Indiana Business Magazine May 2004 ToolingNet An advanced-manufacturing partnership backed by the 21st Century Fund. by Kathy McKimmie With the steady loss of good-paying manufacturing jobs, the Indiana General Assembly took action in 1999, creating the 21st Century Research and Technology Fund to leverage other grants and investments, stimulate growth and diversify Indiana’s jobs for the future. The seed money provided to a grantee, typically less than $2 million in a two-year period, helps develop and commercialize advanced technologies primarily through partnerships between the state's universities and the private sector. Since its inception, the fund has approved $109 million on 85 projects that total $342 million when combined with matching funds from other sources. The next round of 21st Century projects, divvying up an additional $20 million in state funds, will be announced in the fall from applications received this month. "There’s a tremendous demand for 21st Century funding," says Tony Armstrong, the fund’s director. "Unfortunately, we’re not able to fund as many as we’d like." The approval rate has run about 12 to 15 percent since the program began, he says. In the last round, 117 were received but only 21 were approved. The tough choices on who gets what is made by out-of-state peer reviewers (to avoid conflict) who follow the same basic guidelines as the National Institute of Health and the National Science Foundation in awarding their grants, says Armstrong. A cash and in-kind match must be at least one-for-one. Projects approved to date have ranged from http://www.indianabusiness.com/articles/2004/0504_F.html (1 of 5) [6/10/2004 4:37:23 PM] Indiana Business Magazine development of entertainment video over the Internet to minimally invasive orthopedic implants to fire-retardant plastic fiber-optic cable. The basis of manufacturing. One project that’s trying to take a common part of the manufacturing process and make it shine is ToolingNet, which received $1.7 million from the fund last year to develop an online collaborative marketplace for the state’s tooling industry. ToolingNet focuses its attention on one of the most primary aspects of manufacturing: tooling. For the creation of metal parts, for example, the tooling industry turns out machine tools used in the cutting, shaping or finishing of materials. "In plastics, it’s called a mold and it’s a negative impression of a part that you want to make," says J.R. Spitznogle, president of Indianapolis-based Global Plastics. "Tooling is really the basis for any manufacturing," says Nainesh Rathod, president and CEO of Imaginestics, a 2-year-old software development company located in the Purdue Research Park that’s operating as the project manager of the grant. "Every manufacturer has to build tooling to produce a part," he says, whether it’s metal castings or molds for plastics. If costs can be reduced and efficiencies gained through a streamlined online process, Indiana companies can gain a competitive edge and retain and grow jobs. Karthik Ramani, Purdue professor and director of the Purdue Research and Education Center for Information Systems in Engineering (PRECISE), West Lafayette, developed the ToolingNet proposal in cooperation with other players that could make it happen: Vincennes University, Tri-State University in Angola, Ivy Tech State College, WeToolIT in Fort Wayne, the Indiana Manufacturers Association, the National Tooling Manufacturing Association and several individual companies. Since then, the Midwest Association of Plastics Processors and the American Foundry Society have joined in, as well as dozens more companies. Eventually, Indiana manufacturers will be able to use ToolingNet as a one-stop virtual shop to find an expert, share best practices, get access to breakthrough design technologies in the metal-casting and plastics industries, take online classes from participating universities, solicit bids from vendors, and participate in online forums and surveys. http://www.indianabusiness.com/articles/2004/0504_F.html (2 of 5) [6/10/2004 4:37:23 PM] Indiana Business Magazine ToolingNet will seamlessly link every part of the supply chain, from original-equipment manufacturers (OEMs) to designers to suppliers. Ramani also serves as chief scientist of Imaginestics and is part owner. He was president of WeToolIT, the forerunner of ToolingNet that was acquired by Imaginestics in April 2003. ToolingNet applies the latest advanced-manufacturing techniques learned from research conducted at PRECISE. With an earlier $1.1 million 21st Century Fund grant, Ramani developed a computer-aided direct rapid tooling design and digital manufacture program that can dramatically reduce the design time and expense in the development stage. "Imaginestics is the entity that takes ToolingNet and makes it real," he says. Since the project began a year ago, the computer infrastructure has been built and more companies have been approached to sign on to try it out and help work out the bugs. Seventy companies are now members, says Rathod. Sam Lombard, president of Indiana Precision Plastics, Williamsport, became a ToolingNet fan after hooking up with Ramani’s rapid tooling process a couple years ago through Purdue’s Technical Assistance Program. "Rapid tooling gives the tooling designer an opportunity to make changes in the same mold," he explains. By making it in segments, the designer can take out a section or make a new portion. For example, a cup could be the basic mold and the software could add a handle or two handles, without making an entirely new mold. The software will be able to predict the relative cost of the part upfront. With some tweaking of the design, the designer will get immediate feedback on potential cost savings. ToolingNet could then automatically find members within a 60-mile radius, for instance, who are able to make the part and solicit bids. "The key point here and the major reason we’re losing business is because of low labor costs offshore," says Lombard. If the costs of making the molds can be reduced the total bid price will be kept down and job loss will be minimized. "That’s not to say that in a year or two they can’t copy what we’re doing, but it will help for now." Global Plastics is a vertically integrated injection-molding company with in-house engineering and tooling capabilities providing products in the automotive, medical component and packaging areas. Spitznogle http://www.indianabusiness.com/articles/2004/0504_F.html (3 of 5) [6/10/2004 4:37:23 PM] Indiana Business Magazine says his company became a partner in the ToolingNet project to share its insights on the process of tool design and how tooling providers collaborate with customers, who may be OEMs in a variety of industries. "They’re working with OEMs and working with us to say ‘here’s how we go about doing business,’" he says. To make ToolingNet work, Spitznogle says its developers needed to learn more about "what OEMs and manufacturers talk to each other about." "Speed to market is key, and making it right the first time," Spitznogle adds. He sees ToolingNet as especially useful for helping OEMs conceive of a product that tooling manufacturers and parts suppliers will be able to deliver quickly and successfully. "It is probably more for an OEM to help in the design process," he says, allowing them to design parts that are more readily manufactured, then hook up with a capable vendor. ToolingNet is free for users until the grant ends in mid-2005. The plan then, says Ramani, is to create a not-for-profit company to run with the idea, with trade associations playing a big part in encouraging their members to sign up to use the services for a fee. Imaginestics is working with the state of Michigan on a similar program. Universities team up. The success of ToolingNet depends on the marriage of a research university, Purdue, with the training capabilities of other institutions: TriState University, Ivy Tech State College and Vincennes University. "Research at universities takes too long to get to the general public," says Forrest Flocker, assistant professor mechanical engineering at TriState. "At Tri-State, we’re producing educational content for the ToolingNet Web site, for example: learning modules for the casting industry." If a company is considering changing its process or expanding production, Flocker says, it will be able to click on castings link of the site and find information on 40 different types of casting. Online seminars, called Webinars, will be offered on ToolingNet, says Flocker, which can be real-time. You can also find an expert and chat online. "The whole thing is to help the manufacturing industry in Indiana, mainly suppliers in the automotive industry." Indiana has the http://www.indianabusiness.com/articles/2004/0504_F.html (4 of 5) [6/10/2004 4:37:23 PM] Indiana Business Magazine trained people, he stresses, but the manufacturing processes need to be improved to be competitive. Dan Flick, instructor of CAD/CAM and computer numerical control at Ivy Tech State College in Indianapolis, says he doesn’t want to reinvent the wheel with his involvement in ToolingNet. "What you want is sort of a machining handbook for the Internet." Beginning this summer, Ivy Tech will put interactive or text-based reference and learning modules online. The information could be of particular value to small companies, he says, because larger companies have laid off workers and are looking to outsource work that used to be done inhouse. Each of the universities involved in ToolingNet brings its particular expertise to the project, says John Ludlow, assistant vice president statewide business and industry training at Vincennes University. For Vincennes, that includes tool and die and injection molding. In order to stay competitive, companies must strive for continuous improvement in processes using robots or automated machinery, he says. "The part doesn’t look a whole lot more sophisticated than it did 20 years ago, but the way they’re going about it is much more sophisticated." For more information, phone 317.692.1200 a Curtis Magazines Inc. publication 55 Monument Circle Suite 300, Indianapolis, IN 46204 http://www.indianabusiness.com/articles/2004/0504_F.html (5 of 5) [6/10/2004 4:37:23 PM]