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Mike Verkamp

Business Development Manager

Sandvik Coromant

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Married & Father of 3 daughters

Education: BS Industrial Management/Industrial

Engineering from Purdue University, West Lafayette, IN

MBA from IU, Bloomington, IN

Current Position: Business Development Manager, Sandvik

Coromant MAA

Hobbies: Triathlons, Home Improvement Projects,

Leadership Training, Coaching

Mike Verkamp

Can we really predict the future?

“The horse is here to stay but the automobile is only a novelty, a fad.” – President of the Michigan Savings Bank advising Henry Ford's lawyer not to invest in the Ford Motor Co., 1903.

“The wireless music box has no imaginable commercial value. Who would pay for a message sent to no one in particular?” – Associates of David Sarnoff responding to the latter's call for investment in the radio in 1921

“Who the hell wants to hear actors talk?” – H. M. Warner, co-founder of Warner Brothers, 1927.

“Dear Mr. President: The canal system of this country is being threatened by a new form of transportation known as 'railroads'... As you may well know, Mr. President, 'railroad' carriages are pulled at the enormous speed of 15 miles per hour by 'engines' which, in addition to endangering life and limb of passengers, roar and snort their way through the countryside, setting fire to crops, scaring the livestock and frightening women and children. The Almighty certainly never intended that people should travel at such breakneck speed.” – Martin Van Buren, Governor of New York, 1830(?).

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Industrial megatrends 2012

1. IT organizations will make foundational investments to deliver both IT productivity and business value.

2. Manufacturers will focus on clock-speed alignment across the supply and demand sides of their supply chains.

3. The requirement for speed and the ubiquity of information creates a new landscape for IT support of the supply chain.

4. The factory of the future will be driven by capabilities to fulfill customer demand rather than pure production capacity.

5. Manufacturers will shine the environmental sustainability spotlight on the factory as a means of getting to the product.

4 Source: Association for Manufacturing Excellence, www.ame.org

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What does it all mean?

We’re moving from a world of mass production to a world of mass production AND mass customization…agility based

manufacturing.

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The Value Chain

Challenges

Components

Material Machinability

Processes

Machines

Capacity

Capital purchase planning

Competencies

Virtual Machining

Programming

Purchasing Systems

Shipping

Product Marking

Product Packing

Asset Utilization

Scrap rate

Quality

Competence

Inventory

Administration

Reconditioning

Recycling

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How to find a sustainable solution to communicate tool data ?

1,000,000

Manufacturing units

50

CAM suppliers200

Machine tool builders

100

Tool Suppliers Standardization with

ISO 13399

Solution

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ISO13399The Information Carrier

• “Plug & Play” interface for cutting tool information:– Designed for system to system communication.

High demand on information quality:– International standard. One language for communication.

One translation is more reliable than multiple translations.

Possibility to communicate also new cutting tool concepts

– Standardizing how to handle the information – not the cutting tool itself.

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The Value Chain

Challenges

Components

Material Machinability

Processes

Machines

Capacity

Capital purchase planning

Competencies

Virtual Machining

Programming

Purchasing Systems

Shipping

Product Marking

Product Packing

Asset Utilization

Scrap rate

Quality

Competence

Inventory

Administration

Reconditioning

Recycling

Cutting time = 60% x 50% x 80% = 24%

Other time

Production time (planned)

Machining time

Tool change Set-up & Gauge

Machine stopped

Work piece change

Other

Breakdowns

Cutting time

Non-cutting & Tool change time

50%

10 %

10 %

5 %

25 %

20%

80%

40 %

60%

Metal removal = Adding value

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Impact on cost per part

Fixed costs2 805

Value

Productionquantity

Variable costs1 275

100

80

25

51 62

Add.v costs275

Before

Cost per part: 80(2 805 + 1 275) / 51

12% Reduction in Cost/Part

After

Cost per part: 70(2 805 + 1 275 + 275) / 62

Impact on Gross Profit

Gross profit1 020

Fixed costs2 805

Value

Productionquantity

Variable costs1 275

100

80

25

51 62

After

Gross profit: 1 845

Gross profit margin: 30%(1 020 + 825) / (62 x 100)

Before

Gross profit: 1 020

Gross profit margin: 20%1 020 / (51 x 100)

Add.v costs275

Grossprofit825

50% Increase in GP margin

81% Increase in total GP

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Cost Per Part Gross Profit

Financial impact summary

Reduction: 12% Increase: 81%

80

70

75

1 845

1 020

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The Value Chain

Challenges

Components

Material Machinability

Processes

Machines

Capacity

Capital purchase planning

Competencies

Virtual Machining

Programming

Purchasing Systems

Shipping

Product Marking

Product Packing

Asset Utilization

Scrap rate

Quality

Competence

Inventory

Administration

Reconditioning

Recycling

Source: www.visualcapitalist.com/portfolio/tungsten-an-industrial-metal-with-unstable-supply15

Source: www.visualcapitalist.com/portfolio/tungsten-an-industrial-metal-with-unstable-supply16

Financially, it makes sense…

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Prices paid for used carbide have ranged from $12 to $16 per pound recently

Recycling programs are easier than ever to implement

Modern recycling processes yield 90% usable carbide

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But, the best reason to implement a carbide recycling program

might be because it is just the right thing to

do…

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Here's how it works:Call 1-800-SANDVIK (1-800-726-3845) to order your free carbide-recycling container.

When full, return your container with packing slip to:

    Sandvik Coromant Recycling Program    C/O DHL    2151 South Park Drive, Suite 1    Hebron, KY 41048

Sandvik Coromant pays you the current rate per pound for your recycled carbide.

Sandvik Coromant sends all carbide inserts and round tools to ISO 14001/OHSAS 18001-certified plants, to ensure that all carbide is recycled using approved, environmentally friendly methods. Together, we can do our part to promote more sustainable manufacturing processes.

Sandvik Coromant Sandvik Coromant Carbide RecyclingCarbide Recycling

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