SUMMER 2011 TECHNOLOGY AND

TRAINING………….....2

WORLD ECONOMY

AND STEEL ………….3

BIRTHDAYS…………..4

SAFETY TIPS………..5

BUSINESS UPDATE–

BC LOCATION……….6

EMPLOYEE RECOG-NITION & NEW HIRES

………………………….7

WAYS TO BE GREEN & TEAM DYNAMICS

………………………….8 Company Newsletter PROVIDING OUR CUSTOM ERS WITH CONSISTENTLY HIGH

QUALITY FABRICATED METAL PARTS WHILE M EETING OR

EXCEEDING THEIR EXPECTATIONS.

What is a Kaizen Event? Kaizen, Japanese for "improvement" or "change for the better", refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to eliminate waste Source: http://en.wikipedia.org/wiki/Kaizen

There have been several exciting

projects occurring at the Sumter

plant over the last couple of

months; and the Sumter team

would like to share some

information on what is happening

in our business.

As you may know, Porters-Sumter won the business for ATM safes to be supplied to a new NCR ATM

assembly plant in Columbus, GA. Sumter started serial production of

this concrete filled safe late in 2010, with one model. We quickly

were asked by NCR to introduce more models into the schedule; and

we are currently producing 5

different ATM safes for NCR. As

our volumes continued to increase, we discovered that the best way to

meet our customers requirements

was to make our NCR line the most

efficient possible, by introducing

lean manufacturing and 5S

principles. With the assistance of

the NCR Continuous Improvement

team, the Sumter team and Guy Roberts (COO) embarked on a

concentrated program to improve our process and move to a one piece flow process. We recently

completed the first Kaizen event and have seen immediate and

significant improvements.

Challenges

Work flow was based on

moving large batches of safes

through the process

Work content was not balanced

at the various work stations; thus

Business Update Sumter, SC ~ A note from Dennis Fraley, Plant Manager

creating a lot of wasted time (production would stop and start, stop and start)

Poor quality impacted our first pass

yield, thus decreasing our daily ship rate

Associates were working very hard but

not meeting the goal; due to many system inefficiencies and shortages

Work place layout, material storage,

presentation and organization was not good

Accomplishments

Introduced new door welding fixtures

and process, based on a one piece flow;

which almost doubled door production with same work force

8

All teams need people who consolidate team identity and trust through accepting, appreciating, and validating others and

their ideas. Teams also need people who explore issues and possibilities through encouraging , elaborating, expanding,

clarifying and summarizing the ideas of others. Teams need people who plan and organize tasks by integrating, activating,

initiating and mediating the ideas of others. And, to ensure excellent, timely work output, teams need people who

empower, persuade and delegate within the team environment and who can also effectively sell ideas to key opinion leaders

and decision-makers outside the team. These various team

functions can be crystallized into four roles: harmonizing, exploring, regulating, and promoting.

Source: “Team Dynamics in Today’s Workplace” by Dr. Stephen C. Schoonover

CHECK OUT OUR NEW LOGO!

Porter’s just got a new look!

Also, coming soon Porter’s

will also have a new website!

Suggestions? Please email

asaleh@portersfab.com or call

704-874-3141 for suggestions,

comments, events, or topics you

would like us to include. You may

also use the suggestion boxes.

NEW

!NEW

!

Team Dynamics in the WorkplaceWhat are the keys to successful Teamwork?

One of our new goals at Porter’s will be increasing our

awareness about the environment and increasing

recycling. We will be working on achieving this in the

coming few months, and would like to become a waste

free facility in the future. Here are a few tips on how

you can help make a difference.

GreenPrint (www.printgreener.com) helps reduce

printing of extraneous pages. (You know those last

pages that you really don’t need?) Reduce ink use

and paper use. Free for homeowner!

Consider packing your lunch using Laptop Lunches

which is made out of nontoxic materials and comes

with utensils. No need to throw away plastic bags, or

Ways to be Green

tin foil since they have nice little containers to

reuse. Throwing out or using plastic utensils will be a

thing of the past. They make a lunch box as well as

the Lunch Date which is for heartier eaters.

(www.laptoplunches.com)

According to the Department of Energy, office

equipment accounts for 16 percent of an office’s

energy use. The use of computers, printers, copiers

and fax machines adds up, but simply turning your

computer’s sleep mode on when you’re not using it

can save energy (screen savers are energy wasters,

not savers). In addition to putting your computer to

sleep when you are away:

Turn the machine off when you leave the office

for the night

Activate sleep mode for printers, copiers and fax

machines so they’ll sense inactive periods

Continued...

Through time study, analysis, work place organization

and leveling of work content; balanced takt time (process

time per station) to 15 minutes through 7 work stations

Reduced required manning in studied area by 2

associates, who were then reassigned to “up-stream”

operations in the NCR line; thus enabling better one piece flow and improved quality in the welding/concrete areas

By establishing a process which maintained safes at each

work station (the line stays “wet”); we were able to eliminate

early morning start times and a significant amount of overtime

Daily production rates have steadily increased; and we are

meeting our daily production commitments.

Sumter is continuing the kaizen process in the NCR area; with the next event scheduled in July. We are definitely

seeing the improvements that Lean Manufacturing can bring

and will implement these concepts throughout the plant in the months ahead.

Sumter continues to see new product introductions with our

core customers; to include:

We are developing a new family of racks for Flextronics

(data mining server racks) which will include molded plastic

components and exciting new color schemes

We are working with

D i e b o ld Hu n g a r y i n

providing a larger variety of UL rated ATM safes for their

Budapest operation

NCR-Columbus is now providing many ATM’s to the

South American market, and we are supplying the safes for

this business. These safes are a higher security safe

NCR-Brazil is seeing exciting growth and we are

participating by supplying cut steel plate for their safe

production facility located in Manaus (a large city located in

the middle of the Amazon jungle, right on the Amazon river)

Arca, a provider of cash recycling units and technology;

is working with major casinos around the US to supply cash

recycling units for casinos. These machines will allow the

casinos to accept cash, deposit the funds into the appropriate accounts; and dispense this same cash back to the consumer.

Sumter is building a variety of safes for this application.

We are experiencing significant growth in our business and

our work force; with 2nd and 3rd shift operations now seen

throughout the plant. The Sumter team is excited about the challenges and opportunities ahead; and are working hard to

move our business to the next higher level of achievement.

TECHNOLOGY & TRAINING Over the past 4 months there have been multiple internal training sessions at Porter’s Fabrications Bessemer City, NC location with

production software vendor, MIE Solutions. The goal of the training

sessions was to properly prepare for implementation of a better

inventory control system for finished goods, purchased items, and raw material. So far, implementation of the new system is at 50%. With continued training sessions and hard work from

Porter’s Fabrications employees, Porter’s hopes to reach 100% implementation by the end of the year. Some of the fruits of the training sessions and new inventory control procedures from the Bessemer City location have made their way to the

Porter’s Fabrications Sumter, SC location. New inventory control procedures have been applied and are in use for managing inventory for some of the Sumter, SC’s locations biggest customers.

Porter’s Fabrications Engineering Department is adding a new 3D modeling package to its software arsenal. In addition to ProEngineer (Creo) and Solidworks 3D modeling software packages, Porter’s Fabrications will now also be an AutoDesk

Inventor shop as well. This adds an additional layer of flexibility for Porter’s Fabrications and Porter’s Fabrications customers. The addition of AutoDesk Inventor makes Porter’s Fabrications workable file type options virtually

limitless. Data exchange between Porter’s Fabrications and its customers will be greatly improved.

Porter’s Fabrications IT Department is in the process of upgrading / updating PC workstation software. The department is

also in the process of phasing out and repurposing some of the old IT equipment and migrating services to newer

equipment. These changes are being made to make network services more reliable and efficient. The transition process is being carried out with as little interference to shop production as possible.

2 7

Porter’s at

B e s s e m e r

City, would l i k e t o r e c o g n i z e

D o n o v a n

Weathers as

our new maintenance

m a n .

D o n o v a n

comes to Porter’s from Kansas City, KS where

he has been working for 18 years in the maintenance field. He has recently

relocated to the Charlotte area so that he can be with his family and new

grandchild. Donovan says he is looking

forward to making new friends and making Charlotte his new home. While

only being on the job for 2 months, he has made an exceptional contribution

by keeping our equipment running with

minimal downtime. Porter’s welcomes

Donovan to our team and thanks him

for all his

efforts.

Sumter, SC

A s t h e

P o r t e r s -Sumter team

was considering the fiscal year-end on

June 30, we were happy that our

business had continued to grow and our customer volumes increase. However, we also understood that the month of

June would be one of the most

demanding periods the plant had faced

in a very long time. While Sumter does not produce as many piece parts as

Bessemer City, we do produce a variety

of large complicated assemblies. All of

our major customers were seeing large increases in their business, which

translated into large volume increases for Sumter. We had increased demand

of 40% from Diebold, NCR delivered volume was over 55 safes per day,

Flextronics was seeing for the first time

order fill that match close to 100% of their forecast (historically it has always

been around 70%), Arcatech (another financial customer) was entering a

brand new market and we had to

develop, produce and deliver several

new safe models to critical casino

openings in Las Vegas. Caterpillar's

forest products group volume was also

strong, driven by their expanding export business.

As in North Carolina, June turned out to be one of the hottest months on record;

with more than 30 days of temperatures

well above 90 degrees; thus making for

challenging work conditions. The Sumter team really pulled together, worked every weekend and was

successful in meeting every customer

requirement. All of our customers met

their monthly sales goals; and the Sumter sales volume was double our

forecasted amount; at over $4 million.

And, just for good measure; we decided

that we would conduct the year (outside audited) physical inventory at the end

of the month. I would like to recognize the entire

Sumter team for their hard work and dedication during a very demanding 4th

quarter. Because of everyone’s efforts

and willingness to go above and beyond, we achieved the highest sales

volume in our history as a part of Porters Fabrication.

CONGRATULATIONS TO ALL AND

A HEARTFELT THANK YOU!

C ongratulations on Excellent Service!

Randy King– Welder

Michael McCullough– QC

Stephen Okruhlica– Welder

Jose A. Hernandez– Punch Operator

Ronnie King– Forklift Driver

William Haller– Welder Shelley Presnell– Administrative Assistant

Derek Fricke– Engineering Intern

Welcome to Porter’s Fabrications! Porter’s has hired several new people in the month of June 2011 ranging from Welders to Fork Lift Drivers to Quality Control Personnel (QC). Please welcome the following new employees:

Bessemer City, NC

James Bacote– Welder

Jeremy Baggett– Punch Operator

Amos Benjamin– Leveller Operator

Herbert China– NCR

Antelnello Hodge– Material Handler

Ivan Holloman– NCR Durell James– Welder

James McCauley– Press Brake Operator

Kyle Mount– Welder

Dallas Pack– Punch Operator

Corey Saab– NCR

Frederick Sumpter– NCR

Sumter, SC

Bessemer City, NC

6 3

World Economy Steel &

Japan’s Recession and Implications for US

For the first time in many years, there has been a big difference in opinion between OPEC and the International Energy Agency (IEA). OPEC believes that there is an abundance of supply of

oil in the future. However, the IEA believes we need to increase oil production to avoid a shortage of supply which will cause and increase the cost per barrel. The IEA believes that if we

do not meet the predicted demand, the global economy will plunge back into a severe recession (Kuehl 3). There have been recent forecasts that commodity prices overall will increase. If this

assessment is true, there will not only be an increase in the price of oil but in metal commodities too (Kuehl 4).

Oil Production

The reality that Japan has lost a lot of economic power doesn’t surprise anyone given the impact of the tsunami/earthquake;

however the severity of the decline was not anticipated. Japan has seen losses way beyond the decline that would have been

estimated from the catastrophe alone. Amazingly, Japan still is the third largest economy in the world, and only recently lost its second place position to China. In a way, its economy is more significant than China because of the “sophistication” of its

manufacturing community and the global relationships it has with the financial community (Kuehl 1-2).

There are two main reasons for the decline. First, Japan is still extremely susceptible to the high cost of commodities. All the commodities have been imported at their high cost for Japans industrial sector. The second reason is that Japans industry is

targeted towards the developed world. Due to the slow recovery of our own economy as well as Europe, this has in turn lead to the decline of Japan’s economy. The fear is that Japan may not have what it takes to recover , which in turn also means a “reduction of power of one of the key allies the U.S. has in the region-militarily, politically, and economically” (Kuehl 3).

So what does this mean for manufacturing? American manufacturers have close relationships with Japan for various reasons.

The Japanese have been major suppliers of equipment and machine tools. Furthermore, Japan has been a considerable market

for the U.S. as well. Following many years of competition, we are to some extent unified in our battle against rivals such as

India, Korea, and China. Japans recession will impact the U.S. manufacturing in three major areas: import, export, and

competition (Kuehl 3).

Productivity Although many believe that the U.S. is no longer a major manufacturing state, the truth is

that the U.S. has never stopped being a manufacturing country. A new study done by the

Boston Consulting Group, affirmed that the U.S. will have recovered its competitive lead

over the Chinese by 2015. The actuality is that manufacturing in the U.S. is way more

productive than the past decades, and maintains a tenfold advantage over the Chinese. The

only competitor that the U.S. has in terms of productivity is Germany. The world of

manufacturing has completely changed in comparison to productivity ten years ago. We

have now shifted to a completely technological approach. Numerous jobs were swapped by

machines; however, now that this change is almost complete the manufacturers have begun hiring again. In April, there was

an increase of 25,000 jobs, and estimates are that there will be a total gain of 500,000 manufacturing jobs this year after a gain

of 350,000 this past year. These are the first two years in more than twenty years where more jobs were added than lost in

manufacturing. The sector is on the rise and needs assistance (Kuehl 7). As the manufacturing community continues to grow

and the U.S. reclaims its position over China, the strength of this recovery will be based on the skill of the workforce (Kuehl

8). Source: Kuehl, Chris. "Industry Economic Update & Analysis." Fabrinomics 5.10 (2011): 1-9. Web. 6 Jun 2011

S uccess Story Envision & Flextronics

Business Update Bessemer City, NC ~ A note from Jim Shunkwiler, Plant Manager

One of our customer, Flextronics (who we produce Data

Storage Racks for) has been contracted by Envision

Company to receive chassis', motors, batteries etc.

Flextronics assembles these items and integrates the

electronics and electro-mechanical components to

produce a fully electric vehicle- they will offer both cars

and trucks. These vehicles will be battery powered and

charged using a 240 volt outlet.

Flextronics came to Porter's to produce proto-type

aluminum enclosures for the electronics and battery

boxes in these vehicles. Our team did an outstanding job

and produced "quality" parts ahead of schedule and put

Flextronics in a strong position to complete their

integration process "on time" for Envision.

Great job Porter’s Team!

A note from Ross Dowswell– Engineer

The Bessemer City Porter’s team has been busy over the

past several months. In the midst of fabricating parts

near record volumes, we’ve launched several

continuous improvement projects. The team recognized

the opportunities to improve in three main areas:

material presentation, inventory control, and the press

department.

We discovered excessive time was spent storing sub-

component parts, locating parts for secondary

operations and finding completed parts to ship to our

customers. We focused on the 5S principles (sort,

straighten, shine, standardize and sustain). Warehouse

areas were removed of obsolete items, racks were

reconfigured, storage locations standardized and

material clearly identified.

A separate work stream

was launched to improve the accuracy of our inventory

control system; focusing on system enhancements and

user trainer. To eliminate the bottleneck in the press

department we purchased an additional brake press.

The press will be operational by middle of July.

On June 29th, Bessemer City plant had an external ISO

surveillance audit. Management review, welding, paint,

and purchasing areas were audited. No major non-

conformances were found, however, three minor non-

conformances were identified. Several very positive

comments were made by the auditor.

Great job team!

Safety Matters at Porters!

How to Avoid Heat Stress and Illness

HEAT STROKE Heat stroke is a medical emergency. It occurs when the body's internal mechanism fails to regulate the core temperature. Sweating stops. The body can no longer rid itself of excess heat. Signs include: a distinct absence of sweating (usually); hot red or flushed dry

skin; rapid pulse; difficulty breathing; constricted pupils; severe dizziness, headache, nausea, vomiting, or confusion; bizarre behavior; and high blood pressure. Advance symptoms may be seizure or convulsions, collapse, loss of consciousness, and a core temperature of 106oF or higher. If not treated promptly, victims of heat stroke can die or have permanent damage to the vital organs. If a victim appears to suffer from heat stroke, call 9-1-1 immediately. Move the victim to a cool, shaded area; soak the victim’s clothing with cool water; apply cold packs; and fan vigorously to increase cooling. HEAT SYNCOPE (FAINTI NG) Fainting can result when the brain does not receive enough oxygen due to blood pooling in the extremities. This reaction does not affect the body's heat balance. Acclimatizing and avoiding standing motionless for long periods can reduce the likelihood of fainting. HEAT EXHAUSTION Heat exhaustion results when fluid or salt is lost through sweating without being replaced. A person with heat exhaustion may experience a headache, heavy sweating, intense thirst, dizziness, fatigue, loss of coordination, nausea, impaired judgment, loss of appetite, hyperventilation, tingling in hands or feet, anxiety, cool moist skin, or a weak, rapid pulse. The body still produces sweat and the body temperature is normal or slightly higher than normal. The victim should rest in a cool place and drink water or other cool liquids. Severe cases involving victims who vomit or lose consciousness may require longer treatment under medical supervision. HEAT CRAMPS Heat cramps are painful muscle spasms, usually affecting the arms, legs, or stomach. Heavy sweating can cause heat cramps, especially when drinking water to replace fluids. Remember to avoid liquids that contain salt or potassium. Cramps can occur during work, but they typically take place after the work shift has ended. Eating bananas and taking sufficient salt – without overdoing it – can help prevent heat cramps. HEAT RASH (PRICKLY HEAT) A heat rash can break out where sweat is not effectively removed from the skin through evaporation. A heat rash that is extensive or complicated by an infection can inhibit sleep, impede performance, or even result in temporary total disability. Heat rashes can usually be prevented by making sure the skin is allowed to dry during rest breaks. Source: http://www.compliance.gov/wp-content/uploads/2010/03/fastfacts_heatstress.pdf

Tips To beat The Heat

4 5

S ummer Birthday’s!

SumterSumter Bessemer CityBessemer City

Drinking water frequently and moderately (about a glassful every 15-30 minutes)

Salt retains water, but due to the fact that most of us already consume excess salt in our diets, salt tablets are not recommended for general use

Resting Frequently

Eating Lightly

Utilizing ventilation or fans in enclosed areas

Avoiding alcohol consumption. Many cases have occurred the day after a “night on the town”

Wearing light-colored, cotton clothes and keeping your shirt on– desert nomads don’t wear all those clothes for nothing

Source: CNA Risk Prevention Bulletin

Did you know?

You can lose as much

as two liters of fluid on

a very warm day!

July 3 Inkpen, Gail

July 4 Fernandez, Sergio V

July 5 Lozano, Martin A

July 5 Morton, Shawn Aaron

July 6 Thompson, Curtis

July 10 Cortes, Felix

July 11 Reyes-Vidal, Sergio

July 12 Fralick, Billy

July 12 Sherer, Jeremy J

July 12 Spencer, Arthur

July 16 Sherer, Mark A

July 17 Arrieta, David V

July 17 Pate, Steve

July 18 Killman, Marlon S

July 18 Mercer, Scott

July 21 Patrick Jr, Roger L

July 22 Alfonso, Leonardo

July 27 Ialuna, Jennifer

July 28 Weathers, Donovan S

July 29 Barker, Timothy

July 29 Perez, Jose

July 31 Padilla, Ignacio

August 1 Barnhardt, Zack

August 1 Saleh, Charles

August 6 Moore, Gail

August 13 Howell, Michael A.

August 15 Blas, Ricardo

August 20 Torres-Nino, Bernardo

August 23 Cruz, Timoteo

August 26 Hannah, John F

August 28 Olvera, Daniel

August 30 Dowswell, Stephen G

August 30 Mejia, Ismael

September 5 Delgado, Pedro C

September 6 Trejo, Francisco

September 6 Umana-Slak, Hugo

September 10 Phillips, Donny Lamar

September 10 Taylor, Jonathan M

September 24 Perez, Michael G

September 27 Villa, Hector

September 30 Moquete, Willy

July 1 Rios, Geber

July 3 Kirby, Daniel

July 4 Simmons, Cassandra

July 5 Peoples, Marcus

July 7 Myers, Rebecca

July 8 Fraley, Dennis

July 19 Waninger, George Frank

July 22 Williams, Bradford M

July 26 Washington, Charles A

July 28 Blanding, Rhonda M.

July 28 Briggs, Philip A.

July 30 Alston, Eugene

August 4 Frierson, Michael

August 5 Holliday, Kevin J.

August 10 Yates, Michael P

August 12 Yates, Bracey P

August 14 Davis, John D

August 14 Hudson, Franklin C

August 16 Taylor, Michael

August 17 Clark, Terry

August 19 Truett, Brian E

August 22 Reardon, Alga L

August 23 Baker, Jeremy

August 23 McKnight, Lawrence

August 25 Moore, Joyce E

August 25 Prioleau, Rickey

August 25 Thomson, James

August 31 Pace, Phillip

September 3 Harrington, John E

September 7 Bird, Gary A

September 7 Rogers, Robert

September 8 Smith, Charles M

September 9 Flood, Zachary B.

September 12 Miller, Kurtis Rodney

September 13 Webster, Ricardo

September 19 Jackson, Carl E.

September 21 Sumpter, Termaine A

September 23 China, Jason L.

September 26 Wilder, Floyd

September 28 Robinson, Karalene

September 29 Campbell, Julius L

HAPPY BIRTHDAY TO ALL FROM

PORTERS!