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Senate stymies Stickler MSHA nomination

For a second time in a span of two months, the Senate rejected the nomination of Richard Stickler to head MSHA and has asked the White House to nominate someone who is better suited for the job. 

Sen. Robert Byrd, D-W.Va., criticized the Bush administration for selecting a candidate with a “weak safety record” and claimed that the White House was “playing political games with mine safety.”

“Last month, the Senate took a stand for mine safety by sending back to the White House an unacceptable nomination to lead MSHA, and we are as resolute in our stand today,” Byrd said. “We’re again sending a message to the administration that America’s miners deserve better, and we hope that this time it will listen.”

Byrd and Sen. Edward Kennedy, D-Mass., the leading Democratic member of the Senate mine safety oversight committee, have led the efforts to reject the Stickler nomination.

“We are in the midst of a mine safety crisis 58 miners have already died this year, more than any year since 2002,” Kennedy said. “At this critical time, miners and their families need a strong leader at MSHA. Stickler does not have the record or the vision to meet this challenge.

“The president should send the Senate a new nominee who will fulfill the promise of our safety laws.”

Byrd: Stickler placed production above safety

Byrd noted that while Congress has created new mine safety laws aimed to protect miners most notably the MINER Act, passed earlier this year by wide margins in the House and Senate   the new safety measures could mean little if the agency responsible for implementing them places increased production above better safety protections.

Byrd has assailed Stickler   a former coal executive and the former director of Pennsylvania’s Bureau of Deep Mine Safety   for having a track record that emphasizes a commitment to production and profits ahead of safety.

Byrd originally placed a legislative hold on Stickler’s nomination in March, relying on Senate Rule 31, which states that whenever the Senate adjourns for more than 30 days, all pending nominations pending are rejected and returned to the president. (See “West Virginia Senator not sold on Stickler.”) 

In early September, President George W. Bush renominated Stickler, but since the nomination has been turned back to him, Bush will have to either renominate Stickler yet again or nominate a different individual. 

The Bush Administration also can use its constitutional authority to appoint either Sticker or anyone else to the post while the Senate is in recess during October and early November. 

Cecil Roberts, president of the United Mine Workers of America, said it would be “irresponsible and insulting” for the Bush Administration to give Stickler a recess appointment. 

“President Bush has an opportunity now to send a bold message to coal miners throughout America that he truly does care about them and their safety by appointing someone with a strong background and a demonstrable record of working to improve mine safety and health,” Roberts said. “Now is not the time for yet another industry hack to be in charge at MSHA.” 

(Source: OccupationalHazards.com via Aggregate Research Industries. Story by Katherine Torres)

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APAC fined $2.25 million for false asphalt testing

On Oct. 3, APAC Atlantic, Inc. (APAC), Greensboro, N.C., agreed to pay $2.25 million settling a civil action in the Middle District of North Carolina for false asphalt testing. Our investigation revealed that six asphalt plant technicians employed by APAC had falsified tests on several federally funded highway construction projects in the Greensboro area and as a result sub-standard asphalt may have been used in several projects.

APAC management conducted an internal investigation and fired the six employees. In addition to the monetary settlement, an agreement was reached with APAC so that certain highway projects carry an extended materials warranty. If stripping or deterioration of the highway occurs, the warranty ensures that APAC would replace the asphalt.

APAC also agreed to an extensive quality control and compliance program requiring APAC, at their expense, to employ an independent monitor for quality control testing. This investigation was conducted with extensive assistance from the Federal Highway Administration and the North Carolina Department of Transportation.

(Source: North Carolina Department of Transportation, Office of Inspector General via Aggregate Research Industries)

Lafarge acquires Brazilian cement company,
 enters Arizona market

French cement and building materials company Lafarge SA has acquired small Brazilian cement company Cimento Davi SA, local financial newspaper Valor Economico reported, according to a recent Dow Jones article.

According to the newspaper, quoting sources close to the deal, the acquisition was for 100 million Brazilian reals (U.S.$46.33 million), Dow Jones reported.Lafarge already is the sixth-largest cement producer in Brazil, with a market share of 6.6 percent. It has six factories in the country and in 2005 produced 2.5 million metric tons of cement. The company it has acquired, located in the inland state of Minas Gerais, has an annual production capacity of 500,000 metric tons and a market share of less than 1 percent, according to the Dow Jones article. 

According to news posted to the Lafarge Web site, Lafarge has entered the Arizona aggregates market by completing the purchase of the aggregate assets of Sun State Rock and Materials Corp. Sun State has been doing business in the greater Phoenix area for more than 20 years. This acquisition brings 90 employees and four aggregate operations into Lafarge’s Western U.S. business, according to Lafarge.

High court won’t consider W.R. Grace & Co. asbestos case

W.R. Grace & Co. lost its bid to the Supreme Court Tuesday [Oct. 10, 2006] to get out from under a $54 million bill to clean up asbestos in the Montana mining town of Libby.

Justices rejected without comment Grace’s appeal of lower court rulings that said the company was responsible for the entire cost of removing asbestos-contaminated soil in Libby.

The case pits Grace, which operated a vermiculite mine in Libby for 27 years, against the U.S. Environmental Protection Agency (EPA), which oversees the federal Superfund program for the nation’s worst hazardous waste sites.

Grace argued in court papers that the EPA had no authority to hand the company the entire bill, as well as responsibility for future costs, for the cleanup. The 9th Circuit U.S. Court of Appeals and a federal district judge sided with EPA, which sued Grace in 2001 to recover cleanup costs.

“The situation confronting the EPA in Libby is truly extraordinary,” the appeals court wrote in its opinion in December. “We cannot escape the fact that people are sick and dying as a result of this continuing exposure.”

Grace said others appeals courts have ruled that companies can’t be forced to pay the entire cost of cleaning a polluted site without being allowed to challenge whether the cleanup was necessary to contain or remove contamination.

Solicitor General Paul Clement, the Bush administration’s Supreme Court lawyer, urged justices not to take the case. EPA was within its bounds to seek to have Grace pay for the cleanup, Clement said.

EPA Administrator Stephen L. Johnson estimated last year that it would take another five to six years to finish cleaning contaminated sites in Libby, in Montana’s northwest corner.

The case is W.R. Grace & Co., et al, v. U.S., 05-1363.

(Source: Associated Press via Forbes.com. Article by Mark Sherman. Posted on Oct. 10, 2006 to Forbes.com.)

Granite Construction commits to new recycling goals

Indio, Calif.—Granite Construction Co.’s Southern California Branch announced on Oct. 9 its increased recycling goals for both production and supply of all construction materials, including asphalt and concrete.

The new goals include a minimum of 15 percent recycled asphalt within all asphalt production and a commitment that 25 percent of the aggregate produced for all base material will be from recycled material.

The California Department of Conservation (2002) has projected shortages of aggregate in certain areas of the state during the next 50 years. Construction of roads, highways, foundations for houses and schools, bridges, and concrete ditches all require aggregate, either alone, or mixed with asphalt oil for paving or mixed with cement and water to make concrete.  

The aggregate for these products comes from permitted aggregate quarries. The aggregate from these quarries is a limited natural resource. Recycling allows those permitted reserves to last longer and cost less.

Erickson said that Granite is also notifying materials customers that the company will provide a discount on clean recycled asphalt concrete demolition delivered to Granite’s permitted facilities.  For customers utilizing base material (a design mixture of sand and gravel that is used as the underlying layer for paving and foundations) on a project, Granite will provide discounted material and still meet the required design specifications.  

The recycled products meet the most stringent Caltrans construction specifications, according to Granite.  The company goal is to bring recyclable construction materials back to production plants instead of sending it to a landfill for disposal. 

As part of this program, Granite will notify all public agencies such as the Coachella Valley Association of Governments, Riverside County Transportation, San Diego County Association of Governments, Caltrans and the cities in Southern California of the availability of this new program and meet with cities to discuss their design specifications to see where recycled materials might fit requirements and be used to their benefit.


Everything you need to know about operations, equipment, and management can be found in Aggregates Manager. To sign up for a free subscription (for aggregates industry professionals), go to www.Aggman.com/circulation/subform.htm

American Road and Transportation Builders Association (ARTBA) elects 2006-2007 officers and directors

The American Road and Transportation Builders Association (ARTBA) has announced the election of its 2006-2007 officers and directors. The following individuals were elected at the association’s annual meeting, held Sept. 26-29 in San Diego, Calif., as ARTBA officers:

Chairman

C. Michael Walton, Ph.D., E.H. Cockrell Centennial Chair in Engineering, The University of Texas at Austin

Senior Vice Chairman

Leo Vecellio, Jr., chairman, president and CEO, The Vecellio Group, West Palm Beach, Fla. 

First Vice Chairman

Charles Potts, CEO, Heritage Construction & Materials, Indianapolis, Ind. 

Northeastern Region Vice Chairman

Jack Kinstlinger, chairman emeritus, KCI Technologies, Inc., Hunt Valley, Md.

Southern Region Vice Chairman

Jerry Geraghty, executive vice president and chief operating officer, The Rogers Group, Nashville, Tenn. 

Central Region Vice Chairman

Larry Tate, product manager, Caterpillar Inc., Decatur, Ill. 

Western Region Vice Chairman

Jack Belvedere, vice president and director of highways and bridges, CH2M HILL, Oakland, Calif. 

Vice Chairman At-Large

Ron DeFeo, chairman and CEO, Terex Corporation, Westport, Conn. 

Vice Chairman At-Large

Robert Heitmann, director of business development, Zachry American Infrastructure, San Antonio, Texas 

Vice Chairman At-Large

Jim Stake, executive vice president, Display and Graphics Division, 3M, St. Paul, Minn. 

Vice Chairman At-Large

Paul Yarossi, president of HNTB Holdings, Ltd., New York, New York 

Vice Chairman At-Large

Jim Connell, group president, Energy Absorption Systems, Inc., Chicago, Ill. 

Vice Chairman At-Large

Bill Cox, president, Corman Construction, Annapolis Junction, Md. 

Treasurer

Tom Hill, C.E.O., Oldcastle Inc., Washington, D.C. 

The following individuals were elected for a three-year term as ARTBA directors: 

  • Thomas Bradshaw, managing director and co-head of transportation, Citigroup Global Markets, New York, N.Y.
  • Donald Chambers, president, LoJac, Inc., Lebanon, Tenn.
  • Tim Cox, government relations manager, Plastic Safety Systems, Inc., Cleveland, Ohio
  • Denise Cruz-Serpico, project engineer, E.E. Cruz & Company, Inc., Holmdel, N.J.
  • Arthur Dinitz, chairman and CEO, Transpo Industries, Inc., New Rochelle, N.Y.
  • Thomas Farrell, executive vice president, Lafarge North America Inc., Herndon, Va.
  • Linda Figg, president, FIGG, Tallahassee, Fla.
  • Peter Getchell, president, PKF-Mark III, Inc., Newtown, Pa.
  • John Hay, vice president of government relations, Oldcastle Materials, Inc., Washington, D.C.
  • Henry Hinkle, president, Hinkle Contracting Corp., Paris, Ky.
  • Thomas Iovino, president, Judlau Contracting, Inc., College Point, N.Y.
  • Joseph A. Kneib, vice president, market development, Herzog Contracting Corp., St. Joseph, Mo.
  • G. John Kurgan, senior vice president, Michael Baker Corporation, Moon Township, Pa.
  • Michael W. Malloy, vice president and manager, Gannett Fleming, Inc., Albuquerque.
  • Gary Michel, president of road development, Ingersoll-Rand, Shippensburg, Pa.
  • Gail Mize, executive vice president, Astec Industries, Inc., Chattanooga, Tenn.
  • Nancy Nihan, professor and director, University of Washington Dept. of Civil and Environmental Engineering, Seattle.
  • Ward Nye, president and COO, Martin Marietta Materials, Inc., Raleigh, N.C.
  • Edward Nyland, president of business development, George Harms Construction Co., Farmingdale, N.J.
  • James Piekarczyk, county engineer, Kankakee County Highway Dept., Kankakee, Ill.
  • Doyle Powell, president, D.W. Powell Construction, Inc., Fontana, Calif.
  • Chris Ragot, president of road building and utilities, TEREX Corporation, Westport, Conn.
  • Richard S. Shapiro, executive vice president of public affairs and marketing, CEMEX USA, Houston, Texas
  • Terry G. Sharp, manager of marketing communications, Caterpillar Paving Products, Inc., Champlin, Minn. 
  • Daniel R. Smith, president, SK Construction Co., Middleton, Ohio
  • Marvin Templeton, president, Marvin V. Templeton & Sons, Inc., Lynchburg, Va.
  • Larry Thomas, president, H.W. Lochner, Inc., Chicago, Ill.
  • James Weinstein, senior vice president, DMJM+HARRIS, Philadelphia.

 

J.H. Wise Sons Co., Central Paving Co. agree to pay $18,000 penalty to settle Clean Water Act violations

Boise – J.H. Wise Sons Co. LLC (J.H. Wise) and Central Paving Co., Inc. (Central Paving) have agreed to pay an $18,000 penalty to resolve alleged violations of the Clean Water Act (CWA) at the Boulder Heights Estates Subdivision construction site located on Warm Springs Blvd. in Boise, Idaho.

The settlement resolves alleged Clean Water Act violations that Central Paving, an operator at the site, failed to apply for NPDES permit coverage under the Clean Water Act and discharged construction storm water without a permit in violation of the Clean Water Act. The settlement also resolves alleged violations that J.H. Wise prepared an incomplete Storm Water Pollution Prevention Plan (SWPPP) and discharged construction storm water in exceedance of state water quality standards. 

“It’s no secret that storm water runoff from construction sites can harm water quality,” said Kim Ogle, Manager of EPA’s Northwest Regional Office’s NPDES Compliance Unit. “That’s why construction site operators need to take all necessary steps to prevent runoff from leaving their sites and entering nearby rivers, creeks and streams.”  (Source: U.S. Environmental Protection Agency)

e-Briefs

Lafarge acquires four aggregate businesses in Chicago market

Lafarge announced that it has completed the purchase of Western Sand and Gravel, Inc.; Aux Sable Stone, LLC; Utica Stone, Inc.; and Conco Western Stone, Inc. located in the greater Chicago area and North Central Illinois.

The acquired operations consist of one aggregate mine, two quarries, two sand and gravel facilities, and a dock on the Illinois River. The businesses will be consolidated into Lafarge’s existing aggregates operations in Chicago

“This transaction marks Lafarge’s second acquisition in the greater Chicago market in 2006. We welcome our new employees and look forward to continuing to provide high quality products and services to our new and existing customers,” Ken MacLean, president of Lafarge’s eastern U.S. aggregate, concrete, and asphalt operations, says in a press release from the company.

(Source: Aggregate Research Industries and Lafarge).


ARTBA Foundation announces winners of 2006 roadway work zone Safety Awareness Awards

Public and private transportation groups from Florida to Michigan were recognized for their commitment to safety at the American Road & Transportation Builders Association Transportation Development Foundation (ARTBA-TDF) sixth annual “Roadway Work Zone Safety Awareness Awards” lunch. The awards were presented Sept. 27 during the ARTBA Annual Meeting, held in San Diego.

The competition recognizes outstanding efforts to help reduce roadway work zone construction accidents, injuries and fatalities. The awards are divided into four categories: private outreach campaigns, government outreach programs, safety training and innovations in technology. An independent panel of judges reviewed the entries and selected the winners.

Private Outreach Campaigns

This category recognizes the efforts of national, state and local private sector organizations, such as construction companies, utility companies or trade associations that promote roadway work zone safety through implementation of employee and/or public education campaigns and training programs.

The judges selected two winners.

Associated Pennsylvania Constructors (APC), Harrisburg, for “Slow Down! Highway Workers License Plate” Campaign

The APC and Pennsylvania Department of Transportation Joint Safety Committee developed the “SLOW DOWN! HIGHWAY WORKERS license plate” campaign to help increase public awareness about the need to drive carefully in highway construction work zones. The availability of the plates was promoted in state and construction industry publications and websites.

As a result, nearly 2,000 vehicles in the commonwealth are carrying the safety message. Net proceeds from the plate sales were also used to support a national scholarship program that provides post-high school financial assistance to the children of highway workers killed or disabled on the job.

Associated General Contractors (AGC), New York State Chapter, Inc., Albany, for the “Enhancing Police Presence in Work Zones Campaign” 

The AGC, NYS chapter developed a “work zone safety white paper” highlighting the need for boosting law enforcement presence in roadway construction zones. This was the beginning of the group’s extensive outreach efforts to the public and state legislators that led to the successful passage of a new law — the 2005 “Work Zone Safety Act.” 

The chapter subsequently worked with the state police, Department of Motor Vehicles and NYSDOT officials to increase the police enforcement budget from $3 million in 2005 to $10 million in 2006, and improve methods to prevent “work zone speeding.” The new law is expected to play an important role in helping ensure motorists slow down in these sites thereby resulting in fewer accidents.

Government Outreach Programs

This category recognizes the specific public outreach campaigns or safety programs by federal, state or local government agencies aimed at improving roadway work zone safety.

Florida Department of Transportation (FDOT), Tallahassee, for “Florida’s Motorist Awareness System” (MAS)

The FDOT implemented the safety program — MAS — in an effort to reduce the speed of motorists in roadway construction zones when workers are present. The MAS uses five components to enhance a standard lane closure setup.  The additional components consist of: one portable changeable message sign, two portable regulatory signs and two radar speed display units, which are used on multi-lane work zone projects where the speed limit is 55 mph or greater and workers are present in a lane closure.  Since fall 2005 when MAS was first initiated, FDOT says project personnel have already witnessed the reduction of speed in work zones.

Safety Training

This category recognizes national, state and local training programs that promote worker safety on the job site.

Michigan Infrastructure & Transportation Association (MITA), Okemos, for “All Trades Safety Training”

MITA’s training program targeted all heavy construction trades in Michigan and was aimed at helping minimize roadway work zone hazards and protecting workers. Through a state contract, MITA successfully trained nearly 4,500 road and bridge builders, and excavation, demolition and utility workers — which represented a 25-percent increase in workers trained during the previous year. The program is credited with helping foster greater safety awareness and contributing to a reduction in work zone construction site accidents and injuries.

Innovations in Technology

This category recognizes manufacturers of all types of equipment and products that develop, integrate and market innovative technologies, and organizations that demonstrate the innovative application of existing technologies.

Quixote Transportation Safety, Chicago, Ill., for the SST Safe-Stop® Truck Mounted Attenuator

Quixote’s new trailer-mounted attenuator’s (TMA) design requires minimal modification to host vehicles and has added benefits that can prevent secondary accidents while traveling through work zones.

The product creates a safer environment for both drivers and work zone workers. The TMA’s anti-rotational dampeners are designed to lock the unit in place during an angled impact to maximize the TMA’s effectiveness and minimize impacting vehicles from “gating” into a work zone or adjacent lane, which could potentially cause a secondary accident. The dampeners also protect the host truck’s frame by spreading the load of the impacting force, and provide maximum protection to work crews, the impacting driver, adjacent drivers, and the host vehicle. 

The Roadway Work Zone Safety Awareness Awards program is an ARTBA-TDF project that complements the association’s “PRIDE in Transportation Construction” campaign to focus public attention on the many positive contributions the transportation construction industry has made to the U.S. economy and quality of life.


Construction industry productivity on the rise, but room for improvement

The results of FMI’s latest survey on contractor productivity indicate that 54 percent of respondents think that productivity has improved in the past few years, while only 47 percent had improved productivity when the question was asked two years ago. The survey examines contractor practices that affect productivity and makes recommendations for improvement in productivity management.

According to Scott Kimpland, FMI Director and author of the survey, “When we look at the potential impact that a 5 percent to 10 percent labor cost savings could have on profitability and the fact that that less than 30 percent of contractors have a formal plan or strategy to improve productivity, it is surprising that more contractors have not made productivity a higher priority in their business.” Key findings of FMI’s 2006-2007 Contractor Productivity Survey indicate the following:

  • Slightly more than half (54 percent) of the participants responded that productivity had improved either slightly or substantially in the past several years.
  • Eighty percent of respondents believed they could save a minimum of 5 percent of their annual field labor costs through better management.
  • Aging field management continues to be a concern in the construction industry. Seventy-eight percent of the field managers in the surveyed companies are over the age of 35, and over half of them are over the age of 45.
  • Forty-five percent of respondents had between 1 percent and 24 percent Spanish-speaking workers.
  • Forty-six percent of respondents plan three or fewer days in advance of their needs.
  • Daily goal setting was being used only about 26 percent of the time.
  • The greatest external challenges to productivity improvement noted by respondents were the following:
  • Poor quality of plans and specs.
  • Poor coordination by owners general contractors, and/or construction managers.
  • Unrealistic schedule demands.
  • Slow responses from other members of the team (designers, customers, general contractors, and/or construction managers).
  • Lack of available and qualified crafts people.

To obtain a copy of FMI’s 2006-2007 Contractor Productivity Survey Results, contact Phil Warner, FMI Marketing Coordinator, at 919-785-9357 or by e-mail at pwarner@fminet.com.


Northern Utah’s best ready-mixed concrete drivers compete at fourth annual mixer roadeo

Ogden, Utah–Jack B Parson Companies (JBP) mixer drivers walked away with three of the top four spots at the Fourth Annual Northern Utah Ready Mix Truck Roadeo. JBP’s mixer drivers placed 1st, 3rd, and 4th at the Roadeo that was held Sept. 23, 2006, at the Warner Truck Center in Salt Lake City. 

This marks the third out of four years that Jack B. Parson Cos. has won the competition. The Ready Mix Concrete Council of the Utah Associated General Contractors Association sponsored the event.

Thirty-one drivers representing nearly all of Northern Utah’s ready-mixed concrete suppliers participated in the event. Drivers participated in three different tests during the Roadeo: a written test, a pre-trip inspection, and a driving test.

The driving test included ten different skill tests designed to evaluate the driver’s skill in maneuvering, backing, turning, and stopping the mixer. Concrete placement and chute handling skills were also tested during the event.

Sneak Preview
Sneak Preview of the “Closing the Communication Gap Between Sales and Operations” article from the upcoming November 2006 issue of Aggregates Manager. For the full report, including more photos and more tips, see the November 2006 print edition of the magazine.

Closing the Communication Gap Between Sales and Operations

 Improving communications between your operation’s sales force and production team can make your operation more profitable.

by Tina Grady Barbaccia, Senior Editor

At Richmond, Va.-based Lucks Stone Corp., the employees who were part of the aggregate company’s operations would quip to the sales force, “Why can’t you sell what I make?” And the sales team would retort back, “Why can’t you make what I sell?”  

Jim Van Ness, general manager for the southern region of Luck Stone, says this used to be the common sentiment.  

That was before a communication plan was implemented between sales and operations. Now, he says, communication and cooperation between the two has not only improved, but is the norm. “We joke about this a lot now,” Van Ness notes. “We said the adage in jest, but it has some validity to it. In the past 10 years, we have made some really good strides.”

How was the communication divide between sales and operations improved? Van Ness credits Charlie Luck’s decision to regionalize the construction aggregates division. Regions went into effect in 1995 when Charlie became president of Luck Stone. His goal was to bring decision-making closer to customers, Van Ness explains. “This was important because it gave each regional vice president the ability to make decisions about [his or her] region without going up through the hierarchy,” he says.  

But as an added benefit, it also eliminated the divide between sales and operations — and in fact, increased communication between the two. What’s more, it has increased production by about 15 percent throughout the past few years “just by better planning and plant availability,” Van Ness points out. 

Communication improves the bottom line

Good communication between sales and operations is important for several reasons, Van Ness says. Not only do fellow employees get to know each other and learn to work well together toward a common goal — instead of feeling like they are competing against each other — it also affects an operation’s bottom line. 

“When communication breaks down, you get an imbalance in inventory,” Van Ness points out. For example, he says, if production crushes for a specific product such as concrete clean stone but sales hasn’t been consulted, an overabundance of the product could very well be produced. “It’s hard for a plant to operate efficiently once the balance gets out of production’s control,” Van Ness says. 

In the past, production has put pressure on the sales division to get rid of an overabundant product. “If production has produced a product and has a tremendous amount of inventory of it, it can be a hard product to sell,” he says. “But in the past, a plant manager may have put press on sales to get it off the yard. If sales feels that pressure, sales might make a decision that is less than desirable to get rid of the product – such as selling it for a price lower than what the company would normally like to sell it for.” This can ultimately erode the company’s sales margin. 

An inventory imbalance also affects cost per ton, Van Ness says. If a large base pile that is typically created with a radial stacker gets to be larger than the stacker can stack, a loader has to be put on the top of the pile with a loader operator to move the pile. This not only adds cost, but it is less efficient.  

What’s in the forecast?

Monthly meetings held at Luck Stone operations during the past two years have eliminated this potential problem from occurring. “We’ve been sitting down monthly at each side with sales and operations and have been talking about what the upcoming month’s sales are going to be,” Van Ness explains. “The production guys can then adjust their production up or down to meet those needs.”

To avoid an inventory imbalance, production and sales meet at the beginning of the year to develop a forecast and then continually touch base about it to make sure they are both on target — and adjust production or sales if necessary.
Photo courtesy of Luck Stone Corp.

A point also has been made to educate the sales force as to how an inventory imbalance will negatively impact production and cause inefficiencies as well as educating production about the difficulties of selling a product at the eleventh hour. Dust and base typically fit into this category — they grow the fastest and are the hardest to move, Van Ness says.  

To avoid a surplus of these, he says, production and sales meet at the beginning of the year to develop a forecast and run a mass balance to see how it will affect overall inventory at the plant. A mass balance is how the plant naturally produces the end product on a percentage basis, Van Ness explains.  

“Once the material is run through the primary crusher, it will give a certain percentage of base products and a certain percentage of clean stone,” he says. “This percentage varies quarry to quarry based on geology. It’s important for both sides to understand, because if you go back to the ‘Why can’t you make what I sell?’ attitude, a production guy can explain very easily what his plant produces and what percentage.” 

With the forecast, if it gives the desired outcome at the plant, “then we try do stick to that forecast at our monthly meetings,” Van Ness says. 

And this is done at each of the company’s 19 plant locations. “We drill it down to be site specific,” he says. “We talk with the plant manager and sales rep at each individual quarry each year and monthly and go through the whole scenario. At each site, we need to figure out what we are going to do.” 

However, a facility should never stop its regular communications or forecasting because it’s too easy to fall into old patterns, Van Ness suggests. “Once you start, don’t stop,” Van Ness says. “If we quit doing our monthly meetings, I think it [communication] would slip.” It’s too easy for someone to say that a meeting isn’t necessary one month, he says. “Then all of a sudden you’ve missed two or three months and lose the rapport with each other. Your finger might slip off the pulse.” Plus, he adds,  “I think our folks like getting together.” 

Overcoming roadblocks 

At Hanson’s Material Service Corp. (Hanson purchased MSC from General Dynamics Corp. earlier this year), which is based in Chicago, sales and operations absolutely have to work together to ensure the company’s success, says Michael E. Stanczak, a regional vice president of the company.  

“We have been down the road in the past where egos have put up roadblocks in achieving efficient performance at the company,” Stanczak says. “One department might think that it is a top dog when in actuality, there is no such thing as a department that is the top dog.” 

That kind of mentality just breaks down communication and inhibits performance and negatively affects production, he says. It’s the team effort that really can make a difference.

At MSC, a process was started to improve the working relationships between all the departments. And it’s worked extremely well with the interaction and communication between sales and operations in particular, Stanczak points out. What exactly is the process? “It involves three things planning, cooperation, and communication,” he says. “Neither one of the three are more important than the other. It’s not a step process, either.  

All three components have to be there in order to make it work.” And at MSC, the company has experienced about a 50-percent improvement in inventory control during the last 10 years. 

Good communication takes time

 (Left to right) When Michael Gaglione, vice president of operations for Hanson Material Service Corp. (MSC); Frank Anderson, a plant superintendent for MSC; Toby Breedlove, manager of special projects for MSC; and Jim Rancilio, MSC vice president of sales, began working together in the companys process of planning, cooperation, and communication, there was marked improvement in operational efficiency.
Photo courtesy of Hanson Material Service Corp.

However, this improved communication between departments isn’t like a magic pill — it’s not instantaneous. “It’s not something that happens overnight,” Stanczak notes. “It’s a process that some confidence had to be established with, along with a change of attitudes.” 

As part of this, he says, everyone needs to realize they are working for the same company, and there needs to be a commitment to common goals, he says. “The better we get at planning cooperation and communication, the closer we will get to what we are striving for,” Stanczak says.  

Similar to Luck Stone in the past, there was a disconnect between sales and operations/production before a communications plan was implemented between the two. “In the past, operations would be focused only on production, making total production numbers without the necessary concern as far as product mix,” Stanczak says. “The total production numbers took priority over the commodities that were made.”  

The sales team didn’t have an appreciation or understanding for the product process and its limitations, he says. By the same token, there wasn’t a complete appreciation that in order to make premium products used in concrete and asphalt and trying to maximize them, there could also be hardships caused in operation — and that making other base products is necessary as well, he says.  

That’s where the process of planning, cooperation, and communication really fit and made a difference. “We came to an agreement on common goals, including efficient production and customer service,” Stanczak says.

Perfecting the process

MSC expects its sales reps to have regular contact with individual location managers and relate to them what is happening in the customer market area with the products so that both sales and production are committed to the same goal with both quantity and timing.

The operations superintendents also are expected to describe what is currently going on at the plant and advise sales about any potential issues with fulfilling customers’ needs — and then talk about what is necessary to accomplish those needs.

“Communication is expected several times a day or weekly,” Stanczak says of making the plan work effectively. How frequent the communication takes place (whether it’s several times a day, once a day, or weekly) is based on what’s necessary to ensure customers’ needs are served as efficiently as possible, he says.

Regular joint meetings between sales and production are held. The sales team, production, individual superintendents, area superintendents, sales management, and senior management are present, as well as key people in the finance area, so that everyone has a picture of what’s going on.

“Changes in sales or production can have a financial impact, so it’s important they are there as well,” Stanczak says. “At these meetings, we share any significant issues at any plants — both positive and negative. We can do forecasting and make changes to our original plan or original budget. Or if we hear about an unanticipated order, we know what positive result is to be expected going forward.

“If we are not working together,” he continues, “the goals that the company has established in the original budget are not met. No one department can meet a budget by itself or produce the expected results. It has to be a collaborative effort from sales and operations and there is a common goal everyone is working together to achieve.”

Meeting the goals

Although sales and production have always had meetings together, it wasn’t until the company worked together on the process of planning, cooperation, and communication that a difference was really made. “Until we worked toward this formula, the meetings were more finger pointing and laying blame on each others’ doorsteps instead of working to solve whatever was the problem.” 

What was the impetus for making the change? “We were not as successful as we thought we could have been,” Stanczak says. “We had a wall built between operations and sales with each functioning to meet their separate budgetary goals without any collaboration. Now we know that meeting are our goals is important, but the way we meet them is even more important.”

For the full report, including more photos and more tips, see the November 2006 print edition of Aggregates Manager.

e-Products
 

Highest safe lift rate

Flexible Steel Lacing Co. (Flexco) has rolled out a new conveyor belt lifter with a 4,000 pound safe lift rating, the highest available, according to the company. The Flex-Lifter can safely lift fully loaded troughed belts using adjustable wings, and flat belts using a return lift bar. It is available in two models: the Medium Flex-Lifter, for 36- to 60-inch belts, and the Large, for 48- to 72-inch belts. —Kirk Landers


Redefining the quarry truck

Caterpillar has introduced two completely new trucks in the 40- and 50-ton payload classes. The 476-horsepower 770 truck has a heaped capacity of 32.8 cubic yards with the standard body and takes a 40-ton payload. The 535-horsepower 772 truck has a 41-cubic-yard capacity and is designed for a 50-ton payload. Although quarries are the primary market for the two new trucks, they will also be sold into the construction and mining markets. They replace Cat's 769 and 771; the venerable 769 first came to market in 1962, while the 771 debuted in 1992.

Among the proprietary features on the new trucks is a choice of five different body liner systems — three steel, two rubber — so that customers can configure their trucks for optimum capacity and durability in specific applications.

The trucks also feature Cat's new center-mounted cab, which provides additional space, easy ingress and egress, improved visibility, and a better ride, according to the company. Cab features include a center-mounted seat, a new HVAC system that produces greater airflow and even temperatures throughout the cab, and an optional rear-view camera system.

Also new is Cat Messenger, a machine management system that provides real-time and stored machine performance and diagnostic data through an LCD display in the cab. When combined with the optional Truck Payload Management System, Messenger also shows payload state, payload weight, loaded travel time, loaded travel distance, and accumulated weight. The payload system now has second-gear weighing capability and 2,400-cycle storage for data analysis.

Both trucks have Tier 3 engines with 500-hour service intervals. QuickEvac, Cat’s onboard engine-oil evacuation and pre-lube system, is standard equipment on both trucks and reduces oil change labor time by up to 50 percent, according to Cat. Power train improvement includes the integration of new control electronics for Cat’s seven-speed power shift transmission to improve performance and durability. —Kirk Landers


Topcon says its positioning system has successfully tracked signals from the first Galileo test satellite, making it the first company to successfully track GNSSD signals from all currently available satellites with production instruments.

The ability to track signals from Russia’s new satellite constellation in addition to the other two established constellations is expected to improve the usefulness of GPS systems in places where signals are difficult to receive, including quarries. —Kirk Landers

For more new products for the industry, check out the RollOuts section
in each month’s print edition of
Aggregates Manager.

Manufacturer e-News

P-Wave, Inc., a document and records management solutions company for regulated industries, has partnered with White Industrial Seismology, Inc. to offer explosives companies a solution to design and analyze blasts as well as manage all blast records in a secure centralized database.

The partnership integrates Master Blaster, P-Wave’s inventory and blast management system with White Industrial Seismology, Inc.’s Compu-Blast, a blast design and timing analysis system. The result of the integration of Master Blaster with Compu-Blast will allow an end-to-end solution that will improve safety, efficiency and compliance with regulations for blasting companies.

Master Blaster is a blast and inventory management software system that dramatically improves documentation accuracy, minimizes paperwork, and allows for rapid search and retrieval of blast documentation and inventory records from a secure web browser anywhere, 24/7. Compu-Blast is a program that makes it easy to layout blast designs and to calculate timing. There are also numerous blast reporting and analysis features. The integration of these programs will allow data and records to be saved and passed into Master Blaster which serves as the central repository for all blast related reports, data and records.


Ingersoll-Rand Company Limited, a diversified industrial company has announced the signing of a definitive agreement to acquire Geith International, a provider of attachment products for construction equipment, from management shareholders and two venture capital funds managed by Bank of Scotland (Ireland) Ltd. The acquisition is expected to close in the fourth quarter of 2006. Terms were not disclosed.

Founded in 1950 and based in Slane, Ireland, Geith develops a wide range of attachments for equipment used in general construction, excavation, demolition and scrap handling industries.

In addition to its facility in Slane, Geith operates production, sales and service facilities in Tredegar, Wales, and Petersburg, Virginia, and a sales office in Pierrelaye, France. For its fiscal year ended March 31, 2006, Geith generated revenues of approximately €42 million ($54 million). The company has approximately 290 employees.

Geith International will operate as part of the attachments business unit within the Ingersoll Rand Construction Technologies Sector, which designs, manufactures, sells, and services road construction and repair equipment, portable power products, general-purpose construction equipment, attachments and portable light towers and compressors.


Chevron Delo announced that it has partnered with Penske Truck Leasing to take care of lubrication needs of more than 200,000 class six to eight trucks, operating in North America, with its Chevron Delo brand. Under the agreement, Chevron will provide Delo lubricants, solutions, and market knowledge to more than 700 Penske Truck Leasing


CNH America, parent company of Case Construction Equipment and New Holland Construction Equipment has been named one of the top five companies on Quality magazine’s list of North America’s top 100 companies for quality manufacturing operations.


Volvo Trucks and  Mack Trucks have announced that its 2007 engines meet U.S. Environmental Protection Agency certification requirements. —Kirk Landers


Superior Industries has announced that McCourt & Sons Equipment, of LaGrange, Texas, will now serve as Superior’s exclusive equipment dealership for the state of Texas.

McCourt & Sons Equipment will market and service Superior’s conveyor products portable radial stackers.


Frost & Sullivan presented the Schenck Process Group the Product Line Leadership of the Year Award for its comprehensive weighing and feeding product and service offerings in industrial production processes. In bestowing this award, Frost & Sullivan says that it commends Schenck Process for its success in providing integrated solutions in weighing and feeding technology across a wide spectrum of end-user industries.


John Deere Construction & Forestry Co. announced on Oct. 2 the release of the 2006/07 Edition Deere Performance Handbook and CD-ROM package. In addition to the latest equipment specifications, the handbook features owning and operating cost formulas and production estimators.

The handbook and CD are revised each year to add new products and update the equipment specifications.

The Performance Handbook with CD package is available at any John Deere Construction & Forestry dealer (item # DKD1704). The CD-ROM disk requires MS Windows, a Web browser (Netscape or Internet Explorer), Acrobat Reader 4.0 or greater, and Excel 2000 or greater. 

e-Quick Takes
The latest people news on who’s who and who has moved where within the industry.

The National Asphalt Pavement Association (NAPA) Chairman Jim Roberts has appointed Richard C. Moore of Lehman-Roberts Co. as the new chairman for the 2007 World of Asphalt Show and Conference. Moore is President of Lehman-Roberts, based in Memphis, Tennessee.

World of Asphalt is run by the industry and for the industry and as Chairman, Moore heads a volunteer committee of more than 20 asphalt industry professionals who oversee planning of the event. World of Asphalt 2007 will be held March 19-22, 2007 at the Georgia International Convention Center in Atlanta. 

Moore fills the vacancy left by the resignation of  former chairman Wayne Evans, who now works for a manufacturer, not producer. World of Asphalt operating guidelines call for a producer member to chair the show management committee.


John M. Boler

John M. Boler, chairman of the board for The Boler Co., has announced the following executive management changes: 

Boler is assuming the responsibilities of president and CEO of The Boler Co. in addition to continuing as chairman of the board. Reporting to the president will be James Colley, vice president of finance and treasury, and Nancy B. Coons, vice president of administration. 

Gary Gerstenslager, general manager of Hendrickson Trailer Suspension Systems, has been promoted to president and chief operating officer, Hendrickson Operations and will report directly to Boler. Reporting to Gary will be the Hendrickson general managers, sales, IT, human resources, and finance. 

John H. Walker, former president; Keith D. Stephenson, former chief development officer, and Robert Micchelli, former vice president finance and IT, have left their employment with The Boler Co.


Ingersoll Rand has appointed Daniel Sandonato to vice president of global marketing road development.

Sandonato is responsible for leading the global product marketing and development activities for road development and driving long-term growth strategies focused on portfolio and geographic expansion. Under his leadership, road development will execute plans related to products and global market presence and expansion. Sandonato is also leading the current introduction of several new road development products, including the milling platform for Ingersoll Rand and highway-class paving equipment.

Sandonato joins Ingersoll Rand from FKI Logistex, a global leader in automated material handling equipment, where he served as vice president, operations. His contributions included the development and implementation of strategic growth initiatives focused on channel development, aftermarket and recurring revenue streams. 

His prior experience includes management roles with JLG Industries, where he was vice president, marketing and sales development, with responsibility for customer-driven product and solution development and channel segmentation. 

Sandonato holds an MBA from Xavier University in Cincinnati, Ohio, and a bachelor of science degree in chemical engineering from the University of Massachusetts.


Russell “Bruce” Swanson, a former Top construction official for the Occupational Safety and Health Administration (OSHA), has joined law firm Patton Boggs LLP as a senior policy advisor. 

Swanson will serve as an integral part of the firm’s Health and Safety Law practice and will also work closely with the Public Policy and Lobbying and Construction Projects Infrastructure and Finance groups, according to a press release issued by Patton Boggs.

Before joining Patton Boggs, Swanson was instrumental in establishing the  Directorate of Construction within the Occupational Safety and Health  Administration (OSHA) at the U.S. Department of Labor (DOL). During his  tenure as its Director, he garnered support both internally from OSHA and from the regulated construction community to help solidify the Directorate’s standing as OSHA’s principal source for standards, regulations, and programs aimed at ensuring safe conditions for construction workers. 

Swanson also held a numerous posts at the DOL as a senior executive service member serving as OSHA deputy assistant secretary from 1992-1994, director of administration and management at the Mine Safety and Health Administration (MSHA) from 1988-1992, MSHA’s deputy administrator of coal mine safety and health from 1987-1988, and OSHA’s Region IX administrator in San Francisco from 1983-1988.


Dr. C. Michael Walton, professor of civil engineering and the E.H. Cockrell Centennial chair in engineering at The University of Texas (UT) at Austin, has been elected 2006-07 American Road & Transportation Builders Association (ARTBA) chairman. Walton’s election was announced during the association’s annual meeting, held Sept. 26-29 in San Diego, Calif.

For more than 35 years, Walton has been a leader in transportation policy and engineering analysis. He has written or contributed to more than 250 publications in the areas of intelligent transportation systems, freight transport and transportation engineering, planning, policy and economics. He has been a senior editor or contributing author for a variety of technical reference books and manuals, and served as a member of the editorial board for several international journals. Currently, Walton has research or consulting relationships with approximately 30 states. 

His ARTBA leadership positions include the following: senior vice chairman, first vice chairman and western region vice chairman. He is a key player in helping develop the association’s legislative and regulatory policy positions on federal transportation development issues. 

Walton is a member of the National Academy of Engineering and is a founding member of the Intelligent Transportation Society (ITS) of America and a past chairman. He is also past chair and member of the Transportation Research Board (TRB) Executive Committee. 

Walton has received many national honors and awards during his distinguished career. In 2004, the ARTBA Transportation Development Foundation named him one of “America’s ‘Top 100’ Private Sector Transportation Design & Construction Officials of the 20th Century. He is a recent recipient of the Council of University Transportation Centers award for distinguished contribution to university transportation education and research. 

In 2000, he was selected by a board comprised of the president and executive director of each of the three sponsoring organizations — American Association of State Highway and Transportation Officials (AASHTO), TRB and ARTBA — to receive the Bartlett Award. The prestigious award is considered to be among the highest honors in the highway transportation profession. He also received an Outstanding Projects and Leaders (OPAL) award from the American Society of Civil Engineers to recognize and honor lifetime excellence in furthering civil engineering education.


As part of its restructuring of its Government Affairs Department, the National Ready Mixed Concrete Association (NRMCA) has promoted Robert Sullivan to vice president of government and legal affairs, and Kerri Leininger to director of government affairs and PAC activities.

Sullivan joined NRMCA in December 2004 as a director of government relations. He has extensive trade association experience, having worked for the American Petroleum Institute and the National Governors Association. Sullivan was also a staff member of the House Subcommittee on Energy Policy, Natural Resources and Regulatory Affairs and, most recently, worked in the Office of Congressional Affairs at the Federal Transit Administration.

He holds a bachelor’s degree from Boston College, a law degree from Gonzaga University in Spokane, Wash., and a master of laws degree from the University of Washington. Sullivan is primarily responsible for representing NRMCA’s interests in Congress and monitoring congressional action for its effect on the ready mixed concrete industry.

Leininger joined the association in August 2004 and is now responsible for all aspects of NRMCA’s political action committee, including donor recruitment, federal compliance, event management, and development of innovative donor programs to ensure active participation by CONCRETEPAC donors. She received a bachelor’s degree in applied arts and technology, journalism from Eastern Kentucky University in Richmond.


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Compiled by Tina Grady Barbaccia, Aggregates Manager Senior Editor.
To contact Tina about the newsletter content, send e-mail to
e-news@aggman.com or call (630) 364-2306.

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