1. Ziv Volokhov IliaShtainman Ilia Shtainman

2. Product Business Process

3. The product: Coin Definition Definition: 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)

4. The first coins: Coins are considered to have originated ca. 600-550 BC in Anatolia, which corresponds to modern-day Turkey. The first coins were made of electrum, a naturally occurring alloy of silver and gold that was further alloyed with added silver and copper. (Wikipedia) The product: Coin

5. Coins today: Coins are made from a cheap and durable metal. Coins production cost is very close to its nominal value. Coins are made according to exact composition, weight and dimensions in mass production. The product: Coin

6. Manufacturing Process: Creating Blanks: Casting The coinage metal is cast in ingots or bars. Rolling The ingots are then rolled into strips.

7. Manufacturing Process: Creating Blanks: Stamping out Blanks are stamped out of the sheet metal. Rimming The blanks are flattened until a smooth raised edge or rim is formed.

8. Creating Master Hub: Sketch The artist draws a sketch. Plaster model An oversized plaster model is created from the sketch. Manufacturing Process:

9. Creating Master Hub: Reducing The 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:

10. Die Making: Engraving The steel-positive die thus produced is subsequently reworked by an engraver. Manufacturing Process:

11. Die Making: Die Pressing Afterwards, the steel-positive die is hardened and pressed with great force into a mild-steel model. Die Hardening The negative minting die thus produced is then turned into shape, hardened and chromium-plated. Manufacturing Process:

12. Minting: Peen-Finishing To achieve optimum surface quality, the minting blanks are subsequently pickled and peen-finished. Annealing The malleability of the blanks is enhanced by soft- annealing in a furnace. Manufacturing Process:

13. Minting : Washing After the annealing process the blanks are tarnished. The are washed in order to remove any pickling and polishing-agent residues. Minting The 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:

14. 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.

15. 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.

16. 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

17. Business Cancellation 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.

18. Business Cancellation 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.

19. 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.

20. Summary Mint Material Cost Rimming/Upsetting machine Peen-Finishing Annealing Engraving Transfer Engraving Machine

21. ANY QUESTIONS?