A drill or punch press is used to remove metal in the form of a hole. Some other tools that are used in machining are saws, grinding tools and milling machines.

Advanced machining operations make use of electrical discharge, electro-chemical erosion and laser cutting to shape metal work pieces. Many car restorers have good home workshops and a wide array of tools. There are also individuals who build up a home workshop with the scheme of building some project in the long run. They eventually get sidetracked into building the machine tools and their accessories themselves.

There are magazines that provide advice on ways of solving problems being faced in the home shop. It is also possible to get information about a used lathe and other machine tools, in case the owner's manual is missing. These magazines and sites have a list of operating instructions on the various tools used. They also give detailed information about various manufacturers and their details.

Information about various new technologies that are being used, are also discussed. New techniques such as computer aided manufacturing processes, which have brought about a revolution in the machine shops, are also discussed. Home shop machinists can use this type of technological software to get the desired product results.

Adverse Health Effects Of Oil Mist In Machine Tool Industries

Manufacturing environments that use oil-based cutting fluids often put workers health at risk. Applications such as CNC machines, screw machines and surface and centerless grinders produce an oil mist from the coolant used to keep cutting tools from overheating. Oil mist, also known as cutting oil or metalworking fluid, is an oily liquid aerosol dispersed in the air. Fine oil mist hangs in the air for long periods, similar to tobacco smoke.

It has been estimated that up to one million workers in the United States are exposed to oil mist. The health effects of exposure to oil mist have been studied for several decades. Many Epidemiological studies have indicated that long-term exposure to oil mist can lead to increased susceptibility to several types of cancer.

The following diseases have been associated with exposure to oil mist: skin – oil acne, contact dermatitis, and photosensitive allergic dermatitis; respiratory system – rhinitis, bronchitis, bronchial asthma, lipoid pneumonia, lung fibrosis and lung cancer; scrotum – benign and malignant tumors. According to the National Institute for Occupational Safety and Health (NIOSH), potential symptoms of exposure to high concentrations of oil mist include eye and skin irritation, shortness of breath, vomiting, fever, rapid heartbeat and a burning sensation in the mouth, throat and stomach.

Industrial workers are exposed to oil mist by three avenues; skin exposure, aerial exposure and ingestion. The most frequent route of exposure is the skin. Occupational health experts believe that over three-quarters of all occupational diseases are caused by skin contact with oil mist. Oil mist by itself can be dangerous, but it can also quickly become contaminated with foreign material and chemicals which are aerosolized into mist. Many of these contaminants add to the hazards associated with oil mist.

In today’s highly competitive global economy, manufacturers feel pressured to increase productivity. Making machines work harder and faster often produces even more oil mist in the workplace. Even though production schedules may increase, profitability may suffer due to work-related illnesses. Sick employees don’t help the bottom line, they lower productivity and increase overhead costs.

Wednesday, October 10, 2007

Prevent machine tool fires

This pamphlet outlines Firetrace's CNC fire detection and suppression system. The system uses the company's custom Fire Detection Tubing (FDT), which can snake through critical areas of a cutting, milling or grinding tool or encircle the base of an EDM machine's ram, hovering just above the oil's surface. The FDT detects fires at the hottest point and activates the system, which delivers any number of extinguishing agents to the working area.

Machine Tool Gear Racks are built for optimal precision

High-Precision Gear Racks are precision manufactured in controlled environment, achieving tooth quality of DIN 4 with total pitch error of less than 12 microns over 1 m length and parallelism tolerance of less than 15 microns. Pitch can eliminate need for electronic compensation, and parallelism accommodates drives with low backlash without need for preloading. Racks come in straight and helical versions - in 5, 6, 8 and 10 modules - with linear force capacities to 45,000 lb.
ATLANTA Drive Systems, Inc. is pleased to announce a new range of High-Precision Gear Racks developed specifically for machine tool applications requiring the highest levels of precision and power. This new rack range is precision manufactured in a controlled environment, achieving a tooth quality of DIN 4, with total pitch error of less than twelve microns over a meter length and a parallelism tolerance of less than fifteen microns.

The high precision pitch of the racks can eliminate the need for electronic compensation and the high precision parallelism allows for drives with extremely low backlash without the need for preloading.

These racks are available in straight and helical versions, in modules 5, 6, 8 and 10, with linear force capacities up to 45,000 lb. Comprehensive & accuracy inspection reports, as well as patented measuring and assembly aids, are available on request.

Monday, October 08, 2007

Status Quo Rules - predictions for the coming year in the machine tool industry and metalworking business

In January it's customary to look into our respective crystal balls and try to divine what fortune or misfortune is likely to befall us. One interesting aspect of this exercise is that in spite of our confidence that some of our guesses will be right or close to right--and indeed some will--experience tells us the completely unanticipated blind-sides are lurking as well. The following are some of the things that I think will happen as we cruise through 2001, officially the first year of the new millennium.

Call me a wide-eyed dreamer, but I do think we will inaugurate a new president of the United States on January 20. Obviously, half of us will be happy with the new guy, and half of us won't be. But, I see we the people coming together, as is our custom, to support our new leader--at least until he screws up, which I also predict will happen.

I think that some consolidation of the machine tool industry will continue, as too many builders chase too few customers. Moreover the increasing demands of globalization require companies to join together to create a competitive level of critical mass (read size) to play the global chess game.

On the other side of the coin, I think some builders are going to look hard at some of their product offerings and lop off non-viable machines in an effort to define and focus more resources on their core competencies.

As far as processing technology, I see a continuation of the trend of more operations performed on a single machine tool platform. Better programming tools and increased performance of the metalcutting modules will represent continued refinement of this multiple process class of machine tool.

I see the market drivers for these developments coming from shops looking to increase the performance of each spindle in the shop. The shortage of qualified workers will continue to plague the nation's shop floors in 2001, making the need for process automation, reduced setup times and reduced workpiece handling even more acute.

Everyone is interested in what business levels will be in the upcoming year. Most guesses seem to indicate a flat to moderately up year for metalworking overall. One way to keep tabs on metalworking's health is to monitor the plant capacity utilization index. It reflects a percentage of the theoretical metalworking capacity of the nation. If the number is 80 percent or above, it indicates growth. It's a helpful index. Now, let's sit back and see what happens.

Machine tool consumption up slightly - Trends-Statistical Data Included

CHICAGO - U.S. machine tool consumption totaled an estimated $162.37 million in December, up 11.7 percent from a revised $145.4 million the previous month but 46 percent below $300.51 million in December 2000, according a joint report by the American Machine Tool Distributors' Association, Rockville, Md., and the Association for Manufacturing Technology, McLean, Va. "December machine tool orders were indicative of a yea that the machine tool industry is happy to close," said Ralph J. Nappi, AMTDA president. Machine too consumption totaled nearly $2.65 billion in 2001, down 34.1 percent from more than $4.02 billion the previous year. "Despite the decision by Congress to shelve the stimulus package, manufacturing indicators are not suggesting we are on the road to recovery yet," Nappi said. "The only good news about our economy is we are likely at the bottom."