Forging Industry Association
September 2017 Quick Read Newsletter
2017 FIA Fall Meeting of Members
The 2017 FIA Fall Meeting of Members will be held October 16–18, 2017, at the JW Marriott Chicago. At the Fall Meeting, the FIA Search Committee will give an update on the status of the search for a new FIA President.
In addition to the President search update, this year's event features a roster of outstanding speakers and diverse topics with keynote speakers on both days, as well as a dinner cruise on Lake Michigan that includes a buffet dinner, open bar and a live DJ for entertainment.
Sign up through September 22, 2017, to take advantage of the early bird rate and save $300 on your registration. After September 22, 2017, the registration rate will increase from $1,195 to $1,495.
FIA Fall Meeting attendees must book their own hotel accommodations. To reserve a room at the JW Marriott Chicago for the FIA rate of $299/night, call 877-303-0104 and mention the FIA Fall Meeting, or visit the hotel’s dedicated FIA page. The deadline to reserve a room for the FIA rate is September 25, 2017.
Promote your company at the 2017 FIA Fall Meeting of Members by becoming a sponsor. Each sponsor will be recognized onsite with signage, and acknowledged during the opening welcome and announcements. To learn more, contact Mike DiLorenzo at [email protected] 216-781-6260.
Speakers and Topics
Tuesday, October 17
Wednesday, October 18
Still Time to Register for Press School
There is still time to register for FIA's Theory & Applications of Press Forging & Die Design course. The course will be held September 26–29, 2017, in Cleveland.
Theory & Applications of Press Forging & Die Design provides forging-specific information about the various types of presses, as well as guidelines for designing tooling for forging and trimming. Taught by experienced academic and industry experts, the course is intended to:
Students are encouraged to submit real-life problems from their companies for problem-solving sessions. A brief statement of each problem, the material being forged, drawings of parts and/or dies, sample parts (if size permits), and a description of efforts taken thus far will be needed.
The course will be held in the FIA headquarters building, located at 1111 Superior Ave., Cleveland, OH 44114. To learn more about the topics and register, visit http://mbrportal.forging.org/PFDD17.
Manufacturers Need Comprehensive Tax Reform That Makes Them More Competitive
Congress is considering comprehensive tax reform in this session, but the details are not yet clear. As this process moves forward, FIA remains committed to comprehensive tax reform that lowers all tax rates and broadens the tax base as it addresses our key principles outlined below.
Treats all manufacturers alike, regardless of corporate structure.
Modern forging is capital-intensive, yet many U.S. forging companies are small or medium sized enterprises, often family-owned or closely held, and organized as pass-through entities such as Subchapter S Corporations, Limited Liability Companies (LLCs), or Partnerships, so taxes are paid by their owners at individual rates. Many small businesses are structured as pass-throughs, in part, because for family owned businesses, such structurers provide flexibility for the next generation of manufacturers to take over the company.
Stimulates economic growth and enhances U.S. manufacturers’ global competitiveness.
Under the current tax system, U.S. businesses face significant tax burdens that place them at a competitive disadvantage globally. The U.S. corporate tax rate is now the highest in the industrialized world and 8% higher than our nine largest trading partners (China is 15% lower). In addition, the current system penalizes companies who operate globally by imposing additional taxes on income generated outside the U.S. when those funds are returned. The current system also does not provide for adequate cost recovery for major capital investments.
Recognizes the global nature of manufacturing and its supply chains.
FIA is aware that there is much discussion of the border adjustment tax proposal in the House GOP Blueprint. Like many stakeholders, we have many questions regarding WTO legality and increased prices relative to the dollar that we hope will be answered by congressional hearings and further discussion. FIA members sell their products to original equipment manufacturers who may then export the end product. FIA members themselves do very little exporting. It is unclear at this time what effect the border adjustment tax would have on FIA members and it would certainly depend on the final tax rate to determine if a BAT is good or bad for a U.S. forger. FIA looks forward to reviewing detailed legislative text with transition plans to ensure that any proposed comprehensive tax reform legislation makes FIA members more globally competitive.
Repeal of Last In-First Out (LIFO) Accounting Method Is Not Part of Tax Reform
FIA believes that Congress must resist the temptation to include unrelated items in any comprehensive tax reform legislation, such as repeal of the Last In-First Out Accounting Method (LIFO). Many manufacturers, including approximately 38% of surveyed forgers, utilize this method, which has been part of the U.S. tax code since 1939, because it is the most accurate method of accounting for businesses that maintain large inventories of raw materials and work-in-progress. Repeal of LIFO and a requirement that LIFO reserves be repaid could bankrupt some small companies that have been using LIFO for years, and would do nothing to reform the tax system. We urge Congress to reject this approach in considering comprehensive tax reform.
FDMC Seeking a Custom Forge Shop Interested in Implementing JobshopLean
About the Forging Defense Manufacturing Consortium (FDMC)
The Forging Defense Manufacturing Consortium (FDMC) is a collaborative, strategic relationship between FIA and Advanced Technology International (ATI). The program seeks to demonstrate readiness improvements of defense-related suppliers by developing and applying innovative methods of designing and manufacturing weapons systems spare parts and components through advanced forging technologies.
Background for this JobshopLean Project
Lean is based on the Toyota Production System. Lean, as implemented by a high-volume producer of automobiles, is not a very good fit for a custom forge shop that has to produce 100’s of different forgings during any given year on a Make-To-Order basis. “ToyotaLean” simply does not work very well in high-mix low-volume manufacturing facilities, especially job shops.
JobshopLean is a technology-aided and data analytics-driven approach to implement Lean in high-mix low-volume manufacturing facilities. ATI has funded a cost-shared project to implement JobshopLean in a custom forge shop that seeks to improve their quality, productivity, technology, and business practices. During this JobshopLean project, we will:
(1) Assess the current operations of the custom forge shop
(2) Use the PFAST software to do extensive analysis of the material flow in the shop for a large sample of their product mix
(3) Use the results of the material flow analysis to identify opportunities to reduce order flow time, to reduce WIP (work in process) and to eliminate recurring waste in their day-to-day operations. Order flow times can be significantly reduced by: (i) implementing a forging cell; (ii) Training a water spider who is the sole person in charge of all order flow logistics; (iii) Reducing setup times on a bottleneck work center (say heat treatment); (iv) Implementing an electronic schedule board that displays accurate order status and physical location of any order in the shop; (v) Reducing “push scheduling” by the ERP system and releasing orders to the shop based on realistic machine and labor capacity levels; (vi) Etc.
(4) Teach and train the team at the custom forge shop in the methods and tools of JobshopLean
(5) Actively support the custom forge shop’s efforts to implement some of the improvement ideas until the end of the project’s period of performance
Shop Performance Metrics that will Drive this Project
(1) Reduce average stock-to-dock time to complete an order
(2) Reduce the number of orders in WIP (work in progress)
(3) Reduce costs of day-to-day operations by eliminating waste
Would you Like to Receive Further Information on this Project?
The ideal partner for this project would be any custom forge shop that has their own in-house CI Champion or Lean Six Sigma Black Belt or similar position. He/she would be receiving about 20-25 days of full-time consulting services from this project.
To receive (1) the entire proposal and (2) the avenues for providing cost share for this project, please send an email to [email protected] If you would like to discuss details over the phone, please call Dr. Shahrukh Irani at 832-475-4447.
In particular, a project partner must be willing to extract the relevant data from their ERP system for analysis using PFAST. The PFAST outputs will be used to identify product families, detect anomalies in the shop’s material flow, implement one or more manufacturing cells in the facility, etc.
Hyperlinks to Additional Information on JobshopLean
International Forging Congress (IFC)
September 17–22, 2017
FIA Theory & Applications of Press Forging & Die Design
September 26–29, 2017
FIA Management Development Institute (MDI) Session 2
October 1–3, 2017
2017 FIA Fall Meeting of Members
October 16–18, 2017
FIA Management Development Institute (MDI) Session 3
December 3–5, 2017