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A 99 MEDIA PUBLICATION
VOLUME 10
ISSUE 02
OCT 2010
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OCTOBER 2010 VOL 10 ISSUE 02 INDUSTRY 2.0 - TECHNOLOGY MANAGEMENT FOR DECISION MAKERS
green g reen Manufacturing
Product design ` 100
CAE tools help in shortening development cycles
An ImperAtIve to SAve the eArth
Business
Membrane systems’ demand is steadily growing
ManageMent
Procurement function is drawing more attention
editorial Vol. 10 | Issue 02 | ocTober 2010
Managing Director: Dr Pramath raj sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: r Giridhar Associate Editor: P K chatterjee Sub-Editor: reshmi Menon
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ThreaTs
R Giridhar editor@industry20.com
a
few weeks ago, the entire world learnt about a piece of malicious software code that can disrupt industrial control systems. Named stuxnet, this sophisticated Windowsbased collection of malware targets siemens’ Wincc/Pcs 7 scaDa software, and can reprogram programmable logic controllers (Plcs). While the exact process by which stuxnet destroys an industrial system is still being investigated, experts speculate that the code could initiate catastrophic physical failure by overriding pre-set operating limits, or malfunctioning critical lubrication and cooling systems. This 500 kb software can easily overcome standard passwords and controls, and can infect the control system through a compromised usb drive. The proliferation of stuxnet around the world, with 6000+ reported infections in India alone, has brought to the fore the issues surrounding the security of computer systems that are used to operate and manage factories. The ability to link formerly closed industrial control systems to the Internet has only increased the hazards. Now, even without physical access to the systems, it may be possible for malware creators to manipulate production systems. security experts fear that the techniques used in stuxnet will be replicated by other malware creators. so, expect a rash of new threats to industrial control systems—and be ready to combat them.
industry 2.0
While control system software vendors are rushing to fix the problems identified by stuxnet, manufacturing managers need to regularly audit and review the security of their control systems. In fact, risk mitigation and management policies should be put in place not just for automation systems—but also other software used in the manufacturing organization. For instance, do your engineering design systems have adequate authentication and protection to prevent loss of proprietary and confidential designs, either through deliberate or unintentional intent? Do your collaboration and communication systems (extranets) have adequate security to prevent data leakage and loss? how do you protect your designs, drawings and corporate data from sabotage and malicious intent of disgruntled employees? are you protected against hackers deliberately targeting your company for bid documents, customer lists, supplier agreements, etc.? While a number of technical solutions are available for both physical and electronic security to safeguard your manufacturing assets and intellectual property, the weakest link in the chain is often the human. how many people do have access to critical systems—and how aware are they about such threats? You should regularly educate and train your staff against these new digital threats— and update and enforce your digital security policies.
- technology management for decision-makers | october 2010
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contents facilities & operations 37 Rural electrification
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A report about the new energy service model, which provides power as well as basic amenities such as drinking water and lighting.
supply chain & logistics 40 Transforming logistics infrastructure India’s logistics network needs to evolve further to meet future freight needs in 2020 and beyond.
50 Supply chain strategies for post recession surge As global economy looks up, enterprises need to re-adjust their supply chain to meet the resurgence in demand.
information technology 53 ‘Procurement’ on CEO agenda When it comes to ‘procurement’ function, top managements are concentrating on overall value contribution.
cover story
22 Building A Sustainable Future
The green journey has commenced in the manufacturing industry.
manufacturing technology 28 Advancements in machine vision market
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Complex electronic systems in vehicles are giving rise to the growth of new solutions.
57 Designing vacuum systems
The machine vision systems market is witnessing giant strides forward.
Incorporating the services of a good vendor is critical while designing vacuum systems.
materials & processes 32 Growing opportunities for membrane systems
58 Achieving best product development
Membrane systems provide a comparatively easy way to wastewater treatment.
in conversation
management & strategy 55 Human machine interface technology
An exchange of design parameters between CAD and CAE tools enables consumers to get the best of the two worlds.
departments Editorial ......................................01 IndustryU pdate......................... 04 TechnologyU pdate.................... 12 Market D ynamics ...................... 14
36 Ramesh RamaduRai executive Director inDuStriAL BuSineSS 3M inDiA
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48 V a GeoRGe PreSiDent & ceo thejo engineering
54 RathinakumaR Vaidyanathan Director of ScM PLM & LogiSticS APPLicAtionS orAcLe ASiA PAcific
- technology management for decision-makers
Event Report ............................. 16 Opinion ...................................... 20 Advertisers’ Index ..................... 49 Product Update ......................... 60
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industry update IMF Raises Growth Forecast For India
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thus joined a number of independent agencies including the Asian Development Bank, Goldman Sachs and rating agency CRISIL, which recently raised their growth forecast for India. However, India’s official growth estimate for 2010-11 stands well below that of IMF at 8.5 per cent. The IMF estimates are based on market prices whereas official agencies calculate GDP growth at factor cost. Some difference is also due to IMF estimates being for calendar year while India follows an April-March fiscal. The latest IMF forecast also relied on the April-June 2010 quarter GDP numbers, which showed India’s GDP grew 10 per cent at market prices, including the 13.8 per cent industrial growth in July. The world economy is expected to grow by 4.8 per cent in 2010 before falling back to 4.2 per cent next year, IMF said. The IMF has observed a slowing down in 2011 due to weaker domestic demand and agricultural output coming back to normal levels. Picture Courtesy: www.photos.com
he International Monetary Fund, in its World Economic Outlook report, released recently, has raised its growth forecast for India in 2010. According to the report, Indian economy will grow 9.7 per cent this year, up from the July forecast of 9.4 per cent. However, the economy
is expected to slow down to 8.4 per cent in 2011. “Leading indicators comprising the production manufacturing index and measures of business and consumer confidence, continue to point up,” IMF noted in its report. Also, robust industrial output and strong macro-economic indicators are other factors for the higher growth forecast, the report said. Washington-based IMF has
event update International Industrial expo & Conference 2010
The event will have an exclusive display of industrial machinery, automation, automobiles and auto components, power, among others. Venue: Haridwar, Uttarakhand Tel: +91-172-2274801 E-mail: contact@industrialexpos.com Date: Website: www.industrialexpos.com 18 November to
21 November 2010
Rajkot Machinne tools Show 2010
The event will showcase engineering, machine tools, automation and automotive technology products. Venue: Race Course Ground, Rajkot, Gujarat Tel: +91-79-26851511 E-mail: kmg@kmgindia.com Date: Website: www.kmgindia.com 24 November to
28 November 2010
CPhI India 2010
The event will showcase pharmaceutical equipment and related services. Venue: Bombay Exhibition Centre, Mumbai Tel: +91-22-66122600 E-mail: info.india@ubm.com Date: Website: www.ubmindia.in
1 December to 3 December 2010
St Kinetics Sets Up Indian Subsidiary
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ingapore Technologies Kinetics (ST Kinetics) has established a wholly owned Indian subsidiary, LeeBoy India Construction Equipment (LeeBoy India), with a total investment of about S$50 mn. The establishment of LeeBoy India is part of ST Kinetics’ strategy to grow its speciality vehicles and services business to become a more significant player in the global road construction and maintenance equipment, excavators and off road dump truck segments of the construction equipment (CE) industry. India is currently the fifth largest CE market in the world, with
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annual sales of over US$2.4 bn in 2009 and an expected growth rate of over 19 per cent over the next five years. LeeBoy India is being set up as a greenfield operation to market, manufacture and support a range of ST Kinetics’ CE products, ranging from road construction and maintenance equipment to excavators and off road dump trucks. LeeBoy India will be located in Bangalore. Kamal Bali has been appointed as President of LeeBoy India. ST Kinetics is the land systems and speciality vehicles arm of Singapore Technologies Engineering.
- technology management for decision-makers
Glasspex India 2011
The event will showcase glass production and processing products. Venue: Bombay Exhibition Centre, Goregaon, Mumbai Tel: +91-11-26971056 E-mail: info@md-india.com Date: Website: www.glasspex.com
12 January to 14 January 2011
Imtex 2011
The event will display the latest machine tools and products. Venue: Bangalore International
Exhibition Centre Tel: +91-80-66246600 E-mail: imtma@imtma.in Website: www.imtma.in
Date:
20 January to 26 January 2011
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industry update Intergraph Releases Production Version Of SmartPlant enterprise Solution
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ntergraph has released the first production version of its SmartPlant Enterprise solution for the mining, port, power, pulp and paper industries, viz., the SmartPlant 3D Materials Handling Edition, to automate the design and modelling of bulk materials handling systems.
based automation application to help reduce design times and ensure higher quality projects through less rework and reconfigurations. Sinclair, Knight and Merz (SKM) and United Group Limited (UGL) Resources, provided industry inputs to Intergraph for the development of the new product.
SmartPlant 3D Materials Handling Edition helps automate the design of conveyor systems, processing facilities and transfer chutes to enable bulk materials industries to rapidly and easily create or expand facilities. The product includes specific functionality addressing conveyor layout and detailed chute design in a simple, user-friendly rules-
The key features of SmartPlant 3D Materials Handling Edition include conveyor belt line layout, transfer chute design, 3D display performance and design reuse. The new product automates much of the design process, allowing changes to be completed faster with detailed fabrication-level deliverables for chute plate design.
Think3 Collaborates With Ogihara
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AD and PLM software solution provider, Think3, has entered into a collaboration with Japanese die manufacturer Ogihara through its software ThinkDesign. Ogihara adopts 3D design at its third plant to simplify the production process of its products. The company manufactures metal stamping parts and dies for car manufacturers. It has been using ThinkDesign as its key 3D CAD software especially within its quality checking fixture section. Junichi Iizuka, Chief Machining Section, Ogihara, said, “It was not an easy job to switch from 2D to 3D in the design process. Prior to working on ThinkDesign, the staff members were comfortable working on a 2D platform and were hesitant to switch to 3D. The biggest challenge was to convince them
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of the effectiveness of changing to 3D and how ThinkDesign could benefit and ease their work.” Most of the staff being expert 2D CAD users were unwilling to move out of their accustomed 2D environment. Hence Ogihara utilized 3D CAD among the factory employees. The company decided to switch its key 3D CAD from other vendors to ThinkDesign. As a result, a number of 2D documents used in the factory reduced. The other good thing brought in by ThinkDesign was, launching a brand new product. “3D models made by ThinkDesign could be used directly in the manufacturing process which gives us the capability of making products with new raw materials.” A key feature of ThinkDesign was its API environment.
- technology management for decision-makers
agilent expands test Portfolio
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gilent Technologies has expanded its test and measurement portfolio into the modular domain with the introduction of 47 new PXI and AXIe products. The new products will enable new capabilities that were not previously available across analog, digital, RF, microwave and lightwave test technologies. The company’s lineup of 47 PXI and AXIe products includes digitizers, arbitrary waveform generators, digitizing oscilloscopes, digital multimeters (DMMs) and a range of switches. The modules include IVI-C, IVI-COM and LabVIEW(G) software drivers and enhanced input/output (I/O) libraries. Agilent Technologies is a measurement and technology company offering services in chemical analysis, life sciences, electronics and communications.
Geometric Releases email enabled tool
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eometric has announced the release of eDrawings Professional for NX version 7.2 with support for NX 7.5 to ease the sharing and interpretation of 2D and 3D product design data. The tool includes support for NX 7.5, functionalities to export Bill of Materials information from NX to eDrawings, support for measurement of assembly features, surfaces and 3D curves upgrade of eDrawings viewer version to eDrawings 2010 SP3. The new tool also helps generate ultra compact eDrawings for sharing over email; share and receive feedback on product designs with review-enabled eDrawings; collaborate with unlimited number of recipients; manage, track, and merge comments from different team members; measure part, assembly and drawing geometry; use Dynamic Cross Sectioning and Hide/Show/Move components for understanding assembly structure.
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industry update Road transport Sector Receives Impetus
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n a recent round table session on highway infrastructure organised jointly by Confederation of Indian Industries (CII) and Confederation of British Industries, Kamal Nath, Minister of Road Transport and Highways, urged the financial institutions to diversify their investments, and also invest in the equity of the road construction companies in India. Nath informed the participants about the rapid progress made in the highway development programme with the grant of 118 projects for a length of 7,500 km. According to him, by the end of March 2011, 22,000 km of work will
be in progress, and road construction has covered far flung areas like the North-Eastern states. The growth in the automobile sales in India has increased by 37 per cent—as a result of increase in the disposable incomes in the families in the rural and urban areas. Nath also called upon the financial institutions in UK to fund the road construction activities in India, and signed a Memorandum of Understanding (MoU) on cooperation in the road transport and highways sector along with his British counterpart Rt. Hon. Philip Hammond, Secretary of State, Department of Transport, UK.
Spheric’s Furnace Commences Operations
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According to Penn State University and Japan’s National Institute for Fusion Science, microwave furnaces typically use up to 80 per cent less energy as compared to conventional furnaces. They are believed to produce stronger, finer-grained parts with less deformation and cracking in as little as one-tenth the time. The continuous and batch microwave furnaces are suitable for the sintering of certain powder metal and ceramic materials that require high temperature processing. Spheric Technologies is conducting contract research on the production of ceramic materials for use in the natural resources development industry. Researchers will use the Continuous microwave furnace is suitable for sintering of certain powder metal and ceramic materials. Spheric Technologies system to synthesize and consolidate nanosized ceramic powders into multi-layer In Asia, continuous microwave furand monolithic ceramics, while retaining naces are used in the chemical synthesis of phosphors for electronics, lighting the properties associated with nanostructured materials and for other highmaterials and for sintering electronic temperature materials processes. components and other ceramic items. he Western Hemisphere’s hightemperature (1500°C) continuous production microwave furnace from Spheric Technologies has become operational at New York’s NanoMaterials Innovation Centre (NMIC), a wholly owned subsidiary of Alfred Technology Resources Inc (ATRI).
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- technology management for decision-makers
Cloud Computing Helps SMes Grow
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n a recent event, titled, ‘Benefits of using cloud computing for business growth’, organized by Cluster Pulse—a development agency engaged in implementation of Cluster Development initiatives, demonstrated the Microsoft Online Services—Microsoft’s Cloud Computing offerings. The event was held in association with Federation of Andhra Pradesh Chamber of Commerce (FAPCCI), Andhra Chamber of Commerce and Bulk Drugs Manufacturers Association of India (BDMA), Dhruv Soft—a Microsoft Online Services Partner. Highlighting the benefits of Cloud Computing and IT and advising the members to make use of the services offered under it, Sekhar Agarwal, President, FAPCCI, said, “The major industries have grown and are managing to remain on top with the help of IT only. They were able to invest (in IT) while SMEs cannot. Now similar services are available for SMEs without capital investment on pay per user basis.”
BHeL, SPX Sign agreement
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harat Heavy Electricals Limited (BHEL) and SPX Heat Transfer, a subsidiary of SPX Corporation, have signed an agreement for the design, engineering, construction and installation of the BARH Phase II projects. These projects, worth $18 million, are being built for the Indian energy company National Thermal Power Corporation (NTPC). Being a part of BARH II project, two new coal-fired power plants will be built in Bihar. To enhance the efficiency of these power stations, 20 new feedwater heaters will be designed. According to the plan, the feedwater heaters will be manufactured in Tilsa, Oklahoma and then it will be shipped to India.
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industry update auto Component Production to Double
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ndia, being one of the world’s fastest growing automobile industries, is projected to provide a solid growth platform for the auto component industry, said a recent research report, titled, ‘India Auto Component Market Analysis’, by RNCOS. The report states that over the past few years, the auto component industry has gained a significant growth momentum and the recent spate of successful model launches and higher export demand for passenger vehicle segment are benefitting the auto component sup-
pliers. Therefore, due to the increasing demand for compact cars as well as commercial vehicle segment, the auto component market is expected to grow at CAGR of around 14 per cent between 2010-11 and 2013-14. The study further states that auto component production will double in 2013-14 in comparison to 2009-10. Sales, export and import are expected to grow at a rapid pace in future. Various government initiatives are also likely to play a critical role in the market growth, the report said.
IndiaPack Showcases Packaging Machinery
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A number of companies from Germahe Indian Institute of Packaging ny, France, Netherlands, Japan, China, (IIP) recently organised the inKorea, Taiwan, Thailand and other counternational packaging exhibition, tries presented their latest products. Indiapack 2010 in Mumbai. The event The event also saw the inauguration was inaugurated by Ashok Sinha, IAS, International Summit for Packaging Secretary, Ministry of Food Processing Industry (ISPI). The Industries, Governtheme of the two-day ment of India. The summit was ‘Packagfour day international ing Innovations and Business-to-Business Sustainability’. (B2B) exhibition on The theme for packaging and allied the first day was industry was also ‘Sustainability Day’, attended by Keith while the second Pearson, President day was designated – World Packaging as the ‘Innovations Organization (WPO), Day’. Sanjay Bhatia, ChairAshok Sinha, IAS, man IIP and N C Subodh Kant Sahay, Minister for Food Processing Industries, inaugurates the Secretary, Ministry Saha, Director, IIP. International Summit for Packaging of Food Processing The event was Industry in Mumbai. Industries, Governsupported by the ment of India, said, Ministry of Commerce “In the Asia Pacific region, packaging and Industry, Ministry of Food Processindustry is the 3rd largest market and ing Industry, Office of Textile Commisis growing at an average rate of 5 to 6 sioner, Ministry of Textiles, Government per cent. In India, total turn over from of India. the packaging industry is Rs 65,000 The main objective of the event was crore. The average growth rate is 15 to showcase state-of-the-art packaging per cent. It is further estimated that technology and machinery, products the total growth will increase to Rs 725 and services along with international companies providing effective packaging billion by 2015. Hence, packaging is considered to be sunrise industry in the solutions in terms of costs, productivity world market.” suitability and quality.
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- technology management for decision-makers
alfa Laval Bags tata Chem Order
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lfa Laval has received an order from Tata Chemicals for heat exchangers to be used in evaporation systems for production of salt in India. The order, worth about SEK 60 million, is scheduled for delivery in 2011. The heat exchangers will be used in evaporation systems to concentrate sea water brine for production of table salt and concentrated brine for caustic soda production. The freshwater generated during the evaporation process will be further used as process water. Tata Salt was launched in 1983 by Tata Chemicals as India’s first packaged iodized salt.
Bry-air Prokon Wins CtI award
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ry-Air Prokon has bagged the CTI ‘Start-up label’ for ‘Ready for sustainable business development’ from the Swiss Confederation’s Innovation Promotion Agency, CTI. Based in Chiasso, Switzerland, Bry-Air Prokon specializes in non-contact moisture measurement technology. Bry-Air Asia was initially an angel investor to Prokon, but later acquired the technology and is now known as ‘Bry-Air Prokon.’ CTI, the innovation promotion agency is the Swiss Government’s premier tool to support knowledge and technology transfer between businesses and universities. CTI start-up was initiated in 1996. CTI’s main activity is funding of research and development projects carried out by business enterprises in collaboration with public research insitutions. The funding covers around 50 per cent of total project costs. Bry-Air, based in India, specializes in designing and manufacturing of desiccant-based engineered dehumidification systems capable of handling applications such as pharmaceutical, food processing, electronics industry and cold stores.
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technology update
Developing Cheaper Lithium Battery Materials New research shows that pricey lithium battery materials can be produced cheaper and faster using industrial microwave furnace systems.
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rizona-based Spheric Technologies, a high temperature microwave technology innovator, has introduced a new production process for a key cathode material utilized in lithium ion batteries— lithium ferro phosphate (LFP). The new process uses precursors and applies microwave in the drying and synthesis stages. This helps in creating a phase pure product, which requires little, if any, refinement. The process also helps in eliminating costly refining required by other processes. Microwave reduces production time from more than 10 hours (with conventional systems) to 30 minutes, producing savings in energy consumption, equipment
utilization and cost. Spheric’s AMPS microwave furnace is configured for the production of LFP, among other applications. The Freedonia Group has estimated LFP demand to be at $135 million in 2012, growing to $330 million by 2017, witnessing a CAGR of 20 per cent. Current material prices range up to $60 per kilogram, with much of the material produced in Asia. At a recent American Ceramic Society conference on The Material Challenges in Alternative and Renewable Energy, researchers had reported that microwave techniques and advanced microwave furnaces capable of processing commercial volumes of lithium battery materials are available
in the U.S. “These systems [from Spheric Technologies] offer the opportunity of scaling up developmental results to commercially viable production levels,” the researchers opined. Lead author on the research, Karl Cherian, Ph.D., said that while most microwave-assisted LFP synthesis has involved laboratory systems, the availability of advanced larger scale batch and continuous high temperature microwave systems opens the door to full-scale commercial production. He observed that Spheric Technologies’ system (HamiLabV6) and continuous pusher type system (AMPS) provide computerized temperature programming in the 450-1600 degrees C range, with adjustable temperature ramp-up rates and programmable hold stages and hold times. “This provides system versatility that is required to process various materials; it is especially valuable for microwave assisted chemical synthesis of inorganic materials and battery electrode materials,” said Dr Cherian.
A Step Toward Lead-free Electronics
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research carried out at the UK’s synchrotton facility, Diamond Light Source, by the engineers from the University of Leeds, reveals the potential of a new manmade material that could help pave the way towards 100 per cent lead-free electronics, which will replace lead-based ceramics in many electronic devices like inkjet printers, digital cameras, hospital ultrasound scanners and diesel fuel injectors. Now lead-containing materials in electronic and electrical devices is discouraged by the European regulations. Ceramic crystals known as ‘piezoelectrics’ used to generate electricity by applying pressure and vice versa are currently exempt from these regulations but may be included in future. Piezoelectric crystals can produce
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high voltage in gas igniters on oven and fires, generating a spark across a small gap that lights the fuel, when they are hit with a spring-loaded hammer. Lead Zirconium Titanate (PZT), a ceramic crystal is the most common piezoelectric material. At the Diamond Light Source, University of Leeds, with the use of a high intensity Xray beam, the researchers now show that a simple, lead-free ceramic potentially is able to do the same job as the PZT. Tim Comyn, lead investigator on the project, said, “With the ‘Extreme Conditions’ beamline at Diamond we were able to probe the interior of the lead-free ceramic- potassium sodium bismuth titanate (KNBT) to learn more about its piezoelectric properties. We could see the changes
- technology management for decision-makers
in crystal structure actually happening while we applied the electric field.” “PZT is the best material for the job at the moment, because it has the greatest piezoelectric effect, good physical durability, and can be radically tailored to suit particular applications,” said Adam Royles, PhD student on the project. “The lead-free ceramic that we have been studying is lightweight and can be used at room temperature. This could make it an ideal choice for many applications.” In medical field a picture is made, when the echoes of the sound waves generated by the PZT, used in ultrasound transducers, are sent to the computer. Piezoelectric ceramic is a solution for a clean sustainable energy source in future, as it has a great energy harvesting potential.
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market dynamics
Signs Of Cooling The HSBC Purchasing Managers’ Index (PMI) posted 55.1 in September, decreasing from August’s reading of 57.2.
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he latest PMI (55.1 in September) has pointed to a marked strengthening in business conditions in the Indian manufacturing sector, although the extent of the improvement is believed to be the weakest in ten months.
New orders
There has been a marked increase in new order volumes in September, with panelists attributing this to better global economic conditions. However, growth in overall new business intakes slowed for a second successive month to the weakest since November 2009. Similarly, new export orders also rose at a slower rate in September. The overall increase in new business supported a rise in output. Although reflective of the slowdown in new order growth, the latest expansion in production was also weaker. A further increase in backlogs of work at manufacturers in India suggested
Key
points
that pressures on production capacity continued. Stocks of finished goods fell marginally, due to higher new order volumes.
Employment
Despite gains in new orders and outstanding business, employment in the Indian manufacturing sector decreased in September for the third successive month. Anecdotal evidence suggested that employees leaving companies were not being replaced. However, the decline in staffing levels remained marginal.
Stocks
Purchasing activity rose markedly during September, which is reflective of sustained growth in new orders and output. Meanwhile, manufacturers also continued to increase stocks to accommodate higher production requirements.
Input costs
The September data also signalled a marked increase in input
costs faced by manufacturers in India. Input price inflation has been sustained for a year-anda-half. A further increase in raw material prices predominantly drove the latest increase in costs, which was faster than that indicated in August. Meanwhile, output prices increased at a weaker rate in September, with strong competition for new business, limiting the extent to which charges could be increased. Commenting on the India Manufacturing PMI survey, Frederic Neumann, Co-Head of Asian Economics Research, HSBC, said, “The manufacturing sector shows signs of cooling after a red-hot pace earlier in the year. Capacity constraints may be partly responsible for this, in addition to the fading fiscal stimulus. Overall, however, growth remains solid, and the monetary authorities cannot afford to let down their guard just yet.” Neumann added that though output price pressures eased, firms were reporting accelerating input costs. “Moreover, backlogs of work remain high, suggesting that there is still little slack in the industrial sector,” he concluded.
HSBC India Manufacturing PMI
►New order growth remained marked, but slowed for second successive month. ►Strong rise in output failed to boost employment. ►Rising raw material prices drove input prices higher at stronger pace.
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- technology management for decision-makers
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event report
IPPMA Members Stress On Tax Restructuring The amount of money lost in corrosion is a national waste, besides being damaging to the aesthetics and image of the nation. Paints’ consumption need to increase in the country.
(L to R) D.L. Gupta, Co-Convener; Maharaj Singh, Secretary; Ranjit Singh, Convener; Anurag Angrish, Chief Guest; Dr. H.B.S. Lamba, IPPMA President; Nitin Khanna, Chairman, Delhi/ NCR; K.K. Taluja, Chairman,Haryana Suresh Ji, Motivational Speaker, during the conference.
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he Indian Paints and Powder Coating Manufacturers Association (IPPMA) recently organized their first Annual Conference in Mumbai. Industry veterans in the event opined in concord that there is an urgent need to bring down the tax burden and recategorise it from ‘luxury’ to ‘necessity in infrastucture’. The association is the brainchild of the recipient of the Peacock Award 2009 Dr. H.B.S. Lamba, present President of IPPMA and Head of Wembley
Procurement To Pay
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n a recent event in Mumbai, titled Procurement to Pay (P2P) organized by the International Quality and Productivity Centre (IQPC) India, several speakers from the field of procurement delivered their presentations. Nikhil Anant Parulkar of Mahindra Special Services Group delivered a deep insight on the risk factors in outsourcing, which was a very timely caution note for the business runners.
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Paints and Chemicals. Nitin Khanna of Krishna Resins and Pigment is the Chairman of IPPMA, and Ranjit Singh, a Partner of Balsons Paint Industries (India) is its Convenor. Being less than one year old, IPPMA has 400 members and 99 per cent of them are manufacturers—although mostly from Northern India, the association has been set up to addresss the problems of the small and large scale paint and powder coating manufacturer from all over the country. According to Khanna, under the present
conditions, only the large scale manufactures get to be heard, whereas the small manufacturers’ pleas and protests go unheard. Being categorised as a product in the ‘luxury’ segment, the industry is being taxed at 13.5 per cent at present, whereas it was 4 and 8 per cent in the previous years. IPPMA members want the Government to lower the tax levied to the level of four per cent. He points out, “13.5 per cent sales tax and 3 per cent excise tax work out to Rs 3,200 crores in direct tax and Rs 6000 crores additional sales tax. Once the taxes are reduced, the turnover will increase, and this will fetch the Government an additional revenue of Rs 22.000 crores. Paint needs to be added as a necessity.” Dr. Lamba feels, if such a step is taken then the consumption of the paints will increase in the country. Presently the per capita yearly consumption of paints in the country is 1.33 litres against that in Europe as 16 litres. IPPMA, together with Micro & Small Scale Enterprises (MSSE), is setting up a laboratory at a total cost of Rs one crore, with 80 per cent contribution from MSSE and 20 per cent by the association. Expected to be completed within six to eight months, the laboratory will be headed by Prof. A. S. Khanna of IIT, Mumbai. It will help the association members test all the raw and finished materials.
Nikhil pointed out that with globalization, global risks will be included in the companies’ list of risks. Among other speakers, Sanjay Kadkol, GM— Delivery, Zycus, drew attention through his lively presentation highlighting top three focus areas for procurement managers. Sanjay’s focus on the benefits of transforming the current procurement methodology opened up a new window in front of the attendees. He also showed the steps for procurement transformation.
- technology management for decision-makers
Sanjay Kadkol GM—Delivery, Zycus
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event report
GST Implementation Possibly In October 2011 Experts find delayed implementation of GST will allow manufacturers to gear up in a better way for the new tax regime.
(L to R) Ashish Gupta, Senior ManagerInternal Audit, DIESL, Juzar Mustan, Chief Executive OfficerLogistics, AFL Logistics, Clifford Patrao, Vice President, Strategy and Transformation, IBM and Deven Prabhu, Head-Express Transportation, Future Supply Chains are discussing the post GST advantages.
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n a recent event in Mumbai on ‘India after GST’ organized by the Supply Chain Leadership Council, the Commissioner of Customs at JN Port, Nhava Sheva, Sushil Solanki, who is also a part of the GST committee, indicated that GST is most likely to come into force on Oct 1, 2011. According to Solanki, contrary to the general belief, the evolving Indian GST framework is one of the most forward looking out of all 130 countries—where GST is already in existence. While replying to the questions raised by the attendees in the event on the future of Octroi in Mumbai, he indicated that it is most likely to stay. Although the existing practice of collecting octroi is an inconvenient practice for the fleet runners and users, and weakens logistics and supply chain efficiency in the state, octroi
october 2010 | industry 2.0
collections in Mumbai is as high as Rs. 8,500 crores, thus it is a challenge to arrive at a decision on its abolition. The Nhava Sheva Customs’ Commissioner also informed that it has been determined that the only IT system comparable to what will be needed to handle the volume of data post GST implementation is the one handling our stock exchanges, and therefore providers of IT platform to our stock exchanges have been roped in the process. While commenting on the preparation for GST, Amit Kawoor, Head of Logistics & Customer Operations, Marico, informed that the preparatory process takes at least 8 to 9 months to be able to fully ingest this opportunity. Rakesh Sinha, COO of Godrej Consumer Products, explained that GST will lead to a complete rehaul of regional warehouses
- technology management for decision-makers
and CFA locations—based on total delivered cost mechanism independent of state boundaries. He explained how GST will dissolve the state boundaries as far as keeping warehouses is concerned, and also shorten the route from factories to distributors. Pepsico’s Deepak Gupta revealed that after being completely GST ready, his company would save at least five per cent in supply chain cost. Juzar Mustan, CEO of AFL Logistics, shared his findings on how an as-is network of an existing large manufacturer comprising 112 primary freight lanes can be successfully served by 39 primary freight lanes through a GST aligned hub-and-spoke system resulting in a halving of inventory levels at branch level and a saving of eleven per cent on supply chain cost. Commenting on the advantages of GST, Ashish Gupta of DIESL said, “Whatever is not under GST will be expensive.” He focused on the areas where cost optimization will be easier in the post GST days. Prem Verma, CEO of Tata Motors Distribution Company, advised his peers in the gathering to be practical about shifts in their supply chains—keeping in mind the complexities and peculiarities of the Indian business landscape. He said, “Things are often grayer than black or white”. Clifford Patrao, Vice President of Strategy and Transformation, IBM, said, “GST is an opportunity for supply chains to move towards being externally competitive.” He shared several case studies on how effective use of technology has helped companies in India in optimizing their supply chains. Parind Mehta, Partner (Indirect Tax), BSR & Co., drew attention on how in the post GST days the basis of taxation is going to change.
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opinion
Scaling
Newer HeigHts The metals industry plays a significant role in any economy because of its influence and application in a number of sectors. An insight into the importance of the metals industry, its drivers and challenges. producers both in China and in India. Non-ferrous metals industries include a variety of metals like aluminium, copper, zinc, lead, tin, etc. Among the non-ferrous base metals, aluminium, the ‘poor man’s silver’, has found wide application in various sectors like automotive, aviation, railways, electricity, etc., due to its properties such as light weight, good conducting capabilities and long durability. Overall, the non-ferrous metals industry in Asia is yet to exploit its full potential.
A steel production unit
Growth drivers
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he metals industry plays an important role in any economy because of its influence and application in a number of sectors such as chemical, engineering, agriculture, automobiles, infrastructure, electronics and other manufacturing sectors. Frost & Sullivan has recently released a study on manufacturing excellence in the metals sector, which delves into the importance of the metals industry, its drivers and challenges and illustrates some of the good manufacturing practices in this sector.
Growth drivers seen in the metal sector are Government policies, consolidation, favourable conditions and growing demand and consumption. Under Government policies, it has been noted that up to 100 per cent Foreign Direct Investment (FDI) is allowed under the automatic route for mining of metal ores in India. Moreover, thrust on infrastructure by the Government of India (GoI) is expected to boost steel demand and the Government has earmarked 46 per cent of the total plan allocations in the Union Budget (2010-11) towards infrastructure development.
Asia market
Mergers & acquisitions
Asia accounts for nearly 56 per cent of the total world crude steel production. India is the primary producers’ market in the ferrous industry. However, the industry is highly fragmented in the downstream sector of secondary
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Says Vinod Shankar, Consultant, Manufacturing & Process Consulting Practice, Frost & Sullivan, South Asia & Middle East, “The Indian subcontinent, along with other parts of Asia, is rich in enormous reserves of metals and minerals
- technology management for decision-makers
such as iron ore, bauxite, etc. This, along with its close geographical proximity to the Middle East, makes Asia one of the most favoured destinations for metal producers.”
Per capita consumption
India’s per capita consumption of steel is around 48 Kg, while that of aluminium and copper is around 0.8 Kg and 0.4 Kg, respectively. However, per capita consumption of key metals has been increasing with the booming economy. In addition, low penetration of key metals clearly indicates high growth potential and an opportunity for investors to exploit the untapped market.
Challenges
The challenges faced by this sector are remote locations of mineral deposits, protectionist tendencies by other economies, rising cost of raw materials, highly unorganized metal producers sector, adoption of latest technologies still in nascent stages, lack of adoption of scientific mining techniques and inadequate availability and poor quality of coking coal. To overcome the challenge of poor quality of coking coal, industries are importing high-cost coking coal from Australian and Indonesian coalfields. Despite largescale imports, demand for coal has continuously outstripped supply. The non-ferrous industry sector is facing a serious threat of shortage of resources, due to which countries like China and India have become net importers of non-ferrous metals. With rapid increase in the consumption pattern of metals, recycling of metals is crucial in meeting forecast metal demand.
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cover story
Building A SuStAinAble
Future Green manufacturing is the only way to sustainability. All manufacturing companies have to adopt green processes, technologies and practices in all their activities. Against all myths, green journey starts with just a shift in paradigm, and evolves further in due course. by p. k. chatterjee
Alstom employees work on nuclear steam turbine rotor at new state-of-theart clean power Chattanooga (USA) factory. The recently inaugurated facility was expanded in line with the requirements for Leadership in Energy and Environmental Design (LEED) Gold certification—a US benchmark for high performance green buildings. In this building, demolition debris was re-used, insulated sidings and roofs were installed, skylights will substantially reduce electricity consumption for lighting, process heat will be recovered to improve the efficiency of the HVAC system and rain water will be collected to irrigate the landscape. Picture Courtesy: www.power.alstom.com
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ummins Generator Technologies (CGT) manufactures brush-less A. C. Generators (Alternators). While setting up its Ranjangaon (near Pune) facility over an area of 11 acres, CGT took special care of making it a completely green plant. They planted 3000 trees on the campus, and used eco-friendly materials in construction. Also, provisions were made for energy conservation to water harvesting and recycling systems. As per the company, “Every aspect reflects CGT’s concern for environmental conservation.” Motorola’s Indian manufacturing facility at Sriperumbudur near Chennai too was built on the concepts of green manufacturing sites. They have implemented rain water harvesting capable of collecting about 10,000 kilo litres of water, and have a green belt surrounding the premises covering approximately 120,000 square feet. In India, today there are many such instances of designing plant or factory premises keeping an eye on environmental conservation. However, innovative companies are now realizing that green manufacturing is no longer just an issue internal to a manufacturing company, and a major chunk needs to be established over the complete supply chain of the firm, and beyond the site of manufacturing. Thus, today the focus is widening beyond the production plant, process and people involved—and literally spreading beyond the traditionally known horizon.
Green manufacturing in reality
Although green manufacturing is a hovering catchphrase in the manufacturing environment, in today’s ever changing scenario, no single definition or description can completely explain the gamut of the concept. However, everywhere the target is towards minimizing wastes, protecting our environment from further deterioration (pollution) and preventing depletion of natural resources—basically to find out the sustainable ways to continue the manufacturing business. How does it translate to practical manufacturing environment? Well, green manufacturing is a journey towards shedding off all the manufacturing practices involving plants, raw materials, processes, and products—that though lead to apparent (may be too high) profitability but permanently weaken the potential of running the business in future as they cause irreparable damages to the nature. Thus, green manufacturing management is an approach to save the environment (nature), which is
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absolutely essential to safeguard the existence of our future generations. And, today the concept of green manufacturing is no longer a philosophy of pushing—but a reality of pulling among the manufacturers worldwide. Some are leading the race being in forefront, others are lagging behind, but the paradigm shift is noticeable among all.
Common primary focus areas
When we hear about green manufacturing practices or give an internet search on the topic, a few major areas always appear first, which are common to all manufacturers worldwide. However, there are other areas specific to each industry where green manufacturing has tremendous potential, and is being practised too in some manufacturing companies. At present, reduction of carbon footprint [the total set of greenhouse gases or GHGs that includes Car-
SoCietal obliGation For us in corporate life, ‘lean’ is a business compulsion, but ‘green’ is a societal obligation. If long-term sustainability is a question mark in the context of climate and environment changes, it has to be addressed wholeheartedly by industry as a key member of civic society.”
PradeeP Bhargava ManagIng DIrector, cgt – InDIa bon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6)] occupies the topmost position in the agenda of green manufacturing, and encompassing them there are targets for lowering fuel and energy consumption, optimizing heat production and utilization, controlling vehicular movements and pollution etc. Contextually, according to the Carbon Trust, “A carbon footprint is measured in tonnes of carbon dioxide equivalent (tCO2e). The carbon dioxide equivalent (CO2e) allows the different greenhouse gases to be compared on a like-for-like basis relative to one unit of CO2. CO2e is calculated by multiplying the emissions of each of the six greenhouse gases by its 100 year global warming potential (GWP).
Some good practices around the world
As already indicated, there are different coexistent viewpoints centering around the core target to prevent
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cover story
SavinG throuGh Green faCtorieS The emphasis on going green is not just a passing trend, it is definitely here to stay. With many national and international companies recognizing the benefits of being eco-friendly, the green industry is growing by the day. though companies are now realizing the need to go green, many think cost of going green is prohibitive. In actuality, the figures today indicate that as a result of measuring, monitoring and acting green, factories are saving approximately 20 to 200 times the cost of the program.”
david horlock global vP-auDIts & InsPectIon, Intertek water, air and employee health screenings complying with strict international standards. In their drive to be a green manufacturer, Ronn Motors Company, an automotive design, development and manufacturing firm, hires and utilizes independent, green, certified, local contractors that have made extensive use of green materials in the construction process wherever possible. Haldex Concentric manufactures around three million oil, water and fuel pumps for commercial diesel engines, supplied globally to major engine manufacturers from four concentric facilities in Birmingham (UK), Chicago (USA), Pune (India) and Shuzhou (China). The company’s R&D programme has led to some innovative new products that significantly improve vehicle fuel economy and deliver major reductions in C02 emissions. One of their achievements is a coolant pump capable of achieving 74 per cent peak efficiency compared to a previous maximum of 60 per cent. This efficiency can improve C02 emissions by at least 0.2 per cent, which, in a typical application, would equate to a net annual reduction in C02 of 75.6 kg. per vehicle or a global saving of 75,600 tonnes p.a., over the one million pumps of this type supplied by Haldex Concentric in the course of a year. The company has also instituted a comprehensive set of initiatives to ensure that everyone in the organization is aware of both direct and indito emerge as the world’s leading manufacrect environmental impacts, creating turing centre, focus will have to be on athigh efficiency in line with a compretracting new technologies of the future such hensive road map for sustainability. as ‘green manufacturing’ and developing the skills of According to EcNow Tech, a comindian workers.” pany developing and marketing recycled, reusable and compostable anand Sharma products for events, consumers and MInIster oF coMMerce & InDustry business, “When a product is manugovernMent oF InDIa
further deterioration of the non-renewable resources and environment. Obviously, the list of focus areas too varies from company to company, excepting some basic areas like energy and water conservation, GHG emission control and reduction of harmful effluents and exhausts. It all depends on the type of manufacturing, materials used, final products, material handling and storage methods, logistics and so on. Let us now see some of the good practices from the manufacturing companies around the world. Amana Tool manufactures carbide cutting tools. Their main production facilities recycle all waste products, including metals, oils and leftover raw materials such as carbide powder, reducing the cost and environmental impact of the tool manufacturing process. Their factories feature state-of-the-art clean air systems that prevent toxic emissions into the environment. They also practise energy conservation to lower the company’s energy consumption at workstations and compressor locations throughout each facility. To ensure that Amana maintains the highest environmental standards, the company undergoes periodic waste
leadinG in manufaCturinG
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- technology management for decision-makers
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need for GoinG Green Q: How is the importance of green manufacturing being felt among the Indian paints and pigments manufacturers? a: there is an increasing demand for green paints, as the users are getting educated about environmental hazards caused due to volatile organic compounds’ (VOCs) emissions, etc. So naturally, the manufacturers are showing awareness towards making green paints, such as acrylic-based paints. the rise in the acrylic paints market is a good indication of the growing awareness amongst society as well as manufacturers.
Q: What are the areas where stringent focus is being put to make the process and product(s) green? a: i can explain about our focus in making process and product green. We have developed products that help in making construction without water, river bed sand and cement, enabling saving in time, labour and efforts in construction process. We have no effluent wastes in manufacturing. We also practise minimum energy usage and value additions after usage. these have helped us in offering products that prevent carbon emissions, and help in reducing global warming as well as saving 100 per cent water in construction—as the products are self-curing. i think today the focus is stronger in low or no carbon emission and fast track options, which save time and in turn help in fast recovery of money, invested in the business. Q: Do you feel adopting green maufacturing processes is a costlier proposition, at least during the initial days? a: Yes, to a certain extent. because it involves focus on low energy consumption in terms of human as well as fuel energy,
prices. though Government subsidies are available on solar panels etc., probably the process is tedious, so not many opt for it. When the market is big the production will always be affordable, and the green options will spread amongst suppliers as well as users.
ShilPa JoShi, DIrector green buIlD ProDucts (InDIa) while we are highly dependent upon activities involving high energy consumption. For example, using solar energy for electricity generation is one of the most green options of energy resource, and most suitable in indian geographical conditions, but it needs a huge initial investment. the returns on investments are considerably slow. this is not possible in initial conditions and especially for SMes. it needs R&D to focus upon development of green products and systems, which again invites lot of investment. but nevertheless it is a need for the day. build Green—live Green! Q: How should Indian manufacturers sustain and spread vertically and horizontally the green practices? a: i think we already have few systems coming up with green options like battery (wet cells) operated automobiles, alternative fuels, solar electricity panels etc. these options need to be made compulsory for use with Government support, so that they are available at affordable
factured, transported, consumed and composted locally—it creates less waste and has a smaller carbon footprint. In sharp contrast, large distribution networks operate out of large hubs, use lots of energy and have significantly larger carbon footprints. Petroleum based plastic products have an inefficient life cycle. The life cycle consists of sourcing crude oil, refining the oil, polymerizing the refined oil and creating pel-
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Q: Green processes reduce work hazards, and social and environmental harms by reducing pollution, waste etc.....What is your observation on this? a: Our country has ample manpower, very cheaply available. Moreover, extensive population and lack of education in masses, low or no employment make human labour easily available, including child labour. As such, there is no value for human life and particulary quality life. Hence, i think very few industries are really concerned about reducing work hazards, reducing pollution etc. Due to globalization some improved practices are being installed, but the proportion is reasonably low and usually found in MnCs and urban areas. Q: What is your suggestion to Indian manufacturers? a: i think green products are the need for the day and green practices are mandatory for a better tomorrow, rather to reduce hazards that can endanger our very existence. it may become statutory some time to enforce the international standards in safety etc., in india too. but green practices, which save the environment and help in building a better surrounding, should be voluntarily adopted by manufacturers for our own benefit. We should stop thinking about individual benefits, and think of our next generations for whom—we should give a better environment than today.
lets, manufacturing plastic products then disposing of them in the landfill—where they sit for thousands of years.” The company’s goal is to break the cycle and create a locally sourced, closed loop life cycle.
role of new technologies
Human civilization is a one way journey towards raising our living standard in all its senses. Thus, there is
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cover story no question of looking back. For example, we cannot think of living without electrical gadgets, rather our target is to reach electricity to all. So, we have to produce more megawatts of power. But how to control carbon footprint then? Green technology is the only answer to this question. However, right in one day all fossil power plants cannot be replaced by wind generators or solar cells, similarly, all goods carrying plastic pallets cannot be replaced by wooden pallets that are manufactured from recycled forest wood. Here comes the role of technology. Adoption of modern technologies (in most cases) can change the manu-
facturing scenario from harmful to eco-friendly status. Let us now see how some technologies can help in creating turn around results. A huge amount of wastewater is generated during the desulphurization process for purification of coking gas, improper disposal of that may lead to severe environmental problems. It has been found that through reverse osmosis (RO) with an integrated membrane process mainly consisting of ultrafiltration (UF) and nanofiltration (NF), around 99 per cent of the dissolved sulphur (SS) and ammonium salts can be separated from the effluent water.
PreParation for Green manufaCturinG Q: How is the concept of green manufacturing being implemented in the Indian manufacturing sector? a: indians today are more conscious of the carbon footprint they are living in. At this age of growing competition, energy saving is a big cost saving. Green business practices help in reduction of costs. lean management invariably results in green manufacturing improvements. Due to the awareness created by the media, our people have become more pollution conscious—forcing companies to reduce and recycle wastes and effluents. Ecohousing is thus made with better, recycled raw materials, which are also environment friendly. Water conservation, use of solar energy and biogas instead of electricity are the norms these days. Q: What kind of industries are taking active interest in implementing green manufacturing? a: indian industries are now taking active interest in reducing costs, as well as participating in CSR (Corporate Social Responsibility) activities. Manufacturing companies, plating, healthcare, it hardware, software, construction etc., all are actively participating in the green movement. CSR has motivated companies in using CFl and leD lamps and solar lamp sets. there is an active interest to retain ground water level, if not replenished by rain harvesting. Government legislations are also helping in ensuring better transparency and campaigns. Many industries are actively employing green certificate
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inside are always cool, which leads to lower consumption of energy due to less running of air conditioners. Paperless system ensures no usage of paper, and it has a great impact on environment through saving forests.
S. v. viSwanathan DIrector, 3v consultants holders as a means to lead the green management campaign. Q: How does adoption of green manufacturing reduce the cost of manufacturing? a: Waste reduction automatically reduces costs. Products are redesigned, packing revolutionized et al result in better material utilization. Energy efficient devices have ensured reduction in power consumption and hence the costs. Rain water harvesting and recycling of water help in better utilization of water as well as cost reduction. usage of solar lamps and wind turbines have made an impact in reduction of costs. When you look at lifecycles, green buildings ensure better temperature control, better circulation of air and better utilization of sunlight—so that offices
- technology management for decision-makers
Q: What should be the steps to implement green manufacturing (in general) for a manufacturer? a: At first, assemble a top committee for green strategy that includes a management representative and a certified green professional. then form operational teams. initiate review on—where you are now, what are the legislative compliances, evaluate and register significant environmental aspects and their impacts, examine all environmental management practices and get past feedbacks. then adopt environmental management practices. Define and divide organization’s environmental responsibilities to groups of personnel. Make and maintain a register of regulations and a register of environmental practices & objectives and departmental environment impacts. now, set environmental objectives and targets. Objectives and targets must include management programmes, which have to be specific, measurable, agreed, reliable and trackable. build necessary manuals and documents. Start exercising operational control. Proper training at all stages is essential. Recording of all events too is important. thereafter, environmental auditing, management review and external assessment are the required steps.
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Excessive inventory increases plant’s carbon footprint. Through modern plant event simulation techniques, a digital model may be created even before the physical plant is constructed. Such a model allows to estimate all variants of what-if scenarios... Thus, such modeling can help in planning an optimized Just in Time (JIT) and Just in Sequence (JIS) logistics system. Last year, Cemtrex tackled a customer’s requirement in a slightly off-the-tradition scenario. After his company received the contract, CEO Arun Govil said, “We have been contracted by a customer to provide a central particulate control system to handle the emissions of a steam boiler that is burning discarded carpet flooring in lieu of fossil fuel. We are very excited to be a part of this new initiative and have adapted our existing technologies to handle this new emerging emissions control market.” The boiler flue gas generated from the burning of carpets is now treated to remove hazardous components with the residual ash captured in a Griffin Filter multi-compartment baghouse. The Griffin baghouse uses a pulse jet housing design for optimum efficiency and utilizes high-temperature Nomex felt filter bags in all compartments. Semiconductor Research Corporation (SRC), a university-research consortium for semiconductors and related technologies, University of Arizona and Arizona State University researchers have recently shown a new, exclusive way to dramatically conserve the amount of water needed to manufacture semiconductors. They are using a unique device called Electro-Chemical Residue Sensor (ECRS), which allows for clean, rinse and dry process optimization that helps make semiconductor facilities more efficient, sustainable and cost-effective. Dan Herr, SRC Director of Nanomanufacturing Sciences, says, “Tests performed in collaboration with an IDM’s large integrated circuit manufacturing facility demonstrated this sensor’s capability to detect chemicals inside features, showing annual water savings of up to 50 per cent could be realized by optimizing the rinse process using the ECRS.”
avenue to successful green manufacturing
Although it is well understood that there is no substitute for green manufacturing, a common debate in the manufacturing community still persists regarding the initial investment to switch over. However, the truth is green manufacturing is an unavoidable journey through an eco-friendly path towards becoming more and more supportive to help maintaining the natural balance. It is not necessary to have a grand beginning with a view to radically changing the scenario within a very short span of time. Rather even small contributions (each) from a large number of manufacturing companies can make a big impact. There is no end by itself. At every stage there is further scope for development. So,
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SuStainable deSiGn and Green manufaCturinG Green manufacturing is not just a buzzword, but a strategic priority for all manufacturing industries. Sustainable design is a very important step towards green manufacturing. it is the application of technologies to reduce negative environmental effects related to the design, production, usage and disposal of manufactured goods. From manufacturing to disposal, the things we make—create environmental impacts throughout their lifecycles. Opportunities for saving resources, like materials and energy, can often be uncovered early in the design process, by identifying the right problems to solve before engineering begins. Manufacturers can minimize environmentally related business risks by addressing key sustainable design concepts including material optimization, material selection, and energy efficiency. Today’s technologies allow manufacturers to help increase a project team’s capacity to rethink, design and experiment with new and innovative sustainable designs and also manage data and documentation to help meet current and proposed end-oflife regulatory requirements.
raJiv BaJaJ HeaD, ManuFacturIng autoDesk InDIa anD saarc more than investment being an issue, it is a matter of a company’s willingness to build a green strategy and striding forward. With the new scientific findings, even the procedures are evolving. Just to cite an example, recently Global Community Monitor (GCM), a California-based environmental justice group has uncovered a potentially massive problem from their metal recycling industry. Denny Larson, Executive Director of GCM says, “Recycling scrap metal is generally good for the environment, but it can also create serious air pollution and health threats to neighbours. Independent air testing by neighbours downwind of several scrap metal recyclers and foundries has revealed high levels of toxic metals and gases.” Thus, it is high time that Indian manufacturers, whether small or large, should start the green journey. Those who are already on green path, as mace bearers of the green journey, should spread the idea among others, breaking all their myths.
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manufacturing technology
Technological
AdvAnCements
Trigger
Growth In the machine vision market
Picture Courtesy: www.mvtec.com
The machine vision systems market has taken giant strides forward, aided by the availability of high computing power with multi-core processors and constant decrease in the cost of computer memory.
For the first time at AUTOMATICA 2010, an industrial robot ran with HALCON 10.
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he machine vision systems market has taken giant strides forward, aided by the availability of high computing power with multicore processors and constant decrease in the cost of computer memory. Fast-paced innovation in machine vision integration with advanced image processing algorithms has enabled vision
october 2010 | industry 2.0
systems to be deployed in an everincreasing range of applications in industrial automation. The new technologies are utilized in large manufacturing plants for various tasks, such as yes/no quality assessment or accurate 3D measurements. However, improvements are still needed in imaging resolution, rate of image acquisition, and speed of
- technology management for decision-makers
data processing. Machine vision hardware makes vision useful for robotic guidance tasks, which are poised for further advancement in the coming years. Analysis from Frost & Sullivan, Machine Vision and Vision Guided Robotics for Factory Automation, finds that the frontier between industrial vision systems and industrial shape measurement systems is disappearing. The latest vision systems are able to provide highly accurate 3D shape information in close to real time. Such systems are used for quality measures as well as for intelligent system control. “Machine vision technology has been made affordable for plants located in developing economies, opening up new avenues of opportunity for machine vision
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manufacturing technology Companies Analysis - Sectors
Picture Courtesy: www.mvtec.com
in the process of manufacturing transition from flexibility concept—that is based on product standardization to one—that enables product customization. It is extremely difficult to make a standard machine vision system, as there are so many manufacturing sectors to cover and so many different specifics. This application diversity however, drives development of vision systems. There are many technology challenges that vary from application to application; some customers want high speed 3D, while some require high camera resolution; some of the customers expect both these features in the product. Therefore, industrial vision integrators are early adopters of technologies, such as reconfigurable instruction set proces-
It is possible for an industrial robot to detect the pose of an object by 3D vision with only one camera.
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developers,” notes Technical Insights Research Analyst Igor Derylo. He also finds, “As prices for vision components continuously decrease, human-to-machine replacement becomes profitable.” The role of industrial vision is going to be particularly important
october 2010 | industry 2.0
- technology management for decision-makers
sors. High-end industrial vision technology requires enhanced data acquisition, transmission, processing and storage power. On the flipside, there is the production of fast moving consumer goods (FMCG) that are relatively low cost. The FMCG markets and growing economies are awaiting low-cost vision systems. The availability of off-theshelf components gives machine vision integrators the freedom of customized system design. A decrease in component price might accelerate adoption of machine vision systems. “Developers of high-end systems are early adopters of novel components such as imaging sensors and processors; they quickly benefit from novelties available in the market,” says Derylo. “However closer cooperation with component developers could result in increased development rate of vision systems.”
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materials & processes
Growing Opportunities For Membrane Systems In Indian Water And Wastewater Treatment Market Growing industrial waste dumping and effluents pumping have been polluting and contaminating the Indian natural water sources. Membrane systems provide a comparatively easy way to wastewater treatment. by saraswathi g.
M
embrane systems have been used in various applications for more than three decades, mainly for water treatment, including desalination of seawater and brackish water. With research, technical advancement and corresponding cost reductions, the systems are now capable of decontaminating nonsaline water (including treated wastewater). The membrane
systems' market is estimated to be growing annually at a rate of 10 to 12 per cent, and the growth is expected to scale up within the next three years with the increasing demand for water. Salinity and toxicity (due to industrial pollution) are the common issues with regard to ground and surface water, making it mandatory for treatment before usage. Since, industries need pure or highly pure water, almost
all industries have installed a membrane system for water treatment, and utilize the water for process applications. Some of the industries adopting such systems, extensively for water treatment, are pharmaceutical industries, petrochemical refineries, chemical industries, food and beverages, power plants and textile industries. Due to modernization, awareness, affordability and technical advancement, many townships, malls, hotels and other service industries like IT and ITES sectors have also adopted membrane technologies like Reverse Osmosis (RO) to treat water for
Segmentation of the end users of membrane systems
Note: RO—Reverse Osmosis, MBR—Membrane Bio Reactor, MBBR—Moving Bed Bioreactor, UF—Ultra Filtration, MF—Micro Filtration and NF—Nano Filtration
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- technology management for decision-makers
www.industry20.com
● Siemens has been awarded a $14M contract to supply a hollow fiber membrane treatment system as part of the Groundwater Replenishment System (GWR System) expansion at Orange County Water District (OCWD) in California, U.S.A. The 48-million-gallons-per-day (MGD) (182 MLD) membrane system, coupled with an existing Siemens membrane system, will increase the flow to 134 MGD (507 MLD) for the reverse osmosis (RO) membranes downstream in the GWR System.
The GWR System produces high quality water for less than the cost of future imported water, while using less energy and therefore fewer gas emissions than required to import water from Northern California. ● The Koch Membrane Systems, the trading division of Koch Chemical Technology Group, has been selected by OTV France SNC (Veolia Group) to provide membrane bioreactor modules for the
drinking purpose. The growth of the residential segment has positively impacted the RO membrane systems market, as it is being used as point of entry system— where piped water supply from city corporations is not available. Industrial dumping and discharging waste into rivers and lakes have led to major water quality problems. The Pollution Control Board (PCB) has implemented certain regulations and parameters to be maintained with regard to wastewater that is being discharged into rivers. Many industries have adopted
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of 43,500 m3/d, with peaks up to 6,000 m3/hour.
wastewater treatment plant at Carré de Reunion in France’s Versailles region. The project will upgrade and expand
The plant is adjacent to the Palace of Versailles gardens and is owned by Le Syndicat Mixte d’Assainissement de la Région Ouest de Versailles. The treated waste water will be discharged into the small Ru de Gally stream, a side arm of the river Seine, which has its source in the palace gardens. the capacity of the existing conventional waste water treatment plant. The plant is designed for an annual average flow
conventional methods such as activated sludge process for wastewater treatment. Membrane technologies are receiving special recognition as alternatives to conventional water treatment, and as a means of polishing treated waste water effluent for reuse applications. These technologies are energy intensive with high maintenance costs. In recent times, as part of modernization and best practices, certain reputed industries and some townships, commercial buildings and hotels have adopted membrane technologies, like—Membrane Bioreac-
● To comply with stricter environmental requirements, Rotorua, New Zealand has selected GE’s advanced bacteriaremoving Membrane Bioreactor (MBR) technology for the upgrade of the city’s wastewater treatment plant, which serves about 70,000 people. GE will supply an MBR filtration system to the Rotorua District Council for the upgrade project. The technology will enable Rotorua to significantly reduce
The MBR retrofit will enhance the plant’s capacity to handle its growing wastewater treatment needs, and meet the country’s tighter discharge regulations without building additional, costly structures, such as clarifiers or process tanks.
the concentration of faecal coliforms (a form of harmful bacteria) in the plant’s discharge water.
tors (MBR) and Reverse Osmosis (RO), for wastewater and sewage treatment—as they provide better water quality, making it technically possible for reuse. The high investment cost of the system is, thus, offset by the reduced consumption of fresh water due to the reuse of treated water. Despite the presence of significant demand drivers in this market, there are several associated restraints. Cost: The membrane system is highly expensive. Since the investments by industries are mainly focused on core processes,
industry 2.0
- technology management for decision-makers | october 2010
33
materials & processes Market drivers and restraints
investing in advanced wastewater treatment is merely seen as a regulatory requirement, rather than in the context of environmental sustainability. Replacement: There should be continuous checks of the water quality and membranes must be replaced at regular intervals, or else they could get fouled. Operations and maintenance: Operations and maintenance (O&M) is a critical process for membrane systems. Industries should have a proper technical team to continuously service the system, as the procedures are cumbersome. Industries could look to outsource the O&M to a technical consultant or group, which in turn could be very expensive. Challenges and opportunities: The membrane systems' market is highly competitive. As the market is unorganized, the greatest challenge is the price factor. Price, delivery time and quality are the
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critical parameters to be addressed. Many foreign water and wastewater OEM companies are eyeing the Indian water market, while the domestic players are expanding. Over the years, the base of end users for membrane systems has been expanding. With more and more multinationals setting up their manufacturing base in India, the country is witnessing a huge demand for supply and usage of pure water. The Government is planning to increase desalination projects along the coastal areas. The Municipal sector is now adopting membrane technologies like MBR, as the treated water can be utilized for agricultural and other purposes. The PCB along with State Pollution Control Boards is planning stringent regulations for water and wastewater treatment. Recently in Delhi, the Effluent Treatment Plants (ETPs) have
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been made mandatory for restaurants. The ETPs would be brought under regulatory mechanism for effective monitoring and pollution control. Water reuse treatments are encouraged due to scarcity of water. It is estimated that only 40 per cent of industrial and about 22 per cent of the municipal water and wastewater projects have adopted membrane technologies in India. Hence, there is immense scope for growth of the membrane systems' market. This sector is witnessing significant R&D investments. Technical advancements are being focused on to increase the efficiency of membrane systems. Thus, these systems are anticipated to be the future mainstay of water and wastewater treatment systems in India. Saraswathi G is the Research Associate—Environment & Building Technologies, South Asia & Middle East, Frost & Sullivan.
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materials & processes
“Abrasives industry can grow faster than our IPI growth� India can very well develop as a strong manufacturing base for the abrasives industry. Ramesh Ramadurai, Director, Industrial Business, 3M India, in an interview with Reshmi Menon, discusses the various strengths and the potential for India to develop as a strong manufacturing base for the abrasives industry. Excerpts..... Indian auto component industry is again on growth path. How will this enhance the growth of the abrasives industry? We have had a strong growth in Industrial Production Index (IPI) in 2010. The softening in sequential IPI growth rates in the recent months is not a surprise, and the underlying factors remain very positive. Auto production has also remained very buoyant, which in turn creates demand right through the value chain, and for auto components in particular. Abrasives play a crucial role in the manufacturing process of several types of auto components, and the derived demand will continue to be strong. How would you describe the growth in technology in abrasives over the years in general? Over the years, abrasives technology has developed in line with the core industrial manufacturing segment requirements. Technical advancements in abrasives range from basic grinding to finishing the steel to paint finishing to high precision finish requirements in engine components, turbine blades or medical implants. Which other manufacturing verticals offer potential for abrasives? The automotive original equipment manufacturers (OEMs),
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Ramesh Ramadurai Director, Industrial Business 3M India
metal fabrication, construction, consumer, aerospace, woodworking, electronics, paper, renewable energy systems, etc., offer significant potential for the abrasives' usage. What does a customer look out in a good abrasive? Abrasives are typically used for surface modification, like grinding, polishing, finishing, cleaning. An abrasive, which helps customers achieve their desired surface finish, be it polishing or finishing, in optimal time and cost, and which provides consistency in performance, generally is perceived to be of strong value to customers. What are the key factors boosting abrasives' manufacture in India? India has a significant abrasives manufacturing base. Availability of key raw materials, manufacturing process up-gradation and local product development capabilities have helped development of this industry. A strong domestic market is always helpful to build and nourish a local manufacturing base. Obviously, this is a plus in India. What are the other factors to
- technology management for decision-makers
attract companies for setting up abrasives' plants in India? The availability of a talent pool is no doubt critical. This coupled with a strong engineering eco-system provides a compelling case for manufacturing investments. We are currently investing in a state-of-the-art product development facility in Bangalore, which will include capabilities for abrasives as well. How do you foresee the future growth of this industry in India? We are of the opinion that this industry can grow faster than our IPI growth, based on higher value addition opportunities. At a base level, the continued India growth story augurs very well for sustained growth in the abrasives' category. When you superimpose technology and process upgradation on top of a set of healthy demand drivers, it will be possible to outpace IPI. Customers use abrasives to meet certain requirements in their manufacturing processes—we've to ensure that we consistently deliver the values sought in a reliable, easy to use and economical manner.
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facilities & operations
Rural Electrification:
One Village At A Time...
An energy service model that revolves around the core principles of 100 per cent power coupled with other basic amenities such as drinking water and lighting leads towards a true green energy solution for the country.
Picture Courtesy: www.photos.com
by hari kiran chereddi
G
reen is the colour and mood of the moment. It, at least, is the most used and perhaps the most abused word in press releases by most global corporations. I say most used because everybody seems to be using that thought in their communications, and I say abused because most people who use the word are not committed enough to make any marked contribution in that space. Going green and a healthy environment are compelling ideas that have taken centre stage in our lives, at homes, industries, Governments, NGOs and virtually everywhere. So what is green in practical terms? What does it mean to India and the world at large? Is it about going back to nature? Is it about climate change? Is it about disruptive technologies? Is it about saying no to fossil fuels? Is it about India’s newly announced National Solar Mission? All of us agree that green has something to do with protecting the environment from irreparable
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damage for the future generations. Energy generation and consumption can, if not done responsibly, contribute to environmental pollution and depletion of natural resources. Energy is a challenging and a growing sector—one, which demands deft handling and a responsibility of generating energy whilst preserving the delicate balances created by nature. Energy is also about looking at the world in an expansive way—not only of how we generate energy but also about how we consume it, conserve it and save it. According to a McKinsey research conducted in 2007, 80 per cent of respondents in India said they were willing to conserve energy by using energy efficient products. But how does one go about putting these noble intentions to practical work? Most forms of conventional energy generation and consumption have harsh environmental implications. We have raced through the industrial revolution and decades of economic growth without paying heed to
the planet’s environment. A large part of these actions happened because of ignorance and apathy. Today, however, the ill effects of such exploitation are widely known and it would be irresponsible of humanity at large to go on polluting the environment. Worldwide, business leaders and policy makers are facing the challenge of significantly increasing carbon productivity while continuing to expand the world economy. To reach the levels deemed safe by the world’s scientific community, carbon emissions must decline by five per cent every year. How do you do this? It would be equally irresponsible to halt industrial, technological and social progress and go back to nature. Industries and Governments cannot afford to stop using conventional sources of energy generation and also consumption without bringing societies to a grinding halt and creating unrest. Imagine how you would react if you were told to stop using electronic goods, air condition-
industry 2.0
Energy generation and consumption can, if not done responsibly, contribute to environmental pollution and depletion of natural resources.
- technology management for decision-makers | october 2010
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Picture Courtesy: www.photos.com
facilities & operations
Most distributed and decentralized energy solutions suffer from poor performance due to lack of proper maintenance.
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ers! Responsibility is the path that moves towards a future date where completely energy efficient and environment friendly practices exist in energy production and management, while serving practical purposes of these aspects on the journey. It also means looking at areas that can provide the bandwidths for driving an energy efficient economy. In simple words—look towards the rural areas for driving energy efficient models. Today, more than 1.5 billion people in Africa, Asia and Latin America live without the benefits of electricity and most of them in rural regions. When the sun goes down, however, their day is far from over; when the daily work in the fields is done, family and social life take over, and community centres become meeting points for village locals. Governments, for a while, have been talking about electrifying rural habitats for well over a decade now, with dismal results.
october 2010 | industry 2.0
The onus really is on companies, which understand the communities’ energy needs from a livelihood perspective, and use this understanding to design and deploy robust renewable energy systems that respond to the livelihood and the economic needs, the aspirations and the constraints of the said communities and enhance their sustainability. One such successful model being deployed by us at Sujana Energy is ‘Energy Service Models’ (ESM). The true hallmark of development is to power the source of energy in an off grid model. The ESM revolves around the core principles of 100 per cent power coupled with other basic amenities such as drinking water and lighting—the process entirely off grid and self-sufficient. Key aspects of the model: • 24-hour power: Assured electricity has been a common feature in most existing models of rural electrification in the country today. One of the key tenets for the proposed ESM is the assured availability of electricity at any time of the day to all load points. This is achieved by analyzing and providing a fixed amount of energy to each load point. • Evolving customer demand: Evolving customer demand for rural electricity, in response to changing expectations on sustainability, happens in two ways: Direct consumer response in the form of changing purchasing patterns, livelihood strategies—thereby deriving a monthly energy budget and indirect effect as manufacturers and distributors change sourcing decisions to respond to—and pre-empt—consumer requirements. • New possibilities: Key technology revolves around usage of centralized solar PV-based energy systems, which have components like Light Emitting Diode (LED) lamps, load distribution mod-
- technology management for decision-makers
ules, inverters. One of the main differences being explored in this system is through the usage of biomass gasification technology in the system, whereby electricity may be generated during non-sunny hours. Another interesting aspect of the system is the ability to integrate membrane distillation technology for water purification in the same cycle. However, electricity from the grid is used when available. • System implementation and support: Most distributed and decentralized energy solutions suffer from poor performance due to lack of proper maintenance. This problem can be addressed through training to local villagers and designing a well-structured maintenance and support process. • Innovative models: Innovative ways of institutional and financial involvement are a key to success of any rural ESM. Creating and projecting the financial viability of a rural electrification programme is a must for attracting funding houses to show interest. The ESM model analyses and also creates monthly energy budget, which is required to arrive at a financially sustainable option. This allows to mix and match involvement from micro finance organizations, NGOs, corporate and local Self Help Groups (SHGs). Today, the growing awareness of the benefits of using ‘Green and Sustainable’ technologies, more so for rural electrification is driving the movement. As a result, most Governments are taking keen interest in deploying such solutions by way of grants, soft loans and policy interventions. I am hopeful of the strides taken by the growing base of enlightened people like you that will augment this responsible journey through wise and responsible decisions. Hari Kiran Chereddi is the Managing Director of Sujana Energy.
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supply chain & logistics
Logistics Infrastructure transformIng IndIa’s
A report on how India's logistics network should evolve to meet future freight needs in 2020 and beyond. by rajat gupta, hemang mehta and thomas netzer
L
ogistics infrastructure is a critical enabler of India’s economic development. Recognising this pivotal role, logistics infrastructure spend has been tripled from around USD 10 billion in 2003 to a planned amount of around USD 30 billion in 2010. Despite this increase, the country’s network of roads, rail and waterways will be insufficient as freight movement increases about 3 fold in the coming decade. This shortfall in logistics infrastructure will put India’s growth at risk. Since a large part of India’s future logistics network is still
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to be built, the country has a chance to build infrastructure optimally, to meet the growing demand. Doing so requires an integrated and coordinated approach in which the development of each mode—railways, waterways and roads—is matched to the needs and existing assets are better utilised. In particular, India needs to increase its use of rail, and realise the potential of its waterways. For example, in the normal course, India’s rail share in freight would decline to 25 per cent from the current 36 per cent. This is relative to almost 50 per cent rail
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share in China and the US, similar continental sized nations. The concerted approach suggested in this report can increase India’s rail share to 46 per cent. If India fails to achieve this, waste caused by poor logistics infrastructure will increase from the current USD 45 billion equivalent to 4.3 per cent of today’s GDP, to USD 140 billion or more than 5 per cent of the GDP in 2020. If tackled in an integrated and coordinated manner, this can be reduced by half and India’s transport fuel requirement reduced by 15 to 20 per cent. Achieving this will require four major shifts: • Building the right network and ensuring flows on the right mode: This comprises an integrated mesh of seven high-density long-distance corridors (rail and coastal water-
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Source: McKinsey
ways),150 medium-distance rail and road connectors and about 700 last mile links • Creating enablers to maximise the efficient use of the network: This includes developing 15 to 20 logistics parks, providing standards for containers and pallets and upgrading the skilled workforce • Extracting more from existing assets: By increasing the share of toll plazas with electronic tolling, using stainless steel wagons with higher load carrying capacity, and increasing spend on maintenance of roads • Allocating more investment to rail
and reallocating within roads and rail:
Based on current trends, USD 500 billion is estimated to be spent on logistics infrastructure in the next decade, with roads accounting for more than 50 per cent of the spend and rail for 40 per cent. However, this investment will need to be re-apportioned to support the changes required. The allocation to railways, for instance, needs to increase to more than 50 per cent with large sums spent on building high-density traffic corridors, connectors and last mile links If these shifts are implemented, India’s waste in logistics in 2020 at about USD 100 billion would be almost one-third lower. This amount can be reduced further to about USD 70 billion (3 per cent of expected GDP) if the investment can be increased to about USD 700 billion. In addition, these shifts would reduce India’s commercial energy consumption by over 1 per cent. To implement these four major shifts, India will require a National Integrated Logistics Policy (NILP). Such a policy should target a greater share of rail, reduce economic waste and improve energy efficiency. The policy will need to establish and implement 10 targeted national programmes including for dedicated rail
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freight corridors, coastal freight corridors, national expressways, last-mile roads, last-mile rail, multi-modal logistics parks, road maintenance, technology adoption, skills development and equipment and service standards. Implementing a new logistics infrastructure strategy is a complex task given the multiple stakeholders within the central and the state Governments. An empowered cross-ministerial group will be needed to drive this effort, define programmes, allocate budgets, monitor implementation, and ensure continual coordination across ministries. The High Level National Transport Policy Development Committee recently set up by the Government to develop policy recommendations is the first step in this direction. This report expands on these perspectives and is organised in the following three sections: • India’s current logistics infrastructure: Inadequate to meet growth aspirations • Required logistics infrastructure strategy going forward: Shift to a balanced modal network • Moving from strategy to implementation: National Integrated Logistics Policy (NILP).
India’s current logistics infrastructure plan: Inadequate to meet growth aspirations
The country’s road, rail and waterways network is a legacy of colonial rule, historically developed to transport troops, agricultural products and raw materials. As a result, India’s logistics infrastructure is not adequately equipped to meet rapidly rising freight traffic, changing consumption patterns and increasing numbers of production centres. Over the last 60 years, limited planning and investments in freight transport have resulted in numerous inefficiencies. Further, India’s economic growth will only put greater pressure on an already stretched network. The four aspects outlined below characterise India’s logistics network.
Three key components of the logistics network account for over twothirds of total freight traffic in the country.
The logistics flows are highly concentrated Three components of India’s logistics network account for over two-thirds of total freight traffic flow in the country.
Component 1—Seven long-haul corridors that connect 15 high-growth clusters form the backbone of India’s logistics network
industry 2.0
The seven corridors account
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supply chain & logistics are higher than emissions from rail and waterways. Road transport emits 84g of CO2 equivalent per ton-km compared to 28g for railways and 15g for waterways. Yet, India continues to transport a majority of its goods via roads including bulk materials like steel, cement and coal. A moderate shift from road to rail can help India save close to 0.7 per cent of its total commercial energy consumption.
Around USD 45 billion is lost each year due to inefficiencies in India’s logistics network
Source: World Economic Forum; China Statistic Yearbook; Planning Commission India; NHAI; Indian Railways; DG Shipping; Bureau of Transportation Statistics US; McKinsey.
Freight transport in India is dominated by roads.
for about half of the total freight traffic in 2007. Consequently, freight routes through these corridors witness the highest traffic volumes in the country and will continue to do so. National highways along these corridors handle 40 per cent of road freight traffic even though they are less than 0.5 per cent of the Indian road network. Similarly, rail links on the corridors account for 27 per cent of the Indian rail network but handle over 50 per cent of rail freight traffic in the country.
critical component of India’s logistics network
Component 2—Over 150 mediumdistance connectors that link the corridors are key for India’s logistics network
India’s freight transport relies excessively on roads
They are 100 to 300 km in length, typically branch out from the corridors, and carry 10 per cent of freight in ton-km. More importantly, close to 30 per cent of freight volumes pass through these connectors at some point. These connectors include rail links and state and national highways— as well as major district roads that account for a disproportionate share of intra-state traffic.
Component 3—Over 750 last mile links of up to 100 km form a
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These links connect key production, consumption and transit points such as ports, mines and industry clusters to the corridors and connectors. They have not typically been the focus of efforts to build the country’s logistics infrastructure. Nevertheless, the poor quality of these links or their absence altogether is often the cause of bottlenecks and poor service levels.
India’s roads account for a higher share of freight traffic compared to other continental sized countries like the US and China. India’s reliance on roads is more than three times that of China. This is despite the fact that a large part of India’s freight traffic comprises bulk material and moves over long distances that can be more economically served by rail and waterways. Further, the higher dependence on road transport is adverse for the environment as emissions from road transport
- technology management for decision-makers
While in absolute terms, industry spend on logistics in India is low—the relative spend is high. India spends 13 per cent of GDP on logistics which is more than what the US (9.5 per cent) and Germany (8 per cent) spend. The purchasing power parity (PPP) adjusted benchmark of transportation costs by mode with the US demonstrates that India’s logistics infrastructure is inefficient. For instance, rail and coastal shipping costs in India are approximately 70 per cent higher than those in the US. Likewise, road costs in India are higher by about 30 per cent. This not only results in higher prices and lower competitiveness, but also hampers economic growth. Our analysis suggests that poor logistics infrastructure costs the economy an extra USD 45 billion or 4.3 per cent of GDP each year. Two-thirds of these costs are hidden i.e., not generally regarded as logistics costs. These hidden costs include theft and damage, higher inventory holding costs, facilitation and transaction costs.
A 2.5 times increase in freight traffic in the next decade will put further pressure on India’s logistics infrastructure India’s current infrastructure is already over-stretched. For
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example, most of the national highway network and rail links along the Golden Quadrilateral and North-South and East-West corridors are congested. Many large ports are already operating at very high utilisation rates. Further, even at a conservative annual growth rate of 7.5 per cent, India’s freight traffic is likely to more than double from current levels by 2020. Finally, investments in the current network design will only lead to increased inefficiencies and in losses as established earlier. Recognising these challenges, the Eleventh Five-Year Plan proposed a large increase in logistics infrastructure spend from USD 65 billion or 1.5 per cent of GDP in the Tenth Plan period to USD 160 billion or 2.3 per cent of GDP. This is even more than India plans to spend on power during the same period. Despite the large increase, the planned spend is insufficient. It would at best result in a 15 to 20 per cent increase in road and rail network capacity. The growth in freight traffic will outdo this increased capacity. The current trajectory suggests that the total investment in logistics infrastructure would
Source: McKinsey
be over USD 500 billion by 2020. Despite this increased investment, our analysis suggests that service levels, absolute transit times and transit time variations will only worsen given the growth in freight traffic. As a result, economic losses, which are about USD 45 billion today could rise to around USD 140 billion in 2020. Inadequacies in India’s logistics infrastructure could constrain India’s growth by adversely impacting user industries. India’s exports for example, could be
Source: McKinsey
The proposed shift will lead to a very different modal mix.
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rendered less competitive on account of higher transit times and lower reliability.
Shift to a balanced modal network
Based on the profile and quantum of India’s freight flows, a systematic and efficient development of logistics infrastructure calls for a major shift along four important dimensions—concentrating flows along the right mode, building enablers, increasing asset efficiency and re-allocating investments. The shifts towards a balanced network design could enable the railways to recapture a share of more than 45 per cent of freight traffic by 2020, relative to the current trajectory, under which its share will reduce to 25 per cent. This balanced network will also reduce losses to 4 per cent of the GDP, in comparison to an increase to over 5 per cent of the GDP if the current trajectory is pursued. Finally, if investments in logistics infrastructure are increased to USD 700 billion from the current level of USD 500 billion, losses could further decrease to under 3 per cent of the GDP.
industry 2.0
An efficient logistics infrastructure strategy requires a shift along four key dimensions by 2020.
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Source: McKinsey
supply chain & logistics
Reallocate budget across and within modes to improve capacity and service level.
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Building the right network and ensuring flows along the right mode Road has become the dominant mode of transport for India’s freight traffic. Current plans earmark half of the planned investment for roads even as capacity on rail and waterways (including last-mile connections) remains inadequate. However, to meet the demands of growing freight traffic, a shift to more economically as well as environmentally suitable modes i.e., waterways and rail is vital. In addition to a greater emphasis on rail and waterways, the right mode of transport has to be used. Ideally, rail and waterways should be prioritised for long distances, rail for medium distances and roads including expressways, for shorter stretches. Such a balanced modal approach would lower transportation costs, achieve greater efficiency and be more environment-friendly. An efficient network will have five rail dedicated freight corridors (DFCs) namely, DelhiMumbai, Delhi-Kolkata, MumbaiChennai, Delhi-Chennai, MumbaiKolkata and two coastal corridors namely, Kandla-Kochi and
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Kolkata-Chennai. These corridors will need to be supported by 20 to 30 expressways, road and rail links across the 150 connectors and 700 last mile links. In effect, a considered network design is vital to develop effective and efficient logistics infrastructure, particularly if the funds are limited and freight flows are concentrated. Investments need to be targeted and initiatives focused in connecting growth clusters.
Creating enablers to maximise network efficiency This shift predominantly refers to improving interfaces. It includes constructing last-mile links and 15 to 20 logistics parks to ensure interconnection between modes. Additional initiatives include standardising equipment, containers and pallets and upgrading skills.
Extracting more from existing assets Our work posits that India needs to use its existing logistics infrastructure and equipment better. Measures to this effect include better maintenance of roads, rail tracks and rolling
- technology management for decision-makers
stock; unlocking the capacity of the rail network by accelerating the implementation of automatic block signalling, moving to lower tare load wagons, improving the efficiency of scheduled rake maintenance operations; and enhancing road efficiency through electronic tolling systems on highways. These measures could unlock 5 to 10 per cent of freight capacity with much lower investments than is needed for new infrastructure creation.
Allocating more investment to rail and reallocating within road and rail According to the current trajectory, over USD 500 billion is likely to be spent on developing logistics infrastructure in the next decade. Current trends suggest that about half of this will be spent on roads, around 40 per cent on rail and the rest on waterways, mainly for ports to facilitate trade. To support the changes described earlier, two simultaneous actions are required for India to build economical and environment-friendly logistics infrastructure. First, more funds need to apportioned to rail. Second, funds within rail and road need to be spent differently. • Reallocate spend within railways: The increased investment in railways needs to be used to create rail capacity on highdensity corridors and to support the movement of a greater volume of traffic on existing track infrastructure. This means more spend on DFCs, rolling stock and other additions such as new tracks, rail line doubling and gauge conversions. While current plans are to complete two DFCs by 2020, five are needed. To fulfill this aspiration, spend on DFCs in the overall allocation to railways should be doubled from around 7 per cent to close to 15 per cent. This increase in invest-
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ment, needs to be supplemented with the development of logistics parks and last-mile road and rail links which can facilitate better integration across modes. • Redirect investments within roads: Targeted deployment of the USD 200 billion investment in roads on the high-density traffic stretches could increase the road length of national highways by 60 per cent, and state and major district roads including expressways by 15 per cent by 2020. In particular, there are two areas in which higher spends are recommended. One, an increase in the number of planned expressways from about six to about 30 by 2020 will improve service quality and fuel efficiency. This will require an increase in spend from USD 3 billion to USD 16 billion by 2020. Second, the spend on last mile stretches should be increased substantially to around 10 per cent of the total spend on roads. At present, there is no focused programme and measurement of last-mile links. As an unfortunate consequence of this reallocation, a smaller proportion of the spend within roads will be on national and state highways that do not fall along corridors, connectors and last-mile stretches. In addition to re-allocating investment to the extent possible, an increase in funds available to the logistics infrastructure sector would be beneficial. Our analysis suggests that if investments are increased from USD 500 billion to around USD 700 billion by 2020, the losses in the system would decline from over 4 per cent to under 3 per cent of GDP in 2020.
Moving from strategy to implementation: The national integrated logistics policy
Achieving the four major shifts outlined above will require a concerted effort by multiple
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Source: McKinsey
stakeholders and pose many challenges. An integrated policy defining a new vision, launching 10 priority programmes and governance that spans across ministries will improve India’s ability to achieve its economic growth aspirations, while reducing energy consumption.
National Integrated Logistics Policy—a new vision for India’s logistics infrastructure A National Integrated Logistics Policy (NILP) that shapes a vision for India’s logistics infrastructure in 2020 and beyond would be a critical enabler for such efforts. The NILP could help the government reduce recurring losses to the economy and improve capital efficiency in the following three ways. First, it could define the blueprint for the most effective and efficient logistics infrastructure to support a balanced modal mix, based on the anticipated increase in freight flows by 2020. Second, it can ensure better coordination between multiple national and state-level bodies responsible for developing logistics infrastructure. Third, it can facilitate easier access to and optimal allocation of scarce resources such as investments, equipment and people.
Such a policy should: 1) have tangible objectives to build logistics infrastructure that keeps pace with India’s economic growth, 2) Define a set of programmes that can help realise these goals; and 3) Ensure a governance structure that enables efficient and timely execution. The NILP objectives could include: • Implementing a balanced modal mix by increasing the share of rail in freight carriage to more than 45 per cent • Limiting the economic losses attributed to logistics to less than 4 per cent of GDP (USD 100 billion) • Reducing energy consumption by 10 MTOE in 2020 (around 1 per cent of total commercial energy consumption) and hence freight related greenhouse gas emissions by around 20 per cent from expected levels under the current trajectory • Achieving on-time and onbudget delivery of infrastructure projects, which requires an improvement in project implementation relative to current performance. The NILP should also set clear long-term targets based on rigor-
industry 2.0
National Integrated Logistics Policy (NILP) is needed to move from strategy to implementation.
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supply chain & logistics ous analysis of future flows of freight traffic. These can then be cascaded into near-term targets for the various bodies involved in building India’s logistics infrastructure.
Ten targeted programmes should be the bedrock of the National Integrated Logistics Policy
Key
pointS
►India’s roads account for a higher share of freight traffic compared to other continental sized countries like the US and China. ►India spends 13 per cent of GDP on logistics which is more than what the US (9.5 per cent) and Germany (8 per cent) spend. ►Rail and coastal shipping costs in India are approximately 70 per cent higher than those in the US.
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The NILP should propose and result in the launch of 10 targeted programmes outlined below which would ensure that the objectives are met: • Rail dedicated freight corridors: This programme should have a dual focus. First, accelerating the special purpose vehicles (SPVs) for the two planned DFCs—Delhi-Kolkata, Delhi-Mumbai—and simultaneously incorporating SPVs for three additional DFCs. These are on the Kolkata-Mumbai, Delhi-Chennai, MumbaiChennai corridors. • Coastal freight corridors: The objective of this programme must be to strengthen the West i.e., Kandla to Kochi and East i.e., Kolkata to Chennai coastal freight corridors through integrated projects that include last-mile rail and road programmes, trans-shipment hubs, proactive marketing and accelerated port development. • National expressways: This includes constructing expressways of 100 to 300 km stretches that factor in expected increases in traffic by 2020. While currently 5 to 7 expressways are likely to be built by 2020, ideally, the number of expressways should be increased to over 20 by 2020. Expressways should include high-traffic routes such as NasikShirpur and Ghaziabad-Bareilly. • Last-mile roads: Creating a dedicated last mile programme with over 750 last-mile links to connect in particular port and railway terminals to production and distribution centres.
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• Last-mile rail: This should ensure last mile rail infrastructure in many of the last 750 mile links. It will include developing track and rail head infrastructure to support 8 to 10 critical coal corridors in mineral rich states such as Jharkhand, Chattisgarh and Orissa. • Multi-modal logistics parks: This programme will predominantly focus on demarcating land for logistics parks at 15 to 20 key points where different modes overlap, near major cities, or along proposed DFC routes. Designed as concessions, these should be equipped with the necessary infrastructure to ensure the seamless movement of freight across modes. • Roads maintenance: This comprises creating long (e.g. 10 years) annuity-based maintenance contracts for 400 km to 500 km stretches. The current practice has been to issue contracts for shorter distances of 50 km to 100 km. Clear commitment to maintenance could also encourage the participation of more private providers. Extending both the duration of contracts and increasing the road stretches to be maintained could act as an incentive to providers to achieve scale and invest in better technology, thereby reducing costs. • Technology adoption like national electronic tolling: This entails standardising technology for nationwide electronic toll collection (ETC) in future contracts and establishing a nationwide clearing house with set norms and service standards to facilitate transactions, thereby reducing waiting time and improving service levels. • Logistics skills development: Adopting a balanced modal approach will increase demand for requisite skills. In particular, demand for four types of person-
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nel will grow—warehouse managers, logistics managers, coastal seafarers and truck drivers. This in turn will require upgrading the training infrastructure and collaborating with institutes of technology, engineering colleges, marine training institutes and driver training institutes to help meet growing demand. • Enabling access to better equip-
ment and setting common standards:
This refers to acquiring access to better equipment such as larger trucks and higher tare load railway wagons and developing common standards to aid intermodal transport that ensures consistency in containers, pallets and cranes. Further, supporting research institutions like Road Research Institute could help develop better quality road construction material to bolster construction while simultaneously reducing costs.
Governance changes needed at the highest levels to develop the policy and ensure implementation Developing and implementing various initiatives as part of the balanced modal approach will require an integrated approach across multiple stakeholders at the central and state level. The level of coordination required is monumental, as developing India’s logistics infrastructure is the responsibility of a number of state and central government units and infrastructure development agencies. The policy itself can be developed in a manner similar to the Integrated Energy Policy i.e., through an appropriate committee. Such a committee should include representatives from the concerned ministries and departments (e.g., NHAI, Indian Railways, Waterways Authority), stakeholders across ministries (e.g., Ministry of Roads, Ports,
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Railways, Finance, Aviation) and from the private sector (e.g., user industries, developers and logistics providers). The Government has recently set up the High Level National Transport Development Policy Committee that could fulfil this role. Adopting and implementing an integrated logistics policy will need an empowered Group of Ministers, the Cabinet Committee on Infrastructure, the Prime Minister’s Office or an equivalent central body at the highest level to take charge. While the policy execution will be carried out by ministries in the centre and states, such a body should ensure an integrated, coordinated, timely and flexible approach to infrastructure development. Separately, to ensure speedy implementation, well-functioning infrastructure implementation “war rooms” should be set up for high-priority projects at various levels to provide common information, debottleneck and accelerate implementation of projects, under nodal and executing agencies like NHAI, as well as at the centre with the Cabinet Committee on Infrastructure.
Private sector opportunities
Building logistics infrastructure capable of handling rising freight traffic more efficiently and in an environmental-friendly manner
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will open up large new opportunities for industry. First and foremost, user industries will need to rethink their logistics strategy under two scenarios: a scenario where the logistics situation worsens as well as in a scenario that a new more efficient balanced modal logistics network gets created that opens up new opportunities. Companies that rethink their strategy for modal mix, use of containers, network planning and so on will benefit the most. New opportunities will also surface for infrastructure developers and construction companies, technology and equipment providers. The size and scale of opportunities will increase. For example, capital and operational expenditure spending on road development till 2020 could be as much as USD 200 billion. Similarly, expenditure on rail tracks including DFCs could be close to USD 90 billion. The investment in ports could be as much as USD 50 billion. Increased demand for rail wagons will benefit equipment providers. Technology providers would also benefit through greater demand for warehouse management software and a common ETC platform across tolling centres. Simultaneously, logistics providers also stand to benefit on multiple fronts with the imple-
mentation of the new vision for India’s infrastructure. Benefits include greater demand for ThirdParty Logistics (3PL services) such as warehouse management, end-to-end transportation management; and more opportunities for coastal operators to create charter and liner services in commodity bulk materials like coal, cement, iron ore, transport, and increasingly, in container transport. India stands to gain economically and environmentally from implementing an effective and efficient balanced modal logistics infrastructure system. Economic gains encompass capital savings and reduced waste, both in the freight system and in the user industries. Environmental gains like reduction in emissions and reduced energy consumption are also likely. Implementing this is imperative but by no means easy. It calls for strong leadership to facilitate political alignment across the centre and states, rigorous implementation and programme management. This was first published in the report "Building India: Transforming the Nations logistic infrastructure" prepared by McKinsey & Company's infrastructure practice and is also available on The McKinsey Quarterly Website, www.mckinseyquarterly.com. Copyright © 2008 McKinsey & Company. All rights reserved. Reprinted by permission.
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supply chain & logistics
Chennai-based Thejo Engineering is engaged in the manufacturing, sales and servicing of specialized engineered products, catering to various segments of bulk material handling industry. V A George, President & CEO, Thejo Engineering, explains the various new technologies and application areas of the bulk material handling industry in India.
V A George President & CEO Thejo Engineering
“Conveyors are the lifeline of bulk material handling� Bulk material handling industry in India
The core sector industries namely power, cement, steel, ports and mining are witnessing a growth trajectory that has never been seen before. The demand for bulk material handling equipment depends on these industries. With increasing plant capacity the size of material handling equipment like conveyors, excavators, re-claimer has increased substantially. Conveyors are the lifeline of bulk material handling. They are the most economical means of transportation of bulk materials. The speed of conveyors has increased from 1 to 2 m/sec to 4 m/sec. The fastest conveyor runs in Germany at a speed of 15 m/sec.
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Also, the average width of conveyors is increasing to carry greater volumes of materials. Productivity of any equipment is a key criterion in today's business environment. Any breakdown of critical equipment could lead to the whole plant coming to a standstill. Hence, a lot of companies are looking to increase the availability of critical equipment like conveyors.
Challenging areas
A conveyor system with carry back on the return side is a critical problem that leads to spillage of material on the return idlers and can lead to miss-tracking and damage of belt. In ports, where different materials are handled
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on a single belt, there is a potential for material contamination. For example, coal which is contaminated with iron ore, is very detrimental for the operation of boilers in power plants. Transportation of bulk materials also results in a lot of material degradation, resulting in fines. The latest concept in conveyor design is to avoid the generation of dust. Dust suppression systems are very effective in suppressing the dust that is generated by using fog to settle the dust laden air. Another important product is dust collection system, which is very effective for handling fine dust or materials like cement where the addition of water is not acceptable.
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Another source of dust is stockpiles, railwagons and haul roads. Dust is created by fine particles carried by winds or haulage truck movements. Today, however, dust suppression systems that bind the material on the surface forming a protective layer have been developed. Since the protective layer is not broken unless physically damaged, there is no need to spray the product repeatedly as in the case of water, which is evaporated in a few hours. Handling corrosive materials is another major problem faced in the material handling industries. Because of the material characteristics of ores there is a need to handle abrasive materials. Development of durable materials that can take the corrosive abrasive during the processing stage is essential. Traditionally vessels handling corrosive materials were rubber lined—but now there is a move towards polyurethane and polyurea coatings, which are very easy to apply and durable. The time required for application is lesser as it is spray coated. Hence, the productivity levels are over 20 times as compared to rubber linings. Also, since these items have very low or no Volatile Organic Compounds (VOCs) they are safe for the environment.
Recent technological developments
There are numerous technology developments that has evolved in the bulk material handling segment in today’s market. Belt washing systems offer an ideal solution for stringent requirements. The equipment washes the belt preventing
material contamination. Besides, it also prevents the sea water from being polluted from the carry back material. One of the machinery that has helped in reducing the time for installation and replacement of conveyor belts is the belt coiling and decoiling machines. Conveyor belts are needed to be replaced every few years as they are subjected to heavy wear and are sometimes damaged due to longitudinal rips. With the size of belts increasing, removing and replacing belts is becoming difficult and time consuming. A single belt roll could weigh over 50 tonnes. Today, there are conveyor installations that have over 15 kms of belt on a single conveyor. Handling such large belts is very difficult and could lead to costly downtimes.
Green technology
The main vehicular thoroughfare facilitating the movement of personnel and material at Indian shipping ports and mine sites are usually unsealed dirt roads. Inter-state transport also involves large tracks of unsealed roads. On these sites, there are often large open areas that do not have much vegetation. Unsealed roads and open areas without vegetation are susceptible to dust emissions when the wind speed increases or wind direction changes. Imagine the passenger and heavy vehicle movement over unsealed roads and one can fathom the massive amount of dust emissions. High levels of dust in general, but in particular coal and mineral ore dust in the atmosphere, can contribute to environmental concerns and
health and safety issues for workers at the site as well as people living in surrounding areas. One common solution to the dust problem at these sites is to spray water over the unsealed roads and open areas on a regular basis. In dry, hot condition this can become a continuous operation because the effectiveness dramatically reduces when the water evaporates. In parts of India, water is a scarce and costly resource. A simple way to reduce dust emission, equipment, labour costs and water consumption is to use a dust suppression treatment. Dust suppression treatments are more effective in reducing dust emissions as compared to using water.
Dusgon
Dusgon is a water-based product manufactured by DuPont, Australia, which is mixed with water, to spray on the dusty surfaces. In the Dusgon-treated section of road, the peak dust emissions is reduced by more than 90 per cent as compared to the untreated section and more than 40 per cent as compared to the water treated section. The use of Dusgon treatment on unsealed roads helps result in significant reduction in water use, equipment and labour costs. If applied to open areas not subject to vehicular traffic and mechanical damage, the product helps reduce dust emissions and wind erosion for several months, and also helps promote re-vegetation. The product is water-based, safe and easy to handle and apply, and does not have detrimental environmental effects. (Excerpts from a tete-a-tete with Reshmi Menon)
Advertiser index CHEP .................................................................. 21
Exxon Mobil ................................................. IFC, 47
Paharpur 3P .......................................................29
Comsol ............................................................... 17
HAAS Automation .................................................7
Premium Transmission ........................................ 31
DHL ......................................................................5
Indiamart ...........................................................13
Schneider Electric .................................................9
DIESL ................................................................. 11
KMT ....................................................................15
Siemens UGS ......................................................19
Dsonic ................................................................63
LG.......................................................................BC
TagueTech..........................................................IBC
Elcon ..................................................................39 www.industry 20.com
Mitsubishi ............................................................3 industry 2.0 - technology management for decision-makers | october 2010
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supply chain & logistics
Supply Chain Strategies For Post Recession Surge
As the global economy comes out of the shadow of recession and shows signs of growth, enterprises will have to re-adjust their supply chain to meet the resurgence in demand despite volatility.
Picture Courtesy: www.photos.com
by milind joshi
T
he financial slowdown that dealt a crippling blow to the global economy last year has had a hard hitting impact on the supply chain of most of the enterprises. Market dynamics changed as the liquidity crunch provoked by the financial crisis, prompted cutback on expenditures and slowed down decision making. New and innovative product variants mushroomed, sales plummeted and customer retention assumed importance. Customers became price sensitive, compelling the enterprises to offer hefty discounts and exciting promotional offers. The financial meltdown also forced changes to
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the global footprints of several enterprises. Many enterprises in their pursuit to arrest spiralling costs shifted their procurement, manufacturing and engineering operations from the traditional bases in Western Europe and North America to ‘best-cost’ countries such as Brazil, Russia, Ukraine and China. The closure of plants, assembly units, or distribution centres led to the reconfiguration of supply chain and distribution networks. The lull in the economic environment and the redesigned supply chain triggered a change in supply network equations. Now, the worst is behind us and the economy is well on its
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course to stage a recovery. While the resurgent demand riding high on the surge in customer confidence is welcome, it also poses challenges. Enterprises cannot discard the possibility of potential hike in the prices of raw materials and transportation as the economy rebounds. It would be a formidable challenge for the enterprises to effectively meet escalating demand with the constrained capacity, truncated workforce and lean inventory levels established during the global economic crisis and credit collapse. However, despite the odds, enterprises can step up to the challenge, if they approach this opportunity in a systematic manner. Here are some of the recommendations that can help enterprises to make most of the opportunity as the global economy turns the corner.
Reformulate supply chain strategy: As enterprises usher in an era of economic revival and get ready to lay down a comeback plan, they need to take a fresh look at supply chain strategies. The global recession had seismic ramifications on supply networks, which are multidimensional and potentially long-lasting. Financial net worth of individuals in the US and other countries has suffered a sharp decline. Although confidence has grown, the customer is apprehensive, confused and tentative. The loss of wealth, growth in unemployment rate, fear of joblessness, spurt in loan foreclosures and bankruptcies has pushed the customer to new frontiers of conservatism. Some economists and industry analysts collectively predict that this will force a paradigm shift in future buying patterns.
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The global financial crisis has inflicted structural changes in the supply chains of several enterprises. It has also spurred the adoption of lean, demanddriven and pull-based processes. It is difficult to state whether the same supply network will be able to scale up when the demand starts climbing up. Supply chain experts feel that the post recession economy warrants a bold and new supply chain strategy as demand uncertainty and supply side instability, have increased the overall supply chain risks. Hence, it is important that enterprises revise targets for supply chain performance and reformulate the strategy with regards to competitive advantage, market positioning and cycle time. A thorough understanding of the complexities, challenges and risks would be useful for redesigning the supply network strategy.
Redefine the parameters of supply chain planning: New economic environment and the resultant strategic supply network objectives necessitate changes in planning parameters. Enterprises should take this opportunity to revise the parameters like return on assets (ROA), delivery lead time, supply lead time, production lead time, inventory turns, etc. based on the competitors’ moves and expected supply chain performance.
Get a fresh voice of customers and act in real time: The economic turbulence discouraged expenditure on seeking customer feedback for making supply chain adjustments in tune with the changed business environment. However, as the economy is poised to stage a comeback, it is critical to listen and respond in real time to customers’ feedback. Supply network strategy design and implementation based on conventional wisdom about markets just does not work. An investment in gaining insights into the opinions and needs
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Postponement opportunities Assembly, Production Localization & Packaging Labeling Customization
Product Characteristics Volatile demand Multiple versions Multiple brands Multiple package sizes Multiple target geo-markets High unit value Increased volume after assembly
Implement appropriate supply chain strategy based on industry sub-vertical and its unique issues and challenges: Even as the global economy readies itself for a rebound, customer demand continues to be fickle. The globally stretched supply networks have increased lead times and made demand fulfillment even more precarious, customers increasingly demand more choice and expect more customization. With demand volatility and proliferation of product variants, more and more enterprises find it difficult to respond to customers’ requirements without escalating production cost or expanding capacity. The problem is compounded as accurate demand forecasting for different product variations or Stock Keeping Units (SKUs) is extremely challenging. Inability to quickly respond to demand changes has severe financial consequences ranging from excess inventory and high distribution costs to loss in sales. These signs point towards the need of adopting the strategy of postponement/delayed
Contains high proportion of ubiquitous material of the customer at all stages of product life cycle holds the key to long-term growth. The knowledge of how well the enterprise understands and meets the distinct preferences and expectations of its customers can be useful for aligning the supply chain strategy with changing business needs.
differentiation or risk pooling. Postponement aims at delaying some supply chain activities until actual customer demand is realized. It minimizes the impacts of forecast inaccuracies by keeping products as generic as possible in the early stages of supply chain and deferring the customization or final assembly till the actual customer order is received. This eliminates the need to maintain inventory buffers of high value components, which are specific to a particular market. In some cases, enterprises can even delay the implementation time of activities like distribution or the actual delivery of the product till the customer demand is firmed up. In this kind of strategy enterprises maintain low inventory levels at retail outlets or the last point of storage and pool the dealer inventory in their own distribution centres. Postponement is not new and has been tried with varying degrees of effectiveness by many till date. The postponement strategy is commercially viable when the demand variability is high. Hence, the post recession period is the perfect time for its implementation. The strategy not only helps enterprises to address the needs of a specific market in a cost efficient manner but also avoid the risks of inventory obsolescence resulting from variable demand.
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supply chain & logistics Post recession, supply chain strategies and the industry fit... Industry
Postponement
SKU Configuration and Supply network Dynamic rationalization customization collaboration pricing
Hitech CPG Industrial machinery Oil & Gas Pharmaceuticals Enterprises can effectively leverage postponement strategy to reduce lead-time, financial risk and supply variability, if they adopt best practices in inventory replenishment such as vendor-managed inventory (VMI) and have the majority of their business-critical information systems operating in real-time. Postponement is a very effective tool to switch the production from Make-to-Stock (MTS) environment to Assemble-to-Order (ATO) environment. However, enterprises are advised not to force-fit postponement in their supply chain strategy. A thorough analysis of supply chain attributes such as sub-assembly component commonality, production cycle times, delivery lead time expectations etc, proves useful to assess the relevance of postponement strategy. While the strategic shift towards postponement can improve supply chain responsiveness, implementation
Supply chain cost comparisons
costs could be prohibitive, since it calls for modifications in supply network activities like procurement, design, production and transportation etc. In industries, where postponement strategy is not so relevant, enterprises could look at other approaches for supply chain optimization like SKU rationalization, product customization and configuration and supply network collaboration. All these approaches are applicable in varying degree depending on the type of industry.
Convert non-operational manufacturing facilities into assembly units or distribution centres: Upsurge in demand stoked by an expanding economy might tempt enterprises to restart the closed facilities and revert to old systems. This approach may be sub-optimal in the changed economic scenario and should be reviewed critically. Enterprises should leverage sunk investments made in facilities that had to be closed due to the relocation of manufacturing operations in low cost countries. These non-operational manufacturing or distribution facilities can serve as potential centres for distribution, assembly, testing and labeling.
Introduce dynamic pricing to seek a trade off between price and delivery lead time: The economic recovery provides an opportunity to pursue high value business by segmenting customers based on needs and price sensitivity. The enterprises particularly from hi-tech, IM&C, oil and gas verticals can roll out pricing policies, which help them gain price advantage for short
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delivery lead time. Accordingly, the ability to command premium price for express orders and offer discounts for planned orders with long lead times creates opportunities to counter balance the increase in supply chain costs. Dynamic pricing is a mutually beneficial proposition both for the enterprises as well as its customers. While the enterprise has an advantage in terms of lead-time and reduced demand variability, customers reap benefits from low price. Implementation of the dynamic pricing will receive a boost, if enterprises announce sales incentives to maximize profitability and not just revenues.
Conclusion
It is time now that enterprises with network of global manufacturing operations craft new supply chain strategies and be ready to capitalize on the economic resurgence. While there is no single strategy that would work for all types of industries and scale of operations, some common approaches would be important to consider. The trick is to choose the appropriate strategy for the company and implement it without losing time. A well-implemented strategy based on the above suggestions might help enterprises reduce supply chain costs while, improving the customer service levels and minimizing the supply chain risks. Milind Joshi is Vice President—Manufacturing, Patni.
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information technology
Recession Wins Procurement A Position On The CEO Agenda A recent worldwide survey shows that—although the dark cloud of recession has gone away, its shadow is still to move off, and this is stimulating stringent focus on further cost control. However, as far as the ‘procurement’ function is concerned, top managements are concentrating on overall value contribution.
C
apgemini Consulting, the strategy and transformation consulting brand of Capgemini Group, has recently released the 2010 Global Chief Procurement Officer (CPO) Survey, which demonstrates that ‘procurement’s’ visibility and standing in organisations has taken a step up. The 2010 Global Chief Procurement Officer Survey is based on over 150 responses from the CPOs and senior Supply Chain leaders of over 150 global companies from Europe, Asia and the Americas, representing a broad cross-section of sectors including manufacturing, financial services, energy, utilities, retail, public sector and telecommunications. Key findings of the survey are listed below. Around 65 per cent of the CPOs and senior Supply Chain leaders surveyed felt that the economy is showing clear signs of recovery from recession, although the mindset has not completely returned to ‘business as usual’. Over 60 per cent of respondents, however, confirmed that the ‘procurement’ function has emerged from the global economic downturn as a winner, with an improved image within their organizations. An additional 20 per cent of respondents went further to state that ‘procurement’ is now positioned strategically for future
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growth. Cost reduction continues to be a major focus area with savings targets increasing as they did in 2009 (over 40 per cent of respondents have savings targets at nearly 10 per cent for 2010). Strategies that ‘procurement’ executives are employing to achieve these targets include—contract re-negotiation, tighter contract compliance, global sourcing, hedging and moving to outsourced procurement services. However, almost 80 per cent of survey participants responded that top management expected them to improve the overall value contribution of ‘procurement’. There is a clear and emerging focus on strategic initiatives that can enhance the value delivered by ‘procurement’. These strategies include proactive value creation through innovation; contribution to corporate sustainability objectives; developing reciprocity agreements with suppliers; increasing speed to market and a focus on Total Cost of Ownership (TCO). Nearly 70 per cent of the respondents indicated that ‘procurement’ reports into the board room
and another 25 per cent report directly to the CEO. This clearly shows the improved position and importance of the ‘procurement’ function within the organisation. There is a continued trend towards centralised ‘procurement’ operating models with over 40 per cent of the surveyed companies favouring the centralised model and another 50 per cent favouring a center-led/hybrid model. The amount of organization spend controlled by ‘procurement’
has increased slightly compared to last year. For over 70 per cent of the companies surveyed, ‘spend under control’ of ‘procurement’ is well above 60 per cent. This trend is attributable to the increasing influence of ‘procurement’ on sourcing various nontraditional categories—including for instance legal or other professional services.
industry 2.0
The process of ‘procurement’ involves multiple functions, and at every stage there is a potential of saving cost.
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information technology
“We see midsize companies increasingly turning to PLM solutions” Oracle recently unveiled its ‘Agile Customer Needs Management’ offering to manage and automate the frontend innovation process. The new product is integrated with both the Product Lifecycle Management (PLM) process and product value chain to help ensure traceability and an idea-to-design to launch a closed loop product development process. Rathinakumar Vaidyanathan, Director of SCM, PLM & Logistics Applications, Oracle Asia Pacific, talks to Reshmi Menon, regarding launch of the new product and growth of PLM solutions in the manufacturing industry. Excerpts... What was the purpose behind the launch of the Oracle Agile Customer Needs Management? Today’s product owners have numerous channels for the input of ideas, viz., emails, meetings, customer care escalations, quality, engineering, user groups and partners. These ideas are stored in a huge variety of formats such as spreadsheets, documents, notebooks and in the original email in various locations, under different users’ control within the enterprise, and most are never utilized. The result is that product owners may not spot market needs as a result of this fragmented information landscape, and thus miss out on key opportunities and product ideas. Oracle Customer Needs Management provides a single shared collaborative ideas container for all the product owners in an enterprise that can be searched, ranked, organized and approved into features, products and product plans, which become persistently connected to the final product. In other words, this new Oracle Product Lifecycle Management (PLM) solution has been introduced
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Rathinakumar Vaidyanathan Director of SCM PLM & Logistics Applications Oracle Asia Pacific
to manage and automate the fuzzy front-end innovation process across the product value chain.
and supply chain to conceptualize, design, source, build, sell, service and dispose products.
Which manufacturing verticals will benefit the most from it? Pharmaceutical and life sciences, high tech (electric and electronic component manufacturers across all industries, viz., manufacturing, telecommunications, etc) and consumer goods.
How has been the response from SMBs towards PLM and other manufacturing IT solutions in India? A 2008 Aberdeen Group report states that the use of PLM among SMBs is expected to grow 200 per cent by 2010. According to the report, SMBs with PLM reported strong RoI including an 18.5 per cent improvement in product profit margins. When compared to SMEs without PLM, they have 22 per cent fewer Engineering Change Orders (ECOs) after design release, approve or reject ECOs 54 per cent sooner and release designs to manufacturing 16 per cent faster. Product development is a key challenge for midsize companies (just as it is for large enterprises) with several factors including less resources, available skill sets and budgets—being particularly salient. Therefore, we see midsize companies increasingly turning to PLM solutions to assist their product development.
How is the growth of PLM solutions in the manufacturing sector? Traditionally, PLM solutions have been prevalent in the automobile, medical devices and high tech industries across the world. In India, it has been mostly automobile companies and companies engaged in heavy industrial manufacturing that have invested in PLM solutions. In this industry, the enterprise product record is a key intellectual asset, containing rich information that uniquely defines all aspects of a product at each stage in its lifecycle. The product record includes all the information required by an enterprise and its extended design
- technology management for decision-makers
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management & strategy
Consumers DemanD Control through
Human macHine interface tecHnology In common parlance, the interface between man and machine in the vehicle is called Human Machine Interface (HMI). Today’s complex electronic systems and other designs in vehicles pose the demand for new solutions—providing ergonomic control and display to ensure safe vehicle handling. Role of HMI designers is very crucial to reduce the stress of the vehicle driver. Thus, thorough understanding of the driver’s needs can lead to better HMI design. by mike trudel
‘H
uman-Inter-what?’ clipped Simon, peeking over his morning paper with a loud crinkle. A favourite farmer of seventy-eight years at my local coffee shop, Simon never failed to give me the truth precisely as he saw it. I had asked him what he thought of Human Machine Interface Technology. “Sounds like science fiction to me. Don’t we already interact—interface, whatever—with machines? How else are we supposed to run the things?” I laughed, but in a down-toearth, back-to-common-sense way, Simon was right on. One encyclopedia explains Human-
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Machine Interface (HMI) technology, also known as user interface technology—as the whole means by which human users interact with a particular system, such as a device, computer program or machine. HMI provides a mechanism by which users can input or manipulate a system, and provide the system a way to output or produce the effects of the users’ manipulation. It is not really so complicated. HMI is a broad term describing the ‘layer’ between a person interacting with the machine and the machine itself. Applications are varied - from medical prostheses, such as cochlear implants, to computer-human interactions to
the operation of vehicular Global Positioning System (GPS) devices. For example, Web-based user interfaces accept input and provide output by generating Web pages transmitted via the Internet, which are then viewed by users through Web browser programs. Different implementations are utilized to provide real-time control in a separate program, effectively abolishing the need to refresh a traditional HTML-based Web browser. The more exciting technologies include touch interfaces, which serve as excellent examples of the public’s increasing demand to be in control of their environment and their machines. Touch
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management & strategy ● Renesas and Morpho have jointly developed a Human Machine Interface (HMI) technology that enables control of the TV sets and other home electric appliances through human gestures, such as waving and turning of one’s hands. To control mechanical devices via human gestures, the video and image captured by a camera require real-time real-time image processing as follows: detecting multiple unspecified faces and identifying which of them is the controller, tracking the controller’s hand motions and detecting the direction and extent of the controller’s hand motions. Recently, applications for image recognition technology, such as sensor functions utilizing camera images, have expanded, and attracted significant interest from a variety of fields for optimized solutions. ● Nuance Communications and IBM
have recently entered into a five-year joint-research initiative designed to advance next-generation natural language speech technologies. Leveraging Nuance and IBM’s research and development and development expertise, the iniexpertise, the ini-
tiative is designed to expand the global use of speech technology and set new benchmarks in design, usability and technical excellence. IBM and Nuance have long focused on speech technology to create and
interfaces are graphical user interfaces using a touch-screen display as a device for both input and output. This insistence is becoming apparent in the automotive industry, where consumers are demanding to be well-connected and in control. Most vehicular GPS devices, for example, are touch interfaces. Steering wheel controls can also use HMI technology to keep drivers connected through different wireless and electronic apparatus. Certain corporations are even releasing vehicles in which much of the cockpit is run by HMI technology, such as reconfigurable instrument clusters, reconfigurable head-up displays (HUD), warning systems and multi-functional controls. The trend seems to be in fewer gauges—reducing six-gauge systems, for example, to fewer with reconfigurable displays. There may be more use of a center
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facilitate more meaningful interactions between human and machine, and among people. Today, businesses and consumers alike can easily exploit the technology to communicate naturally technology and intuitively. Together, IBM and Nuand ance intend to further enhance these ance mass market speech interface solumass tions to increasingly resemble humantions to-human interaction, whether in the to-human car or home, on a mobile device, PC and telephone, or within settings such as customer service, healthcare and many others. According to Paul Ricci, Chairman and CEO, Nuance, “Speech techman nology already enables highly intuitive nology interactions, but there is still significant potential for the development and availability of next-generation speech solutions that allow people to communicate with machines in a natural, unconstrained fashion.”
cockpit, touch screens and reconfigurable thin film transistor (TFT) displays in the future, as well. A report about HMI technologies stated the importance for designers to understand that HMI determines an operator’s perception about a machine. Designers are of vital importance, it went on to say, because operators need to be able to trust the apparatus— and trust their interactions with it—in order to make the technology successful. How skillful and mindful HMI designers are in their work will, in large part, determine that. HMI empowerment will come through ease-of-use features, ease of programmability, easy understanding and clear information displays. According to that study, a portion of the designer population still considers HMI just a tool, but many technologies with vital benefits are poised to make HMI the
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central command station for monitoring and control operations. This technology has the power to transform equipment into better interactive instruments. Focus will increasingly be on the integration of hardware and software across horizontal and vertical lines, as well as on security issues associated with HMI software, supervisory control and data acquisition (SCADA) systems. Escalating complexity and the high volume of connections require this to be of current and future concern. Likewise, agility and portability are proving to be important trends in humanmachine interaction and user experience research. Mike Trudel is a freelance writer. Delphi Corp. (www.Delphi.com/4Innovation or www.Delphi.com/4Connected) is poised to apply its expertise and know-how to provide vehicle manufacturers and consumers with in-vehicle connectivity. Source: http://www. isnare.com.
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management & strategy
Designing Vacuum Systems
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wide range of vacuum pumps available today present situations in which the user can get confused regarding their optimum selection. Certain pumps can be used as ‘stand-alone’ solutions to pumping problems while others have to be used in combination along with intermediate essentials such as inter-stage condenser, traps and filters. To add to all this confusing array of pumps and inter stage accessories, there is a need for their integration and automation, which in turn demands specific instrumentation, control, inter-locking etc. All must be designed to meet the process requirements, fulfill safety considerations and yet allow for easy operation and maintenance. The selection of a vacuum system, thus requires expertise, knowledge and experience with technical trouble shooting skills to stabilize the process, maximizing process efficiency.
Designing a vacuum system
The simplest way to select a good vacuum system is to approach a specialized vendor, capable of providing a packaged vacuum pumping solution. The essential input a professional specialist would require is inlet pumping speed/mass through-put, working pressure levels and process details. Generally, this basic information is sufficient to design an efficient vacuum pumping system. An experienced vacuum system designer is well aware of the process requirements, which may go through a drastic pressure/temperature change during the process, since most of the batch processes have variable vacuum and temperature requirements changing with the advancement of the process. A competent designer would design a vacuum pumping system suitable for the specific application meeting the process inputs, allowing suitable compensation to process variations, as would be encountered during the actual process from the beginning to the end of it. The designer would address all the safety, automation and instrumentation issues required to meet the process requirements.
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Advantages of professional approach
It is best to let a specialist design the complete vacuum package and guarantee its performance. The major advantages of doing so are: Optimum sizing of system capacity: The user is fully aware of his process requirements, but may not have the experience and inclination to calculate and select the optimum hardware required. A system vendor, on the other hand, has plenty of experience and generally knows what works best and most economically. The system vendor can also provide the most effective product combination to meet the users’ process requirements. Automation and instrumentation: The actual user has to depend on the system vendor to deliver the proper equipment as inhouse maintenance staff have their hands full in just keeping the existing systems in operation. Further, it is impossible and uneconomical to keep all spare parts. The system vendor not only keeps an inventory of essential spare parts, but has the service personnel to do repairs and replacement. Future upgrades: The system vendor is always improving both the hardware and the software. Over the expected five to twenty years of life of the equipment, such improvements are of vital importance for economics and efficient performance. Safety issues: The system vendor would guide the actual user on all safety practices and correct use of equipment supplied.
Evaluating a system vendor
The most fundamental rule is to look for ‘track record’. What is the vendor’s reputation in the market? Does the vendor have ISO and ISI ratings for his product and design ability and, more importantly, are they are up-to-date? Apart from this an acrossthe-table meeting will quickly firm up one’s opinion about the vendor’s ability or lack of it. Even if one does not have great engineering abilities, attention to the basic points will help ensure that there are no goof-ups in vendor selection. Source: Everest Blower Systems
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It is beneficial to incorporate services of a specialized vendor to design a good vacuum system for pharmaceutical chemical plants.
Typical dry pumping system for solvent recovery with condenser at discharge
A typical vacuum pumping system designed for drying in a pharmaceutical industry
In-house F.A.T. (Factory Acceptance Test) is being conducted to verify design parameters.
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management & strategy
Achieving The Best
Product Development An exchange of design parameters between CAD and best-in-class CAE tools will enable consumers to get the best of both worlds. by rajneesh shinde
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oday, virtually every new product developed by a major manufacturing firm begins its life as a computer model in a Computer-Aided Design (CAD) system. Engineers often simulate the behaviour of a product and analyze its performance using Computer-Aided Engineering (CAE) software even before the first prototype part is made. As a product evolves, the designer is guided by the insights gained from simulating the manufacturing processes and service life of the product. The degree to which the designer and analyst share information between each other and other members of the product develop-
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ment team is often critical to the success of the product’s design. Ideally, one would expect that an environment where CAD and CAE are performed simultaneously in a single software tool would provide the greatest efficiency and quality for the product development process. In practice, the best overall product development environment is often achieved by carefully selecting best-in-class CAD and CAE systems that work well together.
CAE framework
The CAE framework includes the CAE modeling and visualization environments, solvers,
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compute resource managers and vertical solutions built on top of the modeling and visualization environments. Virtual validation of a design starts from an initial feasibility study, which determines the process required to manufacture the part. Feasibility studies are typically performed through one step simulations that provide useful information about the smallest blank required and the number of stations required to manufacture a part. Improvements in simulation technology can speed the product development process in every facet, from the use of virtual reality imaging for focus groups to analyzing product performance under a variety of engineering criteria. To the extent that product simulation technology can be increasingly brought forward in the product development time cycle, the ‘churn rate’ of ideas can be boosted, allowing many ideas to be quickly examined before money is committed. In addressing the demand for higher quality products in shorter time, designers have turned to virtual simulation. The goal is to produce tools, which form the product ‘right first time’. Simulation was initially used to ‘trouble shoot’ a production problem but is now being used to design and try out the tools before any metal is cast. The extensive use of numerical simulation at any stage of product development can drastically reduce cost and time spent in soft and hard tooling. Both academia and commercial firms are working to develop these virtual simulation analyses.
Advancements
Significant advancements in CAE technology allow product developers to visualize a concept and perform highly complex loading in a 3-D virtual environment. Using finite element techniques
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to analytically represent the part and then simulate load and constraint conditions, designers and engineers are able to predict the performance of a concept design in advance of any investment in tooling, prototyping or physical test validation. ‘What-if’ studies can also be conducted to determine the effect of varying geometric features, material thickness, material properties and/or alternative load cases. This allows manufacturers to have greater confidence that the best solution has been achieved before initiating a physical validation phase. The benefits of using CAE methods early in the design process include shorter development cycles, reduced prototype and testing costs and improved product attributes. Such up-front CAE methods include optimizing the product for design features, weight, performance and/or material. The principal users of the CAD system are the designers and design engineers. Component-level CAE can be done within the CAD system, but system-level CAE is conducted in the CAE framework. Engineering specialists use the CAE framework to conduct detailed analyses of particular product attributes such as strength, safety, noise and vibration and durability. Certain elements of the CAE framework can actually be integrated into the CAD system to conduct the component-level analyses for which design engineers would typically be responsible. Modules for part topology synthesis, basic linear analysis and results visualization all have a logical home in the CAD system. Ideally, the CAE components that are integrated into the CAD system should be consistent with those used in the full CAE framework.
Best-in-class tools
Best-in-class CAE tools allow analysts to modify designs in many ways that CAE tools embedded in CAD systems do not. Best-in-class CAE tools can pose special design parameters directly to finite-element solvers and then run design optimizations automatically in the background. Manual variation of
best overall product development The
environment is often
achieved by carefully selecting best-in-class CAD and CAE systems that work well together. design parameters within a CAD system can actually end up being less effective and less efficient when the goal is to optimize the performance or robustness of a design. Even so, some suppliers of best-in-class CAE tools are focused on enabling both types of design variation. Expect to see the exchange of design parameters between CAD and best-inclass CAE tools in the future. This will enable consumers to get the best of both worlds. Rajneesh Shinde is Marketing Director, Altair India.
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product update Vacuum Booster
Coolant Filtration Media
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verest has introduced dry mechanical vacuum booster pump, that provides advantages such as improved working vacuums, lower power consumption, prevention of oil back streaming and contamination and an oil-free working environment. The unit is manufactured on imported CNC machine. The rotating parts are balanced for vibration free operation. The production range of the booster pump covers capacities from 2,000 LPM to 1,00,000 LPM in single stage and any capacity in parallel configuration with working pressures better than 0.001 Torr. The product is suitable for vacuum distillation, object metallizing, vacuum impregnation,
roll metallizing, semi conductor processing, CFL, tube light and bulb industry, vacuum casting, sputtering, space research and development activities and other applications. Everest Pressure & Vacuum Systems Tel: +91-11-45457777 E-mail: info@everestblowers.com Website: www.everestblowers.com
olymer Group Inc (PGI) industrial division has developed filtration media for a variety of industrial sectors including automobile, rolling mills, metal working operations, lubricating works etc. The company has launched different media for various machining operations. The non-woven media is made from variety of fibres such as viscous, polyester, a combination of viscous and polyester,
askel International has introduced an updated HydroSwage tube expansion system, viz., Mark V system that expands heat exchanger tubes into tube sheets through the direct application of high internal hydraulic pressure. The new product is designed for use in fabricating heat exchangers for steam generation, condensation and evaporation. The unit also finds applications in power generation, metalworking, air conditioning, chemical process-
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anfoss Industries has launched its new range of thermostatic expansion valves (TE). The new easy-to-mount range of expansion valves comes with a special ‘and Match’ , which helps provide flexibility. The Mix and Match parts program makes it possible to select the exact valve for different refrigerant, capacity, connection size and support design for engineers to optimize the system. Besides, the product also includes various design features like dual diaphragm and orifice seat assembly. The new product range covers all applications and is built up of four valve sizes covering the capacity range combined with the orifice program. The valves comprise thermostat expansion valves in stainless steel for smaller and medium sized plants.
ing, petroleum and oil and paper mills. The product includes touchscreen electronic controls for set up of all process functions. Heavy duty casters help the machine to roll the system up to the tube sheet face to perform expansion.
Synthetic Gear Oil
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and Instrument, a unit of Ametek, has launched iQ series of industrial non-contact infrared thermometers designed to meet the needs of high-temperature process control applications. The new product features an all-metal design with integrated water cooling and air purge standard and screw terminal and power connections. The thermometer can be configured using any permutation of four wavelengths, four feature levels and four focus distance to suit a wide range of processing requirements. The product offers alarm relays, digital process control and advanced signal processing that simplifies complex process control applications. Land Instruments International Tel: +44-0-1246-417691 E-mail: land.infrared@ametek.com Website: www.ametek-land.com
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Danfoss Industries Tel: +91-44-65501555 E-mail: danfoss.chennai@danfoss.com Website: www.danfoss.com/india
Milton Roy India Tel: +91-44-22254000 E-mail: rabinarayan.panda@miltonroyindia.com Website: www.haskel.com
IR Thermometer
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Gopani Product Systems Tel: +91-79-26441972 E-mail: info@gopani.com Website: www.gopani.com
Thermostatic Expansion Valve
Tube Expansion System
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depending upon the type of application. Different grades for coolant filtration i.e. INT series, INTN series, INTHU series, INTHCL series, are available. The filtration media finds applications in emulsions, semi-synthetic liquids, solutions, pure oil, wastewater and alimentary liquid.
- technology management for decision-makers
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xxonMobil has introduced Mobil SHC-branded synthetic gear oil to protect wind turbine gearboxes. The product is suitable for gearboxes used to power wind turbines. It functions extending the interval between oil changes from 18 months to three years or more. The oil is expected to help reduce maintenance costs, extend oil drain intervals and provide protection for key components, even under extreme weather and load conditions. The product includes a balanced additive system and provides protection against conventional wear modes such as scuffing and micropitting. The oil
also offers oxidation resistance and low temperature fluidity. ExxonMobil Tel: +1-800-4439966 Website: www.exxonmobil.com
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Pressurization System
LED Luminaire
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J Star has introduced the Series 55-EX, an LED luminaire that can be used with a sight glass in hazardous areas. The product gives operators a well-lit glare-free view of processes through a sight glass. The unit is available with an aluminium housing (ASL55-EX) or for harsh environments with a stainless steel housing (ESL55-EX). The product produces light without heat and is suitable for heat-sensitive processes and in sight glass applications. The device has an operating life of approximately 50,000 hours. These are not susceptible to shock and vibration from the process system. L J Star Tel: +1-330-4053040 E-mail: view@ljstar.com Website: www.ljstar.com
Channel Logger
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&D has introduced the new RTR-574, a wireless 4 channel logger that monitors illuminance, ultra-violet, temperature and humidity. In addition to these parameters, the unit is also capable of displaying cumulative illuminance and cumulative amount of ultraviolet light in the LCD display. The wide luminosity range covers 0 to 130k lx and low light resolution to 0.01 lx. The product includes a wide range from 10 to 99 per cent of relative humidity along with an expanded tempera-
ture range from 0° to +55°C. The unit measures 2-inch x 3-inch and operates on one AA battery. The product’s data capacity can store up to 8,000 readings in one-time or endless recording mode. The machine can be used for automatic downloading of logged data, real time monitoring and warning notifications by email or text to cell phones.
chaeffler Group has developed rolling bearing for wind turbine gearboxes, which is resistant to the effects of slippage and also prevents slippage from occurring
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epperl+Fuchs has launched the Bebco EPS 6000 series Type X / Ex px purge pressurization system. The product includes updated firmware and new hardware options that facilitate in easy implementation of purge systems. The product offers automatic temperature control with the temperature hub and sensor and an updated programming menu. The product comes with all Bebco family system features as standard, is user-configurable to satisfy particular applications, and can be used with enclosures up to 250 cu. ft. (7.1 cu.m.) of volume. Both the control unit and vent are universally mountable for all enclosure sizes.
The system controls and monitors compressed instrument air or inert gas through the protected enclosure(s). Pepperl+Fuchs Tel: +1-330-4860002 E-mail: pa-info@us.pepperl-fuchs.com Website: www.pepperl-fuchs.us
Gravity Conveyor Filter
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orgensen Conveyors has introduced a new line of standard gravity roll media filters. The unit includes a clean coolant tank and coolant supply pump. The product is offered in 30, 60 and 90 gpm flow rate capacities and four tank sizes. The unit uses deep filter cakes for optimal performance in grinding and metal cutting machining operations, where very fine chips are generated. Seal wheel provides positive seal of filter media, ensuring no fine particulate migrates around paper and into the clean tank. To meet different coolant volume capacity requirements, 60 and 90 gpm filters can be mounted interchangeably on any of 3 tank sizes. Jorgensen Conveyors Tel: +1-262-2423089 Website: www.jorgensenconveyors.com
TandD US Tel: +1-518-669-9227 Website: www.tandd.com
Rolling Bearing
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Wireless Hoist Control System in the first place. The new product incorporates three tube rollers, which enable the bearing to rotate without slippage under all load conditions. At higher loads, the bore of the cylindrical rollers ensures sufficient deflection of the larger rollers so that that they are not overloaded. This means that the load is evenly distributed to all the rolling elements. Schaeffler Group Tel: +1-803-5488500 E-mail: info.uk@schaeffler.com Website: www.ina.com
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emag Cranes & Components has introduced DRC-MP radio control systems, designed for use with Demag DR PRO rope hoists. The product provides a range of powerful features that enhance operator control and offer added flexibility when compared to wire connected controls. The control systems are available in two ergonomic designs, the DRC-10 pushbutton transmitter and the DRC-J joystick transmitter. Both
industry 2.0
designs come standard with bi-directional communication, an impact and temperature resistant housing design, two buttons for special functions and a range of approximately 328 feet. Both designs feature a graphic display showing battery capacity, installation status and warning messages. Demag Cranes and Components Tel: +1-440-2482400 Website: www.demag-us.com
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product update Gear Reducer
Fibre Optic Identifier
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rove Gear has introduced the IronMan E series of gear reducer, which operates at 90 per cent efficiency to maximize system effectiveness. The unit has a compact housing design and utilizes helical-bevel gear technology. The product is available in four models with double reduction ratios from 7.8:1 to 60:1 and power capability to 8.50 hp. Triple reduction units are available by adding ratio multiplier. The units feature synthetic lubricant
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AO Instruments has released a fibre optic identifier, suitable for use in the installation and maintenance of telecommunication and CATV systems. The new product detects signal frequency tones of 270 Hz, 1 kHz and 2 kHz. The unit identifies the traffic direction and frequency tone of a signal in an optical fibre and indicates status through LEDs. The model A0640002 features low bending loss and displays three levels of signal intensity. The unit identifies optical signals at wavelengths from 900 to 1650 nm and does not require opening a fibre at a splice point for identification.
cover sealed with O-rings and Viton double-lip seals. Grove Gear Tel: +1-262-8781221 Website: www.grovegear.com
GAO Instruments Tel: +1-416-2920038 E-mail: sales@gaoinstruments.com Website: www.gaoinstruments.com
Deodorizer
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aimer Industries has launched an environmentally compatible deodorizer and cleaner designed for industrial applications. The new mobile auto detailing product applies an eco-green microblasting chemical technology that penetrates noxious substances, rendering them easy to remove. The product is designed for removing the toughest odours caused by faecal waste, smoke and food, films and residues. The unit leaves behind a mild and pleasant scent and is effective on most surfaces. The deodorizer can be applied with a brush by hand for
spot clean-up or with heated or unheated carpet extractors, rug shampooers or steam extraction systems. The product is available in containers as small as 5 gallons and as large as 5,000 gallons. The chemical includes a range of products for vehicle interiors and exteriors including truck and car exterior washes, upholstery/ carpet stain lifters and protectors, non-toxic degreasers, auto glass rain repellent solutions and metal cleaners. Daimer Industries Tel: +1-781-3934900 Website: www.daimer.com
Industrial Foot Switches
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utomation Systems Interconnect has launched a line of industrial foot switches. The new product is suitable in applications to control machinery and other equipment. The KG thermoplastic and the KR metal versions can be ordered complete with or without pedal protection cover. Besides, there is a version with a safety lever and there are one pedal and two pedal versions. The other features of the
Portable Waterjet Cutter
Power Inverter
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et Edge has introduced the Spyder abrasivejet radius and circle cutting system, a portable abrasive water jet cutting system designed for use in potentially hazardous environments. The system can be set up on the side of tanks, small vessels and large diameter piping. It is held in place by vacuum cups and features a self-aligning centering pin for fast and reliable setup. Motion components are made from non-ferrous materials, and cutting head manipulators are powered by pneumatic motors. The system is powered by Jet Edge’s 60,000 psi (4,100 bar) waterjet intensifier pumps, which are available in electric or diesel models up to 280 HP. Jet Edge Tel: +1-763-4978700 E-mail: sales@jetedge.com Website: www.jetedge.com
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lore Automotive has introduced model no PI20000X, a 2000 Watt power inverter, from Solar. The new model features Solar sonic compression technology and provides power from a 12 volt power source to a wide variety of power equipment, electronics and appliances. The unit delivers 2000 Watts of continuous power and 4000 Watts peak power. The model features temperature-activated fan control to eliminate unneces-
product include pedal actuator lock, two-stage safety lever and the two-pedal with left pedal free actuation and right pedal with safety lever. Automation Systems Interconnect Tel: +1-877-6505160 Website: www.asi-ez.com
sary draining of the 12 volt power source when in standby mode. Besides, the unit also features three 110 VAC outlets and an integrated mounting plate for fixed mounting on horizontal or vertical surfaces. The sonic compression technology utilizes a proprietary modified sine wave design to provide power throughout the operating range of the inverter. Clore Automotive Tel: +1-913-3101053 Website: www.cloreautomotive.com
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product update Pressure Sensor
Dual GigE Camera
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pson Toyocom has launched small pressure sensor, XP6000CA, which provides accuracy and resolution. The sensors are used in manufacturing equipment where highly accurate pressure measurements are needed, and in measuring instruments that calculate the water level of rivers or the water level behind dams based on water pressure. The product employs a new QMEMS pressure-sensing structure that allows the sensor to squeeze into a tiny 7.0 × 5.0 × 2.0 t mm package yet provides total pressure accuracy (±30 Pa) and high resolution (0.3 Pa).
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The sensor element is made of highly stable quartz crystal and offers stable output under varying external temperatures and environmental conditions. Toyocom Tel: +1-847-5938780 Website: www.epsontoyocom.co.jp
Industrial Degreaser
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olvent Kleene has launched D-Greeze 7880, a VOC-free, nonalkaline industrial degreaser/cleaner. The new product offers performance without exposing users and the environment to toxic components or emissions. The unit is biodegradable, non-flammable, non-corrosive and non-reactive. The product is compatible with most existing degreasing methods and equipment, including immersion tanks, parts washers and spray wands. The product has a neutral pH and is suitable for use with all painted and unpainted ferrous and non-ferrous metals; including aluminium, anodized aluminium, carbon steel, stainless steel, magnesium, zinc, titanium and dichrome treated titanium as well as most non-metals. The product is designed to perform at room temperature. Solvent Kleene Tel: +1-978-5312279 Website: www.solventkleene.com
aumer has introduced new SXG dual GigE camera that is capable of transferring data at a rate of 240 MB/s at distances up to 100 meters. The new product is suitable for machine vision applications requiring high speed and high resolutions. The product’s interface features two Ethernet cables that improve security and ensure that data is maintained even if one Ethernet cable is disconnected.The camera is equipped with Kodak sensors featuring Quad Tap readouts. Image resolution ranges from 1 to 8 mega pixels and frame rates range from 16 to 120 frames per second. The units are available with Power over Ethernet (PoE) technology, eliminating a separate power cable. Baumer Tel: +1-800-9379336 E-mail: sales.us@baumer.com Website: www.baumerelectric.com
Peristaltic Pump
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ilden has introduced King Cobra series peristaltic pump suitable in chemical-transfer processes. The new product features a seal-free design that is dry-run capable and eliminates potential leak points. This allows it to handle a wide variety of fluids, ranging from those that are abrasive and aggressive to others that are sheer-sensitive, viscous or particle-laden. The pump has volumetric capacity, making it wellsuited to the dosing applications in chemical transfer. The device provides up to 9 meters of dry-suction lift, while the heavy-duty ductile-iron and stainless-steel construction allows
Electroplating System
Acoustic Calibrator
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ovellus Systems has introduced the SABRE 3D electroplating system for the advanced wafer-level packaging (WLP) market. The product includes SABRE 3D’s flexible and modular architecture and utilizes technology from Novellus’ SABRE Electrofill copper damascene interconnect system. The new unit offers a range of WLP processes, including copper through-silicon vias (TSV), copper
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redistribution layers (RDL), pillars, underbump metallization and lead-free micro-bumping. The new SABRE 3D platform incorporates technological advances to enable higher production yields, improved uniformities and reduced costs driven by advanced WLP applications. Novellus Systems Tel: +1-408-9439700 E-mail: info@novellus.com Website: www.novellus.com
- technology management for decision-makers
eggitt Sensing Systems has launched the new Endevco model EM42AA piston phone, a battery operated handheld precision acoustic calibrator. The new product acts as a stable source for reliable calibrations of measurement microphones, sound level meters and other acoustic equipment. The unit offers a sound pressure calibration level of 114 dB re. 20 µPa, at a frequency of 250 Hz ±0.5 per cent. Each pistonphone is factory calibrated with an accuracy of
for discharge pressures as high as 15 bar (217 psig). The pump is available with a choice of three hose options, viz., natural rubber, Buna-N and EPDM. The pumps are available in nine sizes (0.63-inch to 4-inch) with flow rates ranging from 0.44 gpm to 158 gpm. Wilden Pump & Engineering Tel: +1-909-4221730 Website: www.wildenpump.com
±0.08 dB re. 20 µPa and supplied with an individual calibration certificate. The model has a dual-colour LED above the ON/OFF switch to indicate both battery condition and operational stability. When the pistonphone is operating properly, the LED shows green. If the LED displays as red during pistonphone operation, speed is incorrect. Meggitt Sensing Systems Tel: +1-800-9826732 Web: www.meggittsensingsystems.com
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R.N.I. No. MAH ENG/2001/4796 Tech/MH/MR/SOUTH-127/2006-08