www.industry20.com
A 99 MEDIA PUBLICATION
VOLUME 09
ISSUE 10
JUNE 2010 VOL 09 ISSUE 10
T E C H N O LO GY M A N AG E M E N T FO R D E C I S I O N - M A K E R S
2.0
JUNE 2010
PRICE RS 100
CoNvErtiNg
INDUSTRY 2.0 - TECHNOLOGY MANAGEMENT FOR DECISION MAKERS
IdEAS into PRoduCTS Rapid Prototyping Technologies Significantly Cut Product Design Cycle Times
RS 100
MATERIALS New metal coating technology helps in product authentication
INNovATIoN Effective service management leads to higher profitability
MAINTENANCE Synthetic lubricants deliver a host of operational benefits
s, MIS,
sharma
editorial Vol. 09 | Issue 10 | june 2010
Managing Director: Dr Pramath Raj sinha Printer & Publisher: Kanak Ghosh
UsinG DesIGn As a LeveR FoR suCCess
Editorial Group Editor: R Giridhar Assistant Editor: P K Chatterjee Sub-Editor: Reshmi Menon dEsign Sr. Creative Director: jayan K narayanan Art Director: Binesh sreedharan Associate Art Director: Anil VK Manager Design: Chander shekhar Sr. Visualisers: PC Anoop, santosh Kushwaha Sr. Designers: TR Prasanth & Anil T Chief Designer: n V Baiju Photographer: jiten Gandhi brand managEmEnt General Manager: nabjeet Ganguli salEs & markEting VP Sales & Marketing: naveen Chand singh (09971794688) National Manager-Events & Special Projects: Mahantesh Godi (09880436623) National Manager Online: nitin Walia (09811772466) Assistant Brand Manager: Arpita Ganguli GM South: Vinodh Kaliappan(09740714817) GM North: Pranav saran(09312685289) GM West: sachin n Mhashilkar(09920348755) Coimbatore: D K Karthikeyan (09843024566) Kolkata: jayanta Bhattacharya (09331829284) Production & logistics Sr. GM Operations: shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP singh, Mohamed Ansari, shashi shekhar singh officE addrEss nine Dot nine Interactive Pvt ltd C/o KPT House, Plot 41/13, sector 30 Vashi (near sanpada Railway station), navi Mumbai 400703 For any information, write to info@industry20.com For subscription details, write to subscribe@industry20.com For sales and advertising enquiries, write to advertise@industry20.com Printed and published by Kanak Ghosh for nine Dot nine Interactive Pvt ltd C/o KPT House, Plot 41/13, sector 30 Vashi (near sanpada Railway station) navi Mumbai 400703 Editor: Anuradha Das Mathur C/o KPT House, Plot 41/13, sector 30 Vashi (near sanpada Railway station) navi Mumbai 400703 Printed at silverpoint Press Pvt. ltd, D 107, TTC Industrial Area, nerul, navi Mumbai 400706.
www.industry20.com
R Giridhar editor@industry20.com
I
t is a little known fact that India exported $8.3 billion of engineering research and development (eR&D) services in 2009. Contrary to general perception, almost one-half of these revenues were realized from highly complex activities like product design, prototyping, tooling, program management, verification and validation, middleware development and product styling. overseas companies are increasingly turning to Indian partners to design and develop products from first principles (frugal engineering) to give them an edge over competition. But, companies are turning to India not just for the cost advantages, but also to achieve flexible resource capacity (especially in industries with cyclical engineering workloads and short product life cycles), reduce time-tomarket, and develop innovative offerings for local markets. The latest nAssCoM-Booz research study forecasts that India’s eR&D services industry could reach $40 to 45 billion in size by year 2020, with the domestic market accounting for 10 to 15 per cent of the total. Telecom, automotive, aerospace, infrastructure engineering, pharmaceuticals, consumer electronics, computing, medical devices and energy will be the principal drivers of this revolution. It is important for engineering and manufacturing leaders in India to understand the impact of this growth in outsourcing on the Indian manufacturing sector. Indian companies have typically maintained eR&D as an in-house activity, with less than 10 per cent of organizations using outsourced service providers.
industry 2.0
With more and more Indian companies beginning to cater to the global market and needs of an increasingly sophisticated Indian consumer, the scope and complexity of engineering design and manufacturing will increase significantly. Companies will need to turn to third-party service providers to provide the flexible capacity, understand and implement new technologies, and deploy global best practices. The big challenge will be to create the internal processes and governance systems to manage this key activity effectively and efficiently. The growing global market for eR&D is throwing up new business opportunities for companies that have well developed captive R&D units. organizations, which have expertise and experience in creating and integrating intellectual capital, making prototypes and providing cost-effective manufacturing, can offer vertical-centric solutions to customers as a new business line. They can also help customers leverage their existing collaboration infrastructure and supplier ecosystems to enable them quickly capitalize on market opportunities without the associated investment risks. The challenge will be to create the processes that enable co-creation, collaboration and cooperation. even while eR&D services have the potential to significantly alter the Indian manufacturing industry, the biggest impact will be on people. scarce eR&D talent will be in high demand, and our educational system will need to gear up to re-skill and up-skill the workforce. There will be short-term pains and shortages, but being prepared will help.
- technology management for decision-makers | june 2010
1
contents opinion 15 Focusing on Servicing Segment Providing better service support is the key mantra of success for automation suppliers.
16 Output-based Compensation Systems Needed Researchers find that removal of sales quotas enhance profits in many cases.
50
A new technology enables manufacturers notice deterioration of surface coatings fast.
Picture Courtesy: www.zcorporation.com
34
materials & processes 28 Electroless Nickel Coatings
30 Painting a Bright Future The Indian building paints industry gears up to beat global competition.
34 The Future is Synthetic Synthetic lubricants are donning the new role of increasing equipment productivity.
information technology 42 Staying Ahead of Competition BI tools are now addressing unstructured data too.
46 Tuning up Business Operations BI systems help identify hidden insights to optimize business processes.
management & strategy 50 Innovation through Mechatronic Product Lifecycle Management
18
A systems-level approach to mechatronics product development provides an understanding of the product as a whole.
cover story 18 Speeding the Conversion of Ideas into Products
in conversation
Cover Picture courtesy: www.freedomblogging.com
Rapid prototyping industry embarks on a new technology, viz., additive manufacturing, which reduces material wastage and enhances environment friendliness.
Strong service strategies go a long way in improving the financial performance of a manufacturing company.
departments 01 Editorial 04 Industry Update 12 Technology Update
26
38
HARSHAWARDHAN HONMODE Head, Construction Industry Centre, 3M India
2
54 Service Management for Addressing Current Challenges
june 2010 | industry 2.0
M PREM KUMAR Group MD & CEO Uniworld Logistics
- technology management for decision-makers
40 VINEET MEHROTRA Director - Sales (FMCG) CHEP India
14 Market Dynamics 14 Advertiser Index 58 Product Update
www.industry20.com
industry update thermax, Lambion energy enter Pact
event update aCMee 2010
The event will showcase latest innovations, products and services in automobile and mechanical engineering industries. Venue: Chennai Trade Centre, Chennai Tel: +91-44-26258619 E-mail: info@acmee.in Date: 17 June to Website: www.acmee.in
21 June 2010
Hemant Mohgaonkar (second from left), Executive Vice President, Thermax with Axel Lambion (second from right), Managing Director, Lambion Energy Solutions, after signing the technology transfer license agreement.
T
hermax Limited has signed a technology transfer license agreement with Germanybased Lambion Energy Solutions, a company with expertise in converting waste to energy. The technology transfer will provide Thermax with high efficiency combustion systems for using biomass, high in moisture content, for energy generation. They will be integrated in its boilers and heaters with heat output ranging from 4 MW to 30 MW. As per the licensing
agreement, valid for a period of five years, a team from Thermax will work with Lambion to absorb and deploy this technology. Thermax will hold an exclusive license to market heating systems, equipped with the new technology in India and SAARC countries, South East Asia, Middle East and Africa. Pune-based Thermax Limited offers solutions in the areas of heating, cooling, captive power, water and waste management, air pollution control and chemicals.
Solarcon India 2010
The three-day industry exhibition and conference is focused on the central theme of implementing the National Solar Mission announced by the Government of India. Venue: Hyderabad International Convention Centre, Hyderabad Tel: +91-80-40407103 Date: E-mail: solarconindia@semi.org 28 July to Website: www.solarconindia.org 30 July 2010
SMe expo - Logistics & Material Handling 2010
The event will showcase the latest trends in the logistics/materials handling sector. Venue: Chennai Trade Centre, Chennai Tel: +91-22-28763111 E-mail: info@inis-enterprises.com Website: www.sme-expo.com/ Date: logistics09/index.htm 19 august to
21 august 2010
Manufacturing Leads Growth In March
T
he industrial output has recorded double-digit expansion for the sixth straight month as it grew 13.5 per cent in March, though the growth is less as compared to that witnessed in February (15.1 per cent) and in January (16 per cent). The manufacturing sector has again taken the lead with output of 14.3 per cent following a strong performance by the consumer durables and capital goods segments. In February too, it was the manufacturing sector, which led the industrial growth. According to the estimates released by the
4
june 2010 | industry 2.0
CSO in the Ministry of Statistics and Programme Implementation, among the manufacturing sectors, the consumer durables segment recorded 32 per cent growth while the capital goods surged 27.4 per cent. The mining output increased by 11 per cent and electricity by 7.7 per cent in March. As per the data released, 14 out of the 17 industrial groups showed year-on-year growth in March. The trend is likely to continue and it is believed that the industrial growth will not fall below double-digit levels for the remaining fiscal.
- technology management for decision-makers
Pune Machine tools Show 2010
The event will showcase the latest trends, technologies, products and services in the machine tools and the manufacturing industry. Venue: Autocluster Exhibition Centre, Chinchwad, Pune Tel: +91-79-26851511 E-mail: kmg@kmgindia.com Date: Website: www.kmgindia.com 26 august to
29 august 2010
Rajkot Machinne tools Show 2010
The event will showcase engineering, machine tools, automation and automotive technology. Venue: Race Course Ground, Rajkot, Gujarat Tel: +91-79-26851511 Date: E-mail: kmg@kmgindia.com 24 November to Website: www.kmgindia.com
28 November 2010
www.industry20.com
ZRBADHD00101R_DHL_OneOneOne_India_Industry 2.0_210wx280hHR.pdf
5/6/10
12:30:47 PM
ONE COMPANY. ONE CURRENCY. ONE INVOICE. ONE LESS THING TO WORRY ABOUT. C
M
Y
CM
MY
CY
CMY
K
With DHL IMPORT EXPRESS WORLDWIDE, it’s simple. Importing usually means lots of regulations, middlemen, paperwork and so many other details. Why not rely on DHL IMPORT EXPRESS WORLDWIDE to handle your imports? One company door-to-door. One competitive price. One invoice in one currency. That means fast delivery without excuses, hidden costs or worry wrinkles. Sign up on www.choose.dhl.com/india to start saving today. Or simply call on our helpline numbers 1800 111 345/30 300 345
GET 10% OFF ON YOUR FIRST IMPORT SHIPMENT* Sign up on www.choose.dhl.com/india or call up to register on 1800 111 345/30 300 345 and start shipping with DHL IMPORT EXPRESS WORLDWIDE before 31 August 2010 and you’ll save up to 10% on your first import shipment.
*Terms & Conditions for the offer can be found on www.choose.dhl.com/india
industry update SeMI Releases Best Practices For Solar FIts
Tiana To Work With Mitsubishi
T (L-R): Dr J Gururaja, Honorary Executive President, Renewable Energy Advocacy Forum; K Balasubramanya, CEO, Tata BP Solar & Chair SEMI India PV Advisory Committee and Sathya Prasad, President, SEMI India, during the release of the white paper on best practices for solar feed-in-tariffs.
S
emiconductor Equipment Materials International (SEMI) India had recently organized a panel discussion in Bangalore to discuss its public policy principles on Feed-In Tariffs (FITs) and their relevance to the Jawaharlal Nehru National Solar Mission (JNNSM). The event also saw the release of a SEMI/PV Group white paper on policy principles and recommended global best practices for solar FITs, titled ‘Advancing a sustainable Solar Future’. The focus of the white paper is on best practices that would enhance FITs as a mechanism to advance solar energy in markets. FIT is currently in practice in
over 30 countries and has been present for over 20 years in mature PV markets. The best practices and characteristics of FITs outlined in the white paper include support for technology differentiation, setting of generation cost-based rates, fair purchase and interconnection requirements, use of fixed price and long term payments and the use of predictable incentive declines. Sathya Prasad, President, SEMI India, said, “With this landmark policy framework in place and the key role envisaged for solar in India’s energy future, the focus must now be to ensure the successful implementation of the mission.”
Lanxess Signs MoU With ICt
S
pecialty chemicals company Lanxess India has entered into a technical collaboration with Mumbai-based Institute of Chemical Technology (ICT) for industrial research and scientific projects. The two parties have signed a Memorandum of Understanding for the same. As per the MoU, ICT would take up projects from Lanxess involving process improvement of existing production lines, process development of new products, equipment design and devel-
6
june 2010 | industry 2.0
opment of catalysts. Dr Joerg Strassburger, Managing Director and Country Representative, Lanxess India, said, “We are very excited to collaborate with a renowned institute like ICT in the space of chemical technology. This is a first-of-its-kind collaboration for us.” Professor G D Yadav, Director, ICT Mumbai, said, “We are convinced that we will substantially contribute to the further growth and success of Lanxess in India.”
- technology management for decision-makers
he Government of India has accorded an in-principle approval to Pune-based Tiana Group to set up 90 power projects across the country, in hydel, thermal, solar, wind and nuclear power segments. The company is also planning to collaborate with Japanese major, Mitsubishi to set up, operate and maintain these power plants. Tiana and Mitsubishi will work together in areas such as infrastructure development, including construction of roads bridges and houses, automotives, airlines, railways, shipping, cement, oil and gas, banking and financial services and electronics. The two groups are expected to sign a Memorandum of Understanding (MoU) in Pune. After the signing of the MoU, the two firms will sign detailed contracts in Japan.
Sepco III Joins Hands With Gemac energy
C
hina-based Shangdong Electric Power Company-III (SEPCO-III) has joined hands with Tamil Nadubased Gemac Energy to set up a 1,320 MW power project in Tamil Nadu and to jointly execute engineering, procurement and construction (EPC) contracts for the Indian power industry. The two companies are planning to establish a joint venture company shortly for carrying out the EPC projects. The companies have already bagged three EPC contracts - two in Gujarat and one in Tamil Nadu. Gujarat-based Urok group is establishing a 1,320 MW power project for about Rs 8,000 crore and the Kaneria group of Gujarat is setting up a gas-based project (two units of 250 MW each), for which Gemac-Sepco-III has been chosen as the EPC contractor. The third contract is for building a 2 x 135 MW CFBC-technology based power project in Tamil Nadu.
www.industry20.com
industry update Urastun Introduces two Mobile Carriers
Reliance, Sibur To Set Up JV
R Kamal Nath (L), Minister for Roads & Highways and Rahul Marwah, MD, Urastun Group at the launch of mobile carriers.
U
rastun Metal Industries has introduced one tonne mobile compact carriers, Vector and Odo in the Indian Market. The small pick-and-carry crane Vector is suitable for material handling, whereas Odo is a small fork lift with a capacity to handle loads up to 1,000 kg. The vehicles support multiple applications and is suitable for small, medium and large industries, organizations and institutions. Speaking at the unveiling ceremony, Kamal Nath, Union
Cabinet Minister for Road Transport and Highways, said, “The utility vehicle market in India is growing rapidly as a market.” Rahul Marwah, Managing Director, Urastun Group, said, “These two vehicles, also called as Nano of utility vehicle industry are another gift to the material handling industry from India.” Urastun is a manufacturer of sheet metal components and assemblies. The company serves the automobile, electrical and white-goods industries.
LaPP Implements Lean Methodology
L
ogy, is expected to help APP India, a enterprises to generate wholly-owned subproducts and services sidiary of Germanfor the customers within based Lapp Group, has shortest time. The sysdecided to implement tem would perform by lean methodology across eliminating redundant its operations in India, as activities involved in a part of the global initiamanufacturing and tive taken by the parent company. The move is Srinivas P Kamisetty, MD, LAPP support functions. The company is expecting to with an aim to enhance India, at the launch of LOS. witness upto 30 per cent efficiency of operations reduction in overall inventory and a in all its manufacturing plants and substantial reduction in overall operatsales organisations. ing expenses, following the implemenReferred to as the ‘Lapp Operation tation of LOS. System’ (LOS), the lean methodol-
8
june 2010 | industry 2.0
- technology management for decision-makers
eliance Industries (RIL) has tied up with Russian petrochemical company, Sibur, to set up a joint venture (JV) in India to produce butyl rubber at RIL’s petrochemical site in Jamnagar. According to the Memorandum of Understanding (MoU), signed by the two companies, Sibur will provide proprietary technology for butyl rubber polymerisation and its finishing, while RIL will supply monomers and provide the JV with infrastructure and utilities. “Reliance is committed to serving the Indian rubber industry. This industry is growing rapidly on the back of automobile demand in India and the sub-continents,” a RIL spokesperson said. “Rubber consumption in Asia has shown strong growth in recent years, triggered by increased volumes of tyre production,” said Dmitry Konov, President, Sibur. Sibur operates across the entire value chain from gas processing to the production of monomers and plastics.
Nalco Plans R&D Centre In Orissa
A
luminium company Nalco is planning to establish a research and technology centre in Orissa by the middle of 2012 to help boost the growth of aluminium mining in the country. The company has acquired 18 acres of land at Gothapatna to build the new centre. A total investment of Rs 88 crore has been earmarked for the first phase of the project. The proposed centre would work on alumina, aluminium and bauxite, following which other fields will be included. The company has already commenced work comprising 15 collaborative research and development (R&D) projects with different research institutes.
www.industry20.com
industry update Degrémont Sets Up Water treatment Plant basis to deliver a minimum of 74 MLD treated water. Degrémont has chosen a technology comprising of sludge blanket pulsator-type clarifiers and rapid sand gravity filters of Aquazur-V type in the plant. The fully automatic SCADA-enabled plant is expected to ensure minimum loss of water and efficient use of The new plant is designed to process 76 MLD of power in the plant. The project has raw water on a 24-hour basis. been sponsored by Japan International Cooperation Agency (JICA). egrémont India recently inauguThe project has been executed by rated its new water treatment Degremont for Kerala Water Authorplant at Aruvikkara, Thiruvanaity. Degrémont India is a joint venture nthapuram. The new plant is designed between Degremont, France and Anand to process 76 MLD of raw water from Automotive Group. the Aruvikkara reservoir on a 24 hours
D
Corus Builds Green Plant
C
orus, a subsidiary of Tata Steel, has set up a new plant at Port Talbot steelworks, which would reduce the site’s carbon dioxide emissions by about 2,40,000 tonnes per year. The facility, built at a total investment of £60 million, will reduce carbon dioxide emissions by 3 per cent annually. The project will recover gas from the basic oxygen steelmaking plant and reuse it elsewhere in the steelworks.
Besides, the plant is also expected to reduce the emission of dust (known as PM10s) and halve the Port Talbot works’ external requirement for natural gas. Speaking at the launch, Carwyn Jones, the First Minister of Wales, said, “This project is all about protecting the environment, but moreover it represents a massive boost to the Welsh economy, and a real vote of confidence by Tata in steelmaking in Wales.”
allison Forms Multi-purpose Operations Unit
A
llison Transmission has set up a new 2,03,000 square foot multipurpose operations facility on the outskirts of Chennai. The new facility is expected to help the company expand its global footprint as well as its presence in India. The company is also aiming to meet its increasing customers’ demand from Indian OEM’s for additional on- and off-highway vehicle applications. Lawrence E Dewey, Chairman and CEO,
10
june 2010 | industry 2.0
Allison Transmission, said, “In India, we see a transportation industry that continues to develop, embraces the latest technology and a country that is upgrading its transportation system in all facets. The future here is very bright.” The facility will manufacture vehicular drive train components and will also serve as the regional headquarters of Allison Transmission India, housing its executive and regional sales offices.
- technology management for decision-makers
Kemrock Opens Carbon Fibre Plant
K
emrock Industries and Exports has set up a new carbon fibre manufacturing facility to produce light weight material for use in sectors such as aerospace and infrastructure. Believed to be the first-of-its-kind in India, the plant was inaugurated by Former President A P J Abdul Kalam, at the company’s premises at Vadodara in Gujarat. The facility, built at a cost of Rs 250 crore, will commence manufacture of carbon fibre, under technology transfer from the National Aerospace Laboratory (NAL). NAL, a constituent of the Council of Scientific and Industrial Research (CSIR), will get upto five per cent of the turnover of this facility as royalty for the next seven years. NAL had developed the ultra-light material for the Light Combat Aircraft (LCA), developed by Hindustan Aeronautics Limited (HAL), using 45 per cent carbon fibre in its airframe. The new plant’s 400 tonne per annum output will primarily serve the domestic aerospace needs, including that of Indian Space Research Organisation (ISRO) and HAL. Kemrock is planning to supply 1,500 tonnes of carbon fibre to the strategic sector over the next four years. It will also manufacture carbon fibre composites and prepegs for advanced composites applications, which would meet the demands of defence, aerospace, wind energy, transportation and infrastructure sectors. The second phase of the carbon fibre facility, with an additional 400 tonnes capacity per annum, will be commissioned within the next four months.
Corrigendum In the April-May 2010 issue of Industry 2.0, there was an error in the name of Head – Drive Technologies, Industry Sector, Siemens (page 26 – Manufacturing Technology). His name should be read as J K Verma, Head – Drive Technologies, Industry Sector, Siemens. - Ed
www.industry20.com
technology update Controlling Electronic Devices With Fingers
T
he Fraunhofer Institute for Silicate Research ISC in Würzburg is co-ordinating a 2.2 million euro funded EU project, titled, 3Plast (‘Printable pyroelectrical and piezoelectrical large area sensor technology). The 3Plast research consortium is developing special sensors that can be printed onto plastic film and affixed to objects, which would facilitate control of electronic devices by just pointing a finger. “The sensor consists of pyroelectrical and piezoelectrical polymers, which can be processed in high volumes by screen printing. The sensor is combined with an organic transistor, which strengthens the sensor signal. It is strongest where
The sensor recognizes the finger’s heat signal without being touched. the finger is,” said Gerhard Domann, Project In-charge. The production of these polymer sensors, however, poses a number of challenges. For example, to produce
Neural Networks For Zero-defect Production
R
esearchers at the Fraunhofer Institute for Manufacturing and Advanced Materials (IFAM) have developed a new method of using neural networks to achieve zero-defect production in the area of metal powder injection moulding. The aim of the research is that, at any time during the moulding process, the system should be able to monitor all parameters, such as weight, pressure and temperature. “In this way, errors, dimensional inaccuracies and defects such as cracks, warps or cavities can be detected online,” said Dr Thomas Hartwig, Project Manager, IFAM. “This will allow the manufacturer to respond immediately by changing the relevant settings. In the long run, the IFAM researchers inspecting system can, if required, even components produced using be programmed to alter the parameters fully automatically,” he metal injection moulding. added. The neural network has been developed for metal injection moulding in a joint effort by IFAM engineers and Algorithmica Technologies. “Our goal with neural networks is to reduce reject rates by at least 50 per cent,” said Hartwig. “The other advantage is that they help make quality checks superfluous and could also be deployed in other types of series production such as die-casting in the light-metal industry,” he added.
12
june 2010 | industry 2.0
- technology management for decision-makers
printable transistors, the insulation materials have to be very thin. Experts at the ISC have succeeded in producing an insulator, which is only 100 nanometers thick. The first sensors have already been printed onto film. The research scientists are currently working on optimized transistors, which can amplify rapid changes in temperature and pressure. “By providing everyday objects with information about their environment—for example whether a person is approaching—by means of pressure and temperature sensors, we can create and market new devices that can be controlled just by pointing a finger,” noted Domann.
Simulation To Avoid Component Defects
R
esearch scientists at the Fraunhofer Institute for Mechanics of Materials IWM in Freiburg have developed a technique of running simulation on a compuer to calculate how to avoid component defects. The new research is particularly useful when shaping metThe simulation shows the results of cold als, as the materials forging. An optimized tool geometry they are made of are (bottom) keeps pore density low. often damaged in the process. One cause of this is excessive press force, which cracks and perforates the material. “With our numerical simulation we can calculate how much deformation a component can withstand before cracking. And we can analyze the effect of factors such as press force and lubricants on the properties of the material,” said Dr Dirk Helm, Project Manager, IWM. “We found that by making a specific change to the geometry of a shaping tool, unwanted perforations were avoided because the pore density did not rise sharply, but only slightly. With our simulation we can identify the optimal properties of components and shaping tools much more quickly than by trial and error,” he added.
www.industry20.com
market dynamics
Indian Investment Market On Growth Path
Projects worth Rs 6.5 lakh crore are scheduled for commissioning in 2010-11.
I
ndian corporates are on the roll in announcing new projects, even after commissioning huge capacities in the last few years, says a new database released by The Centre
for Monitoring Indian Economy (CMIE) CapEx. The study indicates that projects worth Rs 6.5 lakh crore are scheduled for commissioning in 2010-11. This figure stood at Rs 2.3 lakh crore in 2007-08, Rs 2.9 lakh crore in 2008-09, and Rs 4 lakh crore in 2009-10. The growing confidence and boom in investment is expected to be triggered by increasing demand, impelled by a sharp rise in corporate wages, salaries of government employees and income of the farming community. In addition, the corporates are unlikely to face any problems in funding these projects, because the industry has witnessed a
Lessons From Recession
A
uto component manufacturers in their need to create more capacity, might have well taken their eyes off their supply chains, says a new report by Deloitte Touche Tohmatsu’s (DTT) India Manufacturing Group. The report, titled, ‘Auto Component Sector Report—Driving out of uncertain times’, states that the high growth and the possibility of even more perhaps made the auto component manufacturers strategically rigid and a touch complacent with reference to managing their operations. “There have been a number of examples where optimism often makes people overlook the shortcomings in their operational or tactical performance. A slowdown actually helps companies focus on important things and conservatism,” said Kumar Kandaswami, Manufacturing leader for Deloitte in India. “In a sector that has high material costs, low value addition and difficulty in making strategic corrections the margin for error is extremely small. Under these circumstances and where cost is a huge competitive differentiator, efficiently
14
june 2010 | industry 2.0
managing the supply chain should be the single most important activity of the senior management of companies,” he said. “While the automotive sector is rightly reputed to be very good at managing its supply chain, it turned out that the difficult times did not bring the best out of companies,” said Kumar. He added that in most cases, companies allowed inventory to build up. He added that if the industry has to grow and perform to its potential, it has to have manufacturers who will be strong on technology, efficiency and scale. The report further presents strategic and operational benchmarks for the sector as a whole and for each one of the sub-segments such as engine parts, transmission and steering, braking and suspension, electrical parts and other equipment. The report suggests a continuum of processes that manufacturers may well do to adopt to enable them manage their enterprises in a manner they are able to grow profitably.
- technology management for decision-makers
handsome growth in domestic savings in the last eight years. Gross domestic savings as a proportion of GDP rose from 23.5 per cent in 2001-02 to 36.4 per cent in 2007-08. Besides, the Indian economy is expected to return to its nine per cent growth trajectory. The study reveals that the real GDP would grow by 9.2 per cent in 2010-11, as compared to an estimated 7.1 per cent in 2009-10. All three broad sectors of the economy are expected to do well. The industrial sector is projected to grow by 9.6 per cent, services by 9.8 per cent and the agriculture and allied sector by 5.8 per cent.
Advertiser index Bry Air Asia............................ 37 CHEP ..................................... 27 DHL ..........................................5 Exxon Mobil ................... IFC, 33 FARO...................................... 13 Frost & Sullivan ..............29, 31 Fuji Electric ............................17 Haas Automation.....................7 HPL ........................................ 49 Mitsubishi ................................3 Pro Engineer ......................... 11 Siemens ................................ BC Swagelok .................................9 TaeguTec .............................. IBC
www.industry20.com
opinion
Focusing On Servicing Segment Will Yield Better Result
A
utomation supplier revenues continued to fall throughout 2009 as compared to 2008. ARC expects that year-on-year comparisons between 2008 and 2009 will experience a decline, with modest growth in 2010. ARC sees signs that the manufacturing recovery has begun—but its continued success depends on the ability of the financial markets to return to normal. Small, medium and large businesses have all been strained by the inability to access short-term capital. Moreover, many firms have delayed capital equipment expansions, particularly component manufactures in automotive supply chain. Although the short-term forecast for the global automation expenditures for the process industries looks bleak, ARC expects moderate market growth to resume during the latter part of the five-year forecast period. Once the economic turmoil settles, the globalization environment will resume, which will once again cause manufacturing companies to invest in capital expenditures. “Manufacturers will continually face challenges to raise productivity, lower product costs, reduce plant operating expenses,
Automation expenditure
www.industry20.com
and increase return on investment to compete in the global market. Consequently, capital investments for automation should resume across many industries,” feels Senior Analyst David Clayton, the principal author of ARC’s “Automation Expenditures for Process Industries Worldwide Outlook”.
Investments in new automation components are growing slowly, but the users will look for better service support. Thus, by enhancing their capacity to provide repair and maintenance services, automation suppliers can capitalize this opportunity.
Downward pricing pressure
go beyond being just automation providers, enhance their overall project revenues and enjoy long term revenue streams through customer service relationships. With global economic uncertainty and ongoing lack of demand, manufacturers are putting more thought into—whether they should replace or simply repair their automation equipment. Since repairs are often less expensive than replacement, it is reasonable to expect to see a jump in repair business. To take full advantage of this opportunity, suppliers should make sure that they are in a position to provide repair and maintenance services, not just on their own products, but also on products manufactured by other suppliers. To take full advantage of the relatively high level of industrial and infrastructure growth in regions, such as China, India, the Middle East, and Eastern Europe, suppliers should continue to invest in improving their distribution channels, including production facilities, sales, service and repair locations in developing regions. This can open new markets for conventional and low-cost automation options, breathing new life into these older-generation products, which are steadily declining as sales of intelligent solutions continue to grow.
It is not often that price erosion becomes a major concern in the automation sector. However, industry veterans have experienced double-digit price decreases. There are several reasons for this, but the net effect is that the market will have difficulty growing even in the high single-digit range over the next five years. One element contributing to the price erosion is that controllers are rapidly becoming an automation commodity in some sectors. Differentiation between products, capabilities and performance factors is rapidly diminishing. A large percentage of the suppliers in the market can compete very effectively from a performance criterion across many markets. This increases price competition.
Increase services component With the commoditization of control equipment, many automation suppliers are differentiating themselves by broadening the scope of services offered to include front-end engineering and design, operations, outsourced maintenance and performance improvement. Users and suppliers alike benefit from more collaboration. Users can leverage the expertise of suppliers to help manage plant assets across their entire lifecycle. Suppliers can
industry 2.0
- technology management for decision-makers | june 2010
15
opinion
Eliminating Sales Quotas May Stimulate Profits Removal of sales quotas boosts company profits in some cases. Mathematical models, based on a combination of commonly used ‘agency theory’ and ‘dynamic programming’ in conjunction with a firm’s historical sales data, helped researchers in designing an output-based compensation scheme, which improved overall revenue of a company by nine per cent. by marguerite rigoglioso
H
ow do you pay your sales force in a way that motivates them to do the best job possible? The U.S. economy spends an estimated $800 billion annually compensating sales forces, almost three times the amount devoted to advertising, yet sales force compensation remains a troubling question. Many firms offer bonuses for crossing certain sales thresholds, or meeting quotas. New research at Stanford Graduate School of Business, however, suggests that quotas may, in some situations, undercut profits. When one Fortune 500 company removed quotas, sales went up $1 million per month. “The fundamental problem is that managers never know exactly how much time and effort their salespeople are putting into their work,” says Harikesh Nair, an associate professor of marketing, Stanford Graduate School of Business and author. “In the absence of such knowledge, they can only base payment on agents’ output, not their input,” he adds. Commissions, quotas and bonuses based on performance are
16
june 2010 | industry 2.0
thus the typical staples of sales force compensation. Quotas, in particular, are believed to generate strong incentives by serving as targets or goals that encourage sales agents to work hard. While commissions may spur effort in unequivocal ways, the quota carrot can sometimes result in agents gaming the system. “Those who have already made the quota in a current compensation cycle may have an incentive to postpone additional sales,” says Nair. “Alternatively, those who perceive they have no chance of making the quota in the current cycle have a perverse incentive to postpone their effort to the next cycle,” he continues. In a recent paper, Nair and Sanjog Misra, an associate profes-
They found that removing quotas enhances firm profit. Nair and Misra then worked with company managers to formulate a new compensation scheme without the quota requirement. Implemented at the start of 2009, the new plan resulted in a nine per cent improvement in overall revenues, which translates to about $1 million of incremental revenues per month. The new compensation plan also was extremely popular among the sales associates. “Most salespeople do not like quotas,” says Nair. Striking the quota system may not be the answer for every company, say the researchers. “What managers need to do is evaluate more carefully how the system is functioning for their own organization,” Nair suggests.
Company managers need to carefully evaluate how the system is operating in their organization. sor of marketing at the University of Rochester, have described finely specified mathematical models that describe the behavioural patterns of every sales agent employed by a Fortune 500 contact lens manufacturer. The models are based on a branch of economics named ‘agency theory,’ which specifies how output-based compensation schemes should be designed. Thosee models enabled them to simulate what sales would be if the features of the compensation contract were changed, and to quantify the cost to the firm of employees gaming the system.
- technology management for decision-makers
One approach is for firms to conduct mathematical analyses that formally consider the behavioural responses of sales people to aspects of the compensation scheme. Another, says Nair, is for managers simply to take a good look at their group’s sales data over time to understand how output has varied when quotas or incentives changed. “That can give a company a good base by which they can evaluate what can happen if they do change the compensation system,” he notes. The new study utilizes both approaches.
www.industry20.com
cover story
sPeedIng the Conversion of
ideas Into Products by p. k. chatterjee
18
june 2010 | industry 2.0
- technology management for decision-makers
Rapid Prototyping (RP) technologies can significantly reduce product development time and save prototyping costs. By enabling the proof of the concept at a very early stage of development, they facilitate physical comparison between alternatives and options, especially where look and aesthetics are important. The RP industry is also pioneering a new technique in manufacturing in which products are built using additive techniques that can dramatically reduce material waste and the impact on the environment.
I
n late 2009, Stratasys and Autodesk unveiled the world’s first full-scale turbo-prop aircraft engine model. What was remarkable about this feat was its sheer size (six blades, engine length more than 10 feet and a blade-span of 10.5 feet) and complexity (188 components and two sets of gears operating counter rotating blades). The entire project was fabricated in ABS, an engineering thermoplastic, using a technique developed by Stratasys called FDM (Fused Deposition Modeling). According to Statasys, it took about four weeks to create all the components, and another 2.5 weeks to assemble it. It cost an estimated $25,000. Using conventional fabrication processes, such as machining and casting (with in-house and outside resources) a manufacturer could expect to spend 9 months or more producing a model like this, and spend $800,000 to $1 million. According to the designer, Nino Caldarola, “Building this physical model with FDM helped improve its design by identifying four opportunities to make components fit or operate with better precision.” Since some of the components were too large to fit in the build envelope of the FDM machines, the parts had to be manufactured in multiple pieces and joined. Stratasys CEO Scott Crump points out, “After creating complex models with additive fabrication, manufacturers can use the CAD files to create perfect-mating jigs and fixtures to support production processes.”
Progression to large format
s. sCott Crump CEO, StrataSyS
mon challenges that the designer or protoyper faces relate to integrating all data related to various parameters, creating precision in the model and to keep costs under control while maintaining speed-to-market. Consequently, prototyping needs to be done in a way that produces fastest, fittest and finest result through the most economic and environment friendly way while minimising wastage.
Picture courtesy: Star Prototype Manufacturing Co. Ltd., China
Challenges in Engineering Design
An appropriate prototype helps accurately communicate the features and benefits of a product, and draws attention of the business investors. It helps market researchers to identify potential and gathering views from customers. When it is a prototype of an engineering product or part, it helps in physical simulation too. In today’s rapidly changing economic environment, the com-
www.industry20.com
the turbo-prop model project shows that 3d printing has made the progression to large format. hopefully this project will help make manufacturers aware that a designer can conceive and design a product this significant, and then have it physically modelled in about six weeks. having a full-scale physical model is a powerful communication tool for both the production-machining and production-tool-creation processes, and manufacturers can realize incredible roI for both of these processes.”
Rapid Prototyping (RP)
Rapid prototyping of Caldarola’s aircraft engine design provided 97 per cent cost reduction and 83 per cent time reduction.
RP can be broadly classified as either additive or subtractive prototyping. When ‘speed’ is the priority, additive prototyping is the solution. But, when the prototype is needed to withstand high degree of stress (say for functional testing), subtractive method is often a better choice. Within the subtractive prototyping process, there are two categories, viz. primary subtractive process and secondary sub-
industry 2.0
- technology management for decision-makers | june 2010
19
cover story
Picture courtesy: www.eos.info
Different Ways of RP
tractive process. The first process uses a computer numeric controlled (CNC) machine to create the desired prototype from a solid resin block. In the second method, an aluminium mould is milled, then resin is injected into the mould to produce the model. Although, subtractive processes have several advantages, like—different kinds of resins may be used, yield models have good strength, flexibility, chemical resistance, dielectric properties, and other critical characteristics along with economy, they cannot create the prototype as rapidly as additive processes.
Q&a
Commercial aircraft components manufactured by Paramount PDS, using EOS’ PA 2210 FR (flame resistant) material for rapid manufacturing.
RP technology is often referred to by a variety of names, viz., solid freeform fabrication, additive manufacturing, desktop manufacturing, hypothetical device manufacturing, digital fabrication, computer automated manufacturing, layered manufacturing and so on. The first machine for (additive) RP was launched in late 1980s. The technology evolved from two technical areas, known as topography and photosculpture, and has continued to evolve in sophistication, speed, ease of use and cost structures. Additive RP can be described as the process of construction of a solid model by forming thin layers of materials using 3D CAD data. While in its early days RP was only used for production of models and part-prototypes, today the technology can be employed for making production-quality parts, of course, for vey short runs or specific application areas. RP machines can use CAD (or AMS—Animation Modeling Software) data from a computer through a standard (.stl) interface (the term originating from Stereo Lithography, also STL stands for Standard Triangulation Language). Then the machine slices the design into thin, virtual, horizontal cross sections. Subsequently, it starts creating (printing) successive layers (each layer may be as thin as 1/1000th inch) until the whole model is completed. The lay-
ADvAntAgE unlimitED, usAgE limitED paresh Bheda, DirECtOr, PrOtOSyS tEChnOlOgiES
Q: How’s the awareness level of RP technologies among Indian manufacturers? a: the acceptance level is steadily increasing among Indian manufacturers, and many more companies are opting for the rP services. they have understood the need for being faster in launching new products in today’s fast changing world. Automotive parts and jewellery are the two sectors where rP machines have been installed for captive use.
20
june 2010 | industry 2.0
Q: What about the cost of adopting RP technology? Is it affordable for SMEs? a: the rP technologies are costly in terms of capital cost and raw material cost. But when you compare it to the final tooling cost, it is as low as 5 to 10 per cent of the total tooling cost. But, it is definitely within the reach of Indian sMes since corrections or modifications in the tool or mould will cost more than rP. Q: What are the latest technical advances in Rapid Prototyping? a: Many low cost concept 3d printers have entered the market in the last couple of years. subtractive rP (cnc machining) is also gaining popularity for the use of actual plastic materials. A lot of prog-
- technology management for decision-makers
ress is happening in direct metal laser sintering process. Q: What are the shortcomings of RP technologies? a: the major shortcoming is the limited options in the raw material used by each machine. every process has its own raw material, which is not interchangeable with any other rP process. the materials used are still weak in their physical, mechanical and electrical properties when compared to the actual plastic materials used in injection moulding. the rP parts cannot satisfy all the needs of the designer. users are still looking for materials that can accurately match the properties of the actual plastic materials.
www.industry20.com
users Endorse RP
When the product engineering team in the Chassis Division of Ford’s Automotive Products wanted to design an axle differential case to house a more complex technology, it required more internal components than their current one-piece case assembly could accommodate. The design engineers were certain that they could produce a functional two-piece case design to house the additional components; however, the constraint was it would require the implementation of an entirely new production line or necessitate outsourcing, involving substantial expenditure. Their challenge was to find a way to fit the new technology into their current one-piece case design, and utilize their existing manufacturing technology. This was a complex challenge because of the size of the components inside the new differential case. So, they concurrently proceeded with the more complex, expensive two-piece design, while setting out to prove the feasibility of the one-piece casing. With only two months to verify their design and request a quote, they needed a fast and inexpensive means of iterating design models before prototyping. They turned to their Actua printer (from 3D Systems) to validate their new design. With the model in hand, the product design engineers were able to present a clear picture of the new case design and obtain important inputs from other engineering divisions. “The Actua printer was
www.industry20.com
Q&a
ers are automatically joined or fused to create the final shape. Although, there are many methods (with a variety of commercial names) for creating prototypes directly from CAD or AMS data, the differences are in the ways they use layers to create parts. For example, in Selective Laser Sintering (SLS) technology, thermoplastics or metal powders are used as base materials, while in Fused Deposition Modelling (FDM) thermoplastics or eutectic metals are employed as base materials. Stereolithography (SLA), Laminated object manufacturing (LOM) and Electron beam melting (EBM) use photopolymer, paper and titanium alloys respectively. In the Poly Jet method, photopolymer materials are allowed to jet in ultra-thin layers (16µ) on a build tray layer by layer to create the solid model, while some other processes use fine powder and a binding resin to produce the output. Steady technical advances and growing competition have pushed down the prices of RP machines (or 3D printers). From large cabinet-sized machines the size has been compressed to desktop-sized models. For instance, Stratasys uPrint Plus has a footprint of just 635 x 660 mm, and can output ABS parts in eight colours.
ADDitivE vERsus subtRACtivE RP dr. u. Chandrasekhar grOuP DirECtOr—raPiD PrOtOtyPing labOratOry gtrE, bangalOrE Q: Can you elaborate on the use of CNC machines versus additive prototyping machines? a: the use of rapid prototyping (rP) is largely associated with the creation of a small series of components that aid design visualisation, fit or quick functional tests. The use of RP is justified in the early stages of product development cycle, as rapid prototypes help us in unearthing of design flaws, if any, in the early stages of the product development cycle. this in turn has positive impact on ensuring of product integrity. In contrast, CNC Tools are used in slightly later stage of product development cycle. cnc is a versatile technology—that can help you to create parts for subsequent use in tooling, as final parts or assemblies. CNC can handle almost the complete spectrum of engineering materials, RP as of now can handle a small set of materials.
Q: Where are CNC machines better than additive prototyping techniques? a: The typical surface finish achieved through cnc is superior to that of RP parts, as most of RP processes entail the use of support structures. rP processes yield better results when we have to quickly transform the complex design concept into physical parts. CNC definitely is more suited for handling actual engineering materials.
a crucial communications tool in the development of the new casing. When you have a three-dimensional model sitting in front of you, everyone wants to get their hands on it. The Actua printer really facilitates discussion between various engineering disciplines and is a tremendous benefit to the design process,” says John Rutt, Product Designer. An original equipment manufacturer for the medical industry Biorep helps in developing the tools required to find the cure for diabetes. When the company’s equipment became more compact and sophisticated, it started outsourcing rapid prototypes of small parts more frequently. The volume reached a point where it made business sense to bring
industry 2.0
- technology management for decision-makers | june 2010
21
cover story An important aid for prototyping rapid prototyping falls in the ambit of physical prototypes, which can be implemented— both at component level or system level. the range of prototypes—from the complete system to individual components that can be produced by rapid prototyping at various degrees of approximation—makes it an important aid during prototyping in the product development process. With the significant advantage of speed in delivery it is an aspect that cannot be ignored.”
manoj mehta COuntry ManagEr—inDia anD SaarC OPEratiOnS DaSSault SyStèMES SOliDWOrkS COrPOratiOn
rapid prototyping technology in-house. “At the time, Biorep lacked a cost-effective way to produce rapid prototypes,” says Felipe Echeverri, the firm’s Engineering Director. He continues, “When we outsourced 3D printed models, they were often more expensive than the cost to machine them in-house, and it was not much faster. We knew we could really accelerate our design productivity, if we had the ability to print a part overnight, in our office. So, we began to evaluate
3D printing systems.” The firm decided to buy an inhouse 3D printing system considering accuracy, ease of use, maintenance requirements, surface finish and price. Finally, they purchased Objet’s Eden250 3D printer. Echeverri feels that having in-house 3D printing capabilities has helped diversify Biorep’s product offerings and revenue. In his words, “We can now design and prototype a wider range of projects. For instance, right now we are working on projects ranging from ophthalmology research applications to surgical instrument concepts. We did not have the time or resources to do those in the past.”
An industry in Flux
According to a report released last month (May 2010) by the research firm Wohlers Associates, the market for 3D printers is getting boost from very lowcost models. The report also states the industry has achieved a compounded annual growth rate (CAGR) in sales of 26.4 per cent over 22 years (since its emergence). The market leader is Stratasys, which shipped approximately 43 per cent of all RP systems and 50 per cent of all 3D printers in 2008. The company has recently signed an agreement with HP under which Stratasys is producing an HP-branded 3D printer priced around $15,000. 3D Systems Corporation, a provider of 3D Printing, rapid prototyping and manufacturing solutions, last year acquired certain assets of Desktop Factory, Inc., the company that developed a sub-$5,000 3D Printer. In the words of Abe Reichental, President and CEO of 3D Systems, “Until recently, cost and
inDiAn RP inDustRy in 2009 dr. mukesh agarwal, Managing DirECtOr, 3D PrODuCt DEvElOPMEnt (P) ltD., bangalOrE
W
ith Global Recession, 2009 began on an uncertain note. Although India did not witness recession, in 2009, growth had slowed
22
june 2010 | industry 2.0
down from eight to nine per cent of earlier years to five to six per cent. All Capital expenditures were suspended by companies. As a result first and second quarters did not see any major investments in technologies, including AM (additive manufacturing) systems. the economic stimulus measures of the government began to show results in the second quarter, and that gave the industry much needed confidence to resume investments. Second half of the year saw companies loosening
- technology management for decision-makers
their purse strings, and going out on a spending spree. However, caution was still the buzzword. As a result 2009 was probably one of the most muted years in the growth story of AM in India. In these tough times, not surprisingly, the low cost systems and those with ability to reach and service customers far and wide did well. stratasys’ low costs systems such as uPrint and dimension systems did well. The small, low-cost models were mostly sold into academia,
www.industry20.com
Q&a
viRtuAl PRototyPing RulEs mAnuFACtuRing david CoCkBurn-priCe, Managing DirECtOr & FinanCE DirECtOr thE virtaliS grOuP OF COMPaniES Q: How are Virtual Reality and Advanced Visualization helping engineers and designers? a: Converting the CAD data, which may be multi-sourced, into a virtual model allows people to review virtual prototypes at an early stage. It is more cost-effective than producing multiple physical prototypes. Such reviews can be done at any scale, (say) desktop size or 1:1 or significantly enlarged to examine detail, and they can be used to assess manufacturing processes, (say) pipe or cable clashes and future maintainability. Q: What are the benefits of this technology to manufacturing companies? a: Such activities significantly enhance efficiency, whilst reducing corporate travel requirements. At BAE Systems Submarines, we have systems in the design area and actually on the shop floor, so that welders and fitters (not CAD/IT staff) can
who were not affected by the economic downturn. In fact, in terms of number of systems sold, these low cost modelers performed better than in 2008. However, the same cannot be said about some of the other low costs 3d Modeling AM systems. After selling well in the initial years of their entry in India, some of these 3D Printing AM system manufacturers have lost the momentum. In most of the cases, this has happened due to poor post-sales support, which leaves a negative lasting effect. this has been a major problem plaguing growth of AM in India. For the larger AM systems such as sLA of 3D Systems, and LS of EOS and 3D Systems, 2009 was definitely not one of the best years. sales of larger systems such as SLA iPro, SLS sPro, Laser Cusing were almost non-existant. However, EOS
www.industry20.com
operate them without having to look at complex design plans or scale model prototypes. Q: What are the prototyping trends among the large product manufacturers? a: Virtual prototyping (VP) has the greatest benefits in sectors and organizations where products or components are large or complex. such items are either too large for rapid Prototyping (rP) or need to be broken down into components and reassembled later. But, it is possible to wholly eliminate the need for physical prototypes, (say for) scale models of submarines and test builds of trucks. However, we often find companies combining virtual and physical prototypes, so that they can reduce the latter. Q: How do they get the realistic feel with virtual models? a: Virtual prototyping is done in full ste-
reoscopic 3D, so that depth perception is achieved—and models can be viewed as a whole or individual components can be moved or removed. It is possible to assign behaviours to the components, such as clashes and dynamics, so that their full performance can be assessed. Adding a sense of virtual touch and/or immersive tracking systems enhance the feeling of being in the virtual world, and your prototyping, sales or training environment become as believable and realistic as possible.
and Stratasys still managed to do quite well by selling the eosint and the Fortus systems, at least as well as in 2008. Second half of the year saw some revival in sales of AM systems in the Indian jewellery companies, who had become a major customer of these systems in recent years, apart from significant decline in 2008. However, sales in jewellery was still weak, with customers opting for low cost ProJet type systems instead of the usual workhorse, SLA Viper. Overall, in terms of number of units sold 2009 was better than 2008 due to large number of low cost systems. In terms of revenue, the year was flat with not much revenue growth in AM systems sales in 2009. service providers were also cautious in 2009 and neither added any new AM
capacities; nor did 2009 see emergence of any new players. Most were content with flat growth with no risks in adding new capacities. emergence of cnc machined prototypes is gaining popularity and slowly but surely replacing AM prototypes in many applications. cast metal prototypes are also gaining acceptability in the Indian industry. However, in terms of total sales—service providers have not seen much gains in 2009. Indian service providers rely heavily on the Automotive sector. this sector was almost comatose when it comes to new Product developments in 2009. Overall, demand for plastic and metal prototypes has remained stagnant over the past year. overall sales of AM systems and services in India are estimated to be $15-$18 million for 2009, same as in 2008.
industry 2.0
- technology management for decision-makers | june 2010
23
Picture courtesy: Protosys Technologies, Mumbai
cover story
RP technologies help in dramatically reducing product development time.
Q&a
complexity have confined 3D printers to the shops and design departments of major corporations and premier design firms. The growing success of the VFlash System, our first sub-$10,000 compact desktop 3D printer, reaffirms our commitment to making 3D printing as common in offices, factories, schools and homes as 2D printers are today. We believe the technology already developed by Desktop Factory, in combination with our extensive technology portfolio, could lead to a new generation of fast, simple and affordable 3D printers capable of making durable plastic parts.”
Z Corporation’s latest RP machine, the ZBuilder Ultra, will be available worldwide in July. According to the company, the machine builds high-end functional prototypes at one-third of the price of machines with comparable performance. The manufacturer’s suggested retail price in the USA is $34,900.
outlook is optimistic
While it is a good news for designers that prices of 3D printers are coming down rapidly, but there are some factors that limit their usefulness and efficacy. The maximum product size output available through these techniques is still not enough to meet large part requirements (in one go). Material cost is relatively high in many cases. Another big issue is that RP technologies need specific materials to work upon. RP machines are also slow, and the surface finish is not quite good enough. In many cases, the use of different base materials results in varying shrinkage, surface finish and accuracy. As a result of these shortcomings—and relatively high cost of advanced machines—many manufacturers use RP technologies as a service from the service providers. In India,
REshAPing thE WoRlD oF mAnuFACtuRing prof. (dr.) gautam Biswas, DirECtOr, CEntral MEChaniCal EnginEEring rESEarCh inStitutE, DurgaPur anD MEraDO, luDhiana
Q: What are the new trends in Rapid Prototyping (RP)? Q: rapid Prototyping machines are still slow by some standards. By using faster computers, more complex control systems, and improved materials, RP manufacturers are dramatically reducing build time. continued reductions in build time will make rapid Manufacturing economical for a wider variety of products. today’s commercially available machines are accurate to ~0.08 mm in the
24
june 2010 | industry 2.0
x-y plane, but less in the z (vertical) direction. Improvements in laser optics and motor control can increase accuracy in all three directions. In addition, RP companies are developing new polymers that will be less prone to curing and temperatureinduced warping. the introduction of non-polymeric materials, including metals, ceramics, and composites, represents another much anticipated development. these materials would allow rP users to produce functional parts. today’s plastic prototypes work well for visualization and fit tests, but they are often too weak for function testing. More rugged materials would enable prototypes that could be subjected to actual service conditions. In addition, metal and composite materials will greatly expand the range of
- technology management for decision-makers
products that can be made by rapid manufacturing. the united states currently dominates the field, but Germany, Japan, and Israel are making inroads. In time, RP will spread to less technologically developed countries as well. With more people and countries in the field, RP’s growth will accelerate further. Q: Can RP be used to manufacture big objects? a: currently most rP machines are limited to objects that measure 0.125 cubic meters or less. Larger parts must be built in sections, and joined by hand. To remedy this situation, several large prototype techniques are in the works. The most fully developed is topographic shell Fabrication from Formus. In this process, a temporary mould is built from layers of
www.industry20.com
many large manufacturing companies are not using these prototyping techniques at all, they are managing with Virtual Prototyping (VP) methods. VP is a cheaper option because it requires no physical material. But, mould and die design manufacturers are leading the RP adoption. Widespread use of additive manufacturing is also expected to usher in a new era, where more environment friendly materials will be used for prototyping. Already, a team of researchers from McGill University has been working to explore possibilities of rapid prototyping (RP) systems for construction with ice. Now, (additive) RP techniques are being used for fabrication of complicated production-quality machine tools. The process known as Rapid Tooling is also developing fast. It is anticipated that with the development of suitable materials, the manufacturing of small quantities of products will be done only by RP techniques (Rapid Manufacturing). And perhaps the day is not very far when remote manufacturing and personalized manufacturing will be possible, using a combination of user friendly CAD systems, Internet and RP technologies—drastically cutting logistics spends and environmental pollution.
silica powder (high quality sand) bound together with paraffin wax. The mould is then used to produce fibreglass, epoxy, foam, or concrete models up to 3.3 m x 2 m x 1.2 m in size. At the University of Utah, Professor charles thomas is developing systems to cut intricate shapes into 1.2 m x 2.4 m sections of foam or paper. researchers at Penn state’s Applied research Lab (ArL) are aiming to build large metal parts such as tank turrets using robotically guided lasers. Their group leader, Henry Watson, says that product size is limited only by the size of the robot holding the laser. Q: What are the future applications for RP? a: A combination of rP and the Internet will allow designers to remotely submit designs for immediate manufacture. researchers at UC-Berkeley, among others, are developing such a system. rP enthusiasts believe that rP will even spread to the home, lending new meaning to the term ‘cottage industry’. three-dimensional home printers may seem far-fetched, but the same could have been said for colour laser printing just fifteen years ago.
www.industry20.com
material and machine availability influence selection of the RP method
harshwardhan gupta DirECtOr nEubauPlan MaChinE DESign StuDiO
the rise of rapid prototyping has spurred progress in traditional subtractive methods as well. Advances in computerized path planning, numeric control, and machine dynamics are increasing the speed and accuracy of machining. Modern cnc machining centre can have spindle speeds of up to 100,000 RPM, with correspondingly fast feed rates. such high material removal rates translate into short build times. For certain applications, particularly metals, machining will continue to be a useful manufacturing process. rapid prototyping will not make machining obsolete, but rather complement it. Q: How does RP compare to Virtual Prototyping (VP)? a: It is often said that ‘one picture is worth thousands of words.’ Along the same lines, it can be remarked that ‘one prototype model is worth thousands of pictures.’ rP provides a ‘touch and feel’ environment, and also an FFF (form, fit and functionality) testing facility before venturing into actual production stage. VP cannot provide such a ‘real life’ scenario for prototype testing.
industry 2.0
rapid Prototyping is a great boon to machine designers as real prototypes can be made quickly, and problems are identified early for debugging. the technology in India is still in its infancy as the materials and properties available with the service providers are very limited. Virtual prototyping is not much of a help as one needs to see the behaviour of the reAL assembly from the point of view of manufacturability, assembly, etc. Selection between additive or subtractive prototyping depends entirely on the material and available prototyping machine. usually there is only one choice.”
Q: How can we assess the actual manufacturing problems when a prototype is developed using RP? a: It is true that rP follows additive method for producing a final model from its cAd data—whereas conventional manufacturing methods all follow subtractive technique. The two techniques are very different. But in all practical situations, manufacturing strategy is decided by studying the shape and geometry of the prototype. So, how that shape has been achieved is not very important. rather the ability of a rP processes to make such prototypes available at very early stage of product development—and without involving any tools and dies, is very important. rP models can be used as concept models during design iteration stage, and also as tools for help in deciding the appropriate manufacturing process and tooling required for the purpose. So, by proper study of a RP model, developed at the beginning of the product development cycle, it is possible to choose a manufacturing strategy to be followed, and to assess difficulties likely to be faced and solved during the actual manufacturing process.
- technology management for decision-makers | june 2010
25
manufacturing technology
“Tracking beyond 8 feet is a limitation” Technology company 3M India’s product locators and markers, help in accurately identifying underground assets. The product determines the exact path and estimated depth of underground utilities. Rapid technological advancements such as GPS in this product line is fast expanding its usage in the industry. Harshawardhan Honmode, Head, Construction Industry Centre, 3M India, in an interview with Reshmi Menon, speaks about the product’s applications in the manufacturing industry. Harshawardhan Honmode Head Construction Industry Centre 3M India
What are the typical application areas of locators and markers in the manufacturing industry? As a guideline, 3M locators and markers can be used to track all buried assets in the premise. In manufacturing industry, as a specific case, this technology can be of immense help—especially when designing plants and factories having expansion plans—there are several termination joints buried underground to be connected at a later date. The markers will help identify those critical points even after several years when the actual expansion takes place. What are the recent technological advancements in this field? One can now keep a tab on all information, and track underground assets in their facility through the GPS mapping feature that the equipment provides. This helps in planning activities and scheduling for preventive maintenance of multiple facilities—all from one location or as you move to a new location. Features like data embedding at each marker point, helps the customer capture vital information, he or she may need for
26
june 2010 | industry 2.0
reference. Moreover, the new features allow one to export the data to Google earth pro, as well. The GPS feature, thus, gives one immense flexibility to assess, monitor and control activities of multiple plants and facilities, all at once. What are the cost benefits that the products offer? There is great potential in these products to not only help save direct cost but also prevent collateral damage. How is the application of these products increasing in the Indian industry? We are actively engaged with the telecom and services industry and have made great headway in the industrial business particularly, in tracking cross country pipelines and utilities. Our focus now is to leverage this technology in the construction and infrastructure space. What are the hurdles in the growth path of this segment? The only hurdle we encounter is lack of awareness. We have taken conscious efforts to create awareness within the target group
- technology management for decision-makers
through forums, workshops and training programmes. What are the limitations of this technology? Most of the underground assets that need to be serviced / tracked on a regular basis are usually buried between 1 to 8 feet maximum. Our equipment currently allows us to track up to 8 feet depth, which covers most of the utilities that need to be tracked. Beyond 8 feet is a limitation. However, if the need arises, we may look into development of the same. As for machine/equipment interference, we have built-in features in the markers that allow each buried utility to be tracked at a different frequency, and to the best of our knowledge may not interfere with the plant machinery and equipment. How much training is needed to use these instruments? These are fairly simple to use and handle. Our teams provide training and handling advice to the users. We also provide add-on advisory services to our customers to help identify critical points in their buried assets as per international guidelines.
www.industry20.com
materials & processes
Illuminating Wear With Composite Electroless Nickel Coatings A new type of electroless nickel coating, that can be made to glow in the dark, is finding a market among manufacturers—who need to know when a coating is wearing off, either to prevent damage to the underlying part or to ensure consistency of the resulting product. by virginia heffernan
Nodular structure of electroless nickelphosphorus coating on Magnesium Alloy AZ31
A
New Jersey based company that makes electroless nickel products, began creating phosphorescent coatings in response to demand from a customer in the textile industry—who wanted to protect an expensive component. “Our customer had an intricate part that was being coated with our composite diamond coating,” says President Michael Feldstein of Surface Technology, Inc. “They wanted to be able to determine when the coating had worn off so that they could replace it and prevent damage to the base metal piece underneath.” Developed in the 1940s, electroless nickel coatings now come in a variety of composite forms to
suit specific conditions, from high temperature environments to applications that require lower friction or corrosion resistance. The most common material incorporated into composites is diamond because of its unsurpassed ability to resist wear. The new composite phosphorescent coatings have all the inherent features of electroless nickel and are indistinguishable under normal lighting, but they emit a constant glow—when exposed to UV light. The phosphorescence can either be integrated directly into the functional coating or serve as a stand-alone ‘indicator layer’ underneath the functional layer. The latter application is particularly useful in moulding applications where the shape and volume of the mould should remain consistent while, slowly and imperceptibly, being worn down with use. When a phosphorescent ‘indicator layer’ underlies the func-
The new type of electroless nickel coating is a unique technology that can achieve two very valuable needs in today’s market: authenticating genuine parts, and identifying wear to critical components. It is a sophisticated technology, yet works in a process that has been used commercially, reliably and economically for over 30 years.”
Aluminium letters coated with three different versions of Illumi-Layer and photographed under ultraviolet light. tional coating, an inspector can use a handheld ultra-violet light to check for wear on a regular basis and save the mould from damage. “If spots of light come through, that means at least part of the functional coating is worn through, and it’s time to pull it off and have it stripped and recoated,” says Feldstein. “It’s all about preserving the base part.” Another potential market for phosphorescent coatings rests with manufacturers who want to ensure authenticity before installing parts in their equipment. “Some machine shops are able to make a convincing counterfeit part for a proprietary piece of equipment, but they won’t have the technology to put on a composite electroless nickel coating with phosphorescent particles,” says Feldstein. “If the genuine part is tagged this way, all the operator needs to do is shine an ultra-violet light on the piece to make sure it’s authentic and okay to use.” Reprinted with permission from‘Nickel’ published by the Nickel Institute. Photo: Khalid M. Shartal, Process Engineering and Applied Science, Dalhousie University with the collaboration of Patricia Scallion.
Michael Feldstein PresIdenT, surface Technology, Inc. 28
june 2010 | industry 2.0
- technology management for decision-makers
www.industry20.com
materials & processes
Painting a
Bright
Future Inspite of the many challenges, the Indian building paints market is gearing up to provide specialized and quality products to its customers. by vignesh raja
30
june 2010 | industry 2.0
- technology management for decision-makers
A
major share of the Indian building paints market is still contributed by the economy segment, which mainly comprises distempers. However, the market is witnessing a gradual shift towards economic emulsions, with consumers opting for better quality paints. With rising disposable incomes and growing consumer awareness, the market for premium paints is expected to show promising growth in the coming years.
Indian outlook
In stark contrast to global standards (wherein building paints and industrial paints enjoy an equal share of 50 per cent each), in India building paints (more popularly known as decorative paints) dominate with 70 per cent of the total demand for paints, while the remainder is contributed by industrial paints. The per capita consumption of paints in India is only 0.9 kilogram as compared to a global average of
www.industry20.com
F R O S T & S U L L I V A N
Performance Plastics with its cutting edge properties has made it possible to offer high end, quality, functional products for end user industries like automotive, medical devices, electrical & electronics. Frost & Sullivan invites industry players from the Performance Plastics sector to a dynamic summit aimed to maximize growth of your organisation.
Who Should Attend this Event? Across the Materials Industry Value Chain ■ Technology Personnel ■ Engineering and Development Personnel ■ R&D Personnel ■ Presidents/Vice Presidents ■ Directors ■ Marketing Personnel
Key Areas of Discussion ■ ■ ■
■
Global and Indian Performance Plastics Trends Key Applications R&D and Product Innovations in Performance Plastics Key Challenges for Performance Plastics in India
Benefits of Attending the Event ■
This knowledge sharing platform by Frost & Sullivan provides the opportunities to discuss the latest developments and trends in the performance plastics industry in India
■
Interact with the who’s who of the business
■
Leverage new age technologies and products and gain insights into the future polymers in India and globally
■
Understand the consumer requirements and kind of developments expected by them in the market
Registration/Pricing Schedule
Register Now!
INR 7,000 per delegate INR 10,000 for 2 delegates (Inclusive of 10.30% tax)
Download the form from www.frost.com/plastics
Media Partners:
For further queries, please contact: Anish Charles,Tel: +91 22 4001 3419; E-mail: anishc@frost.com Viviene Vora,Tel: +91 22 4001 3453; E-mail: vvora@frost.com
materials & processes 15 kilograms. Southeast Asia has a per capita consumption of nearly 4 kilogram while developed countries have a per capita consumption of 22 kilograms. In 2009, the Indian building paints market was worth $1,891 million and is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent during the period 2009-2015 to generate revenues of $3,394.0 million by 2015. Interior paints accounted for 60 per cent while exterior paints accounted for 40 per cent of the total market in 2009. Exterior paints face competition from various substitutes such as glass and aluminium facades, cement coatings and plaster. In rural areas, many buildings
indian
the building paints
market is expected to grow at a Compound annual growth Rate of 10 per cent during the period 2009-2015. have a brick structure and do not use any paints for the exteriors. The Indian market uses almost 70 per cent of water-based paints and 30 per cent of solventbased paints. Most of the key participants in the industry are involved in both water-based (emulsions) and solvent-based (enamel) paints.
Competitive structure
The Indian building paints market is highly fragmented in structure with more than 2,500 companies operating in this space. The top four market participants (such as Asian Paints, Kansai Nerolac Paints, Berger Paints, AkzoNobel (ICI) and Shalimar Paints) held about 65 per cent of the market in 2009. Remaining market share is held by smaller participants formulating paints and
32
june 2010 | industry 2.0
selling them to low-quality requirement section of the society.
Product segmentation
The building paints market in India is broadly divided into three categories depending on the pricing and quality as well as chemistries. The building paints industry can be categorized into Economy, Mid-range (Popular) and Premium. Economy range: Distempers are the key products in the economy segment along with low-cost alkyd solvent-based paints— • These are the cheapest range of paints available in the Indian market with prices ranging from $0.7 per kg for distempers to $2.0 per litre for high solvent-based versions • Key suppliers include unorganized participants, although organized competitors have a certain share in this segment • With growing awareness and demand for better quality paints, growth rate of this segment is expected to slow down in future though key targets for these paints are consumers that have low purchasing capability. Mid-range or popular: The key chemistries used in this segment are mixed acrylics as well as solvent-based alkyds— • Prices for these paints range from $2.2 to 5 per litre • This segment is catered to by large organized participants as well as tier 2 and tier 3 participants. All organized participants are active in this segment • Currently, this segment is witnessing a high growth rate as the purchasing power of consumers has increased and they are willing to spend on better quality products according to their economic capability. Premium range: The key chemistries for the premium segment are pure acrylics as well as high-end solvent-based alkyds— • These are the highest-priced paints in the Indian market
- technology management for decision-makers
with prices ranging from $5.0 per litre, which can go up to $14.0-$16.0 per litre. • All market participants are active in this segment with two or three key brands. • Multinationals entering the Indian market also have specialized premium brands • Increasing income levels as well as improved awareness level with regard to quality products are expected to drive the demand for premium paints in future. • Most participants in the organized sector operate in all the three segments. Companies such as Asian Paints are well known both in the urban and rural segments. Multinationals such as Nippon Paints and Jotun Paints operate mainly in the popular as well as premium segments. The more expensive paints are sometimes imported into the country.
Distribution structure
The key to success of the Indian building paints industry is a welldeveloped distribution network reaching every region— • All major companies follow almost the same value chain. Paint companies either import raw materials or procure them locally or in some cases even manufacture themselves. Certain large companies have also outsourced their manufacturing facilities. Distributors supply paints to retail hardware stores where the painter or the consumer purchases these products. The retail stores stock colorants as well as tinting machines along with shade cards. The shades mentioned in the shade card can be developed by dispensing and mixing the desired quantity of colorants in the required base. Dispensers make use of computer-aided software for dispensing colorants.
www.industry20.com
Since institutional sales form a very small percentage of the total sales, about 15-20 per cent, these are also catered by the distributors. Although the paint company representatives directly interact with large institutions for paints as well as technical and commercial specifications, paints are still supplied through distributors. As the concept of Do-It-Yourself (DIY) is very nascent in India, there are hardly any companies that have their own company-owned stores. Certain large companies have set up direct-to-consumer facilities where they provide paint as well as painters with a guarantee on the paints. However, in this case also, paint is procured through distributors.
Key market dynamics
The Indian building paints market is very dynamic with the distribution network playing a very important role in the success of a company. The key market drivers, restraints and industry challenges include—
Key drivers • Growing disposable income • New technologies with global standards coming into India • Growth in the construction segment • Growth in premium paints segment, and • Government investing in housing schemes for the poor leading to higher demand of paints
Key restraints • Price variation of key raw materials
www.industry20.com
Key challenges • Managing a complex distribution network, and • Maintaining profit margins
Conclusion
The diversity in demography, income levels and varying climatic conditions in India necessitate development of a wide range of building paint products. Due to various choices available for the consumers, the Indian consumer loyalty towards a certain brand is very low and prices play an important part in the selection criteria. Since most of the sales are still through distributors and the concept of direct sales to end users very new, suppliers need to ensure timely delivery of paints and maintain good inventory levels in retail outlets. The Indian building paint market participants are looking at developing specialized services to differentiate themselves to carve a niche for their products and gain advantage over their competitors. The premium and mid-segment products are expected to witness higher growth rates in future with increasing customer preference for quality products. With growing income levels and the current low per capita usage of paints as compared to the global usage, the Indian building paints industry offers a good potential. Global participants are developing high-quality products and better ways to target the highend consumers due to which local participants will have to strengthen their branding. Thus, building paint companies will have to ensure
indian
the market uses almost 70 per cent of waterbased paints and 30 per cent of solventbased paints.
that they strike the right balance between competitive pricing, enforcing strong distribution network and implementing innovative branding techniques to survive in the Indian market to carve themselves a stable position in this highly competitive market. Vignesh Raja is Industry Analyst - Materials, Frost & Sullivan, South Asia, Middle East and North Africa.
industry 2.0
- technology management for decision-makers | june 2010
33
materials & processes
The
Future Is Synthetic Synthetic lubricants play a significant role in helping customers achieve new heights of equipment productivity. Today, cement manufacturers in the Asia-Pacific region are increasingly making use of synthetic lubricants for optimising performance and improving reliability.
Application of synthetic lubricants saves costs and improves performance of the ring gears and pinions.
34
T
he Asia-Pacific region leads the world in cement production. The region produces more cement than all the world’s other regions combined—nearly 900 million metric tonnes annually, or more than half of the world’s total. There are about 8,400 cement plants in Asia-Pacific, with an overwhelming majority (8,200) in China alone, producing some 510 million metric tonnes annually. India hosts 115 plants, producing some 100 million metric tonnes. Japan follows a distant third with 39 plants and with an annual output of 22 million metric tonnes.
june 2010 | industry 2.0
Most of the plants in China are older and comprise smaller facilities. However, thanks to considerable foreign investment, new and large capacity plants are rapidly increasing in number. Large and small cement manufacturers in Asia-Pacific are optimising performance and improving reliability with the help of synthetic lubricants. Synthetic lubricants provide a host of benefits such as: • Improved wear protection • Reduced oxidation and deposit formation • Improved extreme temperature properties (hot and cold) • Compatibility with mineral oils • Extended service life (typically 5 to 10 times longer) • Waste and disposal minimization through reduced consumption • Ability to be filtered and recycled, and • Energy conservation (typically 2 to 5 per cent improvement in energy efficiency) Synthetic lubricants provide measurable and documented
- technology management for decision-makers
benefits to cement manufacturers in applications such as: • Ring gear and pinion lubrication (both spray and enclosed systems) • Compressors and blowers • Drive reduction gearboxes • Fan and crusher bearings, and • Kiln support bearings Ring gear and pinion: The one application where synthetics provide the greatest value in terms of cost or benefit performance is in the lubrication of the ring gears and pinions—both for open gears and enclosed gearsets. For cement manufacturers, these applications represent the single largest lubrication cost—typically 30 per cent of a plant’s total. In general, there are three types of lubricants generally used for open gears. They are:
Asphaltic or bituminous products—These are thick, black, tacky, high-viscosity products that are applied with the help of volatile solvents to dilute them during application. Semi-fluid greases—These comprise black, tacky and low-
www.industry20.com
advts.indd 58
3/23/2010 2:32:15 PM
materials & processes viscosity products that rely on high levels of solid additives such as graphite and molybdenum disulphide to prevent metal-tometal contact. Synthetic lubricants—These are high-performance products that are environment-friendly, require no thinning solvents or solid additives to aid their performance and are more energy efficient. Because of their cost and benefits and utility in problem solving, the use of synthetics is growing rapidly in the Asia-Pacific region. These lubricants are marketed in a range of viscosities applicable for both open (spray) systems and enclosed gearsets.
Synthetic compressor lubricant
provides thermal and oxidation stability and reduces carbon sludge
formation.
For open gear spray systems, synthetic lubricants ranging in viscosity from 46,000 centistokes (cSt) at 40°C to 22,000 cSt at 40°C are most frequently specified. For closed gear applications, manufacturers report increasing demand for lubricants with viscosities ranging from 3,200 cSt at 40°C, to 6,800 cSt at 40°C. When compared to mineralbased systems, synthetics typically reduce consumption on open gearsets by 50 per cent versus
36
june 2010 | industry 2.0
greases and compounds. In addition, their high film viscosity helps reduce wear and extends component life. Moreover, these products can be sprayed on and do not need solvents. In addition to gear applications, synthetics offer significant cost savings and performance enhancements in a wide range of cement manufacturing applications.
Compressors
Koryo Cement Manufacturing Co, Samshuk, Korea, was experiencing problems with bearings in their 200-HP screw compressors. The bearings were lubricated with conventional mineral oil, which resulted in higher-than-normal temperatures and accelerated oxidation of the mineral oil. Adhesive carbon sludges formed, leading to bearing failures. Lubrication engineers recommended a synthetic compressor lubricant, which provides thermal and oxidation stability while reducing the formation of carbon sludge. By switching to the synthetic product, Koryo was able to extend bearing life and increase drain intervals over 400 per cent from 2,000 hours to 8,700 hours. Annual savings of $ 10,000 per year were achieved.
Blowers
Guangzhou Zhujiang Cement Mill, China, was experiencing high maintenance costs on its roots-type blowers which were running very hot. The blowers were lubricated by a mineral gear oil that deteriorated rapidly with a significant viscosity decrease when temperatures reached 100°C. Bearings lasted an average of only three months. The oil, meanwhile, needed changing every two months. The mineral oil was replaced with an ISO VG 220 synthetic. The operating temperature rapidly fell from 100°C to 94°C. Meanwhile,
- technology management for decision-makers
the oil drain interval was extended by a factor of six to just once a year. Bearing life was extended from three months to a full year. Thanks to extended oil drain intervals and improved bearing life, the company has experienced an annual cost savings of $ 10,000 for the past four years.
Reduction gearboxes
Nan Hwa Cement Co. Ltd., Taichung Plant, Taiwan, was experiencing high downtime in gearboxes. At the plant, a reduction gearbox is coupled to a bucket elevator and operates in a high-load and high-temperature condition. It was lubricated with a mineral oil that deteriorated rapidly at an operating temperature of 70-75°C. Moreover, a significant amount of sludge lead to gear failures and unscheduled downtime. After replacing the mineral oil with another ISO 220 synthetic oil, the lubricant operating temperature dropped from a peak of 75°C to an average of 60°C. Unscheduled downtime was eliminated, resulting in a savings of $3,000 per year.
Kiln support bearings
GITIC Green Island Cement, Guangdong, China, was suffering from high temperatures and oxidation in its kiln support bearing lubricant. The mineral gear oil deteriorated rapidly at an operating temperature of 80°C, requiring an oil change every month. Lubrication engineers analysed the application and recommended an ISO 1000 synthetic. The oil operating temperature was reduced from 80°C to an average of 77°C. The oil drain interval was extended by a factor of six to six months. Annual savings of US$ 1,500 were achieved.
Synthetic greases
Synthetic greases are also proven
www.industry20.com
Synthetic lubricants
ANY SIZE
We designed and custom built India’s Largest Dehumidifier
ANYWHERE
Nationwide and worldwide Sales & Lightening Service Response
ANY APPLICATION Providing solutions to moisture-related problems in every industry
Although the term synthetic has been used in a variety of ways, it is generally used to describe non-conventional basestocks specifically manufactured to impart high performance when coupled with carefully selected additives. This combination results in fully formulated synthetic hydrocarbon products that perform over a wide range of temperatures and pressures. While synthetics are more expensive to produce, they often provide benefits that far outweigh the costs when used in appropriate applications.
DEHUMIDIFIERS Total Humidity Control
Environmental aspects
Thanks to their outstanding lubricating performance, synthetics can often reduce energy consumption in the range of two to five per cent—an important consideration for an energy-intense industry like cement making. And, because synthetic lubricating oils can be filtered and recycled, they pose much less of a disposal problem. Indeed, in many applications, useful life is virtually unlimited. Unlike asphaltics, high-viscosity synthetic lubricants are solvent free, will not harden in-service and clean-up easily.
Conclusion
Under the harsh operating conditions found in many parts of the cement industry, mineral oils tend to discolour, develop gummy deposits, emit a burned odour and need to be changed frequently. Synthetic oils, because of their inherent oxidation resistance, can extend the drain period by a considerable period (a factor of eight is not uncommon). Despite the higher costs of synthetic lubricants, their extended drain periods result in a net reduction in overall costs—not to mention the considerable improvement in equipment protection and performance. Courtesy: Mobil Industrial Lubricants
www.industry20.com
FLB FFB F FF FB FB
At any given moment, somewhere around the world, there will be a Bry-Air engineer providing the customer solutions to his moisture-related problems, from drying tiny seeds to mothballing large warships, backed by in-house resources and R&D facilities, and expertise of our international partners.
Control Moisture / Humidity to improve product quality Bry-Air Dehumidifiers are being used the world over by various industries during production, processing, storage and packaging to solve moisture related problems most effectively and economically for over three decades.
ISO 9001:2008 & 14001:2004 CERTIFIED
20, Rajpur Road, Delhi 110054 • Phone: 23906777 Fax: (011) 23906600 • E-Mail: marketing@pahwa.com
www.bryair.com
RB/BA/1052HVCA1
problem solvers for extending bearing life and reducing regreasing frequency in the cement industry. In a typical example, a lithium complex synthetic grease with an ISO 1500 base oil was used to extend bearing life by over six times in a roll press used in crushing cement clinker. Heat and contamination compromised the mineral-based grease resulting in costly bearing failures. The synthetic grease and a change in feed rate improved bearing life from six months to more than three years. In another application, a lithium complex synthetic grease with an ISO 460 base oil was used to reduce bearing regreasing frequency in fan bearings from once every two days to just three times a year.
USA | Brazil | Germany | Italy | Turkey | Africa | UAE | India | Malaysia | Thailand | Philippines | Indonesia | China | Korea | Japan | Australia
industry 2.0
- technology management for decision-makers | june 2010
37
supply chain & logistics
M Prem Kumar Group MD & CEO Uniworld Logistics
“There is a huge demand and service gap as of now” Today’s highly demanding competitive scenario is rapidly changing the portfolio of the logistics service providers (LSPs). In order to maintain their unique identity, the LSPs are taking up to offer new services that involve higher degree of responsibilities and demand much enhanced capabilities. In an exclusive interview, M Prem Kumar, Group MD & CEO, Uniworld Logistics, talks on various emerging management needs in the 3PL service area to P K Chatterjee. Excerpts… 38
june 2010 | industry 2.0
- technology management for decision-makers
www.industry20.com
Packed goods are ready for dispatch from the integrated logistics park. es should be explained to the team members every now and then. Security is an overall concern for the 3PL provider. You can install all the modern gadgets to monitor and secure, but end of the day it has to be the process and the attitude of the people that will make the difference.
MRP labelng and promotional stickering are being done in integrated logistics park. What kind of management capability should a 3PL service provider have to handle jobs like packaging and marking expeditiously? First of all you require a specialized team for packing, marking and handling different types of products. More than security, it is the right handling that is more important here. For Pharma, you need people who understand what they are handling and how important it is to handle it carefully. Same is true for other products. You need to keep training your people and making them understand the importance of the product, the social obligation that you carry by providing the services. The handling techniques have to be taught to the people and a stringent monitoring is required. Any wrong coding or packing has to be pointed out and the consequenc-
www.industry20.com
How is the demand of such services compelling 3PL service providers to expand their list of activities? The demand for these services was always there in India. Now, the quality and promptness of these services are growing. Nowadays, packing and marking change according to the season, weather, design, market demands. They occur in such short notice that the client does not have the time to coordinate with different vendors. They just convey the concept or the design, and the 3PL has to arrange everything. What kind of companies are mostly looking for such services, and how are they increasing 3PL providers’ responsibility? These services are required more for retail companies. But, today all B to C companies across the verticals require such services—either for the finished products or the spare parts or accessories. The mistake here leads to an issue with the government agencies
first, if your MRP is pasted wrongly. Then you get into an issue with Weights and Measures department and so on. What type of fail-safe service assurance is sought by the outsourcing companies? The main concern here is time, and that is what the companies who outsource us looks forward. They always include a penalty clause for delivery beyond time. Few of them look for the quality in terms of neatness of packing and marking. How do you manage to provide that? As I said before, it is all about training and making things clear to your people. Some activities are very common and generic. Here, you do not need skilled people. A skilled person has to do multi tasking. He has to teach the process and then monitor the semi-skilled people. What kinds of demand-service gaps are you finding at this moment? There is a huge demand service gap as of now. There are few laws that have to be relooked and streamlined first. The communication has to be more clear. The vendors have to be clearly identified and made partners, so that they understand you much better. The co-ordination between the marketing and logistics team has to be more seamless.
industry 2.0
- technology management for decision-makers | june 2010
39
supply chain & logistics logistics
Vineet Mehrotra Director – Sales (FMCG) CHEP India
“Standardization is the most cost-effective way of reducing cost” High transportation costs, inefficient infrastructure, lack of organization in the sector comprises some of the challenges faced by the Indian logistics industry. However, with focused strategies and advancements, India can overcome these challenges and become a key and successful logistics player. Vineet Mehrotra, Director—Sales (FMCG), CHEP India, in an interview with P K Chatterjee, talks about the various measures to develop a streamlined and effective supply chain. 40
june 2010 | industry 2.0
- technology management for decision-makers
Which are the most important factors responsible for higher logistics costs in India? Some of the issues intrinsic to our country are its geography, the population density and the distribution of population within the country. However, there are some extrinsic issues too, such as the organized retail contributing four per cent to the total
www.industry20.com
retail in the country, thereby making the reach to 12 million stores in the country painful and uneconomical; 55 per cent of the total freight being moved on roads, of which only two per cent are national highways, thereby leading to average truck speeds of 20 kmph and the current tax regime, which to an extent is responsible for small and inefficient warehouses being developed and used across India.
explaining why 13 per cent of our GDP is spent on Logistics. Some of the factors that very heavily contribute to this flab are the manual nature of register entries, counting and checking at each node of supply chain. Contrast this with an RFID enabled unitized pallet load leaving the manufacturer’s factory, moving through various warehouses and eventually reaching the wholesalers’ /retailers’ location.
How can the situation be improved with shift of paradigm within the existing framework? One can talk about taking radical actions like exploring other means of transport such as railways, waterways and airways. But, this is easier said than done, as these sectors are marred with their own infrastructural issues. Therefore, there should be focus on ideas where logistics via road can be made more efficient. • Define what a unit load would be from a logistics perspective, for example, a pallet load. • Get cross-industry bodies to work together to agree and accept standardization of basic details like truck body sizes. • Both the service provider and user should have the skin in the game—if a service provider is asked to offer a particular specification of fleet to the user, which obviously would involve investment from the provider, the user should be ready to get into medium- to long-term contracts with their provider.
What are the basic steps to organize inventory flow through a warehouse? Any efficient inventory flow should ensure that the goods are safe, tracked in real time, easily stored and retrieved in a warehouse. Besides, it should also ensure that the workers handling the material have a safe environment, while consuming the least possible time and energy and reducing and eliminating the detrimental impacts on our environment. This—to many might sound like an ideal world situation, but obviously if objective decisions based on proper analysis of requirements are taken at the right time, rather than adhoc sporadic ones, this is easily achievable—and in most cases at lesser costs.
How can deployment of the right technologies at the respective application areas reduce the waste labour and time in the logistics domain? I am a big fan of standardization and a firm believer of the fact that this is the easiest, quickest and most cost-effective way of reducing cost and bringing in efficiencies. In the logistics sector, RFID is one thing that fits the bill on all counts. Today, average inventory time in our country is 33 days, compared to 24 in China and 20 in Brazil, which would go a long way in
www.industry20.com
What kind of benefits can be drawn through design innovation and material selection of material handling equipment? This topic is very close to my heart, and I firmly believe that innovation and creativity are the defining factors of differentiation between the winners—and also ran. Thus, even the service providers to the supply chain industry cannot remain aloof from this phenomenon. Here, I would like to take the example of our companyCHEP, which has invested million of dollars in putting up an innovation centre in Orlando. The job description of this innovation centre is not only to look at continuous improvements of our pallet and container designs, but also to help our customers test their packaging solutions and receive advise from our team of packaging engineers and scientists—who work
industry 2.0
and run this facility. It is from here that the design of pallets and plastic containers (250 million and 50 million respectively), that we own and manage across 47 countries globally, are perfected. It is through this facility that we have proven the fact that the pool of CHEP pallets and containers saves the environment and enables our customers to reduce the carbon footprints of their supply chain, while reducing their costs. How can one ensure product damage control on transit at the packaging level? Shrinkage and product damages are one of the worst in our country. The reasons for this could be many—including packaging quality, distances travelled, truck bodies and road conditions, among others. However, solutions are simple, in the sense that companies need to consider all these factors when they are designing their packaging—and test them before going all out to implementing the socalled money saving solutions. How efficient are the tracking systems these days in India to provide end-to-end visibility of the consignment movement? This to me is the biggest dichotomy in India. On one hand, we have the unparalleled position in information technology, where Indian companies are working with almost all the Fortune 500 companies, but on the other we have our logistics industry, which so far has shied away from the use of technology. One of the major contributors to this might be the fact that still only six per cent of the $100 bn industry is organized. The other factor is the misconception that the tracking technology is expensive. The good news, however, is that things are changing really fast. Tracking technology is now available in India, with its breadth ranging from Global Positioning System (GPS) to mobile-based, but it is the depth of usage within the industry, that still needs catching up to do.
- technology management for decision-makers | june 2010
41
information technology
Staying ahead Of COmpetitiOn With
Right
Business Intelligence tools and applications traditionally address only the structured data that resides in databases. Organizations need to put a strategy in place to leverage intelligent information access and analytical capabilities on enterprise data— structured as well as unstructured.
Strategy E
nterprises have come a long way in their quest to better manage information, bringing in efficiencies and intelligence into businesses for competitive advantage. The journey began with integrating islands of information from a multitude of diverse applications—to introduce operational efficiencies, creating what are known as loads of information and data made available through these applications—bringing
by daljinder singh uberoi
intelligence to strategic as well as operational business decisions. Although there is a realization of the need along with common understanding on the issues involved and the steps needed to address them, many enterprises end up trying to hammer square pegs into round holes in the implementation. Conventional Business Intelligence (BI) tools enable multidimensional views of structured data stored in the databases,
Enterprise Intelligence BI + Intelligent Searches on Unstructured Data
allowing users to slice or dice data in the offline mode without concern for the impact on the transaction data and performance. However, this focus has been on structured data only. Unstructured data a.k.a ‘content’ is constantly being generated within the organization in multiple forms such as—
Documents • Word processor documents, spreadsheets, reports
Web content • Content shared internally and with the outside world through various websites
Digital content generated through various communication channels • Emails, text and voice chats, discussion threads, etc.
Other digital assets Enterprise Systems
Business Intelligence on Enterprise Systems
Islands of Information Independent Systems
42
june 2010 | industry 2.0
- technology management for decision-makers
The march towards Enterprise Intelligence
• Text, audio clips, video clips etc. Unstructured data, spread across the organization, despite its importance and value, is untapped by most BI tools. To mine the potential of this huge resource base, it is essential to— • Recognize the existence of this unstructured data and the fact that everything cannot be moved to databases
www.industry20.com
• Understand its importance and the need to loop such unstructured data/content sources into the cycle of drawing information for business or operational intelligence Lately, there are visible indicators of progress on this front. Some organizations are taking cognitive steps to provide shelter to the homeless entity called unstructured data—and build intelligence around it. While this has generated significant benefits for these organizations, in the process it has created pockets of intelligence. With this step in the evolutionary process, the march toward enterprise intelligence is now truly under way.
The evolution of Enterprise Content Management (ECM)
Enterprise Data = Structured Data + Unstructured Data Businesses now recognize the importance of both types of data—structured as well as unstructured—and the need to search and consume that information for competitive advantage. The traction around content management solutions and the overwhelming success of search engines stand testimony to this fact. Content Management Solutions (CMSs) have come a long way in addressing unstructured data as have search technologies—that now offer flexibility to bring relative intelligence into the results. CMSs now offer a home to unstructured data and build a structure around it. Intelligent search engines, meanwhile, are striving to provide the route map and a vehicle to reach that home address. Content Management includes the technologies and tools to manage content and different work-actions associated with content pertaining to organizational needs and processes. Work-
www.industry20.com
What has been Data centric view Data warehouses and related concepts of BI
Whatis
What's happening
Predominantly data centric view
Seamless view – unified view
Enterprise Search Engines – promoting the content view
Intelligent, predictive, suggestive information integration
Everything that needs to be searched needs to be in the form of structured data – Fixed queries
actions associated with content across its lifecycle stages are—
Content creation • Content generation • Content review and approval • Content storage
Content discovery and consumption • Content discovery • Content delivery • Content consumption
Content administration and maintenance • Content organization • Content editing • Content retention and expiry • Implementing policies and compliance • User access management • Templatizing processes (productivity enhancement measures)
Need for effective management of unstructured data at enterprise level: An important aspect to consider here is that content/ unstructured data and the associated work-actions are not limited to the individual user level. Being scattered across the enterprise (worker desktops, various applications, shared repositories, etc.) makes it imperative to effectively manage this unstructured data across the enterprise.
Viewing each of these workactions at the enterprise level, the number of touch points across various stakeholders grows exponentially. Since enterprises no longer work in pockets, information/ data needs to be available in real time to different parties involved. This makes the need for effective enterprise level collaboration evident at each stage of content generation, review and approval, consumption etc.
The evolution of Enterprise Intelligence
Compliance brings in another dimension: Legal and regulatory compliance needs have brought in a new dimension to data handling and associated work-actions on this enterprise data. Both structured and unstructured data need to be tracked, audited, retained, retired and mined at the enterprise level in a holistic manner to be able to comply with regulatory needs.
Enterprise Content Management capabilities (ECM): ECM solutions available today provide capabilities for effective management and collaboration of unstructured content across the enterprise. This can, however, create two unconnected managed worlds: • Managed world of structured data
industry 2.0
- technology management for decision-makers | june 2010
43
information technology • Managed world of unstructured data Both these ‘worlds’ have their respective solution offerings.
Enterprise Information Management and Enterprise Intelligence
The world of managing structured data has been around for some time now and has fairly matured solution offerings. The other world, i.e., Enterprise Content Management solution offerings, is maturing rapidly. What organizations now need is an enterprise view of information management, across both structured and unstructured information. Enterprise Information Management and Enterprise Intelligence are the efforts to bring these two worlds together to provide a consolidated view.
Enterprise Intelligence Strategy options
ECM-centric Enterprise Information Management
Driven by the historic offerings of each vendor, there are different approaches available to achieving Enterprise Intelligence. Structured data world vendors are investing in providing intelligence on non-data content, whereas content management vendors are providing features to plug in
contextual information and intelligence from the different data sources and applications into content management portals and dashboards. Predominantly, the landscape can be segmented into two approaches. These are— • Unstructured data / enterprise content management driven approach • Structured data driven approach
Unstructured Data / Enterprise Content Management Driven approach
Vendors taking the content-driven approach have leveraged their ECM platform as the core offering and attempted to plug structured data into it. In the world of content management, besides the numerous content management features discussed above, content/information discovery plays a critical role. This approach uses ‘crawlers’ for unstructured content sources, which leverage different proprietary algorithms. The content crawled is indexed and stored in index databases. These indexes are leveraged by query/search engines to intelligently collate, sort, filter, and arrange information depend-
ing on a user’s search query. Search engines, through increasingly sophisticated algorithms, are now capable of highly complex pattern recognition. Through the ECM-centric Enterprise Information Management approach, vendors are trying to leverage their existing investments and provide extensibility to achieve intelligent mining of structured data sources such as ERP, CRM or LoB systems. They have effected this by using crawlers to crawl and index these sources of nformation. When a user submits search criteria for the search engine, the engine leverages its intelligence to work not only on the unstructured and semi-structured data sources, but also on the business application data, thus providing users appropriate information across the enterprise, easily and efficiently. Another level of consolidated information management that ECM vendors are trying to achieve is providing a unified view of information in a contextual manner. This entails an ability to fetch information from unstructured data sources as well as the business applications based on a context and provided in a structured format. This can help improve productivity significantly. Further, some vendors are working on presenting information from conventional Business Intelligence and data warehouse on the same dashboard.
Structured data driven approach
Business Intelligence solutions traditionally provide a local view to the management along with intelligence aroundt he structured data in various business applications. In the data driven approach, the BI platform is the core and the view on the unstructured data is plugged in to fulfill
44
june 2010 | industry 2.0
- technology management for decision-makers
www.industry20.com
the enterprise level business intelligence needs. In this approach, crawlers and index engines with inbuilt intelligent algorithms and pattern recognition capabilities are leveraged to bring structure to the unstructured data. This newly structured data is then loaded into the central data warehouse. This approach provides an opportunity to tie up the data in database-driven business applications, documents and other data stored in managed repositories. The BI tools can then be leveraged on this central data warehouse to obtain an enterprise view of the business intelligence.
The choice of approach depends on the organization
Both approaches are strong efforts to provide capabilities for an enterprise view of information management across structured and unstructured data. Both aim to bridge the pockets of intelligence within the enterprise. However, until these approaches converge for a seamless view of the worlds of structured and unstructured data, organizations will need to choose between the two. Infosys believes that neither approach is better than the other. Both are equally important and effective. The Enterprise Information Intelligence strategy should be primarily driven by: A) The predominant structure of the enterprise data/content within the organization—existing as well as in the future B) How the organization intends to consume the intelligence generated on top of enterprise information In addition, other factors such as turnaround time, current portfolio of investments in IT applications [operational, analytical and strategic], etc., may influence the choice of approach.
www.industry20.com
Next steps
Based on the factors mentioned before, organizations need to identify and align their Enterprise Information Management realization strategy. As per the key direction, i.e. ECM-centric or BI-centric, the next logical step would be to evaluate vendors and system integrators in the space. For some organizations, the strategy alignment could be quite obvious—for others the question of choice could be fairly complex. Take a leading law firm with multiple offices across the globe. For users predominantly working on documents and emails along with other channels of communication, unstructured data is the lifeline. However, for each of their clients, users also have billing and other information stored in databases and managed through respective applications. They need a consolidated view of clients while being able to draw on intelligence across cases. This, then, is a clear case for implementing an ECM driven Enterprise Information Management Strategy. Most other organizations, however, are likely to have a substantial mix of both structured
and unstructured data. They may have certain processes working entirely on (and creating) documents and other unstructured data. At the same time, they may have sizeable investments in typical operational and business intelligence capabilities built on their systems. Within the same organization, there can be different business functions with varying data or content structures. There could also be different expectations form Enterprise Intelligence capabilities. For such organizations, it need not necessarily be either an ECM or a BI-driven approach. Specific functions could be ECM-driven, while others could be BI-driven. The critical success factor for these organizations is to invest upfront in formulating a robust and comprehensive Enterprise Information Management and Enterprise Intelligence strategy. The implementation could be rolled out in a phased, evolutionary method prioritizing maximum business value areas or minimal risk zones.
BI-centric Enterprise Information Management
Daljinder Singh Uberoi is a Technical Architect at Infosys.
industry 2.0
- technology management for decision-makers | june 2010
45
information technology
Tuning Up
BUsiness
OperaTiOns By leveraging data warehouse, Business Intelligence (BI) and Customer Relationship Management (CRM) systems, organizations can uncover hidden insights to optimize business processes. by david a kelly
46
june 2010 | industry 2.0
“W
hen things are going well, people don’t pay as much attention to the details as they need to,” says John Hagerty, Vice President and Research Fellow, AMR Research. “When performance starts to erode, people need to get a better handle on exactly what contributes to an organization’s performance and what is really driving business? They need to analyze performance at all different levels. That is what Business Intelligence (BI) can do,” Hagerty points out.
- technology management for decision-makers
Business leaders need to take more decisions when economic growth is stagnant—Which stores do we keep open? Which new product should be introduced? To whom should we market? What are the optimal price points in the current market? Such questions become more important when profits are waning. Making the correct decisions requires beginning with accurate data and having the proper tools to work with that data. Organizations need the right data infrastructure to support effective decision-making.
www.industry20.com
picture Courtesy: www.photos.com
When used correctly, analytics can help target marketing efforts more effectively, identify the profitable customers or products and find ways to drop unprofitable customers or products. “During lean economic times, it is more important than ever for companies to know where their marketing money is going and why,” says Adam Sarner, Research Director, Gartner. “The value proposition of good BI is the ability to focus marketers on key insight and actionable information that they would not have realized naturally. Marketers need help spending their budgets in the right places,” Sarner says. Just because one segment of the market isn’t buying, doesn’t mean another isn’t. For example, while luxury sales taper off during a recession, retailers might find that consumers are purchasing lower-end products―and perhaps in even larger quantities. A store might sell the same number of bottles of wine, but with a much higher percentage of lowto mid-priced varieties. The key is to optimize product mix and market the right products to the right customers. Similarly, the more effectively an organization can manage customer relationships and leverage its knowledge of the consumer, the better position it will be in. From a CRM perspective that means investing in technologies, that create a positive impact in the short term, while building a foundation for the long term. In other words, some CRM components may pay off with bigger returns during a downturn. “The key is to pick technologies that will have the maximum impact on the organization’s strategic goals in each economic environment, while providing a solid foundation to build on, regardless of what happens with the economy,” says Sarner.
www.industry20.com
That way, once the economy picks up, the organization will be ahead of the game. Waiting for a recovery to adopt CRM technology can jeopardize the company. When considering a solution, organizations should look at these capabilities: Data matters: With deeper knowledge, instead of reaching out to everyone or investing in speculative ventures, a company can maximize existing relationships and target areas for expansion. That is why the ability to turn data into actionable intelligence, profitable decisions and satisfied customers is crucial. Data warehousing, BI and performance management are key technologies in understanding the fundamentals of profitability and identifying new opportunities. For example, BI can provide visibility and consistent analysis that might be spread across an organization, enabling decision makers to generate the insights needed to grow the business.
Knowledge at work
A few examples of how data analysis can help companies gain profits: Targeted marketing: A data warehouse allows businesses to identify their best customers, empowering them to allocate precious resources to reach out and sell to those individuals. One such opportunity is the integration of web behaviour data with offline consumer data. A person’s online browsing behaviour can be used to identify which products, services, brands, sizes and destinations etc., the visitor is interested in. A business can then use that data to communicate to the customer through any channel—via a personalized catalog, e-mail or mobile text promotion, a ‘by the way’ comment to an inbound caller and a pop-up ad on its website or at an ATM.
A data warehouse is a good place to begin to understand the relationship between consumers and profitability. That’s where value analysis comes in. Value analysis identifies not only the clients returning the highest profits but also those who are costing a company the most money. Powered by a data warehouse, profitability analysis can illustrate the profit and loss drivers for customers in specific segments and across different channels. Instead of just segmenting individuals into high- or low-revenue categories, profitability analysis allows organizations to account for expenses and differences of servicing consumers via various sales and marketing channels. While more complex than basic customer analysis techniques, profitability analysis allows organizations to dig deeper and really understand who their best clients are and why. This type of understanding can make the difference between long-term success and failure. Intelligent staffing: In an uncertain economy, organizations frequently struggle with how to best utilize human resources to minimize labour costs, while ensuring maximum productivity. Employing operational BI capabilities can improve efficiency by updating a maintenance crew’s work priorities on an hourly basis. The schedule of a mechanic can be co-ordinated with the arrival of required parts, thus eliminating wait time. Moreover, the most important repairs can be prioritized, so they are completed in the optimal order. The results include minimized labour costs, completion of more work and fewer delays due to maintenance issues.
Improved corporate efficiency: When properly integrated throughout an enterprise, a data solution can improve an organi-
industry 2.0
- technology management for decision-makers | june 2010
47
information technology zation’s line of sight, and enable better control of local operations through centralized purchasing, administrative and business service functions. The results include a standardized and leaner list of top-performing vendors, efficient supply chain processes and significant monthly close-cycle reductions. In addition, interactive and real-time discount analysis can offer greater insights into which customers and suppliers should receive certain discounts and who should be charged more.
Optimizing inventory and resources: Having the right data can also assist inventory and resource optimization. Without a way to model the business or analyze what-if scenarios, companies can do little more than guess what the right mix is. But, organizations that use BI tools to leverage historical data, can optimize inventory, resources and even business processes.
For example, retailers might use near real-time data analysis to determine the expected sales rate for top items by store. With in minutes, management can detect which items might soon be ‘not on shelf’ and contact clerks to check. For a manufacturer, improved demand planning based on frequent and accurate data about orders, inventory, sales, shipments and promotions is important. This critical information can be leveraged to reduce stock out and eliminate excess inventory. Know your customer: Customers may come to a company through a variety of channels, viz., walk-in stores, direct mail, telemarketing, websites, e-marketing and partners. Different types of customers may consume different products or place different demands on an organization. That is why it is important to understand exactly how an individual affects profitability.
Turn insight into profits
There is no doubt that organizations are trying to make the most of what they have. By leveraging corporate data effectively to make optimal decisions, they can not only survive but even prosper. Companies can use these periods of uncertainty to step back and invest in strengthening their business model and in their ability to manage business processes, products and customers more dynamically. To that end, a solid data infrastructure can help increase effectiveness and efficiency. More specifically, technologies such as data warehousing, BI and CRM can be vital in enabling smarter decisions about streamlining operations and maximizing revenues and customer opportunities. David A Kelly is a Boston-based freelance writer who specializes in business, technology and travel writing.
Innovating Through Mechatronic Product Lifecycle Management A systems-level approach to mechatronics product development provides all contributors, like mechanical, electrical, electronic and software engineers, associated with the product lifecycle, with an understanding of the product as a whole, which helps them in better optimizing the tradeoffs that drive detailed design, manufacturing, sourcing, sales and service decisions throughout the product lifecycle. by vivek marwaha
50
june 2010 | industry 2.0
I
nnovative manufacturers across all industries have increasingly incorporated electronics and software into their mechanical products in order to deliver features—that customers want at a competitive price. As competition intensifies and market windows shorten, mechatronics technologies are becoming critical to success. However, even as mechatronics becomes more prevalent, most manufacturers lack expertise across all mechatronic disciplines including software, electronics
- technology management for decision-makers
and mechanical engineering. As a result, companies rely on partners to provide key elements in their products, further complicating the primary challenge of mechatronic product development: integrating these disciplines into a coherent, synchronized product lifecycle. According to AberdeenGroup, manufacturers that are best-inclass in mechatronics product development hit their revenue, cost, launch date and quality targets 84 per cent of the time. Four out of five of these companies address
www.industry20.com
Picture Courtesy: www.photos.com
management & strategy
mechatronic integration issues early in the design process. Some of the key trends that pose a challenge for manufacturers to optimize processes across the mechatronic product lifecycle are– l The development and manufacture of electronics components is increasingly outsourced to suppliers and strategic partners, increasing the challenge of coordinating development and protecting intellectual property (IP) l Higher warranty issues can result from more complex products l Security, configuration management and change management present significant challenges l Complex mechatronic products increase the need for change control, version control and traceability In order to compete, manufacturers need to be able to synchronize all aspects of the highly complex product and process design, pushing all systems engineering and design issues to the front of the process whenever possible. This synchronization requires the integration of precision mechanical engineering, electronic control and systems thinking in the design of intelligent products and processes. Product lifecycle management, or PLM, solutions can provide an ideal framework for implementing enterprise-wide mechatronics goals. When applied strategically, PLM technologies using extensible markup language (XML) and open system standards, can create a digital environment— that supports secured access and exchange of data among the multitude of applications that optimize and analyze the product and process functions in each of the disciplines and across all stages of the product lifecycle. To create a highly efficient product development and manufacturing environment that fosters
www.industry20.com
continuous and measurable mechatronic innovation manufacturers need to focus on— l Systems engineering and requirements management l Development management l Production management l Service and diagnostics management
Systems engineering and requirements management
This means that companies need to establish a framework to architect the mechatronic system, then create and communicate the system requirements to downstream decision makers. To respond to the challenges posed by mechatronic products, companies need to support new business practices that transcend disciplines and transform product development, manufacturing and support. They must address the complex integration issues that are driving up costs late in the design cycle and at all stages of the product lifecycle. These issues are amplified when manufacturers work with partners and suppliers that provide needed expertise in electronics or software development. While this increases collective knowledge, it also adds complexity, as companies need to coordinate all stages of the lifecycle not only with other companies but also among multiple domains within each company. To succeed, manufacturers need to implement a broad set of processes and methods for modeling and analyzing interactions among the requirements, subsystems, constraints and components that make up a mechatronics product. This requires a high degree of synchronization, optimization and cross-disciplinary management that is only possible through a systems engineering approach to managing the entire product lifecycle.
A systems engineering approach facilitates collaboration among multiple departments and disciplines—not only simply within the enterprise but also among suppliers and strategic partners across the value chain. When supported by enterprise PLM, systems engineering provides a holistic view of design, manufacturing and support that manages the complexity of dealing with multiple disciplines, design and manufacturing groups spread across the globe. It provides the ability to define, manage, control and synchronize all of the features and functions that comprise a mechatronics product, and to ensure they all interface seamlessly. Furthermore, companies need to focus on defining customer
must address the complex
They
integration issues that are driving up costs late in the design cycle
needs and the functionality required for each product component or subsystem, early in the mechatronics development cycle. Requirements need to be documented and preliminary designs shared in a design synthesis process. Products and systems then need to be validated and modeled within the context of the whole product. Systems engineering integrates all these disciplines and specialty groups into a team effort forming a structured development process that proceeds from concept to production to operation. Systems engineering considers both the business and the technical needs of all customers with the goal of providing a quality
industry 2.0
- technology management for decision-makers | june 2010
51
management & strategy product that meets user needs. Within an optimized mechatronics requirements management environment, product teams across multiple disciplines understand their decisions in the context of the whole system’s market, regulatory and design requirements and relate these requirements to fine-grain design elements and performance targets—that can be tracked and updated throughout the product lifecycle. This should include managing all relevant designs and variants, product specifications, models (including 3D simulations) and test results.
Development management
Next manufacturers must develop and synchronize all the designs,
A systems engineering
approach facilitates collaboration among multiple departments and
disciplines
components and interfaces that comprise a mechatronics product in a whole system context. Mechatronics has become increasingly prevalent simply because developing a new software is often much less expensive than providing the same feature in a mechanical form. However, the development of mechatronics products requires that companies excel not only in specific disciplines, but also in coordinating development efforts across disciplines and across organizational boundaries. Manufacturers that are successful, however, can boost their innovation capacity through the integration of software that creates more distinctive products
52
june 2010 | industry 2.0
and enables product line extensions that directly lead to new revenue opportunities. They also can streamline costs—by reducing the number of mechanical configurations that need to be supported as software takes over more of a product’s mechanical characteristics. However, product development can be very complex given that mechanical, electrical and software engineers have distinctly different design processes, organizations and technology. A systems-level approach to mechatronics product development will provide all contributors across the product lifecycle with an understanding of the product as a whole. This will enable them to use that total product understanding to better optimize the tradeoffs that drive detailed design, manufacturing, sourcing, sales and service decisions throughout the product lifecycle. An integrated, iterative design process ultimately produces a structure, linking requirements to system and subsystem structures and to product structure. This mapping of product and technology is a key to success as, when done correctly, it may directly link high level product strategy to detailed development execution. The next step is process development. The process of incorporating electronics and software into traditional mechanical products is fraught with peril. Change in any one component may have ramifications across all other product components and systems. One of the greatest challenges of increased complexity is to determine whether to manufacture a unique harness for each product delivered or to trade-off manufacturing efficiency and extra content. Manufacturability needs to be validated as early as
- technology management for decision-makers
possible. Formboard tools provide the manufacturing view of the product so that companies can quickly build tools and jigs around the harness. The final step involved in process design includes simulation and validation. While simulation and validation might be optimized within specific development and process domains, today’s mechatronic products require an integrated simulation model that can validate the whole product against requirements. Simulation models must also connect with product functions as well as features so that manufacturers can validate that the whole product works as planned. Gathering all manufacturing processes together in a single systems engineering environment provides the framework—an integrated ‘product platform’—for continuous improvement. PLM technologies can enable companies to establish an integrated simulation environment for mechatronics products by providing a digital manufacturing framework that supports virtual prototyping, including interface prototyping, to ensure first time quality for the whole product. As a result, companies are able to optimize product performance, integration, quality and reliability through the visual analysis of interdependent mechanical, electrical and software subsystems, constraints and components.
Production management
Production management involves planning and development of the manufacturing processes for harnesses, printed circuit boards and software flashing to track system configurations and quality. Discrete development activities need to come together at the right time in order to avoid delays on the factory floor. The proper
www.industry20.com
timing for the introduction of each component into the production process must be well understood, as changes to existing processes will need to be made. Up-front assurance that the product can be manufactured and sourced is essential. Before companies even think about the make/deliver process, they must evaluate that they have at their disposal the appropriate assets and resources across the value chain. Prior to manufacturing, part or component manufacturing, assembly planning, plant design and production management need to be thoroughly assessed and outlined in detail. Design and production alternatives with accurate cost forecasts should also be part of the plan. Companies must be able to simulate manufacturing and production processes to ensure high quality and smooth flow. Process validation is also important for product variants. PLM provides a digital manufacturing environment that supports not only the early validation of manufacturability and the impact of change on workflows. It also enables companies to evaluate various manufacturing scenarios prior to any commitment to hard tooling. Advanced PLM solutions that support mechatronics give companies the tools to manage and synchronize the manufacture of various components that need to come together for the whole system. More importantly, an enterprise PLM environment based on a scalable, open architecture enables manufacturers to interact with their suppliers’ databases and process management systems and capture updates on their production schedules, quality results and order status. As a result, manufacturers are better able to plan their own production schedules.
www.industry20.com
Service and diagnostics management
In today’s competitive environment, customer service remains an essential element of customer retention. A comprehensive service strategy that leverages mechatronics uses software diagnostics—to proactively identify potential failures and to alert both the company and its customers. When this approach is not feasible, a development and manufacturing environment built on PLM can provide complete information about the product, its current state and the configuration of hardware and software. In addition, change management issues extend beyond product delivery. Software changes might occur after a product has been shipped—indeed, this is one of the advantages of mechatronics products. Mechatronics solutions must be able to manage the changes made to each asset based on its configuration and usage patterns.
Conclusion
In order to compete in today’s dynamic global markets, manufacturers in a variety of industries— including automotive, aerospace, defence, high-tech, industrial machinery, medical instruments and consumer products—increasingly incorporate mechatronics into their products. To be best-in-class, manufacturers must engage in continual mechatronic innovation. This requires companies to transform their approach to systems design, development, manufacture and support. They must synchronize all aspects of the product lifecycle and provide a digital environment through which discrete disciplines involved in mechatronic product development and manufacture can collaborate and communicate in real time. Mechatronics
has greatly contributed to the complexity of designing, manufacturing, delivering and supporting innovative products. A scalable, enterprise-grade PLM solution built on an open architecture provides the capability to integrate discipline-specific applications, data and processes into a unified whole. It enables companies to effectively manage the broad set of processes and methods required to model and analyze interactions among the requirements, subsystems, constraints and components that make up today’s complex products. As a result, companies improve each contributor’s understanding of the product as a whole. This total product understanding can then be used
Mapping of product and technology is a key to success as, when done correctly to better optimize the tradeoffs that drive detailed design, manufacturing, sourcing, sales and service decisions throughout the product lifecycle. To accelerate the process and ensure demand-driven innovation, leading companies must create a real-time, global, collaborative environment that spans organizational boundaries. With PLM, companies can lower costs associated with integration issues that arise late in the design cycle, causing production delays and delaying product launch. PLM enables manufacturers to realize higher revenues and increased profit through improved product quality and reduced costs. Vivek Marwaha is the Marketing Director of Siemens Product Lifecycle Management Software, India.
industry 2.0
- technology management for decision-makers | june 2010
53
management & strategy
Addressing
current ChAllenges With Service ManageMent As A strAtegy A new study provides insights into best practices of service management, and suggests that a strong service strategy can have a positive impact on financial performance of a manufacturing company. The study also focuses on some emerging models being used for stretching service facilities to customers, and shows how are the manufacturers benefiting from those.
C
ompetition, cost pressures and empowered customers are forcing manufacturers to look beyond their products to drive profitable business growth. Many are turning to service management. While some manufacturers still view service as a cost element, an increasing number have successfully grown their service business while transforming it to a profit-centre perspective. Companies have discovered that service management can help them address current challenges facing their business. For example, rising costs related to raw materials, labour, and environmental and regulatory compliance are squeezing margins ever tighter. Service revenues can mitigate shrinking margins and
54
june 2010 | industry 2.0
drive topline revenue growth. In addition, sophisticated and demanding customers are looking more closely at the total cost of ownership, expecting manufacturers to provide lifecycle maintenance services and a comprehensive solution and service experience around their products. At the same time, globalization and the rapid commoditization of products have put additional pressure on product lines, forcing manufacturers to constantly innovate to create sustainable differentiating factors. Increasingly, service management is being viewed as a differentiator and competitive advantage. For those companies that have begun the process of transforming from a product-centric to a service-focused approach, service is viewed as a strategy. And evidence suggests that a strong service strategy can have a positive impact on a manufacturer’s financial performance. The new research by Capgemini examines how best-inclass manufacturers across the aerospace and defence, industrial products, medical equipment and high-tech segments have adopted differentiating strategies to increase their service revenues.
- technology management for decision-makers
Key findings
The research revealed that key differentiating factors include top-management commitment towards services, including executive representation on the board; an innovative service business model; and motivating employees to shift focus from product sales to ownership experience. A few specific points from the findings are being discussed hereafter. Best-in-class manufacturers have moved beyond managing service as a cost centre to managing it as a strategic profit centre—largely by restructuring their organizational capabilities. Companies that view service as a profit centre are likely to categorize it as its own business unit across product lines, and will report service revenues in their financial statements. Manufacturers are continually looking for innovative financial solutions for their capital needs as well as to provide customer payment flexibility. Servicefocused companies are moving beyond obtaining financing for their products to financing their service deals and are in turn providing customers with product usage/service payment flexibility. For example, a leading high-tech company has an agreement with a financial institution to receive one-off funding payment in lieu of its future cash flows (from rent).
www.industry20.com
The rise of service as a strategy
The benefit is passed on to the customer in the form of a flexible payment plan for services offered. Best-in-class companies adopt a strategy focusing on mergers andac quisitionsan dp artnerships to build the service business, and extend their service portfolio. Traditionally,m anufacturers built service capabilities internally, but today many are setting up service
facilities through the acquisition of niche service-focused companies. Manufacturers are also entering into alliances or joint ventures with companies that have service expertise. A leading aerospace and defence company has increased its service revenue at a compounded rate of nine per cent through acquisitions of service businesses. Through this
Top-management commitment—key to service success
www.industry20.com
approach, it has also achieved significant cost reduction, and increased service efficiency and customer satisfaction. Manufacturers are moving beyond servicing their own products, and are offering a range of ‘smart’ services within the segment. Today customers typically need to turn to multiple manufacturers offering different services. However, the business model likely to evolve will be one that offers one-stop services. These may include product lifecycle management, transaction and further data analytics, inventory management, modeling and simulation, logistics, outsourcing and financial engineering. Companies are moving beyond aftermarket service management towards product lifecycle maintenance services, thus increasing their service portfolio. These services typically include training, material management, migration and upgrade, and recycling. Service offerings driven through this model tend
industry 2.0
- technology management for decision-makers | june 2010
55
management & strategy plaint or a call for replacement. In another case, a medical equipment manufacturer has expanded its service offerings to include wireless monitoring of its mobile imaging centres. This system enables engineers to monitor and maintain mobile imaging centres in near real time. Best-in-class companies are measuring customer loyalty and linking it to their employee performance management system. With this approach, sales executives address customer service needs, thus maintaining a relationship with the customer. At the same time, customers rate the overall experience, which in turn is linked to the executive performance management system. Some manufacturers use the net promoter score approach as a key measure to improve the overall customer experience and as a means to achieve organic growth.
The one-stop-service model
Can service management boost fnancial performance? to be more comprehensive than traditional aftermarket service management, thus creating a win-win situation for both the manufacturer and the customer. Manufacturers are shifting from traditional contracts to offer product ‘functionality’ through performance-based service contracts. In this model, customers sign a long-term performance contract (typically five years) with the manufacturer for an asset. Support and service are handled by the manufacturer as part of the managed-services contract. A leading industrial products company offers a programme, where customers pay a fixed rate for maintenance based on the number of hours used. This provides the customer with continuous warranty and a more accurate way of budgeting operations. The
56
june 2010 | industry 2.0
manufacturer gains a long-term contractual relationship with the customer, insights into the usage pattern, and opportunities for profit from spares and overhaul operations. Another leading manufacturer offers ongoing performance of the product without charging the customer for maintenance and service parts contracts any more. Manufacturers are leveraging new technologies to shift from a reactive to a pre-emptive mode for service management and delivery. For example, a remote monitoring system (RMS) provides the service department of an industrial products company with an early indication of product failure. This enables the technician to locate the malfunctioning part and have it replaced before receiving a customer com-
- technology management for decision-makers
It became evident from the research that focusing on service as a strategy can bring a manufacturer significant benefits, including increased revenue and profits, reduced costs and improved customer experiences. As part of the research, further analysis was done on the financial performance of companies that have a growing and profitable service revenue. Of course, many elements affect share prices, and a company’s financial stability and profitability are, among others, important factors. However, the Capgemini research provides evidence to suggest that the share prices of manufacturing companies that have a best-practice service management business have outperformed those of their competitors. Reprinted with permission of Capgemini.
www.industry20.com
product update Gas Analyzer
Cordless Tool
M
H
idac Corporation has launched the Midac I-series of industrial gas analysis systems, which enable simultaneous analysis of multiple compounds from ppb to per cent levels. The product includes an array of proprietary cells, detectors and optical materials. The unit is portable, rugged and can be equipped with automated multi-point sampling systems with alarms and communications options. The product features up to 12 analog inputs for ancillary measurements such as mass flow and O2. Real-time concentration
display is available in graphic or tabular form. The unit also offers automatic temperature and pressure compensation with sample cell temperatures to 250°C. Midac Corporation Tel: +1-714-5464322 E-mail: info@midac.com Website: www.midac.com
itachi Koki India has launched a new cordless driver drill, viz., DB10DL, equipped with a 10.8-V lithium-ion battery (1.5 Ah). The battery can be recharged in 40 minutes. The product has a white LED light, which helps in illumination of a wide range of work areas. The unit includes a soft grip battery level warning lamp, which helps check the remaining battery power level. The other features of the product include a manual tightening mechanism for easy tightening of screws. The unit is suitable for applications such as constructing electric
F
ARO Business Technologies India has launched its line of personal Coordinate Measuring Machines (CMMs), viz., Faro Gauge. The product has a 48-inch working volume, is portable and acts as a cost-effective, 3-Dimensional, minimaltraining product for machinists.
B
anner Engineering has launched a new scalable wireless network, DX80 that can monitor and control I/O functions or provide serial communication at up to 56 locations. The new SureCross DX80 product line helps replace costly wiring in industrial, agricultural, power generation, water supply and waste disposal applications. The network helps control devices such as ultrasonic and photoelectric sensors, pumps, counters, thermocouple and RTD temperature sensors. The product is particularly designed for applications where wiring is impractical or unaffordable.All units have IP67 housings. Models with intrinsically safe and class I division 2 approvals are available for extreme environments.
The unit caters to key industries like aerospace, automotive and machine tools. It assists in various works like repair and refits, master moulding, tool set up and pre-cast mould. The product includes a programmer module, which enables to face challenges of accurate measurement. FARO Business Technologies India Tel: +91-11-4646 5656 E-mail: enquiry-india@faro.com Website: www.faro-gage.in
Band Saw Machine
I
TL Industries has launched a double column horizontal band saw machine with linear motion guide bearings for trouble-free operation. The machine is suitable for job shop as well as for production requirements. The unit is also suitable for mitre cutting up to 45°. The cutting capacity comprises solid steel bars - 180 mm round or square, pipe and structural - Ø 260, 260 x 260 at 90° and 45° angle cutting - Ø 160, 160 x 260 high. The machine includes a 75 mm centre distance worm geared motor of 2 HP from Bonfiglioli, Italy, for saw drive wheel. The upward motion of the cutting arm of the product is performed by hydraulic cylinder and down feed is regulated through a flow control valve as well as hydraulic feed regulator, which controls excessive feed automatically. ITL Industries Tel: +91-731-3044400 E-mail: itlindia@sancharnet.in Website: www.itl.co.in
june 2010 | industry 2.0
Hitachi Koki India Tel: +91-80-41170777 E-mail: ho@hitachi-koki.in Website: www.hitachi-koki.com
Scalable Wireless Network
Gauge
58
facilities, assembling machines, drilling in wood, tightening and loosening wood and machine screws. The tool is available with two batteries, one charger and a carrying case.
- technology management for decision-makers
Banner Engineering Corporate Tel: +1-800-8097043 Website: www.bannerengineering.com
Power Chucks
J
aws Manufacturing has launched power chucks in 2, 3, 4, 5, 6, 8 and 12-jaw types in closed as well as hollow types. The product is available in the range from 80 mm to 1000 mm in closed centre type and 135 mm to 800 mm in high speed hollow type. The chuck body is made of alloy steel. The hard jaws, base jaws and wedge are case hardened and ground to suit customer needs. The product includes a front opening design, which helps save cleaning and servicing time since the chuck does not need to be taken off from spindle. The other characteristics of the product include saving of clamp-
ing and de-clamping time, higher rate of material removal, minimal keying time. The Jaws Manufacturing Co. Tel: +91-20-26877841 E-mail: jaws@jawsindia.com Website: www.jawsindia.com
www.industry20.com
KUALA LUMPUR, MALAYSIA JULY 2 – 4, 2010
“NOW THAT YOU’RE A STRATEGIST...
What next?” This three day/two night conclave in Kuala Lumpur, Malaysia on July 2 - 4, 2010 will bring together an audience of 50-60 CFOs / Senior Finance Professionals to take a closer look at the conflicts arising from the rapidly expanding responsibilities of the CFO.
EXTENSIVE NETWORKING OPPORTUNITIES THEME
Now that you’re a strategist... what next?
AUDIENCE
50-60 CFOs / Senior Finance Professionals
FEE
Rs 20,000 all inclusive (fee includes round-trip airfare, accommodation, conclave, meals & entertainment)
TOPICS Leadership - Leading the self, the team & the organisation Refocusing on Revenue Top CFO Concerns for 2010 Risk Management Best Growth Strategies Cost of Going Green Sustainable Cost Cutting Driving Innovation To Re g P lease ister The New Boardroom Dynamic w V
FOR ENQUIRIES PLEASE CONTACT
Deepak Garg (+91 9999175100), Priyam Mahajan (+91 9899644950) or Shreya Pilani (+91 9958599142)
ww.c i foinst sit itute.c om/ conc lave
product update Area Imaging Scanner
H
oneywell India has launched the Xenon series of hand-held area imaging scanners. The new product combines two technologies, viz., Adaptus imaging technology and Omniplanar SwiftDecoder decoding software, that improves scanning performance, on almost all types of bar codes. The unit is available in two models, viz., the corded 1900 and Bluetooth-enabled 1902. The Adaptus imaging technology 6.0 helps read high
density linear bar codes, 2D bar codes and those found on alternative surfaces such as the screen of a mobile device. Besides, it provides image capture capabilities such as auto-cropping, resolution enhancement and sharpening filters. The product is designed to meet the needs of workers in healthcare, retail, manufacturing, postal/courier and government.
I
ndustrial Test Systems has launched a new eXact LEADQuick photometer for field testing lead, mercury and cadmium amounts in potable water. The product detects 3 to 500 µ/L (ppb) on site lead (as Pb+2) levels in either water (as low as 3 µg/L), soil (as low as 50 mg/kg) or paint (as low as 0.05 mg/cm²) with resolution of 1 µg/L and accuracy of +/-3 µg/L. The procedure helps detect EPA’s maximum containment level of 15 µg/L water levels with a 3 minute test time. Mercury is detected at 10 to 600 µ/L (ppb) with a resolution of 1 µg/L and accuracy of +/-6 µg/L, while cadmium is detected at 0.01 to 0.80 mg/L with 0.06 mg/L resolution. Industrial Test Systems Tel: +1-800-8619712, E-mail: its@sensafe.com Website: www.sensafe.com
Attenuator Module
june 2010 | industry 2.0
aeguTec India has launched ‘Chase Mini Feed’ (TERB/TFMRBE) for the die and mould industry. The new product includes a combination of moderate spindle speeds, fast feed rates and small depths of cut. The unit has positive helical cutting, which facilitates in cavity machining, face milling and end and axial plunge milling. The insert is designed in such a way such that cavities can be machined with accuracy during end milling. The product uses a three cutting insert in new generation grades. The lower approach angle allows the customer to machine at high feed rates of up to 3.5 mm/ tooth at less power. The ramping capability of the product is up to 4 degrees. The units include NickoTec coating. Taegu Tec India Tel: +91-80–27839111 E-mail: sales@taegutec-india.com Website: www.taegutec-india.com
Pressure Transducer
S
tellar Technology has launched a robust, heavy duty pressure transducer, viz., model GT100. The new product is designed as a solution for severe applications such as rocket engine testing. The unit features a cleanable pressure cavity and a stainless steel diaphragm, which can be replaced in the field as needed. The product has a standard output of 3 mV/V and provides linearity and hysteresis of 0.25 per cent across pressure ranges
from 150 psig to 20,000 psig. The unit also provides thermal isolation, which ensures performance over an operating temperature of -100°F to +300°F. The stainless steel sensor has built-in overpressure protection and low sensitivity to shock, vibration and thermal influence. Stellar Technology Tel: +1-716-2501900 E-mail: info@stellartech.com Website: www.stellartech.com
Differential Pressure Gauge
D
60
T
Honeywell International Tel: +1-973-4552000 Website: www.honeywell.com
Photometer
iCon Fiberoptics has introduced a new optical attenuator module for the GP750 test system, a fibre optic test system, which is able to automate optical switches and fibre optic attenuators with plug-and-play modularity. The product is suitable for production or research environments and for test set-ups that require power equalization between multiple channels, OSNR measurements or power adjustments for EDFAs. The unit is made for use with single mode fibre and can support up to eight fibre optic attenuators in a single 1-wide GP750 module. The maximum attenuation level can be specified as needed up to 40 dB of attenuation and can
High Feed Cutter
D
also be specified for narrowband or broadband use in the 1290 to 1330 nm, 1530 to 1570 nm and/or 1570 to 1610 nm wavelength ranges. DiCon Fiberoptics Tel: +1-510-6205000 E-mail: sales@diconfiber.com Website: www.diconfiberoptics.com
- technology management for decision-makers
wyer Instruments has launched a new series of PTGD piston-type differential pressure gauge, suitable for measuring pressure drop across filters, strainers, pumps, chillers and heat exchangers. The unit contains a piston-sensing element, which provides a wide offering of ranges from 0-5 PSID up to 0-150 PSID. All models have a pressure rating of up to 3000 or 6000 PSI depending on body material chosen. All ranges are dual scale of PSID and BAR. The product is available in aluminium or 316 stainless steel. The options available with the product include bottom or back
connections and alternate elastomer seals, glycerine fill, pointer follower and a contact output. Dwyer Instruments Tel: +1-219-8798000 E-mail: info@dwyer-inst.com Website: www.dwyer-inst.com
www.industry20.com
Confused
Which Gadget to BUY ?
Expert Reviews and Ratings powered by
...
test center India 's No. 1 Research Lab, Testing Tech Products since 2001
FIND Entire range of Laptops, Mobiles, LCD/Plasma TVs, Cameras and Camcorders Interactive Guru Gyan, Easy-to-understand Buying Guides.
COMPARE Specifications, prices, features and merchants for the products listed. User reviews and ratings. Prices on different online stores.
GET OFFERS from Dealers in your City over mobile on Hot Deals by Brands and Stores
... Log on to
www.consumermate.com
LCD / LED Please help
!
?
Which one should I buy
I’m happy
!
Online Buying Guide for Laptops | Mobiles | LCD/Plasma TVs | Cameras | Camcorders
product update Flow Meter
Laboratory Compounding Line
P
KP Process Instruments has introduced a flat type flow meter, viz., model DK10. The new product is suitable for flow measurement of process fluids due to a large selection of wetted materials including aluminium, bronze, cast iron, stainless steel, PTFE and PVC. Shafts made of titanium or Hasteloy as well as plastic are available for aggressive process liquids. The unit is available with one or two alarm level outputs as well as an analog, 4-20 mA output proportional to flow. The unit comprises a spring-loaded flap, mounted in a hemispherical chamber and deflected by the flow in the line. The
T deflection is directly proportional to the flow rate. The movement of the flap is transmitted via a shaft that is sealed off from the process to a mechanical pointer. The flow comes displayed on a scale.
Horizontal Machining Centre
riez has launched the P-REX scrap drum, which offers separation capabilities, during scrap recycling operation. The product also enables successful meatball recovery. The machine comprises features such as edge-to-edge separation, no ‘transfer point’ drop in
magnetic force and no decline in performance due to heat rise. The product is a permanent magnet, extending to the edge of the drum, and providing effective separation. The machine enables transfer of ferrous material and is also flipped from magnetic pole-topole, facilitating cleaner product recovery. The unit uses no electricity.
AG Industrial Automation Systems has launched a new modular Specht 500/630 horizontal machining centre, that transforms from mild to wild to suit any part, material or
machining strategy, viz., titanium/ aluminium, direct-load/automated cell and 3-axis/5-axis. The machine features MAG-built spindles, tool discs, direct-drive tables and pallet changers. The unit offers linearmotor or ballscrew drives, CAT-40 through HSK-100 tool interfaces, six spindle options, four control options and three 5-axis configurations. MAG India Industrial Automation Systems Tel: +91-80-40677000 Website: www.mag-ias.com
Dual Range Checker
M
etalfab has introduced its expanded line of CB1 blenders for continuous blending of two or more powders, pellets or flakes. The product is available in five models - with feed rates ranging from 150 to 2500 cu ft/hr. The unit features a mixing blade design that proportionally blends and mixes different types and varying densities of dry bulk materials fed from volumetric feeders, at a rate equal to the total rates, metered by the feeders. The product is constructed in a choice of carbon steel; carbon steel with special coatings; 304 or 316 stainless steel or other specified materials. The unit also features a standard A/C constant speed drive. Metalfab Tel: +1-973-7642000 E-mail: sales@metalfabinc.com Website: www.metalfabinc.com
june 2010 | industry 2.0
M
Eriez Tel: +1-814-8356000 E-mail: eriez@eriez.com Website: www.en-us.eriez.com
Blender
62
Technical Process & Engineering Tel: +1-570-3864777 E-mail: tpeguest@ptd.net Website: www.tpei.com
PKP Process Instruments Tel: +1-978-2120006 E-mail: sales@pkp.eu Website: www.pkp.eu
Scrap Drum
E
echnical Process and Engineering Inc (TPEI) has introduced the 1FRE laboratory compounding line, which can run trial of small sizes ranging from 1 to 2 lbs. The machine is designed for precision compounding of thermoplastics and some types of rubbers. The product can be configured for strand or underwater pelletizing or material can be taken from the mixer discharge to be moulded into plates. The unit provides production rates of up to 50 lbs per hour. The product runs with 240 volt single-phase power and incorporates a TPEI extended body E-mixer and J-block feed throat extruder.
- technology management for decision-makers
P
aul N Gardner Company has launched dual range checker for gloss and ultra high gloss measurement. The new product, viz., IG-410 measures ultra high gloss surfaces such as polished metal. The product is compact, lightweight and has a detachable probe design. The unit is battery operated and weighs 350 g. It provides fast measurement by simple one-touch operation. LED light sources provide <100,000 hours service. The product has two userselectable measurement ranges. Low gloss samples can be measured using the 0 to 100 range and high gloss samples
can be measured using the 0 to 1000 range. Paul N Gardner Company Tel: +1-954-9469454 Website: www.gardco.com
www.industry20.com
product update CNC Honing System
Automatic Lathe
S
unnen has launched a new SV400 series vertical CNC honing system for bore sizing of small and medium-sized gas/diesel engine blocks, oil/gas components, hydraulic/pneumatic parts, compressors, bearing sleeves, gear hobs and similar small or large multi-bore parts. The new product comprises a work envelope of 915 mm x 1015 mm and weight capacity of up to 90 kg. The unit also includes an optional tool-guide assembly and a variety of bore-diameter gauging systems, which facilitate automated honing of multi-bore blocks with high precision.
I
ndex Corporation has launched the TRAUB TNL18 sliding headstock automatic lathe and its variant - the TNL18P production machine. The new machines are suitable for medical component machining - providing surface finish in a single operation. The tool capacity of the TNL18 can be increased to 54 tool places through dual- and multi-holders. The turret indexing enables a fast chip-to-chip time of 0.3 s. Both the variants make use of the TRAUB compact shaft system, which enables mounting of tool holders in the turret. The TNL18 can be changed over to produce precision parts with or without a guide bush for long or short parts from bar up to 20 mm diameter.
The product features straightness sensing capability, which provides a display of the bore profile during the cycle. Sunnen Tel: +1-800-3253670 Website: www.sunnen.com
Index Corporation Tel: +1-317-7706300, Website: www.index-werke.de
Tilt Sensor
T
he Fredericks Company has launched an electrolytic tilt sensor with thin film technology. The sensor provides inclination measurement with arc second repeatability. The product offers an angle range of Âą30 arc minutes, less than 0.05 arc second resolution and less than 0.5 arc second repeatability at null. The thin film technology reduces unit cost and the hermetic seal design of the product provides a long operating life in extreme operating conditions. The product is suitable for applications such as geophysical monitoring, surveying equipment, aircraft avionics, machine tool leveling and other position monitoring and measurement instrumentation requiring inclination measurement. The Fredericks Company Tel: +1-215-9472500, E-mail: sjablonski@frederickscom.com Website: www.frederickscom.com
Machine Vision System
D
alsa Corporation has introduced a high resolution model of its BOA vision system, an integrated smart camera that comprises all the elements of an industrial machine vision system. The new product, viz., BOA M1280 provides images at a resolution of 1280 x 960 and operates at up to 24 frames per second. The product is suitable for manufacturers of all industries. The machine vision solution
64
june 2010 | industry 2.0
Acoustic Sensor
M
eggitt Sensing Systems has introduced a new line of Endevco acoustic sensors and instrumentation, designed for
use in automotive NVH, cabin noise, vibro-acoustic testing, appliance noise evaluation and wind tunnel testing. The microphones are available in 1/8-, Ÿ- and ½-inch diameters
and in free-field, pressure, lowcost array and random incidence types. The product offers a lower overall per channel measurement cost and is compatible with Isotron (IEPE-type) signal conditioning. The device can be used as drop-in replacements within existing accelerometer test system set-ups. Meggitt Tel: +44-0-1202-597597 E-mail: marketing@meggitt.com Website: www.meggitt.com
Density Separator is easier-to-use, flexible and incorporates multiple processing engines. The product offers embedded application software, which is set up through a standard web browser. The other features of the unit include rugged, easyto-mount enclosure and builtin factory communications.
Dalsa Asia Pacific Tel: +81-3-59606353 E-mail: sales.asia@dalsa.com Website: www.dalsa.com
- technology management for decision-makers
K
ason Corporation has launched a new vibro-air size/ density separator that employs vibratory screening and airflow to remove undersize particles and low bulk density materials, respectively. The product is suitable to separate fines and chaff from grain products; fibres, saw dust and wood flour from wood chips and shavings; fines, angel hair, strands and film scrap from plastic pellets and regrind; fibres, saw dust and wood flour from wood chips/ shavings and other undersize and low bulk density matter from onsize products.
Kason Corporation Tel: +1-973-4678140 E-mail: machsales@kason.com Website: www.kason.com
www.industry20.com
R.N.I. No. MAH ENG/2001/4796 Tech/MH/MR/SOUTH-127/2006-08