DACA Machine & Tool Co. Receives Boeing Silver Supplier Certification

DACA Machine & Toot Co., Inc., Dutzow, Missouri, recently was named a Silver Level Certified Supplier by Boeing at a ceremony held at the company's facility on June 28th.

Representatives from Boeing and Missouri Enterprise joined the family and friends of DACA staff for the event.

DACA, which offers CNC machining & turning, welding, sheet metal fabrication and waterjet cutting, was recognized for its quality, delivery, affordability and customer satisfaction excellence.

The award is part of Boeing's Preferred Supplier Program. The "Silver" status requires a quality rating above 99% and a delivery rating of at least 95%.

This award rates DACA in the top 2% of the aircraft manufacturer's worldwide supplier base.

"You've joined a rather elite group of suppliers," noted Daryl Yochum, Boeing's director of product operations in St. Louis. "Boeing works with more that 13,000 different suppliers and only two percent have ever achieved silver certification."DACA President Phil Pecaut accepted the award along with Perry Pecaut, vicepresident, Art Pecaut, QC manager.

Phil and his wife, Norma, purchased the firm in 1975.

Today the company's 40 employees operate in a 3 1,000-sq.ft. facility in Dutzow, four miles north of Washington, Missouri or 50 miles west of St. Louis.

DACA's equipment includes: 10 CNC machining centers (including two 5-axis); a multi-head waterjet cutting system; three CNC turning centers (featuring Swiss type & twin spindle "Y" axis capability); and a full line of CNC sheet metal equipment including a shear, turret punch, brake presses, sheet leveler and automatic deburring equipment.

Five-axis tool cutter and grinding machine—J. Schneeberger, booth B-7053 - Grinding/Abrasive Machining Equipment - advertisement - Brief Article

The Corvus GDS with new wheelhead design features a double-ended direct drive wheel spindle for up to six wheels and is vertically mounted on the rigid, box-type column. The company's fixed-table bed-type design is said to allow for a wide range of options, such as a fast A axis for cylindrical grinding, dressing devices, wheel sticking, tool supports and optical profile checking.

For large tools, the machine is available in 17", 26", 44", 67" and 118" X-axis configurations, as well as 13-, 20- and 34-hp spindles. Automatic loading options include two or four pallet loading robots for large production runs, carousel loaders for heavy tools mounted in IS050 toolholders or low-cost internal loading solutions. It is also available with a special sixth axis on the spindle head for grinding flat, helical and cylindrical broaches, as well as standard shop tools.

Williams Machine & Tool Co., Installs New Mori Seiki NV5000

Williams Machine & Tool Co., Inc., Galena, Kansas, has recently installed a new Mori Seiki NV5000 vertical machining center.

The 23-year-old company offers CNC machining, precision grinding, heat treating, black oxide coating and magnesium phosphate coating.

Started by Dennis Williams (as the sole employee) in the family garage in 1979, the company has grown into its current 41,000-sq.ft. facility with 42 employees.

The company maintains a family feeling with Dennis' sons Kelly and Brian, daughter Denise Titus, and numerous other family members on staff.

The new CNC vertical machining center is part of Williams Machine & Tool's ongoing effort to utilize the latest technology to improve quality and turnaround. The company already has numerous pieces of CNC equipment with auto bar feeders, gantry loaders and pallets.

"We were looking for size and speed when we picked the Mori, Seiki," noted Kelly Williams, vice president. "The NV5000 met our needs with its rapid traverse rate of 1,653/ipm, quick tool change time (2.6 seconds) and large spindle range 31.5" x 20" x 20".
Besides the new vertical machining center, the company's machining area also has: 12 CNC lathes; five CNC vertical machining centers; two 32mm CNC Swiss lathes; 11 screw machines; three turret lathes; two engine lathes; and a wire EDM.

The grinding area has five CNC grinders, 15 conventional grinders (including centerless and blanchard) and various honing and gearing equipment.

The heat treating area has 21 pieces of equipment including internal quench furnaces, draw furnaces and an induction hardening machine.

Welding, sawing and inspection equipment round out the assortment.

Williams Machine & Tool serves customers across the country and around the world in such industries as hydraulic (internal components); agriculture; construction and consumer goods.

"Our success has come about by being a family-oriented business that caters to our customers' requirements," noted Kelly Williams. "We can take an emergency part order in the morning, machine it, finish grind it, heat treat it, inspect it and ship it out at the end of the day."

Machine tool consumption off by 35% in first quarter.

March U.S. machine tool consumption totaled $182.66 million, according to AMT - The Association For Manufacturing Technology and AMTDA, the American Machine Tool Distributors Association. This total, as reported by companies participating in the USMTC program, was up 6.0% from February but down 42.2% from the total of $315.80 million reported or March 2001. With a first quarter total of $513.62 million, 2002 is down 35.2% compared to the same period in 2001.

These numbers and all data in this report are based on the totals of actual data reported by companies participating

Security Tool Can 'Frisk' PCs

Automated IP address management has been used for years to streamline the administration of IP addresses, but one small company and a couple of its customers have discovered a new use for the tool: to create an extra layer of endpoint security and access control.

MetaInfo, a spinoff of Check Point Software Technologies Ltd., is working with customers and partners to use the point at which users are given access to the corporate network—the IP address assignment—as a mechanism to stop and "frisk" the machine.

This lets the company ensure that the device is legitimate and complies with corporate security policies, according to Grant Asplund, president and CEO of the Seattle-based company

The role of balance in high speed finish boring: Precision boring is particularly vulnerable to unbalance, but not every high speed boring application

A single-point boring tool with adjustable cutting diameter may be used for the tightest-tolerance cutting that a given machining center is likely to perform. At the same time, this tool is probably the most inherently unbalanced object the machine will ever use to take a cut.

This irony has real consequence as spindle speed increases, because the centrifugal force resulting from unbalance increases as the square of rotational speed. Raising the speed from 4,000 to 8,000 rpm, without any change in tooling, causes centrifugal force to quadruple. Raising the speed of the same process to 12,000 rpm raises the force from unbalance to 9 times what it was at the original speed. Because of the exponential increase, an effect that was once negligible may be amplified to the point that tight tolerances can no longer be held.

One company providing variable-diameter precision boring tools is KPT Kaiser of Elk Grove Village, Illinois. During the past decade, as maximum spindle speeds for all classes of machining centers were increasing significantly, this company introduced updated versions of its tools better suited to boring at high rpm. Among the newer versions are adjustable-balance models that use moving counterweights to compensate for the change in unbalance that comes from changing the radial position of the cutting insert But not every boring application--not even every high speed application--is a candidate for one of these balanceable tools. Vice president of engineering Jack Burley says that tools with adjustable balance account for only 10 percent of the company's sales of the variable-diameter tooling. Tools that are not balanceable by means of a moving counterweight are nevertheless engineered to be balanced at the middle of the tool's adjustable diameter range. And for most finish boring applications, just this level of balance is enough.

Understanding unbalance as it applies to single-point boring is useful for shops that want to machine precision holes at faster cutting speeds. In addition, the same understanding is also useful in a larger context. Shops moving to higher spindle speeds for various applications are often concerned about the potential effects of unbalance. The example of high speed finish boring, which combines a highly asymmetric tool with a very light depth of cut, can provide a useful benchmark for these shops. The extreme set of conditions shows the extent of the impact that unbalance can have on the performance of the process.

Mr. Burley says a common mistake in high speed machining is to give too little consideration to balance. Another common mistake, he says, is to give too much consideration to balance. Higher speeds do make it worthwhile to use high-quality tools and toolholders manufactured to tight balance requirements, but where end mills and other inherently symmetrical tools are concerned, just choosing quality tooling is probably enough to ensure that balance is sufficient. Trying to improve balance further through some off-line adjustment to the tool is likely to be overkill, resulting in a change in centrifugal force that's tiny compared to the force from the cut. The reason is that single-point boring tools are more prone to require balance adjustment precisely is that the light depth of cut makes a small unbalance force more significant by comparison.

And even at that, the effect of unbalance would not be considered significant to everyone. Comparison testing at 10,000 rpm between balanceable and non-balanceable single-point tools showed a difference in hole roundness error of about 5 microns (see Figure 1). Many machining operations could tolerate error of a comparable magnitude. But in precision boring, error of this magnitude has to be addressed.

Pullback CNC collet chucks—Royal Products, booth E-2146 - Machine Tool Components and Accessories - Brief Article

This line of pullback-style CNC collet chucks has been redesigned to provide a lighter and more streamlined shape, while maintaining high strength and rigidity. Benefits of the new design include reduced wear on machine tool spindle bearings and improved tool clearance, the company says. A built-in coolant slinger and internal O-ring seals provide protection from coolant and chips. Accuracy is guaranteed to be under 0.0003" TIR. Collet chucks are often used in place of three-jaw chucks for CNC turning applications such as bar feeding, small diameter work (under3") and high-volume productions runs. All of the company's CNC collect chucks include a machined drawtube connector for quick and easy installation. They are stocked in all popular A-mounts and are available for the following collet styles: 5C, 16C, 3J, S-20, S-26 and S-30.

Also on display will be the rest of the company's line of metalworking accessories, Filtermist mist collectors, and Albrecht precision drill chucks and toolholders.

Turning/Machining Cell—Takisawa USA, Booth A-8741 - Takisawa Machine Tool Company Ltd - Brief Article - Product Announcement

The company will introduce a new automated production cell composed of the Model TT-200 (C type) turning center and the model MAC-V10/APC machining center.

The production cell starts with the TT-200 turning cell with a type C loader/feeder system. This is a self contained, two spindle, dual ten-tool turret turning center, integrated with a gantry load/unload system and a turnover unit, fed from a 16-pallet work feeder from the left side and discharged on the right side, into the Model MAC-V10/APC machining center. The Model MAC-V10/APC is a vertical column vertical machining center (6,000-rpm spindle, 20-station tool magazine, that has servodrive indexing) fed by an automatic, revolving, double pallet changer.

The ultimate mass machine: make a food scale your number-one bodybuilding tool - Nutrition

Gaining muscle or losing fat means being vigilant about what you eat, in quality and quantity. The key to increasing muscle mass is to consistently take in more calories than you burn over time, but not so many calories that you get fat. Your ability to strike this balance can be greatly improved by using a scale to weigh your food. This tool may be exactly what you need to help you accurately add muscle mass or lose bodyfat.

SCALING TO NEW HEIGHTS Food scales aren't just for bodybuilders who have not yet learned to gauge portion size--many top bodybuilders, including Dorian Yates, Jay Cutler and Dennis James, weigh their food. These guys have learned that although a guess may be close, a measurement is precise. For professional bodybuilders, placings at shows are all about precision of bodyweight and composition.

Without a food scale, most people seriously underestimate portion sizes. The U.S. Department of Agriculture's servings are actually very small. By USDA standards, one half cup of berries is one serving of fruit and one serving of meat is the size of a deck of cards--clearly bodybuilders eat more than that as a serving. Package labels can also be deceptive. For example, most bags of potato chips list about 120 calories "per serving" on the label. It's only when you look more closely that you see that a serving is only two ounces and that there might be seven servings in a whole bag. However, an accurate food scale never lies and won't distort your perceptions of portion size or how many calories you're really getting.

EYEBALLING: A SKILL TO MASTER

It takes only a few weeks with a good food scale to learn to accurately gauge bodybuilding portion sizes by inspection. Learning to eyeball portion sizes accurately is key when a scale isn't available or convenient. No matter what system you use to find out what's in your food, the first thing you need to know is how much there is--the weight of the food--in a way that's convenient enough to use 24/7.

Through consistent use of a scale, you'll get accustomed to the visual cues of a portion size. In the long run, you'll be able to make much more accurate estimations when measuring the weight of your food isn't an option. That will lead to more accurate control of your physique in terms of both muscle mass acquisition and bodyfat management.

Web-based Machine Tool Monitoring - Systems and Software

The company has released the Internet version of the JobPack Machine Tool Monitoring System based on a Web server. Now machine status, real-time events and historical reports of performance and efficiency can be viewed anywhere across the globe via Internet PCs or PDAs, Up until now, engineers and managers had to be on a specific PC, connected to their network to get data. That has changed with the data being resident on the Web server in an HTML format.

Integrate TLC Tool Management - ITC Integrated Systems Inc.'s software with Infimacs II ERP suite for machine shops - Brief Article

The TLC Tool Management System from ITC Integrated Systems, Inc. is now integrated within the Infimacs II ERP suite. It allows companies to more easily enforce discipline and management control over the flow of tools between one or more tool cribs and the shop floor. Without having to build an interface, Infimacs II users can schedule and reserve critical tools and kits for upcoming production. Calibration instructions and periodic maintenance schedules can be analyzed and enforced. Issues and receipt transactions are logged and appear on reports.

The system provides scheduling and maintenance information based on a tool's usage and duration between repairs. Inspection and warning reports inform the tool crib manager when to pull a gauge, fixture or other item for maintenance.

Versions of the system are offered for small, medium and large organizations, and users can migrate from the smaller versions through upgradesThe Independent Tool Code Standard (ITCS) numbering system standardizes the tooling nomenclature to accommodate both shopfloor users and automated tracking systems. An ITCS database and instructional documentation are provided.

Moving Day - Mitsubishi Machine Tool - Brief Article

Mitsubishi Machine Tool has relocated its North American headquarters to Addison, Illinois. Mitsubishi has closed the Hopkinsville, Kentucky, location and concentrated customer support in Addison. The company hopes the location will enhance customer support and communication with distributors

Global industry profiling: Machine tool industry

ABSTRACT: As their businesses globalize at increasing rates, managers need frameworks for analyzing industry activities on a worldwide basis. In this paper, a framework for global industry analysis is presented, using the machine tool industry to illustrate how industry overviews, global consumption and production analyses can be used to gain worldwide perspectives on industry behaviors. Breakdowns by company, segment, region and country markets help strategy formulation and resource allocations in the worldwide marketplace. Obtaining the right sorts of information is the key to insightful global analyses. The globalization of industry trade associations and on-line business news services are major sources of worldwide industry developments.

As world trade and investments have become common in increasing numbers of industries, the old tools of industry analysis have become less relevant. As companies have gone global, so the need to examine industry activities on a worldwide basis has become more acute. Various writers have looked at particular aspects of global industries (e.g., Porter, 1986) but the task of profiling global industries has largely been ignored. Contemporary treatments of industry analysis have traditionally stopped at national borders (e.g., Thompson and Strickland, 1999). But as resource allocations are increasingly made on a worldwide basis, companies should have frameworks to highlight the global dimensions of their industries.

The objective of this article is to present a framework for global 4industry analysis. The machine tool industry is used to illustrate the major facets of worldwide industry analysis, and to provide a framework managers can use for strategy crafting activities.

WHAT MANAGEMENT NEEDS FROM GLOBAL INDUSTRY ANALYSES

Managers need global overviews of industries to craft their international resource allocation strategies and to gain insights about market developments and competitor activities. Such overviews should include the following:

* Global Industry Overviews show how industries are structured from a national perspective (which countries are major players), a company perspective (leading firms), and where country and product expertise lie on the global market spectrum.

* Global Consumption Analyses show worldwide patterns of demand in aggregate, and at regional and country levels. Additional insights can be gained by looking at: market sizes and machine tool expenditures per capita; key market profiles; and country sales by major product groupings.

* Global Production Analyses show which countries are major producers and how firms deploy their resources to maximize their global sales impacts. Figure 1 summarizes the strategic significance of these analyses.

Vision-Based Tool Presetting Machine - Brief Article - Product Announcement

The Smile V300 vertical automatic cutting tool presetting machine provides consistent, user-independent measuring of virtually any type of cutting tool geometry, according to the company. It is installed on plant floors next to CNC machine tools.

The machine can accommodate tool length (Z) of 15.72" (400 mm), radius (X) of 4.88" (125 mm), and diameter of 9.76" (250 mm). Heidenhain measuring scales, one hand control linear axis movement and electronic axis fine adjustment assure precise positioning of the cutting tool

Vision-Based Tool Presetting Machine—Zoller, Booth D-4521 - Brief Article

The company will introduce a new vision-based tool presetting machine. The Smile V300 vertical automatic cutting tool presetting machine provides consistent, user-independent measuring of virtually any type of cutting tool geometry, according to the company. It is installed on plant floors next to CNC machine tools.

The machine can accommodate tool length (Z) of 15.72" (400 mm), radius (X) of 4.88" (125 mm), and diameter of 9.76" (250 m). Heidenhain measuring scales, simple one hand control linear axis movement and electronic axis fine adjustment assure simple, rapid and precise positioning of the cutting tool. The machine permits consistent presetting of boring bars to a nominal position, with convenient right hand orientation adjustment.

The company integrated a calibration edge to the left of the spindle nose in all adapters, eliminating the need for a separate zero gauge to calibrate

A 50-taper high precision spindle is standard, and ISO 50 steep taper, HSK and straight-shank adapters are available, as are 30, 40 and 45 taper adapters. For presetting turning tools, such as VDI tooling, an indexing device permits rapid 4 x 90-degree spindle positioning.

Capabilities of the system include 35x magnification; display accuracy of 0.0002" (0.005 mm); measurement in radius or diameter mode; and storage of 99 adapter zero points band at least 300 tool data records

Machine tool Data Transmission Unit - Systems and Software

The company announces its new Data Transmission Unit-III (DTU-3), which is said to provide a reliable method for DNC plus the ability to collect machine events, both automatic and manual, in one shop-hardened Ethernet device.

Thc unit collects data from the CNC with options for operator manual input. Data is presented via a Management-Administration module, featuring realtime status, event timeline and historical analysis reports via Microsoft Excel about what your machinery has been doing, what it hasn't been doing and why.

Simmons Machine

Simmons Machine Tool Carp, now offers Mobiturn[R] Wheel Truing Services[R]. The company provides seasonal and/or incremental maintenance wheel truing to customers in their own facilities,

Arm your machine tool with a portable CMM - Rapid Traverse

FARO Technologies (Lake Mary, Florida) is best known for its FaroArm portable, articulated-arm CMMs that are used to measure large parts, weldments, assemblies and other components that would be difficult or impossible to bring to a conventional CMM. Now the company has introduced a smaller "personal CMM" designed expressly for the machine shop. Called the FARO Gage, the measuring device has an articulating arm with a 24-inch reach that can reach all exposed features and surfaces of a part without having to be repositioned. A magnetic base allows the unit to be mounted right on a machine tool (see photo at right) or a surface plate on a close-by inspection bench. The measuring arm offers 0.0002-inch accuracy, which reflects the increasing need of shops to hold "tenths" tolerances.

Part measurements are recorded on a laptop computer equipped with the company's Cam2 Measure software developed for feature measurement/inspection and CAD-to-part comparisons where every measured part can be compared to engineering design files. The software is user friendly enough that it can be used by machine operators with no computer skills as a step-by-step guide through an inspection routine. It not only tells the user what area of the part (top, bottom, left side, and so forth) to measure next, but it also tells him or her where and how to position the probe for the reading. The software can also be used for advanced measurement and statistical analysis such as SPC and geometric dimensioning and tolerancing (GD&T). The system records all of the user's measurements automatically and creates comprehensive reports The gage allows the part to be inspected right on the machine, which not only saves time but also avoids the problems that come with removing the part from the machine, inspecting a critical feature and trying to put the part back in the fixture exactly the way it was before. It can be used for a variety of measurements that might otherwise require several conventional hand tools, eliminating their costs and maintenance. It also eliminates the variation in measuring results from hand tool to hand tool and from operator to operator. The gage's articulated arm enables it to measure features and relationships between features that would be impossible to measure with conventional hand tools. Plus, automatic recording of the inspection data eliminates "pencil and paper" errors by operators responsible for maintaining SPC charts.

Right-Now Results

Perhaps best of all, the machinist can check the part immediately after it is machined--or pause to check a feature while the part is still in the chuck or fixture--right at the machine and replace a worn insert, change a tool offset or in some other way make an immediate correction to avoid making bad parts. The operator is also spared having to leave the machine, carry the part to the quality department, and wait in line for time on the CMM.

According to the company, in shops where a machine tool stands idle for 1 hour per shift (at $75 per shift, 3 shifts per day) because it must wait on an operator who is busy inspecting the previous part, the FARO Gage will pay for itself in 4 months. It takes up no extra floor space, an important consideration for crowded shops, and it easily can be moved from one machine to another

Software automates tool inventory tracking

Mentioning the state of Nebraska might conjure images of farmland, goldenrods and cornhusks. From a manufacturer's point of view, the state is home to facilities of all sizes, some of which are located in small towns.

Nestled in a farming community of 1,500 people, MetalQuest Unlimited (Hebron, Nebraska) is a 40-person shop serving the petroleum, energy distribution, hydraulics, agriculture, electronics and automotive parts sectors. At its inception in 1996, the company had one multi-axis CNC lathe. It has since added a variety of multi-functional CNC machining centers and lathes.

Desiring a better method of managing its tooling inventory, the company turned to ToolBoss from Kennametal Inc. (Latrobe, Pennsylvania). Scott Harms, president and founder of MetalQuest, became acquainted with ToolBoss, an e-storage tool inventory control system with imbedded tool management software, when attending the International Manufacturing Technology Show (IMTS) in September 2000. By July 2002, MetalQuest had purchased a one-bay unit. Six months later, a second bay was added, and in early 2004, the company purchased two additional bays. Today, using its four-bay unit, the company stores more than 2,500 tools and controls keys to other cabinets that contain hundreds of other items. Capabilities such as tracking tool inventory, raising operator accountability and providing data about tool usage have provided the company with a means to save time and money. As another result of using the new system, the company reports that machine operators now have an orderly place to store inserts, tools, tool parts and unrelated tools that are commonly used in the shop.

Another benefit is the ability to store multiple items, including non-Kennametal tools, in one drawer, and in a more organized fashion than before. The company has noticeably improved its real-time knowledge of inventory levels. As a result of this upgrade, machine operators can locate tools in 30 seconds, compared to 5 minutes of searching through drawers, toolboxes and canisters on the shop floor. Likewise, it is virtually impossible to run out of tools because restocking of inserts, drills, taps and end mills occurs on an as-needed basis.

Customers also have the option to use job status or "setup" sheets, as well as the optional bar code reader to accelerate setup and production times. This can reduce probable operator errors, such as choosing an incorrect tool for a particular job.

MetalQuest has integrated ToolBoss with its setup sheets, which instruct operators as to how to prepare machines for specific jobs. The appropriate inserts, toolholders, and toolholder parts needed are conveyed to operators. To obtain the necessary tools, users can search or scroll down the computer screen.

"The program was well received on the shop floor," says Mr. Harms. "Within a couple of days, our personnel had familiarized themselves with how the system works and had integrated it into their routine."

During the past several years, the company has transformed itself from a shop producing maximum orders of 500 pieces to one that now produces 500-piece minimum orders. Additionally, its operator-to-CNC lathe ratio to has been reduced to 0.5:1.

The company speculates that if its operations resembled a traditional custom-machined parts manufacturer, it would need to employ ten additional machinists.

The Pentium class computer is loaded with Microsoft Windows 2000 to run Kennametal's Automated Tool Management Solutions (ATMS) software. The menu includes a real-time ordering option that complements the system's tool kitting, presetting and tool assembly management features.

MetalQuest says the network card allows it to maintain the database on its existing network for checking stock, doing analyses and placing orders from other computers.

Although the company has a four-bay setup, each system can control as many as ten bays in one unit, all of which are programmed to store an infinite number of items.

Tool presetting ensures tool quality while saving time

The Edon, Ohio, plant of Metaldyne (Plymouth, Michigan) produces one of the most complex parts on an automobile: the steering knuckle. Irregularly shaped with a variety of surfaces and holes to mill, drill and bore, steering knuckles provide a machining challenge that usually requires some finesse to meet.

Automobiles have either two or four knuckles, which are typically made of steel, cast iron or aluminum, as part of the suspension. Production volume, as well as product quality, is an important consideration when machining these components. To achieve adequate production levels for several knuckles, the plant employs dual-spindle machining centers. Each spindle performs similar operations on left- and right-hand knuckles located in a fixture. Toolholders are shrink-fit HSK 100 and HSK 80.

"We felt that shrink-fit holders were essential," says Chris Filoso, Metaldyne manufacturing engineer. "When compared to collet chucks, hydraulic chucks or other types, shrink-fit holders offer the best possible concentricity and gripping power while eliminating the expense of parts such as collets."Because each spindle performs mirror image operations, our operators must match the tooling used in the twin-spindle machining centers to within 20 microns," he adds.

Previously, the company believed that a shrink-fit tool changing machine and a separate presetter would accomplish adequate tool changing and setting. However, this two-stage process proved to be time-consuming because one machine was needed for shrinking/unshrinking the tool, while a second device was required to measure and preset the tool. Other cons of this arrangement were that the tool setting accuracies mandated by plant standards could not be achieved, and the tool presetter could not automatically write tool data to the Balluff chip embedded in the company's holders.

Anticipating that adequate accuracy and time savings would be realized, the plant acquired a redomatic heat-shrink tool presetter and measuring machine from Zoller Inc. (Ann Arbor, Michigan). Including features such as a Z-axis measuring range of 23.58 inches (600 mm) and a diameter of 15.72 inches (400 mm), the three-axis CNC vertical tool setter and measuring machine is now employed by the company to preset, heat shrink, cool and measure tools in one automated process.

Heat shrinking to a nominal length is only possible when one unit performs the entire process. The system has a 10 kW capacity for shrink fitting shank diameters ranging from 0.12 inches to 1.26 inches (3 mm to 32 mm), and in lengths as large as 600 mm, with heating times varying from 5 to 10 seconds. Cooling requires approximately 30 seconds or less with reliable water-cooled cooling adapters, according to plant engineers.

The machine used at Metaldyne incorporates a vision system that provides automated measuring and inspection of each tool in the plant's arsenal. Two CNC-driven linear slides--vertical and horizontal--position the optic carrier, and the spindle rotation permits focusing on the tool.

"The image processing technology permits automated measurement of tool length, diameter, corner radius and two cutting edge angles," explains Mr. Filoso. "The software detects cutting edges almost instantly, and then the camera in the optic carrier transmits the image of the tool edge to the control and screen."

Mr. Filoso comments that, in addition to ease of use, the system offers various benefits. "The machine can set any shrink-fit tool to the required length within [+ or -] 10 microns," he reports.

"To shrink clamp a tool to a nominal length, our operator need only input data, such as the nominal length, toolholder diameter and tool material (HSS or carbide), via an easy-to-comprehend human-machine interface," explains Mr. Filoso. "Each tool contains an ID number to enable users to retrieve and use this data later on."

The induction-heating coil is positioned over the holder, where the coil then heats the holder. The tool is loaded into the holder, and the CNC-driven tool length stop is said to ensure correct tool positioning--for example, tool tip to gage line. The operator selects one of five cooling adapters and positions it over the holder. After this step, the tool is checked again automatically, and measurement results are transferred to the tool identification chip.

"The entire procedure is carried out in about 2 minutes," says Mr. Filoso, "which includes changing the tools and achieving the accuracies we need." Any correction values are stored and can be used in the next shrink-clamping process

Grinding Machine targets automobile industry

ertical Generating Grinding Machine, Model S 250 G features cast iron machine bed and light metal subassembly, consisting of spindle with electric drive, absolute position encoder, and tailstock. Spindle offers output of 48 kW and max speed of 20,000 rpm. Siemens CNC control system and magnetic encoder ensure synchronization between tool and workpiece. Modular gantry loader allows grinding machine to be directly incorporated in existing production lines.

At EMO 2005, the trade fair for machine tools, production systems and technologies taking place in Hanover this year, Samputensili is presenting this new compact high-capacity machine - guaranteeing gear manufacturers top levels of productivity (above all in the automobile sector).

Bologna, 26th September 2005 - Samputensili, one of the leading companies in the gear-cutting machine and tool industry, is presenting the new S 250 G generating grinding machine at EMO 2005 in Hanover, the trade fair for the entire mecha

Machine Tool Controller Software—CamSoft Corp - Brief Article

The company will be demonstrating Version 12 of its PC-based CNC machine tool controller software, CNC Professional, which now has the ability to do eight axes of simultaneous coordinated motion. The company also will be debuting its latest PC-based CNC machine tool controller software package titled CNC Plus, CNC Plus includes configurable operator screen, limited configurable G and M codes, diagnostic software, servo tuning software, visual logic process editor, automatic machine maintenance reminders, remote machine monitoring, ActiveX and DLL source code, (G40, G41, G42) tool comp, (G94, G95) ipm and ipr for lathes, (G74) lathe peck drilling, (G96, G97) constant surface feed for lathes, (M98, M88) dubroutine calls, threading and tapping, backlash axes compensation, leadscrew axes mapping compensation and advanced mid-program start, allowing the program to begin anywhere.

Information Model for Machine-Tool-Performance Tests - Statistical Data Included

This report specifics an information model of machine-tool-performance tests in the EXPRESS [1] language. The information model provides a mechanism for describing the properties and results of machine-tool-performance tests. The objective of the information model is a standardized, computer-interpretable representation that allows for efficient archiving and exchange of performance test data throughout the life cycle of the machine. The report also demonstrates the implementation of the information model using three different implementation methods

This report specifies an information model of machine-tool-performance tests in the EXPRESS modeling language [1]. It is based on the information model described in the Data Specification for Machine Tool Performance Tests, Version 2.3e [2]. The objective of the information model is a standardized, computer-interpretable representation that allows for efficient archiving and exchange of performance test data throughout the life cycle of a machine tool. It serves as a basis for generating database schemas, database calls, and neutral file formats. Performance test data of machine tools is used for machine acceptance, performance tracking, software compensation, and to evaluate the capability of a machine to manufacture a part to specified tolerances.

The information model specifies the test procedure, the test conditions, the equipment, the measurement set-up, and the test results. The model can be used to describe the properties and results of a performance test at a level close to the raw measurement data. The information elements also enable the user to re-create the set-up, equipment settings, and measurement procedure. The model captures key information on the large variety of possible test set-ups and measurement procedures, which is essential for the interpretation of the test results. A subset of the specification can be used to summarize the test, focusing on performance parameters that are estimated from the measurement results.

The information model addresses machine tool properties that are verified by performance tests. It complements machine-tool-specification data that is not tested, e.g., the machine configuration, the workspace, weight and size of the machine, tool holder standard, auxiliary devices, etc. [3].

The information model is intended to serve as the starting point for a future, standardized representation. The model is expected to change and grow based on further review and future implementation experience.

This report is structured as follows: In the remainder of Sec. 1 the problem statement and scope of the information model are defined; modeling language and implementation methods are identified. In Sec. 2 the information model is presented. In Sec. 3 three sample data files are provided. In Sec. 4 software tools that support the implementation of EXPRESS information models are briefed. Section 5 presents the conclusion of this report. An appendix is provided for describing a set of EXPRESS keywords in Sec. 6. The final section lists the references used in this report.

1.2 Problem Statement

Today's manufacturing industry greatly relies on computer technology to support activities throughout a product's life cycle. Efficient and distributed access to the performance data of machine tools is important in manufacturing. The results of performance tests are used for machine acceptance, predictive maintenance, error compensation, and to evaluate the capability of a machine to manufacture parts to specified tolerances. A critical enabler to the efficient interchange and storage of performance data is a unified information model for the results and properties of performance tests.

Next Best - National Tooling and Machining Association provides referral service for machine tool purchasing - Brief Article - Column

In my February 2001 column, I lamented the fact that our industry doesn't have the equivalent of a Consumers' Guide for machine tools. Responses included several suggestions about other approaches to getting the inside scoop on what machine to buy.

Matt Coffey, president of the National Tooling & Machining Association (NTMA), reminded me of a referral service among NTMA's membership of 2,550 companies. Each year, NTMA members are asked to report any new equipment or software that they have purchased in the prior year. Members willing to talk about their experiences with equipment or software are listed on the members-only section of NTMA's Web site (www.ntma.org) where other members can find them and get in touch. Sounds like a great way to get some honest opinions and one of the many good reasons for joining the NTMA.

According to Tom Charkiewicz, president of MTI Systems, Inc., many of his customers are using the company's Costimator estimating and quoting system to compare manufacturing operations on different models of machining centers, lathes and turret punch presses. The program recalculates from machine to machine such factors as machining time, labor and machine handling elements. Comparison can be made of setup time, time per tool to set up, chip time, tool change time, mm. and max. rpm, horsepower and various cost factors. For more information, TecRight Machine Tool Sales, a distributorship and consulting firm in Rockford, Illinois, has developed a nifty computer program that automatically ranks machine tools by numerical score based on a user-created database of specific design criteria and pricing terms. Called TecScore, the program makes sure the buyer pays adequate attention to technical specifications and capabilities rather than emotional issues and sales hype. The person to talk to about this program is Marjorie F. Palm, president of TecRight, (815) 332-2317.

I'm sure I'll hear more suggestions on good ways to get machine tool comparisons in lieu of a definitive buyer's guide. All of these suggestions are welcome, and all reinforce my original point. Your best bet is to begin with a thorough understanding of your own needs, wants and goals. Nobody can offer you a substitute for this basis to any buying decision.

Bringing The Internet To The Machine Tool

The Internet integrates the factory floor with customers and suppliers, allowing true Enterprise Production Management. The concept of "virtual product" replaces the conventional practice of warehousing inventory.

To be competitive today, manufacturers must manage not only their own internal operations well, but they must also understand and manage all aspects of their external environment that affect production. Real-time two-way communication with the factory floor via the Internet gives managers up-to-the-minute information when they need it, wherever they happen to be. In industry, the Internet promises to connect the enterprise with suppliers and vendors enabling a new paradigm in manufacturing-Enterprise Production Management (EPM).

The use of the Internet will soon force companies to manage production across the extended enterprise. Ordering online is allowing customers to purchase a product tailored to their needs. This custom ordering is shifting manufacturing away from one order of 1,000 units to a 1,000 orders of different variations of a product. Maintaining inventory in a warehouse is no longer possible because the product must be made-to-order. However, the product must be delivered to the customer in an acceptable timeframe so that it feels like the product came from a warehouse. This concept of manufacturing the product after the order is received is called the "virtual product" because the product does not actually exist until after the customer places the order.

In order to create virtual products, it is essential that a company practice EPM. To do so requires a company to have all of its systems connected down to the level of the machine tool inside its divisions and to its extended enterprise, its suppliers. When an order is received, the ERP system communicates electronically with all machines in the supply chain. This new communication of manufacturing information takes supply chain management (SCM) to a new level, a level beyond just electronic purchasing and invoicing. A customer order results in an immediate capacity assessment of what machine time is available in the supply chain. Machining instructions are automatically downloaded to the appropriate machines so that they can begin part production even as the order processing is taking place. Electronically linking the ordering process to the manufacturing process is the link that will enable companies to stock virtual products instead of maintaining inventory. The connection between business-to-business sys tems and the factory floor may be referred to as factory to business or F2B.

Most of the investment in e-commerce over the past 5 years has been focused on improving the connection between company divisions for the purpose of Enterprise Resource Planning (ERP). Other e-commerce investments include connecting vendor and supplier accounting systems electronically and connecting electronically to customers to improve customer service. Today's ERP systems now manage a company's machines and materials in a static manner and proceed to schedule with specific times and dates, often relying upon the efforts (often heroic) of human managers to keep things running. These initiatives ignore connecting to the devices that make up the bulk of the company's capital investment, the machines on the factory floor. These machines contain a wealth of information about what is happening right now, yet this information is not accessible and as a result cannot be used to make critical decisions.

THE CNC AS BARRIER OR ENABLER

To achieve EPM, all machines in the factory must be connected and able to broadcast their status. In the realm of discrete manufacturing, most metalworking shops employ machine tools with computerized numerical control (CNC) systems. Although more than 2 million CNCs are now in production, most have only basic serial communications at low data transfer (baud) rates. The serial connection itself uses proprietary protocols for communication. No communications standard has ever been developed because the CNC has up until now been viewed as a downstream device that processes G-code and controls motion on a machine tool or robot. Most of the machines in production today were created before the Internet explosion took place.

There are several barriers for the introduction of the Internet to the factory floor. No one in an office environment would imagine using a computer that is 8 or 9 years old. In 1993, the so-called 486 central processing unit provided the fastest personal computer on the market. The Pentium-based P60 and P90 processors were introduced in 1994. Office computers are routinely replaced every 3 years, an action justified by the increased productivity available to of the user.

Choate Machine & Tool - Catalog Showcase

Our four Color 2004 catalog is packed full of the best synthetic stocks and accessories available today for all of your shooting needs, Featured in this issue is our new target/varmint stock along with all of our other bolt action, semi-auto and shotgun stocks Our products carry a lifetime warranty. $2.00.

St. Louis NTMA Chapter Meets at Mittler Brothers Machine & Tool

The Greater St. Louis Chapter of the National Tooling & Machining Association (NTMA) held its September meeting at Mittler Brothers Machine & Tool in Foristell, Missouri on September 9th.

Over 70 attended the event. Tours of the multibuilding facility were conducted. The tours included an opportunity to-visit the company's NASCAR Craftsman Truck shop and to see an actual 700HP engine run on a Dyno.

The dinner's main course was prepared on a custom BBQ cooker produced at Mittler Brothers.

During the meeting, new members were introduced, long-time members were recognized and announcements were made about upcoming conferences regarding manufacturing.

Mittler Brother's Mike Mittler gave a brief presentation about the company's history and its current status.

Machine tool sales rise

Orders for machine tools rose 3% in June compared to year-ago sales, representing the first monthly gain in machine tool sales versus the prior year period since November 2000, according to the latest figures available from the American Machine Tool Distributors' Association (AMTDA, Rockville, MD) and the Association For Manufacturing Technology (AMT, McLean, VA).

US machine tool sales reached nearly $245 million, up 3.3% over $236.8 million reported in June 2002, and an increase of 67.1% over May sales of $146.36 million, according to the June US Machine Tool Consumption (USMTC) report. However, industry year-to-date sales of $952.6 million still trailed last year's YTD total of $1.16 billion by 17.9%. The figures in the USMTC report are based on actual data reported by companies participating in the USMTC program

Machine Tool Components And Accessories - Smith-Renaud - Brief Article

HOLD-ROL bearings (right) are used on a Center-less grinder rebuilt with an upgraded regulating wheel and drive unit mounted en it.

Improving Centerless Grinders

One way to improve machine tool performance is to replace older equipment with newer equipment. However, a less costly alternative is to upgrade or remanufacture existing machines. This approach often allows companies to obtain features that would be prohibitively expensive on new machines.

Smith-Renaud (Cheshire, Connecticut) rebuilds Cincinnati Milacron (now Cincinnati Machine) centerless grinders, as well as machines from other manufacturers. These machines are commonly used to finish grind round parts (such as bearings), fasteners, taps and other tough-to-grind parts where machine stability improves the process.

"We have been rebuilding centerless grinders for 20 years," says Tim Emerson of Smith-Renaud. The company has learned that a key to upgrading centerless grinder performance is replacing the regulating wheel spindle bearings. The company used to replace the bearings with duplicate OEM bearings. But then Smith-Renaud started looking at other solutions. What it found were HOLO-ROL cylindrical roller bearings from Kaydon Corporation (Muskegon, Michigan). "We first learned about the bearings at a technology exchange seminar and decided to give them a try," Mr. Emerson says. Due to their performance characteristics, HOLO-ROL bearings offer advantages over conventional bearings in this application. The OEM bearings would require periodic adjustments by an experienced technician, but the HOLO-ROL bearings do not.

HOLO-ROL bearings use hollow cylindrical rollers instead of solid rollers. These rollers are radially preloaded, giving them more radial stiffness than conventional ball bearings. Two performance characteristics create this greater stiffness. All of the hollow rollers are in tight contact with the bearing races, and the rollers all work together to distribute the load. Preloading ensures that roller contact deflection against the bearing races is taken up before a load is applied to the bearing.

Bearing lubricant can flow through the centers of the hollow rollers, dissipating heat more effectively than solid rollers. The bearings therefore run cooler, improving precision, permitting higher operating speeds and extending lubricant life. The hollow rollers also weigh less than solid rollers, so they reduce centrifugal forces at high operating speeds. As a result, contact stresses are lower, and operation is smoother.

These bearings have half the radial runout of an ABEC 9 precision class bearing, so they reduce the radial runout of a regulating wheel spindle. This improved performance is due to three factors:

* Preloading eliminates all internal clearance in the bearing;

* The hollow cylindrical rollers absorb variations in the bearing raceway surfaces and maintain a constant rotating center; and

* The hollow rollers are compressed to the same radial height, and they rotate as if they were all exactly the same diameter.

These bearings can be used for regulating wheel and grinding wheel spindles, but the most significant performance improvements are achieved by upgrading the regulating wheel spindle bearings. The improvements achieved by using HOLO-ROL bearings on regulating wheel spindles are such that Smith-Renaud offers upgrade kits for those wishing to install the converted assembly.

HOLO-ROL bearings improve centerless grinder productivity in numerous ways. First, their lower radial runout permits greater stock removal rates, which reduces cycle time. Second, fewer wheel dressings are needed due to the greater stiffness and decreased vibration of the bearings. Plus, the reduction in frequency of dress means longer wheel and diamond life. Finally, these bearings are lubed for life and sealed when they are assembled. No grease fittings are used, and no adjusting is needed.

Decreased radial runout with these bearings equates to less movement of the regulating wheel shaft and spindle. This reduced movement results in improved part geometry and roundness. Additionally, the surface finish on the part surpasses that of a grinder using conventional bearings.

"HOLO-ROL bearings are more expensive than the OEM replacement bearings that we were using, but the performance benefits are worth the extra cost," Mr. Emerson says. "The bearings reduce maintenance and improve the grinder's performance. From a performance perspective, not only do you reduce scrap with these bearings, but you can also grind more aggressively, so you can make parts faster.

Tool time: how one entrepreneur built a better screwdriver—and used smart networking to get it into Sears stores nationwide

THE ENTREPRENEUR: Allen Kenner, 43, of Ashland, Oregon

PRODUCT DESCRIPTION: The Grip-N-Drive is an upgrade from the typical ratcheting screwdriver. Kenner patented the product's rubber grip mechanism: It spins freely in either direction, but then deforms to grip down on the screwdriver's handle when squeezed. A package of five Grip-N-Drive screwdrivers (two Phillips and three slotted screwdrivers) sells for $19.99 at Sears stores nationwide under the Craftsman label.

STARTUP: Approximately $15,000 for a patent and a working prototype

SALES: Pratt-Read, the Bridgeport, Connecticut, company that licenses the product, expects Grip-N-Drive sales to reach between $1 million and $5 million this year. Kenner gets a percentage as royalties.

THE CHALLENGE: Getting your innovation on the shelves of a major retailer that prefers not to buy from one-line, underfinanced inventors

1. PUSH YOURSELF TO DEVELOP THE ULTIMATE DESIGN. "The handle grips on my early prototypes could spin, but not smoothly," says Kenner, who started developing the product in 1998. "Some people who tried them had a ho-hum reaction to the product. I realized that the Grip-N-Drive needed a grip people could get excited about--one that could spin faster and [more] easily in either direction with a single twist. Once I produced the easy-twist screwdriver, everybody who tried it wanted one."

A big "wow" factor helps, but simplicity also counts because it appeals to people. "I believe in the SMAC tenet--'simple machines are cool,'" says Kenner. "People fall in love with inventions that are simple to use, simple to understand and that work really well. The Grip-N-Drive exemplifies SMAC, consisting of only two nylon snap-rings and a special rubber grip mounted on the screwdriver. Due to the extreme simplicity of the Grip-N-Drive, I had concerns that my idea would be stolen if I manufactured overseas. Fortunately, the simplicity of the design, in combination with the automated product process used to manufacture screwdrivers, allowed me to have the Grip-N-Drive produced in the U.S."

2. MAKE SURE CONSUMERS LIKE THE PRODUCT. "I got feedback on the design and conducted market research by showing my product to friends at parties and other places in town, always getting signed nondisclosure agreements," Kenner says. "I asked successful businessmen for advice and, through networking, found local people who had worked in the hand-tool industry. They provided valuable information and reinforced my belief in the viability of the Grip-N-Drive. Once I felt comfortable with the manufacturing-to-retail price ratio, I began looking at options for producing and marketing my screwdriver."

3. DEVELOP A STRATEGY. Kenner wanted to license his product to a company that could sell it to Sears. "I decided I would have the greatest chance of success approaching a small to midsize company. I also wanted to keep travel expenses down and work with a company I could trust. A local manufacturer, Professional Tool Manufacturing LLC in Ashland, Oregon, which sells its Drill Doctor, a drill-sharpening machine, through Sears, met my criteria."

4. MAKE NETWORKING A PRIORITY. Having trouble getting your foot in the door of a potential licensor? If possible, have someone who already knows people there recommend your product. "Rather than going directly to the company, [in 2002] I asked a friend with a connection [to Professional Tool] to arrange an introductory meeting by explaining to one of the owners that he knew someone with an exciting invention."

5. DON'T SIGN A DEAL TOO SOON. Kenner signed a nondisclosure agreement with Professional Tool, but no other agreement. When Sears requested that some changes be made to the product's design that would raise upfront tooling costs and production costs, Professional Tool graciously backed out of the deal and let Pratt-Read, a leading private-label supplier, take over. By October 2004, the Grip-N-Drive was being sold in some Sears stores, and a nationwide rollout soon followed

Machine tool consumption slumps - Materials Outlook - Brief Article - Statistical Data Included

CHICAGO -- U.S. machine tool consumption totaled $156.17 million in November, down 16.6 percent from a revised $187.27 million the previous month and 46.6 percent below the $292.5 million in November last year, according to a joint report by the American Machine Tool Distributors' Association, Rockville, Md., and the Association for Manufacturing Technology, McLean, Va. "Congressional dithering over economic revitalization has added uncertainty to an already weak capital investment environment," said Don F. Carison, AMT president. "Congress must focus on a revitalization package that will create jobs and encourage productivity-enhancing investments. Congress needs to take action on a meaningful economic stimulus package when it gets back to work next week." Machine tool consumption in the first 11 months of last year totaled nearly $2.5 billion, down 32.9 percent from more than $3.72 billion in the same year-earlier period.

Report Card Time - report on machine tool companies available - Brief Article

The 35th annual report on the performance of major machine tool companies, The Machine Tool Scorecard, is now available. It provides data by rank, company, country, machine tool sales, total sales, net profit, number of employees and sales per employee. Rankings are based on worldwide sales of machine tools; numerical controls sold by machine tool builders are also included. It covers 238 companies from 11 countries, which appear to have machine tool sales totalling $31.3 billion. Increases in sales were reported by 86 companies. The bulletin is distributed by AMT-The Association For Manufacturing Technology

Come Together - acquisitions and partnerships among machine tool companies - Brief Article

Machine tool companies are buying one another. Machine tool companies are partnering with one another. This activity may seem unsettling . . . as if the number of players in the industry is in decline. However, the more important consideration is the potential of this consolidation and partnering to augment the productive capacity of shops. Viewed in this light, what we are seeing today represents a natural development from the very premise on which the machine tool industry was founded. This trend of consolidation is one we should have seen coming, oh, 100 or so years ago.

Information technology at least partly explains why this coming together seems to have picked up in the last few years. With computers moving electrons in place of humans moving paper, organizations are easier to integrate. This is true outside the machine tool industry, as well. Try to name an industry today that's not consolidating.

Among machine tool companies, strategic purchases or partnerships can help end users by saving them from having to deal with multiple sources. A recent partnership provides an example. A lathe maker, a machining center maker, and a robot maker all recently announced they would partner to offer complete cells to the wheel-making industry through a single point of contact. Presumably, a given manufacturer of wheels might have chosen equipment comparable to what these three companies have to offer anyway. But the partnership saves this manufacturer the time and effort necessary to deal with three different suppliers. The wheel maker gets to offload that hassle

Compare this benefit to the reason the machine tool industry got its start in the first place. Over a century ago, manufacturers routinely created for themselves the machinery needed to make their own products. Machine tool companies offered what was a novel idea at the time--the promise to let manufacturers outsource machine production.

Now, by achieving consolidated sources for related equipment, some machine tool companies are taking another step in the same direction. In addition to producing the machines, these companies now can also offer to eliminate some of the management burden associated with having a variety of machine tools in a single shop. In other words, this is one more way machine tool companies let shops devote less resources to determining how they will produce . . . and more resources simply to producing

Monarch Machine Tool Web site is simple and effective

Cortland's Monarch Machine Tool keeps it simple and effective.

The main page (www. monarchmit.com) features a black and

red border for links and a white background for text. Monarch

opens its page with a single-paragraph description of its

business followed by more specific information. Each specific

description is linked to a corresponding section. The site links

are also arranged in order of usefulness, listing classes of

machines. The linked pages offer further specificity, down to

individual machines. Monarch includes necessary specifications

for each model as well. The company's contact information

features several methods, including an online form. The

contact form requests relevant information in order to avoid general inquiries that may waste both parties' time. The

technical section offers documents in Adobe Acrobat format

and Monarch offers a link for visitors who don't already have

the program. For companies outside the area, Monarch lists its

distributor-network contact information. Like the rest of the

site, it's thoughtfully arranged, so finding the number of a

Monarch distributor in China or Singapore isn't a problem.

Monarch also includes a page of its history that now covers

nearly a century of metalworking. For owners of older machine

tools, Monarch has a page of its upgrade services. This site,

like the products shown, looks fairly simple, but is really

precision made.

Small diameter boring bars—Criterion Machine Works, booth 3039

Criterion Machine Works' 0.250" diameter solid carbide boring tools feature a length tolerance of [+ or -] 0.010" to minimize downtime when changing a tool during a production run. The tools are precision-ground flat to ensure that the cutting edge is centered. According to the company, this characteristic can maximize boring results, promote longer tool life and further contribute to reduced downtime.

Twenty-seven different diameter and length configurations are offered. Minimum bore diameters range from 0.140" to 0.200". Depending upon the bore diameter, the tools can bore holes as deep as 1.250".

Online training for Swiss-style lathes

The dwindling supply of talented machine tool operators is one of the metalworking industry's most conspicuous dilemmas. It has been especially difficult to find employees who are qualified to operate multifunction Swiss-style lathes, let alone more straightforward CNC mills or turning centers. Some machinists, though comfortable operating typical CNC equipment, may not even understand how a multi-axis Swiss machine functions.

Recognizing that the key in cultivating a knowledgeable workforce lies in intuitive training methods, Index Corporation (Noblesville, Indiana) teamed with Oxygen Education (Indianapolis, Indiana) to develop a graphics-driven online training course for the Traub line of CNC Swiss-style lathes. The course is based on an interactive "virtual machine" that includes graphical representation of all significant machine components, subsystems and the CNC.

The first half of the chapter-based course describes the various machine components and demonstrates how they interact with each other. In these initial chapters, students are able to observe various machine components and their functions, which might not be possible when viewing an actual machine in action. By first displaying how a guide bushing, bar feeder or lubrication system works, for example, students will understand what the machine is before learning how to operate it in the second half of the course.

The machine operation section of the course covers the most routine tasks, including wiping barstock before installation, as well as more advanced duties such as presetting tools. The training CNC makes accessible and adjustable every button, knob and switch found on the actual machine control to allow students to play out "what if" scenarios.

Upon completing each chapter, students must pass an exam before advancing to the next chapter. This provides shop management with a mechanism to gage student performance, while allowing students to learn at their own pace. After completing the course, students can return to any portion of the course for review. Unlimited 24/7 access anywhere an Internet connection is available offers shops an alternative to having employees travel for their machine training. Index intends to create similar training courses for other machine models, including its multi-spindle machines.

Milling Cutter provides high feed rates

Available in 2.000-4.000 in. body diameters with 4-corner insert design, Metal Slash Mill directs cutting forces into machine spindle to achieve feed rate up to 0.078 ipt. Unit is available with CS3000 CVD-coated grade for high-speed milling of carbon steels and stainless steels, ACZ310 PVD-coated grade for general-purpose milling of die steels and cast irons, and ACZ330 PVD-coated grade for general-purpose milling of steels and stainless steels.

********************

Mount Prospect, IL - (August 24, 2006) Boasting feed rates of up to 0.078" IPT, the new Metal Slash Mill from Sumitomo offers high productivity milling.

The unique design of this milling cutter directs cutting forces into the machine spindle to achieve high feed rates even in low rigidity conditions.

A four-corner insert (screw on assembly) design yields low tooling costs per part. Sumitomo customers are already experiencing the benefits. "With the Sumitomo Slash Mill we realized incredible cycle time reductions by applying this high feed mill to our current manufacturing processes. Some of our cycle times were reduced by a matter of hours, actually seeing our long, complex parts made in half the time! With the unique design of this tool and it's reliable, longer insert life, it's a win-win for our shop. We can increase machine capacity without relying only on added operators or added hours, " stated Brian Shoning, machining center groupleader, Vermeer Mfg. Co.

U.S. stock standard Metal Slash Mill bodies are available in 2.000" - 4.000" diameters.

The Metal Slash Mill is available with CS3000, a CVD coated grade for high-speed milling of carbon steels and stainless steels, the ACZ310 PVD coated grade for general purpose milling of die steels and cast irons, and the ACZ330 PVD coated grade for general purpose milling of steels and stainless steels.

Germany hosts the world of machine tools and metalworking technology - Exposition mondiale de La Machine-Outil - Brief Article

One of the main reasons that EMO tends to peak when it goes to Hanover is that Hanover is in Germany; Germany is the second largest consumer of machine tools in the world (behind only the United States). Germany is also one of the leading producers and exporters of machine tools in the world. The German machine tool industry has been especially strong in this year and last, so the appearance of EMO in Hanover is very timely for its host country. German participation in this year's EMO accounts for about 45 percent of the number of exhibitors and share of the booth space.

U.S. participation is down this year compared to past shows. Recent reports indicate that 27 U.S. exhibitors will be displaying their products, about 22 fewer than in 1999. Weak domestic sales and the strong dollar have apparently discouraged a better showing. However, most visitors from the United States go to EMO to size up technology offerings from overseas suppliers.

Although machine tools are the main focus at EMO, it also covers manufacturing systems, precision tools, automated flow of material, computer technology, industrial electronics and accessories. In short, the fair covers manufacturing technology in its entirety. The product categories include machine tools for cutting, forming, parting and eroding; sheet metal and wire working machines; machine tools for thermal electrochemical and other processes; electronic controls; components for flexible automation; CAD/CAM; assembly systems and industrial robots; material flow and warehousing; industrial electronics, sensor technology and diagnostics; precision tools; measuring tools, testing and measuring equipment; abrasives; coolants and lubricants; welding, cutting, hardening, and heating equipment; and many types of mechanical, hydraulic, electrical and electronic accessories for metalworking.

Machining's role in making cancer "history": a machine shop in a new cancer treatment center produces components to precisely guide proton radiation t

Medical and metalworking technologies meld in an effort to heal in Houston, Texas. The two disciplines are working in concert to make cancer "history" at M.D. Anderson's new Proton Therapy Center, located in the heart of the Lone Star State's largest city.

One of only four proton radiation centers in the United States, M.D. Anderson's $125 million facility will serve more patients than any of the other centers, treating 3,500 per year when it reaches full capacity. In order to support such an aggressive treatment schedule, the facility houses its own machine shop that includes four networked CNC vertical machining centers (VMCs).

The primary duty of these machines is to produce two patient-specific components for the center's gantries, or radiation beam delivery devices. One of these components is a brass aperture that receives a window to shape the beam to match a tumor field's outline. The other is an acrylic compensator block into which is machined a cavity to shape the beam to release its energy at the appropriate depth within the patient's body. The ability to manipulate the beam in a way that damages a cancerous tumor without harming nearby healthy tissue is what makes proton therapy such a precise and powerful cancer treatment.

Most hospital-based machine shops are equipped with toolroom-type mills and lathes that are used to produce one-off fixtures or instruments. The shop at M.D. Anderson's proton therapy center does have such equipment for that type of work. However, it is first and foremost a production shop, as John Barr points out. Mr. Barr, the shop's supervisor, selected most of the shop's machine tools and related equipment. Four Mazak Nexus 410 VMCs will bear the brunt of the shop's production work. When the center reaches full capacity, those machines will produce thousands of apertures and compensators each yearMODERN MACHINE SHOP was invited to tour the center and its dedicated shop a few months in advance of the official opening in June 2006. During the visit, Mr. Barr and Paul Wisdom, a deft machinist who is currently "on loan" from M.D. Anderson's nearby instrument shop, explained the role that machining technology plays in support of an effective cancer treatment procedure.

Protons Pack A Punch

The 94,000-square-foot facility is topped by an open, inviting entrance with numerous offices and examination rooms. However, the building is an iceberg of sorts, because 42 feet of it is below ground. Located in this bunker are four proton radiation treatment rooms and the compact machine shop that measures 36 by 44 feet. These rooms are surrounded by 8-foot-thick concrete walls and a ceiling that's 12 feet thick. The subterranean location and beefy enclosure are required to contain stray radiation during treatment.

The apertures and compensators are the final two components in the subatomic beam delivery process. An injector first strips protons from the nucleus of hydrogen atoms and delivers them to a synchrotron, or particle accelerator. The synchrotron, essentially a magnetic "racetrack," accelerates the protons in a vacuum to an energy level approaching 250 million electron volts. The protons then travel at nearly light speed to rotating beam-delivery gantries located in three of the four treatment rooms. Though the huge gantries measure 35 feet in diameter and weigh 190 tons, they rotate smoothly, quietly and precisely 360 degrees around a patient and direct the proton beam to 0.5-mm positioning accuracy. The aperture plates (as many as four identical 2-cm-thick plates may be required) and compensator are inserted into the gantry's snout to shape and focus the beam as it exits the gantry en route to the targeted tumor.

The protons enter the a patient's body at a low energy level, peak their energy level within the tumor and effectively stop there so that surrounding healthy tissue is left unharmed. Apertures and compensators are matched sets specific to each patient and each different beam delivery angle into a patient's body. While no two sets of apertures and compensators are alike, the process for creating these components is the same for all.

Machining From A CAT Scan

The brass aperture plates and acrylic compensator blocks are first squared and face milled to size. The brass is machined dry; the acrylic is machined using high-pressure coolant. One corner of each component receives a notch, which serves as a key to ensure that the components are properly oriented when installed in a gantry snout.

The shapes of the aperture window and compensator cavity are determined by a model of the patient's tumor, which is obtained via a computed tomography scan, or CAT scan. The CAT scan captures the tumor volume one thin 2D slice at a time. The 2D images, taken at discrete depths throughout the tumor, stack together to create what is essentially a 3D model of the tumor. The electronic tumor model is part of each patient's file in the IMPAC treatment planning system, which the shop can access via the network.

American investment continues its slide - The World Machine Tool Output & Consumption Survey

Machine tool purchases by United States metalworking factories have been declining since 1998. The latest annual survey shows the trend continuing in 2002, with the one-time undisputed leader now in fourth place behind China, Germany and Japan.

For most of the 1990s, the United States led all other countries in annual installations of productive new machine tools.

But the capital investment slump that started a few years back continues, and in 2002 the United States consumed only $3.3 billion, down one-third from 2001. A year ago it had moved out of first place among consuming countries for the first time since 1993.

It's some consolation that the decline is widespread among the world's industrialized countries: Of the top dozen purchasers of machine tools, all but one had a lower investment in machine tools than in the year before.

The one exception in that pervasive cutback is China. Last year it actually increased its purchases by 20 percent, to the point where China is now the world's leading consumer of machine tools. It bought an estimated $5.7 billion worth of the machines in 2002, outspending Germany's $4.8 billion and Japan's $3.4 billion. (See Top Consumers table.)

The international statistics come from the 38th World Machine Tool Output & Consumption Survey (WMTO& CS), conducted annually by Gardner Publications, Inc., publisher of this magazine. The study measures output, trade and consumption from major industrialized nations.

The term "consumption" is a derived statistic. It's what economists call "apparent consumption," and it's calculated by taking a country's local production, subtracting out the value of its exports, and adding the value of its imports. So in the case of the United States, domestic builders shipped $l.9 billion and exported $0.9 billion. At the same time, importers brought in $2.3 billion, so apparent consumption for 2002 comes to $3.3 billion.

The United States isn't likely to see a quick rebound. New orders, which predate consumption deliveries by anywhere from a week to many months, continue to slip.

Orders for new machines, tracked by an unconnected series of monthly reports from the two machine tool trade groups, fared poorly again last year. The latest U.S. Machine Tool Consumption (USMTC) survey of participating member companies shows total orders written during the year 2002 at 19 percent below the previous year.

The most recent monthly figure in that series, for January of this year, is also 19 percent behind the bookings posted for January 2002. That ledAlbert W. Moore, president of AMT -- The Association for Manufacturing Technology, which conducts the orders survey, to comment about America's productive capacity. "Over half of U.S. manufacturers are working with machines made in the 1960s and '70s," he says.

"The only way they can regain international competitiveness is to allow hem to fully expense he purchase of equipment in the year that it s acquired," Mr. Moore continues. "The clock s ticking for American manufacturing; the time for action is now!"

While the monthly USMTC reports orders for future consumption within the United States, the annual Gardner Publications' WMTO&CS collects statistics on actual shipments in 28 countries around the world.

Biggest Output

In addition to calculating consumption, the World Survey also lists countries by the output of their domestic machine tool industries. Germany ranks at No. 1 with $6.7 billion in 2002 shipments, slightly ahead of Japan's $6.4 billion. Italy's machinery sector, characterized by many small firms rather than a few big ones, is third, followed by the Peoples Republic of China and then the United States. (See Top Producers table.)

The total output of the surveyed countries in 2002 came to an estimated $31.0 billion, or about 14 percent less than those same 28 participants produced in 2001. The largest bloc of producers is the CECIMO consortium of mostly Western European countries. Its 15 members shipped a total of $16.1 billion, or 52 percent of the world's output.

The survey also tracks export activities. In general, the leading producers are also the top exporters, the top five of which are Germany, Japan, Italy, Switzerland and Taiwan. The latter two export more than 80 percent of their domestic production.

China's spending spree on machine tools in 2002 puts it at the top of the list of importers, which also includes the United States, Germany, Italy and South Korea. The American market continues to be highly import oriented, even though imports dropped one third from the previous year. The $2.3 billion worth of overseas-built machine tools it brought in has the U.S. market with a 70 percent import penetration (imports as a percentage of consumption). Other highly import-oriented markets include the United Kingdom (89 percent) and Canada

Our machine tool industry--changer or changee?

he United States machine tool industry is experiencing unprecedented change. Our historic business models are no longer applicable. Machine tool consumption has declined by more than 60% since 1997, causing ruthless and seemingly endless hyper-competition. Industrial globalization, outsourcing strategies, customer demands for more services, and the relentless advance of technology are heaping even more stress on machine tool companies.

The predominant feeling in our industry is that the good ole days are a distant memory, never to return again. Let's get real. Are we actually challenging ourselves as an industry, asking the right questions and analyzing root causes? What are we doing, other than lamenting and waiting for the economic turnaround? Are there deeper issues negatively affecting our industry long term we are not confronting?

Let's face some facts. In 2003 China is projected to be the number one machine-tool-- consuming nation in the world. Germany will be second and the United States will plummet to third. Why? Because other countries are aggressively building and protecting their manufacturing base while we let ours slip away. Even a robust United States economic turnaround will not bring back the substantial number of manufacturing jobs permanently lost to other countries in the past several years. Do we want to return to number one, or are we satisfied with third?

More facts. The United States machine tool industry is in danger of losing its technology and manufacturing process knowledge base. The machine tool business has been so difficult for so long that several industry icons have closed their doors forever. Some of the best people in the industry have tossed in the towel and left the business to work in other industries. Further mortgaging our future is our difficulty in attracting young applications engineers, service technicians, and sales personnel because of perceived poor career opportunities.

I believe the writing is on the wall. The US is losing countless manufacturing jobs as we continue to migrate from being a producer-nation to being a consumer-nation. This shift weakens our economic foundation, and makes us vulnerable to ever changing geopolitical scenarios such as we now face with oil-- supplying nations. The end result, if we take no counter measure, will be the decimation of the US machine tool industry, and the rendering of our prospects for future growth, prosperity, and manufacturing competitiveness DOA.

High-volume bar machine

The Romi CNC 30 G features hydraulic collet chuck and automatic parts unloading, as well as "U" shaped cross-slide gang tooling with T slots for toolholder positioning. Interactive programming screens make the machine equally adept at mixed-volume, short-run production, as well as dedicated high-volume applications, says Romi Machine Tools, Ltd.

The machine occupies a 94.5" x 86.6" footprint. Other specifications include maximum bar capacities of 1.625" (round), 1.250" (hex) and 1" (square): a maximum bar length of 47.42"; and a maximum cutting length of 4.72". In addition, the bar machine is capable of rapid traverse rates of 630 ipm and 512 ipm for the respective XZ axes.

In addition to "T" slots for one cut-off toolholder, the ten-station, "'U" shaped cross slide gang tooling system features one mechanical bar puller with a built-in cut-off toolholder; two external turning toolholders; two boring bar holders; one double boring bar holder; and five reduction sleeves.

Potential benefits of using the machine, as cited by the company, are accelerated cycle times and reduced non-cut time.

Companies collaborate to offer on-machine inspection

Delcam and Renishaw have joined forces to offer On-Machine Verification to companies seeking to increase the productivity of their machine tools. Though this technology is advantageous for companies that do not currently have existing inspection capabilities, it is also beneficial to subcontractors that need to machine larger components.

Data for the process can be collected using Renishaw's spindle probes, such as the established MP 700 or the compact OMP 400. Neither of these probes needs to be calibrated in all the vectors in which they are to be used. This reduces the number of points required to measure a given part and therefore produces shorter verification cycle times.

PowerInspect can use the data to gage surface accuracy or to measure features, such as circles, cylinders, cones, spheres and planes. The capability to program complete verification sequences off-line means that there can be minimal interruption of the machining operations, says the manufacturer.

The technology can yield time savings by enabling the quality of the component being machined to be monitored at all stages in the manufacturing process. Therefore, errors can be detected earlier, and thus corrected more quickly. Similarly, the extent of any damage caused, example, by a tool breakage, can be assessed. The user can thus determine whether the part can still be completed within tolerance or if the part will have to be scrapped. If a part has to be transferred to a dedicated CMM and the inspection indicates any errors, then the component must be returned to the machine tool and re-clamped in position before being machined again. Time-consuming for any component, this process might require hours for a heavy item, such as a large aero structure or a press tool for an automotive body panel. In addition, the setup back onto the machine tool might result in a new series of errors in the component and lead to a further cycle of inspection and re-machining.

With On-Machine Verification, the part can be inspected prior to being moved. Errors can thus be detected and corrected before the component is transferred to the CMM for its final inspection. The capability to check that the part is reaching its specifications at the various stages of the manufacturing process will save time, reduce the amount of scrap and increase confidence that time is not being wasted working on components that are already too far out of tolerance, says the manufacturer

Mill-Turn Machine combines lathe and machining center

Barnant Company is offering a 24-channel engine exhaust gas scanner for monitoring gas, as well as oil/water temperatures and other critical parameters. The new gas scanner can be used to observe up to 24 Type J, K, T or E thermocouples to sense exhaust gas at various points. The ABS unit is configured for benchtop, control panel or wall, allowing sequential or selective monitoring of all probes. With accuracy of [+ or -] 0.1 percent, this reliable gas scanner is equipped with RS-232C for out-put to a PC or data logger, selectable F[degrees] or C[degrees] settings, hi/lo set points with audible alarm, store/ recall of 2520 readings per channel, 10 second-to-hourly sequential scan capability, real time digital clock, non-volatile memory, full immunity to RF interference and a three-year warranty. The Integrated mill turn centers in NT Series provide full lathe and machining center capabilities in one package with DCG(TM) (Driven at Center of Gravity) technology, box-in-box construction, and turret with built-in milling motor. Machines contain B-axis that uses direct drive motor, and indexing specifications allow for input by units of 0.0001[degrees]. Max spindle speed is 5,000 rpm, max tool spindle speed is 12,000 rpm, and tool-to-tool change time is 1 sec.

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The full capabilities of a lathe and machining center are now available in one package

Irving, Texas, September 20, 2005 - Mori Seiki's new NT Series of integrated mill turn centers fully combines a lathe with a machining center. In designing the series, Mori Seiki completely rethought the design and construction of multitasking machines to harness the turning ability of a lathe and the cutting ability of a machining center.

The NT Series employs both DCG(TM) (Driven at the Center of Gravity) technology and the box-in-box construction of the NH Series horizontal machining centers, along with the turret with a built-in milling motor from the NL Series CNC lathes. The combination of these features is included with no compromises in terms of their performancestan Machines in the NT Series contain a B-axis that uses a DD (Direct Drive) motor, eliminating backlash and making high-speed rotation possible. Indexing specifications for the axis cater to high precision machining requirements, allowing for input by units of 0.0001 degrees.

To make the NT Series as efficient and productive as possible, special attention has been paid to machine speed. Maximum spindle speed is 5,000 rpm with a maximum tool spindle speed of 12,000 rpm. Additionally, the machines' ATC (Automatic Tool Changer) features a tool-to-tool change time of just 1 sec. and a chip-to-chip time of only 3.4 sec.

Special attention to thermal displacement allows machines in the NT Series to perform at the highest levels of accuracy and precision. The lower turret is located symmetrically in relation to the center of the spindle, forming a construction resistant to the effects of heat. Additionally, ball screw and motor jacket cooling have been implemented to completely eradicate inaccuracy caused by heat variations.

The NT Series will make use of MAPPS III, the latest iteration of Mori Seiki's highly successful control system. MAPPS III allows fast processing and is equipped with a collision prevention function that monitors machine movements in real time. The controls also take advantage of the ease and convenience of conversational input, providing high-speed canned cycles that lead to dramatic increases in programming speed.

The NT Series will contain 9 models, with spindle, lower turret and no center support options bringing the total number of variations to 66. Varieties of the machines will be brought to market sequentially.

Mori Seiki will host an Innovation Days event in early November at its Chicago Technical Center to formally introduce the new line to the North American market. Details on the event will be announced in late September.dard unit weighs only 4 lb

Spain, a reference point for the machine tool industry

Surging ahead of countries such as United Kingdom and France, Spain has consolidated its position as one of the world's leaders in the machine tool sector and also as a major industrial country.

The country ranks eighth among the world's main machine tool suppliers, and eighth in terms of export volume. Within the European Union it takes third place, after Germany and Italy.

Behind this significant data lies a long period of effort and initiative to reach such a position since the first mass-produced machine tool was manufactured in Spain in 1863. This is one historical aspect which illustrates the strong industrial tradition within the sector.

AFM, the Association representing the machine tool sector, was founded in 1946 and was one of the first Spanish entrepreneurial associations to become a member of an international professional organization when it joined the CECIMO (European Committee for Co-operation of the Machine Tool Industries).

With regard to the Machine Tool Industry in Spain, it should be said that over roughly the last seven years Spain has been one of the countries which has experienced the most growth in this sector, in proportion to the increasing size and importance of the main machine tool manufacturers. This rate of growth is in terms of both production volume and of exports Data gathered for the year 2002 show that Spain remains among the leading machine tool manufacturer countries.

How to pay for that new machine tool: innovative approaches to funding help shops and plants acquire the technology they need

In recent years, many machine shops have experienced a significant decline in sales; compression of margins; increased competition; exportation of machining and manufacturing demand; difficulty in obtaining working capital and acquisition financing resulting in operating losses; and an erosion in tangible net worth. Those shops that have remained profitable and experienced upward trends have several common characteristics: experienced and disciplined management, a diverse customer base, no significant customer concentrations, proper leverage and stringent cash flow management.

A challenge all equipment buyers experience is determining the best means to fund an equipment acquisition: cash/equity, a bank revolving line of credit or an equipment loan. Equipment financing is especially difficult during lean economic periods, when a prudent businessperson needs to monitor and forecast cash flow needs and availability to remain solvent.

All three acquisition payment methods entail both advantages and disadvantages. Cash purchasing is simple, requires no third party intervention and alleviates a buyer from future debt/rental payments--yet a cash purchase may adversely affect a company's solvency. Using a bank working line of credit availability is another simple funding method that requires no third party intervention. The bank line of credit financing method typically offers a competitive, variable rate loan, yet it may adversely affect a company's access to business flow interruptions and impact daily working capital requirements. Leasing has become the most common method of funding equipment needs

The Changing Equipment Finance Marketplace

The equipment finance marketplace has changed considerably in the last decade. As a result of consolidation, industry specialization and contraction of capital markets, machine tool buyers are left with fewer options to find financing sources in the traditional bank and finance marketplace. This has led to the growth of captive finance companies owned and operated by either a manufacturer or a distributor. Captive vendor finance companies provide finance products and services exclusively to their parent companies' customers. Most progressive manufacturers and some of the more prosperous distributors are providing equipment financing as an extension of their selling services in order to promote acquisition.

Captive vendor finance companies provide convenient, creative and alternative finance solutions to equipment buyers. These companies offer distinct advantages over banks, finance companies and brokers. They have an understanding of the industry and equipment, the intended use of the equipment, customer credit profiles and the specific customer equipment applications. Furthermore, captives are able to offer a variety or finance products tailored to meet specific customer needs.

Reviewing Options

Many different finance options are now available. These include a loan, capitol lease, finance lease, operating lease, off-balance sheet lease, tax lease, non-tax lease, promissory note/security agreement, skip payments, step-up or step-down payments, and many others. The variety or product options can often be confusing. To simplify the process, buyers should consider two financial concerns prior to selecting a finance product--tax appetite (the need for depreciation deductions to reduce actual tax paid) and cash flow.

If the buyer seeks the depreciation benefits of ownership, a non-tax lease, lease purchase, finance lease, loan or capital lease may be the product needed. Conversely, if the buyer has no tax appetite, prior or current losses, restrictive loan covenants regarding increased borrowing/leverage, or need for short-term utilization, then a tax lease, operating lease or off-balance sheet lease may be the product needed.

Once the lease product has been identified, the term and payment structure can be developed to meet the borrower's cash flow needs. Other features of the lease such as rate, down payments, balloon payments, deferrals, commencement terms, prepayment penalties and guarantees are then typically negotiated based on the customer's credit strength and specific needs.

In recent years, many machine shops have experienced a significant decline in sales; compression of margins; increased competition; exportation of machining and manufacturing demand; difficulty in obtaining working capital and acquisition financing resulting in operating losses; and an erosion in tangible net worth. Those shops that have remained profitable and experienced upward trends have several common characteristics: experienced and disciplined management, a diverse customer base, no significant customer concentrations, proper leverage and stringent cash flow management.

A challenge all equipment buyers experience is determining the best means to fund an equipment acquisition: cash/equity, a bank revolving line of credit or an equipment loan. Equipment financing is especially difficult during lean economic periods, when a prudent businessperson needs to monitor and forecast cash flow needs and availability to remain solvent.

All three acquisition payment methods entail both advantages and disadvantages. Cash purchasing is simple, requires no third party intervention and alleviates a buyer from future debt/rental payments--yet a cash purchase may adversely affect a company's solvency. Using a bank working line of credit availability is another simple funding method that requires no third party intervention. The bank line of credit financing method typically offers a competitive, variable rate loan, yet it may adversely affect a company's access to business flow interruptions and impact daily working capital requirements. Leasing has become the most common method of funding equipment needs

The Changing Equipment Finance Marketplace

The equipment finance marketplace has changed considerably in the last decade. As a result of consolidation, industry specialization and contraction of capital markets, machine tool buyers are left with fewer options to find financing sources in the traditional bank and finance marketplace. This has led to the growth of captive finance companies owned and operated by either a manufacturer or a distributor. Captive vendor finance companies provide finance products and services exclusively to their parent companies' customers. Most progressive manufacturers and some of the more prosperous distributors are providing equipment financing as an extension of their selling services in order to promote acquisition.

Captive vendor finance companies provide convenient, creative and alternative finance solutions to equipment buyers. These companies offer distinct advantages over banks, finance companies and brokers. They have an understanding of the industry and equipment, the intended use of the equipment, customer credit profiles and the specific customer equipment applications. Furthermore, captives are able to offer a variety or finance products tailored to meet specific customer needs.

Reviewing Options

Many different finance options are now available. These include a loan, capitol lease, finance lease, operating lease, off-balance sheet lease, tax lease, non-tax lease, promissory note/security agreement, skip payments, step-up or step-down payments, and many others. The variety or product options can often be confusing. To simplify the process, buyers should consider two financial concerns prior to selecting a finance product--tax appetite (the need for depreciation deductions to reduce actual tax paid) and cash flow.

If the buyer seeks the depreciation benefits of ownership, a non-tax lease, lease purchase, finance lease, loan or capital lease may be the product needed. Conversely, if the buyer has no tax appetite, prior or current losses, restrictive loan covenants regarding increased borrowing/leverage, or need for short-term utilization, then a tax lease, operating lease or off-balance sheet lease may be the product needed.

Once the lease product has been identified, the term and payment structure can be developed to meet the borrower's cash flow needs. Other features of the lease such as rate, down payments, balloon payments, deferrals, commencement terms, prepayment penalties and guarantees are then typically negotiated based on the customer's credit strength and specific needs.