® 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 WWW.THERMOFORMINGDIVISION.COM 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 A operation 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.