Industry2 0 vol 01 issue 05 march 2014 by bhupinder sharma

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A 99 MEDIA PUBLICATION

VOLUME 01

ISSUE 05

MARCH 2014

PRICE 100

LEADERS FROM TWO KEY INDUSTRIES TALK ON THE LATEST CHALLENGES COVER STORy

THE UNSEEN DIMENSION

DELIVERING THE GREATEST VALUE IN THE INDUSTRY IS ESSENTIAL PAGE 18

PROMOTION & DEVELOPMENT

Vipin AgArwAl CEO Dalmia CEmEnt Bharat

4 KEY ATTRIBUTES OF CUSTOMER ENGAGEMENT ENGAGED CUSTOMERS ARE USUALLY BETTER ADVOCATES OF THE BRAND PAGE 07

VickrAm JAdhAV ViCE-PrEsiDEnt - ChP FOrtum inDia

editorial Volume 01 | Issue 05 | march 2014

Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: R Giridhar Managing Editor: P K Chatterjee (PK) Design Sr. Creative Director: Jayan K Narayanan Sr. Art Director: Anil VK Associate Art Director: Anil T Sr. Visualisers: Manav Sachdev, Shigil Narayanan & Sristi Maurya Visualiser: NV Baiju Sr. Designers: Haridas Balan, Manoj Kumar VP, Charu Dwivedi, Peterson PJ & Dinesh Devgan Designers: Pradeep G Nair & Vikas Sharma ONLINE & MARCOM DESIGN Associate Art Director: Shokeen Saifi Sr.Designer: Rahul Babu Web Designer: Om Prakash PHOTOGRAPHY Chief Photographer: Subhojit Paul Sr. Photographer: Jiten Gandhi Sales & Marketing Vice President: Naveen Chand Singh (09901300772) National Manager - Events & Special Projects: Arjun Sawhney (09880436623) National Manager - Print & Online: Rajesh Kandhari (09811140424) Product Manager: Siddhant Raizada (09873555231) GM (South & West): Vinodh Kaliappan (09740714817) Regional Mgr. (North): Vipin Yadav (09999885515) Regional Mgr. (South) : Anshu Kumar (09591455661) Production & Logistics Sr. GM - Operations: Shivshankar M Hiremath Manager - Operations: Rakesh Upadhyay Assistant Production Manager: Vilas Mhatre Ad Coordination: Kishan Singh Assistant Manager - Logistics: Vijay Menon Executive - Logistics: MP Singh, Mohamed Ansari & Nilesh Shiravadekar office address Nine Dot Nine Interactive Pvt Ltd Office No. B201-B202, Arjun Centre B Wing, Station Road,Govandi (East), Mumbai 400088. Board line: 91 22 67899666 Fax: 91 22 67899667 For any information, write to info@industry20.com For subscription details, write to subscribe@industry20.com For sales and advertising enquiries, write to advertise@industry20.com For any customer queries and assistance, contact help@9dot9.in Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd A-262, 2nd Floor, Defence Colony New Delhi-110024 Board line: 91 22 67899666 Fax: 91 22 67899667 Editor: Anuradha Das Mathur Plot No. 725 GES, Shirvane, Nerul, Navi Mumbai 400706. Printed at Tara Art Printers Pvt ltd. A-46-47, Sector-5, NOIDA (U.P.) 201301 www.industry20.com

Emerging

Challenges

t’s quite sometime now that the concept of ‘Internet of Things’ or ‘Industry 4.0’ has been the manufacturing industry’s buzzword globally. Undoubtedly, in manufacturing industry, the potential of the concept is quite high, however, the burning question is – how far are we (especially the developing countries) prepared to embrace it? One of the major challenges lies with the Internet services. As on date, none of the developing countries has a warranted seamless Internet service. Thus, developing, deploying and maintaining such a mammoth network is not an easy task. And unless everything is interlinked with everything (in manufacturing), the benefit will either be nil or partial. So, the questions are: where is the service assurance and where is the architecture? The next concern is logistics. Coordinating goods movement with a number of suppliers spread across the globe to maintain lean inventory is apparently impossible in developing countries, where the infrastructures are far from supporting the Just-In-Time (JIT) concept. Keeping a supplier’s warehouse near the manufacturing site and entering the goods in time – does not justify the real concept of JIT. So, how far will

industry 2.0

P. K. Chatterjee (PK) editor@industry20.com

‘Internet of Things’ really help the manufacturers of the developing countries? Yet another area of concern is coordination of the logistics vendors. It is not only an affair of the manufacturing organisations. Rather, a major contribution to the success of the ‘Industry 4.0’ movement has to come from the logistics partners. How integrated are their businesses in developing countries, where the target is mostly on profit in each trip and not on the ways to benefit from economy of scale? Some very big manufacturing companies (groups) may be having their own logistics wings to manage this challenge, but that is not the common picture. Last but not the least is the mindset of the manufacturers. That has to change drastically. Most of the suppliers operating in developing countries are operating on very low margins. Their efforts are also focused on incremental growth. And where manpower is still cheap compared to the developed countries, the question is why do we need that a component tells us about its destination, processing method or deviation from the standard way of handling it? Thus, a huge amount of ground work is necessary to make the ‘Internet of Things’ work effectively in developing countries.

- technology management for decision-makers | march 2014

contents departments Editorial....................................................01 Advertisers’ Index................................... 02 Industry Update.......................................03 Market Scenario..................................10, 11 Techwatch.................................................14 Product Gallery....................................... 45 Business Index........................................ 48

cover story

advertisers’ index

18 The Unseen Dimension

Rockwell................................................IFC

Beyond Design, Engineering, Procurement and Commissioning, there is an unquoted, yet very important element, which forms an unwritten part of every contract. Well! That is sound relationship built on perfect understanding of the needs of a project...

Hannover................................................ 15

Cover Design: Anil T

Premium Transmission......................... BC

Everest Pressure & Vacuum Systems............................................... IBC

Promotion & Dev.

Design & Optimisation

31 Success With Redesign

07 4 Key Attributes Of Customer Engagement

22 The New Formula One Racer

Engaged customers are usually better advocates of the brand...

Technology Trend 08 On The Verge Of Transformation

Quality & Innovation 23 Optimising Upholstery Manufacturing

Service providers have to contribute to digital business revolution...

Export & Import 12 Creating A Level Ground

16 Transfer Pricing Transfer pricing has been a constraint and too complex for SMEs...

Application of good software in a woodworking industry...

Lennox International has doubled its distribution footprint with a strategy...

Strategy & Innovation 32 Valuable Chemicals From Co2

ThyssenKrupp AG is initiating a crosssector technology transfer project...

Challenges & Solutions

34 “CHP projects are largely captive projects in different segments…”

24 Breaking The Path

There is an urgent need to impose strict anti-dumping laws...

Blog

Infiniti Red Bull Racing is relying on Siemens software once again...

IBM’s new exchange, will eliminate several inefficiencies...

26 “Some of the Indian plants have become global benchmarks in energy consumption…”

Indian cement industry today...

Combined Heat and Power is one of the most effective forms of energy production, where almost 90 per cent of the fuel energy is utilised…

Strategy & Design 38 Economic Contribution of Running Plants Employment creation through reopening sandby plants...

Fuel & Oil

Supply Chain

17 Clean And Green Fuel

28 Accuracy To Forecasting

Financial Management

40 Highest Performing CFOs

PLL’s project is poised to bring an industrial revolution in Kerala...

march 2014 | industry 2.0

Fujitsu’s Model Predictive Control (MPC) technology...

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What do they expect from the team?

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industry update DICV lays foundation stone for its new bus plant

aimler India Commercial Vehicles (DICV) recently celebrated the foundation stone laying ceremony of its new Bus plant – at the DICV’s manufacturing facility located in Oragadam, near Chennai. Dr. Wolfgang Bernhard, Daimler AG Board Member, responsible for Daimler Trucks & Buses, laid the foundation stone for the new bus plant in the presence of Hartmut Schick, Head of Daimler Buses & CEO EvoBus; Marc Llistosella, Managing Director & CEO, DICV; Markus Villinger, Head, Daimler Buses, India – and some dealers, suppliers and other DICV personnel. Dr. Bernhard said, “On the basis of our strong truck business, we are now pressing ahead on the Indian bus market. For that purpose, we are consistently using existing suppliers, our production site and our sales network in India.” The new bus manufacturing plant, spread across an area of 27.91 acres, will be constructed within the existing premises of DICV. The bus plant will manufacture and assemble buses

Manufacturing in 3Q of 2013-14

ccording to the latest estimates available on the Index of Industrial Production (IIP), the index of mining, manufacturing and electricity, registered growth rates of (-) 0.3 per cent, (-) 2.0 per cent and 5.0 per cent, respectively in Q3 of 2013-14, as compared to the growth rates of (-) 3.0 per cent, 2.5 per cent and 4.4 per cent in these sectors in Q3 of 2012-13. In the mining sector, production of coal and crude oil registered growth rates of (-) 0.7 per cent and 0.6 per cent respectively in Q3 of 2013-14, as against the growth rates of 3.0 per cent and 0.4 per cent in Q3 of 2012-13.

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(LtoR) M. Llistosella, MD & CEO, DICV; Dr. W. Bernhard, Member of the Board of Management of Daimler AG; H. Schick, Head - Daimler Buses & CEO – EvoBus; and M. Villinger, Head - Daimler Buses India

under the Mercedes-Benz and BharatBenz brands, and will be completed by 2nd Quarter 2015. The DICV plant in Oragadam will thus be the only Daimler Truck plant worldwide, that manufactures three brands of Trucks and Buses, as well as engines under one roof. Daimler India

buses will be offered in 9t, 16t and above 16t categories in both front and rear engine designs. An investment of INR 425 Cr has been earmarked for the bus project in India. It has partnered with Wrightbus for its front-engined buses. Bus body building facility will be part of the new bus plant.

CG to supply power equipment to Ukraine

G, has received an order to provide two 40 MVA power transformers and one 110 kV Gas Insulated Switchgear (GIS) of 7 bays, to Ukrainian electricity utility Odessa Oblenergo for its Marazlievskaya substation. The company supplies electricity to the city of Odessa in Ukraine and other surrounding areas. The current order is valued at €2 million and installation and commissioning of the equipment is expected to be completed by end-2014. CG will undertake the supervision of erection and commissioning of the transformers and switchgear. CG was selected as the ideal partner for this project on account of its technical acumen to fully understand and

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comply with Odessa Oblenergo’s specific requirements for the substation, well ahead in the process. The equipment supplied will optimise efficiency, reliability and safety at the substation. This win will help the company gain a foothold in the rapidly growing Eastern European market. Speaking on the order win, Avantha Group Company CG’s CEO and Managing Director, Laurent Demortier, said, “The latest order is yet another move by CG to expand its footprint in the growing market of Eastern Europe.” “We look forward to strengthening our relationship with Odessa Oblenergo and establishing ourselves as a partner of choice to supply high-quality, durable power equipment,” he added.

- technology management for decision-makers | march 2014

industry update BASF opens global R&D centre in Mumbai

ASF has inaugurated a new global Research and Development (R&D) Centre at its Thane site in Navi Mumbai, India, focusing on organic synthesis, advanced process and formulation research, discovery chemistry for modern agricultural solutions, and molecular modelling. With an initial investment of €2 million, this new facility has been set up by BASF under its group company, BASF Chemicals India Pvt Ltd. The new R&D facilities will accommodate more than 60 scientists in the first phase. “With our R&D Center in Navi Mumbai, we have taken a significant step closer to BASF’s globalisation goal in R&D. By 2020, we plan to conduct

FW bags FEED contracts from S-OIL Corp

ubsidiaries of the Global Engineering and Construction Group of Foster Wheeler (FW) have been awarded contracts by S-OIL Corporation – for the Front-End Engineering Design (FEED) for a residue upgrading project at S-OIL’s Onsan refinery in Ulsan, South Korea. The upgrade of the refinery includes the addition of a residue hydrodesulphurisation unit, a residue fluid catalytic cracker and multiple downstream upgrading units to enable the refinery to produce higher value products and, in particular, maximise production of polymergrade propylene. In addition to executing the FEED, Foster Wheeler will prepare the tender for the Engineering, Procurement and Construction (EPC) phase, procure long-lead items, evaluate the EPC bids, and prepare a cost estimate to support S-OIL’s final investment decision.

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research presence in Mumbai, we will be able to work directly with a wide range of scientific talents in India – and take steps towards our strategic goal to innovate from Asia Pacific, for Asia Pacific and the world. We are also currently evaluating further investment Headquarters of the BASF Group – Ludwigshafen, Germany options into R&D in Asia Pacific, includ50 per cent of our research activities ing India,” said Dr. Harald Lauke, outside of Europe – one quarter in President, Biological & Effect Systems Asia Pacific. By establishing a global Research at BASF.

Siemens’ NX software in private cloud environment

iemens’ NX software, the company’s flagship solution for integrated 3D computer-aided design, manufacturing and engineering analysis (CAD/CAM/CAE), is now available in a cost-effective private cloud environment. The company worked closely with NVIDIA Corporation to certify the deployment of NX in the private cloud using Virtual Desktop Infrastructure (VDI) with NVIDIA GRID vGPU (Virtual Graphics Processing Unit) technology. This technology enables companies to use central servers with remote access, to host software on a virtual desktop. VDI certification eliminates the need to install NX on a local client, which helps reduce IT support costs. The new deployment option enhances flexibility and further expands the wide variety of platform choices available to NX customers. As a result, Siemens and NVIDIA were able to help one of their joint customers, Turkish Aerospace Industries (TAI) successfully deploy NX in a private cloud. “By deploying Siemens’ NX in our private cloud using the NVIDIA

- technology management for decision-makers

graphics environment, we can optimise resources and eliminate strains on IT. Virtual desktop infrastructure and dynamic allocation of graphics processing power for designers and engineers working with NX is a necessity for supporting our vision of moving 400 engineers to virtualised desktops and applications. We are constantly expanding, and our engineers require varying amounts of graphics power each day from project to project. Simply buying and maintaining more workstations and more graphics cards is costly and unmanageable. NX in our private cloud enables us to avoid these costs and to simplify the complexity of management while increasing our user density,” said Serdar Kaya, IT System Engineer, TAI. VDI solns offer the ability to support server based accelerated 3D graphics plus remote display and user interaction. NVIDIA offers server-based Gcards, and major computer OEMs have developed servers to support them. So, Siemens’ NX can run within a company’s corporate data centre.

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Indsur Global secures major contract

ndsur Global, a member of Mumbai based Indsur Group and an exporter of power infrastructure castings, has bagged an order of Rs 30 crores for supply of castings (metal fittings) from Bharat Heavy Electricals Limited (BHEL) against competitive bidding. The castings will be supplied to BHEL’s Bengaluru and Sultanpur plant. It is pertinent to note that the group had

recently undertaken to modernise and expand its capacity to manufacture various types of important critical power infrastructure castings at its Gujarat plant. The first phase of expansion was commissioned for making power infrastructure castings recently. The expanded capacity is almost 12500 MT/annum that would further get raised to 25000 MT by March 2015.

ZF constructs new plant in Pune

F Friedrichshafen AG has constructed a new plant in Pune. The location, which is already under construction, will unite the Car Powertrain and Commercial Vehicle Technology business units as well as ZF Services in India under a single roof. Also, it will be home to the headquarters of the

engineering and administration of ZF India Pvt. Ltd. A few weeks ago, the construction of the new building, on a plot size of 85,000 sqm (21 acres), started in the Chakan industrial park, roughly 20 kms north of Pune. Its completion is scheduled for the turn of the year.

BASF’s R&D drive with Asian universities

ASF has established the research initiative “Network for Advanced Materials Open Research” (NAO) together with seven leading universities and research institutes in China, Japan and South Korea. There the scientists aim to cooperate in developing new materials for a wide range of applications. The initial focus is on products for the automotive, construction, detergent and cleaners industries as well as the water and wind energy industries. “The initiative is a further important step in BASF’s strategy to expand global research activities,” said Dr. Christian Fischer, President Advanced Materials and Systems Research, BASF.

Toshiba with others wins new order for ITS package

ITS project signing ceremony

oshiba Corporation, Hitachi and ITOCHU Corporation have together signed a contract to supply the Vietnam Expressway Corporation (VEC) with an Intelligent Transport Systems (ITS) package, which includes Electronic Toll Collection (ETC), traffic control and equipment monitoring sys-

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tems. The order has an estimated value of Rs 240 crore, and is the first for an integrated ITS package that Japanese companies have received from overseas. The project will be supported by Japanese government loan assistance. Commercial operation is planned to start in the first half of 2017.

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The ITS package will be installed on the 55-kilometer Ho Chi Minh and Dau Giay section of Vietnam’s North-South Expressway. Toshiba will provide ITS equipment, Hitachi is responsible for construction and ITOCHU for related business affairs. Rising traffic congestion is a serious side effect of the continuing economic development of southern Vietnam, including Ho Chi Minh City, and projections show road use and congestion in the region continuing to grow. Installation of the Intelligent Transport Systems package on the NorthSouth Expressway’s Ho Chi Minh and Dau Giay section, one of the most badly affected areas, will help cut traffic jams and improve logistics efficiency. VEC, the project owner, evaluated the technical competence and installation record of companies that tendered for the order, and selected the Japanese companies on the basis of their competitive bid.

- technology management for decision-makers | march 2014

industry update Maersk links far-east region to India

aersk (India & Sri Lanka cluster) has commenced operations of its new Far-East Alliance linking far-east region to Indian subcontinent. Earlier the company announced a new cooperation with three existing far-east to Indian subcontinent services, starting February 2014. Franck Dedenis, Managing Director for Maersk (India and Sri Lanka), said, “India is an important market for us and our aim is to grow profitably. With the Far-East alliance, we are making sure that Maersk’s service network and capacity is optimised. This multi carrier co-operation will provide more frequent sailing between Asia’s major trading hubs thus bringing tremendous

value to our customers.” In a slot sharing agreement, 18 vessels with a total capacity of about 17,500 Twenty-Foot Equivalent (TEU) will be deployed on the three far-east Indian subcontinent services. The multi-carrier cooperation will provide more frequent sailings between Asia’s major trading hubs and, at the same time, eliminate unnecessary service duplications between the carriers. The enhanced network will enable the carriers to offer three weekly sailings covering China, Korea, Malaysia, Singapore, India, Pakistan and Sri Lanka compared to one weekly sailing currently offered independently by each liner.

DISA conducts symposium on clean air solutions

ISA India recently organised a unique symposium on ‘Clean Air Solutions for Pharmaceutical and Process Industries.’ Over 70 delegates from 43 companies attended the symposium. The session was conducted by Joydip Ghosh, Vice President - Filters Business and Hosakote Operations, DISA India.

Also, Mudit Bansal (DES sales, North) welcomed all the delegates, Rajasekhar Darisi took a technical session on Air Pollution Control Technology and Solutions with emphasis on the needs of the Pharma and Process Industries, and Roshan Kumar talked about DISA’s various product and solution offerings.

Thyssen Krupp Outokumpu deal

he transfer of VDM and AST from Outokumpu to Thyssen Krupp is now officially completed. The transaction includes the transfer of Thyssen Krupp’s subordinated financial receivable created as part of the Inoxum transaction to Outokumpu. In exchange, ThyssenKrupp is taking over the companies VDM, AST, and a number of European service centres. As part of the transaction, Thyssen Krupp is also fully divesting its 29.9 per cent shareholding in Outokumpu and terminating all further financial links with Outokumpu. With this transaction Thyssen Krupp is averting further value adjustments of its financial receivable and avoiding potential additional financial impacts from the previously associated company Outokumpu. The swap enables Outokumpu to fulfill the EU Com’s conditions within the required period in a way that preserves asset value.European merger control authority had only approved the original sale of Thyssen Krupp’s SS business Inoxum to Outokumpu – subject to the divestment of AST’s SS plant in Italy.

Airbus, China partnership marching forward

irbus and China have laid the foundation for taking their cooperation into the future as relevant agreements have been signed in Paris by Fabrice Brégier, Airbus President and CEO, and the Chinese parties, witnessed by the French President Francois Hollande and visiting Chinese President Xi Jinping. In parallel, China Aviation Supplies Holding Company (CAS) and Airbus have also signed a General Terms Agreement (GTA) for the purchase of a total of 70 Airbus aircraft. According to the agreements, Airbus will strengthen its mutually benefi-

march 2014 | industry 2.0

Tianjin Final Assembly Line is Airbus’ third singleaisle production site worldwide.

cial cooperation with Chinese aviation industry in various fields, which include promoting Tianjin as an Asian Centre for Airbus and upgrading

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industrial cooperation in both scale and level. Airbus and its Chinese partners Tianjin Free Trade Zone and Aviation Industry Corporation of China (AVIC), have agreed to extend the successful Joint Venture to assemble A320 Family aircraft in China (FALC project) for an additional 10 years. The ‘phase II’ will cover the period from 2016 to 2025, expand deliveries to the whole Asian region and include final assembly of the A320neo Family from 2017 onwards. During Phase II, capabilities of the Tianjin Final Assembly Line will be extended.

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promotion & development

4 KEY ATTRIBUTES OF Customer Engagement

Engaged customers are usually better advocates of the brand and are more loyal and more profitable. Gartner, through a research, has identified four underlying attributes that can help Customer Relationship Management (CRM) leaders improve their level of customer engagement. Increase Active Customer Engagement Through Social, Mobile and Traditional Channel Alignment

Target Rational Customer Engagement Through Greater Customer Participation and Knowledge Availability

Being active requires activity, yet many organisations have been attempting to reduce the activity required to engage with customers to lower their costs. An actively engaged customer is more willing to participate with the organisation through multiple different channels, ranging from online self-service tools or a mobile application to community participation or user group involvement. They are more willing to provide feedback when asked, make best use of the products or services on offer, and make suggestions on how to improve them. From the organisation's perspective, active engagement requires changes to people, process and technology.

Rational customer engagement is the involvement of a customer in accumulating lessons on a product or service and conducting additional fact-finding and research. The customer will decide what level of further relationship investment is warranted based on this research or general knowledge of the product or service and will then develop an appropriate depth and understanding of the product or service and the vendor. Their level of engagement will thus be linked to rational elements associated with the product or service such as value, quality, detail and innovation. This elevated level of knowledge may then manifest itself in additional activities.

Build Emotional Customer Engagement Through Transparency and Trust

Gain Ethical Customer Engagement Through Demonstrated Commitment To Fairness With Employees, Partners, Customers and Community

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Emotional engagement is built up from multiple factors and is often a more powerful influence than rational/physical elements in how a customer engages with an organisation. The emotions associated with owning a product or using a service and with the interactions customers have with the organisation are of key importance. However, recognising an emotion and measuring and modifying an emotion in a systematic manner are extremely difficult.

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Ethical engagement explores the deepest values and meanings by which people live. These aspects of life and human experience go beyond a purely materialistic view of the world. The organisation has a published framework that discusses how it views its responsibilities to employees, partners, customers, suppliers, community and the world.

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- technology management for decision-makers | march 2014

technology trend

On The

Verge Of

Transformation Technology and service providers need to determine and demonstrate how their offerings can underpin, support, enable and accelerate the digital business revolution.

ssisting clients in digital business transformation will be a driving factor in the majority of IT services opportunities, says Gartner. Consumerisation and its impact on buyer expectations for consumer quality service experiences will reshape provider evaluation and selection criteria. Consequently, finding and capitalising on unexpected sources of growth is the strategic issue facing all service providers. Gartner sees the Nexus of Forces forming the very fibre that defines next-generation services. Services of tomorrow will lean on scaled and industrialised delivery models that provide clients access to services that are consumed to drive specific business outcomes. Torrential changes will reshape the service provider landscape over the next several years as organisations struggle to adjust to a digital future, according to Gartner. A recent global survey of CIOs by Gartner's Executive Programs found that 70 per cent of CIOs will change their technology and sourcing relationships in the next two to three years for a variety of reasons. "The picture is clear for service providers as clients are struggling to keep up with change. They are strongly considering changing the providers they work with as part of responding to this change. Market share will shift to service providers able to help clients respond to the business and IT opportunities and challenges that are overwhelming more than half of organizations today. Service providers need to convert this

march 2014 | industry 2.0

- technology management for decision-makers

picture into an opportunity rather than a threat," said Eric Rocco, Managing Vice President, Gartner. "Digital business is an unstoppable and irresistible catalyst for change â&#x20AC;&#x201C; change that will affect the fundamental foundations and baseline assumptions of every business.The digital business revolution is underpinned and enabled by the macro technology forces of cloud, social, analytics, mobility and the Internet of Things. Not every business fundamental will need to change to the same degree, nor will every technology driver have a role to play in every business scenario; however, businesses that decide to 'wait and see' are likely to become irrelevant," added Rocco. Digital business requires providers to totally change the way they do things while helping their customers do the same thing at the same time. This presents challenges with equally significant opportunities and risks. Traditional buyers will have a role to play but we will also see the emergence of a new breed of buyers and providers that must address their wants and desires, if they are to earn the right to help in the transition. "IT spending buying centers across industries have steadily shifted away from the central IT function to business buying centres. Service providers of the future will articulate value in business terms such as key process outcomes and impact to Key Performance Indicators (KPIs). Doing so requires deep vertical industry knowledge, and new go-to-market models," opined Rocco. The IT services market will not grow uniformly. The

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overall market is forecast to grow 4.6 per cent in 2014. Hardware support is among the lowergrowth opportunities in the IT services market. Through proactive and multivendor support models, these services will increasingly collide with outsourcing services. Cloud-based Infrastructure as a Service (IaaS) and Business Process as a Service (BPaaS) are the two fastest-growing segments, expanding 44.9 and 12.4 per cent, respectively, in 2014. Agility, not cost, will be the primary reason that many organisations adopt cloud computing. Cloud-based services are cannibalising more traditional models. This is most apparent in infrastructure outsourcing where Infrastructure Utility Services (IUS), managed services based on IaaS technology, and cloud IaaS growth include workloads moving from more traditional data center managed services to IUS and IaaS, respectively. Hybrid IT environments will dominate client IT architectures over the next several years. This underscores the importance of skills in the old-world legacy environments, as well as the new-world as-a-service operating models. "The impacts of the Nexus of Forces and digital business transformation are reshaping business

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processes and supporting IT strategies. Most buyers cannot simply adopt new services without making changes to existing processes and applications. Buyers want speed and agility. They recognise an innovation crisis exists internally, but few service providers are well-positioned to capture the opportunity," informed Rocco. Service industrialisation of the near future will be a combination of mature processes, automation, analytics and personalisation. Services will continue to productise and require greater service line management disciplines. Industrialisation and productisation must create enhanced value beyond cost reduction, or neither strategy will create a competitive advantage. "The strategic challenge facing service providers is to better understand client value drivers, and to more effectively articulate their own value propositions. Our key recommendations, regardless of business model or service segments of focus, for IT services providers are to target new buying centres through the audacity of visionary thinking; articulate value in terms of business outcomes and KPI attainment; and to industrialise and productise, without losing sight of service value," conveyed Rocco.

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- technology management for decision-makers | march 2014

market scenario

Employment Generation Gradual revival of manufacturing sector together with improved economic performance may help generate about 3.2 million additional jobs during the 12th Plan period.

march 2014 | industry 2.0

share of 14.5 per cent in the total jobs generated by registered manufacturing sector across India closely followed by Maharashtra with 14 per cent share, while Gujarat ranked third with just over 10 per cent share in this regard,” said D. S. Rawat, Secretary Gen., ASSOCHAM. “Uttarakhand has recorded highest growth rate in terms of employment generation in registered manufacturing sector during the 11th Plan. Bihar (71.8 per cent), Himachal Pradesh (70 per cent), Odisha (54 per cent) and Maharashtra (38.8 per cent) are other states that recorded high growth rate in this regard,” said Rawat. Chhattisgarh (19 per cent), Uttar Pradesh (15 per cent), Haryana (14 per cent), Kerala (10.5 per cent) and Punjab (nine per cent) are certain states that recorded slowest growth rate in employment generated by registered manufacturing sector, noted the ASSOCHAM analysis. Basic metals, other non-metallic mineral products, wearing

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apparel, motor vehicles, trailers and semi-trailers, machinery and equipment, fabricated metal products, except machinery and equipment, rubber and plastics products have registered more than 20 per cent growth rate in employment generation. While food products’ sector has registered a growth rate of over eight per cent during the 11th Plan. Chemicals and chemical products’ sector has recorded massive fall of 24.5 per cent in employment generation during 2007-08 and 2011-12, while the textile sector has witnessed marginal decline (0.1 per cent). ASSOCHAM calls for forming an empowered project clearance authority to facilitate timely clearance of projects, and a new mechanism for ensuring better centre-state co-ordination in fast tracking clearances. There is also an urgent need to empower the rural youth with necessary skills to make them employable, and create an ecosystem enabling the enterprises to improve competitiveness.

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espite deceleration in its performance, India’s registered manufacturing sector has clocked a healthy 28.5 per cent growth in employment generation during 11th Five Year Plan (2007-12), according to an analysis carried out by ASSOCHAM based on the Annual Survey of Industries (ASI). ASSOCHAM informs, “An additional 2.9 million jobs were generated in the registered manufacturing sector during 2007-08 to 2011-12 i.e., from over 10.45 million jobs in 2007-08 to 13.43 million as of 2011-12.” It has also added that – gradual revival of manufacturing sector together with improved economic performance may help generate about 3.2 million additional jobs during the 12th Plan period. Food products, textiles, basic metals, other non-metallic mineral products, wearing apparel, motor vehicles, trailers and semi-trailers, machinery and equipment, chemicals and chemical products, fabricated metal products except machinery equipment, rubber and plastic products are amid top sectors generating employment – with thereby accounting for over 70 per cent of the total jobs. “Tamil Nadu has topped with highest

market scenario

Transmuting Revenue Streams The continued decline of global defence spending into 2014 will likely force new revenue streams for the Aerospace and Defence (A&D) industry that may include innovations in intelligence, precision strike technologies and cyber security.

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he commercial aerospace sector is expected to again set records for production of aircraft, due to the accelerated replacement cycle of obsolete aircraft with next generation fuel-efficient aircraft, and growing passenger travel demand, especially in the Middle East and the Asia Pacific regions. The decline in global defence spending will challenge the industry to find new sources of revenue. These may include innovations in next generation intelligence surveillance, reconnaissance and precision strike technologies, cyber-security, opportunities in adjacent markets, potential new commercial ventures, and also acquisitions of synergistic businesses. On the other hand, the significant demand for new commercial aircraft will pressure supplier networks to continuously improve its engineering design, manufacturing and supply chain management capabilities, all the while being able to cost effectively meet tougher price concession requirements from customers. On the other side, India has growing demand of aerospace and defence equipment for the industry. “Considering the Indian Government’s impetus on indigenisation of defence product manufacturing in India, the private Indian industry shall be needed to collaborate with global firms to compete for the contracts. This is likely to give an opportunity to the global industry to apply their innovations and technology at a bigger scale,” says Nidhi Goyal, Director, Deloitte Touche Tohmatsu (DTTL) India. “It is anticipated that global revenues for the defence sector will track to similar levels as in the past two years, particularly in the U.S. and Europe. As we celebrate the 110th anniversary of the Wright Brothers’ first powered flight, we are reminded that the industry is still young, yet it has contributed much, with technology innovation at the heart of advancements in the industry. 2014

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and the rest of the decade promise to deliver even more exciting technology innovations – that will focus on the way consumers travel by commercial aircraft, communicate via satellites, shop over the Internet, conduct armed conflict when necessary, and assist with humanitarian missions to far reaches of the globe,” says Tom Captain, DTTL Global Aerospace and Defense Sector Leader.

industry 2.0

- technology management for decision-makers | march 2014

export & import

Creating

A Level Ground There is an urgent need to impose strict anti-dumping laws to check rising cheap imports of bicycles and components from China, which has been dumping its products into India.

march 2014 | industry 2.0

- technology management for decision-makers

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ising imports of bicycles and their components from China to India at almost 25 per cent cost-comparative advantage, owing to Free Trade Agreements (FTAs) together with South Asia Free Trade Agreement (SAFTA), are posing a serious threat to domestic bicycle industry – producing over 41,000 bicycles per day. “There is a need to increase the import duty on bicycles and its parts from prevailing 20 to 30 per cent – as by doing this the prices of bicycles made both in India and China would equate in the global market,” noted a just-concluded study on ‘Future of Indian Bicycle Industry,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “There is an urgent need to impose strict anti-dumping laws to check rising cheap imports of bicycles and components from China, which has been dumping its products into India,” said D. S. Rawat, secretary general of ASSOCHAM, while releasing the findings of the study. “The imports of bicycles and their components from China to India have risen by about 41 per cent during the course of past five years, as such it is imperative for India to review the FTAs and SAFTA to safeguard the interests of the domestic bicycle industry,” said Rawat. India’s exports of bicycle to other countries have grown at a Compounded Annual Growth Rate (CAGR) of about 17 per cent, while the imports grew at over double the rate of about 35 per cent mainly on account of uncompetitive pricing. China has ranked on top amid countries exporting bicycles and their components into India with imports worth about $8,900 in 2007

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to $35,000 in 2012, noted the ASSOCHAM study. “Soaring fuel prices, rising rural incomes, growing health consciousness together with free distribution of bicycles to students by various state governments in order to promote education and keep a check on dropout rates will push the growth of bicycle industry in India and the industry is expected to generate about one million jobs during the course of next couple of years or so,” highlighted the study. However, input cost inflation like rising steel prices (largely due to rising exports of iron ore pellets), poor condition of roads – especially in rural areas

urged the government of Punjab to reduce the VAT on bicycle components, which is currently hovering 5.5 per cent. “There is also the need to release VAT refund of bicycle manufacturers lying with the Excise and Taxation Department of Punjab government so that the money can be utilised by the manufacturers to push production,” he added In its study, ASSOCHAM has also suggested the Punjab government for keeping stable power tariff, as the same is being raised quite frequently – thereby adding to the cost of production of bicycles. Bicycle manufacturers in Ludhiana, the city accounting

The imports of bicycles and their components from China to India have risen by about 41 per cent during the course of past five years. are other significant challenges faced by the industry, it added. India is world’s second largest bicycle producer after China accounting for about 10 per cent of global bicycle production. With an estimated market size worth $1.5 billion, the Indian bicycle industry produces about 15 mn finished bicycles annually. ASSOCHAM has batted for reduction in excise duty imposed on India-made bicycles to support the industry – and reduce the excess burden. On behalf of the bicycle manufacturers, the apex chamber has

for the lion’s share of about 90 per cent of bicycle production in India have urged the govt to reduce both the interest rates on loans – which at 11.75 per cent for Small and Medium Enterprises (SMEs) is too high to bear. Besides, there is also the need to reduce the freight charged by the government on raw materials being imported from other states, which further escalates the production costs of bicycles, further noted the ASSOCHAM study – while highlighting the various problems being faced by the sector.

industry 2.0

- technology management for decision-makers | march 2014

techwatch Research Initiative On Mechanical Testing here might be two reasons for a failure of a component: firstly, a failure (so-called breakage) will occur, if a component is definitely overloaded. Secondly, if a component is continuously deformed over a long period of time, the damage will slowly progress, even at low loads; this is the case of material fatigue. The causes are as varied as the materials fabrication and operation are. The challenge, however, is to predict how long a component will hold up. In order to meet this challenge the Fraunhofer IWS Dresden is expanding its research activities in the fields of materials characterisation and mechanical testing, jn the newly-established high frequency fatigue testing laboratory. “The rising industrial demands, with respect to a more efficient utilisation of the material’s strength at simultaneously extended duration cycles, result in cycle loads beyond the classical endurance limit“, emphasised Prof. Dr. Martina Zimmermann. “Even slightest modifications of material compositions or production sequences have an immense influence on the fatigue strength of a safety-relevant component. These influences are to be identified as early as possible in the course of the product development. In close cooperation with our industrial partners, we are now able to face this challenge even more intensely,” she added. In order to determine the fatigue

Image Credit: Fraunhofer IWS Dresden / Frank Höhler

Set-up of the high frequency fatigue test stand

strength, a component is usually exposed to alternating mechanical loads and strains. In the past, only specimens which are able to endure 107 cycles without failure or crack initiation were considered to be failsafe. 10 to 50 specimens must be tested to reliably predict the fatigue strength of a real component. Thus, statistically verified material parameters can only be achieved by cost and time consuming test procedures. The installation of the new IWS laboratory with most up to date high frequency fatigue strength testing equipment offers completely new prospects. The new testing stand enables test frequencies of approximately

2000 Hz and gives scientists a tool to experimentally analyse the influence of fatigue strength in a quicker and more efficient manner. This applies both to the classical fatigue strength range and, beyond that, to the so-called Very High Cycle Fatigue (VHCF) range. The demands comprise a comprehensive analysis of the damage behaviour, which is considered an indispensable unity of material, production and construction. Mechanical testing, direct and indirect in-situ damage detection, and highly-resolved material analysis are essential elements of the scientific activities in the field of material fatigue research at the Fraunhofer IWS Dresden.

Greener Aerogel Technology Holds Potential

leaning up oil spills and metal contaminates in a low-impact, sustainable and inexpensive manner remains a challenge for companies and governments globally. But a group of researchers at the University of Wisconsin-Madison is examining alternative materials that can be modified to absorb oil and chemicals without absorbing water. If further developed, the technology may offer a cheaper and greener method to

march 2014 | industry 2.0

absorb oil and heavy metals from water and other surfaces. Shaoqin Sarah Gong, a Researcher at the Wisconsin Institute for Discovery (WID) and Associate Professor of Biomedical Engineering; Graduate Student Qifeng Zheng; and Zhiyong Cai, a Project Leader at the USDA Forest Products Laboratory in Madison, have recently created and patented the new aerogel technology. Aerogels, which are highly porous materials and the lightest solids in

- technology management for decision-makers

existence, are already used in a variety of applications, ranging from insulation and aerospace materials to thickening agents in paints. The aerogel prepared in Gong's lab is made of cellulose nanofibrils (sustainable wood-based materials) and an environmentally friendly polymer. Furthermore, these cellulose-based aerogels are made using an environmentally friendly freeze-drying process without the use of organic solvents.

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Optically Switchable Synthetic Ferrimagnets

hen you store a file on your laptop, the computer creates a code consisting of 0s and 1s. These are actually tiny magnetic poles (spins) that can point in 1 of 2 directions: the ‘zero’ state or the ‘one’ state. Switching these spins using a magnetic field is a relatively slow, energy-intensive process. An alternative is to switch them using light, which was first achieved by Radboud researchers six years ago. Optical switching is only possible in special magnets, called ferrimagnets. However, these magnets are made of expensive rare earth metals, which are also difficult to produce at the nano-scale. Now, they have shown for the first time that it is also possible to switch synthetic ferrimagnets optically. Ferrimagnets have the unusual property that the spins are not all of the same magnitude. “They are similar

to anti-ferromagnets, in which the spins are found in pairs with opposite directions. However, because the magnetic poles have different magnitudes, ferrimagnets have a net magnetic moment,” explains Professor Rasing, Physicist at Radboud University Nijmegen and FOM Workgroup Leader, who came up with the new synthetic material. This can be simulated by anti-ferromagnetically coupling thin layers of iron with a spacer layer. “The iron is ferromagnetic – all the spins have the same magnitude and direction. It is therefore possible to create a net magnetic moment by combining two layers of different thicknesses and opposing magnetisation directions, for example. Coupling the spins works in a very similar manner, in the same twostep process that we previously developed for the normal ferrimagnets.”

Squeezing Light

ngineers (Prof.) Ajay Nahata and Barun Gupta, from University of Utah have used a $60 inkjet printer with silver and carbon ink cartridges to create a new, widely applicable way to make microscopic structures that use light in metals to carry information. This new technique could be used to rapidly fabricate superfast components in electronic devices. A recently discovered technology called ‘plasmonics’ marries the best aspects of optical and electronic data transfer. “Very little well-developed technology exists to create terahertz plasmonic devices, which have the potential to make wireless devices such as Bluetooth – which operates at 2.4 gigahertz – 1,000 times faster than they are today,” says Ajay Nahata.

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blog

Transfer Pricing

Need and Hassles

Transfer pricing has been a constraint and too complex a regulation for unlisted companies and SMEs. By Jaspal Singh Kahlon

ast 12 months, by most of the Statutory Auditors and Finance heads in India were spent in comprehending the ‘transfer pricing’ regulations. With the extension of International Transfer pricing to Domestic transactions in Finance Act 2012, a significant amount of time has been spent by companies including SMEs to adopt a logical ‘arm’s length pricing’ method. The cost of additional documentation, monitoring and seeking opinions from ‘transfer pricing’ experts has increased manifold both in terms of money and time. The core principle of ‘transfer pricing’ is having ‘arm’s length pricing’ premised on the rationale that the business is transacted in the most transparent manner with no undue favour to the other entity. However, this has become a constraint and too complex a regulation for unlisted companies and SMEs (Small

and Medium Enterprises) – for whom no comparable firm data exists. A wide variance exists in pricing and margins at which some of the large and established organisations operate compared to SMEs. And hence the ‘arm’s length pricing’ rationale at times fails to justify they continue running their businesses. It was too early to have such regulations in India – when we were in midst of an extended recession and still carrying a ‘Developing Nation’ tag. Further, why do we need ‘transfer pricing’ regulations? Some reasons could be: • Family-run businesses dominate the majority of businesses across the world. They have structured their businesses in multiple, overlapping holding structure of companies and subsidiaries, related companies etc. The ease of transfer of profit from one entity to another within the business group was easy

in absence of ‘transfer pricing’ regulations. • Special economic and regional exemptions and differential tax structures created a complicated set of norms that could be exploited by the practitioners (the businesses in this case) to their advantage. ‘Transfer pricing’ norms address this issue with their very nature of being having an element of art or logic in arriving at an ‘arm’s length’ price. • Even century-old existence of capitalist economies has failed to answer the need for governments to have a source of income. Hence, the taxation structure continues to get complex with each passing decade, ‘transfer pricing’ being the latest innovation. The author is a Finance Professional, consulting companies on mastering execution skills. He may be contacted through e-mail: jaspalkahlon@gmail.com.

Industry 2.0, India’s only magazine for the decision makers and influencers across the manufacturing and supply chain industries, invites your valuable inputs and opinions.

To get real time, in depth focus on the Indian Manufacturing Industry, please log on to: www.industry20.com

For editorial inputs and enquiries:

P.K. Chatterjee

Cell: +91 9320912419 E-mail: pk.chatterjee@9dot9.in

fuel & oil

Clean and Green Fuel

Petronet LNG Limited’s (PLL’s) Kochi LNG project is poised to bring an industrial revolution in the State of Kerala by helping various existing and upcoming industrial units. By L. C. Ponnumon

Photo Credit: en.wikipedia.org

etronet LNG Limited’s project at Kochi is one of the largest investments in Kerala in the recent years. Built at a cost of Rs.4,500 crores, it is one of the finest facilities in the world and has been constructed by contractors from Japan, Taiwan and various other Countries. The project contains facilities to import, store and regasify 5 million tonnes per annum equivalent of Liquefied Natural Gas (LNG). It has been constructed to provide a clean and green fuel to the industries and transport sectors. LNG is clean and safe fuel due to the molecular structure of LNG and results in lower particulate emissions than diesel and other fossil fuels. It also provides less greenhouse gas and toxic emissions than low-sulphur diesel and requires a much higher ignition temperature than diesel etc. Petronet LNG Limited’s (PLL’s) Kochi LNG project is poised to bring an industrial revolution in the State of Kerala by helping various existing and upcoming industrial units. It will also help transform the household and the transport sectors once they switch to natural gas usage. The LNG terminal would be an important and strategic source for providing uninterrupted, clean and affordable fuel alternate for the state. The project has started supplying gas to the refinery at Kochi and to the Fertilisers & Chemicals Travancore Ltd. (FACT) besides a number of other smaller consumers. Ernakulam district has been presently included in the fourth round of bidding for City Gas Distribution (CGD) project. Many other districts are expected to follow. LNG is going to play an important role to meet this growing demand of CGD sectors in the State. More than 30% of the electricity produced in the Kerala comes from thermal power plants, of

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which more than 80% uses liquid fuel. This dependence on liquid fuels makes the cost of generation one of the highest in the country. Substituting these fossils fuels with the natural gas / LNG would be an economical and cleaner option for the state. GAIL (India) Ltd., one of the promoting companies of Petronet LNG Limited is laying a network of pipelines across the state of Kerala. Plans are underway to connect various clusters of industries and also some of the large power plants like NTPC Kayamkulam. Petronet LNG Limited currently imports 7.50 MMTPA of LNG from Qatar under a 25 year longterm agreement. It also imports LNG on a spot and short-term basis from various suppliers all across the world, ranging from Nigeria, Australia, Trinidad & Tobago, Egypt and many other places. The company has a 10 Million Metric Tonnes Per Annum (MMTPA) plant in the State of Gujarat. It has recently embarked upon the process of further expanding the capacity of its Dahej plant to 15 MMTPA. It is also in the process of setting up a 5 MMTPA facility at Gangavaram in the State of Andhra Pradesh. With these three plants PLL hopes to have a combined LNG capacity of 25 MMTPA by 2017-18, making it one of the largest LNG terminals in South East Asia. In June 2012, a team of U.S. Environmental Protection Agency (EPA) visited Petronet’s Dahej LNG import and regasification terminal and conducted a two-day methane leak detection and measurement study. EPA has issued a letter of appreciation to Petronet on joining Natural Gas STAR International and maintaining low methane emission footprint at Dahej facility. The author is the Media and Communication Officer at PIB, Cochin. The article has been written with inputs from Petronet LNG Limited.

industry 2.0

- technology management for decision-makers | march 2014

cover story

THE UNSEEN DIMENSION

march 2014 | industry 2.0

- technology management for decision-makers

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hen Process Machinery CEO, David Miles, learned that Bluegrass Materials wanted to upgrade a newly purchased quarry, he was excited about the opportunity. Not only would it be a great project, but it would also be a chance to work with the Baker family, the new owners and well-respected leaders in the aggregate industry. Operating since the 1950s, the Bowling Green South Quarry still had 90 years of life left, but the plant was well past its prime and plagued by costly maintenance issues. Miles knew there would be a lot of competition for the job to design, fabricate and build the new plant, but he believed his team’s 34-year history and its focus on delivering the best total value would set it apart. “We listened to their goals and tried to provide the best engineered project we could offer them. They had a vision of what they wanted this plant to be, and we worked hard to give it to them. In the end, I think we brought the best solution to the table, and at a good value, and that’s why they decided to go with us,” says Miles. The Quarry Manager, Bill Bob Lindsey, says he was tickled when Process Machinery got the job because of its reputation for doing quality work. He had been waiting to get a new plant for the past 20 years and was excited to be a part of the team sharing ideas about what the new plant should look like. But what he couldn’t envision was how Process Machinery was going to design a system to deal with rock from four distinct ledges. “The rock here presents some challenges. We have scrubber stone that’s got to be kept separate; it can’t be mixed with any other material, so we needed a way to bypass the surge. This may sound simple, but it’s really very, very complicated. But they came up with a design that could do it,” says Lindsey. The end result is a Process Machinery design creating an extremely flexible and comprehensive blending system, which allows the plant to make a full gamut of stone with a lot of blending combinations, as well as sand and lime products. Fulfilling Bluegrass Materials’ request for long-term reliability and simplified maintenance was an easier task, according to Miles. Because, he says, they specified Baldor•Reliance motors

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Considering the industry standard, Baldor’s Dodge Torque-Arm II shaft-mounted speed reducers were selected for the project – because of the product’s proven performance and long-term reliability. The patented sealing system uses an HNBR oil seal protected by a metal excluder seal with rubbing lip, making this reducer a perfect fit for the harsh-duty industry. and Baldor•Dodge gearing, bearings and pulleys. “We stuck tried-and-true to our values and principles that we design all our plants around. And that means we specify Baldor and Dodge products. This has been our specification for more than 30 years, and we have great comfort with it. Recommending these products was just one more way we brought value to this project,” says Miles. For the Bowling Green South Quarry project, Process Machinery selected Baldor’s Dodge Torque-Arm II gearboxes, Imperial and Type E

industry 2.0

- technology management for decision-makers | march 2014

cover story bearings, Mine Duty Extra pulleys, and Baldor•Reliance Quarry Duty and Severe Duty motors. Miles says they based all of these selections on proven quality and reliability.

“I can’t deal with an inferior product, and I don’t want any issues. The products have to perform the way I’m told they will...” — David Miles, CEO, Process Machinery “I can’t deal with an inferior product, and I don’t want any issues. The products have to perform the way I’m told they will. And that’s what I get from these Baldor•Reliance and Baldor•Dodge products. They work and work and work, and we don’t have to go back to a job site and replace them. We have come to rely and trust these products,” says Miles.

Process Machinery also relies on Baldor’s System-1 group, a team that facilitates the design, quotation and order processing of multiple products for project support. Craig Hartlage, Project Manager for Process Machinery, says he has partnered with the System-1 group for more than 15 years, calling it his one-stop spot to get everything he needs from Baldor. “Not only do they provide us with a quote for all the electrical and mechanical components. They also make sure the pulleys are preassembled with the correct bushings, shafts and bearings to our specifications. This is a real time-saver for us – because all our team has to do is mount the assembled package. The time we save helps us increase the throughput in our shop,” says Hartlage. Because Process Machinery builds in a ‘just-in-time’ process, they also rely on the System-1 group to ensure that all of these packages and other components are delivered on time and in the right order. Hartlage says that

Baldor’s Dodge Imperial-E spherical roller bearings feature a patented locking system that provides a concentric grip to the shaft for superior holding, with Type E mounting dimensions. Proven Trident seals provide maximum sealing protection and are extremely effective for harsh and dirty environments.

march 2014 | industry 2.0

- technology management for decision-makers

www.industry20.com

Process Machinery relies on Baldor’s System-1 group, a team that facilitates the design, quotation and order processing of multiple products for project support. The System-1 group also ensures that all of the packages and other components are delivered on time and in the right order.

being able to deliver a project more quickly helps set his company apart from other OEMs. And he adds he relies on the System-1 group to perform. “If we need components in a specific order, we tell them, and they work with us. We have no hesitation going after these large projects – because the System-1 team understands what’s expected, and they work to meet our need. It’s a relationship that has worked for a lot of years,” says Hartlage. No one is more pleased with the way the plant turned out than Lindsey. He says his life is a whole lot easier these days with a plant that’s efficient and easy to maintain. He admits that it took him a while to get used to it – but now enjoys coming up with a couple of little things every week to make the plant run even better. “We got what we actually wanted. We’re really happy with the plant. If I had to do this all over again, I would choose the same products, and I would lay it out the same way. I wouldn’t change a thing,” says Lindsey. That’s just the reaction that Miles likes to hear from a customer. He is also pleased with the way the plant turned out and proud that the

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“If we need components in a specific order, we tell them, and they work with us. We have no hesitation going after these large projects – because the Baldor’s System-1 team understands what’s expected, and they work to meet our need...” — Craig Hartlage, Project Manager, Process Machinery

Bakers trusted them to deliver an innovative design, constructed with high-end motor and mechanical components. “We know we are not the cheapest in the industry. But we like to think we offer the greatest value in the industry. This is an efficient plant that’s built to last with products that offer reliability, durability and maintainability. By taking the total cost of ownership approach, Bluegrass Materials has a plant that will be running for a very long time,” says Miles.

industry 2.0

- technology management for decision-makers | march 2014

design & optimisation

Designing The New

Formula One Racer Infiniti Red Bull Racing is relying on Siemens software once again this season for record speeds both on and off the track.

Infiniti Red Bull Racing entirely develops and manufactures its champion car using Siemens software for Product Lifecycle Management (PLM).

ver 100 engineers are using Siemens software to redevelop the world champion racecar for Sebastian Vettel and Daniel Ricciardo at the team's factory in Milton Keynes, UK. New rules issued for the 2014 Formula One season by the FIA, motorsport's global governing body, mandate wide-ranging changes in the car's design. Siemens' Product Lifecycle Management (PLM) software is helping ensure their rapid implementation. "In the racing business, time and reliability are the key success factors. Minimal changes in a car's construction can impact its entire performance. Our PLM software is enabling the engineers at Infiniti Red Bull Racing to accelerate product design and production processes, achieving more design iterations in the virtual environment than could ever be achieved physically. But PLM software isn't just a plus for Formula One, our customers can use it in almost every industry â&#x20AC;&#x201C; from ski design to industrial production," said Siegfried Russwurm, CEO of Siemens' Industry Sector and Member of the company's Managing Board.

march 2014 | industry 2.0

- technology management for decision-makers

The Siemens software allows Infiniti Red Bull Racing engineers to design new car components, test them in the virtual domain and initiate their production and installation with a mouse click in record time. "The Siemens partnership is a critical one for us because it's an integral part of our design process. Through our relationship with Siemens we've come to rely on their critical tools to generate creative design solutions, thus ensuring that we field the best grand prix cars we possibly can. Siemens has been a key contributor to our success in recent years, and the eight world championships we have achieved," states Christian Horner, Team Principal, Infiniti Red Bull Racing. Later modifications can, of course, also be made quickly. To adapt the racecar to individual track conditions, developers can simulate a wide range of variants on the computer in order to find the ideal configuration. Both in the factory and at the track, engineers have access to all the design data they need to continuously monitor the results of changes to the vehicle.

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quality & innovation

Optimising Upholstery Manufacturing Application of good software in a wood-working industry helps it achieve double digit material savings, significant reduction in waste and dramatic increase in throughput and process automation.

Photo Courtesy: Anzea

ooker Furniture, founded in 1924 in Martinsville, offers complete home furnishing resources. During over 85 years of operation, the company sought to display integrity in its relationships with employees, customers, sales representatives, suppliers and buyer-communities. Product integrity is paramount for the company. With a goal of enhancing quality of life for all the people it touches, Hooker strives to be financially, socially and environmentally responsible. When the company was looking for an integrated solution to ensure material saving, reduction in waste and increase in throughput and process automation, they decided to implement Plataine’s production optimisation software. Plataine’s Total Production Optimization (TPO) WoodOptimizer enables upholstery manufacturers to quickly respond to market changes and remain viable in an increasingly competitive global environment – that includes customer demands for made-to-order, Just-In-Time (JIT) products at competitive prices. WoodOptimizer’s RollingNest automatically optimises the placement of pieces from one or more orders on multiple sheets of plywood, resulting in material

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yields that are consistently higher than any other solution. By generating efficient tool paths, WoodOptimizer also improves the productivity of CNC routers and contributes to an overall automated and optimised production process. It is also offered as a Service - SaaS – a fundamentally faster and more cost-effective alternative to ‘traditional’ (on premises) software installations. The SaaS model offers minimal upfront costs, faster time to value and ongoing payments that are closely coupled with the value received. In the words of David Davis, Director of Engineering at Hooker Furniture, “We were looking to improve the broader manufacturing metrics, beyond the focus

on material of nesting-only software. TPO allowed us to cut frames Just-In-Time (JIT) and reduce our Work-In-Process (WIP) inventory while our parts require practically no downstream operations prior to assembly. Within a relatively short period we were able to see considerable plywood savings and become more efficient in both material and labour.” Plataine’s TPO Production Scheduler compliments WoodOptimizer by offering automatic and optimal assignment of work to the appropriate work centres and machines, delivering its nests and cut-path directly to the routers while providing manufacturing information to station operators, through user-friendly touch-screen terminals and real time progress reports. “Hooker’s selection of our TPO WoodOptimizer and Scheduler solutions came after a thorough due diligence process, highlighting our technological and market leadership. At the core of our partnership with Hooker stands their strong commitment to production efficiency and quality, pushing these envelopes far beyond the capabilities of standard nesting software,” said Avner Ben-Bassat, Plataine’s President & CEO.

industry 2.0

- technology management for decision-makers | march 2014

challenges & solutions

Breaking The

Path

IBM’s new exchange, which is built on IBM Sterling B2B Collaboration Network technology, will eliminate several inefficiencies by standardising, automating and accelerating the exchange of transactional data through the cloud.

ntil now, Indian auto manufacturers and parts suppliers have relied on manual processes to exchange transactional data, including the tens of thousands of invoices, purchase orders and shipping notices created each day. This manual approach was prone to human error, extensive transaction delays and increased processing costs. IBM has deployed a businessto-business (B2B) cloud-based network that will help transform the Indian automotive industry by accelerating the movement of data and reducing transaction costs by up to 80 per cent. The new exchange – AutoDX – was developed in partnership with the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Components Manufacturers Association (ACMA), the two leading industry bodies in the Indian automotive industry. As per IBM, as the product is built on their Sterling B2B

march 2014 | industry 2.0

Collaboration Network technology, it will eliminate these inefficiencies by standardising, automating and accelerating the

- technology management for decision-makers

exchange of transactional data through the cloud. This will enable members to drive faster, more accurate processing at

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reduced operational cost, helping ensure the right products are delivered to the right customers at the right time. “This is the first industry wide digital collaboration initiative for the Indian automotive sector and has the potential to transform the entire industry. AutoDX - using IBM's cloud computing platform - will greatly improve efficiencies and reduce costs across the entire ecosystem as the exchange of information on various critical logistics and financial transactions can now be done seamlessly between supply chain partners without any manual intervention," said Vijay Sethi, CIO, Hero Moto Corp Ltd & Chairman, SIAM IT Committee. “There has been a lot of inconsistency with how transac-

tional data is shared in India between manufacturers, suppliers and customers, resulting in processing delays, inaccurate

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transactions and other inefficiencies. ACMA and SIAM are excited to come together with IBM and take advantage of its decades of experience in supply chain technology to help build a platform that enables all of our members to exchange data quickly, accurately and in a safe and secure manner,” said Sri Karumbati, CIO of SSS Springs and Deputy Chairman of the ACMA Technology Committee. Representing over 750 of India’s top auto manufacturers and parts suppliers, ACMA and SIAM expect the majority of its members to adopt the platform by the end of the year, making IBM the prevailing provider for Electronic Data Interchange in India for the auto industry. Leading auto OEMs and suppliers have already integrated AutoDX into their processes, including Tata Motors, Hero MotoCorp, SSS Springs and Sundram Fasteners. The platform benefits will also be extended via the cloud to trading partners, logistics providers, banks and other entities that interact with Indian auto OEMs and suppliers on a regular basis. “This is a path breaking, industry-wide initiative that seeks to create an overarching platform for the entire Indian automobile industry. This system created by IBM will go a long way in improving overall efficiencies across the entire automotive ecosystem by standardising the data definitions, data interchange formats and therefore expanding the possibilities of automation,” said Jagdish Belwal, CIO, Tata Motors. IBM worked closely with ACMA and SIAM to develop common standards specifically for the Indian auto industry to help it prosper and compete on a global scale. By deploying the

exchange in the cloud, auto manufacturers and suppliers can quickly and easily adopt these standards while enabling the network to scale over time. The cloud also opens additional connections for the India auto industry to over 160,000 organisations around the world that already use IBM Sterling B2B Collaboration Network – which processes over 1.9 billion transactions per year and sits at the heart of AutoDX. The IBM Sterling B2B Collaboration Network is one of more than 100 software-as-a-Service (SaaS) offerings from IBM enabling supply chain, marketing, procurement, HR, legal, finance and more business functions to drive top-line growth and bottom line profitability in the cloud. “Under fierce global competition, companies are increasingly deploying cloud technology to keep pace and dynamically address changes in market demands. By combining the emerging power of cloud with our time-tested B2B collaboration network, we can help ACMA and SIAM transform the entire India automotive industry on a massive scale to accelerate their pace of innovation,” said Venkataraman Neelakantan, Industry Leader - Manufacturing & Natural Resources, IBM India – South Asia. The exchange is based on solutions from IBM's Smarter Commerce initiative, which features software and services that help companies transform their business processes to more quickly respond to shifting customer demands in today's digitally-transformed marketplace. The initiative is driven by leading organisations that want to deepen their relationships with their customers and secure greater brand loyalty and advocacy.

industry 2.0

- technology management for decision-makers | march 2014

challenges & solutions

“Some of the Indian plants have become global benchmarks in energy consumption…” Dalmia Cement (Bharat) Limited (DCBL) is a multi-spectrum cement player, and a pioneer in super specialty cements used for Oil wells, Railway sleepers and Air strips. Vipin Agarwal, CEO, DCBL ‒ South, talks to P. K. Chatterjee on the present situation in the Indian cement industry. Q What is your comment on the status quo of the Indian cement industry?

Q How is the potential in the international market growing?

A The status quo in cement industry is partly attributable to the general economic slow down being experienced for long. This has only worsened over a period of time due to slow down in the effective functioning of the government at centre. But, notwithstanding the slow down in effective governance driving the agenda of economic growth, potential for the cement industry to grow remains intrinsically high – because of the huge need to grow infrastructure coupled with housing. Per capita consumption of cement in India is one of the lowest. Even marginal growth in economy would certainly result in boosting the demand for cement breaking the status quo.

A Africa and Middle East offer international opportunity to Indian manufacturers to look for alternative markets to hedge against the slow down in domestic consumption. However, this does carry the challenge of lower realisations and market risks of competitive pricing.

Q What are the areas where government's actions are urgently needed?

A Cement industry very much needs and deserves the attention of government for fiscal concessions, switching over to concrete roads from the traditional bitumen based roads, incentives for consuming the environment pollutants like fly ash generated by thermal power plants or slag by steel plants and being a very big potential user of incinerator of hazardous waste generated by number of industries. Q What are the strategic measures that may be adopted to remain profitable now? A Cement, being a highly capital intensive industry, needs the confidence of investors and must generate a fair return on its investments (RoI). In these tough times when demand is lukewarm, the industry deserves concessions in excise duty, VAT – and also reduction in freight from railways.

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- technology management for decision-makers

Q What kind of technological innovations are being thought for the industry? A Cement industry has come a long way in terms of becoming energy efficient and using alternative means to reduce its cost – apart from providing platform to burn the hazardous wastes. Many cement companies are proactively taking new initiatives in these directions – through PAT (Perform, Achieve and Trade) Scheme of Bureau of Energy Efficiency (BEE), AFR (Alternate Fuel and Raw Material) and Waste Heat Recovery (WHR) through co-generation. Energy consumption is likely to be reduced by 4.8% in first cycle of PAT Scheme, ending in 2015. Some of the Indian plants have become global benchmarks in energy consumption, next to Japan. Q Are the Indian cement manufacturers thinking of any common (joint) decision to follow during the economic crisis? A Cement manufacturers have been pleading with the government to grant fiscal concessions and also rebate in rail freight. Competition Commission had earlier accused the cement manufacturers of indulging in price cartelisation. In our view, this is far from reality – as it is self evident from the fluctuations in prices month on month and week on week basis. Cement manu-

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Vipin Agarwal CEO DCBL – South

facturers are deeply concerned with the slow pace of decision making in sanctioning funds to large infra-projects – both at centre and state level. This has also impacted a large number of contractors finding themselves in cash crunch mid way. Q

How is the present situation affecting the worker section in your industry? A The worker section is not affected by the present situation, since the industry has not announced any lay offs or lock outs. Rather the industry on an overall basis has continued to absorb the periodic

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wage hikes – (literally speaking) even at the cost of shrinking margins. Q

When do you think the cycle will change?

A Economic revival, as per global agencies and

national experts, is long overdue in an economy of the size and texture of India. There are forecasts of foreign investments waiting and watching for the formation of a new government at the centre. As of now one has to give concession to the forthcoming general elections. Then (if god wishes) a stable new govt can set out the agenda of fueling the economic growth.

industry 2.0

- technology management for decision-makers | march 2014

supply chain

ACCURACY TO Using Fujitsu’s Model Predictive Control (MPC) technology, which has been specifically developed for supply chain management, it is possible to make successive revisions to plans based on multiple long-term forecasting scenarios and to respond to sudden changes in demand.

n recent years, there has been a sudden emergence of tools for real-time collection, compilation, and analysis of huge volumes of data, such as data from product sales as well as social media and sensor data. The use of big data has come to be regarded as an important way to grow business and establish competitive advantage. This includes putting machine learning, data mining and other predictive and analytic technologies to work together with optimisation technologies to deal with enormous volumes of data. Technologies employing big data are increasingly seen as a way to assist with decision making in operations and management.

it is not easy to make accurate forecasts that take into account changes in demand that may arise from special sales or new product introductions. In such situations, it has been challenging to determine how best to use big data to make optimal decisions. While it is possible to improve forecasting accuracy by using more sophisticated forecasting models that explicitly account for the factors underlying changes in demand, there is no way to completely eliminate the uncertainty in the forecast. Accordingly, it is important to make the best possible decisions – while understanding the risks involved because of the inherent uncertainty of forecasts.

It is not easy to make accurate forecasts that take into account changes in demand that may arise from special sales or new product introductions…

A recent development

Big data has made it possible to forecast demand with increasing accuracy, but there is still a need to make better decisions for production quantities and order quantities in situations – where demand often changes due to factors such as discount sales promotions or new product introductions. In such situations forecasting is considered to be unreliable and uncertain.

Fujitsu Laboratories, a wholly owned subsidiary of Fujitsu Limited, has developed a Model Predictive Control (MPC) technology, based on multiple forecasting scenarios, that looks ahead a certain amount of time to generate optimal ordering and production plans. Furthermore, by revising the forecasting model itself, it is possible to generate highly accurate planning made in response to sudden changes in demand. This soln can be used, for example, to optimise inventories based on demand forecasts for retail store operations, or to generate ordering plans that optimise profits even when demand changes suddenly. When verified with actual customer data, profits increased by an average of roughly 16 per cent.

The burning issue

Technology developed by Fujitsu

Although the accuracy of demand forecasting is improving thanks to the use of point-of-sale data,

Fujitsu Laboratories has researched and developed optimal control methods for relevant models in the

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- technology management for decision-makers

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Photo Credit: www.thinkstockphotos.in

FORECASTING

manufacturing domain, and taking into account the unpredictability of models. It has moved forward on the development of model predictive control technology that achieves optimal control in response to conditions that change minute-byminute. This has been applied to fields such as energy management and engine control, where it has resulted in more efficient use of resources and improved performance. In this instance, Fujitsu Laboratories applied its acquired Model Predictive Control technology to

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retail supply chains. Responding to rapid changes in demand, and taking into account opportunity loss due to the cost of maintaining inventory and the cost of running out of stock, this technology achieved ordering plans that minimised total costs.

Key features of the new technology Every time an order is placed, the system determines the optimal order quantity by performing an optimisation calculation that attempts to maximise profit while minimising total costs. These costs

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- technology management for decision-makers | march 2014

supply chain ously had been difficult to achieve. This technology uses a calculation technique called mathematical optimisation, which gets the best answer possible by following the rules that have been applied. In this instance, by varying the way it calculates the total cost and the constraints, it can generate ordering plans with flexibility.

Results of applying the technology

Figure 1: Inventory optimisation using Model Predictive Control (MPC) technology

This technology was able to generate ordering plans that optimised retail inventory levels in a supply chain in a way that maximises profit and responds to rapid changes in demand. When confirmed using actual retail store data across approximately 90 stores over a period of 60 weeks to generate ordering plans, this technology improved profits for all but one of these stores over

It is possible to improve forecasting accuracy by using more sophisticated forecasting models that explicitly account for the factors underlying changes in demandâ&#x20AC;Ś (Profit comparison of each store: conventional method = 100%) Figure 2: Results of inventory optimisation using MPC technology

conventional methods of determining order quantities via safe inventory amounts. In total, this technology increased profits by an approximate average of 16 per cent (Figure 2).

Plans for future include the cost of carrying inventory and the cost of opportunity losses incurred by running out of stock, all under a set of constraints, such as shipment capacity, delivery time and expiration dates. Order quantities are optimised over a fixed period that is based on a demand forecast that is successively revised. Order quantities are calculated to limit loss and maximise profits even under worst-case scenarios, by taking into account multiple long-term forecasting scenarios gleaned from big data. By repeating the forecast/optimise cycle in steps above, it is possible to automatically generate optimal ordering plans that respond to rapid changes in demand, all while taking into account the uncertainty in the forecast, a result that previ-

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- technology management for decision-makers

Today, Fujitsu Laboratories is developing a forecasting and optimisation platform that assists with and automates decision making in operations and management â&#x20AC;&#x201C; by combining advanced forecasting and analysis technologies based on big data with optimisation of technologies, and is making it possible to create templates of analysis scenarios that combine forecasting and analysis with optimisation, all on a single platform. In the future, the company will incrementally incorporate an optimisation technology â&#x20AC;&#x201C; based on the newly developed model predictive control technology into this forecasting and optimisation platform, and position it as part of the FUJITSU Big Data Initiative set of products and services related to big data.

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supply chain

Success

With Redesign Lennox International, a global player in the heating, air conditioning and refrigeration industries, has doubled its distribution footprint via a strategic redesign of its supply chain.

o grow market share and increase its Earnings Before Interest and Tax (EBIT) by $25 million, Lennox International moved from a national distribution network to a regional distribution, hub-and-spoke network. With broader visibility and regional control, the company has increased its productivity by more than 50 per cent, and now reports its shipping and inventory has reached a 99 per cent accuracy rate.

Solution used Lennox has used Manhattan Associates’ Transportation Management System (TMS), Warehouse Management System (WMS), and Labor Management System (LMS) solutions in six United States distribution centres.

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Selection criteria “We turned to Manhattan, not only for their expertise, but because they offered an integrated system – lowering our costs and customer cycle time. Because Lennox is a transportation-driven company, Manhattan Associates TMS was the natural choice to support our strategic growth,” says Gary Bedard, Vice President and General Manager, Lennox International.

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FOOD LOGISTICS' ANNUAL FL100 Supply Chain Commerce Solutions provider Manhattan Associates has been named to Food Logistics’ Annual FL100, a list of leading software and technology providers in the food and beverage industry. According to the Food Marketing Institute (FMI), seven of the Top 10 retailers and wholesalers in North America are Manhattan customers.

Strategic redesign The strategic redesign comes on the heels of Lennox’s annual peak season. Before Manhattan’s implementation, the manufacturer and distributor had minimal to no warehouse-level visibility. “Today we have visibility to see orders before they print, allowing us to consolidate orders – reducing freight costs and giving us greater control over inventory,” said Keith Nash, Vice President, Supply Chain Logistics, Lennox International.

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- technology management for decision-makers | march 2014

strategy & innovation

VALUABLE CHEMICALS FROM

ith its subsidiaries ThyssenKrupp Steel Europe, Germany’s biggest steelmaker, and ThyssenKrupp Uhde, a world leading engineering company for chemical, refinery and other industrial plants, and with the Max Planck Institute for Chemical Energy Conversion in Mülheim, ThyssenKrupp AG has already

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carried out planning and preliminary research in a joint preparatory project. The electricity for ThyssenKrupp’s new ‘process gas to chemical’ project is to come from renewable sources. “The philosophy behind the project is a broad-based, cross-industry approach. A cross-system solution of this kind will deliver better results than today’s already optimised sector-specific solu-

- technology management for decision-makers

tions. The intention is for the collaboration between the steel and chemical industries to permit cost-effective carbon recycling into fertilizers or fuel. So, potentially the project could reduce CO2 emissions from steel mills to virtually zero,” says Dr. Reinhold Achatz, Chief Technology Officer at ThyssenKrupp AG. Professor Robert Schlögl, Director of the Max Planck Institute for Chemical Energy

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In collaboration with partners from research and industry, Thyssen Krupp AG is initiating a cross-sector technology transfer project focusing on converting process gases from steel production into valuable chemicals.

Conversion in Mülheim, says, “The mission of our institute is to research the fundamental chemical processes involved in energy conversion and thus contribute to the development of new and more efficient catalysts.” Prof. Eckhard Weidner, Head of the Fraunhofer Institute for Environmental, Safety, and Energy Technology, says, “Our task is to put the processes examined in the project to targeted industrial use.”

Interest from potential partners is high: Around 40 representatives from research organisations, universities and companies gathered in Duisburg in December 2013 to launch the project. In addition to the Fraunhofer and Max Planck societies, the group includes Ruhr University Bochum, the University of Duisburg-Essen, and the Duisburgbased Fuel Cell Research Center ZBT. Alongside ThyssenKrupp, the industrial partners involved from the start are BASF, Bayer, RWE and Siemens. The group is open to further members.

a valuable raw material and will have a significantly lower impact on the climate. Moreover, it would then be possible to use surplus renewable energies directly in the manufacture of industrial products, creating a new network between the steelmaking, power generation and chemical industries, which together employ almost 200,000 people in North RhineWestphalia. “Bayer MaterialScience has already demonstrated that CO2 can be a viable alternative for the sustainable production of plastics,” says Dr. Tony van Osselaer, Head of Industrial Operations. “That’s a start. Now it’s up to industry, science and government to build on this momentum and drive the broad-based use of CO2 as a chemical raw material.” Prof. Rolf Hellinger, Head of Power & Energy Technologies at Siemens Corporate Technology, adds, “The collaboratively developed conversion processes for industrial waste gases will be an important element of future sustainable energy systems.”

Potential of the project

Prospects and challenges

If the project is successful, in roughly ten years CO2 will be

The prospects for the project are good, as the basic chemical pro-

Interest on the project

cesses and required technologies are already largely known. The aim of the project is to clarify important practical issues such as the durability of catalysts, the purification of gas streams, and efficient process control. Converting process gases from steel mills into ammonia for use in the production of fertilizers is already technically possible, though not yet commercially viable. This process would recycle part of the CO2 contained in the steel mill gases. Another possibility would be to produce methanol from steel mill gas, a process in which the CO2 content could be almost completely re-used. The use of renewable energies for chemical conversion would require catalysts capable of handling large fluctuations in the process. This is an area where more Research and Development (R&D) work is necessary. A further challenge is: converting all the CO2 contained in the steel mill gas requires large amounts of additional hydrogen. This calls for the development of new, cost-efficient methods of producing hydrogen that can operate even with a sharply fluctuating energy supply.

strategy & innovation

Vickram Jadhav Vice-President - CHP Fortum India 34

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- technology management for decision-makers

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“CHP projects are largely captive projects in different segments…” CHP (Combined Heat and Power) is one of the most effective forms of energy production based on fuel, where almost 90 per cent of the energy is utilised. Fortum, a Finnish energy company, has recently entered India to play an active role with its expertise in CHP to help India in tackling the challenge of meeting the country’s growing energy needs and increasing carbon emission. Vickram Jadhav, Vice-President CHP, Fortum India, talks to P. K. Chatterjee on the company’s target and business strategy in India. Excerpts… Q Could you tell me about your major strategies for business expansion in India? A Fortum sees India as a market with potential owing to its geographical location and high energy requirements. In June 2013, we acquired a 5 MW solar power plant in the state of Rajasthan to understand the market better. The company’s short term ambition is to build a Photo-Voltaic (PV) solar portfolio in order to gain experiences in different solar technologies and operating in the Indian power market. Our aim in India is to evaluate investment opportunities contributing to the development of India’s energy infrastructure. We believe that Fortum has a lot to offer to the rapidly developing Indian energy market based on our long track record in sustainable power and heat production and our energy market competence. India is witnessing a robust growth in energy demand with population growth, rising standard of living which is increasing consumption and energy needs. At the same time, making the best use of natural resources and finding ways to mitigate risks resulting due to the increasing emissions from power generation is also crucial to India. This means that energy has to be produced and used more efficiently and in a smarter and sustainable way in India in the future. Q What do you see in the Indian renewable energy market in 2014? A Renewable energy, especially solar PV applica-

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tions are going to play a big role in achieving cost savings for cooling and heating applications. We believe rooftop solar is also going to reduce the cost burden for the industries, which are running on diesel sets and will definitely reduce diesel consumption. Several cities in India, especially in the southern and western part of India, are witnessing significant traction in rooftop installations. Hence, we believe there is a case that open access charges should not be applicable to these sorts of renewable energy projects. Further, these projects create a REC benefit; however, this is not recognised as yet. Q What should be your modus operandi in India? A Fortum has extensive experience in CHP production in Finland, Sweden, Russia, Poland, the Baltic countries and Great Britain. Fortum is one of the largest heat producers globally, we own totally 31 CHP plants in Europe and Russia. In 2012, CHP production accounted for 32 per cent of Fortum´s total power production and 79 per cent of the total heat production. We have very good experience in using multiple fuels in our CHP production, and we now aim to bring this competence to India. Our ambition is to use, what we call local fuels, I mean various types of biomass or waste, whenever possible. In India this could mean (say for example) coconut shell, cashew shell, rice or coffee husk. We

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- technology management for decision-makers | march 2014

strategy & innovation always strive to work closely with local communities, and using local fuels is one important way to bring benefits locally as well. Q What is your observation on CHP and its relevance to India? A We have observed that the concept of CHP is not new to India, but there is a need to have knowledge transfer from the global experts. We believe, CHP compatibility allows for very high primary fuel efficiency, and also the use of a wide range of fuels. Through CHP, one can achieve the efficiency level as close as 90 per cent – while the efficiency with separate power and steam production is around 35 per cent and 70 per cent respectively. By locally centralising the production of heat and electricity, and supplying industrial clusters, several benefits can be gained for the industries and the society as a whole. Combined heat and power production in an industrial cluster considerably increases the security of supply, reduces the need for very costly and mostly diesel-run, high emission back-up

opers to focus on ‘power’ projects. Additionally, the experience of Indian players in the heat market is limited – while most of the heat consumers currently produce heat from local fuels, imported coal or furnace oil or diesel. There are several reasons why new investments in cogenerations are not being taken up. It includes footprint requirement of regulatory issues and fuel logistics in India. New innovative plans for producing heat and power (cogeneration) need to be devised to promote investment in this segment. Incidentally, cogeneration is identified and listed as a key driver even in Indian electricity act. Q

What are the challenges at this moment?

A The Group Captive SPV needs to have an injec-

tion of equity by the Group Captive Power Users aggregating to 26 per cent and these users need to consume 51 per cent of the power generated by the plant in the same proportion 26/51. In case this condition is violated the SPV is penalised making the entire cost structure unviable – because many levies including Cross Subsidy charges are charged. Secondly, the CHP plant will necessarily rely on the grid to export and supply the power to its group captive users i.e., open access. In most of the states, the DISCOM’s create impediments in practically granting open access. Thirdly, utility corridor is required to lay steam lines and condensate lines to supply steam to its users. However, the utility corridor is either absent or not planned for the CHP. We need to construct this utility corridor in most of the industrial clusters.

By locally centralising the production of heat and electricity, and supplying industrial clusters, several benefits can be gained for the industries. power, or production losses due to industrial process failures. Moreover, by focusing on their core operations, customers can reduce their operational costs, optimise the use of their land and capital, increase efficacy by focusing on their core competence and operate with an overall more sustainable production process, including fuel and waste handling. Q Tell me something about the opportunities in this field. A Combined heat and power is not a very new concept in India and the current installed CHP generation capacity is more than 7GW. However, these projects are largely captive projects in different segments owned by metal, sugar, chemicals, textiles and other industries. There has been limited development towards large scale combined heat and power plant supplying to process industries. Moreover, heat prices in India are much lower than power prices, which have led the investors / devel-

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- technology management for decision-makers

Q How is the Indian market accepting the offerings from Fortum? A Large scale CHP requires a long term investment horizon on the part of company that no company has dabbled with till date. Also, CHP is not yet a proven technology in India, and could create headwinds for new investors in terms of returns. Taking into account the technology aspect and factoring in the host of regulatory issues, CHP green field investments need time to materialise. Having said that, the benefits are easily understood by the market, and therefore the initial response is good in terms of clients’ interest, and we are confident to share some concrete developments soon.

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Congratulations ! CFO100 HONOUREES Thank you for being a part of our CFO100 Conference and Felicitation Ceremony and making it a grand success. You can view CFO100 photographs and honoree list on www.cfoinstitute.com/cfo100 We appreciate your continuous support and cooperation. Look forward to having you in our upcoming initiatives. Platinum Partner

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strategy & decision

Economic Contribution Of Running Plants General Motors (GM) designated its three plants as stand by in 2009. After restarting Orion Assembly, Pontiac Metal Center and Spring Hill Assembly, the company has created a huge job potential in the US.

A view of the General Motorsâ&#x20AC;&#x2122; Orion Assembly Plant

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eneral Motors’ decision to restart three idled manufacturing plants in the United States not only offset the company’s captive imports of small cars and cross-utility vehicles, but also added just over 3,000 direct jobs at the company in 2013. The UAW-GM agreement to restart production at three GM plants in 2011 and 2012 supported nearly 35,600 additional indirect, and spin-off jobs in the U.S. economy (38,600 total). Further, employment at the three manufacturing facilities is forecast to grow more than 11 per cent in 2014, yielding an estimated total employment impact of 39,700 in the current calendar year. These results are included in a newly-released research memorandum by the Center for Automotive Research (CAR), based in Ann Arbor, Michigan,

which quantifies the economic contribution of GM’s manufacturing activity at three plants located in Michigan and Tennessee. The memorandum is part one of a two-part analysis of the economic contribution of General Motors in the United States and the ten U.S. states in which the company manufactures vehicles, parts, and components. The results are final for the current data provided for the three plants included in this analysis. In the 2009 UAW-GM Modification Agreement, the union and the company agreed to place three assembly plants and one metal stamping plant on ‘stand-by’ status; the facilities included: Janesville Assembly (Wisconsin), Orion Assembly (Michigan), Pontiac Metal Center (Michigan), and Spring Hill Assembly (Tennessee). According to the 2009 Agreement, the UAW was concerned that GM ‘may have exited too much capacity in certain segments,’

GM designated its 3 plants as stand by in 2009. The economic contribution of restarting production at the 3 plants yielded $530 million in transfer payments and social insurance contributions, and generated $330 million in federal personal income taxes in 2013. and negotiated this special status to enable GM to respond quickly to an upturn in U.S. demand and to avoid increases in GM’s captive imports to the United States to satisfy increased demand. CAR’s analysis shows that the vehicle production at Orion and Spring Hill largely displaced imports of GM small cars from Korea and cross-utility vehicles from Canada. Currently, only Janesville Assembly remains on ‘stand-by’ status. “This analysis shows that GM’s employment at Orion, Pontiac, and Spring Hill produced an estimated $3 billion in employee compensation in the U.S. economy in 2013 and 2014. The economic contribution of restarting production at the three plants yielded $530 million in transfer payments and social insurance contributions, and generated $330 million in federal personal income taxes in 2013,” said Kristin Dziczek, Lead Author of the study, and the Director of CAR’s Industry and Labor Group.

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industry 2.0

- technology management for decision-makers | march 2014

financial management

Highest Performing

CFOs CFOs’ expectations of their finance teams have evolved as have their views on technology.

recent IBM study reveals that while macro-economic and market factors still lead the list of external forces they expect to have the most impact on their enterprises in the near future, technology is now third on the list – up from fifth place in 2010.

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- technology management for decision-makers

“In our discussions with CFOs over the past decade, the significance of technology and analytical tools in transforming the finance function and broader enterprise has continuously risen. Data has always sat in the center of a CFO’s job responsibilities, and CFOs now recognise how insights from Big Data are helping their company become

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more competitive. CFOs are being asked to anticipate the future and discover new areas of revenue growth – we anticipate this will spur a new strategic alliance between the CFO and CMO – as they partner to drive the corporate growth agenda,” said Bill Fuessler, Partner, Finance, Risk & Fraud, IBM Global Business Services.

Highest performing CFOs Building on more than nine years of CFO conversations, the IBM research has revealed a subset of CFOs called Value Integrators: individuals who are more effective in finance efficiency and analytical insight than their peers. This year the study also identified an even smaller set of high performers called Performance Accelerators, CFOs who have mastered their core duties so thoroughly that they’re far ahead of their peers. In fact, Performance Accelerators have been 70 per cent more successful than Value Integrators, measured in terms of revenues and profits generated during the past three years.

Two times better The percentage of Performance Accelerators that are effective at integrating enterprise-wide information is double that of Value Integrators. Similarly, the percentage of those that are effective at continuously improving processes is 43 per cent higher, while the percentage that are effective at developing finance talent is 48 per cent higher.

Differentiating factor A critical differentiator for these most successful CFOs is how they use data. While the average CFO relies on spreadsheets and intuition for the majority (66 per cent) of their work, more than two-fifths (44 per cent) of Performance Accelerators combine internal and external data to produce insights. As such, Performance Accelerators are more effective at conducting various forms of analysis including tracking and forecasting supply chain financial data, planning and predicting resource capacity as well as conducting industry and competitor analysis.

Chart Credit: IBM

Big data Most significantly, Performance Accelerators use the deep insights they’ve unearthed to create profitable growth, spending more time on a wide range of activities, particularly forging an infrastructure to capitalise on Big Data, handling acquisitions and divestitures and developing new business models. “At Pabst, we have transformed our finance function to move away from the proverbial thou-

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sand spreadsheet march, now using an analytics platform to completely shift the workloads of the finance team toward higher value activities. Our business has a tremendous amount of information, and we have been able to change the culture by leading more robust data driven discussions with our leadership teams and field. Leveraging analytics has enabled us to change the conversation and become value-added partners, using business insights to drive decisions that lead to gaining market share, increasing profitability, and creating value for our shareholders,” says Cordell Sweeney, SVP and CFO at Pabst Brewing Company.

Another defining characteristic One of the other defining characteristics of Performance Accelerators is that they typically operate much more efficiently than other CFOs. More than half have created a service delivery framework to guide the design, development and operation of key financial processes. They are also more likely than other finance organisations to use a standalone, cross-functional shared services center for transactional financial activities.

Grasp of the digital domain Performance Accelerators also have a much better grasp of the digital domain as nearly half work in companies with a seamlessly integrated physicaldigital strategy. Further, the majority (70 per cent) understands – and collaborates with – customers far more extensively than other CFOs.

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- technology management for decision-makers | march 2014

event report

A Sustainable Foundation For Future India Moving towards being the largest show on Air Conditioning, Refrigeration and Building Services in the world, ACREX India 2014 ended on a high-note with 30,000 visitors from all across the country.

Inauguration ceremony of ACREX India 2014, South Asia’s largest exhibition on Air Conditioning, Ventilation, Refrigeration and Building Services. The expo was organised at Pragati Maidan, New Delhi from 27th February to 1st March, 2014 by the Indian Society for Heating, Refrigeration and Air Conditioning Engineers (ISHRAE) and managed by Nuernberg Messe India.

rganised by the Indian Society for Heating, Refrigeration and Air Conditioning Engineers (ISHRAE) and managed by NuernbergMesse India, ACREX India 2014 was held at Pragati Maidan, New Delhi from 27th February to 1st March, 2014. The expo was endorsed by ASHRAE and supported by international industry bodies like UNEP, REHVA, KRAIA, AHRI & CAR besides the Indian Ministry of New & Renewable Energy. ACREX India 2014 saw participation of 400 exhibitors from more than 25 different countries including Belgium, Czech Republic, Egypt, France, Italy, Japan, Malaysia, Saudi Arabia, Singapore, Spain, Switzerland, also Taiwan, The Netherlands, UK, UAE and Ukraine. Besides this, the exhibition hosted country pavilions from USA, Germany, Korea and China.

march 2014 | industry 2.0

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ACREX India 2014 gained international significance by becoming a melting pot for organisations like UNEP, CIBSE, EBTC & REHVA. UNEP held a series of roundtable discussions with speakers from Government of Bhutan, Italian Ministry of the Environment, Government of Maldives, UNIDO sharing their knowledge and experience with the attendees of the show. CIBSE used the platform provided by ACREX India 2014 to expand their base in India by creating CIBSE Chapters, REHVA & EBTC organised a delegation of EU Business House to further increase their presence in India and interacted with officials from Indian Government. This year, ACREX India took a giant step at being a Carbon Neutral exhibition, a first, for any society or event in India. Carbon Neutrality was the message that ACREX India 2014 aimed to convey to all industry players in the HVAC&R industry and allied segments. Air Conditioning (AC) is the single biggest consumer of energy in a building amounting to nearly 60 per cent of annual electricity bill, but with increasing awareness, both the end-users and developers are targeting ‘green development.’ Ashish Rakheja, Chairman, ACREX India 2014 said, “Energy efficiency is no more an option, but a necessity to prevent power crisis as well as conserve the environment. To help fulfill this objective, ACREX India 2014 explored innovative ways of carbon offsetting. The exposition also aimed at promoting energy efficient buildings, and the industry was able to see the latest energy efficient equipment in the field of AC, Ventilation, Refrigeration and Building Services under one roof.” ACREX India hosted a set of insight driven workshops, interactive panel discussions and a set of associate programmes. These allied programmes were steered by leading experts, academicians and technocrats from across the globe. The workshops focused on interesting topics like Cool Thermal Energy Storage in the Era of Sustainability, Geothermal Systems - Design

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Considerations, Energy Security - Renewable or Hydrocarbon, Hospitals & Critical Healthcare Facilities- HVAC Systems Design, Seismic Considerations in Building Design and BIM - Revolutionising Construction Industry. Giving an insight into the industry, Dipak Barma, President, ISHRAE, said, “The Indian Heating, Ventilation and Air Conditioning (HVAC) market is expected to grow by 30 per cent to over Rs 20,000 crore over the next two years, mainly due to acceleration in activity in the infrastructure and the real estate sectors. Between 2005 and 2010 the HVAC sector has grown to be a 10,000 crore industry, and has already notched up numbers currently, in the region of Rs. 15,000 crores. As sectors like retail, hospitality, health-care and commercial services or Special Economic Zones (SEZs), all require HVAC systems, the HVAC market is expected to grow by 15-20 per cent year-on-year.” Speaking on the successful completion of ACREX India 2014, Sonia Prashar, Managing Director of Nuernberg Messe India, said, “ACREX India 2014 expanded new business horizons for all industry players in the HVAC&R sector. With support from various organisations and active participation from partners, exhibitors and visitors across the globe, coupled with high footfalls, the growth of the show has been exponential.”

(LtoR): S. Gupta, President, Delhi Chapter of ISHRAE; T. Schlitt, Director International Sales & Business Development, Nuernberg Messe Group; A. Rakheja, Chairman, ACREX India 2014; D. Barma, President, ISHRAE; A. Goel, Convenor, ACREX India 2014 and Sonia Prashar, Managing Director, Nuernberg Messe India The expo created an environment for interactive discussions between manufacturers, developers, builders and other industry members. The show continues to attract footfalls confirming its status as South Asia’s largest and most talked about trade expo in the HVAC&R space with the number of visitors and exhibitors going up by year after year.

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product gallery Direct Drive Separator

Jump Starter

he GSI 200-06-772 direct drive separator is just one device that GEA Westfalia Separator South Africa distributes for use in the wine, fruit, fruit juice, spirits and other industries. The self-cleaning bowl makes the machine suitable for fully automatic CIP cleaning. The opening and closing of the bowl takes place hydraulically.

lore Automotive offers the JNCAIR, a 1700 Peak Amp Jump Starter with Integrated Air Delivery System, from Jump-N-Carry. This unit takes multi-function professional jump starting to a whole new level, featuring legendary Jump-N-Carry performance, plus the convenience of an integrated, industrial grade Air Delivery System. The JNCAIR features a high performance, replaceable Clore PROFORMER battery, designed to deliver high peak amps, extended cranking power, numerous jumps per charge and a long service life.

GEA Westfalia Separator South Africa Tel.: +27 11 8056 910 Website: www. geagroup.com

Clore Automotive Tel.: 913-310-1053 Website: www.cloreautomotive.com

Magnetic Drive Pump

INDUSTRIAL VALVES

eZURIK valves are used by mines worldwide in slurries, oil sands, process fluids, corrosive media/acids, steam, water, air and dry solids applications. The company offers ANSI Class Severe Service Knife Gate Valve, Urethane Lined Knife Gate Valve, Double Block & Bleed Valve and the Extreme Service Knife Gate Valve.

sealless magnetic drive pump is especially suited for high pressure applications in the chemical industry. This HPGS pump is widely used in the HPI, CPI, and specialty process industries. It can be used almost everywhere in process manufacturing., e.g., Bulk Chemicals, Hydrocracking, Petrochemical Processing, Butane Transfer, Benzene Reduction, Battery Manufacturing, Petroleum Production and Refining, Acid Transfer, Corrosive Services, Toxic Services, Polysilicon, Bioprocessing and many other areas. HMD Kontro Tel.: +1 303-425-0800 Website: www.kontro.com

DeZURIK Tel.: +1 320 259 2000 Webite: www.dezurik.com

Belt Alignment Controller

hydraulic systems

he Model TA Belt Alignment Control by Conveyor Components Company is a rugged and dependable deviation switch for belt conveyors – when they become misaligned due to an unbalanced load, high speed, belt damage or other problems. The controls are commonly used in mining operations, coal and iron ore handling operations, on assembly lines, and other bulk material handling applications. In the case of belt run off, these belt alignment controls can alert the operator.

ressure Dynamics has manufactured, installed and commissioned numerous Car Dumper Wheel Lock & Gripper hydraulic systems for their global clients. Often, the duty and conditions surrounding these packages are arduous, so the company has developed rugged hydraulic power units, cylinders and piping systems to meet the clients demanding specifications, environmental stresses and the applicable standards. The systems incorporate logic elements and accumulator storage for very high flow rates, and fast cycle times and cylinders with displacement feedback which, in conjunction with proportional valves, allow optimised cycle times and offline filter and cooling equipment for long fluid and component life.

Conveyor Components Company Tel.: +1 800 233 3233 Webite: www.conveyorcomponents.com

Pressure Dynamics Tel.: +61 1300 785 885 Website: www. pressuredynamics.com

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industry 2.0

- technology management for decision-makers | march 2014

product gallery H2O Management System

Super-Seal clamp

ärtsilä AQUARIUS UV Ballast Water Management System (BWMS) has successfully completed verification testing for Explosion Proof (EX) requirements. It now means that the product range is EX certified for Zone 1 hazardous area operation in marine and offshore installations. The system comprises a modular BWMS utilising a 2-stage approach involving filtration and medium pressure UV.

ORMA Group has developed a new clamp for fluid connections using rubber or silicone hoses in high-pressure applications, for instance in coolant and air lines. The Breeze Super-Seal clamp features a worm-drive closure mechanism with a high adjustability range and a high-pressure double-bead profile, which prevents leakages and securely fastens it to the hose. Available worldwide from July 2014, the Breeze Super-Seal clamp with or without Belleville washer can be applied on rubber or silicone hoses in diameters from 34 to 102mm.

Wärtsilä Ship Power Tel. +44 7920 476448 Website: www. wartsila.com

NORMA Group E-mail: info.in@normagroup.com Website: www.normagroup.com

Current Sensing IC

Driveline, chasis

nternational Rectifier has introduced the robust IR25750 general purpose current sensing IC, which is available in an ultra-compact SOT23-5L package that boosts overall system efficiency while delivering dramatic space savings for high current applications. The IR25750 eliminates large external current sensing resistors.

F's advanced driveline and chassis technology and steering systems made by ZF Lenksysteme GmbH are still in great demand among Hungarian urban public transport authorities: In a total of 172 new vehicles for the cities of Budapest and Pécs, the technology company's commercial vehicle components will contribute to reducing fuel consumption and CO2 emissions and increasing cost-effectiveness and comfort for driver and passengers. At the centre of attention is the fuel-saving, low-noise ZF-EcoLife automatic transmission.

International Rectifier Tel.: +1 310-252-7148 Website: www.irf.com

ZF Friedrichshafen AG Tel.: +49 (0)7541 77 7925 Website: www.zf.com

Ejector Scraper

Digital Airflow Sensors

ohn Deere is updating its ejector scraper line to better serve earthmoving contractors, who require larger capacities, lower operating costs, faster cycle times, and appreciate an extended warranty. "Our two tire version offers a dramatic reduction in operating costs," said David Wilson, Product Marketing Manager, Scraper Systems, John Deere Construction & Forestry. The ability to move more material and increase productivity helps customers lower the cost per cubic yard of material moved.

oneywell Zephyr Digital Airflow Sensors are now available in airflow ranges from as low as 10 SLPM (Standard Litres Per Minute) to as high as 300 SLPM – the industry’s broadest airflow sensing range. As per the company, they serve as the industry’s smallest Total Error Band with fast response time, and high accuracy providing precise measurement and high performance in the customer’s application. They are configurable and customisable with a choice of port styles, and simplify design and reduce production time. Also, they reduce the Printed Circuit Board (PCB) size, and overall design and production costs.

Deere & Company Tel.: 000-800-440-2271 Website: www.JohnDeere.com

Honeywell Sensing and Control Tel.:+1 815 235 6847 Website: http://sensing.honeywell.com

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Specialty Tire

Flow Meter

ontinental Commercial Specialty Tires (CST) has an innovative portfolio of tires. The company offers tailormade solutions for specific customer needs. Portfolio in brief: Continental CST is the innovative V.ply tires for port fleets; Continental StraddleMaster, Continental ContainerMaster, DockMaster and Continental CraneMaster tires are used for port vehicles such as straddle carriers, reach stackers, container cranes, terminal tractors and trailers, as well as heavy-duty forklifts. The specialty tires for commercial vehicles in port operations are based on V.ply technology.

merson Process Management expands its vortex flowmeter family with the introduction of the Rosemount 8600 Utility Vortex flow meter. Optimised for clean fluid and steam in utility applications, the new flowmeter is available in standard and multivariable versions. Its application specific design simplifies maintenance, reduces installation costs and increases availability. Emerson Process Management Tel.: + 91 265 6633000 Website: www2.emersonprocess.com

Continental (Tire Division) Tel.: +49 511 938 01 Website: www.continental-specialty-tires.com

Gear Box

Integrated Circuit

XSYS Tool offers EPPINGER gearboxes and modular Gressel vises. The full range of EPPINGER gearboxes includes bevel, planetary, hypoid and cycloidal configurations and features gear technology proven in the live tool holders also provided by EXSYS. The compact, high-transmission gearboxes are suited for a wide range of applications including machinery, automation and robotics and are engineered to meet strict demands for stiffness, performance and efficiency, and provide smooth, reliable operation. EXSYS Tool Tel.: +1 352 588 4345 Website: www.exsys-tool.com

electric cylinder

TMicroelectronics is opening new avenues for energy-harvesting applications with its latest IC integrating all the functions needed to power electronic circuits and recharge batteries using either a solar cell or ThermoElectric Generator (TEG). Harvesting ambient light or thermal energy to power small electronic devices, it reduces carbon di oxide emissions. ST Microelectronics Tel.: +91 9970391092 / 3 Website: www.st.com

Industrial Engines

esto introduces the new ESBF heavy duty electric cylinder. The ESBF cylinder is capable of generating almost two tons (17,000 N) of feed force, making it possible to use in place of a hydraulic cylinder. The introduction of the ESBF extends the range of Festo electric cylinders beyond its DNCE electric cylinder range and provides a significant increase in maximum possible feed forces and speeds. The ESBF electric cylinder is available in three sizes – 63, 80, and 100 mm – with three ball-screw pitches per size, making the ESBF an excellent actuator over a wide-range of feed forces and speeds. The ESBF is ideal for dynamic, high-feed-force applications.

aterpillar has announced that C27 ACERT and C32 ACERT industrial engines will be available for order beginning in late 2014. Those engines will use NOx Reduction System and dual DOCs with ratings from 597 kW (800 bhp) to 895 kW (1200 bhp). Caterpillar equips every U.S. Tier 4 Final, E.U. Stage IIIB and Stage IV engine with a combination of electronic, fuel, air and after treatment components based on engine size, the type of application, and geographic location.

Festo Tel.: +1 631 435 0800 Website: www.festo.com/us

Caterpillar Tel.: +1 (309) 675-2337 Website: www.cat.com

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industry 2.0

- technology management for decision-makers | march 2014

product gallery Electric Motors

Servo Drive / Motor

aldor Electric Company has added 98 new ratings to the popular Baldor•Reliance Super-E Motors with Internal AEGIS Bearing Protection Ring. Originally launched in 2010, this product line provides end-users with off-the-shelf availability of motors equipped with a pre-installed shaft ground. The additional 98 ratings expand the existing 4 pole line of TEFC & ODP designs through 100 HP, and also add a generous offering of 2 and 6 pole models as well. Additionally, 575V TEFC motors were added, 1 to 50 HP, as well as TEFC & ODP close-coupled pump motors.

iemens Industry has launched the newly-developed SINAMICS V90 servo drive and SIMOTICS S-1FL6 servo motor for motion control applications. The drive and the motor, together form an optimised servo drive system for positioning, speed and torque control. As per the manufacturer, it not only provides a cost-effective solution but also shortens time-to-market with easy commissioning, thus improving customers’ competitiveness. Being a cost-effective product, SINAMICS V90 has various integrated control modes to address a wide range of applications such as pick and place, labeling, horizontal packaging, printing etc. It also finds use in winders and unwinders and automatic assembly machines. Point-to-point positioning is possible by using a basic PLC without a positioning functionality. With integrated braking resistor for all frame sizes, most applications can be realised without an additional braking resistor.

Baldor Electric Company Tel.: 00+1+479+646-4711 Website: www.baldor.com

Siemens Ltd. Tel.: +91 22 3967 7000 Website: www.siemens.com

Business Index Company ................................................. Page No.

Company ................................................. Page No.

ASSOCHAM......................................................10, 12

FESTO....................................................................47

Manhattan Associates.......................................... 31

Automotive Components Manufacturers

Fortum India..........................................................34

Max Planck Institute for Chemical

Association (ACMA).............................................24

Foster Wheeler..................................................... 04

Energy Conversion................................................32

Baldor Electric Company............................... 18, 48

Fraunhofer Institute for Environmental,

NORMA Group......................................................46

BASF......................................................... 04, 05, 33

Safety, and Energy Technology...................... 14, 33

Plataine.................................................................23

Bayer.....................................................................33

Fraunhofer IWS Dresden....................................... 14

Pressure Dynamics...............................................45

BHEL.....................................................................05

Fujitsu Laboratories..............................................28

Process Machinery............................................... 18

Bluegrass Materials.............................................. 18

Fujitsu Limited......................................................28

Radboud University Nijmegen.............................. 15

Caterpillar.............................................................47

Gartner............................................................ 07, 08

RWE.......................................................................33

CG.........................................................................03

GEA Westfalia Separator South Africa.................45

Siemens..........................................................33, 48

Chartered Institution of Building Services

General Motors (GM)............................................38

Siemens PLM........................................................22

Engineers (CIBSE)................................................42

Hitachi...................................................................05

Society of Indian Automobile

Clore Automotive..................................................45

HMD Kontro..........................................................45

Manufacturers (SIAM)..........................................24

Continental Commercial Specialty

Honeywell Sensing and Control...........................44

S-OIL Corporation................................................ 04

Tires (CST)............................................................47

Hooker Furniture...................................................23

ST Microelectronics..............................................47

Conveyor Components Company........................45

IBM..................................................................24, 40

Thyssen Krupp................................................06, 32

Daimler India Commercial Vehicles (DICV).........03

Indian Society for Heating, Refrigeration

Toshiba Corporation.............................................05

Dalmia Cement (Bharat) Limited (DCBL)............26

and Air Conditioning Engineers (ISHRAE)...........42

University of Wisconsin-Madison......................... 14

Deloitte Touche Tohmatsu.....................................11

International Rectifier..........................................46

USDA Forest Products Laboratory....................... 14

DeZURIK................................................................45

ITOCHU Corporation............................................05

Vietnam Expressway Corporation (VEC).............05

DISA India............................................................. 06

John Deere............................................................46

Wärtsilä.................................................................46

Emerson Process Management...........................47

Lennox International............................................. 31

Wisconsin Institute for Discovery (WID).............. 14

EXSYS Tool............................................................47

Maersk................................................................. 06

ZF Friedrichshafen......................................... 05, 46

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DELENG18539/29/1/2013-TC