® Thermoforming Quarterly ®

A JOURNAL OF THE THERMOFORMING DIVISION OF THE SOCIETY OF PLASTIC ENGINEERS FIRST QUARTER 2013 I VOLUME 32 I NUMBER 1

MANAGE WHAT YOU MEASURE

Revisiting Labor-Based Costing pages 8-11 INSIDE … Sustainability: Strengthening the Message pages 20-25 SPE Council Review pages 28-29

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Thermoforming FIRST QUARTER 2013 Thermoforming Quarterly® VOLUME 32 I NUMBER 1 Quarterly® A JOURNAL PUBLISHED EACH Contents MANAGE WHAT YOU MEASURE CALENDAR QUARTER BY THE THERMOFORMING DIVISION I Departments OF THE SOCIETY OF Chairman’s Corner R 2 PLASTICS ENGINEERS Thermoforming in the News R 4 Editor Front Cover Conor Carlin University News R 15 (617) 771-3321 Thermoforming & Sustainability R 20-25 [email protected] Sponsorships Laura Pichon  (847) 829-8124 +LJKHUSULFHG *URZLQJ DQGRU'HSOHWHG 'HPDQGIRU )RVVLO)XHOV 3ODVWLFV :RUOGZLGH Fax (815) 678-4248 [email protected] 3ODVWLFV 6XVWDLQDELOLW\ (IIRUWV I Features Conference Coordinator

&RQVXPHUDQG 5HJXODWRU\ 5HWDLOHU 3UHVVXUHV Lesley Kyle 3UHVVXUHV *+*V HPLVVLRQVHWF  The Business of Thermoforming R 8-11 (914) 671-9524 Page 20 The Dangers of Direct Labor-Based Costing in Manufacturing [email protected] Thermoforming Division Industry Practice R 12-13 Executive Assistant Grant to Help Students See Manufacturing as Opportunity Gwen Mathis Cover Artwork courtesy of Dallager Photography (706) 235-9298 All Rights Reserved 2012 Fax (706) 295-4276 [email protected]

Thermoforming Quarterly® is pub- lished four times annually as an infor- mational and educational bulletin to Page 12 the members of the Society of Plastics Engineers, Thermoforming Division, and the thermoforming industry. The name, “Thermoforming Quarterly®” and its logotype, are registered trademarks of the Thermoforming Division of the Society I In This Issue of Plastics Engineers, Inc. No part of this publication may be reproduced in any form or by any means without prior writ- 2013 Thermoforming Conference ten permission of the publisher, copyright holder. Opinions of the authors are their Parts Competition Guidelines R 20 own, and the publishers cannot be held responsible for opinions or representa- tions of any unsolicited material. Printed Student Parts Competition Guidelines R 21 in the U.S.A. Thermoforming Quarterly® is registered Council Summary R 28-29 in the U.S. Patent and Trademark Offi ce (Registration no. 2,229,747). R 2013 Conference R 30 Sponsorships R 36 Page 28 Cover Picture Photographer: Stephan Zabel (Royalty-free image via Getty Images)

THERMOFORMING QUARTERLY 1 Thermoforming Chairman’s Corner Quarterly®

Thermoforming Division Continues to Thrive Phil Barhouse

inherent in this type of costing Lastly, I do have to report ith a very successful method. He explains how the that after 14 years of service WGrand Rapids continued use of direct labor- to the Thermoforming conference under our belt, I’m based cost models greatly Division, I’m retiring from looking forward to the many diminishes the quality of a the Board and stepping down exciting opportunities that manufacturer’s decision- as Chairman. Starting at this 2013 has in store for us. I am making process and ultimately year’s May meeting, Mark very happy to report that our produces adverse effects to Strachan will be assuming the Division was able to present the bottom line. Chairmanship responsibilities a check for $63,266 to SPE for the Thermoforming Board headquarters, their share of On page 12, Susan Spencer’s of Directors. It has been a the proceeds from our annual article addresses a problem pleasure to be a part of this conference. that many thermoforming family. I ask that you please companies will recognize. continue to support Mark We all know that Employee attrition can strain a and the Board as they work understanding operational business if skilled candidates to promote all aspects of costs in business is critical in are not available to replace thermoforming, as they have today’s competitive landscape. retired employees. Mayfi eld been doing for over 37 years. A good friend of mine always Plastics of Sutton, MA is told me that a company working with a regional As always, we would like to makes its money on the organization, the Blackstone hear your ideas, comments production fl oor. Identifying Valley Education Foundation, and feedback. Together we and managing those costs to address these problems. will continue to advance our is not always an easy task. The foundation is a nonprofi t industry through inspiration, In this issue, Douglas Hicks organization that helps ideas and innovation. R writes about this issue with schools prepare students for candor in, “Shortcomings the workforce. This magazine and Dangers of Direct Labor- and this division continue to Phil Barhouse Based Costing.” Hicks push for greater emphasis on outlines the many problems workforce development.

2 THERMOFORMING QUARTERLY Thermoforming New Members Quarterly®

6FRWW0F&XDLJ 3HUIRUPDQFH3RO\7HN 0DODNZD%&&DQDGD Why Our mission is to 3DWULFN6DUQRZVNL 6XE=HUR,QF facilitate the )LWFKEXUJ:, advancement of Join? thermoforming 5REHUW.UDWRFKZLOO technologies through ,QQRYDWLYH3DFNDJLQJ  &RQVXOWLQJ education, application, %DOGZLQVYLOOH1< promotion and research.

*RUDQ'MHNDQRYLF $:3 ® SPE National 6XUUH\%&&DQDGD Executive It has never been more 6LPRQ7HQJ important to be a member of Director 9XOFDQ3ODVWLFV7HFKQRORJ\&R Willem de Vos /WG your professional society than 6KHQ]KHQ&KLQD now, in the current climate of 13 Church Hill Road change and volatility in the Newtown, CT 06470 USA .HQQHWK:LOH\ plastics industry. Now, more Phone: +1 203-775-0471 &XVWRP3URGXFW*URXS,QF 0HOERXUQH)/ than ever, the information Fax: +1 203-775-8490 you access and the personal &KDG/0F.HQ]LH networks you create can and &HQWUDO&DUROLQD&RPPXQLW\ will directly impact your future Conference &ROOHJH :KLVSHU3LQHV1& and your career. Coordinator Lesley Kyle Active membership in SPE -HIIHU\7D\ORU%XUWRQ 56 Glenvue Drive – keeps you current, keeps 3RO\SRUWDEOHV Carmel, NY 10512 'DKORQHJD*$ you informed, and keeps you connected. 914/671-9524 &KULV.LUE\ email: &UHDWLYH)RDP&RUS The question really [email protected] *UDQJHU,1 isn’t “why join?” 0DUHN1LNLIRURY *1(XURSH but … Visit Our -LKODYD&]HFK5HSXEOLF Website at: *DEULHO%RUGD%HUQDU :DOWHU3DFN Why www. ,JRUUH9L]FD\D6SDLQ thermoforming 7KHRGRUXV+*DOOH '*3ODVWLFV%9%$ Not? division.com %UDVVFKDDW%HOJLXP

THERMOFORMING QUARTERLY 3 Thermoforming in the News

)ORH5HVXUUHFWLQJ*LDQW 3(7 7KHUPRIRUPLQJ0DFKLQH 7KHUPRIRUPHU By Michael Lauzon, Correspondent Published: December 28, 2012 6:00 am ET 0LFUR*UHHQ Updated: December 28, 2012 3:00 pm ET McGREGOR, MINNESOTA 3ODQVWR ([SDQG By Jessica Holbrook, Staff Reporter Published: January 17, 2013 2:04 pm ET Updated: January 17, 2013 2:09 pm ET ARLINGTON, WASHINGTON icroGreen Polymers Inc. Mplans to expand its production large-machine thermoforming “It means we can take our capacity, a project jump started by Aoperation is due to start operating technologies to a new level,” he said. a $5 million investment from the in February. “We’ve been studying what to do since Stillaguamish Tribe of Indians. Floe International Inc. is building the 1990s.” MicroGreen is looking to raise a 400,000-square-foot facility in McGregor that will house what Floe International expects to buy high $20 million in this round of funding. consultants said is the largest rotary density polyethylene, ABS and capped The funds will go toward purchasing thermoformer in the world, a 10-foot- ABS sheet to feed the machine, which new equipment and tooling, and will by-25-foot behemoth that has been has a 6-foot draw and can make parts take the company from producing on sitting idle for several years. weighing as much as 600 pounds. a small, testing-scale to producing “We will have several proprietary Two consultants working with Floe at commercial capacity, said Chris products in transportation and will International said the machine has been Jacobs, vice president of marketing try to provide solutions for large the largest in the world since it was and product development, in a phone products,” said Floe International CEO built in 2004 by now-defunct Advanced Wayne Floe in a telephone interview. Ventures in Technology Inc. of Gladwin, interview. Wayne Floe did not specify the MI. MicroGreen uses patented cost of the project, only saying it will Roger Fox of manufacturer’s technology, named Ad-air, to involve millions of dollars. add microbubbles to solid sheets He has an extensive background in representative Foxmor Group Inc. of marine products, many of which could Wheaton, IL, and consultant Robert of recycled PET. According to be made by the large thermoforming Browning of Isosceles Inc. of Atlanta, MicroGreen, the company uses its machine. Watercraft, fl oating docks GA helped advise on the project. expanded PET to thermoform cups and trailers are some of the items the The machine originally was built and trays that are lightweight and new operation could make. for Better Bath Components of require less material to produce, He said he has been dealing with Waxahachie, TX, to make components contain up to 50 percent post- contract thermoformers to make for recreational vehicles, manufactured marine-related products at the fi rm’s consumer content and are insulated housing and marine products, but the and temperature resistant. headquarters in McGregor and in Hoyt applications did not pan out as expected. MicroGreen plans to add several Lake, MN. For components not large After Advanced Ventures in enough to justify the large machine, Technology went out of business, new production lines and invest in Floe International will continue to rely many of its employees started another tooling to expand its line of cups and on outside thermoformers, he said. trays. Wayne Floe said he has been in the machinery company, American marine products business for 30 years Thermoforming Machinery LLC of West The company currently operates and the decision to invest in the large Branch, MI. R one thermoforming line – an R&D machine was made after he gave it a line – that can produce a few lot of thought. hundred-million pieces a year.

4 THERMOFORMING QUARTERLY “In the food service world, that’s The Stillaguamish Tribe was also not much,” Jacobs said. looking to diversify its investment 2013 “There’s so much opportunity out portfolio. The Tribe is now working there,” he said. “Even if we only to put together a consortium with EDITORIAL aim for the low-hanging fruit, we’ll other Native American tribes that CALENDAR need 20 to 30 production lines.” have the same goal to invest in The company will also purchase MicroGreen. Quarterly Deadlines for an extruder. Right now, MicroGreen The Stillaguamish Tribe’s Copy and Sponsorships initial investment was enough to buys sheets of PET with up to 50 ALL FINAL COPY FOR percent recycled content. Extruding get MicroGreen started, and the company plans to move forward EDITORIAL APPROVAL in-house will allow the company with just the $5 million secured. 15-FEB Spring 30-APR Summer to raise the amount of recycled The company plans to close this content, Jacobs said. 31-JUL Fall 15-NOV Winter round of funding by the end of the Conference Edition Post-Conference Edition With the increased production fi rst quarter, when it closes they’ll All artwork to be sent in .eps capacity, MicroGreen needs more know “how steep the on-ramp really or .jpg format with minimum employees. The company currently is,” Jacobs said. R 300dpi resolution. employs 45, but plans to employ 200-300 by year end, Jacobs said. MicroGreen operates one facility in Arlington, Wash. The company has room to expand at its current site, but increasing the size of its current plant or opening a new one will depend on customer’s needs and requirements, he added. The company is still working on meeting its $20 million mark. MicroGreen is in talk with venture capitalist inventors, but the Stillaguamish Tribe also is helping out. Koran Andrews, the Stillaguamish Tribe’s enterprise corporation CEO, and other tribal members toured MicroGreen’s facility last year. The Tribe purchased cups for its Angel of the Winds Casino in Arlington, and were so impressed with MicroGreen’s process and mission that they asked about becoming investors, Jacobs said. “That’s how they got turned on to it, knowing that our focus was about showing people that being successful in business and doing the right thing environmentally, and for the world, is not mutually exclusive,” he said.

THERMOFORMING QUARTERLY 5 Are You

Group Name: Thermoforming Division, a subgroup of SPE

Moderator: Mark Strachan

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1. New job postings for thermoforming technicians and packaging engineers

2. Mayfi eld Plastics: thermoforming whitepaper

With over 380 members and growing, the Thermoforming Division is using Linkedin to expand the conversation. Meet fellow professionals, ask tough technical questions, explore related groups. Join us today!

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THERMOFORMING QUARTERLY 7 Thermoforming The Business of Thermoforming Quarterly® The Dangers of Direct Labor-Based Costing in Manufacturing By Douglas T. Hicks, CPA s we begin the second decade of the 21st Century – direct labor cost or an overhead cost per direct labor hour – to Aover a quarter century into the “cost measurement be added to direct labor’s hourly cost. All non-manufacturing and management revolution” – most U.S. manufacturers, costs will then be assigned to cost objectives (products, including those in the plastics industry, continue to base customers, etc.) as an add-on percentage (known commonly not only their day-to-day cost accounting systems, but the as an “SG&A rate”). The irrationality of such a cost model cost information they use to support critical management should be apparent to anyone who gives it a second thought. decisions, on cost models driven primarily by direct labor. These cost models, developed at a time when product and Is the cost of an individual manually assembling or visually process variety were minimal and direct labor was a major inspecting a part the same as one who operates a high-tech cost of manufacturing, are simple, easy to use and explain, machine center that devours power and expensive perishable compatible with most ERP and other manufacturing software tooling? If a worker can operate two machines at the same and, in a vast majority of cases, totally inappropriate. time does each machine only cost one-half as much as when a worker can only operate one machine at a time? Is the cost The introduction of high-tech and computer-controller of heat treating or plating determined by the amount of time manufacturing processes, the ever increasing demand it takes for workers to load and unload parts? A direct labor- for complexity and variety in manufactured products, based cost model with a single, plant-wide overhead rate the adoption of lean manufacturing philosophies, and the suggests that the answer to each of these questions is “YES” expansion of pre-manufacturing and post-manufacturing – an answer that totally defi es logic. services – including distribution and fulfi llment – have pushed the realities of 21st Century manufacturing far Many accountants believe that if they segregate manufacturing beyond the capabilities of “simple and easy to use.” As into multiple cost centers and then develop separate direct costing pioneer Alexander Hamilton Church stated over 100 labor-based overhead rates for each cost center, the problem years ago, “No facts that are in themselves complex can be will be averted. That is, unfortunately, not the case. A represented in fewer elements than they naturally possess company using multiple direct labor-based overhead rates … there is a minimum of possible simplicity that cannot be to apply indirect manufacturing costs and a traditional, further reduced without destroying the value of the whole company-wide, total-cost based “SG&A” rate to assign non- fabric.” manufacturing costs to products and customers will continue In the 21st Century, direct labor-based costing has fallen far to experience shortcomings such as: below the “minimum of possible simplicity.” It no longer provides a valid model of the economics that underlie a ¾The cost of cells and lines will be misstated and, as modern manufacturing organization and, as a consequence, a consequence, any products manufactured using should no longer be relied upon as a method of measuring these cells and lines will be costed inaccurately. a manufacturer’s product, process, or customer costs – Cells and lines require a fi xed amount of cost to especially when these costs are used to support critical operate regardless of how many workers are present. management decisions. Occupancy and capital equipment costs are primary examples. The variable costs of operating cells tŚĂƚ͛ƐtƌŽŶŐtŝƚŚŝƌĞĐƚ and lines (utilities, perishable tooling and other >ĂďŽƌͲĂƐĞĚŽƐƚDŽĚĞůƐ͍ consumables) are generally driven by the operation of In its simplest form, a manufacturer will use a single, plant- the equipment, not the activity of a worker. Linking wide overhead rate – expressed as either a percentage of such fi xed and variable costs to the hours worked by 8 THERMOFORMING QUARTERLY cell/line workers makes it appear as if these costs vary the company’s purchased items. The major costs in direct proportion to those hours. A smaller crew needed to support outside manufacturing services, attending the line implies that these costs are reduced including the extra inventory-related costs when in reality they stay the same. A larger crew will when items are sent outside in the midst of the imply that these costs increase when, in fact, they manufacturing process, will be ignored. The cost remain the same. The ramifi cations of this error are benefi ts of high-volume items purchased in bulk many; from industrial engineers miscalculating the and handled using mechanized systems will be impact of direct labor savings to losing profi table lost while the extra cost required to support low- products due to overpricing or winning unprofi table volume items requiring substantial handling and jobs due to underpricing. storage will be ignored. Perhaps most dramatic will be the total absence of support costs related ¾CNC equipment and any other equipment that to the purchase of items from overseas. Offshoring requires only a partial direct worker, or perhaps no decisions will be made in total ignorance of the worker at all, will be costed incorrectly. If a worker economics that underlie such a critical decision. attends two machines, each machine’s operation will still appear to cost only one-half as much as it does ¾Post-manufacturing costs, like those related when the worker attends a single machine. Obviously, to fi nished goods storage, order picking, order this does not refl ect reality. The equipment cost does processing, shipment preparation and logistics, not vary with the hours of direct labor; it varies with will be invisible. Because the cost of these the equipment’s hours of operation. The impact on activities lay buried in manufacturing overhead pricing decisions should be readily apparent. The or the company’s SG&A rate, it is impossible to misstated savings from labor reductions or the impact assign them to the customers that require them, of adding workers to improve equipment throughput thereby making accurate measures of customer time will also mislead management. profi tability impossible. Instead, these costs will remain buried in manufacturing overhead or SG&A ¾Any equipment whose attending crew size can vary and be spread like peanut butter to all customers in based on the characteristics of the product being proportion to their product costs. produced will be costed incorrectly. As in the case of fractional workers, the equipment does not cost These are just a few of the common shortcomings inherent twice as much to operate simply because it requires in direct labor-based costing at manufacturing fi rms. two workers instead of one nor does it cost one-half There are many others. Each manufacturer will have its as much when one worker is required as opposed to own unique set of issues. Nevertheless, even with “band two. The pricing and cost savings implications are aids” applied to a direct labor-based cost model, the high- the same as with CNC equipment. quality product, customer, and process cost information necessary for a manufacturer to make sound decisions and ¾The price paid for purchased materials, components take effective actions will be non-existent. Instead, cost and outside manufacturing services will appear information will remain inaccurate and misleading. to be the total cost of those items. The cost of purchasing, handling, quality, storing, fi nancing, tŚĂƚŝīĞƌĞŶĐĞŽĞƐŝƚZĞĂůůLJDĂŬĞ͍ and other administrative activities required to If the negative impact the distortions inherent in direct support purchased (or customer provided) materials, labor-based costing have on a manufacturer’s decision components and outside manufacturing services will making are not obvious, understanding the effect they be buried in manufacturing overhead or SG&A costs. have on pricing decisions should help make the connection The minimal support cost for off-the-shelf items crystal clear. There is a law of economics – known at my will go unnoticed as will the much higher support fi rm as Hicks’ First Law of Pricing – that applies here. That cost of custom items. Slow-turning items will not law goes like this: “A company will get a lot of business be penalized for the extra space and fi nancing they when it does not charge its customers for things it does for require while the benefi ts of fast-turning items will them, but it will not get much business when it attempts be invisible. No cost will be assigned to customer- to charge its customers for things that it doesn’t do for provided or consigned items even though they them.” require support from many of the same activities as (continued on next page)

THERMOFORMING QUARTERLY 9 For example, one manufacturer has overall productivity that is about average for its industry and marketplace. Under normal economic conditions, the market will allow this company, whose costs are at the industry average, to charge a price that will enable it to recapture its cost and earn enough of a profi t to ensure its continuing ability to supply the marketplace. If this company accurately calculates its “fully-absorbed” costs and adds a market-supportable profi t margin on each of one hundred possible contracts, it should be competitive on those contracts and will earn its expected profi t margin on any contract it is awarded.

This situation is shown graphically in Figure 1 in which the horizontal axis represents one hundred contracts bid &ŝŐƵƌĞϮʹWƌŝĐŝŶŐĂƐĞĚŽŶKǀĞƌͲ'ĞŶĞƌĂůŝnjĞĚŽƐƚƐ͘ and the vertical axis the percentage accuracy of its fully- absorbed cost estimates. The market prices shown provide awarded contracts on the left side of the diagram – contracts consistent margins above the accurately determined costs. bid at less than market price – for which it was “not charging The area between the market price and the 100% accurate the customer for things it does for them.” Conversely, it will contract costs represents the profi t on any contract awarded not be awarded contracts on the right side of the diagram at the market price. – contracts that could have been profi table at much lower prices – for which it was “charging the customer for things it does not do for them.” Unfortunately, actual costs do not care whether they have been over or underestimated; they will be actual either way. As Figure 3 clearly shows, if the company is awarded those contracts that were inadvertently priced below market, it has little or no chance of fi nancial success. At the same time it will be missing out on the potential profi ts that could have been earned at the market price on those contracts its inaccurate costing methodologies caused it to overprice.

&ŝŐƵƌĞϭʹDĂƌŬĞƚWƌŝĐĞͬWƌŽĮƚWŽƚĞŶƟĂů͘ If this company uses an inappropriate, over-generalized methodology (such as applying overhead costs on the basis of direct labor hours/dollars) to estimate its costs, it will overestimate the fully-absorbed cost on approximately one half of the contracts bid and underestimate the costs on the other half. As a result, it will establish an acceptable price (quoted price) at levels that will be under the market for those contracts whose costs were underestimated and over the market for those contracts whose cost were overestimated. This situation can be seen graphically in Figure 2 in which &ŝŐƵƌĞϯʹWƌŽĮƚĂďŝůŝƚLJŶĂůLJƐŝƐŽĨŽŶƚƌĂĐƚƐtŽŶ͘ contracts are sequenced from left to right starting with the contract whose cost was most underestimated and ending Pricing is not the only area where distortions and problems with the contract whose cost was most overestimated. lead to low-quality decisions. The savings from operating improvements are regularly miscalculated. One company Looking at the “Quoted Price” and “Market Price” lines, it added new controls to a piece of equipment that made it is obvious that the company will be much more likely to be possible to reduce the number of workers needed to operate

10 THERMOFORMING QUARTERLY the machine from two to one. The anticipated cost reduction business. Fortunately, the creation of a valid cost model not only included the cost of one laborer, but it was estimated that provides accurate, actionable cost information requires that the equipment’s variable operating costs – including only a fraction of the resources needed to implement a new perishable tooling and utilities – would also cut in half. The cost accounting system. A fundamentally sound ERP or latter was not a savings they were likely to realize. other manufacturing information system is still important – it provides much of the data necessary to populate the cost Another major area where direct labor-based costing impacts model – but it’s the model that generates accurate, relevant a manufacturer’s decision making adversely is in insourcing and actionable cost information, not the system. Many and outsourcing decisions, particularly those related to manufacturers have created and used valid cost models to offshoring. Chasing the lowest “price” for a purchased enhance their bottom lines without changing their day-to- item does not always insure that the lowest “cost” will be day cost accounting systems. obtained. I know of one company that saved $3 million annually in component prices by moving the manufacture ŽŶĐůƵƐŝŽŶ of a group of parts to China. The only catch was that they A 21st Century manufacturing fi rm that uses a direct labor- spent $3.5 million annually – all of which was buried in its based cost model to determine costs for use in supporting manufacturing overhead and SG&A costs – to achieve this decisions is putting itself at considerable risk. Direct labor savings. It’s no wonder this company was out of business less may have been an appropriate basis for developing cost than two years later. information when competition was less, products were uniform, customers demanded few, if any, extra services and The inability to link customer-related costs to the customers direct labor was the major factor in manufacturing. None that require them also leads to poor pricing decisions and of that is true today. Today’s manufacturing environment inaccurate measures of customer profi tability. Consider the requires high-quality cost information – information based case of a manufacturer who sells the same product to two on a valid economic cost model of the business – if the different customers at the same price. They produce 10,000 manufacturer is to thrive and grow in the future. units in a single batch each week. 5,000 units are immediately shipped to one of the customers. The remaining 5,000 units ďŽƵƚƚŚĞƵƚŚŽƌ are moved to fi nished goods inventory with 1,000 units being DOUGLAS T. HICKS, CPA shipped to the customer each day. Do you suppose each of During his 27 years as an author, speaker and consultant, these customers generates the same amount of profi t for the Doug Hicks has championed the development of practical, manufacturer? The company’s direct labor-based costing down-to-earth cost management solutions for small and model makes them appear equal in profi tability. mid-sized organizations. In that time, he has helped over 200 organizations of all types and sizes transform their ͬ ĞĐŝƐŝŽŶŽƐƚ/ŶĨŽƌŵĂƟŽŶс history-oriented accounting data into customized, value- ŽƐƚĐĐŽƵŶƟŶŐ/ŶĨŽƌŵĂƟŽŶ enhancing decision support information that provides their One of the great philosophical mistakes in cost measurement decision makers with the accurate and relevant intelligence and management is the belief that cost information for they need to thrive and grow in a competitive world. He has decision making must come from a company’s cost accounting shared his experience through hundreds of seminars and system. The purpose of cost information is insight; insights conferences, articles that have been published in dozens that will improve a company’s decision making processes of trade and professional periodicals and three books that and enhance its bottom line. Cost accounting systems are have sold over 15,000 copies worldwide. designed to value the company’s overall inventory and calculate its overall cost of goods sold for use in company- He is a member of the Institute of Management Accountants, wide fi nancial statements – not to determine the cost of the the Society of Cost Management, and the Michigan individual elements that comprise the company’s operation. Association of CPAs. R As a consequence, cost accounting systems incorporate too many generalities and shortcuts to provide accurate and actionable cost information.

A manufacturer does not need a great cost accounting system to have high-quality cost information to support its decisions. It needs a valid economic cost model of its

THERMOFORMING QUARTERLY 11 Thermoforming Industry Practice Quarterly® Grant to Help Students See Manufacturing As Opportunity

Reprinted with permission By Susan Spencer, Telegram & Gazette Staff [email protected] SUTTON, MASSACHUSETTS arrison Greene, vice president of growth and Hdevelopment at Mayfi eld Plastics in Sutton, is scared. It’s not that the custom thermoforming manufacturer’s business is down – in fact, it’s held strong through the recession and its workforce of 48 employees has grown 5 percent since last year. But as Mr. Greene looks ahead three or four years, he sees a number of his company’s aging staff members retiring and no one coming up the pipeline to replace them. It doesn’t require a college degree to make the custom plastic parts Mayfi eld sells to the medical, ;>ĞŌƚŽƌŝŐŚƚ͗ͿWĂƵů>LJŶƐŬĞLJ͕džĞĐƵƟǀĞŝƌĞĐƚŽƌŽĨůĂĐŬƐƚŽŶĞsĂůůĞLJ ĚƵĐĂƟŽŶ&ŽƵŶĚĂƟŽŶ͕ĂŶĚ,ĂƌƌŝƐŽŶ'ƌĞĞŶĞŽĨDĂLJĮĞůĚWůĂƐƟĐƐ͘;dΘ' aerospace, transportation and electronics industries. ^ƚĂīͬ,Z/^d/EWdZ^KEͿ Skill training is required, though, for the detailed work with the computers that control manufacturing The foundation is a nonprofi t organization that processes. aims to help schools prepare students for the future workforce. Mr. Greene said today’s high school students and According to Paul Lynskey, executive director of their parents have outdated views of manufacturing the Blackstone Valley Education Foundation, the and shy away from what is a solid and growing sector $10,000 grant will include visits to manufacturers of the economy. by middle and high school teachers and counselors; He is one of a handful of local manufacturers a local conference to hear from business leaders working with the Blackstone Valley about employment opportunities in manufacturing Education Foundation on a recent grant and required skills; weeklong summer externships from MassDevelopment, through the Central with stipends for teachers and counselors at local Massachusetts Workforce Investment Board. manufacturers; and outreach at participating schools The “AMP It Up!” grant will introduce science, to provide information to other faculty, students and technology, engineering and math teachers for families about manufacturing careers. Grades 7-12 in 10 Blackstone Valley districts to Mr. Greene said Mayfi eld Plastics recruits career options in advanced manufacturing. The goal employees through referrals from current workers or is to bolster the prospective employee base for these classifi ed ads. But it’s hard to get young workers. skilled jobs by raising awareness among adults who “Mom and Dad typically think that manufacturing infl uence teens’ lives. is working in some grease pit some where,” he said.

12 THERMOFORMING QUARTERLY “They think if you don’t go to school and get a Ms. Snyder attributed the industry’s workforce bachelor’s degree, you’re nothing. That’s a myth. A demand to the need to replace retiring workers and degree is not a career.” a shift to “re-shoring,” a reversal of the off-shoring Mr. Lynskey said 70 to 80 percent of graduating high trend of the past decade. She said businesses are school students go on to college. He wants to reach the returning to the local labor market because wages in roughly 30 percent who don’t. Their main options, he China, where many jobs went, are no longer much said, include retail, service jobs or manufacturing. lower than in the United States. Add in shipping and “That’s where my competition is. It’s not convincing energy expenses, and off-shoring doesn’t have such parents they’re not sending their kid to college,” he said. “The connection we need to make is with the a cost advantage. local manufacturers and businesses and defi ne the Also, she said, fi rms want to make sure there’s a lot skills they need.” of quality assurance going into the manufactured Entry-level pay in manufacturing is typically higher parts they purchase, which has returned their interest than in retail and service sectors, starting at $14 to in domestic manufacturers. $18 per hour and moving up to $22 to $25 per hour. A Mr. Greene said, “This business is all about highly skilled position like tool designer pays upward quality.” of $50,000 or more, Mr. Greene said. His company Not only do his customers demand quality also provides health and retirement benefi ts. production, but they also want on-time delivery and Genie Stack, director of guidance at Douglas High outstanding customer service. School, said, “I think students don’t know what “Businesses and industries that buy from us are careers in manufacturing are. There needs to be more buying American,” Mr. Greene said. “The threat education in the types of jobs there.” is they won’t be able to continue to buy American Douglas High School offers science technology, because we can’t fi nd skilled labor.” drafting and manufacturing classes in which students Ms. Snyder said manufacturing is a good career learn about drawing and computer-aided design, but path for smart students who are not heading to the courses don’t go very far. Mrs. Stack said, “The jobs are there, the kids are college, who like computers and like to work with here, and there’s a disconnect.” Jeffrey T. Turgeon, their hands. executive director of the Central Massachusetts “The industry itself is very different from the one Workforce Investment Board, which oversees the people picture in their minds,” she said. “It’s very grant regionally, said, “We’re helping bridge that gap clean, it’s high-tech, and it’s focused on teamwork.” between education and careers. Teachers will bring Ms. Snyder said: “It’s a highly skilled industry, hands-on experiences and the changing nature of but not one where you need a lot of education based manufacturing … to the classroom.” in the classroom. It tends to be hands-on.” Mr. Turgeon said that, according to a recent study And unlike the old Lucille Ball television comedy by the Federal Reserve Bank of Boston, manufacturing in which assembly line workers wrapped pieces is the third-largest employment sector in Central of candy on a relentless conveyor belt, modern Massachusetts, with more than 11 percent of the manufacturing involves diverse technical skills. workforce. Statewide, 8 percent of the workforce is in “You’re doing a lot of critical thinking and manufacturing. problem-solving on the job,” Ms. Snyder said. “Manufacturing is an important industry in Mr. Greene said high schools and colleges need to Massachusetts and particularly in regions of the state move away from focusing largely on “preparing the that are outside of Boston,” said Nancy L. Snyder, president of Commonwealth Corporation, a quasi- elite for a classical education.” public workforce development organization. “It’s an He added, “The whole educational system needs industry that’s doing a lot of hiring right now.” to be revamped to provide meaningful education.” R

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BOOK SPACE IN 2013! R THERMOFORMING QUARTERLY 15 From the Editor

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ͻŶĚŽǁŵĞŶƚƐ REDUCE! REUSE! tĞĂƌĞĂůƐŽŝŶƚĞƌĞƐƚĞĚŝŶŚĞĂƌŝŶŐĨƌŽŵŽƵƌŵĞŵďĞƌƐĂŶĚĐŽůůĞĂŐƵĞƐ RECYCLE! ĂƌŽƵŶĚƚŚĞǁŽƌůĚ͘/ĨLJŽƵƌƐĐŚŽŽůŽƌŝŶƐƟƚƵƟŽŶŚĂƐĂŶŝŶƚĞƌŶĂƟŽŶĂů ƉĂƌƚŶĞƌ͕ƉůĞĂƐĞŝŶǀŝƚĞƚŚĞŵƚŽƐƵďŵŝƚƌĞůĞǀĂŶƚĐŽŶƚĞŶƚ͘tĞƉƵďůŝƐŚ ƉƌĞƐƐƌĞůĞĂƐĞƐ͕ƐƚƵĚĞŶƚĞƐƐĂLJƐ͕ƉŚŽƚŽƐĂŶĚƚĞĐŚŶŝĐĂůƉĂƉĞƌƐ͘/ĨLJŽƵ ǁŽƵůĚ ůŝŬĞ ƚŽ ĂƌƌĂŶŐĞ ĂŶ ŝŶƚĞƌǀŝĞǁ͕ ƉůĞĂƐĞ ĐŽŶƚĂĐƚ ƌŝĂŶ tŝŶƚŽŶ͕ ĐĂĚĞŵŝĐWƌŽŐƌĂŵƐ͕Ăƚ͗ REDUCE! REUSE! ďǁŝŶƚŽŶΛůLJůĞŝŶĚƵƐƚƌŝĞƐ͘ĐŽŵŽƌϵϴϵ͘ϰϯϱ͘ϳϳϭϴ͕Ğdžƚ͘ϯϮ RECYCLE!

16 THERMOFORMING QUARTERLY THERMOFORMING QUARTERLY 17 Have an Idea for an Article for TQ? Submission Guidelines

• We are a technical journal. We strive for objective, technical articles that help advance our readers’ understanding of thermoforming (process, tooling, machinery, ancillary services); in other words, no commercials.

• Article length: 1,000 - 2,000 words. Look to past articles for guidance.

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THERMOFORMING QUARTERLY 27 COUNCIL SUMMARY ®

Roger Kipp Councilor

am pleased to provide a effective for SPE, supported reporting procedures from staff Isummary of SPE governance through the efforts of past to council, updated IT, and a activities and updates on the president Ken Braney. This major overhaul of the web site by state of our society. The last development can be seen by adding content and eliminating meeting of Council was held in the continuing strong growth of complexity. Dearborn, MI from September international membership, the 13th through September success of Eurotech and most By-laws and policy changes have 15th. The council meeting recently, ANTEC Mumbai. been presented to support these and subsequent conference These events clearly illustrate goals. The Finance Committee call meetings provided solid the success of SPE global recommended and council approved a budget of $90,000 for direction from the CEO of expansion. the society, Wim Devos, who the upgrade to the IT system. One expected benefi t from this change emphasized that we must focus The challenge for our organiza- will be improved membership on establishing effi ciency in tion is in becoming more agile data and reports, expanding effective leadership. while implementing continuous member communications and improvement of operations. Wim providing user-friendly member- Wim’s message is that SPE pointed out to the council that ship and conference registration must be managed as a company we need to increase the speed functions. focused on growth and profi ts. of change, reduce the number In order to accomplish this, a of committees, clear out the The improvements in IT and company needs to have the right complexities within the by-laws, the web site are focused on people and the right structure. and develop trust of the executive supporting membership growth. Wim was clear that we have the committee by council. These The membership continues to right people; it is the structure actions will cut the time to enact hang in the 15,000 range. Cur- that needs attention. The growth/ change and allow the council to rent member input is critical in profi t value for SPE will come be more effective in the areas addressing the improvements from development of merging where we can impact growth and necessary for member value and markets, improving operations profi tability. growth. Please communicate to and having an agile structure. me your thoughts on website The structural changes will improvement or any other The promotion and marketing involve improved fi nancial thoughts for an improved SPE into emerging markets has been transparency through new experience.

28 THERMOFORMING QUARTERLY ANTEC 2012 in Orlando, held in entire undergraduate years while a board position, plastics had conjunction with SPI, was a great those in the later stages of their no sponsor within ABET. This success while ANTEC Mumbai education will get all benefi ts is a win-win for both groups (the fi rst ANTEC outside North of SPE membership through as it provides ABET further America) was successful both their remaining years as students credibility within the fi eld of in attendance and profi tability. and their initial years as young plastics while providing the For 2013 ANTEC will be in professionals. same for SPE in the academic Cincinnati, OH from April 21st arena. through April 25th. This ANTEC The SPE Foundation is now will have an expanded exhibit the home for the “Plastics The next Council meeting is in venue supported by SPI, however Van Program.” This program Cincinnati at ANTEC. In the the technical presentations plays a vital part in our plastics meantime, I will be representing will remain the focus along manufacturing alliance with the Division on the Finance with student participation. education. In order to promote Committee and the Foundation. The Thermoforming Division interest to future plastics engineers, continues to be one of the primary technicians and professionals, the Thank you for your continued sponsors for student ANTEC excitement of plastics needs to be trust. R travel and awards. communicated to middle school Roger C. Kipp students and teachers. The van One of the most important Division Councilor program provides that conduit missions of SPE is to attract of energy into education. Please and provide education for the contact me or call SPE to discuss next generation of plastics having the Plastics Van visit your professionals. The sustainability of our industry depends on the school district. success of students in plastics and polymer-related fi elds as they Furthering the promotion of further their plastics education, quality plastics education enter into their chosen fi eld and development, the Foundation continue as SPE members. In voted to provide funding order to support that mission necessary for SPE to become the Society now has a new part of the Accreditation Board membership opportunity for for Engineering and Technology future plastics engineers. Effec- (ABET). This will provide SPE tive immediately, SPE Sections with a seat on the ABET Board and Divisions can sponsor sponsoring the fi eld of plastics student members for 4 years of engineering and will allow SPE to SPE membership for $124.00. be part of the auditing committee This will provide membership of plastics programs. Until the for the student throughout their SPE Foundation’s move to secure THERMOFORMING QUARTERLY 29 MARK YOUR CALENDAR! September 9 – 12, 2013 22nd Annual Thermoforming Conference Atlanta, Georgia

Co-Chair Bret Joslyn Joslyn Manufacturing 9400 Valley View Road Macedonia, OH 44056 330.467.8111 [email protected]

Co-Chair Eric Short Premier Material Concepts (PMC) 2040 Industrial Drive Findlay, OH 45840 248.705.2830 [email protected]

Cut Sheet Technical Chair Roger Jean Premier Material Concepts (PMC) 2040 Industrial Drive Findlay, OH 45840 567.208.9758 [email protected]

RENAISSANCE WAVERLY HOTEL Roll Fed Technical Chair Mark Strachan & COBB GALLERIA UVU Technologies 6600 E. Rogers Circle Boca Raton, FL 33487 754.224.7513 [email protected]

Parts Competition Jim Arnet Kydex Company 3604 Welborne Lane Flower Mound, TX 75022 For Reservations: 972.213.6499 1-888-391-8724 [email protected] Request SPE Room Rate of $169.00 SAVE THE DATE!! www.thermoformingdivision.com

30 THERMOFORMING QUARTERLY Need help with your technical school or college expenses?

f you or someone you know is I working towards a career in the plastic industry, let the SPE Thermoforming Division help support those education goals. Within this past year alone, our organization has awarded multiple scholarships! Get involved and take advantage of available support from your plastic industry! Here is a partial list of schools and colleges whose students have benefi ted from the Thermoforming Division Scholarship Program: • UMASS Lowell • San Jose State • Pittsburg State • Penn State Erie • University of Wisconsin • Michigan State • Ferris State REDUCE! REUSE! RECYCLE! • Madison Technical College • Clemson University • Illinois State • Penn College Start by completing the application forms at www.thermoformingdivision. com or at www.4spe.com. R

THERMOFORMING QUARTERLY 31 32 THERMOFORMING QUARTERLY THERMOFORMING QUARTERLY 33 Executive 2012 - 2014 THERMOFORMING DIVISION ORGANIZATIONAL CHART Chair Committee Phil Barhouse

Chair Elect Secretary Treasurer Councilor Prior Chair 2012 - 2014 Mark Strachan Bret Joslyn James Alongi Roger Kipp Ken Griep CHAIR 2012 Conference Phil Barhouse Finance Nominating AARC Grand Rapids, MI Communications Bob Porsche Tim Hamilton Brian Ray Haydn Forward Clarissa Schroeder Spartech Packaging Technologies Lola Carere 100 Creative Way, PO Box 128 Newsletter / Technical Ripon, WI 54971 Antec 2013 Conference Membership Technical Committees Editor (920) 748-1119 Brian Winton Atlanta, GA Haydn Forward Conor Carlin Bret Joslyn Fax (920) 748-9466

[email protected] Publications / Processing OPCOM Student Programs Conference Advertising Haydn Forward Mark Strachan Brian Winton Coordinator Laura Pichon CHAIR ELECT Lesley Kyle

Mark Strachan Materials Recognition Global Thermoforming Roger Jean Juliet Goff Technologies 1550 SW 24th Avenue Machinery Ft. Lauderdale, FL 33312 Don Kruschke (754) 224-7513 [email protected]

TREASURER James Alongi MAAC Machinery 590 Tower Blvd. Carol Stream, IL 60188 (630) 665-1700 Fax (630) 665-7799 [email protected]

SECRETARY Bret Joslyn Joslyn Manufacturing 9400 Valley View Road Macedonia, OH 44056 (330) 467-8111 Fax (330) 467-6574 [email protected] COUNCILOR WITH TERM ENDING 2015 Roger Kipp (717) 521-9254 [email protected]

PRIOR CHAIR Ken Griep Portage Casting & Mold 2901 Portage Road Portage, WI 53901 (608) 742-7137 Fax (608) 742-2199 [email protected]

34 THERMOFORMING QUARTERLY Board of Directors

D,/EZzKDD/dd DdZ/>^KDD/dd >ĂƵƌĂWŝĐŚŽŶ ƌĞƚ:ŽƐůLJŶ džͲdĞĐŚWůĂƐƟĐƐ :ŽƐůLJŶDĂŶƵĨĂĐƚƵƌŝŶŐ :ĂŵĞƐůŽŶŐŝ :ŝŵƌŵŽƌ WKŽdžϱϳϲ ϵϰϬϬsĂůůĞLJsŝĞǁZŽĂĚ DDĂĐŚŝŶĞƌLJ ƌŵŽƌΘƐƐŽĐŝĂƚĞƐ ϭϭϰϭϯƵƌůŝŶŐƚŽŶZŽĂĚ DĂĐĞĚŽŶŝĂ͕K,ϰϰϬϱϲ ϱϵϬdŽǁĞƌůǀĚ͘ ϭϲϭϴϭ^ĂŶƚĂĂƌďĂƌĂ>ĂŶĞ ZŝĐŚŵŽŶĚ͕/>ϲϬϬϳϭ d͗ϯϯϬ͘ϰϲϳ͘ϴϭϭϭ ĂƌŽů^ƚƌĞĂŵ͕/>ϲϬϭϴϴ ,ƵŶƟŶŐƚŽŶĞĂĐŚ͕ϵϮϲϰϵ d͗ϴϰϳ͘ϴϮϵ͘ϴϭϮϰ &͗ϯϯϬ͘ϰϲϳ͘ϲϱϳϰ d͗ϲϯϬ͘ϲϲϱ͘ϭϳϬϬ d͗ϳϭϰ͘ϴϰϲ͘ϳϬϬϬ &͗ϴϭϱ͘ϲϳϴ͘ϰϮϰϴ ďƌĞƚΛũŽƐůLJŶͲŵĨŐ͘ĐŽŵ &͗ϲϯϬ͘ϲϲϱ͘ϳϳϵϵ &͗ϳϭϰ͘ϴϰϲ͘ϳϬϬϭ ůƉŝĐŚŽŶΛĞdžƚĞĐŚƉůĂƐƟĐƐ͘ĐŽŵ ũĂůŽŶŐŝΛŵĂĂĐŵĂĐŚŝŶĞƌLJ͘ĐŽŵ ũŝŵĂƌŵŽƌΛĂŽů͘ĐŽŵ ^ƚĞƉŚĞŶDƵƌƌŝůů ZŽďĞƌƚ'͘WŽƌƐĐŚĞ WƌŽĮůĞWůĂƐƟĐƐ ZŽŐĞƌ&Ždž :ŝŵƌŶĞƚ 'ĞŶĞƌĂůWůĂƐƟĐƐ ϲϱ^͘tĂƵŬĞŐĂŶ dŚĞ&ŽdžŵŽƌ'ƌŽƵƉ <LJĚĞdž>> ϮϲϬϵtĞƐƚDŝůůZŽĂĚ >ĂŬĞůƵī͕/>ϲϬϬϰϰ ϭϭϭϵtŚĞĂƚŽŶKĂŬƐŽƵƌƚ ϯϲϬϰtĞůďŽƵƌŶĞ>ĂŶĞ DŝůǁĂƵŬĞĞ͕t/ϱϯϮϬϵ d͗ϴϰϳ͘ϲϬϰ͘ϱϭϬϬdžϮϵ tŚĞĂƚŽŶ͕/>ϲϬϭϴϳ &ůŽǁĞƌDŽƵŶƚ͕dyϳϱϬϮϮ d͗ϰϭϰͲϯϱϭͲϭϬϬϬ &͗ϴϰϳ͘ϲϬϰ͘ϴϬϯϬ d͗ϲϯϬ͘ϲϱϯ͘ϮϮϬϬ d͗ϵϳϮ͘ϳϮϰ͘ϮϲϮϴ &͗ϰϭϰͲϯϱϭͲϭϮϴϰ ƐŵƵƌƌŝůůΛƚŚĞƌŵŽĨŽƌŵ͘ĐŽŵ &͗ϲϯϬ͘ϲϱϯ͘ϭϰϳϰ ĂƌŶĞƚũΛŬLJĚĞdž͘ĐŽŵ ďŽďΛŐĞŶƉůĂƐ͘ĐŽŵ ƌĨŽdžΛĨŽdžŵŽƌ͘ĐŽŵ DĂƌŬ^ƚƌĂĐŚĂŶ WŚŝůĂƌŚŽƵƐĞ ůĂƌŝƐƐĂ^ĐŚƌŽĞĚĞƌ 'ůŽďĂůdŚĞƌŵŽĨŽƌŵŝŶŐ ŽŶ<ƌƵƐĐŚŬĞ;ŚĂŝƌͿ ^ƉĂƌƚĞĐŚWĂĐŬĂŐŝŶŐ ƵƌŝŐĂWŽůLJŵĞƌƐ dĞĐŚŶŽůŽŐŝĞƐ WůĂƐƟĐƐDĂĐŚŝŶĞƌLJ'ƌŽƵƉ dĞĐŚŶŽůŽŐŝĞƐ ϭϱϱϭĞǁďĞƌƌLJZŽĂĚ ϭϱϱϬ^tϮϰƚŚǀĞŶƵĞ ϯϭϬϬϱĂŝŶďƌŝĚŐĞZĚ͘ηϲ ϭϬϬƌĞĂƟǀĞtĂLJ ^ƉĂƌƚĂŶďƵƌŐ͕^ϮϵϯϬϳ &ƚ͘>ĂƵĚĞƌĚĂůĞ͕&>ϯϯϯϭϮ ^ŽůŽŶ͕K,ϰϰϳϯϵ WKŽdžϭϮϴ d͗ϴϲϰ͘ϱϳϵ͘ϱϬϰϳ d͗ϳϱϰ͘ϮϮϰ͘ϳϱϭϯ d͗ϰϰϬ͘ϰϵϴ͘ϰϬϬϬ ZŝƉŽŶ͕t/ϱϰϵϳϭ &͗ϴϲϰ͘ϱϳϵ͘ϱϮϴϴ ŐůŽďĂůŵĂƌŬƐΛŚŽƚŵĂŝů͘ĐŽŵ &͗ϰϰϬ͘ϰϵϴ͘ϰϬϬϭ d͗ϵϮϬ͘ϳϰϴ͘ϭϭϭϵ ĐůĂƌŝƐƐĂ͘ƐĐŚƌŽĞĚĞƌΛƵƐ͘ŝŶĚŽƌĂŵĂ͘ŶĞƚ ĚŽŶŬΛƉůĂƐƟĐƐŵŐ͘ĐŽŵ &͗ϵϮϬ͘ϳϰϴ͘ϵϰϲϲ :ĂLJtĂĚĚĞůů ƉŚŝů͘ďĂƌŚŽƵƐĞΛƐƉĂƌƚĞĐŚ͘ĐŽŵ ƌŝĐ^ŚŽƌƚ WůĂƐƟĐƐŽŶĐĞƉƚƐΘ/ŶŶŽǀĂƟŽŶƐ DŝŬĞ^ŝƌŽƚŶĂŬ WƌĞŵŝĞƌDĂƚĞƌŝĂůŽŶĐĞƉƚƐ ϭϭϮϳYƵĞĞŶƐďŽƌŽƵŐŚZŽĂĚ ^ŽůĂƌWƌŽĚƵĐƚƐ >ŽůĂĂƌĞƌĞ ϭϭϭϲϱ,ŽƌƚŽŶZŽĂĚ ^ƵŝƚĞϭϬϮ ϮϮϴtĂŶĂƋƵĞǀĞŶƵĞ ĂŶĚ<WůĂƐƟĐƐ͕/ŶĐ͘ ,ŽůůLJ͕DŝĐŚŝŐĂŶϰϴϰϰϮ Dƚ͘WůĞĂƐĂŶƚ͕^Ϯϵϰϲϰ WŽŵƉƚŽŶ>ĂŬĞƐ͕E:ϬϳϰϰϮ ϱϭϮ&ŽdžƌĞĞŬƌŽƐƐŝŶŐ d͗Ϯϰϴ͘ϳϬϱ͘ϮϴϯϬ d͗ϴϰϯ͘ϵϳϭ͘ϳϴϯϯ d͗ϵϳϯ͘Ϯϰϴ͘ϵϯϳϬ tŽŽĚƐƚŽĐŬ͕'ϯϬϭϴϴ ĞƐŚŽƌƚΛƌŽǁŵĂƌŬ͘ĐŽŵ &͗ϴϰϯ͘Ϯϭϲ͘ϲϭϱϭ &͗ϵϳϯ͘ϴϯϱ͘ϳϴϱϲ d͗ϳϯϮ͘ϴϰϭ͘Ϭϯϳϲ ũǁĂĚĚĞůůΛƉůĂƐƟĐŽŶĐĞƉƚƐ͘ĐŽŵ ŵƐŝƌŽƚŶĂŬΛƐŽůĂƌƉƌŽĚƵĐƚƐ͘ĐŽŵ ůĐĂƌĞƌĞΛĐĂŶĚŬƉůĂƐƟĐƐ͘ĐŽŵ WZK^^/E'KDD/dd ŝƌĞĐƚŽƌŵĞƌŝƚƵƐ ƌŝĂŶZĂLJ :ƵůŝĞƚ'Žī ƌƚƵĐŬĞů ZĂLJWƌŽĚƵĐƚƐ <ĂůWůĂƐƟĐƐ ,ĂLJĚŶ&ŽƌǁĂƌĚ;ŚĂŝƌͿ DĐŽŶŶĞůůŽŵƉĂŶLJ ϭϳϬϬŚĂďůŝƐƌŝǀĞ ϮϬϱϬĂƐƚϰϴƚŚ^ƚƌĞĞƚ ^ƉĞĐŝĂůƚLJDĂŶƵĨĂĐƚƵƌŝŶŐŽ͘ ϯϰϱϮĂLJŽŶŶĞƌŝǀĞ KŶƚĂƌŝŽ͕ϵϭϳϲϭ sĞƌŶŽŶ͕ϵϬϬϱϴͲϮϬϮϮ ϲϳϵϬEĂŶĐLJZŝĚŐĞZŽĂĚ ^ĂŶŝĞŐŽ͕ϵϮϭϬϵ d͗ϵϬϵ͘ϯϵϬ͘ϵϵϬϲ d͗ϯϮϯ͘ϱϴϭ͘ϲϭϵϰ ^ĂŶŝĞŐŽ͕ϵϮϭϮϭ d͗ϴϱϴ͘Ϯϳϯ͘ϵϲϮϬ &͗ϵϬϵ͘ϯϵϬ͘ϵϵϴϰ ũƵůŝĞƚΛŬĂůͲƉůĂƐƟĐƐ͘ĐŽŵ d͗ϴϱϴ͘ϰϱϬ͘ϭϱϵϭ ĂƌƚďƵĐŬĞůΛƚŚĞƌŵŽĨŽƌŵŝŶŐŵĐ͘ĐŽŵ ďƌŝĂŶƌΛƌĂLJƉůĂƐƟĐƐ͘ĐŽŵ &͗ϴϱϴ͘ϰϱϬ͘ϬϰϬϬ dŝŵ,ĂŵŝůƚŽŶ ŚĨŽƌǁĂƌĚΛƐŵŝͲŵĨŐ͘ĐŽŵ ŝƌĞĐƚŽƌŵĞƌŝƚƵƐ ƌŝĂŶtŝŶƚŽŶ ^ƉĂƌƚĞĐŚŽƌƉŽƌĂƟŽŶ 'ǁĞŶDĂƚŚŝƐ >LJůĞ/ŶĚƵƐƚƌŝĞƐ͕/ŶĐ͘ ϭϭϲϱϬ>ĂŬĞƐŝĚĞƌŽƐƐŝŶŐŽƵƌƚ <ĞŶ'ƌŝĞƉ WKŽdžϰϳϭ ϰϭϰϰt͘>LJůĞZŽĂĚ DĂƌLJůĂŶĚ,ĞŝŐŚƚƐ͕DKϲϯϭϰϲ WŽƌƚĂŐĞĂƐƟŶŐΘDŽůĚ >ŝŶĚĂůĞ͕'ϯϬϭϰϳͲϬϰϳϭ ĞĂǀĞƌƚŽŶ͕D/ϰϴϲϭϮ d͗ϯϭϰ͘ϱϲϵ͘ϳϰϬϳ ϮϵϬϭWŽƌƚĂŐĞZŽĂĚ d͗ϳϬϲ͘Ϯϯϱ͘ϵϮϵϴ d͗ϵϴϵͲϰϯϱͲϳϳϭϰdžϯϮ Ɵŵ͘ŚĂŵŝůƚŽŶΛƐƉĂƌƚĞĐŚ͘ĐŽŵ WŽƌƚĂŐĞ͕t/ϱϯϵϬϭ &͗ϳϬϲ͘Ϯϵϱ͘ϰϮϳϲ &͗ϵϴϵͲϰϯϱͲϳϮϱϬ d͗ϲϬϴ͘ϳϰϮ͘ϳϭϯϳ ŐŵĂƚŚŝƐϮϮϰΛĂŽů͘ĐŽŵ ďǁŝŶƚŽŶΛůLJůĞŝŶĚƵƐƚƌŝĞƐ͘ĐŽŵ ŽŶĂůĚ,LJůƚŽŶ &͗ϲϬϴ͘ϳϰϮ͘Ϯϭϵϵ DĐŽŶŶĞůůŽŵƉĂŶLJ ŬĞŶΛƉĐŵǁŝ͘ĐŽŵ ϲϰϲ,ŽůLJĮĞůĚ,ŝŐŚǁĂLJ &ĂŝƌďƵƌŶ͕'ϯϬϮϭϯ ^ƚĞǀĞ,ĂƐƐĞůďĂĐŚ d͗ϲϳϴ͘ϳϳϮ͘ϱϬϬϴ D/WůĂƐƟĐƐ ĚŽŶΛƚŚĞƌŵŽĨŽƌŵŝŶŐŵĐ͘ĐŽŵ ϮϮϮWĞƉƐŝtĂLJ LJĚĞŶ͕EϮϴϰϭϲ ZŽŐĞƌW͘:ĞĂŶ;ŚĂŝƌͿ d͗ϮϱϮ͘ϳϰϲ͘Ϯϭϳϭ ZŽǁŵĂƌŬͬWD &͗ϮϱϮ͘ϳϰϲ͘ϮϭϳϮ WKŽdžϭϲϬϱ ƐƚĞǀĞΛĐŵŝƉůĂƐƟĐƐ͘ĐŽŵ ϮϬϰϬ/ŶĚƵƐƚƌŝĂůƌŝǀĞ &ŝŶĚůĂLJ͕K,ϰϱϴϰϬ ZŽŐĞƌ<ŝƉƉ d͗ϱϲϳ͘ϮϬϴ͘ϵϳϱϴ d͗ϳϭϳ͘ϱϮϭ͘ϵϮϱϰ ƌũĞĂŶΛƌŽǁŵĂƌŬ͘ĐŽŵ ƐƌŬŝƉƉΛŵƐŶ͘ĐŽŵ

THERMOFORMING QUARTERLY 35 Thermoforming FIRST QUARTER 2013 Quarterly® VOLUME 32 I NUMBER 1

Sponsor Index These sponsors enable us to publish Thermoforming Quarterly

„$OOHQ „%URZQ0DFKLQH „&070DWHULDOV „*13ODVWLFV „*3(& „.LHIHO „.07 „.\GH[ ,QVLGH%DFN&RYHU „0$$&0DFKLQHU\ „0F&ODULQ3ODVWLFV „0LWVXELVKL(OHFWULF „1RYD&KHPLFDOV „3&, „3ODVWLFV0DFKLQHU\*URXS „30& ,QVLGH%DFN&RYHU „3RUWDJH&DVWLQJ 0ROG „3ULPH[3ODVWLFV „3URGXFWLYH3ODVWLFV „3UR¿OH3ODVWLFV&RUS „37L,QVLGH)URQW&RYHU „5D\3URGXFWV „6RODU3URGXFWV „6SDUWHFK „7HPSFR „736 „76/ „:HFR,QW¶O,QF „=HG,QGXVWULHV Thermoforming Division Membership Benefi ts I Access to industry knowledge from one central location: www.thermoformingdivision.com. I Subscription to Thermoforming Quarterly, voted “Publication of the Year” by SPE National. I Exposure to new ideas and trends from across the globe I New and innovative part design at the Parts Competition. I Open dialogue with the entire industry at the annual conference. I Discounts, discounts, discounts on books, seminars and conferences. I For managers: workshops and presentations tailored specifi cally to the needs of your operators. I For operators: workshops and presentations that will send you home with new tools to improve your performance, make your job easier and help the company’s bottom line. JOIN D25 TODAY!

36 THERMOFORMING QUARTERLY