Page 21 - MetalForming June 2011

Vanishing
Oils
Oils
Oils
Oils
Oils
Oils
Vanish Oil: The lubricant that removes itself from your formed parts.
Lamson Vanish Oils improve your stamping operation by eliminating the costly cleaning and disposal steps required with conventional oils.
Once applied, Vanish stays on the part through the stamping operation and then will evaporate. Within 30 to 45 minutes,your parts will be dry and on their way to assembly or shipping areas
Unlike other evaporating oils Lamson Vanish is completely odorless and contains no harmful chlorinated solvents. And Lamson Vanish can be used safely on most sensitive finishes and pre-coated stock.
For detailed product information log onto: www.lamsonoil.com
or call 800-577-7895
www.lamsonoil.com
Best Practices
Capacity Utilization
In contrast with the first two performance metrics, capac- ity utilization has shown a steady decline since 2006. While there are many different ways to calculate this metric, the PMA Benchmarking Report uses the following formula to measure uptime against 24 hr./day, seven days/week:
Machine hours utilized/(no. of machines x 8760 hr.) x 100
25%
2006
20%
15%
2007
Capacity Utilization 2006 to 2010
2008
2010
2009
Capacity-utilization rate has decreased from a high of 24 percent in 2006 to a low of 15 percent in 2010, suggesting that a significant amount of excess capacity remains within the industry. While higher utilization rates generally are pre- ferred, let us not analyze them in a vacuum.
“They should be examined in the context of a company’s overall plan,” says sales, marketing and operations manag- er, Joseph Carrizales, of PSB Company, Columbus, OH. “Mea- suring utilization rate is okay,” Carrizales adds, “however the focus for long-term profitability and sustainability is con- tinually improving return on capital and labor utilized, to gen- erate free cash flow. Some executives fall into the trap of max- imizing their equipment and people utilization. But this may or may not improve their ability to generate free cash flow.”
High Performance, Higher Profits
Whether industry performance has improved or declined, one consistent outcome evident from the survey data is that the most profitable companies were more productive—25 percent to 35 percent more productive—than the rest of the industry.
Above Average Performance
Capacity Utilization Value-Added per Employee Sales per Employee
0% 5% 10% 15% 20% 25% 30% 35%
With the ability to do more with less, companies are poised to take advantage of the revival in manufacturing. Tracking productivity and making improvements along the way will continue to be essential for success. MF
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