big impact - ESCO Corporation
Transcription
big impact - ESCO Corporation
THE DECEMBER 2006 Solutions from ESCO Molten metal is poured into an AOD purifying vessel in ESCO Portland’s Main Plant. IN THIS ISSUE BIG IMPACT THE EDGE DECEMBER 2006 ESCO MISSION To be the premier provider of highly engineered, technically rich metal components and solutions for industrial applications. The EDGE: Solutions from ESCO The Magazine of ESCO Corporation December 2006 Volume 3 Issue 3 ESCO Corporation, founded in 1913 in Portland, Oregon, USA, is a global group of companies that manufactures engineered metal parts and components for industrial applications. ESCO is comprised of two operating groups: Engineered Products Group Editor John Howard Innovation leader for metal wear parts, components and earthmoving products used in global mining, construction, dredging and other challenging industrial applications. Designer Natalie Maciukenas Turbine Technologies Group Director of Marketing Communications Jodi Walder-Biesanz Responsive manufacturing partner for precision investment cast components in aerospace and industrial gas turbine applications. Contributing Writer Robert C. Kenneth Engineered Metals Group The EDGE staff would like to thank the following individuals for their help on this issue: Western United States supplier of processed stainless steel, and a provider of engineered metal parts and components. Peter Bechen, David Bolton, Gary Charbonneau, Robin Churchill, Candy Clardy, John Dillon, David Dow, Lonnie Farber, Jeff Haugen, Mike House, Pete Huget, John Russell, Jim Snook, Adam Stitzel, Steve Tate, Chip Tran, Stephanie Travis, Becky Van Raden, Joe Weber and Wei Yu. Integrated Manufacturing Group The EDGE is published in April, August and December. Readers’ comments and suggestions are always welcome. EDGE Magazine ESCO Corporation 2141 NW 25th Avenue Portland, Oregon USA 97210 email: EDGE MISSION • Show the strengths and problem-solving capabilities of ESCO’s business groups • Spotlight ESCO’s successes in the diverse markets it serves Premier provider and vertical integrator of technically rich components, assemblies and replacement parts for outsourced manufacturing and machining. TO THE EDITOR Natalie and John, Jodi is getting tired of hearing me rave about this issue. I’ve been reading the EDGE since you guys started doing it, but the August issue is over the top. The layout/ design pulled me right through the issue from cover to cover. The articles made me want to join up or buy something to somehow be a part of the ESCO story. Wow! Michael Walder-Biesanz I just received the new [August 2006] EDGE. Congratulations for this job and for the design. It looks very nice. It is a pleasure to read it! Fabrice Simonet Marketing Communications, ESCO Europe • Communicate the values and traditions that make ESCO unique Dear John, • Help build lasting and mutually beneficial relationships with customers It is not unusual for me to write a complimentary note to [you] about the incredible issues of the EDGE. The 2006 August publication certainly is no exception. © 2006 ESCO Corporation. All Rights Reserved. Printed in the USA. ESCO, Helilok, Kwik-Lok, Posilok, Spherilok, Super V, SV2, Toplok, Vertalok, and Zipper Lip are registered trademarks, and Hi-Vis and Conical are trademarks of ESCO Corporation. Bucyrus Blades is a trademark of Bucyrus Blades, Inc. Vidaplate is a registered trademark of Bradken Resources. All other trademarks are property of THE EDGE DECEMBER 2006 their respective owners. The interview with Bob Warren Jr. was a touch of class and most informative for those who do not know Cascade too well. Bob Jr. has taken the legacy and done something with it. The selection of people around him exhibit wonderful talent, particularly in engineering and purchasing. Bill Barber Bill was technical director at ESCO before his retirement. His thoughtful letter, which he copied to ESCO director Bob Warren, reminisced about Bob Warren Sr., who also was a director of ESCO Corporation. Bill listed Bob Warren Sr. as a mentor and a supporter of capital expenditures at ESCO for sophisticated technology such as spectrographs and expensive x-ray units. FROM THE EDITOR CONTENTS BIG IMPACT In planning ahead for each issue of the EDGE, we try to assign a theme that applies to all of ESCO’s diverse businesses and therefore hold interest for the largest number of readers. For example, in the August issue we explored the theme of water, and developed articles about submarines, dams, bridges, offshore oil rigs, shipping, Persian Gulf dredging, etc. Reader response to that issue was very positive. This time we selected a more abstract theme: big impact. Some of the articles emphasize physical bigness, such as a piece about the largest dragline bucket manufactured by ESCO Engineered Products—big enough to fit a pair of UPS delivery vans inside! Other articles focus on internal initiatives or technologies that have had a big impact on our manufacturing efficiency and improved customer service. Two new computer-aided machining centers and an enormous coordinate measuring machine added recently by ESCO Integrated Manufacturing, for example, have increased its speed, capacity and capability to grow the business. And the argon-oxygen decarburization vessel (AOD) that ESCO first added in 1973 to make extra-pure alloys for US Navy components later paid big dividends in ESCO Engineered Products’ business, as well. 4 ESCO’S BIGGEST BUCKET 8 “THE GUILLOTINE” Programs like the corporation-wide quality-value-speed (QVS) initiative have had a major impact on ESCO’s customer responsiveness and cost containment. Without QVS and a global commitment to Lean manufacturing, ESCO would not be enjoying the record sales volume and market leadership that we command today. To have a big impact with a product or program is almost always the result of the sum of small impacts made by individual employees. The willingness to learn a new process, the initiative to suggest a better idea, the ability to work as a team member, a sensitivity to the needs of a customer —these are the sorts of small, everyday steps that can lead to success on a big scale. 14 ESCO IMPELLER BARS 21 As always, we hope you find this issue informative and we encourage readers to contact us with your praise, complaints and suggestions regarding the content and presentation of your ESCO EDGE Magazine. TT PROCESS IMPROVEMENTS AOD FURNACE 6 CHARPY IMPACT TESTING 7 ESCO EM CUSTOMER: DMC 10 IMPACT OF FLOGGING 12 ESCO’S FLOGGER STATUE 13 — John R. Howard, editor DONHUANG SAND DUNES 14 ESCO ARMOR STEEL 19 INTERVIEW WITH DIRECTOR PETER BECHEN 20 QVS SUMMIT 22 IM EQUIPMENT MAKES BIG IMPACT 24 SERVICE ANNIVERSARIES 26 ESCO’S BIGGEST THE EDGE DECEMBER 2006 BUCKET F by John Howard olks unfamiliar with modern day surface mining of coal are often amazed at the scale of today’s mining machinery. Dragline machines, nearly as big as a city block and standing three stories high, are used to remove the rocky material—called overburden—that rests on top of coal seams. Like long-necked dinosaurs, dragline machines are moved very slowly on enormous track pads. When the operator gets the machine in position, he or she can cast out the bucket, fill it, swing the boom and dump the bucket contents to the side. ESCO manufactures the huge buckets that dragline machines use to remove and replace overburden. Open at the front, a dragline bucket fills as it is drawn through the material via huge cast steel alloy drag chains, also manufactured by ESCO. Economy of Scale The larger and more powerful the dragline machine, the larger the bucket it can handle. Using a large, high capacity bucket allows more material to be moved with each pass. To date, the largest dragline bucket manufactured by ESCO measures 164 cubic yards. It was sold to the Black Thunder Coal Mine in the Powder River Basin near Gillette, Wyoming. Many hundreds of ESCO® dragline buckets are in use today in coal mines throughout North America, Australia, and other surface coal mining regions. ■ THE EDGE DECEMBER 2006 In 1973, ESCO was the first steel foundry in the U.S. to adopt argon decarburization (AOD) technology to purify steel alloys. THE EDGE DECEMBER 2006 oxygen CHARPY IMPACT TESTING by John Howard O ne of the many tools that ESCO’s Metallurgy Department uses to develop and test new steel alloys is the Charpy impact test. This mechanical test is a simple, fast and economical way to determine the toughness of a sample of steel. The test consists of a pendulum hammer that is swung to strike a notched sample of steel. The amount of energy absorbed by the sample material can be calculated by comparing the distance the hammer swings without striking the sample to the distance it goes when it does fracture the sample. Afterwards, analysis of the fractured surfaces can provide valuable additional information on the percent of ductile and brittle fracture. Tough steels absorb a lot of energy before fracture, while brittle steels absorb relatively little energy before they fracture. “ESCO Engineered Products uses the Charpy test almost daily to determine if the heat treating was done correctly and the castings meet requirements,” explained Gary Charbonneau, laboratory technician. “The results are measured in foot-pounds, and the foot-pounds determine if the casting has the right toughness to continue through processing. In some cases, we find that a casting needs more heat treating to achieve the required toughness.” ■ ESCO lab technicians study fractured steel samples to determine if further heat treating is necessary. THE EDGE DECEMBER 2006 “THE GUILLOTINE” Product Test Lab Measures the Impact of a 3 Ton Weight Crashing Down on Castings by John Howard I n order to assure the strength and integrity of products released to the market by ESCO Engineered Products, our in-house Product Test Lab (PTL) subjects steel castings and assemblies to a variety of tests. In some cases, products are destroyed in order for engineers to learn how designs hold up under extreme impact, fatigue or wear. the weight is released, it plummets downward, reaching a speed of 31 feet per second upon impact. A special steel “striker bar” impacts the target product, usually shattering it into a number of pieces. The noise is tremendous. Shock absorbers at the base of the tower help minimize the vibration moving into adjacent rooms and buildings. Perhaps the most massive and destructive tool in the PTL’s analytical arsenal is the instrumented drop tower, nicknamed “the guillotine”. Similar to its infamous French namesake, ESCO’s guillotine utilizes a dropping weight to do its damage. The instrument does not slice the casting or assembly, however. Instead, it strikes a powerful concentrated blow that breaks the product into pieces. In years past, visual examination of the broken parts afterward provided some valuable information to the technicians and engineers. Analysis of fracture surfaces and locations gave an understanding of the part’s weaknesses and strengths. The guillotine stands about 20 feet tall in a special room at the back of the laboratory. Like a black missile tube, it extends up through the ceiling into a specially built cupola. The tower is fitted with a 6,000 pound (2,725 kg) steel weight which is raised by electromagnet to a height of 15 feet inside a thick steel tube. The product being tested is mounted on a robust fixture and carefully positioned at the bottom of the tube. Heavy steel safety/containment doors are closed around the target. When Sophisticated instrumentation has been added to the drop tower over the past 2 years to increase the amount of information available from the testing. Now failure loads can be measured directly and the sequences of failures documented. This is particularly valuable for situations where more than one component may fail during the test. The order of failure can be critical information for understanding the function of a complex system. “Now we can review the entire sequence of failure, study the data and make design improvements,” said Becky Van Raden, project engineer. Simulation Software in the Near Future ESCO has recently invested in computer software to simulate drop tower impact testing. The software will enable ESCO engineers to predict where impact failures will occur in earthmoving products and at what force level. “We will be able to model the impact of a shovel dipper door slamming ... or points and adapters impacting large boulders,” said Becky. “We may even be able to model various soils and how our products penetrate them. The software will allow us to vary angles, weights, alloys, and the length of events.” She emphasized, however, that the software may never entirely replace the empirical data provided by the drop tower. “The guillotine will always be valuable to validate what the software indicates will happen when a product is struck by a three ton load,” she concluded. ■ Engineers Severn Durand and Becky Van Raden review THE EDGE DECEMBER 2006 super slow motion video of a tooth being tested. “Now we can review the entire sequence of failure, study the data and make design improvements.” - Becky Van Raden, Project Engineer THE EDGE DECEMBER 2006 BIG IMPACT: ESCO Engineered Metals customer DMC supplies a majority of the hydraulic fittings for the world’s aircraft industry “Our directive from the investment group and the management team is to increase the value of the company,” noted Jeff Haugen, DMC’s materials manager. “Right now, we’re the dominant player in the hydraulic fittings niche. We’re enjoying record orders and backlog.” The firm currently employs about 450 at its Gardena, California plant and an additional 150 employees at its facility in France. The two plants design and manufacture aluminum, stainless steel and titanium hydraulic fittings. D by John Howard esigned Metal Connections (DMC) of Gardena, California makes most of the permanent hydraulic fittings used by the world’s leading commercial aircraft manufacturers: Boeing, Airbus, Bombardier, Cessna, Embraer, Gulfstream and others. DMC also supplies hydraulic fittings for many military aircraft, as well as the space program. When it comes to airborne hydraulic fittings, DMC is #1 in the world. “A key to our business is to keep abreast of upcoming aircraft programs,” he continued. “Many aircraft manufacturers invite us to be involved in the development of new programs; they respect our skill and experience in hydraulic systems.” Participation in the development of new aircraft often leads to long-term agreements with aircraft manufacturers. DMC is vertically integrated in its design and manufacture of sophisticated hydraulic fittings. They cut, turn, forge, machine, heat treat, finish, inspect, paint and mark the parts. “We control the quality from start to finish,” Jeff noted. “Customers like that our parts are quick to learn and easy to install in the field. Our fittings are very reliable and require no welding or special processes to install.” He added that DMC The firm was founded in 1938 in Southern California by the Deutsch family. It existed as a simple job shop until World War II broke out and the United States suddenly needed all the aircraft that could be built. Nearby Douglas Aircraft approached Deutsch and asked if they could make hydraulic fittings for airplanes—and the rest, as they say, is history. Under the name Deutsch Metal Components, DMC quickly developed processes and products that put them at the forefront of the hydraulic fittings industry for aircraft. When the war was over, they continued to expand and meet the demand of the fast-growing commercial aircraft industry. Boeing, Lockheed, and McDonnell-Douglas all relied on the expertise of DMC for fittings. DMC established a sister company in France, called Permaswage. This manufacturing presence helped DMC penetrate the European aircraft industry, both commercial and military. In January 2005, the Deutsch family sold the company to an investor group, and the company name was changed to Designed Metal Connections. 10 THE EDGE DECEMBER 2006 Dave Bolton (ESCO EM sales) examines stainless steel fittings with Jeff Haugen, DMC materials manager. Nearly every major commercial aircraft manufacturer in the world uses hydraulic fittings made by DMC of Gardena, California. has a reputation for problem-solving and building excellent, long-term working relationships with customers. ESCO Supplies DMC’s Stainless Steel Approximately one-third of the hydraulic fittings manufactured by DMC are made of stainless steel. For over 20 years, ESCO Engineered Metals’ Los Angeles branch has supplied their stainless bar material. Every two weeks or so, DMC’s Purchasing Department releases a materials forecast that helps ESCO keep ahead of the customer’s stainless steel needs. ESCO’s Dave Bolton (outside sales) and Sheri Jakobsson (inside) work very closely with DMC’s Rosalina Adrineda, senior buyer; and Barbara Roberts, Purchasing manager, to provide on-time deliveries of needed materials. “We would love it if all our vendors were as good as ESCO,” said Jeff Haugen. As a result of years of excellent service, ESCO recently signed a two-year contract to provide all of DMC’s stainless steel material. DMC has a diverse and stable workforce. About 40 percent of their employees have 15 years or more seniority—a testament to the firm’s positive work environment. Purchasing Manager Barbara Roberts insisted, “This is a wonderful company to work for!” Over the last 60 years, DMC has had a big impact on the aircraft industry. ESCO Engineered Metals is pleased to have supported DMC’s rise to market leadership in hydraulic fittings for airplanes built in the United States, Europe and elsewhere. ■ THE EDGE DECEMBER 2006 11 The IMPACT of Flogging F by John Howard logging is the process of separating rough castings from the gates and risers that remain attached after they pass through molding and shakeout. Small castings are usually separated from their gating metal with band saws or abrasive cut-off wheels. Very large gates and risers, such as those attached to large mining bucket parts, are normally burned off with an acetylene torch. A heavy “pig” of steel is dropped from a height to knock-off some risers. Most medium-sized castings, such as ESCO® mining teeth and adapters, are separated from their gating systems by means of flogging—the sudden, powerful impact of a hammer. Manual flogging is heavy, tiring work. It is a job suited to strong young men who find satisfaction in swinging a heavy sledge hammer to efficiently separate castings with well-aimed blows. Many shop employees started out in one of ESCO Engineered Products’ flogging yards, burning calories and building muscles. Floggers wear special equipment to protect their toes, feet, legs, hands, eyes and other body parts from flying castings and slivers of metal. Pneumatic Hammers Deliver Mighty Blow To speed the process and minimize injuries, however, ESCO has invested in a number of pneumatic flogging hammers—devices that use compressed air rather than human muscle power to break castings apart. Suspended from small overhead cranes, 12 THE EDGE DECEMBER 2006 James Hubbard uses a pneumatic hammer to break apart castings. the Power Hammer™ devices are maneuvered so that the barrel is within inches of the casting cluster. Depending on the model, from 750 to 7,000 foot-pounds of energy is instantly released, sending parted castings skittering. “The hammers allow us to flog castings that we used to have to burn to remove the risers,” explained Lonnie Farber, manufacturing manager for EP Portland’s Main Plant Finishing, Heat Treating and Inspection Departments. “To burn risers off, we have to normalize, anneal, burn, arc, water quench and temper the castings—six steps. When we are able to hammer the castings apart, we only need to water quench and temper. Our first hammer paid for itself in three months.” Because of the time and cost advantages of flogging over burning, ESCO engineers and Methods technicians have worked hard to design castings with floggable risers. Today, about 80 percent of medium sized castings are flogged and 50 percent of large castings are flogged with pneumatic hammers to remove risers. Only a small percentage is flogged with a sledge hammer any more. ■ V ESCO’s Flogger Statue isitors to ESCO Engineered Products’ headquarters building in Portland, Oregon, may notice a stainless steel sculpture across from the entrance. The sculpture, called The Flogger, was created over 35 years ago by renowned Northwest sculptor Frederic Littman. Littman began with a clay sculpture which was then converted to plaster, then wax. The wax replica was used to make molds. When the wax was melted out, a mold cavity remained for the molten stainless steel. The larger than life-size sculpture was cast in six sections, then welded together. The statue was dedicated during a driving snowstorm on February 26, 1971 in a ceremony attended by then-Governor Tom McCall. Inscribed on a plaque at the base of the statue are the words: A Tribute to the People of ESCO. The statue has been photographed in all sorts of conditions, including when Portland was dusted with volcanic ash from Mt. St. Helens and someone taped a mask over the flogger’s face as a prank (above). THE EDGE DECEMBER 2006 13 Donhuang Sand Dunes 14 THE EDGE DECEMBER 2006 M r. Jianguo Liu of the Jiangxi Copper Company’s Dexing Mine, a major customer of ESCO and SCW, submitted this excellent photograph taken in Gansu and Xinjiang Provinces in far western China. Sometimes referred to as Inner Mongolia, the region is characterized by vast grasslands and deserts circled by towering mountains. The empire of the great Genghis Khan (1162-1227) was centered in this strikingly beautiful region. ESCO thanks Jianguo Liu (at right) for sharing this lovely photo. Dunhuang Sand Dunes—A crescent-shaped lake surrounded by “singing” sand dunes outside the oasis town of Dunhuang. The town was once a major stop on the Silk Road, the ancient trade route beteen China and Europe. The Mogao Caves near Dunhuang contain extraordinary Buddhist murals dating back over 1,500 years. THE EDGE DECEMBER 2006 15 ESCO® Impeller Bars Give “Amazing” Performance In Gresham Sand & Gravel’s Horizontal Shaft Impactor 16 THE EDGE DECEMBER 2006 by John Howard A Nordberg horizontal shaft impactor (HSI) at Gresham Sand & Gravel spins at 800 revolutions per minute. Whirring around inside the crusher is a set of four cast chrome white iron impeller bars, made by ESCO. Each weighs 960 pounds — nearly half a ton. Twenty - four hours a day, seven days a week these incredibly tough bars smash softball-size river rock to bits.Ñ THE EDGE DECEMBER 2006 17 Impact after impact, the bars keep crushing for 500 hours ... then 600 ... then 700 hours—far longer than the manganese bars made by ESCO’s competitors. “We were totally amazed by how long they lasted,” said superintendent Mike House. Gresham Sand & Gravel is one of five aggregate operations in the Portland, Oregon metropolitan area run by Morse Brothers Inc. (MBI). MBI, in turn, is owned by Knife River Corporation (KRC), one of the nation’s larger publicly traded construction materials companies. KRC has nearly 60 construction materials companies located in 11 states in the central and western United States, and ESCO has a national supply agreement with the organization. Gresham Sand & Gravel has produced millions of tons of sand and aggregate. The aggregate is used primarily by local building contractors as foundation base rock. The pit, located east of the city of Portland, has been mined since the 1940s. The material is largely rounded river rock deposited in ancient times by the Missoula Floods. MBI bought the Gresham pit in 2000 and the horizontal shaft impactor type crusher was brought in a few years ago to replace old jaw and cone crushers. impeller bars were lasting only 500 hours on average. They needed replacing every six or seven weeks, which added up to a lot of costly downtime. Mike consulted with Pete Huget of ESCO and Chris Giles a purchasing agent in the MBI organization. Pete and Chris suggested that Gresham Sand & Gravel might want to try ESCO impeller bars and take advantage of a national supply agreement between ESCO and KRC. “e 23 employees that work here are dedicated to safely getting the job done, taking pride in our work, and producing a product that the customer can count on being the best quality in the business.” –Mike House, superintendent, Gresham Sand & Gravel “The first time, it took us about six hours to change out the bars in the HSI,” recalled Mike. “Now we’re more experienced at it and it takes us only three hours, sometimes less.” But the non-ESCO “We decided to try ESCO’s chrome white iron impeller bars partly because we’d had such good results with other ESCO products,” Mike noted. The operation uses a variety of ESCO earthmoving products on its pit equipment, including a tough 5 1/2 yard ESCO XDP excavator bucket with Super V® teeth and Kwik-Lok® wear protection on their primary Hitachi ZX800 excavator. “When the ESCO impeller bars were delivered, they were clean, nicely painted, and they fit great,” said Scott Livingston, the crusher foreman. “We were skeptical that the bars would last as long as the ESCO guys predicted—but they did!” “They’re far and away the best ones we’ve ever used,” added Mike House. When the original ESCO set lasted over 200 hours longer than the competition, he put in an order for a second set. The longer-wearing ESCO bars mean the HSI is shut down less often. “We lose money every time we have to rotate or change the bars in the crusher. And fewer changeouts means fewer chances for people to get hurt,” he added. ESCO chrome white iron impeller bars benefit both the safety and profitability of Gresham Sand & Gravel and many other operations that use our crushing and earthmoving products in the Knife River Corporation group of companies. ■ < ESCO’s Pete Huget and Scott Livingston in the field at Gresham Sand & Gravel. 18 THE EDGE DECEMBER 2006 > ESCO impeller bars deliver longlasting performance in horizontal shaft impactors. ESCO Provides the Security of Armor Plate I by John Howard magine a trio of terrorists sneaking through the woods toward a nuclear power plant. Armed with AK-47 assault rifles, they are intent on entering the guarded plant, detonating explosive charges, and sending a plume of radioactive smoke into the nearby city. ESCO Armor Gard protects against high impact projectiles. Suddenly, the bad guys charge across the road toward the main gate, firing their automatic weapons at the guard house. Their bullets — traveling at 2,330 feet per second — ping and spatter against the metal building, but do not penetrate. The guards inside return fire from a narrow slot in the armored building, stopping all three attackers. The terrorist plot against the nuclear plant is thwarted, thanks in part to the bullet-stopping Armor Gard® steel plate used in the construction of the guard booth, which was fabricated by ESCO Phoenix. ESCO Phoenix (formerly Heflin Steel) — specializes in armor grades of steel plate. ESCO Phoenix provides military grade armor to a number of leading producers of defense, ordnance and weapons systems manufacturers. It supplies targets, gun shields, cockpit armor and armor upgrade kits for military vehicles, such as the trucks and Humvees used by the U.S. Armed Forces and civilian contractors in Iraq and Afghanistan. ESCO Phoenix also does custom fabrication for commercial customers. ESCO Armor Gard armor steel plate is used to shield limousines, money hauling vehicles, vaults, safes, and many other security applications. At this moment, ESCO Armor Gard is helping to protect heads of state, government officials, military personnel, nuclear and industrial facilities, and numerous private citizens throughout the world. “2004 was an incredibly busy time for us,” said Gregg Wiggins, ESCO Phoenix’s Armor Products manager. “There was a federal mandate to upgrade security on all the nation’s nuclear power plants at the same time there was a big push to armor vehicles in Iraq.” Since that surge, armor steel orders have settled down to a more manageable level. Armor Steel Repels the Impact of Projectiles Kits supplied by ESCO Phoenix to Simula Government Products, Inc. protect Army personnel against bullets, blast and fragmentation mines. Mil-A-12560 specification armor plate is generally used for combat vehicles. Mil-A-46100 specification is a quenched and tempered high-hardness steel armor plate that is well-suited for light weight armor applications. ESCO Armor Gard has become the industry’s most widely recognized name for commercial applications. Its unique metallurgical characteristics offer outstanding ballistic protection, good weldability, formability and flatness. Ballistic testing is performed on each heat lot, assuring the armor steel’s ability to withstand the impact of high speed projectiles. Bullets traveling at 3,000 feet per second are rendered into harmless metal discs when they impact against ESCO Armor Gard steel plate (see photos above). No question, Armor Gard has saved lives. ■ THE EDGE DECEMBER 2006 19 INTERVIEW Peter Bechen Member of ESCO Board of Directors P eter F. Bechen is president and chief executive officer of Pacific Realty Associates, L.P. (PacTrust). Headquartered in Portland, Oregon, PacTrust is a privately held real estate developer/investor with over 16 million square feet of income-producing properties located predominantly in the Pacific Northwest. The firm is a fully integrated real estate entity with site selection, design, construction, leasing and property management capabilities. Peter was elected to ESCO Corporation’s board of directors in 2000. This interview with EDGE editor John Howard took place at the PacTrust offices in October, 2006. Please tell us a little about your background, Peter. Are you a native Oregonian? Yes, I was born in Klamath Falls, Oregon, in the southern part of the state. But I grew up in northern California, not far from Lake Tahoe. I earned a bachelor’s degree in political science and a master’s degree in business administration, both from Stanford University. I completed my MBA in 1972. Then, did you move to Oregon? Yes, right out of college I took a job in Portland with Bancorp Management Advisors, Inc., advisors to U.S. Bancorp Realty Trust, which was at that time a publicly traded REIT [real estate investment trust]. Did you part ways with U.S. Bancorp? Yes, there were conflicts of interest and other problems in the arrangement with Bancorp. We decided it was best to sever ties in 1979. We became self-administered and retained the name Pacific Realty Trust, or PacTrust. In the early 1980s, as we righted the ship, there was a hostile takeover attempt. We fought it in the courts but finally lost, so we began looking for a ‘white knight’ and found it in the leveraged buyout firm of Kohlberg Kravis Roberts & Company. KKR raises blind leverage buyout funds from institutions and other sources. They bought all PacTrust shares for $38.50 a share and we went private in 1983 and have been private ever since. Today, PacTrust is a limited partnership whose partners are the Washington State Investment Board and the Oregon Public Employees Retirement System. How does being a private real estate investment and development firm differ from being a publicly traded REIT? It is quite different. As the REIT industry has matured, most tend to focus on a particular type of property for investment—commercial, for example. As a private entity we can and do invest and develop a wide range of properties. And we have the luxury of managing the business for long-term gains as opposed to short-term. We’re able to invest in projects that may not make money for several years down the road. What is a REIT? REITs were created by Congress in 1961 to provide smaller investors a means to invest in professionally managed real estate. So long as 90 percent of the net income went to the shareholders, there was no tax at the entity level. The shareholders were income-oriented, looking for dividends. I recall that REITs were very popular with small investors for a while, but they fell out of favor ... Yes, the economy went through a difficult period in the mid1970s. There was an energy crunch and interest rates were very high. Contractors and tenants began defaulting on loans. There were lots of foreclosures and REITs were hardhit. Between 1972 and 1975 our stock dropped from $25 to $4. My boss left and I was promoted to president. It felt like I was made president of a sinking ship [laughs]. But we began working our way out of our problems. 20 THE EDGE DECEMBER 2006 River Lodges in central Oregon is a resort development of PacTrust. What types of real estate does PacTrust invest in? Our portfolio today is about 30 percent retail (see photo on p. 21), 30 percent office/warehouse facilities—what we call ‘flex properties’, and 30 percent industrial. The remaining 10 percent is agricultural, energy and resort properties. For example, we are partners in Sunriver in Central Oregon and the Suncadia resort east of Bellevue in Roslyn, Washington. “ESCO’s management team is high quality and highly intelligent. They run the business the way it should be run.” Has the recent rise in interest rates affected your business? No, it really hasn’t affected high quality properties. It is still a robust market. There is still so much capital trying to find a home in real estate—foreign money, institutions, pension funds—that commercial property investment is at record levels. Oregon is known for strict land use regulations and a “slow growth” attitude. How has that affected your business? We’re primarily a suburban developer. Most of the land we buy is already entitled or zoned for the use we have in mind, so it isn’t a problem. Communities here are required to set growth boundaries and designate land for industrial and commercial development. In the resort business, where we may wish to develop agricultural or undeveloped land, Oregon’s slow growth attitude can and does sometimes stretch out the permitting process. Is it easier to develop properties across the river in Washington State? Yes, it is easier in Vancouver than it is in Portland—especially Multnomah County. Washington and Clackamas Counties [in Oregon] are about on par with Vancouver as far as development red tape goes. Would you please name some PacTrust developments that local ESCO EDGE readers might be familiar with? We developed Oregon Business Park I, II and III and the Tualatin Business Center I and II here along I-5 north of the new Bridgeport Village. We did Orenco Station Town Center and Crossroads at Orenco Station in Hillsboro. We have properties in Clackamas County, along the Banfield Freeway and out near Airport Way—all over town. We have a couple of projects near ESCO: the Guilds Lake and Davis Industrial Parks on Yeon Avenue. Our largest project is in east Vancouver, the Columbia Technology Center. Let’s talk about ESCO. How is it that you were asked to join ESCO’s board of directors? I knew Frank Jungers, a long-time member of ESCO’s board. It was Frank who introduced me to Hank Swigert and Steve Pratt. I was elected to the board in 2000 and I received my five-year pin just last year. PacTrust develops mixed commercial/office/warehouse developments like the Columbia Technology Center in Vancouver (above) as well as recreational properties (facing page). Do you feel that your expertise in real estate development has been helpful to ESCO? I’ve advised them on some matters regarding long-term planning for their corporate headquarters here in Portland and the facility on N.W. Vaughn Street. Someday, ESCO may wish to build a new corporate headquarters building, and when it does so PacTrust might partner with them. Have you enjoyed and benefited from your service on the ESCO board? It is a totally different business than what I’m used to, and it has been very stimulating. I’ve enjoyed learning about Lean and kaizens and other initiatives that ESCO has used with great success . And I really like the people at ESCO and its unique culture. I’ve enjoyed getting to know the Swigert family—Hank, Bob Warren, Peter Adams, Charles Snow. ESCO’s management team is high quality and highly intelligent. They run the business the way it should be run. Tell us about what you like to do when you aren’t running PacTrust. Well, I enjoy golfing and I’ve skied my whole life from a very early age. We have a second home in Central Oregon and we enjoy skiing at Mount Bachelor and elsewhere. My wife, Missy, and I enjoy traveling. And we have a couple of grandkids nearby who keep us entertained. Thank you, Peter, for letting EDGE readers get to know you a little better. And thank you for your valued service on ESCO’s board of directors. ■ THE EDGE DECEMBER 2006 21 QVS and the Big Impact for Customers by Robert C. Kenneth E SCO’s reputation as an innovative manufacturer is largely due to the focus it places on customers’ ever-changing needs. The company’s commitment to Quality, Value and Speed (QVS) is the guiding principal and practice that translates goal into reality. Above: QVS specialists and presenters Victoria Arellano, Elizabeth King, Nancy Brown and Marion Pender guided QVS Summit participants through such tools as Training Within Industry (TWI) and Problem Solving. Below: OC Tanner representatives Fawnell Kirkham, Lori Meritt and Sunday Taylor also participated in the QVS Summit activities. Elizabeth King is ESCO’s director of Organizational Development and one of the company’s resident QVS experts. When it comes to QVS and Lean Manufacturing practices, King says: “We actively engage all of ESCO’s employees — from plant workers to executives — to provide customers with value added solutions.” She adds: “Everything we do is geared toward making sure our customers don’t pay for elements that have no value.” This October, several ESCO employees gathered at the Snowbird Resort near Salt Lake City, Utah, to study and practice several QVS tools — including Problem Solving and Training Within Industry (TWI). Participants hailed from ESCO locations throughout the globe and shared site-specific best practices and special experiences that can be applied to the company’s several product lines and operations. Says King: “One of the most gratifying parts of the QVS journey is that we’re constantly engaged in continuous improvement for our customers — we’re constantly working with one another to find out if there are better ways to do something. This is how we make sure our customers’ needs are always at the forefront of everything we do at ESCO.” ■ Below: The QVS Summit participants were treated to a visit to ESCO’s West Jordan plant — a model of how QVS and Lean Manufacturing practices translate into benefits for the customer. 22 THE EDGE DECEMBER 2006 Process Controls Impact Manufacturing Excellence The starting point for each team is to establish a current state baseline for each key input variable in the process, such as raw material makeup, temperatures and times. This establishes a benchmark and familiarizes team members with data collecting techniques and statistical methods. The teams are also learning that there are two types of variation in every process: measurement variation and process variation. They are learning how measurement consistency is crucial to determine true process variation. In some cases where they find that the existing measurement systems are inadequate, better technology is installed. Once consistent and reliable data is obtained, the teams shift their focus to improving the process using plan-docheck-act (PDCA) methods to achieve less output variation. E by John Howard SCO Turbine Technologies (TT) is engaged in a number of initiatives to reduce scrap, improve manufacturing consistency and enhance customer service. Teams at all five TT locations — Syracuse, Cleveland, Belgium, Slovakia and Mexico — are using proven methodologies to identify root causes, find solutions, and minimize the variations that lead to imperfect castings. One of the initiatives in the business-wide “scrap attack” has been to problem-solve by means of the A3 method. A3 is a technique developed by Toyota whereby identified problems are tackled by the plan-do-check-act (PDCA) approach, and the entire process is recorded on a single A3 size worksheet to keep the task focused and simple. More than 60 A3s have been identified within TT since the initiative was launched early in 2006. In 52 percent of those, the root cause has been pinpointed and remedies enacted. In the remaining 48 percent, progress is still underway to identify the true root causes. The solutions have ranged from mechanical fixes, alloy changes, pattern changes, preheat temperature modifications, setup procedure changes and other modifications. As a result, to date TT’s overall scrap rate has been reduced by over five percent, compared to 2005. One example of a process control success occurred in the slurry system used in making the shell molds for investment castings. At TT plants, wax patterns are repeatedly dipped in a waterbased slurry which dries in thin layers to create molds. Some are dipped by hand; others are dipped robotically. It has long been recognized that the slurry grows thicker with time as its liquid content evaporates. In the past, water was added to the slurry periodically in batches. This resulted in large swings in slurry viscosity, which in turn affected the quality and consistency of the shell molds. To mitigate the viscosity variable, the process improvement team developed a simple drip system that adds water continuously. Careful monitoring and adjusting of the drip system over the course of two months helped the team determine the optimum flow to get the desired, consistent output. Now, visual controls help maintain the right viscosity level. The success of the shell mold process improvement team at TT Syracuse is being shared throughout the organization. Over the course of the coming year, it is anticipated that all 20-plus slurry tanks throughout TT will be fitted with a similar drip system. Teams of ESCO Turbine Technologies employees in its wax, shell and foundry operations are utilizing good measurement techniques and statistical analysis to achieve better control of the manufacturing process. By controlling and minimizing process variables, they are producing castings that more consistently meet customer requirements. ■ Process Controls Lead to Consistency Another initiative is to introduce long-term process control methodology. A central Process Control Team led by Adam Stitzel is guiding 15 on-site Process Improvement Teams in the wax, shell, and foundry departments in each Turbine Technologies plant. The objective of each team is to monitor key processes in their area, reduce variation of these processes, and sustain the gains through visual controls. Process improvement team members include, from left,23 THE EDGE DECEMBER 2006 Glaister Welsh, Mike Roach, Antonio Cook and Neil DelCorso. New Machining Technology at IM Impacts Customer Service E by John Howard SCO Integrated Manufacturing’s Tempe, Arizona plant this year added two sophisticated high speed horizontal machining centers in order to cut turnaround time on machined parts by over half! The two new CNC machining centers are a Toyoda FA1050 and an OKK HM1000S. The Toyoda, installed in March, features a 120-tool changer; 14,000 RPM spindle; 4th axis capability with .001° resolution; and 6,600 pound pallet load capacity. The slightly smaller OKK machining center, added in September, has a 116-tool changer; 12,000 RPM spindle; 4th axis acapability with .001° resolution; and 5,500 pound pallet load capacity. “The new equipment increases our available capacity for large format machining,” noted John Russell, sales manager. “Our customers have been requesting twoweek turnaround on machined parts as opposed to the traditional four to six weeks. The new equipment uses high-speed spindles which reduce cycle times—and allow ESCO to be more efficient and cost competitive. Both machines have dual-pallet setup, which allows one part to be loaded while another is being machined, which also reduces total cycle time for machining.” John praised the work of Greg Stein, Stuart Kadel, Isaac Botiller and Andy Porter who operate the Toyoda FA1050 milling center, and Phil Bennett, Ira Lewis, and Chris Bridgeman who operate the OKK HM1000S. ■ 24 THE EDGE DECEMBER 2006 Huge Coordinate Measuring Machine by John Howard E SCO Integrated Manufacturing’s Fremont, California facility uses a coordinate measuring machine (CMM) large enough to park a car under! The sophisticated technology allows ESCO IM to precisely check the dimensions of the very large and complex pieces it machines for a list of high-tech customers. First installed in September 2004, the CMM is a DEA model Delta HA 305120 CR gantry-type device that straddles the work surface. Coupled with PC-DMIS software, the Italianmade DEA CMM can measure parts as large as 200 x 118 x 78 inches—an envelope that could accommodate a Toyota Camry. Rather than measure sedans, however, ESCO uses the impressive CMM to verify the dimensions of large parts it makes for Applied Materials, AKT, Lam Research, Intervac, Vortec, Lawrence Livermore Lab and other customers. capital equipment. ESCO machines and drills large aluminum diffusers and susceptors that AKT uses in CVD process equipment used to manufacture flat panel glass for television and computer monitors and the screens used on cell phones and PDA devices. The first generation diffusers had about 12,000 tiny holes. The current generation measures approximately 7 x 8 feet and has over 74,000 holes. ESCO uses the DEA Delta CMM technology to verify the precise location, size and shape of every one of those holes—a big task for a big machine. The CMM verifies a long list of geometric criteria, including position, straightness, flatness, roundness, cylindricity, profile, angularity, perpendicularity, parallelism, concentricity, and runout. Operation of the big CMM at ESCO IM Fremont is supervised by Chip Tran. The programmer / operator is Christian Mendoza and the operators are John Cunnigham and Richard Villareal. ■ One example is the work that ESCO IM does under contract for AKT, the leading U.S. manufacturer of flat panel display (LCD) THE EDGE DECEMBER 2006 25 Joseph Clark, Jr. EP Portland 40 Joe was born in Arkansas and graduated from McCroy High School. He joined ESCO in 1966 as a pourer. He currently works as a machine operator in the mold and core department. Before coming to ESCO, Joe worked as an automotive mechanic. What he likes most about working for the company is “the steady work.” Joe has two children – Paul and Amanda – and he lives in N.E. Portland. In his free time, he enjoys gardening and chopping wood. Dee Dee Weber EP Portland Ed Sillman EP Portland Ed was born near Sabetha, Kansas, and graduated from Hillsboro High School. Before joining ESCO, he worked at Tektronix, which primarily manufactured Oscilloscopes at the time. Ed started at ESCO’s Plant 3 in 1966 on the pouring crew and today is a continuous improvement technician. What Ed likes most about working at ESCO are the people and steady work. He has two adopted grandchildren, Tianna and Noah, and he lives in Aloha. In his free time, Ed enjoys golfing, hunting and fishing. 30 DeeDee is a Portland native and graduate of St. Mary’s Academy. DeeDee’s first job in 1976 was as an order entry clerk at ESCO. She’s also been a production control scheduler, expediter and team leader in paint and packaging. DeeDee has also worked in human resources. She currently serves as a construction and OEM group team leader in inside sales. She says: “I have really grown up here. The people are my extended family.” She is a third generation ESCO employee. Her grandfather worked here 45 years, and her father worked here 42 years. Many more of DeeDee’s relatives have also worked at ESCO, including her daughter Heather. 26 26 THE THEEDGE EDGEDECEMBER DECEMBER 2006 2006 40 William Smith EP Bucyrus 40 William is a native of Columbus, OH. He graduated from Bucyrus High School and was in the Navy for four years. William joined EP Bucyrus in 1966 as a drill press operator, worked in small and large construction, and was a supervisor for 12 years. He is currently an inspector in Paint Pack & Shipping. William’s father and son have both worked at EP Bucyrus. He lives in Bucyrus, OH and has two sons, Bill and Dan, as well as two granddaughters. Outside of work, William enjoys fishing. L.T. Windham EP Newton 30 L.T. was born in Jasper County, MS, and worked in construction before joining ESCO in 1976 as a flogger. He is currently a 3rd shift core isocure operator, and his cousin, Virginia Sanders, also works in the core room. L.T. and his wife, Georgia, live in Rose Hill and have two children, Jearline and Ciara. What L.T. likes most about working at ESCO is the pay, and he spends much of his free time helping out in his community. Lyle Sumner, Jr. EP Portland 40 Lyle was born in Petaluma, CA, graduated from Portland’s Madison High School, and attended Portland Community College (Cascade Campus). He joined ESCO in 1966 and worked as a burner and then as a leadman (LFA). He currently works as a machinist/welder. Lyle’s family member Bill C. Rogers works in production control. Lyle and his wife, Peggy, live in S.E. Portland. They have two children – Michael and Darrell – and four grandchildren. In his free time, Lyle enjoys ham radio, hunting and working on computers. Dean Wittwer TT Syracuse 30 Dean was born in Syracuse, NY and worked at K-Mart before joining ESCO in 1976. His first ESCO job was a shell puller/caster, and he currently works in maintenance. Dean’s favorite thing about working at ESCO is the people. He and his wife, Franny, live in Canastota and have four children – Dean II, Jeremie, Corey and Amy. In his free time Dean enjoys his many grandchildren, woodworking and fishing. Dean also volunteers time at his church. Ann Britton EP Portland Ann was born in Portland, OR, and graduated from Madison High School. Before ESCO, Ann worked for Jantzen, Inc. as a transportation analyst. She joined ESCO in 1976 as a clerk in production control. She also worked in manufacturing planning. Ann currently works as an MRP/DRP master scheduler (main plant). What she likes best about working for the company is “the quality and the friendliness of the people.” Her sister Betty Abel is also a well-known ESCO employee. In her free time, Ann enjoys camping, reading and gardening. She has two children and seven grandchildren. Derek Bernard EP Port Hope 25 Derek was born in Sydney, on Cape Breton Island, Nova Scotia, and he graduated in Metallurgical Engineering from Ryerson Polytechnic, Toronto. Before coming to ESCO, Derek worked 13 years as a laboratory supervisor for Anaconda Brass in New Toronto. He joined ESCO in 1981 as a plant metallurgist, and today Derek works as a metallurgist, quality representative and plant spectroscopist. What he likes best about working at ESCO is the “tremendous interdepartmental cooperation and ‘can-do’ attitude.” Derek and his wife, Susan, live at Pebble Beach in Cobourg and have two daughters. In his free time Derek enjoys sailing, electronics and is also a sailing instructor. ESCO SERVICE ANNIVERSARIES 30 Keith Ford EP Newton 30 Keith was born in Newton County, MS and graduated from the Hickory High School. He joined ESCO in 1976 as a stand grinder and has held positions as a machine operator and a no bake molder. Keith is currently a no bake molder. Keith lives in Newton and has five children, Mikki, Anthony, Stephanie, Santrez and LaKeisha. Percy Pearson EP Newton 25 Percy was born in Jacksonville, MS. He graduated from the Louisville High School and attended East Central Community College & Mississippi State University. Percy joined ESCO in 1981 in Purchasing/Warehouse/ Receiving and currently works in Purchasing. Throughout the years, he has held positions as a painter and hoe bucket planner. Percy and his wife, Joyce live in Decatur, MS. They have three children, P.J., Steve & Will. Percy enjoys golf, hiking and fishing. Fritz Goeth EP Portland 30 Fritz was born at Fort Bragg, NC and served in the US Army. He joined ESCO in 1976, and his first jobs included engineering draftsman, manufacturing supervisor, project engineer, and engineering manager. He currently serves as an engineering process leader. Fritz’ favorite thing about working at ESCO is “the variety of work, the quality of the people and the quality of the company.” Fritz and his wife, Maureen, live in West Linn, and he enjoys golfing, reading, and exercising in his free time. Fritz also volunteers for West Point Admissions. John Hemmingsen EP Portland 30 John was born in Victoria, BC, and graduated from Alberni District High School and the University of British Columbia, Applied Science in Metallurgical Engineering. He joined ESCO in 1976 as plant manager for Port Coquitlam. John became Portland foundry operations manager in 1989 and later vice president, manufacturing services. He continues as an ESCO consultant in China. John and his wife Cherie have two children and five grandchildren, and John enjoys ocean fishing and terraforming in his free time. Mark Kaiser EP Bucyrus 30 Mark was born in Upper Sandusky, OH, graduated from Wynford High School and attended Tiffin University. He joined EP Bucyrus in 1976 on the second shift and today is a mill operator. Mark and his wife, Tammy, live in Nevada, OH, have two children (Leslie and Benjamin), three grandchildren and one more one the way. In his free time, mark likes watching high school sports, and he is very active in the Grand Praire Baptist Church. Doug MacGowan EP Portland 30 Doug was born in Seattle, graduated from Chief Sealth High School, received his BSME from the University of Washington and his MS from Portland State University. He joined ESCO in 1976 as a UW senior year scholar. His first jobs included project engineer, plant engineer, superintendent plant engineering and maintenance and manufacturing engineering manager. Doug is currently director of manufacturing support, and he especially appreciates the friendships he’s made along the way. He and his wife, Midge, live in Lake Oswego, have three children and five grandchildren. In his free time, Doug enjoys the outdoors and fixing up his beach house. Rick Miner EP Portland 30 Rick was born in Santa Barbara, CA, graduated from San Marcos High School and graduated from Oregon State University. Prior to joining ESCO, Rick worked as a research engineer for Chevron Research in Richmond, CA. He started at ESCO in 1976, and his first positions included various jobs in engineering, manufacturing and IT. Rick is currently an IT business analyst. What he likes most about his work is “the changing tasks, new challenges and helping coworkers.” Rick and his wife, Sue, live in Garden Home. In his free time, Rick enjoys home improvement projects, BBQ cooking, traveling and fishing. Clint Rhea EP West Jordan 30 Clint is a Salt Lake City native and has an Associate of Applied Sciences degree from Salt Lake Community College. He also has APICS – CPIM certification from the Association for Operations Management. Clint joined EP West Jordan in 1976 and serves as plant manager. He appreciates the company’s values and business strategies, “as well as the people I work with.” His brother-in-law Doug Smith also works at EP West Jordan. Clint and his wife, Penny, live in South Jordan, have three children and a grandchild on the way. In his spare time, Clint enjoys football and tinkering with his Harley. In the next issue of the EDGE, we will feature the Grand Opening of the new ESCO Engineered Products plant in Xuzhou, China. The first heat was poured in December 2006 and an official opening ceremony was held on December 1st. The plant has begun manufacturing ESCO® products for export and the booming Chinese domestic market. THE THE EDGE EDGE DECEMBER DECEMBER2006 2006 27 27 In contrast to the examples of big impact technology cited in this issue, there is also the impact of natural beauty. This image of a lace leaf maple tree in fall color was photographed in late October in the Japanese Garden in Portland, Oregon. The 5.5 acre garden, maintained by the non-profit Japanese Garden Society, was opened in 1967 to foster cultural understanding and celebrate the sister city relationship between Portland and Sapporo, Japan. Photo by John R. Howard. ESCO CORPORATION 2141 NW 25th Avenue Portland, Oregon 97210-2578 United States of America PRESORTED STANDARD US POSTAGE PAID Portland, Oregon Permit No. 382 THE EDGE DECEMBER 2006 28