Ziv VolokhovZiv Volokhov

IliaIlia ShtainmanShtainman

ProducProductt

BusineBusinessss ProcessProcess

The product: Coin

DefinitionDefinition: A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or

territory.(Dictionary)

) Wikipedia(

The product: Coin

The product: Coin

Manufacturing Process:Creating Blanks:

CastingThe coinage metal is cast in ingots or bars.

Rolling The ingots are then rolled into strips.

Manufacturing Process:Creating Blanks:

Stamping outBlanks are stamped out of the sheet metal.

RimmingThe blanks are flattened until a smooth raised edge or rim is formed.

Creating Master Hub:

SketchThe artist draws a sketch.

Plaster modelAn oversized plaster model is created from the sketch.

Manufacturing Process:

Creating Master Hub:

ReducingThe model is scaled down on a reducing machine to the actual dimensions of the coin.A needle traces the model and scales it down via a series of cogs and gears. It is a very slow process that takes up to three days.

Manufacturing Process:

Die Making:EngravingThe steel-positive die thus produced is subsequently reworked by an engraver.

Manufacturing Process:

Die Making:

Die PressingAfterwards, the steel-positive die is hardened and pressed with great force into a mild-steel model.

Die HardeningThe negative minting die thus produced is then turned into shape, hardened and chromium-plated.

Manufacturing Process:

Minting:

Peen-FinishingTo achieve optimum surface quality, the minting blanks are subsequently pickled and peen-finished.

AnnealingThe malleability of the blanks is enhanced by soft-annealing in a furnace.

Manufacturing Process:

Minting:

WashingAfter the annealing process the blanks are tarnished. The are washed in order to remove any pickling and polishing-agent residues.

MintingThe coins are continuously struck. One die remains motionless while the other die strikes. The machines are able to operate at speeds of up to 750 coins per minute

Manufacturing Process:

Manufacturing Process:Metals And Alloys Used For Coins:

Aluminum, Carbon, Cobalt, Copper, Gold, Iron, Lead, Magnesium, Nickel, Platinum, Silver, Tin, Titanium, Zinc.Brass, Bronze, Cupro-nickel , Electrum , Nickel Brass, Nickel Silver, Steel, Stainless Steel.

Manufacturing Process:Metals And Alloys Used For Coins:

Aluminum, Carbon, Cobalt, Copper, Gold, Iron, Lead, Magnesium, Nickel, Platinum, Silver, Tin, Titanium, Zinc.Brass, Bronze, Cupro-nickel , Electrum , Nickel Brass, Nickel Silver, Steel, Stainless Steel.

Business• Cost covers five components: material, fabrication (metal

processing), labor, overhead, transportation.

• The cost of the coin material is the largest cost component.

• The difference in production cost and face value helps fund the minting body.

• Volume of production defined by the government and the national bank

BusinessCancellation of the 5 Agorot coin:• With the sharp rise in the price of metal, the cost

of minting the 5 Agorot coin has risen to 16 Agorot.

BusinessCancellation of the 5 Agorot coin:• The cheapest suitable metal found, with a different

color to that of the current coin, would bring the cost of minting down to only 6 Agorot.

• The rise in metal prices raises the fear that the gap between the face value of the coin and its worth as metal would lead to the coin being melted down for its metal value.

• The expected annual saving from canceling the 5 Agorot coin is NIS 1.7 million.

• Bank of Israel announced that the 5 Agorot coin will cease to be legal tender in Israel starting 01/01/2008.

Summary• The coin is a classic example of a mass produced

product – Design – Make – “Sell” .

• More than 35 million coins are minted in Israel every year.

• Despite the existence of modern machinery, production process of the coins basically remains the same as in ancient times.

• Due to metal price rise , production of certain

coins became none profitable.

• Coins production cost is very close to its nominal value. As a result, faking coins is not profitable enough.

Summary

• Mint

• Material Cost

• Rimming/Upsetting machine

• Peen-Finishing

• Annealing

• Engraving

• Transfer Engraving Machine

ANY QUESTIONS?