ASIA
Asia Manufacturing News
November/December 2014
MANUFACTURING NEWS Success Through Innovation
November/December 2014
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Hankook Delcam world’s biggest for CAM users
The Connected Industrial Enterprise The business of Neutraceuticals
The keys to succeeding in ASEAN
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ASIA
MANUFACTURING NEWS
EDITORIAL
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Let’s not follow the others If Peter Thiel, co- founder of PayPal and Palantir has it right the future needs to Doug Green change. It’s easier to copy a model than to make something new. Doing what we already know how to do keeps on adding more of something familiar. And it is easier to do. Peter Thiel has a book out with Blake Masters, Zero to One. How about we just don’t keep on being a computer manufacturer amongst lots of other computer manufacturers and make something new? Because if we keep on being moderate and doing what we know amongst other similar companies – our competition – then sooner or later we, the competition, may not be around much longer because competition amongst equals brings with it company takeovers. Three computer manufacturers become two. Why not make something brand new instead of copying what others are doing? Can we think of something that hasn’t been made before and not have to bother having competition. Get it? In golf, we talk about our own authentic swing. That may be a swing not based on our golfing buddies, not copying anyone else to drive the ball down the fairway. Because 2014 is rapidly coming to an end I think this is a good subject for all of us to look at for 2015. A great opportunity to dream and plan what might be next for our company that no one else is doing. Imagine that! Get your company geniuses together and ask the question “How can our company make something new and not take the easy way by continuing to do just what we know?” One upon a time someone invented the paper clip. Then someone else made another model, round, not silver, but in colours. It was still called a paper lip. You may be thinking that if you the great individual idea you would be doing it? But would you…are you in the comfort zone and this is as good as (you want it) to get?
the
FactoryFloor
Magazine
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I am looking forward to lots of new, exclusive ideas coming my way in 2015.
Asia Manufacturing News
November/December 2014
CONTENTS 4 | THE INTERVIEW Michael Zink, head Citi’s regional office for ASEAN.
7 | DEVELOPMENTS Delcam’s Hankook Conference world’s biggest for CAM users. 8-9 | DEVELOPMENTS India grows in importance for Nasmyth.
10 - 15 | ANALYSIS A pocket guide to doing business in China.
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16-18 | CASE STUDY PLM helps automaker reduce product development cycle. 20 | EVENTS Manufacturing Myanmar well received. 22-24 | ANALYSIS Connected Enterprises need data unlocked. 25 | DEVELOPMENTS IN – House grinding keeps tight control on quality.
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26 - 30 | EVENTS Countdown begins for Labelexpo South China. The business of Neutraceuticals. 30 – 33 | BUSINESS NEWS Hypertherm appoints new Asia Pacific director. PwC and Google announce joint business relationship. SATO to strengthen global presence. 34-37 | MANUFACTURING TECHNOLOGY Hypertherm introduces Centricut consumables. Plasma system maintenance.
38 | THE INTERVIEW Veolia | CBB Post Show & Outlook
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39 | Dongbu Daewoo Electronics selects Seimens PLM system.
40-41 | AMN EDITORIAL CALENDAR 2015
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THE INTERVIEW
THE INTERVIEW
The keys to succeeding in ASEAN As the first head of Citi’s regional office for the Association of Southeast Asian Nations (ASEAN), Michael Zink leads the global banking giant’s effort to expand in one of the world’s most dynamic and diverse markets. He sees enormous opportunities for companies such as Citi that learn to see ASEAN’s collective potential as larger than the sum of its parts. In an interview with Clay Chandler, Zink argues that ASEAN has demonstrated remarkable financial resilience since the Asian financial crisis of the 1990s and explains why Citi expects the region to play an increasingly prominent role in its own growth and that of the world economy. McKinsey: Do you plan strategy for ASEAN as a single regional entity, or is it more practical for
distribution channels, have been able to take advantage of it.
Increasingly, we find the companies that are most successful [here] are thinking about connectivity across the ASEAN community. McKinsey: Can ASEAN compete with China in manufacturing? Michael Zink: China is no longer an
multinationals to see ASEAN as a collection of
inexpensive place to manufacture, with the cost
separate and very different markets?
of labor, the cost of water, the cost of operation.
Michael Zink: ASEAN is not an artificial
It’s much more expensive than it was a generation
thing. It’s not something that was created in the
ago. Southeast Asia still has some cost benefits.
imagination of an executive at some multinational
And there’s some serious manufacturing under
company. ASEAN is real. It’s 50 years old. It’s a
way here. Thailand is the automobile-manu-
willing gathering of ten nation-states—not just
facturing center of the region. And Indonesia
for economics but for security and for other
increasingly manufactures. So it’s a rising sector,
exchanges [and] political consultation. It’s been
manufacturing. But it’s the services sector that
intensified recently in the minds of business
looks like the real driver moving forward.
you, those ten countries remain nation-states,
China is no longer an inexpensive place to manufacture, with the cost of labor, the cost of water
and they each have their distinct nature. We have
McKinsey: What are the key drivers of growth
executives because the ASEAN Economic Community has been articulated very clearly, and it’s about to come into focus by 2015. Now, mind
to acknowledge that and treat them as different countries. But ASEAN is a real thing. Increasingly, we find the companies that
in the region? Michael Zink: One thing we talk about a lot is urbanization. Half the human population lives
are most successful [here] are thinking about
in a city today. By 2050, it’s probably going to
connectivity across the ASEAN community. Tariffs
be 75 percent. But in Southeast Asia, it’s still
have come down. The economic community is
only a quarter of the population. So this trend
coming into place. Companies that have worked
toward urbanization—people moving into cities,
out the logistics, that have thought through their
something we watched happen in China for the past 20 or 30 years—it’s going to accelerate here.
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What’s the impact and what’s the opportunity? Affluence is rising and being concentrated in urban centers. Anybody who’s figured this
November/December 2014
to buy other companies. That’s a very, very, very good evolution. If you look at the chart of the rising markets
out—that it’s about cities, urban centers, and
across that 2014–15 period, it’s as if the global
concentrating your distribution and your outreach
financial crisis of 2008–09 never occurred. It’s a
to your clients in the urban centers—is going to
straight line up.
win. If you look around the rest of the world, Europe’s
There are efforts to link the exchanges. Today, they operate very distinctly. There are efforts
aging, Japan’s aging, and China’s aging more than
for trading links so that brokers can buy and sell
people realize. Not Southeast Asia. Half the people
stocks across them in an attempt to accumulate
in Indonesia—half the 200-plus million—are under
those pools of liquidity so that they aren’t
30. This is a very young place. It’s dynamic, it’s
fragmented, as they are today. That will take
vibrant, and there’s a lot of enthusiasm. [Indonesia
awhile.
is] growing at 6 percent a year, every year. They’re
McKinsey: And on the fixed-income side?
winning and they feel good about it.
Michael Zink: When we look at debt capital
McKinsey: What opportunities do you see in ASEAN financial markets? Michael Zink: There’s a question of whether
markets, we’ve already done some very specific mechanical, unglamorous things to have standards that are harmonized across
we can develop the capital markets across
the ten countries of ASEAN. Under the ASEAN
ASEAN and do it regionally. It’s posed in a way
Disclosure Standards Scheme, if you issue debt
to suggest that we haven’t done so. But that’s
in one country, it has now been agreed that
not true. The capital markets here are evolving
the issuer needs to provide only a single set
very quickly. The ASEAN-5, they have big stock
of disclosure documents that comply with the
exchanges: Singapore, Kuala Lumpur, Jakarta,
ASEAN Disclosure Standards to investors in each
Bangkok, and Manila. The market capitalization
jurisdiction. This increases efficiency and reduces
of those exchanges has quintupled between 2000
costs. Suddenly, an issuer of a bond in one
and 2014. [The year] 2000, that’s the benchmark.
country has access not just to the people inside
The 1997–98 crisis, we came out of that. New
of his own nation-state but also to the whole 600
benchmark: a fivefold increase to $2.5 trillion.
million population across ASEAN.
That’s about 100 percent of GDP—a huge number. But compared with what? Bank lending in the same region is $2 trillion. Equity markets [are] now larger than the total
McKinsey: What are prospects for further integration in commercial and retail banking? Michael Zink: Banking liberalization will take time because prudential regulators are still defined
stock of bank lending. The access to capital,
by countries. So you still need permission to enter
the accumulation of wealth, that’s moved into
Singapore or Thailand or Malaysia or Indonesia.
equities. And these are companies that are floated
We have a lot of work to do before there is such
on those exchanges. Terrific.
a thing as a unified ASEAN banking market.
The debt capital markets have seen a similar expansion, [growing] fivefold from $200 billion to $1 trillion. So the capital markets in ASEAN have critical mass. They’re giving companies currencies asiamanufacturingnewstoday.com
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That said, the banks in each of these countries
them feel secure about it—and so we come back
are increasingly strong, and you have national
to cybersecurity.
champions [such as] CIMB Bank and Maybank
On the other hand, people think, well, because I
in Malaysia. And, of course, the Big Three [in
can do it on my device and I don’t need a branch
Singapore]—DBS Bank, United Overseas Bank,
anymore, it is less expensive. That’s flawed. These
and OCBC Bank—are expanding across ASEAN
systems are breathtakingly expensive to build:
and across Asia. Indonesia’s banks are very strong
data centers, keeping the systems up 24/7. People
and very large.
are now very intolerant of systems going down.
McKinsey: Are there unique opportunities in ASEAN for multinational banks? Michael Zink: The biggest issue that’s emerged
They want them up all the time, every day, no excuses. A system that’s available 24 hours a day with
today is cybersecurity. We’ve seen it all around
lots of bandwidth that’s totally secure is a very
the world. [These days] bank robbers don’t use
expensive system to build. You need scale. That
guns, they use laptops. They try to hack into our
will be the defining competitive advantage in our
systems. Keeping these data secure is one of our
business going forward. The ability to finance,
biggest challenges and most important priorities.
design, build, and implement those big tech
If we can build these big data networks, we can make them more secure. Scale plays to our strengths. What do we need for that? We need
systems—that’s going to separate the winners from losers. McKinsey: What about the prospect of a
the free flow of data across borders in a secure
common currency for ASEAN? Is monetary union
fashion. And that’s what we need when it comes
completely off the table?
to liberalization, not just for financial services
Michael Zink: Nobody is dreaming beyond
but for any company in services or logistics: the
their scope right now. We’re not talking about
free flow of data across borders, with strong
political union or monetary union or a single
cybersecurity around it.
currency for ASEAN. It’s simply not at that stage
Technology is a great opportunity. The devices
of evolution. It’s very focused today on the
in our hands—we sometimes take them for
commercial aspects of helping all the countries
granted. But they’re breathtakingly powerful, these
grow. Grow the economies, help small businesses
smartphones and tablets that we all carry around.
develop, create jobs for young people coming
In these big megacities that are now gumming
out of university: [the discussions are] very,
up, it’s hard to move. In Jakarta, Bangkok, or any
very practical. And that’s why ASEAN has been
big city today, traffic’s a challenge. So if you don’t
successful. It’s not only dealing with the practical
have to move the people from where they are to
but also dealing with the achievable.
your bank branch and you can deal with them
Country by country, each of these societies has
where they live, work, and play, you’ve won the
its own way of making decisions. Our approach is
battle.
to understand how it’s done. It’s most important
Can we do it? Of course. Because the devices
for us to understand how those decisions were
people hold in their hands are a mini bank branch.
made and appreciate that things are all moving
We have to build the data systems that can reach
forward.
them and give them what they need. Let them transact, let them get the information, and let 6
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McKinsey
DEVELOPMENTS
Asia Manufacturing News
November/December 2014
HANKOOK DELCAM HOLDS WORLD’S BIGGEST MEETING FOR CAM USERS Delcam’s South Korean joint venture, Hankook
continued expansion into manufacturing and
Delcam, held its 25th User Group Conference at
fabrication and beyond our roots in design,” he
the Hyundai Hotel in Kyeong-Ju on 26th and 27th
stated. “Together with Delcam, we look forward
September. The theme for this year’s meeting was
to accelerating the development of a more
‘Big Jump Up’, a reference to the large increases
comprehensive Digital Prototyping solution and
in productivity being seen by companies adopting
delivering a better manufacturing experience to
software and services from Hankook Delcam.
our customers.”
Over 1,300 attendees set a new record number for
The other presentations during the meeting
the event, reinforcing its position as the world’s
covered the latest developments across the range
largest meeting for CAM users.
of Delcam software for design, modelling for
The meeting was the first major event to be held for Korean users since the acquisition of
manufacture, machining and inspection. New technology was also described from
Delcam by Autodesk in February. The audience
Hankook Delcam, in particular developments
was, therefore, especially interested in the
in the Hankook Delcam Automation Solution
presentations from Delcam President, Clive
(HDAS) that enables innovation across the entire
Martell, and Buzz Kross, senior vice president
manufacturing process. This novel technology is
for Design, Lifecycle and Simulation products at
attracting great interest from Korean companies
Autodesk.
wishing to improve their productivity by
Mr. Martell said that the acquisition represented Delcam’s own ‘Big Jump Up’. “Autodesk brings to
automating their processes. The meeting also featured the awards ceremony
Delcam increased financial strength, unparalleled
for the winners of the Korean section of 3nd
expertise in design, and a long history of making
Global CAM Skill Competition, who have qualified
technology accessible to broad audiences.
for the World Championships to be held at
Through sharing our technology and expertise,
Delcam’s headquarters in Birmingham early next
this transaction will transform industries and
year. This competition, which was open to local
improve how the world is designed and made,” he
high school and college students, is held each
commented.
year as part of Hankook Delcam’s support for the
The significance of the deal was also emphasised by Mr. Kross. “The acquisition
development of CAM software skills to meet the needs of the country’s manufacturing industry.
of Delcam is an important step in Autodesk’s asiamanufacturingnewstoday.com
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DEVELOPMENTS
NASMYTH GROUP ATTACHES GROWING IMPORTANCE TO INDIA AS A MANUFACTURING LOCATION Founded at the end of 2003 when Chairman
Reflecting the importance of its contribution to
and CEO, Peter Smith, purchased the UK
the Group’s activities, and the growing demand
company, Bulwell Precision Engineers, Nasmyth
for its services, Nasmyth India relocated to
Group has grown to incorporate the collective
new premises in the Bangalore Millenia Centre
expertise, resources and technology of a portfolio
in the central business district of Bangalore
of specialist, customer-focused, precision
earlier this year. This is an ideal location for the
engineering and related businesses in the UK, the
company. Sometimes dubbed India’s ‘Silicon
US and India.
Valley’, Bangalore is the leading city for India’s IT
The structure of the Group means it is able to offer a wide range of integrated capabilities - design and reverse engineering, precision
industry and the hub for the country’s expanding Aerospace sector. On June 26th, Nasmyth Group held an
machining, advanced welding and assembly,
inauguration ceremony to celebrate the opening
and leading edge metal surface treatments ‚ as
of these new offices at the ITC Windsor, Bengaluru
well as the facilities to work with a wide range of
hotel where the invited guests were served lunch
materials - from aluminium, titanium, inconel to
and addressed by the Deputy High Commissioner
steels, nimonics and super alloys. The breadth
Ian Felton, Nasmyth Group’s Chairman and
of these capabilities,supported by an ongoing
CEO, Peter Smith, and Nasmyth India’s General
programme of strategic investment, also enables
Manager, Stuart Etheridge. In keeping with local
the Group to serve a diversity of markets ‚
customs, there was a formal “Deep Prajwalan”
Aerospace, Defence, Energy, Marine, Medical,
(Lighting of Lamp) ceremony.
Space and Specialist Automotive. Nasmyth Group has long recognised that,
Nasmyth India, supported by the Group, is now working closely with its customers on a number
in an increasingly globalised economy, its
of NPI (new product introduction) projects in the
long-term growth depends on having a strong
country. The company has been able to source
global presence. That’s why, in 2013, the Group
a wealth of available graduate engineers and,
established its Nasmyth India Liaison Office.
through its Indian partners, an increased machine
This facility has a key role to play in the Group’s
capacity with which to service the needs of
globalisation programme, providing a range of
aerospace customers globally.
engineering services on behalf of other Group
Talking of Nasmyth Group’s experience in India,
companies, as well as responding to the needs
Stuart Etheridge observed: “As a tier one supplier
of the region’s aerospace, energy, industrial
into the global aerospace supply chain, there are
gas turbine and related industries. In highly
requirements from the primes to expand their
competitive markets Nasmyth India provides
global footprint in to emerging economies.
its customers with the opportunity to achieve a
“Our India Supply Chain strategy is seen to
cost-effective manufacturing platform supported
be the correct approach for our customers’
by the Nasmyth Group’s proven global supply
requirements. Although positioning ourselves in
chain.
India was not an easy challenge operationally, the
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Asia Manufacturing News
November/December 2014
Nasmyth India’s General Manager, Stuart Etheridge.
benefit in having a common language alongside
attended a series of meetings and briefings at UK
legal and commercial sectors being based on UK
diplomatic and Indian Government facilities in
principles, contributed to our success through the
New Delhi and made a number of factory visits
learning curve of trading, import and export in
in Bangalore where Nick Clegg gave his keynote
India.
speech.
“We can confidently say, Nasmyth India has
This was the first UK trade delegation to
established a footprint and is ahead of the game.
India since the country’s elections in May and
With the office in Bangalore, we are able to
was viewed by the Deputy Prime Minister as
continuously improve on our communication with
an important step in forging a new special
customers in India, proving that Nasmyth Group
relationship between the two countries and
can be as responsive and proactive here as in the
opening up new business opportunities for UK
UK and USA.”
companies. In the words of Nasmyth Group’s
Shortly after the opening of the new Nasmyth
Chairman and CEO: “We were delighted to accept
India offices, Nasmyth Group was invited to join
the invitation from the Deputy Prime Minister to
the Aerospace delegation of the UKTI visit to India
join this important delegation. As our decision to
led by the UK Deputy Prime Minister, Nick Clegg.
establish Nasmyth India shows, We share Nick Clegg’s conviction that
During the course of the visit, which began officially on Monday 25th August, the delegation
the country represents a key area of future opportunity for UK businesses.” asiamanufacturingnewstoday.com
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ANALYSIS
A POCKET GUIDE TO DOING BUSINESS IN CHINA By Gordon Orr
China, a $10 trillion economy growing at 7
land, and capital is having a major impact on the
percent annually, is a never-before-seen force
behaviour of business, leading to a new focus on
reshaping our global economy. Over the past
productivity, even within state-owned enterprises.
30 years, the Chinese government has at times
Progress in bringing more private capital into
opened the door wide for foreign companies to
state-owned enterprises is slow at the national
participate in its domestic economic growth. At
level, with few scale examples, such as the $30
other times, it has kept the door firmly closed.
billion partial privatization of Sinopec’s gas
While some global leaders, such as automotive
stations under way. At the city level, much more
original-equipment manufacturers, have turned
momentum is building, with local governments
China into their single largest source of profits,
selling out of noncore activities such as hotels and
others, especially in the service sectors, have
many manufacturing businesses.
been challenged to capture a meaningful share of revenue or profits. This article summarises some of the trends
The anticorruption campaign continues aggressively throughout state-owned enterprises, and government has itself become a material
shaping the next phase of China’s economic
brake on growth. Officials and executives are
growth, which industries might benefit the most,
simply unwilling to make decisions that could
and what could potentially go wrong. It also lays
possibly be held against them later. President Xi
out what I believe it takes to build a successful,
has pursued anticorruption as a theme for more
large-scale, and profitable business in China today
than a decade; he is not going to back off.
as a foreign company.
The Chinese middle class—the people who are buying new homes, who today are buying 18
Trends shaping growth and creating new opportunities in China
million cars a year (delivering a third of the global
As the contribution of net exports and real
spend more on services—are critical. Only if they
auto industry’s profits), and who are starting to
estate to economic growth diminishes, the focus
remain confident in their personal economic future
on infrastructure and domestic consumption—as
will they continue to increase their spending and
traditional and new sources of growth for the
become a larger driver of economic growth. By
economy, respectively—rises. Whether or not
2022, more than 50 percent of urban households
the current growth of the Chinese economy is
should be in the middle class (in current US
sustainable depends on the evolution of several
dollars, that means an annual household income
trends.
of $20,000 to $40,000), an increase of more than
Government policy continues to be the critical shaping force. As the ministimulus delivered
100 million households over the coming decade. China is now more than 50 percent urban, but
in the second quarter of 2014 demonstrates,
10 million to 15 million people a year will still
the government still possesses levers to push
be moving to cities from the countryside. Rural
GDP growth rates up and down quite rapidly.
migrants already in the cities need to be better
In other ongoing government initiatives, the
integrated. City governments need to make their
“marketisation” of prices for electricity, water,
cities more livable, more efficient, and better able
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and comparison of parts and compound structures within production and quality assurance processes.
Asia Manufacturing News
November/December 2014
The devices are used for inspecting components and assemblies, production planning, to integrate their migrants. “Smart cities” inventory as is a documentation, clichéd term, but China’s cities need well aseverything for investigation and from more efficient mass transit reconstruction of accident sites to better water usage. Investment to deliver or crime scenes. They are also this will be massive, indicating how the employed to generate digital construction of China’s infrastructure is not scans of historic sites. yet complete.
With FARO, 3D measurement Many businesses are coming under a and documentation needs can be new level of cost margin pressure. fulfilled confidently. Asand a pioneer Margins of industrial state-owned and market leader in portable computer-aided enterprisesmeasurement, have fallen by a third over the FARO consistently applies theindustries they compete past four years. Often the latest advances in technology to in, from steel production to telecom-network make its industry-leading product equipment, are simply growing much more offerings more accurate, reliable, slowly. By the standards of China over the past and easy to use. 30 years, state-owned enterprises have become
The focus is on simplifying mature industries. This leads to three outcomes: workflow with tools that initiatives on productivity, empower customers, thereby diversification, and globalization. Thethe latter two are more often dramatically reducing on-site measuring time and lowering conducted on the basis that prior success in overall one costs. industry in China will automatically lead to
causing major disruptions to many sectors in China. Perhaps because consumers are still new to our traditional ways of shopping or banking (only having had modern shopping malls for a decade in many cities), consumers are very willing to switch to buying online. When the experience of going into a Chinese bank branch is so poor, it’s not surprising that consumers would rather transact online. Almost no consumer-facing business in China
can succeed without an online and offline strategy success in the next industry and country. Worldwide, approximately today. Mall owners are struggling to find a new 15,000 customers are selling operating Multinationals to Chinese consumers more than of economic model. Retailers are trying to bring often30,000 continueinstallations to perform extremely well, using FARO’stheir systems. The company’s order to their nationwide distribution chains to skills in consumer insights, branding, and global headquarters are located exert control over the price at which their products pricing to differentiate from local companies in Lake Mary, Florida, with its are sold online. Online wealth-management that, while large, are still developing world-class European head office in Stuttgart, products have been able to gather $100 billion functional Multinationals selling to Germany and itscapabilities. Asia-Pacific dollars in less than 100 days, forcing traditional government, at the other end of the spectrum, find head office in Singapore. FARO has branch locations in Japan, banks to increase rates on much of their deposit market access much more challenging. China, India, Korea, base. The impact on employment is just starting ChinaSouth is home to some of the world’s largest, Thailand, Malaysia, Vietnam, to appear, but many millions of sought-after most successful, and innovative Internet-based Canada, Mexico, United white-collar jobs will be eliminated in the next few companies. The pace at which Chinese consumers Kingdom, France, Spain, Italy, years. embracing the Internetuis at the cusp of Poland,are and The Netherlands. Joseph Arezone, Senior Vice-President, Managing Director for FARO Asia Pacific
Community Planning, Sustainable Business and Waste Minimisation Strategies www.envision-nz.com
asiamanufacturingnewstoday.com
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ANALYSIS
The risks This growth is not risk free. Perhaps most critically, Chinese consumers remain relatively
Industries with potential for faster growth in the next decade Many of the industries with the highest growth
unsophisticated. A loss of confidence as a result
potential in China over the next decade are in the
of a default in a wealth-management product, or
services sector, but not all. For example, energy
a decline in housing prices in a specific city, could
and agriculture will have segments with very rapid
easily become a nationwide contagion creating a
growth. Below is a very brief snapshot of where
vicious cycle of consumers who withdraw from
we see opportunities.
spending, thereby worsening market conditions.
E-tailing The online share of retail in China, at 8
One has to be over 40 to remember a recession in
percent in 2014, is higher than it is in the United
China.
States and is not close to reaching saturation.
Other risks to growth include geopolitics,
Increasingly, this is conducted through mobile
especially China’s relationship with Japan, where
devices. The payments system is in place, logistics
the government’s credibility depends on being
are improving, and online providers are trusted.
seen to do the right thing by the Internet classes.
Many retailers will adapt, often with far fewer
A final and rising risk is the underemployment of
physical locations. Malls will have to become
graduates. Of the seven million graduates each
destinations for services beyond retail.
year, maybe only three million find jobs that
Logistics. Modernization of supply chains is a
require a degree. The remainder discovers that
key enabler of increasing productivity in many
their aspiration of joining the middle class and
sectors in China today. Until recently, most goods
owning a home and a car is possibly out of reach
were carried by individual truck owner–operators.
permanently. They are a large, dissatisfied, and
As express parcels become a $100 billion
growing segment of society.
industry on the back of e-tailing, e-commerce companies themselves are investing billions in modern warehouses and trucks. Alibaba alone
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Asia Manufacturing News
is committed to spending billions of dollars on
November/December 2014
Wealth management. China represents more
its own logistics. Third-party carriers such as SF
than 50 percent of Asia ex-Japan growth, with
Express are rapidly becoming regional leaders on
high-net-worth assets expected to reach $16
the back of growth in China. Even in agriculture,
trillion by 2016. The more than one million
massive investment is under way in cold storage
high-net-worth individuals in China remain
and cold carriage to reduce waste and provide
generally unsophisticated as investors, seeking
higher-quality food products to China’s middle
advice on how to broaden their investment
class.
portfolio both onshore and offshore.
Education. Nearly two-thirds of registered
Entertainment. China is the second-largest
kindergartens in China are privately owned.
movie box office market in the world, despite the
Private universities are expanding. Traditional
fact that tickets cost upward of $10 and DVDs are
and online vocational learning schools are
still available for $1. In 2013, more than 1,000 new
publicly listed multibillion-dollar businesses.
theaters opened, yet admissions per capita are
Niche businesses, such as preparing children to
less than one-fifth of South Korea’s.
apply to US, UK, and Australian high schools and
IT Services. Finding the chief information officer
universities, are also flourishing. The amount
in a Chinese company is often hard, especially in
the Chinese are willing to spend on tutoring and
a state-owned enterprise. Historically regarded
support for their children is almost unlimited. As
as simply a support role for the business, CIOs
the middle class becomes wealthier, the increased
were pushed three to four levels down in the
ability to spend will drive market growth.
organization and attracted little talent (which
Healthcare. More than 1,500 new private
instead went to Internet start-ups). A typical
hospitals opened in China in 2013, a number
Chinese company spends only 2 percent of
of which are 100 percent foreign owned. The
revenue on IT versus international benchmarks of
shortcomings of the mainstream public healthcare
around 4 percent. As these companies struggle to
system in China are not likely to be overcome
bring technology into the core of their operations,
quickly. Patients are looking for solutions where
they need massive amounts of help to do so. The
both cost and quality are more certain, and private
cost of good IT talent is already soaring. Most
and foreign companies are being encouraged
Chinese companies will be unable to solve their
to deliver. There is a related boom in supplying
technology challenges for themselves.
equipment to these new facilities. Tourism. Available hotel rooms in China have
Clean energy. China already produces 60 percent of solar panels and wind turbines. Increasingly,
tripled over the last decade. Four million mainland
it is consuming this output domestically. For
Chinese visited South Korea in 2013; four million
example, 11 gigawatts was installed in large-scale
visited Thailand. China’s middle class expects to
solar farms in 2013, and this will grow an
take three to four weeks of vacation each year
additional 30 percent in 2014. China is also
and no longer accepts visiting the overcrowded,
investing heavily to exploit its shale-gas assets
overexploited traditional domestic destinations.
and develop cleaner coal technologies.
Disneyland’s opening in Shanghai in 2015 could
Agriculture. China does not feed itself
trigger a new wave of investment to create
today—certainly not with the kind of quality
higher-caliber resorts.
and value-added products that the middle class seeks—but it will be challenged to do so in the asiamanufacturingnewstoday.com
13
ANALYSIS
future. Continual food-safety crises illustrate
sees international partners as little more than a
the challenge. For many successful technology
temporary accelerator of growth.
investors, such as Legend Holdings, agriculture is
• Increasingly, China’s mind-set is that there are
the new Internet. Chinese companies are investing
fewer and fewer things to learn from foreign
in agriculture outside of China at scale, from Chile
partners. China doesn’t need the capital, it
to the Ukraine, for China. They also invest in
can hire the skills, and it has the customer
China, especially in value-added products—such
relationships, insights, and, most critically, the
as fruit and the production of frozen ready meals.
government relationships. Even state-owned enterprises now hold this mind-set.
Doing business effectively in China Often in China, the fundamental barrier to
• Simply stating that “this is how we do it in America/Germany/Japan” will not win friends.
success is less about identifying the opportunity
What one can do today is make a long-term
and more about the inability to execute the
commitment to help a Chinese joint-venture
plan more effectively than others. One’s own
partner expand internationally. This may well be
management team, the team’s relationship
at a cost to the international partner’s existing
with corporate headquarters, the role of and
business and needs to be seen as part of the
relationship with joint-venture partners—all play
total China investment.
a key role. Joint ventures have been part of doing
• Establish from the outset a clear hierarchy of
business in China for more than 30 years. In many
who interacts with whom at the joint-venture
sectors, they remain the only way to participate,
partner and with relevant government officials.
often in a mandatory minority position. But there
Chinese partners like the certainty this provides.
are a number of clear lessons:
Ensure that the committed executive shows
Establish the right strategic positioning. • If regulations require you to have a joint-venture partner and a minority position today, assume
up for board meetings and the like, and don’t delegate. Place a trusted senior colleague in China with a
it will be that way forever in the core business
commitment to have him or her be there for the
activities. From automotive to financial services,
long term.
the lesson is that it won’t change. If that model
He or she is your go-to person when things get
is not attractive today, do not invest in the hope
volatile in China, someone whose viewpoint the
that it will change.
global management team will trust, and someone
• Follow the evolution of government policy
the head of your joint-venture partner will also
and align your stated intent with such policy
learn to trust. Usually, this person will be very
as far as possible. Using the words from
strong in people development, with skills almost
government statements in your own statements communicates your commitment to China. • Be clear if you are in China for the opportunity in China, or if you are in China for the opportunity that China creates for you in the rest of the world. This can lead to a very different presence in China. Many potential joint-venture partners are highly successful and very large within China, who 14
asiamanufacturingnewstoday.com
Asia Manufacturing News
November/December 2014
overlapping with a head of HR. And he or she
even while not bringing core IP into China.
will need to be 100 percent trusted to enforce
Secondly, consider if the cost of loss of IP could
compliance and to role model required behaviors.
be contained solely in China. Again, in technology,
Typically, make this person chairman of your Asia
multinationals have aggressively and successfully
or China operations, as senior a title as possible.
sued Chinese companies outside China that
Talent acquisition and development, at all
have taken IP from multinationals in China and
levels, remains highly time consuming and
used it outside China. China is evolving fast
often frustrating for multinationals. Loyalty to an
on IP protection, with more and more Chinese
employer is often low on an individual’s priority
companies suing other Chinese companies. It
list. Turnover will likely be high and should be
is becoming increasingly likely that a Chinese
planned for.
partner will recognize the value of IP and be
• Hiring midcareer executives is increasingly
willing to protect IP developed jointly with them.
common, and in almost all industries the
A practical means of making it harder for global
available talent pool is deepening. Both Chinese
IP to leak into China is to establish a stand-alone
and global search firms have rapidly growing
IT architecture for China that has no access to
businesses that serve local and international
servers at headquarters.
companies. It is imperative to complete
China is likely to be a more volatile economy.
thorough background checks. Getting people to
Taking a through-cycle viewpoint rather than a
leave quietly in China often involves being silent
“quarterly performance versus plan” mind-set
on the cause of separation.
is key to motivating your China team and to
• At the entry level, many graduates are available.
convincing them that you are committed to China
However, many lack workplace-relevant skills,
for the long term. Indeed, downturns in China
including even those with MBA qualifications,
have proved to be attractive moments to double
which are more often bought than earned
down. When partners or governments are under
and often come with a lack of self-awareness
stress, new partnerships and licenses can become
that can lead to a mentality of entitlement.
available to foreign partners that are willing
As a result, many corporations hire and then
to step up and invest. Even after 30 years, few
weed out aggressively during the initial
multinationals adopt this mind-set.
probation period. Once on board, retention
Don’t do anything to compromise your global
of high performers often depends on a highly
brand and reputation. If you can’t do business
variable compensation structure and dismissing
the way you want to, then don’t do it at all. There
underperformers.
may be opportunities to make money in the short
• While you will likely have to work with “sons
and medium term, but shortcuts will eventually
and daughters” of government officials
be made transparent. The Chinese government
as business partners, it does not mean
will be well aware of how you are operating,
that you have to employ them. Outside of
and the anticorruption campaign is not going
some companies in financial services, few
to go away. Don’t assume that because your
international firms do.
suppliers are international companies that they are
If protecting intellectual property (IP) in China
automatically operating to the global standards
is a concern, consider it very hard if that IP needs to actually come to China. Some companies in the technology sector have been very successful,
you expect; verify that they are. *Gordon Orr is a director in McKinsey’s Shanghai office. asiamanufacturingnewstoday.com
15
CASE STUDY
PLM HELPS AUTOMAKER REDUCE PRODUCT DEVELOPMENT CYCLE BY THIRTY PERCENT Aiming high with PLM
a year; and achieve an annualized sales revenue
Founded in 1996, Beiqi Foton Motor Co., Ltd.
of ¥500 billion ... thus ranking among the world’s
(Foton) is China’s largest commercial automaker
top 10 automakers and becoming an international
and features a complete range of products.
mainstream vehicle producer.
Currently, Foton possesses more than ¥30
In implementing its strategy, Foton is capitalising
billion worth of assets, employs a workforce
on the product lifecycle management (PLM)
of nearly 40,000 people, and has a brand value
technology.
of approximately ¥42.865 billion. (¥ = RMB.) In 2012, it was the top-selling commercial vehicle manufacturer worldwide. Foton is a backbone enterprise in China’s auto
Coping with increasing amounts of data In the highly competitive automobile industry,
industry with regard to independent brands and
achieving faster time-to-market is crucial.
in-house innovation. Since its founding, Foton
This means accelerating innovation to make
has amazed the world with its rapid development
products that appeal to consumers, leading to
(at “Foton speed”), and accumulated an output
increasingly complex vehicles. The resulting
and sales of over five million vehicles, including
explosion of product data types and volume
ranking first in the international commercial
means that the classic management process is
vehicle market for two consecutive years. Today,
no longer adequate. Foton faced problems, such
Foton has ten prominent brands: Auman, AUV,
as long research and development (R&D) cycles,
Aumark, Ollin, Tunland, MP-X, Midi, SUP, View and
data errors and losses due to inconsistent data
Forland.
versioning, poor data communication between
According to the “Foton 2020” strategy, a “5+3+1” plan is now in full swing. Foton is building factories with an annual output of 100,000
departments and untimely changes and updates that seriously hindered development. “In 1998, GM took the lead globally by
vehicles per factory in five countries: Russia, India,
appointing a chief information officer (CIO) for
Brazil, Mexico and Indonesia.
product development to compile PLM strategies
The company plans to expand its market share
and promote PLM in factories all around the
in the three most developed regional markets of
world,” says Lu Qinzhu, director of the R&D
North America, the European Union and Japan/
Engineering System Section in the information
South Korea, and is building a global headquarters
technology (IT) Department at Foton Motor. “As a
as well as innovation, business management and
result, the time consumed from design to launch
operations centre in China in order to maintain its
of a new vehicle at GM was cut from 42 months
leadership in the Chinese market.
to 12 months. This case inspired us. Being inno-
By 2020, Foton plans to become an international
vation-oriented at Foton, we realized that PLM
automaker that integrates fashion, science and
was a powerful and crucial tool that would enable
technology with environmental protection and
us to focus more on research, development and
humanity; manufacture and sell four million cars
design.”
16
asiamanufacturingnewstoday.com
Asia Manufacturing News
Eliminating departmental isolation and building design experience into the system “NX, widely recognized in the mold industry, enjoys incomparable advantages in modeling,
November/December 2014
to product design, helping the company stay ahead in introducing new products to the market.
Establishing a uniform platform “Switching from disparate product development
simulation and digital machining,” Qinzhu says.
systems to an integrated, digital approach is just
“The rich experience of Siemens PLM Software in
an early step in a PLM project. Without a uniform
the auto industry, and its great understanding of
platform to manage electronic data, it would be
future trends and engineering consulting services
impossible for an enterprise to hold on,” Qinzhu
provide the kind of support Foton needs to
says. “With our enterprise-level information
pursue international development. That, plus the
planning, we have developed a clear map of
advantages embedded in NX, led us to decide to
information steps. Our next includes establishing
work with Siemens PLM Software.”
a uniform platform to manage voluminous R&D
Using NX™ software, Foton eliminated
data, and to interface with enterprise resource
information isolation between departments, and
planning (ERP), supply chain management (SCM)
incorporated engineers’ design experience into
and other systems in later stages to smooth out
the system, saving time by reducing redundant
the whole process.”
data entry. This significantly reduced training time; enabling engineers to skillfully apply the software
Foton chose Teamcenter® software, also from Siemens PLM Software, to help the company asiamanufacturingnewstoday.com
17
CASE STUDY
create a uniform solution to manage its data
“Based on the deepening application of the
generated using NX and other systems. Foton
PLM technology, Foton has realized trans-regional
has formed a knowledge base comprising
management, collaborative design and
design and analysis databases. The company
production, data sharing, and uniform business
has also established a complete R&D process,
processes and standards between its headquarters
with standardized tasks and work templates,
and branches,” says Qinzhu. “This is in addition
incorporating knowledge into the R&D process.
to the systematic management of R&D data. By
This enables more convenient sharing and better
adopting two main vertical and horizontal lines
data retrieval.
to manage product data effectively, the whole
Foton owns such prominent brands as Auman,
process – from product concept, engineering
AUV, Aumark, Ollin, Tunland, MP-X, Midi, SUP,
R&D to resources releasing – is now effectively
View and Forland. Based on the uniform auto
under control in PLM. After releasing resources,
platform, with the establishment of different
R&D data is formally distributed to downstream
departments and sites that are able to effectively
production and sales systems, reducing the
share data and collaborate, the company is now
product development cycle by 30 percent and the
more agile. This improved flexibility enables
re-work load by 20 percent.”
Foton to more quickly respond to dynamic market preferences, as well as build greater quality into its products.
Supporting better decisions “We plan to introduce project management and knowledge management systems as our next
PLM delivers results Siemens PLM Software provided Foton with
step,” says Qinzhu. “As soon as suppliers are included in the project management system, we
a complete range of computer-aided design
will be better able to control mold development
(CAD), computer-aided engineering (CAE),
and review, as well as more effectively manage
computer-aided manufacturing (CAM) and product
costs and schedules. With design navigation,
data management (PDM) solutions. The software
designers can make inquiries through the
has enabled Foton to build a comprehensive PLM
database, helping improve the output of new
platform, allowing it to realize close integration
designers.
during all stages of the product lifecycle. With Teamcenter, Foton is now effectively
“The transformation of the whole IT system to a knowledge management-based approach
managing its comprehensive product data. The
will enable us to make better decisions. With
use of Teamcenter has empowered workers to
the continuing development of Foton’s global
collaborate through the integration of upstream
business, attaining IT system support is also
and downstream systems. Qinzhu notes that this
a major goal. Finally, providing support for
leads to smooth and accurate data circulation
commercial vehicles, passenger vehicles and
in the company and shortens the product
financial systems is an important part of Foton’s
development cycle.
future. We plan to expand PLM from design to
In addition, Foton has implemented the welding process planning and simulation functions of Siemens PLM Software’s Tecnomatix® portfolio to construct a digital plant. 18
asiamanufacturingnewstoday.com
process, in both depth and breadth.”
Asia Manufacturing News
November/December 2014
asiamanufacturingnewstoday.com
19
EVENTS
INAUGURAL MANUFACTURING TRADE EVENT WELLManufacturing Myanmar 2014 concluded in
Department, Myanmar Industries Association
Yangon amid appreciative local and international
(MIA) and Myanmar Engineering Society
reception.
(MES). Together, they applauded the staging of
The newest edition to Singapore Exhibition
Manufacturing Myanmar as the ideal platform for
Services’ series manufacturing technology
Myanmar’s local manufacturing community to
events and the organiser’s first breakthrough
learn international best practices. “Manufacturing
into Myanmar, Manufacturing Myanmar 2014
Myanmar 2014 is tailored to meet the needs of
has made its mark as the only dedicated
local industries and manufacturers, which includes
manufacturing solutions trade event staged in the
good working systems and the correct technical
country that brings technologies from well-known
capabilities. The show presents viable options to
international brands as well as notable small
upgrade existing operations and processes, and
and medium sized enterprises. The trade event,
I am confident that it will bring new technologies
which concluded at the Myanmar Convention
to inspire not only our local SMEs, but the private
Centre (MCC) on Saturday 4 October 2014,
sector as a whole, helping to generate more
was well-received with over 2,200 attendees,
business opportunities. Manufacturing Myanmar
comprising special guests, trade visitors and
certainly serves as a baseline to boost the
members of the press. Aside from perusing the
development of partnerships and accelerate the
exhibits, local visitors could tap the knowledge
integration of Myanmar’s SMEs into global supply
of international manufacturers and suppliers
chains,” comments H.E. U Maung Myint, Union
on how to improve their current operations to
Minister, Ministry of Industry.
reach higher productivity. A Warm Opening
Contributing to Myanmar’s industrial
Reception The official opening ceremony of
transformation Manufacturing Myanmar 2014
Manufacturing Myanmar 2014 greeted many
provided a launch platform for companies
Myanmar’s senior Government officials, including
to promote manufacturing technology that
H.E. U Maung Myint, Union Minister, Ministry of
enables the local sector to automate operations.
Industry; H.E. U Soe Min, Minister for Ministry
TRUMPH’s TruMark 2130, Asia Masima’s CNC
of Agriculture and Livestock Breeding of Yangon
Vertical Turning Lathe Machine, YG-1’s Gold-Drills,
Regional Government; H.E. U Kyaw Soe, Minister
Cairnhill Metrology’s Surfcom Flex, and Optical
for Ministry of Forestry and Energy of Yangon
Gaging’s OGP(R) SmartScope(R) Zip Lite
Regional Government; H.E. U Than Myint,
Benchtop System are examples of the display
Minister for Ministry of Planning and Economic
of machines, test and measurement equipment,
Development of Yangon Regional Government;
cutting tools, and automation systems shown at
H.E. U Nyan Tun Oo, Minister for Ministry of
the event. These solutions are designed to help
Economic and Industry of Yangon Regional
local manufacturers achieve higher productivity,
Government; and U Zaw Maung, Minister for
raise standards of manufacturing, play a stronger
Ministry of Rakhine National Ethnic of Yangon
role in the acceleration of the country’s industrial
Regional Government. Also present at the
transformation. Exhibitors also met with
ceremony were senior officials from Ministry of
potential local agents and distributors, through
Commerce of Yangon Region, SMEs Development
their interactions with local buyers, they gained
20
asiamanufacturingnewstoday.com
Asia Manufacturing News
November/December 2014
-RECEIVED acute insights into the local manufacturing landscape and current needs. On their participation at Manufacturing Myanmar 2014, Dr. Hans-Peter Laubscher, Managing Director-Asia Pacific, TRUMPF Pte Ltd says,
Mr. Myint Oo of Royal Marine Engineering Group
“TRUMPF joins Manufacturing Myanmar
said, “The show was excellent and I was glad
2014 to create brand awareness and promote
I made the trip here. I was able to see some of
our technological capabilities in this new and
the products that I was in need of and was able
upcoming market. We are also here to look for a
to meet the sellers personally to find out more
business partner to work with in reaching out to
and negotiate a business deal. I hope that the
the local manufacturing community.
next edition will feature more exhibitors and
“I am pleased with the quality of the visitors
products that can meet our needs.” “Making an
who came to Manufacturing Myanmar 2014 and
investment to automate operations with the use
we have received strong interest in our marking
of machines and various supporting equipment is
laser system TruMark 2130 as well as our laser
certainly a stride forward in unlocking Myanmar’s
cutting and punching technology. We will return
manufacturing potential. Creating a platform for
again for the next edition of Manufacturing
the sharing of knowledge and best practices, and
Myanmar.” For Myanmar, it is very important
presenting business opportunities for the local
to cultivate a productive workforce to drive
industry, and providing international companies
the economy forward. With skills development
a gateway into the country make up the essence
and the adoption of technologies in mind, local
of what Manufacturing Myanmar is all about,”
manufacturers were able to acquire knowledge on
says Ms. Lindy Wee, Deputy Chief Executive of
global best practices in operations and technology
organiser Singapore Exhibition Services. “We
applications, and tap expertise readily shared by
are heartened by the local community’s positive
their international counterparts. Commenting on
response toward the event, and very honoured to
his visit to Manufacturing Myanmar 2014, Mr. Win
play a part in the progression and prosperity of the
Naing, Engineer at Stream Engineering Group
country’s budding manufacturing industries,” she
said, “It was definitely a fruitful trip as I got to
adds. The next edition of Manufacturing Myanmar
see many manufacturing related machineries,
will be held from 14 - 16 October 2015 at the
technologies and products from so many foreign
Myanmar Event Park, Yangon.
exhibitors all in one place. I will definitely come
For more information, please visit
back again next year.” Sharing similar sentiments,
www.manufacturingmyanmar.com. asiamanufacturingnewstoday.com
21
SUBHEADING THE CONNECTED
INDUSTRIAL ENTERPRISE - John Watts, Unlocking data to enable a Connected Enterprise is vital to toda
Information is power. Globalisation and other competitive pressures are accelerating the need for m their enterprises. Better information sharing drives better decision making, exposes process ineffici
Seamlessly and securely enabling this type of information sharing across workers in a context
process by entering the phase most appropriate for their organisation’s needs.
that is meaningful for each role – regardless if they are located at a manufacturing site or are part of the supply chain – creates a ‘Connected Enterprise’. Enabling-information innovations are burgeoning. The advances in evolutionary technologies – like the Industrial Internet of Things (IoT) and the proliferation of smarter field devices, big data and analytics, virtualisation, and mobility – are facilitating manufacturers in pursuit of the Connected Enterprise. By embracing
Achieving a Truly Connected Enterprise As operations move further into the information
these technologies, manufacturers are better
age, three components are vital to achieving a
able to harness the most underutilised asset they
truly Connected Enterprise:
have: their own data. This erstwhile intangible commodity is the key to better understanding operational performance for improved productivity, time to market, asset optimisation and quality control. The information-enabled Connected Enterprise is a more competitive enterprise. This is the
1. Standards-based Industrial EtherNet/IP™ Network Infrastructure A Connected Enterprise is not truly ‘connected’ without a common network infrastructure that facilitates communications between control systems and the enterprise network.
next industrial revolution; creating tremendous
EtherNet/IP helps enable this network
opportunities for those willing to embrace it and
convergence through the use of standard
great risks for those not preparing a strategic
Ethernet and Internet Protocol (IP) technology and
response.
facilitates the following: • Convergence of multi-discipline application such
Steps towards Becoming a Connected Enterprise
as discrete, continuous process, batch, drive,
How can manufacturers move from discussing
supervisory information, asset configuration/
and theorising their Connected Enterprise to rationalising and operationalising it? Building a Connected Enterprise involves people, decisions and processes. One question often posed is ‘how do I start on the journey
safety, motion, power, time synchronisation, diagnostics and energy management • A future-ready network design that is based on standard IT technology for increasing sustainability and reducing risk of deployment • Better asset utilisation and optimisation through
towards becoming a Connected Enterprise?’ The
a common network infrastructure — managing
answer to this can be found by understanding the
energy usage, equipment reliability and
Manufacturing Maturity Model, which is based
longevity, and expanded capacity from existing
on five stages – manufacturers may initiate the
assets
22
asiamanufacturingnewstoday.com
Asia Manufacturing News , Regional Marketing Director, Asia Pacific, Rockwell Automation
November/December 2014
ay’s manufacturers
manufacturers and industrial operators to improve how information is shared across iencies, facilitates collaboration and uncovers new competitive opportunities.
The information delivered by the network also
to reduce maintenance and energy costs. From
helps executives to plan strategically – scheduling
an operational standpoint, the cloud enables
production within their portfolio of facilities based
manufacturers to innovate ways to leverage
on performance trends, logistics patterns, market
their information – including managing remote
demands, etc.
assets with monitoring/alerting; observing process performance or energy expenditure;
2. Converting Big Data into Working Information Capital McKinsey & Company research highlights that
and collaborating with customers and supply-chain partners. IoT-enabled devices connected to a common converged network
manufacturing generates more data than any
can adjust automatically to changing operating
other sector, storing an estimated two exabytes (or
conditions and alert operators to maintenance
two quintillion bytes) of data, just in 2010 alone.
needs; therefore, avoiding costly unscheduled
Controllers, sensors and other devices generate
downtime.
data – from machinery performance and energy
• Mobility – Given most business employees
consumption to processing variables and material
have a smart mobile device, allowing
use – at every point in the production process.
plant workers and management to access manufacturing data on any tablet or smartphone promotes mobility; so all authorised personnel can tap into applications and information on-the-go.
Capturing data is fundamental, but data without
• Virtualisation – Untethering hardware from
context is not an asset. Converting data into
its operating system is increasingly being used
working information capital and putting it into
in manufacturing. This reduces dependency
context for workers requires expert guidance.
on physical servers and other hardware,
Furthermore, creating working information capital
and reduces energy costs at the plant sites.
across companies can assist manufacturers to
Virtualisation also increases machine reliability
optimise life-cycle processes, better respond to
with reduced downtime, offers lower-cost and
changing customer needs, and reduce inventory.
high-availability back-up solutions, and allows
It also can enhance work-flow management for
multiple instances of an operating system with
more demand-driven production lines and supply
independent applications to run on a single
chains.
piece of computer hardware.
There are disruptive technologies that can both capture data and share information to advance collaboration and operating efficiencies. The
3. Security With network convergence and the connection
following disruptive technologies are the most
of previously disparate systems, the attack surface
relevant to manufacturers:
increases. Therefore, security must be woven into
• Cloud Computing – Moving software
plant-floor operations – including the network
applications to an on-premise or off-site data
infrastructure, new and legacy control systems,
centre can free up a manufacturer’s IT footprint
machinery and devices – as well as across every asiamanufacturingnewstoday.com
23
SUBHEADING person, policy and procedure throughout the company. In addition, it is vital to include vendors or suppliers as part of the organisation’s security protocol, since the firm’s network security is dependent on their network security.
How Industrial IoT Can Help Manufacturers Compete Improving connectivity across the industrial enterprise’s operations delivers four significant benefits: 1. The ability to integrate information across IT
Conclusion The accelerated connection of operations technology (OT) to information technology (IT)
and control systems enables manufacturers
enables unprecedented collaboration across
to better coordinate their operations and
the business, linking processes and facilities to
communications from the plant floor to the
suppliers and customers in new ways. More and
corporation. By collecting and coordinating
more manufacturers, industrial operators and
large volumes of data and ubiquitously sharing
OEMs are taking advantage of real-time decision
it in the form of actionable information for
making as they become Connected Industrial
different contexts, employees can connect
Enterprises.
across functions – empowering them to
In a perfect world, manufacturers would be able
collaborate and make more effective data-driven
to identify up front all of the data that they want
decisions with greater agility, increased
to be mining from operations and the information
consistency and lower total cost of ownership.
that they want to deliver in reports. By doing
2. Supply-chain integration boosts
so, they would prevent retroactive changes or
communications with suppliers, whilst
refinements to the system after it is deployed.
providing greater insight into deliveries,
Though it is a goal worth striving for; keep in mind
scheduling changes, orders and other issues
the Connected Enterprise is a continuous-improve-
for optimised inventory management and faster
ment journey, so be prepared for it to continue to
time to market.
evolve.
3. A facility- and enterprise-wide view into asset performance, avoidance of unplanned shutdowns, and optimisation of maintenance resources can help plant managers to improve asset utilisation and increase production. 4. Synchronising business processes and work flow can produce the real-time and historical data needed to ensure compliance and improve sustainability metrics, and lower overall corporate risk.
24
asiamanufacturingnewstoday.com
John Watts, Regional Marketing Director, Asia Pacific is responsible for all regional marketing functions including commercial marketing, commercial engineering and product business management. John also has responsibility for sales operations and sales competency. John has 18 years of experience in automation and process control sales and marketing. Apart from his time at Rockwell Automation, John has held sales and sales management positions with Yokogawa. He joined Rockwell Automation in 2006 as Manager, Process Solutions, Asia Pacific. From 2010 he held the position of Director, Integrated Architecture for Asia Pacific. In this role he had responsibility for business management and marketing of Integrated Architecture products including PLC / PAC controllers, motion control, software, operator interface and condition monitoring. He holds a Masters in Business Administration from Melbourne Business School and a degree in Electrical and Electronic Engineering from the University of Melbourne. John is based in Singapore.
DEVELOPMENTS
Asia Manufacturing News
November/December 2014
IN-HOUSE GRINDING KEEPS TIGHT CONTROL ON QUALITY Samsung Machine Tools (SMEC) new production
with surface flatness and smoothness the prime
facility in Gimie city South Korea has the latest
considerations. Flatness and straightness of the
surface grinding technology in their large bridge
ground surface determines the final machine
type machine bed grinding machines. These
accuracy with usual values in the low micrometer
impressive machine precision grind the box
(um) range for CNC machine tools. Surface finish
slideways of the SMEC range of premium CNC
determines the smoothness in the motion of the
machine tools. Moving these large machines for
sliding components which has a direct effect of
the original Samsung factory to the new location
the traversing speed in feed and rapid motion.
took a considerable effort as each grinding
Smooth motion also effects machine tool accuracy
machine weight is over 60 tons. The machine are
with the acceleration and deceleration of axis
disassembled into smaller parts for road transport
components. If the initial start of the motion is not
then reassembled and bolted on to concrete
smooth then additional load is placed on the ball
foundations at the new factory. Once in position it
screw and jurking can occur as the ball screw load
can take up to 4 weeks to level the machines with
fluctuates at low axis traverse speed.
laser alignment.
The high level of surface grinding accuracy
With their own in house grinding capability
achieved by Samsung Machine Tools allow the
the surface grinding quality control can be kept
axis sliding components to move accurately and
to a consistant and repeatable level that can be
smoothly to provide their machine tools with a
difficult to obtain through out sourcing this work
high cutting precision and finish.
type of precision process. On large lathes and
For more information on the Samsung Machine
milling machines this grinding accuracy becomes
Tools range of precision machine tools contact
even more important as large machine tools are
Phil Robinson and Quentin Rowe at Revolution
expected to have the same accuracy as smaller
Precision Machinery
machines with less axis travel.
www.rpmcnc.co.nz
Surface grinding of the box slideways is an
Phone AKL 265 0380
Email: sales@rpmcnc.co.nz CH’CH 960 0892.
important part of machine tool manufacture
asiamanufacturingnewstoday.com
25
EVENTS
COUNTDOWN BEGINS TO LABELEXPO SOUTH CHINA
The countdown is on as Labelexpo South China prepares to return to the Pazhou Exhibition Center in Guangzhou between 3-5 December 2014. Formerly known as the South China Label Show,
Soontomax Label Material Co, UPM Raflatac,
the new look expo is set to underline its position
Weifang Donghang Graphic Technology Inc,
as the region’s largest event for the label and
Xeikon, Zhe Jiang Wei Gang Machinery Co and
package printing industry with over 150 exhibitors.
Zhongtian Machinery.
Showcasing the very latest in new printing
John Davy, divisional director of Labelexpo
technologies and materials, Labelexpo South
South China commented: “It is no wonder that we
China will also offer a live Technology Clinic and
have decided to rebrand the event as Labelexpo
conference program that have been expertly
South China following the meteoric success of
designed to keep South Chinese printers/
our first two editions. The show has very quickly
converters ahead of their competitors. Show
and convincingly become the must see event for
visitors will be able to learn about how to add
printers looking to grow their business, contacts,
value to their business, create new opportunities
expertise and success. China is the world’s largest
for clients, boost efficiency and productivity,
and fastest growing emerging market and with
reduce costs and increase profits.
nearly 60% of China’s total printing output coming
Aimed at label, packaging and general printers,
out of Hong Kong and Guangdong Province,
brand owners and label and packaging designers,
Labelexpo South China is perfectly positioned to
it is expected to attract over 5,000 visitors. The
serve the specific needs of South Chinese printers
exhibition will again feature some of the industry’s
operating in this lucrative growth sector.”
leading Chinese and international press and
Entry to the show is free and visitors can
material manufacturers with exhibitors including:
pre-register by visiting www.labelexpo-south-
Brotech, Label Source, Nuova GIDUE, OMET,
china.com.
26
asiamanufacturingnewstoday.com
Asia Manufacturing News
November/December 2014
THE BUSINESS OF NUTRACEUTICALS
Vitafoods Asia Strengthens its Position in the Nutraceutical Industry
Singapore: Vitafoods Asia, the Pan-Asian event dedicated exclusively to the nutraceutical industry, recently concluded its fourth edition on
Blackmores, Korea Yakult, Tate and Lyle, and a number of leading distributors. As the Asian nutraceutical market continues to
a high note, reinforcing its status as the definitive
gain strong interest on the international stage,
exhibition for the market.
industry players expect the region to increase in
More than 170 suppliers from all over the
dominance. Analysis by Frost & Sullivan confirms
world, including ADM, Chr. Hansen, Epax,
this, as the Asia Pacific region generated the
Huisong Pharmaceuticals and Malaysian Biotech
largest demand for the global nutraceuticals
Corporation, showcased the latest nutraceutical
market in 2013, contributing to 37% of total market
innovations in ingredients, raw materials, as well
revenue, which is valued at US$175 billion.
as functional food and drinks during the two-day event.
Chris Lee, Portfolio Director, Vitafoods, said, “The Asian nutraceutical market has performed
Held in Hong Kong’s AsiaWorld-Expo from 3
extremely well in the last decade and there is every
to 4 September 2014, Vitafoods Asia welcomed
indication, both empirical and anecdotal, that Asia
a total of 2,474 trade professionals from across
will continue to lead the global market in the years
the region, which represented an 11% increase in
ahead. The show is well poised to support the
visitor attendance. This year, a large proportion
region’s growth, and we look forward to bringing
of visitors were senior decision-makers, including
more of the industry together to help them realise
executives from companies such as Danone,
the full potential that the market possesses.” asiamanufacturingnewstoday.com
27
EVENTS
Professional and Specialised Trade Event Exhibitors at this year’s event were pleased with
Visitors echoed the exhibitors’ sentiments on how the show has continuously improved over the years, cementing its reputation as the Asian
their decision to participate, citing the show’s
hub where the finest suppliers of the nutraceutical
specialised audience, the focus on doing business,
industry gather. Frequent visitor to Vitafoods
and its level of professionalism as key benefits.
Europe, Srikanth IYENGAR, Assistant General
Some exhibiting companies selected Vitafoods
Manager – Marketing at Curatio Healthcare (I)
Asia specifically because it’s the only dedicated
Pvt. Ltd. (India), expressed, “This is our first time
platform to penetrate the Asian nutraceutical and
in Hong Kong for Vitafoods Asia and I find the
dietary supplement market. Moreover, returning
content to be rich and varied. We’ve obtained
exhibitors found the show had grown in stature,
many good contacts from the American and
not just in terms of attendance but also with
Malaysian Pavilions here, so it’s been a good trip.”
the addition of new visitor attractions and the Vitafoods Asia Conference. “We first exhibited at Vitafoods Asia last year and gained plenty of new business as a result of
Valuable Education and Development Possibilities This edition of Vitafoods Asia was a
our participation,” shared Nori Shirai, General
truly holistic platform that catered to trade
Manager, International Marketing Department
professionals of varied job functions, including
of Daiwa Pharmaceutical Co. Ltd (Japan). “Our
business owners, product developers, marketers,
experience this year is even more fruitful than
food scientists, market analysts, as well as
our last. This is a show that we will definitely
academia. Receiving high praise at this edition
keep coming back to.” And Arnaud Anandane,
of Vitafoods Asia is the inaugural Vitafoods Asia
Business Consultant of Vidya Herbs (France),
Conference and Masterclass series, two knowl-
affirmed, “If you want to do business in Asia in
edge-sharing platforms that made their debut this
the nutraceutical foods sector, you’ve got to be
year.
here. This is the right place for us to meet Asian customers from all around the region.”
28
asiamanufacturingnewstoday.com
The Vitafoods Asia Conference featured 12 on-trend yet diverse topics, including commercial,
Asia Manufacturing News
marketing, and scientific subjects. Conducted in a
November/December 2014
When asked about his thoughts on
modular format, sessions on weight management,
the FourFactors® Masterclass, Mark
functional beverages, preventative health, and
CHRISTOFERSON, President of International
active ageing were the most popular topics with
Trade and Project Development (USA), responded,
delegates, in line with the leading health issues in
“This Masterclass was excellent – it was exactly
the region.
what I needed. The Healthy Marketing Team is an
The lively conference sessions were led by
experienced company that’s working on projects
an international line-up of speakers with varied
and with brands all over the world, so I really
backgrounds and expertise, including leading
value this learning opportunity and attended
academics of renowned institutes from the region,
Vitafoods Asia this year mainly to participate in
and industry experts from Blackmores, DSM,
this session.” The popularity of this Masterclass
Euromonitor, Frost and Sullivan, Mintel, and the
was evident, with delegates hailing from various
US-China Health Care Association.
countries, including China, Korea, Indonesia,
The show is well poised to support the region’s growth.
Malaysia, Philippines, and Taiwan.
Making Connections and Creating Opportunities Vitafoods Asia aims to bridge the gap between ingredients suppliers, food manufacturers, and
Delegates and speakers both appreciated the
distributors, as well as facilitate business and
wide selection of topics and speakers, as well as
learning opportunities that ultimately inspire
the interaction that took place in each session.
new product development. As part of its efforts
Conference delegate, Marco Antonio R. DANGO,
to connect businesses, the organisers held a
Senior Manager at Unilab Consumer Health
Hosted Buyer Programme in partnership with the
(Philippines), said, “I find the content interesting
China Health Care Association, where a carefully
and informative, and there is a good mix within
selected group of exhibitors presented their
each session. The speakers were generous in
products to senior buyers from China. Malaysian
sharing their expertise and I appreciate the
exhibitors also met with these buyers in a
speakers’ diverse backgrounds. The Q&A segment
‘Malaysia meets China’ closed-door session.
was fruitful with plenty of quality discussions taking place.” Over at another part of the show floor,
Popular with attendees and providing further opportunities for business ideas included the New Products Zone and the Tasting Bar in the Finished
Masterclass sessions offered attendees a deeper
Products Pavilion. These visitor attractions help
understanding of topics key to launching products
visitors maximise their time at the show by
that use new ingredients and raw materials.
drawing their attention to the most innovative
Conducted on separate days, Lodaat Pharma
ingredients and applications available.
presented four sessions on different facets of
In that regard, Linda JEWITT, Product Director
Botanicals and Natural Extracts whilst the Healthy
of Buckets (USA), concurs, commenting that the
Marketing Team focused on the commercial
Tasting Bar helped narrow her search for suitable
aspects of growing a business in an emerging
suppliers. First-time visitor Cynthia LO, Marketing
economy.
Manager of Li Chung Shing Tong (Holdings) asiamanufacturingnewstoday.com
29
EVENTS
Limited (Hong Kong), said, “The New Products Zone is a focused showcase that allows visitors like myself to gain a better understanding of the
BUSINESS NEWS HYPERTHERM APPOINTS NEW ASIA PACIFIC REGIONAL DIRECTOR
latest trends and products in the market.” Having received critical acclaims from attendees
SINGAPORE: Hypertherm, a U.S
all around, the next edition of Vitafoods Asia looks
based manufacturer of plasma,
set to be a bigger and stronger business platform
laser, and waterjet cutting systems,
as the organisers are committed to serve the
is pleased to announce that Israel
global nutraceutical industry with this dedicated
Gonzalez has been appointed the Regional
Pan-Asian event in the years ahead.
Director for the Asia Pacific Region, which consists
The fifth edition of Vitafoods Asia is on 2 to 3
of Australia, India, Japan, Indonesia, Malaysia,
September 2015 at the AsiaWorld-Expo, Hong
New Zealand, Philippines, Singapore, South
Kong. For more information, please visit www.
Korea, Taiwan, Thailand, and Vietnam.
vitafoodsasia.com.
Israel joined Hypertherm Mexico in 2008 as a Consumable Sales Manager. In 2010, he was
About Vitafoods
promoted to lead the Mexican team, where he
The Vitafoods portfolio is a group of events
demonstrated his impressive organizational skills,
devoted to ingredients and raw materials for the
excellent knowledge of Hypertherm’s products and
nutraceutical, dietary supplement and functional
their applications, and strong team management
food and drink industries.
capabilities. Prior to joining Hypertherm, he
The portfolio includes Vitafoods Europe,
was the Customer Solutions Manager for Festo
Geneva; Vitafoods Asia, Hong Kong; Vitafoods
Pneumatic S.A. and led a team of 16 Associates,
South America, São Paulo; Vitafoods Africa,
based throughout Mexico.
Johannesburg; the soon-to-launch Vitafoods
“Over the last 6 years, Israel has proven to be a
Russia, Moscow, as well as Finished Products
competent leader and has contributed significantly
Europe, Geneva.
to the expansion of the Mexico Team,” said Pete
For more information visit www.vitafoods-events.com.
Vickers, Vice President, Hypertherm International. “With his expertise and years of experience, we are confident that Israel will bring new
About Informa
Informa Exhibitions organises over 150 business-to-business and business-to-consumer exhibitions annually, via a global network of
perspectives and a fresh approach to his new team, and take Hypertherm Asia Pacific to the next level of business success.” Israel holds a Master’s Degree in Mechanical
offices in the UK, Brazil, UAE, China, USA, Canada,
Design and Robotics from the Universidad
France and Australia. Some of Informa Exhibitions’
Nacional Autonomá de México. He will be
leading brands include Arab Health, China Beauty
responsible for the continued development of the
Expo, Monaco Yacht Show, Vitafoods, Cityscape
full spectrum of sales, service, logistics, financial
and Anti-Aging Medicine World Congress.
administration and Hypertherm’s go-to-market strategy in Asia Pacific, a rapidly emerging and strategically important market.
30
asiamanufacturingnewstoday.com
BUSINESS NEWS
Asia Manufacturing News
November/December 2014
PWC AND GOOGLE ANNOUNCE JOINT BUSINESS RELATIONSHIP
PwC and Google Inc. have announced the launch
(2) Use the combined power of PwC’s analytical
of a joint business relationship to bring new and
acumen and Google Cloud Platform to help
innovative services to companies around the
businesses make the most of technology and
world. The rapid pace of innovation in technology
information and be better equipped to compete,
has fundamentally changed how and where work
creating new services to reinvent and optimize
gets done, driving organisations to transform
operations, connect with consumers and provide
their businesses for the future. Together, PwC and
an enhanced customer experience.
Google can help that transformation happen. From Google, companies get unprecedented
(3) With the right tools and insight now driving decisions, PwC and Google will guide companies
innovation, technology platforms and Internet
seeking to break new ground in their businesses --
scale; while PwC brings deep industry experience,
not only to compete with new entrants and adapt
a broad range of business services and
to disruptive market forces -- but also to lead the
cutting-edge client insights, from strategy through
innovation themselves.
execution. Together, PwC and Google will help
“Ultimately, our collaboration is about helping
companies collaborate more effectively, better
clients to embrace their journey to the cloud,
use technology and information, and adapt to the
and transform their organizations to thrive and
disruptive forces shaping the world.
maintain relevance in a rapidly changing world,”
“For our clients, acquiring the knowledge most important to their operations, securing that information and using it optimally are critical -
said Tom Archer, PwC’s Google Strategic Alliance Leader. “Millions of companies, large and small, look to
now more than ever before,” said Mike Burwell,
Google to help them launch, build and transform
PwC’s Vice Chairman - Transformation. “PwC is
their businesses,” said Amit Singh, President,
teaming with Google to offer our joint knowledge
Google for Work. “We’re delighted to enter into
and capabilities to clients - giving them one place
a relationship with PwC -- a leading advisor for
to go, maximizing experience and assets from
businesses around the world -- to bring the best
both organizations.”
of Google to work and help companies innovate.
Together, PwC and Google will help clients by
It’s great to see PwC lead by example, accelerating
collaborating on existing solutions and developing
their own journey to the cloud that will lead
new offerings in three areas:
to enhanced collaboration, greater speed and
(1) Help companies succeed by leveraging PwC’s business insights along with Google Apps, Google’s suite of cloud-enabled collaboration
ultimately, transform their business for the digital era.” PwC has also begun to introduce Google for
and productivity tools. In doing so, we will
Work products to its own operations. PwC is
empower companies to be more productive, serve
transitioning 40,000 people in the United States
customers more efficiently and deliver a more
and 5,000 people in Australia to Google Apps,
connected employee experience.
transforming how those firms do business.
asiamanufacturingnewstoday.com
31
BUSINESS NEWS
SATO LOOKS TO YASUHIRO TANABE TO STRENGTHEN GLOBAL PRESENCE
Tokyo: SATO, a leader in barcode printing,
overseas markets. He will lead a team dedicated
labeling, and EPC/RFID solutions, announced
to business development, alliance building and
today the appointment of Mr. Yasuhiro Tanabe. Mr.
portfolio management focused on meeting the
Tanabe is tasked with facilitating SATO’s global
needs of SATO’s growing numbers of customers
expansion, and strengthening its presence in
and partners across the globe. Prior to joining SATO, Mr. Tanabe spent close to 20 years at Sony, working in Japan, Singapore, and the United States. He spearheaded the launch of digital television in North America in the late 1990s, and later moved into a regional role leading Sony’s television unit for East Asia, doubling sales by pinpointing strategic growth areas and targeting China’s burgeoning provincial cities. In 2005, Mr. Tanabe shifted gears from B2C to B2B, with an appointment to a management position and the board of directors at the Misumi Group, a Japanese manufacturer that supplies mechanical components to a range of industries including automotive, semi-conductor, medical and packaging. At Misumi he rapidly increased overseas sales and restructured the company’s mold business, leading the company to achieve the top market share globally for standardized parts. He shifted gears again in 2008, taking up an advisory role for a Tokyo-based private equity fund, where he provided strategic counsel on corporate revitalization of entities under the fund’s management.
32
asiamanufacturingnewstoday.com
BUSINESS NEWS
Asia Manufacturing News
November/December 2014
YPO: ASIAN CEO CONFIDENCE REMAINS SOLIDLY OPTIMISTIC
SINGAPORE: After reaching a three-year high in
YPO Global Pulse Confidence Index
the second quarter of the year, confidence among
The quarterly electronic survey, conducted in the
business leaders in Asia softened slightly over the
first two weeks of October, gathered answers from
third quarter. The YPO Global Pulse Confidence
2,431 chief executive officers around the world,
Index for Asia fell 1.8 points to 65.5 in the most
including 276 in Asia. Globally, the YPO Global
recent survey of CEOs. The regional reading,
Pulse Confidence Index edged down 0.8 point on
however, is firmly in optimistic territory and more
moderate declines in most regions, remaining
than 2.0 points higher than the global composite.
in optimistic territory at 63.2. Visitwww.ypo.org/
“While optimism in China and India was
globalpulse for more information about the survey
little changed versus the July survey, business
methodology and results from around the world.
sentiment suffered somewhat in other parts of
A more detailed version of this release may be
Asia, for example in Japan as the government
found atwww.ypo.org/news-media/press-releases/.
reiterated plans to further increase the consumption tax next year, as well as in Hong Kong amidst civil protests,” said Terry O’Connor,
About YPO YPO (Young Presidents’ Organisation) is a
regional chief executive officer of Courts Asia and
not-for-profit, global network of young chief
a member of YPO’s Southeast Asia regional board.
executives connected through the shared mission
“But the important thing is that on the whole,
of becoming Better Leaders Through Education
confidence levels across the region are robust,
and Idea Exchange(TM). Founded in 1950, YPO
indicating that CEOs expect economic expansion
today provides 22,000 peers and their families in
to continue.”
more than 125 countries with access to unique
The modest but broad-scale decrease in
experiences, extraordinary educational resources,
confidence erased two consecutive quarterly gains
access to alliances with leading institutions,
by the ASEAN economies, whose composite index
and participation in specialised networks to
dropped 4.6 points to 62.5. In Japan, confidence
support their business, community and personal
slipped 2.8 points to 57.1, setting it back to its
leadership. Altogether, YPO member-run
January level but still comfortably higher than
companies employ more than 15 million people
its five-year average. In China, confidence edged
around the world and generate US$6 trillion in
lower for the third consecutive quarter, with the
annual revenues. For more information, visit
index losing 0.5 point to register at a still-opti-
www.ypo.org.
mistic 62.9. Sentiment in India held steady after a post-election bump last quarter, inching down 0.6 point to a lofty 71.1. asiamanufacturingnewstoday.com
33
MANUFACTURING TECHNOLOGY
HYPERTHERM INTRODUCES CENTRICUT CONSUMABLES FOR ESAB PT-36 TORCHES Hypertherm, a U.S. based manufacturer of
Hypertherm engineers have extended their
plasma, laser, and waterjet cutting systems, has
consumable technology to competing plasma
announced new Centricut brand consumables for
brands so that owners of non-Hypertherm
use with ESAB PT-36 torches.
cutting systems can realise some of the life and
The Centricut consumables, which replace
performance benefits of genuine Hypertherm
ESAB XR consumables in the PT-36 torch,
consumables.In this case, ESAB customers can get
are guaranteed to perform as well as ESAB
outstanding cut quality and life, while reducing the
consumables. In field-testing, cut quality and
overall cost of operation.
consumable life were consistently equal to the
Centricut brand consumables, like all
OEM, delighting customers who were pleased
Hypertherm consumables, are designed with
to have a lower-priced alternative. The cost is
critical-to-function tolerances and are precision
20 to 30 percent lower, allowing customers to
manufactured by advanced machinists to deliver
save money without sacrificing cut quality or
the best quality product every time.
performance.
Hypertherm’s Centricut brand engineers
The performance is due in part to Hypertherm’s
and manufactures advanced plasma and laser
patented SilverLine electrode and CoolFlow nozzle
cutting consumables. Its product line includes
technologies. SilverLine technology features a
consumables that deliver increased value to
hybrid copper / silver weld joint that delivers
people who own most any non-Hypertherm
performance equal to a solid silver electrode for
cutting system including systems by ESAB,
a fraction of the cost. Advanced cooling features
Kjellberg, Kaliburn, and Trumpf.
reduce the operating temperature of the electrode,
All Centricut brand products are engineered
maximizing the hafnium pit depth and slowing
and manufactured to exacting standards and
its wear rate to extend electrode life. CoolFlow
incorporate the latest technological advances that
technology improves cooling to help maintain the
help to reduce operating costs, while delivering
size and shape of the nozzle orifice for longer life.
increased cut speed and quality. Centricut products include free technical support and come with same-day shipping.
34
asiamanufacturingnewstoday.com
Asia Manufacturing News
November/December 2014
PLASMA SYSTEM MAINTENANCE Proper plasma system maintenance can help prolong life and performance of system Clayton Gould, Marketing Manager, Aftersales, Hypertherm Inc. The list of items needing regular maintenance in
The other problem is when components in the machine fail, as troubleshooting and servicing can take days. This brings us to another old adage, “an ounce of prevention is worth a pound of cure.” Fortunately, it doesn’t take much to keep a plasma
your shop is likely long. It probably seems there
system up and running. A small investment of
is always something to be done. Unfortunately,
your time is often all it takes to keep your system
while most shops are great at inspecting items
in good shape. The key though is to establish a
like cranes, forklifts, and air compressors, an item
regular preventive maintenance routine.
that tends to slip through the cracks is the plasma
Cleaning and inspection
cutting system. It might be the old adage “the
Your routine should contain two components:
squeaky wheel gets the grease” proves true here.
(1) routine cleaning and inspection, and (2)
Plasma systems, at least good quality systems,
replacement of common wear items. Part one of
don’t tend to be troublesome.
your program can be divided into daily, weekly,
The systems go about the job day in and day
and monthly tasks. Let’s start with the daily tasks.
out, slicing through whatever metal is thrown at it,
There are four things you’ll want to do for every
but while your plasma system may appear to work
single day your system is turned on.
just fine, failure to properly maintain it is quietly
First, verify inlet pressure of gases in both the
impacting its performance and life. Mechanical
“test pre-flow” and “cutflow” modes by making
parts will start to wear out, causing rough machine
sure your regulator dial reaches the recommended
motion. Part tolerances will deviate. Cut quality,
PSI.
particularly at higher speeds, will suffer. It is kind of like the tires on your car. To get the
Second, inspect the air filters. You’re checking for moisture, oil, and particulates. If you see
best life and performance, you need to make sure
moisture, oil, or a lot of metal dust for example,
your tires have the right amount of air and are
you’ll need a new filter. If you only see a little dust
rotated regularly. If you don’t do those two things,
or dirt, try to lightly vacuum it off. All air filters
will your car still roll? Sure. Will the ride and gas
need eventual replacement, but if you’re going
mileage suffer? Will your tires last as long? No.
through more than your fair share, then you likely
Are you more apt to get a flat tire at the worst
have an issue with the quality of your air and
possible time? Yes. It’s the same thing with your
should check its purity.
plasma system. If you don’t take good care of it, it’s going to break down when you need it most. Like when you’re in the middle of the largest
Figure 1: Inspect the air filter daily,
plate-cutting job you’ve ever had for your most
and do a replacement every six
lucrative customer. Not only have you just let
months
down an important customer, at up to USD$200 per hour fully burdened, you’ve just cost your shop a lot of money.
Step three is to check your coolant level and condition. If the level is below the neck of the tank, asiamanufacturingnewstoday.com
35
MANUFACTURING TECHNOLOGY
add more. If the coolant looks dirty, flush out your
problem, then you’ll need to perform the specific
tank and refill it with fresh coolant.
Coolant Flow tests found in your owner’s manual.
The final daily task it to inspect your torch.
Monthly tasks include cleaning the inside of your
Hypertherm strongly recommends taking your
power supply, inspecting electrical components,
torch into an office or other clean place to do this.
and checking your ground and table-to-work
Also, wash your hands. Typically, the two items
piece connections. First, turn off the power to
requiring careful inspection are the o-ring and
your power supply, then remove the top and side
coolant tube. Remove the o-rings from the torch
panels. You’ll likely see a lot of metal dust and
and check for damage. If all looks good, apply a
other particulates that you’ll want to either blow
very small amount of lubricant to your fingertips
out or vacuum. Don’t forget to vacuum build-up
and lightly rub this lubricant onto the o-ring. The
on the fan and fins. Next, gently remove dust and
o-ring should look shiny but you should not see
particulates from your circuit boards, taking extra
any lubricant. If you do, you’ve applied too much
care not to damage them.
and should wipe some off. Replace all o-rings
Figure 3: Clean the
so they fit snugly, then inspect all threaded
inside of your power
consumables and remove any dirt that you see.
supply by blowing out
You’ll also want to inspect the water tube to make
contaminants
sure it isn’t out of round, bent, or pitted. Inspect the nozzle and electrode mating surface for
The next step, with your power still off, is to check
damage, then take a clean cloth and wipe off the
the main contactor for excessive pitting, or a
torch, both inside and outside. Use a cotton swab
blackened or rough surface. If you see any of these
if needed to clean hard to reach areas.
things, replace your contactor
Figure 2: A cotton
Third, though you should check your coolant
swab can be used to
flow once a week, you’ll want to conduct a more
clean hard to reach
thorough test each month. Typically, this test is
areas
more comprehensive and should be conducted by a trained service technician or other specially
Next up are the weekly tasks. First step, inspect
trained resource. At the same time, you’ll want to
all air hoses, coolant hoses, and torch leads.
inspect all connection points—for example where
Look for scrapes and cuts, punctures, chemical
the hose connects to the ignition console, the
spills and burns, or any kinks or bends that would
torch body, and the power supply.
restrict flow. Second, check for gas leaks by conducting
The fourth task you should do once each month is to inspect the pilot arc relay. Remove the cover,
the built-in leak and flow tests. Before doing
and inspect the contacts for excessive pitting.
this last test, make sure you are using the right
Again, if you see a lot of pitting, you’ll want to
consumables and have selected the correct
replace the relay.
plasma process for the test. Finally, check your coolant flow. If you have an auto-gas console, this can be done right from your CNC. If you have a manual gas console, go to your console to read the flow rate. If the CNC detects a 36
asiamanufacturingnewstoday.com
Next, inspect your gas line connections by spraying them with soapy water. If bubbles appear on a gas line, tighten or replace it as necessary. Lastly, inspect your ground and work lead connections. Verify that all system components
Asia Manufacturing News
November/December 2014
are individually grounded to a driven earth
www.hypertherm.com/preventivemaintenance
ground and that your work lead connection—
that offers customers the ability to download
particularly the connection at your cutting table—
a complete maintenance program from their
is clean and tight. There should be no paint or oil
system.
directly on the connection, as you need a clean metal-to-metal contact.
Like your forklift, crane and air compressor, your cutting system requires care to operate at
Replacement of common wear items
peak efficiency. Regular, ongoing maintenance is
With your routine maintenance out of the way,
the smartest and most efficient way to optimize
you’ll now want to focus on common wear items.
output, reduce unplanned downtime and minimize
Because plasma systems are precision machines
the operating costs of your cutting system. It’s an
with moving parts like torches, main contactors,
active approach as opposed to a costly reactive
relays, and such, these parts are going to wear
approach. This way, you’ll not only extend the life
out. The frequency of part replacement will vary
of consumables, but also, the life of your entire
depending on system usage, but typically you’ll
cutting machine.
want to replace items after a set number of months or arc hours. Recommendations are as follows: Every 6 months (or 500 arc hours) 1. Torch o-rings and bullet plugs 2. Air filter 3. Coolant filter Every 12 months (or 1,000 arc hours) 1. Torch main body 2. Pilot arc relay 3. Main contactor Every 2 years (or 2,000 arc hours) 1. Torch receptacle 2. Coolant pump 3. Torch leads Every 3 years (or 3,000 arc hours) 1. Check valves 2. Cooling fans 3. Coolant pump motor 4. Gas and pilot arc leads In order to make part replacement easy, some manufacturers have put together comprehensive preventive maintenance programs, along with annual replacement kits. Companies such as
Cleaning and inspection checklist Daily 1. Verify inlet pressure of gases 2. Inspect all air filters 3. Check coolant levels and condition 4. Inspect torch for leaks (o-rings and water tubes) Weekly 1. Inspect hoses and leads for cracks 2. Inspect gas fittings for leaks 3. Verify coolant flow Monthly 1. Clean inside of power supply 2. Check with main contactor 3. Conduct a more thorough coolant flow test 4. Inspect pilot arc relay 5. Inspect gas line connections 6. Inspect ground and table-to-work piece connections
Hypertherm have taken it a step further by providing this information with every system we sell and establishing a dedicated landing page asiamanufacturingnewstoday.com
37
MANUFACTURING TECHNOLOGY
VEOLIA | CBB POST SHOW & OUTLOOK INTERVIEW with Asia Manufacturing News
Spokesperson: Johnny Yu, Key Accounts Manager, Food & Beverage, China Solutions, Veolia Water Technologies
How did Veolia find China Brew Beverage 2014? China Brew China Beverage (CBB) 2014 is one of the most influential events for the Food and Beverage (F&B) industry. It is an ideal exhibition that provides a quality platform for both manufacturers and end users to meet with their clients and to exhibit new and updated technologies. We saw end-users maximising their time at CBB by learning about market information, and reaching out to vendors who can provide solutions to tackle their array of industrial problems. At CBB, we also met with many of our customers in the industry, and Veolia was able to recommend effective solutions for their process water systems and wastewater treatment needs. Additionally, Veolia hosted a technical seminar on the second day of CBB where we showcased our array of sustainable water and wastewater solutions for the brew and beverage industry. Led by Veolia’s technical experts, the seminar introduced customised solutions to meet process water, wastewater, and laboratory water requirements. Overall, it was a successful participation for Veolia as we managed to spread awareness about our solutions, meet potential clients, and reconnect with existing customers. The beverage and brew industry is booming, and demand is growing for professional water solutions providers like Veolia to help manufacturers with their water and wastewater challenges. Did new markets become available for Veolia? At present, Veolia has an established presence in various sectors, including the F&B, Power, Chemicals, Pharmaceutical, Oil & Gas, Cosmetics, and even in the Microelectronics and Photovoltaic industries. We are always on the lookout for new markets that we can lend our expertise to, and this is a constant goal that our international development teams work towards. In the past two years, Veolia has been successful in securing projects with beverage manufacturers 38
asiamanufacturingnewstoday.com
in China, as well as in Myanmar. Our activities in Myanmar have been a breakthrough for us in this emerging market. This market is slowly expanding, and we are excited to be a part of the process and to facilitate its growth with our top-of-the-line water and wastewater technologies. Where are the current challenges in wastewater treatment? Water and wastewater challenges exist across industries, and in addition to the growing water scarcity threats and increasing pressure from environmental bodies, we noticed that climate change, and water and wastewater infrastructure conditions are quickly becoming factors that manufacturers have to cope with. Separately in Asia where water is an inexpensive resource, there is less incentive for Asian manufacturers to invest in water recycling technologies as compared to manufacturers in the West. Unnecessary water wastage and regulatory differences amongst Asian countries are common water and wastewater challenges that we see in this continent. As an environmentally-conscious company, Veolia actively encourages our clients to look beyond the capital investment and instead, to consider incorporating similar technologies that can benefit their business activities and the external environment in the long run. There are many opportunities for companies who invest in water recycling activities. Recycled water can be used for irrigation purposes, truck washing, cooling towers, and even for washing manufacturers’ warehouses. Companies who embrace these types of water recycling efforts will be able to reduce fresh water demands and achieve cost savings. How wide is Veolia’s reach in Asia to deal with wastewater challenges? As a leading provider of water and wastewater solutions, Veolia possesses over 30 years of experience operating in Asia. We are capable of providing sustainable solutions for our long-time
THE INTERVIEW customers and potential clients across the different industries that Veolia serves. We are heavily invested in the Asian market and have local offices set up in several countries, including Singapore, Malaysia, China, Indonesia, and Thailand. When required, Veolia goes the extra mile by stationing qualified engineers and service teams onsite to provide on-going support to clients. Over at Veolia, we regularly invest in research and development (R&D) activities and this has helped us retain our competitive edge as we continuously ensure that we are well-equipped to tackle water and wastewater challenges in Asia. Can we have some confidence in these problems being fixed? Can you share with Asia Manufacturing News your success stories? Veolia is an established brand name in the water and environmental industry. Our mission statement, Resourcing the World, is a reflection of our commitment to supporting companies in their business activities, while adopting an external perspective on the environment and zooming-in on social implications.
Asia Manufacturing News
November/December 2014
Aside from our numerous references, our technologies are also world-class. To-date, Veolia’s Actiflo® solution has over 900 references globally and we continue to work hard to develop solutions that will meet our clients’ expectations. This year, Veolia has had much success in the F&B industries, and we had several opportunities to work with global beverage manufacturers. Besides these successes, Veolia also had valuable opportunities to support reputable manufacturers in the chemicals and power industries. Most recently, it was announced that Veolia would be working with 1 Malaysia Development Board (1MDB) for the highly anticipated Tun Razak Exchange (TRX) Project in Kuala Lumpur, Malaysia. Contracted to implement a wastewater treatment plant, Veolia is also responsible for recovering at least 80% of generated sewage every year that will reduce site-wide fresh water demand by more than 50%. We get a rich sense of fulfilment whenever we are able to effectively integrate our technologies to help clients tackle their challenges. Veolia had a great ride in 2014, and we look forward to more successes in 2015.
DONGBU DAEWOO ELECTRONICS SELECTS SIEMENS TO DEPLOY NEW PLM SOFTWARE South Korea: Dongbu Daewoo Electronics, a consumer electronics manufacturer in Korea, has selected Siemens’ product lifecycle management
access information instantly for informed decision making. Teamcenter will also help the company increase
(PLM) business to deploy a new PLM system
productivity and reduce product development
based on its Teamcenter software.
costs by managing all active files, such as 3D and
Siemens was selected for its understanding of Dongbu Daewoo Electronics’ PLM objectives and business vision. The new system is expected to
2D product data and other general documents, more effectively. Teamcenter received high scores in the
improve the manufacturer’s R&D process, increase
evaluation conducted by Dongbu Daewoo
product quality, reduce costs and enhance overall
Electronics for its rapid deployment and excellent
productivity throughout product development.
performance. It was also evaluated on its superior
Dongbu Daewoo Electronics will use Teamcenter
capabilities for project management, product
as the foundation of its new PLM platform. The
information integration and technological
company expects to improve its project-based
document management. Teamcenter is the world’s
R&D process management and design quality with
most widely used digital lifecycle management
a more structured system that makes it easy to
software. asiamanufacturingnewstoday.com
39
Editorial Calendar 2015
Deadline for all copy: 20th of the month prior.
January
February March -‐ April February
May -‐ June Additive Composites Manufacturing
CAD CAM
Advanced Materials
3D Manufacturing
CNC Tools
Plastics
Workshop Tools
Plastics
CNC Tools
Lean
Lean
Lean
Lean Tools
Lean
Supply Chain
Warehousing
Transport
Packaging
Materials Handling
Marine
Marine
Mining
Marine
Marine
Metal Castings
Agricultural Manufacturing
Metal Casting
Export Success
Food Processing
Fabrication
Lubricants
√
Food Manufacturing
√
√
√
Management
Finance
Patents
√
Insurance
Pollution Control
Remanufacturing
Automation & Control
Preventative Maintenance
Effluent Treatment
Indu
4th Asia Manufacturing Supply Chain Summit,
18-‐19 February, Mumbai
Wind Power Asia, Beijing
IoT 8-‐9 April, Singapore
Aviation
Contr
Plan
En T
Software
Recruitment
Smart Manufacturing
Education
Training
emerging technologies
IN ALL ISSUES: The Future of Manufacturing
Asia
Emerging Markets
Global Markets
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Ind
Food
M
Develop
Robotics
Control & Automation Developments Opinion People The Institutions Export Success
W M
South America
ASIA MANUFACTURING NEWS
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e
July -‐ August September -‐ October Additive Software Sensors CAD CAM Nano Technology Manufacturing
Nov -‐December 3D Printing
Workshop Maintenance
Welding Equipment
Robotics
Contract Manufacturing
CNC Tools
Contract Manufacturing
Lean
Lean Software
Lean
Lean
Lean
Lean
Transport
Packaging
Logistics
Materials Handling
Mining
Marine
Mining
Marine
Marine
Marine
nvironmental Technology
Energy
Industrial Motors
Bearings
Environmental Technpology
Maintenance
dustrial Safety
Aviation
Fabrication
Forestry
Maintenance Conf.
Agricultural Manufacturing
√
√
√
√
√
Intellectual Property
√
Commercial Property
√
Investment
Adhesives
Automation
Preventative Maintenance
Industrial Coatings
Manufacturing
Management
ustrial Coatings
Safety & Security , Asia 19-‐21 Aug.
I.C.S. Summit, 20-‐22 Oct with JEC Asia
Oil & Gas Technology, Ind.
AMN
Succeed
rol Engineering Smart Manufacturing
Software
Recruitment
Aviation Training
Recruitment
emerging technologies
Europe
Australia
China
Japan
Australia
Emerging Markets
41
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ASIA MANUFACTURING NEWS • FEBRUARY 2014
Better Business Throughout Asia www.asiamanufacturingnewstoday.com
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