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VOLUME 10
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MAY 2011 VOL 10 ISSUE 09
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editorial VOl. 10 | ISSue 09 | May 2011
Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: R Giridhar Sub-Editor: Reshmi Menon dEsign Sr. Creative Director: Jayan K Narayanan Art Director: Binesh Sreedharan Associate Art Director: anil VK Sr. Visualisers: PC anoop Chief Designer: N V Baiju Sr. Designers: Prasanth TR, anil T, Joffy Jose Anoop Verma, Chander Dange & Vinod Shinde Designers: Sristi Maurya, Suneesh K, Shigil N & Charu Dwivedi Chief Photographer: Subhojit Paul Photographer: Jiten Gandhi
Better VisiBility can boost EfficiEnciEs
brand managEmEnt General Managers: Nabjeet Ganguli, ankur agarwal
he one thing that every manufacturer regrets is a missed sales opportunity. How often have you called a distributor or a supplier and have been told that the product that you need is not in stock? If your need is urgent, you will make frantic calls to obtain the product from other locations, perhaps at less attractive terms. If you are an important customer, the manufacturer may make extra efforts to get the product to you. However, given the production and transportation constraints that exist in the manufacturing ecosystem, it is likely that you will resign yourself to a delay in the order fulfillment. So, savvy production managers often maintain a buffer to tide them over temporary outages. The problem is, how much buffer is enough? Keep too much, and you tie up expensive finances, and risk material deterioration or adverse fluctuation in commodity prices. Keep too little inventory and production could come to an abrupt halt, resulting in lost customer orders, diminished reputation and financial penalties for non-performance. In today’s dynamic economic environment, it is necessary for all manufacturing managers to keep a close watch on inbound and outbound supply chain activities, and actively monitor suppliers, prices and delivery performance. Material and part procurement policies may need to be actively adjusted to suit changed conditions. Ordering norms should be
salEs & markEting National Manager - Sales: Pranav Saran (09312685289) National Manager - Events & Special Projects: Mahantesh Godi (09880436623) Assistant Brand Manager: arpita Ganguli GM South & West: Vinodh Kaliappan (09740714817) Kolkata: Jayanta Bhattacharya (09331829284) Production & logistics Sr. GM - Operations: Shivshankar M Hiremath Manager - Operations: Rakesh upadhyay Assistant Production Manager: Vilas Mhatre Logistics: MP Singh, Mohamed Ansari officE addrEss Nine Dot Nine Interactive Pvt ltd Kakson House, a & B Wing, 2nd Floor 80 Sion Trombay Road, Opposite R K Studio Chembur, Mumbai 400071. 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 Plot No. 725 GeS, Shirvane, Nerul, Navi Mumbai 400706. Board line: 91 22 67899666 Fax: 91 22 67899667 Editor: anuradha Das Mathur Plot No. 725 GeS, Shirvane, Nerul, Navi Mumbai 400706. Printed at Silverpoint Press Pvt. Ltd, Plot No. A-403, TTC Industrial Area, MIDC, Mhape, Navi Mumbai 400709.
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industry 2.0
r Giridhar editor@industry20.com
regularly reviewed to ensure that parts and materials are not unnecessarily stocked, returned and wasted by deterioration. Through effective management of the procurement process, the organization can make substantial savings. To do this, however, manufacturing managers need to adopt a demandpull system, and have greater visibility. The production plan should be demand driven, with actual customer orders and deadlines driving output. Manufacturing lines will need to be configured to be agile and flexible to accommodate this new working style. Managers and planners will need up-to-date information from the shop floor on output and material consumption to ensure that the lines do not run out of parts, or can meet exigencies. The finished goods warehouse will also need to communicate near real-time status to both distribution and production managers to ensure high efficiencies. The demand-pull system should also drive procurement and inventory management, in addition to production planning. This will ensure that those responsible for obtaining the materials are aware of the actual requirements, and have adequate opportunity to fulfill needs without wastage. IT can play a big role in enabling visibility across the manufacturing organization, and enhancing efficiencies. Isn’t it time you started on it?
- technology management for decision-makers | may 2011
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contents information technology 34 Better Information Security In SMEs A written security policy and good enforcement will help SMEs effectively address information security challenges.
manufacturing technology 36 Diagnosing Disturbing Noises Analyzing the vibration of rotating equipment can reduce downtime, increase safety and lower maintenance costs.
innovation & success 41 Advanced Software Provides A Competitive Edge Product Lifecycle Management (PLM) software minimises development time for new machines.
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management & strategy 42 Using People Data To Create Value
cover story Putting A New Spin On Plastic Welding
Analyzing links between people practices and productivity is necessary to improve company bottom lines.
Improved drive control and linear motion technologies gives washing machine parts manufacturer greater reliability, reduced waste and less downtime.
supply chain & logistics 50 Choosing The Right 3PL Provider
Cover design: Suneesh K
Identifying a suitable logistics service provider can significantly enhance efficiency, improve customer service and reduce waste.
In Conversation
52 Improving Inventory Management Better inventory management conserves capital and reduces waste.
departments Editorial ......................................01 IndustryU pdate......................... 04
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26 BAlAji SAhu DGM-Technical, aMTek inDia 32 FrANK lAgANier asia Pacific Zone DirecTor, rhoDia enGineerinG PlasTics 40 hAriSh jOShi ManaGinG DirecTor, nichroMe inDia 45 NiyAti AgArWAl senior Vice PresiDenT, rainbow PaPers 48 ANdrzej grzeSiAK heaD, fraunhofer aDDiTiVe ManufacTurinG alliance
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Event Report ............................. 12 Soft T alk ..................................... 14 TechnologyU pdate.................... 16 Market D ynamics ...................... 18 Advertisers’ Index ..................... 18 Opinion ...................................... 22 Product Update ......................... 56 Note: The April 2011 issue cover was designed by Baiju N.V but was erroneously credited to someone else.
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industry update CPP Commissions Continuous Filament Winding Plant at Vadodara two are discontinuous CFW plants. “Initially we are planning to target the Indian market and later on we would focus on the South East Asian markets including Singapore, Indonesia, Malaysia, Australia, where we already have our presence,” said CPP’s new Continuous Filament Winding (CFW) plant will produce glass reinforced plastic (GRP) pipes and sleeves. Rajpurohit. Speaking about the competition from steel and concrete umbai-based Chemical pipes, Rajpurohit explained that Process Piping (CPP) has GRP pipes are highly resistant to recently commissioned a soil and sea water corrosion and new Continuous Filament Winding therefore do not need any special plant (CFW) at Vadodara in Gujarat. linings on the exterior. Speaking on the occasion, Vijay The company is aiming to Rajpurohit, Managing Director, achieve a turnover of Rs 100 crore CPP, said, “The new CFW plant will in 2011-12, and of `500 crore by produce Glass Reinforced Plastic 2015, Rajpurohit added. (GRP) pipes and sleeves.” CPP is a part of Chemical ProBuilt at an estimated cost of Rs cess Equipment company, which 24 crore, the plant will manufacture was established in 1964. To tap the cross country piping for conveying market potential, the piping busipotable water, sea water and waste ness of the company was separated water. This is the third plant for the to form CPP in 2004-05. company at Vadodara. The other
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Kenersys Sets Up New Unit at Baramati
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ind turbine manufacturer Kenersys, part of the Kalyani Group, recently inaugurated its new manufacturing plant at Baramati. The new plant will produce multimegawatt on-shore wind turbines. The plant would entail a production of hundreds of wind turbines of Kenersys type K82 2.0 MW with 82 m rotor diameter and a height of 140 metres. B N Kalyani, Chairman, Kenersys Group and Chairman & Managing Director, Bharat Forge, said, “Renewable energy represents the
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next big frontier in the technology industry and wind power is one of the fastest growing energy sources in the world.” Paulo Fernando Soares, CEO, Kenersys Group, said,”The turbines produced here use Synerdrive technology with special features that are new for India. Synerdrive Technology comprises advanced cooling system for the harsh climate conditions and a special converter system that keeps the turbine in an idling mode during a grid down-time. We have simultaneously introduced this technology in India and in Europe.”
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event update India Machinne tools Show 2011
The event will showcase latest technologies, products and related services for the engineering machinery and machine tools industry. Venue: Pragati Maidan, New Delhi Tel: + 91-79-26469725 E-mail: info@imtos.com Date: Website: www.imtos.com 26 May to
29 May 2011
agri & Horti tech 2011
The event will display technological advancements, products, services in the field of agriculture and horticulture. Venue: Vijaya Fair Grounds, Coimbatore Tel: + 91-422-6552288 E-mail: tradeindiafairs@gmail.com Date: 27 May to Website: www.tradeindiafairs.com 30 May 2011
automotive engineering Show 2011
Exhibitors will promote solutions in vehicle and component manufacturing. Venue: Chennai Trade Centre, Chennai Tel: +91-22-32019137 E-mail: info@focussedevents.com Date: Website: www.focussedevents.com 10 June to
12 June 2011
Metal Buildings & Steel Structures expo 2011
The event will showcase the latest products and innovations in the steel
industry. Venue: Pragati Maidan, New Delhi Tel: +91-22-28763111 E-mail: amresh@inis-enterprises.com Website: www.inis-enterprises.com
Date:
23 June to 25 June 2011
auto World expo 2011
The exhibition will display automotive brands, designs, products and technology. Venue: Chennai Trade Centre, Chennai Tel: +91-44-42066489 E-mail: info@bmexhibitions.com Date: Website: www.bmexhibitions.com 23 June to
26 June 2011
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industry update Kobelco to Manufacture Hydraulic excavators In aP
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obelco Construction Equipment India, a subsidiary of Kobelco Construction Machinery Co has commenced production of hydraulic excavators at Sri City in Andhra Pradesh. The new factory at Sri City, was started up in January 2011 and is now in full operation. The company manufactures 20-tonne class excavators to meet the high demand for construction machinery. Demand for excavators in 2010 was about 11,000 units, nearly the same as in Japan. In 2015, the demand is anticipated to rise to 25,000 units. The Sri City factory has a production capacity of 1,200 machines per year. The facility incorporates the same productivity improvement activities used in Japan. “The opening of this factory marks Kobelco’s first major step in India. We will continue to move forward as we make our presence grow throughout the country,” said Shigeto Kotani, President & CEO, Kobelco Construction Machinery in Japan. Under its medium-term management plan covering fiscal years 2010 to
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Kobelco will manufacture 20-tonne class hydraulic excavators at Sri City plant. 2012, the Kobelco Construction Machinery Group is focusing its management resources on the growing Asian market. The company has been making strategic inroads into China and Southeast Asia (centred on Indonesia). Meanwhile, in order to support its global production system, Kobelco is planning to build a global engineering centre in Japan and a new factory in Itsukaichi, Hiroshima by May 2012.
Moog Bags Contract from NatRiP
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oog has secured an order from the National Automotive Testing and Research and Development Infrastructure Project (NATRiP) to supply structural and fatigue test systems. NATRiP aims to create an automotive research and development, testing and validation infrastructure for the rapidly developing automotive industry in India. The advanced test systems from Moog are expected to enable automotive OEMs and component manufacturers to have access to the most modern test facilities that meet international standards, and significantly reduce the development time for new vehicles. The Moog contract will be managed by Moog India with engineering support
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Shreyas to Strengthen Base in Gujarat
from Moog in the United States, Europe and China. “The automotive markets constantly require new test solutions, highperformance equipment and innovative approaches. We are excited to bring our global resources together to support this project,” said Lars Rasmussen, General Manager—Asia-Pacific, Moog. Moog will provide the latest control technology to simulate road conditions for automotive components and fully built vehicles. The systems will also reproduce the fatigue experienced by vehicles due to road conditions, extreme temperatures, sunlight and humidity. Moog is a worldwide designer, manufacturer, and integrator of precision control components and systems.
- technology management for decision-makers
hreyas Relay System (SRS), part of Transworld Group of Companies, is planning to deploy 100 GPS-fitted trailers to offer multi-modal transportation. The company has signed a Memorandum of Understanding (MoU) with Tata Motors to purchase 50 trailers. The company has already deployed 10 trailers in Gujarat, and is planning to expand this fleet during the year. The company also recently commissioned a warehouse facility of over 12,000 square feet at Mundra. The Gujarat region, presently contributes to 80 per cent of the company’s revenues. The company provides its services to various sectors including minerals, tile manufacturers and agri-based products. The company is now planning to venture into fertilizer movement.
Juwi Group Sets Up India Facility
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ermany-based renewable energy project developer, Juwi Group, recently commenced India operations in Bengaluru. The new company, Juwi India Renewable Energies, will develop solar power facilities in India and South Asian Association for Regional Cooperation (SAARC) countries. In the beginning, the company is planning to focus on projects, and will undertake design, engineering and construction of free-field and roof-top solar installations. In the future, the company plans to develop solar PV projects in India, covering the entire process—from acquisition of land to the completion of the power plant. “If the conditions remain attractive, we will expand our operations in India,” said Lars Falck, Managing Director, Juwi Solar GmbH.
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industry update Rhodia acquires PI’s Polymer Division
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nternational chemical company Rhodia Group has completed the acquisition of the plastics and polymers division of PI Industries. The new entity has been named as Rhodia Polymers & Specialties India, and will comprise Rhodia’s newly integrated assets, including one industrial facility based in Panoli at Gujarat, research (L-R) Frank Laganier, Asia Pacific zone Director, Rhodia Engineering Plastics; François Hincker, President, Rhodia and development capabiliEngineering Plastics and Thomas Leutner, Country Manager ties as well as the logistics – India, Rhodia at the acquisition announcement. network in India. The acquisition is a part of Plastics, said, “Why not? We will defiRhodia’s strategy to double its local pronitely see more plants coming up duction capacities and achieve a market in India.” share of 15 per cent in the Indian polyThough presently the plans are not amide compound market by 2015. concrete, he added, that the company When asked about the plans to is also planning to make more strategic establish more plants in India, Francois acquisitions in the future in India. Hincker, President, Rhodia Engineering
Messung Installs Heller Reflow Oven At Plant
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essung Group of Companies has added a new advanced technology based Heller Make 1809 Mark III series ‘Reflow Oven’ for RoHS compliant SMT based PCB soldering, to its machine floor.
Heller reflow oven installed at Messung. The Reflow oven has 18 independent temperature controlled 350OC balanced air flow ‘Lead Free’ heating zones, followed by two cooling zones to increase productivity. The PID controllers ensure temperature stability to +/-1OC along
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with computer based profile measurement and storage systems. Use of nitrogen in the process helps reduce oxidation during the heating process and offer better solder bonding. Enhanced heater modules “blanket” the PCB with heat for the lowest Delta-Ts on the toughest hi-density boards. Additionally uniform gas management system eliminates net flow which results in up to 40 per cent reduction in nitrogen consumption. The special frame structure utilizes dual insulation to reduce heat loss and save electricity costs. Inaugurating the machine, Farook Merchant, Chairman & Managing Director, Messung Group of Companies, said, “The Heller Reflow Oven will ensure excellent soldering and bonding quality. The machine saves resources and allows very high production speeds. It also expands our PCBA processing capability, thereby improving competitiveness while reducing opportunities for human error.”
- technology management for decision-makers
Vikram Solar, Proener Renovables Form JV
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ikram Solar, a part of the Vikram Group of Industries, has entered into a strategic alliance with Proener Renovables to create a new joint venture (JV) company Vikram- Proener Project. Vikram Solar will hold 51 per cent stake in the new JV while the remaining 49 per cent will be held by Proener Renovables. Vikram Group of Industries is a diversified company operating in the tea and tea processing machinery manufacturing, steel, solar power, textiles and yarns and finance. Vikram Solar will focus on the manufacture of crystalline PV modules, while Proener Renovables deals in engineering processes, design, construction and maintenance of large photovoltaic solar power plants. The new company will construct and install solar power facilities, starting with a maiden 2 Megawatt project at Raipur, Chattisgarh, involving a total investment of `25 crore. The plant is scheduled to be operational by July 2011. The company is aiming to generate revenues of `1,000 crore in the next three years and `250 crore in its first year of operations. Vikram Solar is planning to focus on Engineering, Procurement and Construction (EPC) projects under the Jawaharlal Nehru National Solar Mission (JNNSM) scheme, apart from state level projects with emphasis on roof-tops, and solarisation of telecom towers. H K Chaudhary, Chairman, Vikram Solar, said, “Conservation of fossil fuel is currently an important issue worldwide. As part of our backward integration strategy we are considering building up a 120 MW of photovoltaic cell manufacturing unit to enhance the supply of higher efficiency and superior quality cells for building our PV solar panels.”
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industry update M+R Spedag acquires PL Shipping
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colours signifying a total integration. PL Shipping & Logistics became part of the worldwide M+ R Spedag Group in September 2010. “Mergers always pose a great challenge, as they involve all stake holders. Resistance to change is a factor that must not be underestimated. As both companies have been part of each other’s success for the last 10 years, there was already a strong degree of identification, resulting in smooth integration,” said Daniel Richner, Owner, M+R (L) Daniel Richner, Owner, M+R Spedag Group and Ramkumar Ramachandran (R), Managing Director and Local Spedag Group. Partner, M+R Logistics (India). Ramkumar Ramachandran, Managing Director and Local Partner, M+R Logistics (India), said, a negotiated deal. The new entity will “The two companies shared the combe known as M+R Logistics (India), mon vision that a solid transportation with M+R Spedag Group holding a infrastructure and dependable logistics majority stake. services are a prerequisite for growth in The merger will involve a changed any emerging market.” logo, corporate design and group wiss-logistics player, M+R Spedag Group has completed the acquisition of PL Shipping & Logistics for an undisclosed sum in
Rieter Sells Shareholding In Indian JV
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AHLE Filter Systems India has commissioned a new production facility in Chennai. The plant will supply Indian vehicle manufacturers with air filter modules. The ground breaking ceremony for the new plant with a ground surface of 3,300 square meters was held in June 2010, while the building was completed by December 2010. The installation of production equipment and basic facilities was finalized by the end of January 2011. In the initial phase, the plant will produce air filter systems, intake modules, and cylinder head covers with integrated oil mist separation. The company has bagged orders for these product groups and will supply automobile manufacturers in the Chennai area from the plant. The first intake modules and air filters will be dispatched in August 2011.
tata Power, Sunengy Plan Floating Solar Plant
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ieter has entered into a strategic deal with Lakshmi Machine Works (LMW) to sell all of its shares in the Indian Joint Venture (JV) company Rieter-LMW Machinery to LMW. The closing of the transaction is expected to take place in August 2011 with Rieter-LMW Machinery continuing production for Rieter until June 30, 2011. Due to changes in the market conditions in India, the partners have agreed to concentrate on their own strengths. Following the agreement, LMW will acquire all of Rieter’s shares in the JV company and continue production at the present site in Coimbatore with a workforce of about 450 employees.
MaHLe Sets Up Plant In Chennai
The floating solar plant will be based on Sunengy’s liquid solar array technology.
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ata Power has entered into a partnership with Australian solar power company Sunengy to build a pilot plant for Sunengy’s low-cost, floating on water technology in India. Construction of the pilot plant in India will commence in August 2011. The Liquired Solar Array (LSA) was invented by Phil Connor, Executive Director and Chief Technology Officer of Sunengy. When
- technology management for decision-makers
located on and combined with hydroelectric dams, LSA results in reduced costs. The LSA uses traditional Concentrated Photovoltaic (CPV) technology - a lens and a small area of solar cells that tracks the sun throughout the day, like a sunflower. Floating the LSA on water reduces the need for expensive supporting structures to protect it from high winds. The lenses submerge in bad weather, and the water also cools the cells to increase their efficiency and life-span. An LSA installation is expected to match the power output of a typical hydro dam using less than 10 per cent of its surface area, and supply an additional six to eight hours of power per day. The primary market for LSA is the provision of industrial scale electricity via hydropower facilities. Other markets include mining sites, villages and remote communities reliant on diesel power generators.
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event report
Building A
green industry The recent Green Manufacturing Summit organised by Frost & Sullivan highlighted initiatives taken by companies towards building a green manufacturing industry.
Dr. Ajay Mathur Director General—Bureau of Energy Efficiency, delivering the keynote address at the summit.
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he Indian industrial landscape is slowly warming to the concept of ‘Going Green’. This was exhibited at ‘Green manufacturing excellence summit 2011’ organised by Frost & Sullivan. The summit aimed to build awareness about green practices by highlighting case studies of companies that have adoped the green philosophy and managed to integrate it with their overall business goals. “Green manufacturing practices have begun to gain ground in India. Even concepts like lean manufacturing contribute to environmental protection. They have helped companies reduce consumption of resources (raw material, energy, water etc) and
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improve efficiencies in processes,” said Raghavendra Rao, Senior Director, Manufacturing & Process Control Practice, Frost & Sullivan. Speaking at the event, Dr Ajay Mathur, Director General – Bureau of Energy Efficiency said, “Green is the way ahead. Initial investments, are of course, higher. However, these are recouped in the medium term, and make the company competitive and sustainable in the long term.”
Going Green
Speakers at the event presented case studies depicting green initiatives. Vinod Joshi, Deputy General Manager, Mahindra & Mahindra (Farm Equipment Division) gave an insight into the measures taken by M&M towards green manufacturing. Joshi explained that the company succeeded in ensuring zero discharge, reduction in emission of carbon dioxide into the environment and followed the principles of reduce, reuse and recycle at its plant.
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“Canteen waste is converted and reused as garden manure. Besides, at the Nagpur plant, carbon dioxide monitoring equipment is installed for vehicles of the logistics department,” Joshi said. He presented his paper on ‘Reporting progress on sustainable manufacturing practices—a case study’, along with Mahesh Dalvi, Manager, Business Excellence and Sector Sustainability Champion, M&M – Farm Equipment Division. Dalvi stated that the company is ready with the design of a bio-diesel tractor but then they are awaiting a biodiesel policy from the Government. He concluded by saying that, “Sustainability is a matter of choice.”
Green Building
The other interesting presentation was made by Dr S K Shankar, Unit Head, Aquamall Water Solutions (part of Eureka Forbes). He spoke on the topic, ‘Green building certification’. He presented a case study of the company’s green manufactur-
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ing facility located at Dehradun. The green measures implemented during construction of the facility comprised no dust during grinding / stoning, insulated rooftop, turbo ventilators and reed-bed waste water treatment system. The facility has bagged the CII award for best water practice. The plant has open grid pavements (no overflow), which help in effective rain water harvesting. Besides, the plant uses energy efficient light fixtures and implements green housekeeping by making use of environment friendly chemicals to clean the building. All these measures helped the company in reducing its water usage by 35 per cent. Shankar said that the main challenge the company faced was making flyash-based hollow blocks. The company incurred a 5-7 per cent higher cost in building the green plant.
Clean Development Mechanism
Dr P K N Raghavan, Associate Vice President (QA, R&D & Technology), Bharat Aluminium Company, presented a paper on ‘Clean Development Mechanism’ (CDM). Explaining that aluminium is the most energy intensive industry, he threw light on the role and significance of CDM. Speaking about the current scenario of CDM in India, Raghavan said, “Our preparedness to combat climate change is inadequate. India is one of the hot spots of global warming. The country is projected to experience a warming in the range of 2 to 6°C by 2100.”
Green Practices
Raghothaman H, Manager – Projects & Maintenance, Jewellery Division, Titan Industries, spoke on the topic, ‘Innovative green practices—I live green’. He explained that Titan undertook the ‘I
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Anand Rangachary, MD, Frost & Sullivan, Middle East North Africa South Asia; (L-R) Ajit Singh, Executive Vice President, Larsen & Toubro Limited; Dr Satish Kumar - Energy Efficiency Ambassador, Schneider Electric India and Dr P K N Raghavan, Associate Vice President (QA, R&D, and Technology), Bharat Aluminium Co, at a panel discussion. live green’ initiative in April 2010 to enhance better life for our future society. The company’s green measures comprised using waste food as biomanure for gardening, avoiding usage of cadmium, making a ‘Mr Perfect’ environment for karigar (goldsmith).
Case studies
The other companies who presented case studies during the summit comprised Schneider Electric on planet and society barometer; Larsen & Toubro on reporting progress on sustainable manufacturing practices – key indicators; DCM Shriram Industries on a unique approach to waste and water management and Lucas TVS on developing a green supply chain.
Green Manufacturing Excellence Awards
The Summit also included the presentation of ‘Green manufacturing excellence awards 2011’ to
companies that have implemented the ‘green philosophy’. They were categorised into leaders, challengers and aspirants based on their performance across stages of the assessment process. The ‘Certificate of green manufacturing excellence’, was presented to qualifying companies. The winners comprised Larsen & Toubro (Powai), Titan Industries—jewellery division (Hosur), J K Lakshmi Cement (Sirohi), Mahindra & Mahindra—Farm division (Nagpur, Rudrapur and Kandivli), ACC Limited—Gagal Cement Works (Bilaspur), Schneider Electric India (Hyderabad), Lucas TVS (Padi), DCM Shriram Industries (Meerut), Aquamall Water Solutions (Dehradun), IP Rings (Maraimalai Nagar) and Minda Corporation (Pant Nagar). The event also featured a panel discussion on ‘Adoption of sustainable manufacturing practices—challenges and the path ahead.’
industry 2.0
- technology management for decision-makers | may 2011
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soft talk
Autodesk Updates Manufacturing Software Portfolio Autodesk has released its new product design suite that offers digital prototyping in a cost effective package.
Factory design suite 2012 helps manufacturers make better layout decisions
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utodesk has introduced its new 3D design and engineering software portfolio for manufacturers, including the new Autodesk Product Design Suite that makes design, visualization and simulation software easier to adopt, use and maintain. The complete Autodesk Digital Prototyping software portfolio is expected to help manufacturers design and build better, more sustainable products, reduce development costs and get to market faster. The combination of 3D mechanical design capabilities of Autodesk Inventor with Autodesk visualization and simulation software helps overcome the complex challenges of product design and development. Rajiv Bajaj, Head, Manufacturing, Autodesk India & SAARC, said, “Our customers need to create remarkable products more efficiently. The new Autodesk Product Design Suite makes it easier for manufacturers
may 2011 | industry 2.0
to adopt Digital Prototyping workflows to achieve this goal.” The new Autodesk suite acts as a cost-effective design solution for creating compelling products. It includes Autodesk’s design, visualization and simulation software for manufacturers, which helps provide flexibility to innovate and more easily respond to changing business requirements from early concepts to detailed engineering and simulation. The Product Design Suite besides providing significant cost savings is easier to deploy, maintain and manage. There are three editions of the Product Design Suite, viz., Product Design Suite Standard, which is a foundational conceptual design and drafting tool for product design, featuring AutoCAD Mechanical, Autodesk Showcase, Autodesk SketchBook Designer, Autodesk Vault and Autodesk Mudbox software. Product Design Suite Premium, includes the Standard edition tools along with Autodesk Inventor and Au-
- technology management for decision-makers
todesk 3DS Max Design software, and Product Design Suite The Ultimate edition which features advanced surfacing, simulation and has the same tools as the Premium edition along with Autodesk Inventor Professional and Autodesk Alias Design software. Autodesk Factory Design Suite 2012, launched in 2010 and updated this year, is a factory layout and optimization solution that helps manufacturers make better layout decisions through the creation of a digital factory model, helping save time and money. It offers factory specific functionality in both AutoCAD Architecture and Autodesk Inventor, combined with Autodesk Navisworks’powerful visualization and analysis and Autodesk Vault to improve collaboration. New additions to the suite in 2012 include AutoCAD Mechanical for automating mechanical CAD tasks and 3DS Max Design and Showcase for enhancing communication and bids. Meanwhile, following the strategic partnership announced in October 2010, Autodesk and Granta Design have built new design methods into Autodesk Inventor 2012 software that help designers estimate a product’s environmental impact and make more sustainable design decisions. The new Eco Materials Adviser in Inventor 2012 helps address sustainable design requirements early in the design process enabling manufacturers to choose better materials. Powered by Granta’s extensive materials database, the Eco Materials Adviser helps guide material selection and generates reports so engineers can communicate the benefits of their sustainable design decisions.
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technology update
Joining Nanoparticles With Light
Researchers at the U.S. Department of Energy’s Argonne National Laboratory. (L to R) John Bahns, Subramanian Sankaranarayanan, Liaohai Chen and Stephen Gray
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W
Picture Courtesy: Argonne National Laboratory
For many years, scientists have searched for ways to assemble nanoparticles―tiny bits of matter less than a millionth of an inch across―into larger structures of any desired shape and form at will. This has recently been achieved using a laser to create an assembled, continuous filament.
hen Researchers at Argonne National Laboratory pointed a low-power laser into a solution of gold and carbon nanoparticles suspended in water they unexpected results. They found that the carbon nanoparticles decomposed or deformed to create a kind of ‘glue’ that enabled the creation of long gold and carbon chains that assembled continuously wherever the laser was pointed. This new technique for materials design, known as ‘optically directed assembly’ or ODA, could provide scientists and inventors with an uncharted route to new materials, technologies and even treatments for diseases. “It’s incredibly exciting to think about the vast world of technology that could result from people using ODA. This is just the very beginning; we really don’t even know yet all the things that might be possible,” said Liaohai Chen, who helped to develop the technology.
may 2011 | industry 2.0
The research leading to the discovery of ODA sought to develop new methods for imaging dynamic biological processes in living systems. “ODA provides a new way to encapsulate metal particles with inert carbon, which can be harnessed to generate imaging probes for studies of biological systems important to bioenergy research or medical diagnostics,” Chen said. “ODA opens a new avenue to synthesize a new generation of nanoparticle-based imaging probes (especially for the metal isotopes) and therapeutic agents with a simple, inexpensive, safer and greener (energy efficient) process” he added. “It could potentially help us find better materials that could be used in wide application spectrum ranging from catalysts, drug delivery to semiconductors,” said John Bahns, a co-researcher. The difference between ODA and other light-based experiments in materials design lies in the fact that ODA involves the creation of what Chen called a ‘structure within a structure.’ Rather than creating a completely continuous material like a sheet of aluminum foil, ODA forms a larger coherent structure from the individual nanoparticles. “You can think of it like going to the beach and pointing a stick at the sand, and then all of a sudden having pebbles gather and join together wherever you decided to point the stick,” Chen described.
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“The laser basically acts kind of like a pen, as opposed to a stylus, creating a thread of gold and carbon as it’s moved along,” adds Argonne nanoscientist Subramanian Sankaranarayanan, who collaborated on the research. “It surprised us that such a low-power laser could have such a big effect,” he muses. Sankaranarayanan and Stephen Gray of Argonne’s Center for Nanoscale Materials have also developed a predictive computational model of the ODA phenomenon. Optically directed assembly works because the laser heats up the spot onto which it is focused, causing a phenomenon known as ‘convective flow’ in which the solution travels around the hot spot. The action of the flow combined with laser heating brings the particles together, creating the filaments. The discovery of the ODA technique happened completely by accident. Bahns and Chen were investigating carbon in soil by using a technique called Raman spectroscopy. The researchers added gold nanoparticles to their sample because these particles are known to boost Raman signals. Because Raman spectroscopy requires the use of a laser, the researchers surprisingly found that gold-carbon chains would form wherever they moved the laser. “It looked almost like an Etch-a-Sketch,” Chen said. Based on the researchers’ observations, ODA can also provide a new way to encapsulate metal particles with inert carbon, which they believe will eventually allow for the creation of new probes that would investigate the uptake of different molecules by both human and plant tissues.
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market dynamics
Mobility Enhances Productivity A recent AMI research indicates that SMBs who have embraced mobility generated 40 per cent higher revenue growth over the last 12 months compared to those who did not. As the mobile workforce trend continues, mobile devices, including tablet PCs, will play an integral part in supporting these employees. Picture Courtesy: www.photos.com
“SMB tablet adoption has been highly fragmented across industries. We see the strongest interest in professional services, healthcare, hospitality and the media businesses. The early adopters realize the intrinsic value in having a highly mobile device that enables users to immediately access data, process information and respond accordingly. Firms that have embraced tablets are also increasingly moving additional resources to the cloud, increasing the utility of the tablet,” says Michael McDonald, Sr. Associate of Worldwide SMB Sizing for AMI-Partners. The AMI study has shown that firms with tablets use SaaS
SMB adoption of tablet PCs is expected to accelerate as broadband speeds increase and heightened competition drives prices down.
U
ntil recently, smartphones and notebooks have been the primary tools to process information wirelessly. Tablets are quickly stepping in as a complementary and capable device. But worldwide SMB tablet penetration remains low, about three per cent, and still has a long way to go before becoming a mainstream IT asset.
applications 20 per cent more compared to those without. As a content consumption device, the use of productivity suites and document collaboration tools is especially high in tablet firms. Hosted document collaboration usage amongst tablet users is more than double that of nontablet SMBs, while hosted productivity suite use is nearly 50 per cent higher. This steady move and reliance on cloud infrastructure and applications have put pressure on IT networking resources, namely bandwidth. The increased load on networks has led, in part, to tablet enabled firms increasing their bandwidth speeds, which are now over 10 per cent higher than firms without tablets. “SMB adoption is expected to accelerate as broadband speeds increase and heightened competition drives prices down. We expect average prices to drop nearly 50 per cent by 2013. The tablet PC has almost limitless potential in the SMB space—where the device can entrench itself as a valuable resource essential to the on-the-go businessman. The ability of manufacturers, software providers and service providers to adapt to the changing demands of business users will be critical to future success,” says McDonald.
Advertiser index Busy Infotech ..................................................... IFC
GW Precision ......................................................BC
Omoron Automation............................................60
CHEP .................................................................23
HAAS ..................................................................15
Powerbuild .........................................................27
Diesel .................................................5, 51, 53-55
Havell ..................................... 7, 31, 33, 35, 37, 39
S & T Engineers ...................................................25
Elcon ..................................................................19
Indiamart ........................................................... 17
Schneider ........................................................... 11
| industry 2.0 - technology management Exxonmobil ..................................................8-A, 21 forMitsubishi ............................................................3 decision-makers 18 may 2011
Taegutec ............................................................IBC www.industry20.com
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market dynamics
Changing
Social DynamicS SPawnS new OPPOrtunitieS Increasing aspirations, economic forces will shape the future. Greater urbanization, personal mobility technologies and error reduction will propel business trends. 20
may 2011 | industry 2.0
- technology management for decision-makers
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A
brave new world emerges according to Frost & Sullivan’s recent research, titled, ‘World’s Top Global Mega Trends to 2020 and Implications to Business, Society and Cultures.’ According to the analysis, sustainability was one of the major mega trends that shaped human, organisation and government behaviour in the last decade. The study forecasts health, wellness and well-being with a much wider definition than mere healthcare, which will include body, mind and soul as the most important factor of discussion and differentiation in this decade. It reveals that women empowerment will reach new heights, with one in three workers being a woman and up to 40 per cent of boardrooms in some nations comprising women by 2020. Besides, the world will also witness reverse brain drain, wherein the vast vacancies for CXOs in countries like India will be filled not only by returning Indians, but also by Americans and Europeans seeking better prospects. Says Sarwant Singh, Partner, Frost & Sullivan, “Frost & Sullivan defines mega trends as global, sustained and macroeconomic forces of development that impact business, economy, cultures, careers and personal lives, thereby defining our future world and its increasing pace of change.”
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He adds, “The unique feature of this Visionary Innovation Research Programme, lies in its ability to not only identify and evaluate emerging mega trends, but to also translate those opportunities to everyday business and personal life—the macro to micro approach. In other words, we are not just throwing out forecasts for the future, but showing organizations immediate opportunities and threats.”
Mega Trends 1.
Development of mega cities, regions and corridors
2. ‘Smart’ as the new green 3. geo socialization 4. innovating to zero 5.
Beyond BriC: the next game Changers
6. Space jam 7.
Personal robots
8. e-Mobility 9. new business models As per the report, there will be many interesting mega trends. First, future urbanization will drive integration of core city centres or downtowns with suburbs and satellite cities, resulting in expanding boundaries from the current average of 25 miles (40 km) to around 40 miles (64 km). There is a possibility, the report says, to witness the emergence of 30 mega-cities, 15 mega-regions and at least 10 mega-corridors with over
20 million people by 2020. Urbanization will lead to new hub and spoke business models for healthcare, logistics, retailing and many other functions, forcing organizations to re-think their ‘Urban’ business model. Mobility will redefine personal mobility in the future. Over 40 million electric vehicles, including electric pedal cycles, scooters, four-wheelers and buses will be sold annually around the globe in 2020. The opportunity in the e-Mobility market is not in making cars but in its value chain, batteries (including second life and recycling), charging stations and packaging innovative mobility solutions such as ’pay by electrons.’ The next level of social networking will focus on geographic services and capabilities such as geocoding and geotagging to enable additional social dynamics. User-submitted data with profiles and interests will be matched with location-based services to connect and co-ordinate with surrounding people or events. This type of geo-networking is expected to drive markets, businesses and individuals to interact, advertise and promote in real time. Another trend identified by Frost & Sullivan is Innovating to Zero. This trend examines a world of zero emissions, zero accidents, zero fatalities, zero defects, zero breaches of security and carbon-neutral factories.
industry 2.0
- technology management for decision-makers | may 2011
21
opinion
Automotive In the coming 15 years, the global automotive industry will undergo the greatest transformation it has experienced in its history, according to Roland Berger Strategy Consultants
Landscape 2025
F
ive megatrends, geopolitical change, changing demographics, sustainability, the evolution of mobility as well as changing technology, will cause a huge leap forward in the development of the automotive industry within the next 15 years. “The industry’s centre of gravity will shift,” says Wolfgang Bernhart, Partner at Roland Berger Strategy Consultants and coauthor of the study ‘Automotive Landscape 2025’. “Core technologies will change, new forms of organizational setup will emerge, employees will have to meet new requirements, and new business models will develop,” he adds.
Shift to Asia
A dramatic shift to the Asian markets will take place. Both production locations and sales will be affected, with a significant share of the customer base coming from Asia, requiring specific products
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may 2011 | industry 2.0
Since Electric power trains operate at high voltage levels (500 Volts), the European Commission wants to ensure that electric cars are safe and that consumers are protected against direct contact.
suited to their needs. “Because of this development about 300.000 jobs in Europe are at risk” predicts Bernhart. The shift to Asia will be intensified by a significant shortage of skilled labour in Europe and the US. Both economies will be forced to tap into additional resource pools of employees with diverse backgrounds.
Small and low cost cars
The demand in Asia supports low-cost cars as an important entry point as well as A and B segment cars. The small car segment will grow in mature markets too, where values are changing. With growing population sizes and increasing prosperity, overall car ownership levels will rise in the period to 2025. Growth in North America and Europe will not be as high as the global average rate of one per cent per year, but the desire for individual mobility in the BRIC (Brazil, Russia, India and China) markets
- technology management for decision-makers
will continue to grow, accounting for 83 per cent of future market growth. In China alone, car ownership is predicted to grow by 36 per cent annually. At the same time, cars will continue to lose their appeal for younger generations. “Starting in developed countries, there will be a radical change in values—for younger people cars will no longer be as much a status symbol as in the past,” states Philipp Grosse Kleimann, Partner at Roland Berger Strategy Consultants and co-author of the study. “In major urban areas, car ownership will become unnecessary, leading to an increasing trend of demotorization.” Mobility eco-systems will provide cars and other mobility sources on demand.
Electric vehicles and connectivity
Cars of the future will predominantly be electric, and one in two will have a fully or partially
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opinion electrified powertrain. Electric vehicles will account for about 10 per cent of new vehicle sales by 2025, hybrids will reach 40 per cent share, and internal combustion engines will still account for 50 per cent. “The growing overall share of electric drivetrains will reshape the current mobility value chain for OEMs and suppliers, but also for utilities and third parties,” states Bernhart.
According to the study, many vehicles will be permanently online, sending and receiving information via the Internet. Connectivity will be the key. Well before 2025, cars—or the customers’ mobile devices—will be accessing the Web directly for online (navigation) services. “What younger generations will be looking for in a car is a seamless integration with other means of mobility together and a hasslefree connectivity with their mobile devices,” says automotive expert Kleimann. “As a result of this trend the automotive industry will converge with other industries and a cross-industry perspective will be mandatory,” he opines.
New business models Many of the innovations first introduced by Mercedes-Benz have since become industry standards—from the rigid passenger compartment (patented in 1951, first implemented in series production in the 111-series “Fintail” models in 1959), to the ABS anti-lock braking system (introduced in 1978 in the 116-series S-Class) and the airbag (premiered in the 126-series S-Class from 1981), to the ESP Electronic Stability Program (presented in 1995 in the S-Class Coupé from the 140 model series). These days, such safety systems are standard fare for nearly all manufacturers.
With all these changes taking place in usage patterns and technology, new business models and value chain partners will emerge, challenging the status quo—especially where they come from sectors other than the automotive industry. “Automotive companies will engage in multiple partnerships as a way of accessing technology and customers and securing economies of scale,” predicts Roland Berger Principal, Marcus Hoffmann, the third co-author of the study. These new business models will not just be about selling cars but about integrating software and hardware.
Changing organizations
When Nissan’s planning and design team was asked to explore new forms of zero emission mobility that redefined existing segments, the result was a radical new vehicle. In creating the Land Glider concept, Nissan planners and designers have conceived a totally new form of personal zero emission mobility that combines clever, new driving experiences, all in the one compact, four-wheeled package.
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may 2011 | industry 2.0
Automotive companies will move away from centralized organizations in pursuit of size and access to fresh sources of engineers and other specialists. Instead, they will begin to operate glo/ cally, combining global reach with adaptation to local needs and regulations. Consolidation will continue among suppliers— while new Original Equipment Manufacturers (OEMs) are likely
- technology management for decision-makers
Key poiNTS ► A dramatic shift of production and sales to the Asian markets will take place, and as a result, 300.000 jobs in Europe will be at risk. ► Small and low cost cars will gain more and more importance. ► Electric vehicles will account for about 10 per cent of new vehicle sales by 2025, hybrids will reach a 40 per cent share. ► The connectivity of cars will be a key factor in 2025 and beyond. ► New business models will rise. ► Successful organizations will undergo structural changes and open up to partnerships. to emerge from both inside and outside the industry. Roland Berger has identified three scenarios based on the expected megatrends. Each scenario depicts the world in 2025 in an extreme way. • The high-tech scenario foresees a wide array of car features allowing drivers to stay connected to their network while driving, use the internet and personalize the man-machine-interface. • The budget scenario describes a world in which the purchasing power of customers is strongly reduced due to taxes and inflation combined with low income growth. Cars are less affordable, and the money spent on cars is in competition with other spending. • The sustainability scenario describes a world in which consumer behaviour is strongly influenced by regulations, legislation and tax, but at the same time by rating recommendations. Whichever scenario will come true, the key is for companies to remain open and flexible. “Companies have to face now the opportunities and challenges to make the journey ahead a rewarding one,” states Bernhart.
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opinion
“Process optimization needs innovation” Balaji Sahu, DGM - Technical, Amtek India, in an interview with Industry 2.0, shares his views on innovation and design in manufacturing.
processes. Of course, this standard must be updated from time to time. How can companies integrate design-driven innovation into their business strategy? A budget should be planned keeping in mind the short-term as well as long-term benefits.
Balaji Sahu DGM - Technical Amtek India
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How can companies create innovation that customers do not expect? What are the ‘secret ingredients’ for creating distinctive products that can dominate the market? By understanding the requirement—design performance parameters of the component and manufacturing constraints— along with variations of shortterm and long-term challenges of the manufacturing chain. A thorough understanding will reveal the absolute requirement, and can be engineered through innovation for better cost, quality and productivity. Also, internal manufacturing standards can be developed for both design and
may 2011 | industry 2.0
Innovation often calls for ambiguity and experimentation. However, manufacturing companies are usually good at optimization and process implementation. How can companies balance these two opposing needs? Process optimization also needs innovation, and it becomes easier with the support of design. So, it is never an opposing need. Fundamental and basic knowledge plays a key role in creativity and innovation. So ambiguity and need of experimentation purely depends on the potential of an innovative idea. Can software technologies help companies design better products or innovate faster? There is no doubt that software technologies help companies design better products, but practical innovative ideas come from manufacturing. This loop is missing and that is why software technologies are neglected or not fully utilized in many industries. Software technologies are ge-
- technology management for decision-makers
neric in nature and mostly do not consider manufacturing variations of a particular manufacturing set up. So, design software will always have limitations while considering for application in manufacturing practice with a thorough understanding of the criteria on which it works, a method can be designed to get better utilization. What are the challenges in developing a design and innovation culture in an organization? In our scenario, due to lack of basic knowledge and knowhow, integration takes a long time. But it can be planned and initiated with a clear vision. A process control engineering department can be created for the purpose of integration of design-manufacturing and handle variations management in the manufacturing chain. Another greatest barrier is transparency in technologies through supply chain. What should be the role of senior managers in an organization when it comes to design and innovation? What can be done to institutionalize product innovation? Senior managers should encourage team members to raise questions and clear any doubts. Discussions should be held to develop a learning atmosphere.
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cover story
Eagle Technologies used a sophisticated drive and control platform to improve output, durability and safety functionality of its power plastics welding machine.
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T
he traditional image of welding involves large pieces of metal and sparks flying as the welder applies the torch. However, welding small plastic parts involves joining them by pressure and friction in a precisely controlled automated process. One of the most challenging of these welding tasks is the production of fluid-filled plastic balance rings, used in balancing the wash load in a washing machine. Most balance rings begin life as two donut-shaped plastic pieces (about two feet in diameter), one of which is held in place while the other half is spun and pressed downward onto it. The compression
may 2011 | industry 2.0
- technology management for decision-makers
force and friction melts the plastic to form a leakproof weld. The spin stops at precisely the right spot so that slots for plastic baffle insertions and mounting holes for fasteners line up perfectly between the two halves—within a margin for error of less than one degree of rotation and less than two millimetres along the circumference. Using specialized power welding machines, fabricators for appliance manufacturers turn out thousands of balance rings a day using this process, producing each one in less than 30 seconds. At least, that’s the plan. In actual practice, however, problems can arise. One major appliance part fabricator recently found itself experiencing an unac-
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Putting a new sPin on
Plastic
welding
Redesigned power welder uses improved drive, control and linear motion technology to deliver greater reliability, reduced waste and less downtime.
ceptably high level of wasted materials and scrapped parts (about 15 per cent) due to leaky welds, misaligned slots or even collapse when too much pressure caused excessive melting of the plastic. Even worse, the low speed and high torque required for optimum results was putting enormous strain on motors, particularly since safety concerns required the power to the motors to be dropped out each time the operator reached into the machine—four or five times per minute. The parts fabricator estimated that motors for power plastic welders had to be rewired once per year on average, leading to significant expense and downtime. Finally, any changes in a manufacturer’s balance ring design resulted in the
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machine’s motion controller having to be painstakingly reprogrammed. To remain competitive, changes had to be made.
Power and control
Based on prior experience with other machines, the parts fabricator turned to machine designer and builder Eagle Technologies for a solution. Eagle, along with local automation distributor Morrell chose a drive, control and linear motion package from Bosch Rexroth for dealing with the unique challenges involved. The system promised intelligent servo drives, built-in safety functionality, motion logic control, motors, operator interface and
industry 2.0
- technology management for decision-makers | may 2011
29
cover story linear motion components to suit the machine design challenge. Eagle started off with the Rexroth IndraMotion MLD servo control platform, a SERCOS III Ethernetbased system that integrates the machine’s motion logic control directly in the drive without the need for separate PLC. The IndraMotion MLD serves as the heart of the new spin welder, providing a compact combination of motion and PLC functions in a single automation platform. The motion logic controller works with Rexroth’s IndraDrive digital intelligent servo drives and IndraDyn S synchronous servo motor to drive the spin welder’s three-stage planetary gearbox. This permits controllable low-speed, hightorque spin motion. The spinning welding head, driven by the IndraDrive and servo motor combination, moves up and down on a set of precision ball screws and ball rails that are mechanically coupled to the two shafts with individual timing belts. The accurate control and reliability of the ball screws and ball rails al-
The drive and control package enables operators to control every motion, speed and dimension parameter with a high degree of precision and consistency, resulting in precise welds for washing machine balance rings.
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low for powerful welding compression while avoiding flexing—eliminating yet another cause of leaky welds and wasted parts. The powerful torque and compression generated by the components are precisely controlled by the drive unit. This allows the machine to line up slots and baffles in the ideal ‘clock’ position required to make the two ring halves match. The force exerted by the downward compression can be calculated and controlled to exacting standards, precisely melting the plastic for a tight weld. Finally, the controller in the drive allows constant monitoring of motor speed, drive temperature, energy use and many other key factors.
may 2011 | industry 2.0
- technology management for decision-makers
ease of operation
The user-friendly human machine interface (HMI) allows operators to apply a full menu of parameters for each welding operation: motion, positioning, force, power usage and more. Adjusting to different parts requirements is accomplished through the HMI touchscreen instead of having to reconfigure the entire machine. The HMI allows multiple recipes to be stored with easy access to profile changes required for switching over products. The user was able to employ both ladder logic and structured text to program the machine. The programming language complies with IEC-61131 standards. In addition, a software oscilloscope enables rapid fine-tuning of motor and drive performance and monitoring of bus voltage, regenerative load, running torque and other parameters.
Higher operator safety
One of the most important challenges faced by the machine builder was to ensure safety in a machine whose operator must frequently reach inside the weld area to make adjustments and remove parts. The need to stop the entire machine (a sudden drop of 480 volts AC) when the operator reaches inside was a key factor in frequent motor burnouts. Rexroth offered an alternative that avoids this problem called Safety on Board. This relies on programmable safetybased logic, eliminating the need for lockout/ tag-out machine stoppages that place strain on motors. Integrated safety functionality is embedded in the servo drives, supporting safe motion functions without the need for external safety hardware. This reduces complexity, increases speed of response and protects the spin welder’s operators—while producing less motor wear and tear. Operator protection is therefore built right into the machine’s automation starting with the light curtain that separates the operator from the weld area. Rexroth servo drives respond to signals from the light curtain through dual, redundant safety channels that put the machine into one of two ‘pause’ modes, Controlled Stop 1 or Controlled Stop 2, where power is still fed to the machine but motion is stopped. This protects operators performing various tasks, after which the equipment is easily restarted without having to reset the entire machine.
Efficient PLC integration
The integration of motion logic into the drive offers big improvements over the earlier machine; saving
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space and reducing design and build time for Eagle Technologies. “Usually a weld machine design starts with a PLC and then the designer builds out from there,” says Earle Cooper, project manager for Eagle Technologies. “Rexroth’s IndraMotion MLD lets us start with control of two axes already built into the servo drive, so we could focus on a wide array of options for creating different types of welds and parts.” During the design phase of this new welder platform, the client worked with end-users to determine the power requirements and the production parameters involved.
Matching production and performance
With the new power welder the end-user realized an immediate improvement in the efficiency and productivity of their balance ring production. Scrap material dropped from 15 per cent to less than one per cent, which translates into an enormous productivity gain because fewer parts are discarded due to leaks, improper welds or damage. The consistent control of motion and clock position, is a large reason
One of the challenges of the machine
design was to ensure safety since the operator must frequently reach inside the weld area to make
adjustments.
for this, but the machine is also more mechanically sound and less prone to flexing during the weld. The machine’s HMI makes it easy for operators to “capture” the parameters of a perfect weld and spin profile, then repeat it time after time. This includes final positional rotation control to less than one degree, which maximizes product quality. It’s also easy to reprogram the machine to accommodate changes in parts or weld specifications. These improvements have been realized without compromising productivity (the total time to finish each balance ring is less than 20 seconds) or operator safety (the safety system conforms to EN954-1 Category 3 safe and supports new ISO 13849 standards). Best of all, the problem of motor wear, burnout and failure has been virtually eliminated because the new motors and drives are designed to work together, and the drives that can be paused instead of shut down when an operator reaches inside the machine. This allows high compression forces, high torque, rapid acceleration/deceleration and low rpm to co-exist peacefully. “We still don’t know exactly how much longer the motors are lasting than before,” says Cooper, “because none of them have required any repairs.”
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industry 2.0
- technology management for decision-makers | may 2011
31
materials & processes
“Engineering plastics is one of the fastest growing industries in India” Rhodia Group recently established Rhodia Polymers & Specialties India, following acquisition of PI Industries’ engineering plastics business. The move is part of the company’s expansion plans to double its local production capacity and to achieve 15 per cent market share in the Indian polyamide compound market by 2015. Frank Laganier, Asia Pacific Zone Director, Rhodia Engineering Plastics, in an interview with Reshmi Menon, sheds light on the company’s plans and the engineering plastics industry. Excerpts... What are the immediate plans for Rhodia? Our immediate plans are to invest in equipment and people to reinforce the capacity of Rhodia Polymers & Specialties India (RPSI) to serve the market and capture opportunities. One of the short term targets is to start production of the Technyl range of products in the plant at Panoli (Gujarat), in order to make Rhodia’s products available to the Indian market. At the same time,
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may 2011 | industry 2.0
we plan on continuing to develop former PI ranges (such as PIETHER, PICARB, ESCOM, among others) so as to provide full and well adapted solutions to our customers. Rhodia is eyeing a 15 per cent market share in the Indian polyamide (PA) compound market by 2015? How do you plan to achieve this? Rhodia’s current market share for PA compounds is in the single digit range, so this represents a significant growth. However, we are confident this can be achieved very quickly as the acquisition of PI Polymer will change the position of Rhodia in India radically, and change our situation from an importer, supplying from
- technology management for decision-makers
Frank Laganier Asia Pacific Zone Director Rhodia Engineering Plastics
overseas plants with very limited local resources, to that of a local player fully committed to the Indian market. Former PI customers that were so far supplied only with nonPA material will now have access to the Technyl range. Several of them have already expressed their interest in sourcing PA material from the newly born RPSI. In addition, with the strong signal given by that acquisition, many tiers and OEMs in India have started looking at Rhodia in a new—much more interested—way. Finally, with a local presence and an efficient logistic network, Rhodia is now able to serve customers that were not accessible from overseas (smaller unit deliveries, quick response to customers demands).
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Any plans to upgrade the Panoli facility? Yes, Rhodia has already started to invest in the facility to improve safety (access to plant) and reliability (power supply). Furthermore, we have launched studies to add one production line that will be operational within one year. In addition, we are studying further capacity increases, as well as improvement of our warehousing capabilities. Where does the Indian market figure in the growth expansion plans of Rhodia? India is a key element in the strategy of Rhodia. As Jean-Pierre Clamadieu, CEO of Rhodia, declared last December, “India represents a huge potential for the Group and is to be the new priority to accelerate our growth.� As a consequence, Rhodia is actively involved in several projects for further acquisitions in India. As to Rhodia Engineering Plastics, while further acquisitions are not out of the question, we will focus first on developing our new industrial base in Gujarat. Two-digit growth is expected from the Indian market, which will contribute to the ambition of Rhodia to generate more than 1 billion euro of sustainable EBITDA by 2013. How would you describe the growth of the engineering plastics sector? Engineering plastics is one the fastest growing industries in India. With per habitant consumption still very much lower than the average in other countries, India has a potential for exponential growth in this sector. Usage of engineering plastics is still restricted, at the moment, to very traditional applications, but we can already detect the emergence of new requirements. On top of a potentially strong domestic demand, the growth of this industry is also driven by more exports, as India is becoming a production hub for many products using engineering plastics (in the automotive and electricity sectors in particular). What are the challenges faced by this industry? There are several challenges, which at the same time present great opportunities for India. Among those, electric power cuts are still limiting potential outputs of production plants. As regards the automotive industry, the growth of domestic demand may be limited both by the purchasing power of the Indian population, as well as by still insufficient infrastructure. High interest rates are also an obstacle to faster growth. What are the new trends in the engineering plastics (EP) sector in India? We can detect more interest for metal substitution, especially within the automotive industry, for which polyamide engineering plastics is the material of choice. Local OEMs are seriously considering more usage of engineering plastics in their design of new models. In the electrical and electronics industry, thermoset replacement with thermoplastics is driving an increase in EP usage. Specialty engineering plastics, such as special fire resistant grades, are being increasingly sought after.
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industry 2.0
- technology management for decision-makers | may 2011
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information technology
Emerging Need Of Information Security In SME Segment
A written Information Security Policy and Procedures will help SMEs in addressing the information security at organizational, operations, information and technical levels. by swati jog
A
common misconception among business owners is that IT security guarantees information security. However, information security is not limited to IT alone. It is an effort to secure the three pillars of any organization viz. people, process and technology. Small and Medium Enterprises (SMEs) dealing with larger organizations have to comply with the infosec norms—only because it might be a statutory requirement of the latter implying that SMEs do not do this willingly. Let us begin by examining the SMEs’ position in our economy. SME can safely be called the backbone of the Indian economy. The SMEs’ contribution to India’s GDP stands at seven per cent
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while 40 per cent of gross industrial value added in the economy is contributed by SMEs. Thirty five per cent of the country’s industrial exports are from SME segment. Currently, there are over 11 million SME units in India that produce more than 8000 products and this sector is expanding at an exceptional rate. In this backdrop, let us examine the importance this illustrious segment gives Infosec. Most of the SMEs are family run businesses. SMEs have more of a reactive approach towards information security than a proactive one. This does not mean that the owners are not aware about various new age info sec threats. The problem arises when this knowledge does not translate into taking preventive measures. From
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the information security perspective, most of the SME owners are contended with the fact that they have a firewall and an updated anti-virus in place, again an attempt to secure their IT. They also feel that they would not be targeted by hackers as they operate on small scale. The limited financial feasibility of SMEs makes it difficult to make too many security demands. Probably that is the reason why information security features at the end of the management’s agenda. It is commonly seen in SMEs that an employee from business operations side handles the additional responsibility of system administrator, or a single employee handles IT and administrative functions of the entire organization. In all probability, their knowledge in one of these domains is limited. Another such scenario is when most of the employees are given open access to the Internet.
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Chain mails, downloading free/ trial versions of attractive softwares is a very common phenomenon. Remote access is often given to many employees without taking necessary precautions. Most of the employees would have access to data, which they otherwise do not have the privy to view. An organization is filled with information to its brim. It has information on its tenders to be filled, potential clients, service providers, employees etc., such information is all the more valuable to an SME because of the size of the firm. An organization, which is in its growth stage cannot afford to lose such vital information. Loss of information could be loss in terms of confidentiality, integrity and availability (C-I-A). The image indicates the security requirements where the business risks of C-I-A apply. Confidential information is usually restricted to a specific number of recipients. When such information is available to unauthorized users, the confidentiality of that information is breached. When certain information is retrieved, it should be in its original form, i.e., the form in which it was stored. If the accuracy and authenticity of the information is compromised, the information could have an adverse impact. Critical information would be of no use if it is not available when it is needed. Availability of information is as important as its confidentiality. The third link in information security chain is that of people, i.e., the human assets of an organization. An important security lapse often neglected by the SMEs is industrial espionage. Industrial know-how is the driving factor of any SME. It is not difficult for any former employee or existing disgruntled employee to use it to start a competitive industry. In the absence of appropriate security measures, a ready database of customers, suppliers, etc would be easily available to the miscreants. As mentioned at the offset of this article, many SMEs are involved in servicing larger corporates. In the wake of numerous corporate espionages, most of the larger corporates make an initial information security audit mandatory before allowing any vendor aboard. This is followed by regular audits to ensure the safety of confidential information. This process would be easier if the SMEs adopt a formal infosec structure and keep it up-to-date. Having realized that a large chunk of the critical information of larger corporates is, in fact, with the SMEs, in coming days, the hackers would be targeting these smaller business organizations. This eye opening fact makes it all the more imperative for SMEs to pull up their socks. To conclude, the link between the business strategy and information security should be realised by the SME owners. Equally important is the support they receive from their employees. Clear understanding of threats that are addressed by new restrictions would surely help in creating awareness and getting wholehearted support of the employees. Swati Jog is a Consultant in Information Security at Mahindra SSG.
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industry 2.0
- technology management for decision-makers | may 2011
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manufacturing technology
Monitoring And Analyzing
Machine Vibration
RS engineer using machine evaluator
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V
ibration analysis has become one of the most important tools in the industry today to evaluate rotating machine condition. When it comes to driven equipment (pumps, fans, compressors), there is no better method of assessing a machine’s condition short of a teardown. As part of total maintenance requirements, a vibration analyst can quickly determine the condition of the machine’s bearings, alignment, balance and general ‘health’.
may 2011 | industry 2.0
Vibration monitoring programs
There are two basic configurations of vibration monitoring programs—Continuous Monitoring Systems (CMS) and portable data collection. The CMS units are used primarily on critical machinery that has substantial downtime costs. As the name implies, they continuously monitor the vibration levels of a single machine or a small group of machines. The vibration sensors are permanently mounted on
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Understanding the benefits of vibration analysis of rotating equipment helps reduce downtime, increase safety and lower maintenance costs. by jeff teter
the machine(s) and transmit the signal to a PC through an A/D converter. The sensors can be connected to the A/D via direct wire, wireless or plant ethernet using specialty interface equipment. The PC often has outputs to a PLC with alarming and/or machine trip capabilities. The portable data collection method utilizes a battery-powered, handheld instrument that can be carried from machine to machine. The instrument, called a vibration analyzer, is wired directly to the accelerometer, which typically has a magnetic base allowing it to be easily attached to the machine bearing housing. This location provides the best transmission path from the rotating element to the sensor. The analyzer has various data sets that are pre-programmed and are chosen to match the machine’s parameters, such as RPM and overall vibration level. While these data sets vary from machine to machine, the same set is used consistently for a given machine, allowing for an apples-to-apples comparison of data taken at different times. The vibration data is downloaded from the analyzer to a PC to be reviewed by the vibration analyst, who determines the proper corrective action to be taken, if any.
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Units in vibration analysis
Before analyzing some vibration problems, it is important to first look at the units commonly used in vibration analysis. They are displacement (mils), velocity (in/sec) and acceleration (g’s). Displacement readings have poor signal response at mid- and high-range frequencies (see Figure 1) and limit the types of problems that the analyst can detect. Therefore, displacement is used primarily for balancing. However, velocity provides a valid signal for the low- and mid-range frequencies, and is the best parameter for looking at coupling issues, a loose condition, or unbalance. For example, if a machine has a bearing spall on one of the races, there will be an impact as each rolling element passes over the spall, similar to a car tyre passing over a pothole. Since this impact has a short duration, the movement of the bearing housing is minimal. If an analyst is looking at the displacement or velocity of the bearing housing, the analyst is not going to be able to detect this impact. However, there can be a substantial amount of force involved with the impact. Newton’s Second Law states that force equals mass times acceleration (F = ma). One can measure the acceleration of the bearing housing, and indirectly, the force involved with the impact. Acceleration is the preferred parameter of measurement when dealing with problems that have a short duration (and therefore, high frequency) such as bearing faults, gearing problems and motor/electrical defects. The unit for an acceleration reading is ‘g’s’. The earth’s gravitational pull is 1 g, and this measurement is a ratio of that constant. A vibration reading of 3 g’s would be equivalent to 3 times the gravitational constant. Consider a vibration reading on an unbalanced fan. Due to the unbalance, the bearing housing rocks back and forth from left to right. It is not difficult to envision the sine wave pattern, or waveform, that the bearing housing travels through. Unfortunately, real waveforms are complex and are composed of many sine waves of different frequencies. Since recognizing a machine defect from this complex waveform would be impossible, the vibration analyzer performs a Fast Fourier Transform (FFT) on the waveform and converts the data to a frequency vs. amplitude plot, commonly called a spectrum. As a vibration problem develops, the amplitude of the vibration shown in the spectrum will rise. If the fan builds up some dirt on one of its blades over several months, the running speed vibration would increase with time, producing a rising vibration trend. Since a rising trend properly reflects the degradation of the equipment, and is easily understood, the trend is the analyst’s most common tool to indicate vibration problems to maintenance and operation personnel. It is preferred over absolute values since the amount of vibration is dependent on the machine defect as well as the stiffness of the machine support. For example, a machine on the second floor is going to vibrate more than one on a concrete base. When a trend
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manufacturing technology
FigUre 1: Displacement versus velocity versus acceleration frequencies response is not available, an overall peak velocity reading of 0.25 in/sec or less is desired for typical machinery. If the equipment is involved with product quality, such as machining, the acceptable level of vibration will be substantially lower. Some resources that list acceptable vibration levels for various machines are the ISO Standard 10816 and the General Motors’ Vibration Standard (in process of being developed). After reviewing some of the nomenclature, various vibration problems can be examined. The unbalanced fan that was previously discussed produces a waveform that has a frequency equal to the turning speed. Using an FFT to convert this waveform to a spectrum yields a single peak at turning speed (see Figure 2). This is typical of a machine with an unbalance condition. Since bearing supports are usually stiffer in the vertical direction than in the horizontal, the highest vibration readings are typically in the horizontal direction. Virtually all OEMs and rebuilders are aware of the importance of a good balance job, so new or rebuilt machines with unbalance are uncommon. However, fans commonly experience blade erosion and dirt build-up, so periodic cleaning and field balancing is required. It should be noted that a bent shaft has a centre of gravity that is offset from the centreline of the shaft, giving it
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the same vibration signature as an unbalanced condition. Another source of machine problems involves the coupling. For example, if weight is removed from the unbalanced fan and a locked coupling that has angular misalignment is added, as the shaft begins to turn, the motor is going to be pushed to one side and the fan to the other. As the shaft rotates 180 degrees, the fan and motor will be pushed in opposite directions. As the shaft continues to turn, one would observe that the motor and shaft are always moving in the opposite direction of each other. The two components are ‘out of phase’. If the two components were moving in the same direction at the same time, they would
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be ‘in phase’. It may help to think of a time trace of the three phases of electrical current. Each of the phases is 120 degrees apart. In the spectrum, coupling problems are evident by vibration at twice the running speed, with one and three times running speed sometimes accompanying it (see Figure 3). Another common source of vibration is what analysts refer to as ‘looseness’. This loose condition may be external or internal. External examples would be loose bearing housing bolts, loose base bolts or a weak or deteriorated machine base. The vibration spectrum would see this defect as vibration at running speed and possibly several of its multiples. As an example, if the running speed is 3,560 rpm, the spectrum would see vibration at 3,560 cpm and possibly 7,120 cpm (2 x 3,560) and 10,680 cpm (3 x 3,560). Internal looseness would be the loss of a proper ‘fit’ such as a loose locking mechanism on a bearing ID, excessive clearance between the bearing housing and the OD of the bearing, or a loose impeller on a shaft. The spectrum will show running speed vibration with many multiples.
FigUre 2: Spectrum displaying unbalance
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FigUre 3: Spectrum displaying a coupling defect Anyone who has struck a tuning fork realizes that the tuning fork ‘rings’ at a particular frequency. Different tuning forks give off different sounds due to their vibration or resonation, at different frequencies. Unfortunately, rotating equipment also has resonant frequencies. Each piece of equipment has different frequencies at which it naturally vibrates. This can be very destructive if a machine is allowed to operate at its resonant frequency. Probably the most famous case of resonance would be the failure of the Tacoma Narrows Bridge in 1940. The bridge deck, driven only by the wind, began to oscillate vertically and, within a matter of hours, major portions of it lay in rubble in the water below. Through the use of FEA, the OEMs of rotating machinery are able to determine resonant frequencies before the first unit is built, and are able to make modifications during the design stage to avoid having a natural frequency close to the operating speed. However, equipment that was once designed to operate at a steady speed may now have Variable Frequency Drives that operate the equipment through a range of speeds. A pump that was designed to operate at a steady 1,200 RPM may now operate anywhere between 800 and 1,200 RPM. If that machine is resonant at 900 cpm, machine excitation will occur. A machine that operates smoothly at low and high speeds, but vibrates excessively at a ‘medium’ speed is likely experiencing a resonance condition. Curing this condition can be a large undertaking since machine and/or structural modifications are required. Typically, the most economical solution is to program the drive to avoid operating near the resonance speed so that the machine runs through it quickly. Jeff Teter, P.E., is Senior Reliability Engineer, The Timken Company.
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manufacturing technology
“Our quest for value added solutions helps foster innovation�
Harish Joshi Managing Director Nichrome India How did this (HFFS machines) concept develop? India being a low cost economy; the balance of cost v/s convenience was always in favour of cost. But with the continued growth in economy and international exposure; the consumer preferences are undergoing a change. Having established ourselves in the vertical form fill seal (VFFS) market; we felt the need to diversify our technology base to offer value added packaging formats. Hence we started looking out for technology partners. Why did you choose TOTPACK? Nichrome was looking for a specialist partner in HFFS technology who would be willing to support with technical upgrades over a long period of time. We wanted a partner who would assist us in absorbing this technology fast.
Nichrome was looking for a specialist partner in HFFS technology who would be willing to support with technical upgrades over a long period of time.� 40
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Nichrome India recently entered into a technology licensing agreement with Spain-based TOTPACK to manufacture and sell Horizontal Form Fill Seal (HFFS) machines, which extend re-closability and pourability for packaged products. HFFS machines are highly automated and offer a variety of pouch formats like Stand up pack (Doypack), Zipper pack and Spout (cap) pack. One can now zip up the pouch or close it back with a cap and store or smoothly pour juices into a glass with a spout. Harish Joshi, Managing Director, Nichrome India, in an interview with Reshmi Menon, throws more light on this new packaging technology and its growth prospects in the Indian market. Excerpts: ToTpack provided all of these. The company also wanted to associate with us for future growth. Can you explain the benefits of HFFS? In horizontal machines the web moves horizontally and the product falling height is lower. There are multiple filling stations available, which makes it possible to fill multiple ingredients into the pouch. With the horizontal machines; you can make the pouch stand up, or attach a spout or zipper to it. one can also make contour or shaped pouches. Horizontal machines are more effective for small and medium pack sizes. What changes are being made at your Shirval plant (at Pune) for manufacturing these machines? We are ramping up the installed capacity to build the machines, and also the research and development facility. How do you foresee the growth of these machines in India? We see a good market poten-
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tial for these machines. So far a proven European technology at an appropriate price was not available in the Indian market. Nichrome is filling this gap. With the growth in retailing, this sector should register an impressive growth in the years to come. How does Nichrome encourage and develop innovation? Nichrome has been a pioneer in providing packaging solutions at regular intervals of time. We developed first milk pouch packing machine, electronic weigh fillers for tea, machines for coffee, stick pack machines for milk powder sachets, micro dosing for pharma, aseptic solutions, seeds packing machines, flexi block for grains, high speed oilpack and many more. This has helped our customers to grow their brands in volumes and reach. our continuous quest for value added solutions helps foster the environment of innovation and originality in our company. We devote substantial budgets for R&D and application development.
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innovation & success
Advanced Software Provides A Competitive Edge
Uflex Engineering Division achieves 70 per cent reduction in development time for packaging machines PLM software.
U
flex Engineering Division, a unit of Uflex Limited, designs and manufactures printing, packaging and converting machines. These machines are used for cutting and packaging large production materials, usually roll stock, into smaller, more usable sizes and shapes. When the company decided to upgrade its 2D computer aided design (CAD) system to an advanced 3D solution, it chose Siemens PLM’s Solid Edge software for its design and research and development (R&D) departments. The software helped the company reduce the number of design errors, which in turn resulted in reduced rework on parts and assemblies. “We are now able to manufacture and deliver more machines,” said Ravi Sharma, Senior Vice President, Uflex. Highlighting the visualization capabilities of Solid Edge, Sharma noted, “When we
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create a digital assembly of a machine, we can find problems, such as interferences, that we would have missed when we were using 2D drawings.” The company is now able to demonstrate virtual machines created in Solid Edge to customers and at trade shows. The software has also helped the company create bill of materials (BOMs) quickly from the information in the 3D assembly models.
Reduced development cycle
Following the implementation of the software, Uflex reduced the development cycle for new machines by 70 per cent. This in return helped ensure on-time delivery of machines. It also helped in the company’s bottom line through a reduction in costs facilitated by the drop in rework. The company was even able to lower the prices of new machines.
The other benefits that the Solid Edge software suite provided were accurate cost estimates, increased product quality and higher levels of innovation. Uflex is now designing and delivering packaging equipment that preserves, protects and displays products, as well as packaging lines that operate at among the highest production rates compared to its worldwide competition. “The way to being a worldclass player is paved with stateof-the-art facilities blended with world-class practices. It is our endeavour to be among the top ten international players,” said Sharma.
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management & strategy
Using ‘people data’ to create value
By analyzing the links between people practices and productivity, some companies are improving their bottom line. by nora gardner, devin mcgranahan and william wolf
H
uman-resources executives have aspired to be strategic advisers to business leaders for at least a generation. But it’s been a struggle for many because it’s so difficult to measure the business value of HR approaches. Questions such as “What is the Return on Investment (ROI) of training?” and “Which screening techniques yield the best performing recruits?” or “What target-setting approach will best motivate per-
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formance?” have been met with imprecise answers. Today, however, new tools and methods for analyzing data enable HR to define the link between “people practices” and performance more effectively. This couldn’t have happened at a better time, since CEOs are hunting for value anywhere they can find it. The upshot: if you and your head of HR haven’t recently discussed ideas for using data to generate a talent strategy that’s
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more closely linked to business results, it’s time to start. Why now? For starters, the wide-spread adoption of enterprise resource planning and HR information systems has made data on business operations, performance, and personnel more accessible and standardized. Furthermore, the rise of HR information systems has generated a community of software and technology intermediaries that can help HR and business executives use data to find links between talent management and labour productivity. Finally, the consolidation and outsourcing of transactional HR work
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has compelled many leaders of the function to take a first step toward quantifying and reporting HR costs and performance. These trends, coupled with the universal imperative to get more for less, have led some companies to discover new ways of using HR analytics to create value. The Bon-Ton chain of more than 280 department stores in the United States, for example, leveraged its data to identify attributes that made cosmetics sales reps successful. Now it screens potential reps using a test of cognitive ability, situational judgement, initiative taking, and other relevant traits. Those who score in the top half tend to sell 10 per cent more product than the others and tend to like their work more. Since 2008, the chain has seen an increase of $1,400 in sales per representative and 25 per cent lower turnover among them. Other pioneers are emerging, particularly in industries where people are central to value creation (notably banking, health care and retailing) and where scarce technical expertise governs growth (such as technology and upstream oil exploration). While the specific people-related practices that add value will differ by company—industry dynamics, talent scarcity, growth rates, and corporate cultures all influence the answers—the organizations that we’ve seen get the most value from investing in HR analytics all use some variation of these four steps.
Focus business priorities
Most HR teams view, organize and measure their activities through the traditional employee life cycle: starting with recruiting, hiring, and ‘on-boarding’ and proceeding to evaluation, training, and development. For HR analytics efforts to work, however, the function’s leaders
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must view problems—and value creation opportunities—as business leaders do. Executives at Pittsburghbased PNC Financial Services, for example, suspected that their tendency to pick experienced outsiders over internal candidates in hiring decisions might be hurting the bank: once hired, the outsiders were too often viewed as lukewarm performers. So in 2009, PNC’s HR team partnered with colleagues from the company’s marketinganalytics group to analyze the sales performance, over several years, of external hires versus people promoted from inside. What the team found confirmed the suspicions: in a number of key job categories, internal candidates were significantly more productive in their first year than experienced external hires. In subsequent years, the outsiders narrowed—but never closed—the gap. Millions of dollars in value were at stake. It’s unusual for business or HR leaders to spot pain points such as these on their own. Typically, a strong partnership is crucial for identifying and prioritizing issues that intertwine people challenges and business results. PNC’s team, for example, asked line executives what they saw as the highestvalue opportunities for improving talent management. From these discussions, the analytics team distilled a top-20 list of business questions and hypotheses to test, such as “What is the business impact of training investment?” and “Is there an optimal distribution of performance ratings?” The PNC team then ranked the resulting list of issues by their expected business impact and the feasibility of conducting meaningful analysis. “This is where HR has the chance to prove itself,” says Jay Wilkinson, PNC’s new HR vice
A strong partnership is crucial for identifying and
prioritizing issues that intertwine people challenges and business results. president of analytics. “Better than coming to [business leaders] with tired best practices, we’re asking them how they define success specific to their business, and that provides the context for our analysis and recommendations.” Google is another company with an HR team that partners with business leaders seeking analytic insights. According to Prasad Setty, head of Google’s people analytics group, “We are looking to inform decision makers with data so they can be as objective and bias free as possible.” Setty’s team has, for example, provided business executives with a systematic approach to reassessing provisionally rejected candidates. The team’s analysis of profiles that lead to success at Google helps it identify potential false negatives and to revisit these candidates. This technique has helped the company “save” many hires it would otherwise have missed.
Start with what you have
Quantitative problem-solving
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management & strategy skills may be hard to come by in the HR department. Therefore, senior executives who are eager to begin should push their HR leaders to draw in analytical resources wherever they exist. All that’s required is the ability to engage business leaders in efforts to identify issues and structure problems in a nuanced way and then to follow through with advanced data gathering and statistical analysis. Retailers, for example, typically entrust analytics to store operations analysts who understand the high priority the business places on containing labour costs. PNC’s capability emerged from its marketing-analytics group. Other companies lean on finance or strategic planning. Most pull the necessary people into the HR function over time, as PNC did in the course of a year when it
HR analytics succeeds when human-
resources and business
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decided to build a specialized HR analytics department. And remember: many analyses can be conducted using existing data and systems. Some work may be needed to match payroll data or training-attendance rosters with sales performance results, for example, but creative, persistent analysts can answer most business questions without new, sophisticated, or costly tools.
Go beyond traditional HR solutions
New insights often require additional problem solving to go from theory to practical solutions. HR analytics succeeds when humanresources and business leaders work together to address the root causes of problems and to pilot new ways of solving them. Google, for example, did a study to examine whether good managers matter—and, if so, how—within Google’s specific culture. Setty explains that “through various methods, we found positive relationships between good management and retention and the performance of teams. We then conducted double-blind interviews to identify the key behaviours exhibited by our best managers. We found eight behaviours that make a good manager and five pitfalls to avoid. These are now incorporated into our manager-training programmes and coaching sessions, and teams provide feedback to managers on these behaviours to help them understand where they’re doing well and where they can get better. The vast majority of our lowerrated managers have improved as a result.”
business and HR rhythms. Several companies, for example, have established a routine of having HR or other “people strategy” staff join business reviews to identify priorities for analysis. This practice helps senior line executives conduct problem-solving discussions around HR-related issues and to plan for action as findings emerge. HR analytics practitioners must also commit themselves to the habit of measuring and reporting on success. At financialservices giant ING, for example, business units and HR share a comprehensive dashboard, supplemented by regular reports, to show progress on key metrics. Similarly, a global oil giant’s people-strategy group reports progress at four stages of a project’s development: data gathering, analysis, developing solutions and piloting. This approach helps HR and business leaders understand that progress is happening even when stages may take weeks or months to complete. It also provides a clearer understanding, in both directions, of changing priorities and emerging findings from the work. Advances in technology are creating opportunities for senior business and HR leaders to start a new kind of dialogue about the link between people and performance. That dialogue will help HR executives demonstrate the impact of their work and achieve their goal of strategic partnership with other members of the senior-management team—and, of course, it will create value for the enterprise. Nora Gardner is an associate principal in McKinsey’s Washington, DC, office, of which
Make it stick
Once a company has a few successes with HR analytics, it can build a lasting source of value creation by integrating analytics practitioners into its day-to-day
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William Wolf is an alumnus; Devin McGranahan is a director in the Pittsburgh office. This article was originally published in March 2011 on The McKinsey Quarterly, www.mckinseyquarterly.com. Copyright 2011 McKinsey & Company. All rights reserved. Reprinted by permission.
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management & strategy
“Companies should look at recruiting as an ongoing strategic initiative” Niyati agarwal Senior Vice President Rainbow Papers
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Finding and retaining the right candidates is a growing challenge in the Indian manufacturing industry, owing to causes like high paying IT jobs, attraction towards white collar jobs and tendency toward accepting jobs abroad. In a tête-à-tête, Niyati Agarwal, Senior Vice President, Rainbow Papers, discusses with P. K. Chatterjee prominent trends, pain-points and solutions in HRM for manufacturing organizations. Excerpts... industry 2.0
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management & strategy How much importance is being attached to human resource management (HRM) in Indian manufacturing industries these days? Is it turning into a critical business consideration? HR processes contribute to the development of the organization, and they can help in building the sustainable competitive advantage. HR management can contribute to increasing the employee satisfaction, and it can help in enhancing performance and productivity. Manufacturing companies are constantly striving towards technological enhancements and expansion. A large part of this growth is supported by the Human Resources department
People are the biggest asset. Every business activity, small or large, is dependent on the quality of the person hired to perform the job.” of these companies, who are responsible for hiring the people with the knowledge to bring new technology into a company. To be successful in the market, manufacturing firms today require a highly skilled, flexible and committed work force, a flexible and innovative management, the ability to retain developed talent, and a strong partnership between management and labour unions. To achieve these goals, every company needs a capable HR department. Besides hiring the right people to manage and perform specific jobs, HR managers have to build up commitment and loyalty among the workforce by
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keeping them up to date about company plans, and laying out the implications for job security and working conditions. This is why HRM has become a critical business consideration. How hard is it to get and retain the right people? First of all, companies look at recruiting as an ongoing strategic initiative, and not as a reactive event to fulfill an immediate need. Companies should consider the ‘HR Department’ as playing a key role in training, staffing and helping to manage people—so that people and the company are performing in a highly fulfilling manner at maximum capability. The rate of change facing companies has never been greater. Companies must absorb and manage change at a much faster rate than ever before. Both large and small companies must ensure that they recruit, train and retain the right people capable of delivering top performance to implement a successful human resource strategy. The right person for the job needs more than just skills. It is often not the employee’s skills that set him apart, but rather his ability to thrive in the company’s environment. What are the ways to reduce employee training and skill development costs? The simple and most cost effective means of training is on-thejob training. The employee is trained while at work. Further, training costs can be reduced by leveraging technology. Instead of sending employees for training programmes, online web-based tools and tutorials can be used. Also, instead of outsourcing the training to outside agencies, engage the company employees— train one another through various learning sessions. This would also reduce employee training costs.
- technology management for decision-makers
How is IT helping identify the right talent? The process of recruitment has changed drastically from the earlier days. Once focused on automating and improving process efficiencies, organizations are now, more than ever, looking for better ways to secure the best hires that can help drive business results. Social networking, unknown even a few years ago, has changed the way recruiting works and recruiters are seeking the best way to utilize this new medium. Technology offers many solutions to workflow issues, and automation of good processes can streamline effort and cost—but, ultimately, it is people who make the hiring and evaluation decisions, and manage the staff. Technology offers companies, large and small, the means to organize vast amounts of data, and hopefully, provide clear work paths for the managers and recruiting professionals. Automation and electronic communications have resulted in faster decision making cycles. What are the ways to prevent employee attrition? The first thing is to hire the right people for the job, and retention will improve. Ultimately, people are the biggest asset. Every business activity, small or large, is dependent on the quality of the person hired to perform the job. Managing the expectations and setting clear goals for all employees is the next step. Referrals for new employees, strong employee morale and pride in their work will follow. Frequent and direct communication with employees is a key success ingredient. Employee surveys and 360-degree feedback should be automated and any uncovered opportunities for improvement should be acted upon promptly. Staff management should encourage feedback from their em-
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Employee motivation can be kindled through satisfaction, i.e., creating a positive work atmosphere that attracts, focuses and keeps talented employees. Satisfaction is further enhanced by the ‘right person, right job fit’. Appreciation, inspiration and recognition also go a long way in developing a sense of motivation. Last but not the least, a factor which needs to be considered and constantly reviewed is compensation.
ployees to determine levels of job satisfaction and to better identify potential problems early. What are the advantages and drawbacks of hiring staff through consultants? Hiring through consultants has been very popular off late. Organizations get access to a large data bank of employees for various posts. With a larger talent pool available, the chances of success will definitely improve. On the minus side, well there are no guarantees of 100 per cent success. Recruited candidates may not deliver the desired results. Further, the cost of hiring through consultants should be considered since it may be sizable. How can you kindle motivation among employees? Not all employees respond to the same motivation tricks. Each person has his or her own likes and dislikes, passions, interests and desires. The key is to
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Frequent and direct communication with employees is a key success ingredient.” identify what motivates each employee, and learn how to leverage those motives to simultaneously fulfill the goals of the organization, as well as the goals of each employee.
What is your advice to HR managers? Just a few general suggestions. First and foremost, let recruitment of a candidate always be a pro-active strategic measure, and not a reactive measure to a vacancy. Right person for the right job will go a long way in managing expectations, reducing attrition and creating a motivated work force. The target is to create a mature workforce, whose goals are in line with the organization’s goals and the growth of the organization remains the common motive.
industry 2.0
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facilities & operations
“Machine tool producers are showing progressively more interest in additive manufacturing” If you’re building a house, you’re hardly going to mill rooms, doors and windows out of a huge block of stone. When it comes to machining housings made of metal, however, this is the norm—for the time being. The EMO Hannover 2011 will be opening up the shop window for additive manufacturing a little. Andrzej Grzesiak talks to Walter Frick about the potential of this technique.
Andrzej Grzesiak heads the Fraunhofer Additive Manufacturing Alliance at the Stuttgart-based Fraunhofer Institute for Production Technology and Automation (IPA)
What advantages does additive manufacturing have for producing complex geometries? The salient advantage of layerforming processes is that any shape that can be created in a 3D CAD program can actually be produced. There are no restrictions in terms of manufacturing transparent or hollow structures. Nor are there any problems with complex geometries and freeform designs. Additive manufacturing has usually been reserved for making models and prototypes. Where are the practical applications for series production? We’re only at the very beginning of developments. New, improved materials and more stable processes are being developed. Nonetheless, we’re already
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seeing the first best-case applications with implants, dental technology and light automation components. Individualised mass production is up and running almost everywhere in these fields. We’re also seeing new applications in aircraft manufacture, where metal-based lightweight construction using titanium is set to play a particularly large role. Are there any limits to creative design freedom—will traditional design guidelines be rendered obsolete? Direct, fast manufacturing by means of additive processes, thanks to its well-nigh limitless freedom in terms of shape and design, enables customised, optimum products to be created. By virtue of the geometric freedom provided, and the high elastic-
- technology management for decision-makers
ity of the material involved, it is possible to manufacture snap-fit connections, complicated formlocking elements, spring-force connections and geometries like leaf springs or helical springs. This means fewer parts have to be mounted or connected with tools. This is something design engineers need to learn. Where do you see the main application categories for additive manufacturing—medical technology, mechanical engineering, tool and die construction, aerospace? All these fields are of interest. We draw distinctions here not by sectors, but by applications. In all of them, individualised mass production for specialised parts and components can be achieved at affordable prices.
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What role does additive manufacturing play nowadays in automated process chains? None as yet. Although the integration of new manufacturing methods into industrial process chains offers far-reaching options for optimising production operations, due to the lack of organization and the stand-alone machines the implementation is not very far advanced. With minimal batch sizes and the elimination of assembly processes thanks to complete manufacture, there
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is potential for streamlining, though this, of course, has to be supported by the correct organization. Additive manufacturing enables certain problems to be solved in conventional production structures, though the integration of these systems in the triangular matrix of time/costs/quality is being rendered rather difficult by the lack of comprehensive production models. How about the reproducibility of the processes involved and quality assurance in mass production? Are there any dependable methods of simulation? The reproducibility of the processes involved is a principal focus of ongoing development work, and will have to be achieved over the next few years. The subject of quality is dealt with in VDI Guideline 3405, entitled ‘additive manufacturing processes.’ There are numerous research projects running at the moment, as well as in-house development work at the equipment producers, who then address the issue. Can additive manufacturing entirely replace conventional processes? No, nor should this be the goal of development work. The right approach is to define the correct application categories and to replace existing conventional technologies only where commercial and technical advantages
Picture Courtesy: Fraunhofer IFAM, Bremen
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Picture Courtesy: Fraunhofer ILT, Aachen
Which of the various methods for additive manufacturing has the best prospects for broad based industrial adoption? You shouldn’t compare the various technologies directly. Depending on the particular application being planned, you have to choose the appropriate technology. This is also important for newcomers: first the application, then the technology. Nowadays, the laser systems are being used especially in the field of end-part production. In future, printing technology systems will be used more and more, particularly in micro-systems engineering and biotechnology. There’s going to be a lot happening here in the next three to five years.
Picture Courtesy: Fraunhofer ILT, Aachen
Are there any differences in the user target groups—between micro-systems engineering and forging-die production, for example? Yes, simply because quite different requirements are posed for the engineering and the materials involved. Quite different technologies will be used here, too. It’s important not to introduce additive manufacturing techniques everywhere, but first to comprehend what the customers actually need. This will enable additional markets like biotechnology to be successfully penetrated as well.
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are to be gained. The technologies should co-exist and complement each other. So, there’s no risk that additive manufacturing will replace conventional machine tools! You should never say ‘never’, but I don’t think so. Both technologies simply have their own advantages that can be selectively utilised. There are, however, certain fields, such as dental prosthetics, in which the machine tool will in my estimation be replaced over the next few years. Against this background, what do you expect from the upcoming EMO Hannover 2011? The major machine tool producers are showing progressively more interest in additive manufacturing. In the final analysis, every machine that processes and produces workpieces is a manufacturing machine. Whether this is to be done with a laser or a mill head will be a matter of choice.
industry 2.0
1 Selective Laser Melting (SLM) can be used to make metal components with geometries of great complexity.
Built up layer by layer: This partial replica of a human jawbone illustrates fabrication of hollow structures. 2
Medical implants can be produced through Selective Laser Melting (SLM). 3
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supply chain & logistics
3PL Choosing the right
Identifying a suitable logistics service provider can significantly enhance efficiency, improve customer service and reduce waste. by pavan v
Service Provider
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ith growing impact of globalization, there is an increasing pressure on companies to achieve efficient supply chains. Manufacturers across all the sectors and industries are utilizing the services of integrated service providers who can help them rationalize inventory management and manage non-core activities.
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Most large organizations outsource logistics activities to a third party/company whose core competency is to provide a one-stop solution. The reasons for outsourcing are many, varying from cost reduction to competency and concentrating on company’s core activities. It is important that companies carefully evaluate the 3rd party model before out-
- technology management for decision-makers
sourcing activities because they may end up in spending more!
Making a choice
There are several 3PLs in the country, from multinationals to proprietorship companies. Consequently, the service portfolio and capabilities of a 3PL may vary. Generally, 3PLs may perform few or all of the following activities:
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• Transportation (includes milkruns, long distance transport, etc) • Warehousing (kitting, binning, trading, etc) • Distribution • Returns management • Reverse logistics • Order management • Procurement and planning • Customer service The truth is that most companies have a preferred vendor and the selection becomes more relationship-based rather than formal procedure. Some of the parameters that one needs to look at before selecting of the right 3PL are:
• Review the 3PLs company vision and mission statements—To know the direction the company is planning to head towards.
B. Tactical • Ensure that the 3PL has experience of working in similar type of business • Look into the performance report with other clients • Verify the infrastructure—Own offices / franchisee: This may affect the quality of the operations. • See the technology: Usage of ERP / stand alone applications, RFID, GPS, etc • 3PLs environmental policies • Corporate Social Responsibility (CSR) towards the society • Ensure it has certifications that are required
C. Operational
Main stakeholders for an outsourcing company.
A. Strategic • Examine the balance sheet for the last three years to understand the credibility of the company in terms of financial transactions • Check the company’s assets in terms of own fleet, warehouses, material handling equipments etc • Verify the Memorandum of Articles of the company to know the details of the board. • Investigate Network coverage. 3PL is expected to have a network across the sectors where the organization is currently operating and plans to do so in the future. • Check the list of customers and their feedback
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• Transport fleet strength • Routing • Lead times • Different mode of transports • Operational strengths based on sector, country etc • Committed performance standards It is also a good idea to do your own survey to understand if you are in line with market trends and the services provided.
Summary
The selection of the right 3PL can have a long-term impact on your organization. The right 3PL has to work towards becoming a business partner by saving time and money, increasing efficiency for your organization. Pavan V is Officer - Corporate Logistics Department at Bosch Limited, Bangalore.
industry 2.0
Uncertain Global Economy Continues To Impact 3PLs
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apgemini in collaboration with the Georgia Institute of Technology, Panalpina and eyefortransport has brought out the 15th annual study of 3PL industry developments. The study examines critical trends and issues in important markets for customers in the 3PL industry. The key findings of the study are: • Uncertainty about the global economy continues to impact logistics spending and use of 3PLs. Respondents devote an average 11 per cent of their companies’ sales revenues to logistics, and an average of 42 per cent of that is directed to outsourcing of logistics services. That is 10 to 15 percentage points lower than in recent years, and may mean that on an average, shippers were able to scale back their expenditures for 3PL services faster than they were able to scale back their total logistics expenditures. • 65 per cent of shipper respondents report an increase in use of outsourced logistics services; these shippers may have increased outsourcing in comparison to insourcing, but their overall spend on 3PLs may have decreased due to a number of factors. Both shippers and 3PLs report some consolidation of 3PL usage. • A healthy 89 per cent of shipper respondents view their 3PL relationships as generally successful. Leading contributors to this success are openness, transparency and good communication, agility and flexibility, and an interest in gainsharing and collaboration. However, a persistent gap between the ratings that shippers and 3PLs assign to various aspects of the 3PL-shipper relationship should be an eye opener for 3PLs. • The study reports a narrowing down of the IT Capability Gap―the difference between shippers’ view of the extent to which IT is a necessary element of 3PL expertise, and their satisfaction with 3PLs’ IT capabilities. • Shippers continue their tendency to outsource transactional, operational, and repetitive activities and less so those that are strategic, customer-facing, and IT-intensive, despite the large portion of 3PLs offering many or all of the services covered in the survey.
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supply chain & logistics
Improving
Inventory Management Global supply chains and contract manufacturing are increasingly making traditional inventory management practices obsolete. This often neglected area of business could benefit from greater attention from users. by rajshekhar roy
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- technology management for decision-makers
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new Aberdeen Research report, entitled “Technology Strategies for Inventory Management: How to Convert Inventory from Cost to a Competitive Advantage,” examines why manufacturers are taking a closer look at inventory management practices and the technologies that are currently available. Nearly two-thirds of respondents told Aberdeen they have been asked by management to provide recommendations in the past six months on how to improve their inventory management technology. A majority is looking at inventory as a cost-related item (63 per cent), but 27 per cent of companies are thinking of inventory as a way of gaining market share through superior service and product availability. While implementing an inventory system is a great step forward in keeping up with transfers into and out of the inventory, as part of the ongoing dedication to managing resources with the greatest degree of efficiency, it is necessary to check on how well the system is working. That means taking time to evaluate the performance level of several key functions within the system and adjusting those functions as needed.
Measuring success
To measure the success of any inventory system, it is necessary to periodically evaluate key performance indicators. Since the exact structure of inventory systems will vary slightly from one situation to another, it is important to measure the level of performance as it relates to the goals and general operating procedures of
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the company. However, there are a handful of key performance indicators that are useful in almost every situation. The first group of indicators has to do with how well the inventory system is helping the business meet, and possibly exceed, the expectations of customers. The system must be capable of accounting for everything that is currently in finished goods inventory, including what was produced in the latest completed production cycle. This will optimize the chances of pulling units for customer orders in a timely manner, and notifying the shipping department that the order is ready to be released. A successful inventory system makes it possible for the company to shorten the lead-time for order fulfillment by speeding up the process of identifying and removing from inventory the items that are needed by the customer. An improvement in the average lead-time in the period just before a new inventory system is implemented when compared with the most current period means that the system is functioning properly. Measuring the efficiency and success of an inventory system also involves examining how well the process helps in placing orders with suppliers and vendors. Ideally, inventory software should be capable of adjusting the ordering quantities and delivery lead-time to match the current performance of the suppliers. If not, there is a good chance that the system will flag an item for reorder too late to keep the production process running smoothly. The result is downtime for the production departments, which costs money.
A solid inventory system makes it possible to strike a good balance between the stock that is on hand and the stock that is needed to operate the company efficiently. This is very important, as maintaining a high inventory means paying more taxes (waste of storage space, maintenance costs and potential obsolescence of the inventory) in most cases. When the system is capable of providing data that makes it possible to keep the inventory within a given range—and is capable of flagging items for obsolescence when applicable, the system is successfully and competently managing the inventory—while still minimizing the amount of taxes. When some aspect or function of the inventory system is not working at full efficiency, there is the need to take immediate action. In some cases, this will be a matter of making a few minor changes to the software. However, if the
industry 2.0
A robust inventory system makes it possible to strike a good balance between the stock that is on hand and the stock that is needed to operate the company efficiently.
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supply chain & logistics It is possible to manage inventory so that profits are maximized and costs are minimized.
Buying correct quantities
Efficient inventory management will allow a company to stock a sufficient quantity of product to efficiently meet customer needs.
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inventory system is limited and too rigid to allow for occasional refinements, it is better to look for a new system that will meet the company’s needs.
Managing efficiently
Learning to manage inventory efficiently and correctly will allow a company to stock a sufficient quantity of product to meet its customer needs. Not enough inventory causes delays and is bad for business. Excessive inventory costs business money. A business only makes money when its stock is sold; maintaining inventory until it has sold incurs expenses, that include: • Interest on loans used to purchase goods • Cost of storage space • Cost of moving stock • Cost of time spent managing the inventory • Cost of damaged or stolen inventory • Maintenance costs • Cost of obsolescence • Cost of rejection due to exceeding the expiry date of the inventory A large amount of a business’s money may be tied up in inventory.
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It is necessary to maintain the proper variety and quantity of inventory to satisfy the target market. At the same time it is important to not get caught with an overstock of obsolete items. To do this, it is necessary to know: • What product to order • How much product to order • When to order the product • When to expect the products to arrive • What quantities of product should be in stock during the business cycle • When reorders should no longer be submitted • When products should no longer be in stock This knowledge is acquired through analysis and experience:
- technology management for decision-makers
• Make sure suppliers are reputable and will provide products in the quantities required. • Study lead times for supply and delivery to ensure ordering at the correct time, or determining the delivery time for the customer if additional products have to be ordered. • Do not overbuy just to take advantage of special supplier deals. • Review buying plans weekly and adjust as needed. If inventory is selling or being used faster than expected, look to source more products as soon as the trend is spotted. • Establish stock levels (minimum, maximum and at what point to re-order). The easiest way to manage inventory is with a computer inventory management system. The time required to accurately manage inventory will be minimized by using one of these systems:
Purpose of Inventory Management
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nventory management must tie together the following objectives, to ensure that there is continuity between functions: • Company’s strategic goals • Sales forecasting • Sales and operations planning • Production and materials requirement planning Inventory management must be designed to meet the dictates of market place and support the company’s strategic plan. The many changes in the market demand, new opportunities due to worldwide marketing, global sourcing of materials and new manufacturing technology means many companies need to change their inventory management approach and change the process for inventory control. Inventory management system provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and communicate with customers. Inventory management does not make decisions or manage operations, they provide the information to managers who make more accurate and timely decisions to manage their operations. Source: Indian Institute of Materials Management
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• Point-of-sale terminals—automatically updates computerized inventory levels • Job costing and inventory systems • Barcodes and barcode readers allow inventory to be input and stock takes to be completed quickly • Electronic supplier product catalogs allow inventory details to be loaded automatically either via the Internet or CD/DVD Once it is ensured that the stock management system and its reports accurately allow managing inventory: • Remove all goods from the system as soon as they are sold. • Check regularly to make sure the stock system is accurate against physical stock quantities with spot checks and stock takes. • Review stock reports weekly and identify products that are not selling so that appropriate steps may be taken.
Inventory control
Inventory control means keeping the overall costs associated with having inventory as low as possible without creating problems. This is also sometimes called stock control. It is an important part of any business that must have a stock of products or items on hand. Correctly managing inventory control is a delicate balance between having too much and too little. The costs associated with holding stock, running out of stock, and placing orders must all be looked at and compared in order to find the right formula for a particular business. It is impossible to have an unlimited supply on hand, for a
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number of different reasons. Many businesses simply don’t have enough money to keep excessively large inventories. There are costs associated with purchasing the items as well as storing them, and having too many products leads to further losses when they don’t move off the shelves. At the same time, there are issues when there isn’t enough stock on hand. One common problem is running out of inventory, which is caused by trying to reduce inventory costs too much. This is something that no business wants, but it happens to virtually all of them at some point. Even the largest store runs out of certain products from time to time when they sell or use more than they expected. This can cause financial losses since inventory is not available for customers to purchase. Part of inventory control is trying to minimize shortages so these are rare occurrences. Most businesses expect they will have shortages on occasion and they have calculated that the small loss is worth the money saved by not having an overstock. Another important element of inventory control is called reorder point. Businesses need to think ahead and calculate the best time for reordering products. Doing too soon may cause financial difficulties or running out of space. On the other hand, waiting too long to reorder will result in a shortage and running out of inventory before the next shipment arrives. When figuring out a reorder point, it is necessary to calculate how long it will take the shipment to arrive and the amount of demand for a particular item. The overhead costs,
fees, and shipping expenses of ordering large versus small quantities should also be considered. Inventory control is an ongoing process that is rarely, if ever, executed perfectly. Experience, expertise and practice help people to make the best decisions regarding stock, but there are always unknown circumstances and variables. Stores can make good estimates about how many of a specific product they will sell, but they get things wrong from time to time. This is unavoidable. Inventory control can break a business if it is executed poorly, because either expenses will be too high or customers will get tired of dealing with shortages and find another place to spend their money. Inventory management has a tight connection to many economic factors, and impacts the production decision. These economic factors need to be explored and researched for efficient performance. This will even ensure consistency in the supply chain, and can result in win-win situation for both the producers and the consumers.
Inventory control means keeping the overall costs associated with having inventory as low as possible.
Rajshekhar Roy is CEO, Four Soft.
industry 2.0
- technology management for decision-makers | may 2011
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product update Data Radio
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anner Engineering has launched a new multi-hop data radio that extends the reach of the company’s SureCross wireless systems by repeating transmissions in 3 km ‘hops’ to a multihop total of 20 km or more. Multiple units can be placed to allow signals to pass over hills and other obstacles that would block a single wireless hop. The new product can be used to connect a wide variety of field devices directly, including PLC’s, controllers, HMI’s, DCS’s, transmitters, level, pressure and temperature sensors. It allows extension of the Modbus communication protocol to many applications where wiring is impractical because of distance or accessibility. The product is suitable for applications like irrigation, automated parking, coal, power generation, oil and gas, grain
handling, metalworking, water and wastewater treatment, facilities monitoring, factory automation, chemical processing, cement, mining and material handling. The large wireless network enabled by the new radio provides information to users in a wide range of industries. In irrigation, soil moisture can be measured, zone valves can be operated and flow rate measured. More traditional applications include tank level, pressure, flow and temperature monitoring in a variety of markets. Using the new product, clusters can be combined and connected to create systems with 2,400 wireless points. For even larger systems, multiple wireless networks can co-exist in the same physical area without interference.
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cmevac has launched direct drive oil sealed rotary high vacuum pump that can be directly mounted on the motor flange. The pumps are light, and have high pumping speeds and water vapour tolerance. The oil consumption is extremely low and the product is air cooled. The pump is suitable in industry and laboratories for production of medium and high vacuum. They can also be used for pumping of gases. They can also be used as backing pumps in series with roots blowers and diffusion pumps. The pumps find applications in vacuum coating, molecular distillation, vacuum metallurgy, freeze drying, vacuum impregnation, air conditioning and refrigeration, vacuum lifting devices and packaging machines. They are offered in capacities up to 300 LPM and vacuum up to 0.002 Torr. Acmevac Sales Tel: +91-22-28375837 E-mail: acmevac@vsnl.com Website: www.acmevac.com
Nichrome Resistance Wire
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rennan Industries has introduced its new Brennan Black coating for advanced protection against rust and corrosion. The proprietary Bi-LENE coating includes a blend of fluoropolymer, engineered plastics and selected corrosion inhibitors tailored to provide specific properties for particular applications. The properties comprise low friction, strong adhesion, resistance to wear and abrasion, corrosion, chipping and elements such as weather, sunlight and salt water. Field and laboratory tests show the coating resists corrosion past 1,600 hours of exposure.
pplied Plastics has launched a new line of nichrome resistance wire coated with teflon for use at high temperatures. The Teflon coated wire provides a non-stick surface in a variety of plastics and packaging processing applications, and is capable of 260°C continuous and 316°C intermittent use. The product is supplied on spools from stock in standard 0.457 mm, 0.508 mm and 0.914 mm sizes. The wire is suitable for applications such as packaging, sealing, shrink wrapping, plastic sheet and styrofoam cutting and acrylics bending equipment. Besides, the Teflon-coated Nichrome wire is expected to outlast plain nichrome resistance wire and prevent melted plastic from building.
Brennan Industries Tel: +1-440-2481880 E-mail: sales@brennaninc.com Website: www.brennaninc.com
Applied Plastics Co Tel: +1-0781-7621881 E-mail: davering@appliedplastics.com Website: www.appliedplastics.com
Banner Engineering India Tel: +91-020-66405624 E-mail: salesindia@bannerengineering. com Website: www.bannerengineering.co.in
Black Coating
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High Vacuum Pump
may 2011 | industry 2.0
Have you LAUNCHED an INDUSTRIAL PRoDUCT recently? Why don’t you share its FEATURES and FUNCTIoNALITy with the Readers of this magazine?
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Just send a detailed report to: editor@9dot9.in Don’t forget to attach a high resolution image.
product update Gas Sampling Monitor
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Suspended Permanent Magnets
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riez has launched CP 20/80 suspended permanent magnets, for applications requiring uninterrupted tramp iron removal on heavily burdened, fast moving belts. The new product utilizes a permanent magnet circuit to provide a continuous and uniform magnetic field across the feed belt to optimize separation efficiency of damaging tramp iron. The magnet can be easy installed and is supplied with a self cleaning belt that provides for automatic removal of accumulated tramp metal. The unit removes large tramp metal from 30 inch (762 mm) maximum belt width at 10 inch (254 mm) maximum suspension height. It measures 9.2 inches (234 mm) x 29.5 inches (750 mm) x 32.9 inches (836 mm) and weighs 2,313 lbs. (1,049 kg). Eriez E-mail: eriez@eriez.com Website: www.eriez.com
Enmet Tel: +1-734-7611270 E-mail: info@enmet.com Website: www.enmet.com
Survey Instruments
Sigma Mixer
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lpha Process Engineers has launched Alpen Sigma mixer, which is suitable for medium to high viscosity solid-liquid media. The new product is a relatively power intensive, slow speed mixer wherein materials experience stretching, folding, dividing and recombination in the course of mixing and kneading operations. The mixer has a twin blade configuration, which rotates in opposite directions, either tangentially or with a certain amount of overlap. The product is offered in a variety of blade configurations like conventional sigma ‘Z’, double Naben, dispersion and multi-wiping overlapping. The design of the product helps minimise leakage. Close tolerances between blades and walls help ensure faultless mix. The machine is offered in a compact and maintenance-friendly design. The principal benefits offered by the product include short mixingtimes with efficient mixing, minimal product hold-up, low-operating costs, high energy-efficiency with attendant low-energy costs. Besides, the product features double-ended drive transmission through hardened gears. Jacketed versions with heating arrangements are also offered. The unit is available in different models with batch capacity of 50 to 1000 litres per batch.
Alpha Process Engineers Tel: +91-44 –28111351 E-mail: apeepa@vsnl.com Website: www.alphaprocessengineers.com
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nmet has introduced a new Gas Sampling Monitor (GSM) with internal pump and sensors, and which accepts additional inputs from remote sensor/transmitters. The new product can be custom configured to monitor a variety of conditions, including VOCs, CO, CO2, oxygen, as well as many toxic and other gases. The instrument has a user-friendly interface for all maintenance and operation functions, and is protected by a compact and durable enclosure for process environments. The unit is suitable for applications in medical, pharmaceutical, aerospace and process manufacturing industries. Besides, it can be used for monitoring ductwork, tank headspaces and scrubber exhausts.
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osch Power Tools has launched its new range of survey tools under its brand CST/berger. The product range includes rotary lasers, theodolites, total stations and magnetic locators. Used for levelling work, ranging between `50,000 and `1,00,000, rotary lasers such as ALVH and ALGR enable dual-slope setting up to ±10 per cent and accurate to 1/100 per cent. Optical levels like PAL22D and PAL24D priced between `15,000 to `20,000, and theodolites like DGT10, priced at `1,00,000, cater to the requirements of surveying and levelling. Total stations like CST 302 R and CST 305 R, priced at `5,00,000 are suitable for stake out, data collection on construction sites, and for cartography and topographical applications. The range also includes pipe lasers priced at `3,00,000, which offers an accuracy of ten arc seconds. The new range comes along with a comprehensive range of accessories, including tripods, rods and prisms, and measuring wheels to assist surveyors. These accessories are available between `5,000 to `40,000. Vijay Pandey, Vice President, Bosch Power Tools India, says, “The new products represent precision and accuracy and have been introduced to optimize efficiency and productivity in the surveying segment. These tools considerably increase Bosch Power Tool’s expertise in the construction and land survey sector.” Bosch Tel: +91-80-22999279 Website: www.bosch-pt.co.in
industry 2.0
- technology management for decision-makers | may 2011
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product update Portable Measurement Arm
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ARO Technologies has introduced the FARO Edge, an advanced portable measurement arm that allows manufacturers to verify product quality by performing inspections, tool certifications, CAD-topart analysis and reverse engineering. The new product helps improve production, quality and reverse engineering processes by rapidly verifying or scanning parts. The device features an integrated personal measurement assistant. With its built-in touchscreen and on-board operating system, the unit provides standalone basic measurement capability. The additional areas of enhancement and capability include Bluetooth, WiFi, USB and Ethernet connectivity. Multiple device management is possible through networking; smart sensor technology warns against excessive external loads, corrects for thermal variations, and detects possible setup problems; Improved weight distribution and balance reduces strain. Patented internal counterbalancing provides comfortable, stress-free use. FARo Technologies Tel: +91-11-46465644 E-mail: amrita.gokhale@faro.com Website: www.faroasia.com
Drum Emptying Pumps
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ichael Smith Engineers has added a new product to its Finish Thompson range of drum emptying pumps. The EFS Series pump in stainless steel, is suitable for pumping corrosive chemicals, light oils, caustic cleaners, solvents and other challenging liquids in many industrial applications. The new pump is available with a choice of two-speed splash-proof electric or variable speed air motors, which have CSA or CE certifications. The product features a 316SS tube and shaft, with tube lengths of 16”, 27”, 40” and 48” (41 cm, 69 cm, 102 cm, 122 cm), which makes it suitable for most sizes of tanks, drums and carboys. The unit is applicable for light to medium duty and provides flow rates up to 64 LPM at discharge pressures up to 6 metres.
KeMotion Packaging
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EBA has launched KeMotion Packaging, which makes automating packaging processes in pick-and-place and palletizing applications quick and easy. The main focus of the product is integration of robots, vision systems and conveyor belts as well as configuration and rapid programming of the entire machine and robot application. Robotics, PLC and HMI are joined together through the integrated control concept. This helps in synchronisation of the whole packaging process. Besides, the system helps in increased machine productivity and reduced system complexity. KeMotion Packaging accelerates palletizing cycles to 15 packages/ minute. Both simple and complex packaging patterns are supported. KEBA AG Tel: +43-732-709022600 E-mail: sales_a@keba.com Website: www.keba.com
Water Generation System
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eolia Water Solutions & Technologies has launched PURA, a packaged purified water generation skid for the cosmetic, animal health, generics and the pharmaceutical industries. The water generation system produces purified water (PW) according to the latest US, European and Japanese Pharmacopoeia standards by using safe sanitisation methods and deionisation technology. PURA skids include a standardised design, fully pre-assembled and pre-tested before delivery, making installation an easy
plug-and-play process and facilitating minimum on-site disruption. Hot water sanitisation (HWS) is the prefered sanitisation method, which kills bacteria in a purified water system. The product features hot water sanitisation from the multi purpose tank to the electro deionisation module (CEDI) at 85°C/185°F for hundreds of cycles. Veolia Water Solutions & Technologies Tel: +33-0-1-45115555 Website: www.veoliawaterst.com
Michael Smith Engineers Tel: +44-0-1937-548305 E-mail: info@michael-smith-engineers.co.uk Website: www.michael-smith-engineers.co.uk
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may 2011 | industry 2.0
- technology management for decision-makers
www.industry20.com
product update Diaphragm Pump
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dson International has launched a new portable, variable speed electric double diaphragm pump, for a variety of industrial and process applications. Model 2500 is rated for 25 GPM, and can transfer liquids with solids up to 1-inch diameter with low emulsion and no shear. The unit is self-contained and equipped with a push-button start-stop and a programmable variable speed drive. The selfpriming pump eliminates air consumption and air valve maintenance issues. The product uses one piston that drives both diaphragm pumps, each equipped with its own check valves. The unit runs on single- and 3-phase and can be operated remotely. It has a PVC body, polypropylene wetted parts, and the two diaphragms can be reconfigured to operate independently. Edson International Tel: +1-508-9959711 E-mail: peter@edsonintl.com Website: www.edsonpumps.com
Vacuum Homogeniser
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lpha Process Engineers has launched Alpen vacuum mixer, which is suitable for fluid, semi-fluid, viscous pasty, creamy products and ointments. The product is suitable for pharmaceutical products, cosmetics, toiletries and chemicals (like shoe polish, car cleaners, silicone rubber-based sealing compounds, textile dyes and pigments, inks). The new machine performs multiple mixing functions simultaneously. The multi-agitator system is available in a 3-in-1 configuration, with the range of agitators that include emulsifier, homogeniser, disperser, toothed colloid mill, sinus mixer and scraper stirrer, depending on the mixing ingredients and functions to be carried out. The mixers are available in stainless steel construction and in capacities 30 litres to 2,000 litres. Besides, they are also offered in jacketed versions with working temperatures upto 150°C, operating pressures from atmospheric to full vacuum. Alpha Process Engineers Tel: +91-44-28111351 E-mail: apeepa@vsnl.com Website: www.alphaprocessengineers.com
Automated Rotary Table
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obotic Automation Systems has introduced a new direct drive automated rotary (turntables) table for automated box or tote filling systems at the end of plastic injection moulding machines, or other automation applications. The new product employs a direct drive motor with torque monitor, eliminating tensioning and maintenance. The units are available in three standard sizes, 36”, 48” and 60” diameter, to meet application needs. An optional polycarbonate turntable cover is also available to eliminate part contamination. The easy-to-program rotary table can operate on a count
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Vaculift
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cmevac Sales has introduced Vaculift, a vacuum lifting and transporting device, which can be hooked to a crane or hoist. The new product helps reduce handling costs, times and labour costs. The device can be used for lifting and transporting of flat objects such as steel plates, copper plates, aluminium plates, marble/granite and laminated boards. The items are held in position by vacuum, and use of the device helps eliminate lashing. Vacuum Technology (I) Tel: +91-22-28375837 E-mail: vacutec@mtnl.net.in Website: www.acmevac.com
signal from the plastic injection moulding machine, a robot, or a weigh hopper, and can be programmed to fill different box or shipping container sizes and shapes. Robotic Automation Systems Tel: +1-800-9379827 Website: www.roboticautomationsystems.com
industry 2.0
- technology management for decision-makers | may 2011
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TaeguTec India P Ltd. Plot Nos.119 & 120, Bommasandra Industrial Area, Phase 4, Bangalore 560 099, India Tel: +91-80-2783-9111 E-mail: sales@taegutec-india.com http://www.taegutec-india.com
R.N.I. No. MAH ENG/2001/4796 Tech/MH/MR/SOUTH-127/2006-08