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editorial Vol. 08 | Issue 11 | june 30, 2009
Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: R Giridhar
Managing Vendor
Correspondent: Satish Chavan Sub-Editor: Reshmi Menon Design
Risks
Creative Head: Kabir Malkani Art Director: Rohit A Chandwaskar Chief Designer: N V Baiju Illustrators: Shrikrishna Patkar, Ashwini Baviskar Photographer: Jiten Gandhi Sales & Marketing VP Sales & Marketing: Naveen Chand Singh General Manager: Nabjeet Ganguli National Manager - Events & Special Projects: Mahantesh Godi Business Manager - Engagement Platforms: Arvind Ambo (09819904050) Assistant Brand Manager: Arpita Ganguli Co-ordinator Ad Sales: Aatish Mohite Bangalore: Sanjay Bhan (09341829285) Coimbatore: D K Karthikeyan (09843024566) Delhi: Pranav Saran (09312685289) Kolkata: Jayanta Bhattacharya (09331829284) Mumbai: Ganesh Lakshmanan (09819618498) Production & Logistics Sr. GM Operations: Shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP Singh, Mohamed Ansari, Shashi Shekhar Singh office address Nine Dot Nine Interactive Pvt Ltd C/o KPT House, Plot 41/13, Sector 30 Vashi (Near Sanpada Railway Station), Navi Mumbai 400703 For any information, write to info@industry20.com For subscription details, write to subscribe@industry20.com For sales and advertising enquiries, write to advertise@industry20.com Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd C/o KPT House, Plot 41/13, Sector 30 Vashi (Near Sanpada Railway Station) Navi Mumbai 400703 Editor: Sujay Nair C/o KPT House, Plot 41/13, Sector 30 Vashi (Near Sanpada Railway Station) Navi Mumbai 400703 Printed at Silverpoint Press Pvt. Ltd, Plot No. A-403, MIDC, TTC Industrial Area, Mhape, Navi Mumbai 400709.
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R Giridhar editor@industry20.com
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anufacturing companies are highly reliant on vendors and suppliers to provide many of the materials and services needed to run their operations— and even maintain a competitive edge. But, the recent economic turmoil has demonstrated how this dependence could be become a big risk, and even threaten the well-being of an otherwise healthy organization. Could your company cope if a major supplier went bankrupt, lost key employees or changed it market strategy? How can you tell when a supplier risk has increased? Research firm Gartner has identified four high-level vendor risk criteria that organizations can use to look for signs that a vendor may be in trouble. The first is organizational risk, which focuses on changes in personnel within the vendor organization. Changes in staff, especially at senior levels in the organization, can indicate vendor difficulties. Other signs are large layoffs of staff and high employee turnover. Another form of supplier risk is finance related. Purchasing managers should be especially careful if vendor credit rating is reduced, or if the vendor is becoming increasingly unable obtain financing or negotiate a loan to continue business. Support risk deals with possibility that specific equipment, software or technology will no longer be supported, or that the vendor will not deliver to the contracted standards. Some indicators of this risk are regular product failures,
industry 2.0
shortages of spares, lack of support or decline in service-levels, and other users abandoning the supplier. Finally, there is the strategy risk. This deals with possibility that vendors could abruptly change its corporate strategy. Signs that you need to watch for include changes in sales and marketing approach, size and type of deals the vendor is targeting, and new competition that could threaten the vendor’s current business. Gartner recommends that organizations should make vendor risk management a core competency, and routinely evaluate the risk arising from vendor non-performance. At the same time is also important to keep in mind that not all vendors represent identical risks. There are vendors that are small in cost and exposure, or operate in a commodity environment. These vendors represent only a tactical risk. In such cases, the risk mitigation strategy can be fairly straightforward. It is with strategic suppliers that the greatest risk lies. That is because the enterprise has a high dependence on them, has high spending with them, and plans to increase business with the vendor over time. This is where senior managers need to spend the most time evaluating and making contingency plans for. Vendor risk management can be complex, cumbersome and annoying. Properly implemented, however, it can save you money, loss of reputation, and customer dissatisfaction. Isn’t it time you thought about it? n
- technology management for decision-makers | june 30, 2009
contents 29
materials & processes 24 Silicon Technology for Coatings
31
Silicone-based technology is gaining popularity with the paint chemist.
manufacturing technology 27 Making the Change from Within
Growing use of embedded electronics is changing the way products and devices function
29 Economizing on Adhesives
Manual dispensing of sealing adhesives leads to unnecessary costs.
18
facilities & operations 30 Digital Prototyping for Competitiveness
Digital prototyping and integrated data management is enabling manufacturers to enhance competitiveness.
31 Art Inside Out
Ulysse Nardin uses digital prototyping to cut costs and speed up the development.
supply chain & logistics 32 Wrapping Up The Deal
The rise of a sophisticated consumer culture in India has given a strong impetus to innovative packaging technologies and new materials.
information technology 36 Making Sense of Data Cover Design: Kabir Malkani
cover story 18 Laying A Protective Coat As users gain more knowledge about the benefits of industrial paints and protective coatings, manufacturers are offering new technologies, formulations and application systems to spur demand.
Use of business intelligence solutions can improve manufacturing operations.
opinion 38 Tackling the E-Waste Challenge
Renewed efforts are being made to handle the growing menace of e-waste in India.
management & strategy 42 Igniting Innovation
What is Innovation? How different it is from creativity? These are the questions debated by manufacturing leaders at a recent conference.
in conversation
46 Navigating the Global Financial Crisis Judicious cost control over spending using technological solutions can help overcome financial constraints.
departments 03 Editorial
22 Pravin Chaudhary Executive Director, Auto Division, Kansai Nerolac Paints
june 30, 2009 | industry 2.0
34 Ashok Goel Vice Chairman and MD, Essel Propack
40 Vinnie Mehta Executive Director, Manufacturer’s Association of Information Technology
- technology management for decision-makers
06 Industry Update 28 Advertiser Index 48 Book Review 49 Product Update
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industry update
Havells Expands Switchgear Plant Capacity
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avells India Limited has expanded its domestic and industrial switchgear manufacturing operations with an additional plant at Baddi, Himachal Pradesh. According to the company, this plant will be the most automated and state-of-art switchgear
ing to increase its manufacturing capacity by 67 percent, with the additional unit. The company has targeted to export 50 percent of the production from the plant and achieve Rs 500 crores from exports within 3 years. The company has export tie-ups with companies like
event update Screen & Textile Printing Expo 2009 This technology and trade fair will display technology and products covering iron, steel and non-ferrous
metals industry. Venue: Bombay Exhibition Centre, Mumbai Tel: 91-22-26192376 E-mail: info@steelworld.com Website: www.steelworld.com
Date: 17 July to 19 July 2009
ARC’s Sixth India Forum
Havells is aiming for 50 per cent growth in domestic market manufacturing facility in the country. Havells has invested nearly Rs 150 crore in Baddi. Post expansion, the Baddi facility will produce 5 crores poles per annum of domestic switchgear, up from the current 3 crore. The company will also increase the production of industrial switchgear by 50 per cent, and electrical wiring accessories by 200 per cent. The plant area has been doubled from 11 to 22 acres. Following the expansion, the company is expect-
GE, Eaton, Siemens-Electrium, Geyer, and Proteus. Sunil Sikka, President, Havells India, said, “We are consolidating our processes in the switchgear segment by doubling our installed capacity to take advantage of availability and scale, both in the domestic as well as the global markets. This step will give us an incisive edge over the competition due to better efficiencies in the systems backed by large scale automated operations at a single unit/location.” n
BHEL Bags New Order
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harat Heavy Electricals Limited (BHEL) has secured an order for the main plant package at the upcoming Bela thermal power project in Nagpur, Maharashtra, involving one new unit rated at 270 MW. Valued at Rs 7,030 million, the order for the green-field power project has been placed by Ideal Energy Projects. BHEL’s scope of work in the contract includes design, engineering,
june 30, 2009 | industry 2.0
manufacture, supply, erection and commissioning of the boiler, steam turbine and turbo-generator, along with associated auxiliaries, controls and instrumentation including unit transformers. BHEL has fully established technology for the manufacture of thermal sets up to 1,000 MW rating. The company has also introduced new rating thermal sets of 270 MW, 525 MW and 600 MW to meet customer demand. n
- technology management for decision-makers
This event will discuss strategies and best manufacturing practices for process industries. Venue: Hotel Novotel, Hyderabad Tel: 91-80-25547116 E-mail: vishwesh@arcweb.com Date: Website: www.arcweb.com 23 July to 25 July 2009
Robotics World Show 2009
The event will display products of domestic and global players operating in the robotics sector. Venue: Pragati Maidan, New Delhi Tel: 91-79-32410602 E-mail: info@kmgindia.com Date: Website: www.kmgindia.com 24 July to
27 July 2009
Automation World Show 2009
The event will showcase wide range of latest technology, new products and services for the automation industry. Venue: Pragati Maidan, New Delhi Tel: 91-79-32410602 E-mail: info@kmgindia.com Date: Website: www.kmgindia.com 24 July to 27 July 2009
India Machine Tool Show
This expo will exhibit new technologies in material processing, machine tools, automation and robotics. Venue: Pragati Maidan, New Delhi Tel: 91-79-26469725 E-mail: info@engimach.com Date: Website: www.imtos.com 24 July to
27 July 2009
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How do we turn more ideas into successful products?
The Siemens answer: PLM Software to build the right product — and build the product right. Escalating costs. Tighter schedules. Increased complexity. The challenge of turning more ideas into successful products has never been greater. You need a product lifecycle management solution that improves everything from design to manufacturing – and beyond. Find out how Siemens PLM Software can help your company stand out, no matter how tough the challenge. http://www.plm.automation.siemens.com/en_in/answers/smb/index.shtml
Answers for Industry. © 2008 Siemens Product Lifecycle Management Software Inc. All rights reserved. Siemens and the Siemens logo are registered trademarks of Siemens AG. All other logos, trademarks or service marks used herein are the property of their respective owners.
industry update
Momentive Sets Up Silcone Products Unit M omentive Performance Materials has inaugurated a new manufacturing facility in Chennai. The construction of the state-ofthe-art manufacturing facility and application development center (ADC) was started in June 2007. Products The new plant will double the company’s existing manufacturing capacity. to be manufactured in the plant include silicone fluids and silicone elastomers. In addition to the Indian market, the new plant will serve Momentive’s customers in the countries of the SAARC. The new plant will double the company’s existing manufacturing
capacity. Equipment for the plant has been procured from various countries around the globe, including India. With the inauguration of the first phase of the project, the company will shift its India manufacturing base from its leased facility in Bangalore to Sriperumbudur. The Chennai unit will employ 150 people at the completion of its second phase, including the 40 employees displaced from the Bangalore plant, which has been closed down. “Building a manufacturing facility in India was an important strategic decision for Momentive,” said Dr Ian Moore, President & CEO EMEA & India, Momentive. “India is one of the world’s most rapidly growing markets for automotive, construction, telecom and energy,” he added. n
Kuraray Enters Indian Chemical Market
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apanese chemical company, acteristics such as adhesiveness, Kuraray has announced its film formation, emulsification and foray into the Indian market oil resistance. The chemical is through a local subsidiary. The used in textile sizing and finishing, company is a leading paper processing, manufacturer and adhesives and caking supplier of POVAL agents, dispersant, (Polyvinyl Alcohol), film and molded and is targeting to products, cosmetics, achieve sales of $42 etc. In the first phase million during the Kuraray intends to current financial cater to the needs of Kuraray is planning to set up a glass manufacturers year, and reaching plant to produce environment- and the automobile $100 million in a friendly products couple of years. Kuracompanies in the ray is also actively examining the country, and later extend its serfeasibility of setting up a plant in vices to paper, textiles, electronics India to manufacture environmentand construction. Kuraray has an friendly products. annual turnover of $4.4 billion and PVA is a synthetic high polymer operates through more than 135 that has a variety of useful charoffices around the world. n
june 30, 2009 | industry 2.0
- technology management for decision-makers
event update Food Processing & Agribusiness Summit
The event will showcase global technologies, innovations and leading practices in the food processing and agribusiness sectors. Venue: Hotel Oberoi, New Delhi Tel: 91-11-46550523 E-mail: ritu.sood@assocham.com Date: Website: www.assocham.org 28 July to 29 July 2009
4th South Asia Renewable Energy Conference 2009
The event will facilitate consolidation of ongoing efforts towards adaptation and commercialisation of renewable energy technologies. Venue: Hotel Le-Meridien, New Delhi Tel: 91-11-46550555 E-mail: energy@assocham.com Date: Website: www.assocham.org/4asia 29 July 2009
Medicall 2009
The event will showcase the latest equipment, technologies and services from the medical industry. Venue: Chennai Trade Centre, Chennai Tel: 91-44-32516661 E-mail: medexpert@medicall.in Date: Website: www.medicall.in 31 July to 2 August 2009
5th Food & Technology Expo 2009
The event will display food cleaning, grading, sorting, milling machines and equipment, food processing and packaging machines and equipment. Venue: Pragati Maidan, New Delhi Tel: 91-11-46867500 E-mail: foodandtechnologyexpo@yahoo.com Date: Website: www.foodandtechnologyexpo.com 7 August to 9 August 2009
SME Expo – Logistics & Material Handling 2009
The event will showcase logistics and material handling equipment. Venue: Bombay Trade Centre, Mumbai Tel: 91-22-28763111 Date: Website: www.inis-enterprises.com 19 August to 21 August 2009
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industry update
Schneider Electric to Acquire Conzerv Systems
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chneider Electric has signed an agreement to acquire Conzerv Systems, a leading company in energy efficiency, serving industrial and commercial end-users. The company pioneered the design and manufacture of digital energy meters in India since the early nineties. Today, as the market leader with proven technologies and solutions for energy audits and energy management systems, it generates sales in excess of €10 million and employs 337 people. With this acquisition, Schneider Electric aims to reinforce its position to capture opportunities in
the fast growing energy efficiency field in India. Conzerv products will also further complete Schneider Electric’s offering in power monitoring for its international markets. Russell Stocker, Executive VicePresident of Schneider Electric’s Asia-Pacific Operating Division commented, “Together with Conzerv, we now have in India a unique energy efficiency portfolio comprising of audit and measure, active remediation, and monitoring.” The completion of the transaction, subject to conditions precedent and approvals, is expected to occur soon. n
Siemens To Triple Capacity Of Steam Turbine Factory
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iemens has said that it will program at the Vadodara factory invest Rs 275 crore to expand will add three production bays capacity at its steam turbine amounting to 14,000 sq. mts. to manufacturing facility located at the existing production facility, and Vadodara, Gujarat. The expansion the factory will have the capacprogram scheduled to ity to manufacture be complete by 2010, steam turbines up will triple the manuto 100 MW. The facturing capacity at expansion program the factory. is also expected to Siemens set up generate additional a steam turbine employment for factory at Vadodara about 200 people. with an investment Dr. Armin Bruck, of Rs 30 crore, which Managing Director of Siemens will invest Rs 275 crore Siemens says, “We has been operato expand capacity at its steam tional since January have established our turbine unit at Vadodara. 2007. Spread over competence in the an area of 60,000 square meters, manufacturing of smaller steam turthe factory currently manufactures bine in a short span of two years. Single Stage and Multi Stage Steam This has given us the confidence Turbines up to 45MW for industrial to expand. Now, with three times applications. Smaller turbines (up the capacity and ability to manuto 15 MW) are sourced from this facture steam turbines up to 100 factory by Siemens AG to cater to MW locally, we will be in a better its requirements in other Asian and position to cater to broader requireAfrican markets. The expansion ments from our customers.” n
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- technology management for decision-makers
Lanxess to Acquire Nagda Plant of Gwalior Chemical
Joerg Strassburger (L), Country Representative, Lanxess India and Hans-Georg Schmitt, Head, Lanxess Business Unit (2 f. l.) at the signing ceremony with Gwalior Representatives
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anxess India, a subsidiary of the specialty chemicals group Lanxess AG, has announced that it will acquire the chemical manufacturing businesses and assets of Gwalior Chemical Industries for Euro 82.4 million, including debt. The transaction is subject to formal approval by Gwalior’s shareholders, and clearance by the relevant antitrust authorities. Closing is expected at the end of the third quarter of 2009. Founded in 1978, Mumbai-headquartered Gwalior is one of the largest Indian producers of benzyl products, and a leading global producer of sulphur chlorides for the agrochemicals, pharmaceutical as well as flavor and fragrance industries. Its production sites are in Nagda, Madhya Pradesh, and in Ankleshwar, Gujarat. Lanxess will acquire Gwalior’s chemical businesses at Nagda. The acquisition will be financed out of existing liquidity. The Nagda site is spread over 20 hectares and has a workforce of approximately 330. The facilities have been continuously modernized and expanded, and there is a new eco-friendly captive power plant currently under construction. The plant will provide 4 MW of power and up to 45 tons of steam per hour, fuelled by biomass. After completion, it will reduce net emissions of carbon dioxide to zero and contribute to Lanxess’ climate protection initiatives. n
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industry update
Low & Medium Voltage Switchgear Markets To Rebound
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iven the by 2015, representcurrent ing a CAGR of 14.2 economic per cent. “Burgeonsituation, growth ing economic and of the Indian low industrial growth is voltage (LV) and set to drive demand medium voltage (MV) for higher energy switchgear marconsumption. The kets is expected to switchgear market comparatively slow has exhibited excelin 2009. However, by lent growth primarThe switchgear market is 2010, the market is ily due to sustained expected to pick up with demand demand from the expected to pick up from utilities, infrastructure, with demand from vibrant residenindustrial, residential and comutilities, infrastructial, commercial mercial user segments. ture, industrial, construction, and residential and commercial user infrastructure sectors. Demand segments. New analysis from Frost from these sectors is likely to per& Sullivan, ‘Indian Low and Medium sist in the near future,” observes a Voltage Switchgear Markets,’ indiFrost & Sullivan analyst. However, cates that the market experienced fierce price competition among a growth of 15 per cent in 2008, to the market participants is likely to register revenues of $1600 million. impede the overall revenue growth Frost & Sullivan estimates that this of the Indian LV and MV switchgear market will reach $4173.2 million markets. n
Freudenberg, Gala Brush to Set Up New JV the world. To date, FHP has not been active on the Indian growth market. FHP holds a 60 percent interest in the joint venture in order to serve Freudenberg and Gala Brush officials during the signing of joint the Indian market venture agreement. swiftly and successreudenberg Household fully. The new company FreudenProducts (FHP) and Gala berg Gala Household Products will Brush Limited have signed be located in Mumbai and will take an agreement to build up a producover the current 200 employees tion and sales joint venture. FHP and the business of Gala Brush as is best known for its mechanical of August 2009. The construction cleaning products marketed under of a new, modern plant utilizing the prestigious vileda, O´Cedar and Gala Brush and FHP technologies Wettex brands in major regions of is planned for 2010 in India. n
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- technology management for decision-makers
Dow Forms New Business Unit
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he Dow Chemical Company has formed a new business unit focused on the coatings market following its acquisition of Rohm and Haas in April 2009. The new unit combines the existing resources and technologies of Dow Coating Solutions with those of Rohm and Haas to create the world’s largest supplier of raw materials for architectural and industrial coatings. “As the most technologically-advanced developer of raw materials for the coatings industry, our primary focus is to enable the coatings innovations of both today and tomorrow,” says Luis Fernandez, Vice President of Dow Coatings Materials. Dow Coating Materials operates 13 dedicated R&D labs and application centers, including one at Taloja, Navi Mumbai. Dow Coatings Materials provides a wide range of chemistries and support across many different product lines. n
SPML Bags NTPC Piping Order
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ubhash Projects and Marketing Limited (SPML) has been awarded a Rs 105 crore station piping package for the Simhadri Super Thermal Power Project Stage II at Vishakapatnam by the National Thermal Power Corporation (NTPC). The scope of work includes design, engineering, manufacturing, supply, erection, testing, inspection, and painting of above ground piping. The company will test and commission all piping systems including fittings, supports/ hangers, valves, actuators, motors, specialties, tanks, instruments, etc. The Rs 4840 crore Simhadri Stage-II expansion project involves setting up of a 2×500 MW power plant within the premises of the existing power plant, which will result in a total installed capacity of 2000 MW. The Simhadri power station has received several awards, including the Greentech Gold Award for 2008. n
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event report
Gearing up to the
New Reality The day long Manufacturing Conclave 2009, organised by Industry 2.0 in Mumbai, saw experts in various fields give an insight into the challenges faced by Indian manufacturing industries, and how they can be overcome.
proceedings of the day. He gave an overview of the overall economic environment, and highlighted the fact that the real challenge for leaders in manufacturing industries was to cope with an increasingly complex environment in which extracting value would need extraordinary skills, innovative ideas, and new ways of thinking.
‘M
The keynote address was delivered by Dr Shirish Sankhe, Director, McKinsey & Company Inc. Dr Sankhe provided interesting insights into the status of the Indian manufacturing industry. He exhorted the delegates to strive for a leading position in manufacturing, especially in skill intensive and raw material based sectors. “India should aspire to reach $300 billion in manufacturing exports by 2015,” he said. His speech highlighted three key areas in which companies would need to shore up their performance; cultivating a global mindset, achieving operational excellence, and developing technology and product innovation. Subsequently, Jayant Murthy, Director of Kaizen Institute conducted an entertaining and interactive session on the theme
anufacturing in the New Reality’ was the theme of the ‘Manufacturing Conclave 2009,’ hosted by Industry 2.0 in Mumbai. The event was organised in association with SAP and IBM, and was attended by more than 100 delegates from the manufacturing industry. Industry experts addressed the audience on a variety of topics, including lean manufacturing, achieving customer driven operational excellence, and addressing the skills gap. The conclave hosted two panel discussions that examined issues relating to lean manufacturing and corporate governance. The day kicked off with a welcome address from the editor of Industry 2.0, R Giridhar, who set the tone for the
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Lean Manufacturing
industry 2.0
- technology management for decision-makers | june 30, 2009
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event report
Dr Ar up B asu d fresh escri wate be r at i ts Mi s how Tat thap ur fa a Chemic cility, a and r ls conser ve e-use s was s te of tate the s n s e s z ly cu o y ana greater fo e s n i K s of Mc advocate ities. nkhe d a pabil n S a a c h , s a g i i r n i d i ur Dr Sh stry in In ufact du man the in to boost rts expo
Rohi tP and e rakash ad xplai v ns ho ocates s u w go ing g stainabili reen t can b y as a str a e pro fitab tegy, le
l elwa hand K l i n Su ce rnan gove
ins expla
al
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of ‘Going lean and sustaining it.’ Murthy also chaired Atul Vij the subsequent panel discussion which focused on lean acros describe s how s mu ltiple manufacturing. The panelists comprised Anand Narayan imp to im rove m plem anuf quali ent a (Partner – Industrial Sector, IBM Global Business Serc turin ty g uni best prac ts, re tices vices), Sunil Srinivasan (Industry Principal, Automation & duce costs IM&C, SAP India), and Atul Vij (Head of IT and Strategy, Minda and Industries). The panel discussed the do’s of lean manufacturing, practical implementation of lean manufacturing practices, how going green could be profitable. His talk suggested that how it could help companies, and what challenges needed to be manufacturing leaders would need to manage social, environovercome to achieve success. mental, stakeholder, and business concerns to ensure profitability. The next speaker, Dr Arup Basu, Chief Operating Officer Green Manufacturing at Tata Chemicals, gave an elaborate presentation on green The session on Green Manufacturing was presented by and sustainable manufacturing practices at his company. He Rohit Prakash, Vice President – Operations, SAP India. He showed how the company ‘s Mithapur facility steadily reduced spoke on ‘Sustainability as a business strategy,’ and showed its dependence on fresh water, and announced Tata Chemicals’
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- technology management for decision-makers
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iddle ed m t e l inig p derm a de n w u o e h ar s mine force work n exa a g s n i a iniv age ini Sr t and an Dr Sr n e agem ctivity man du r pro labou
an e hum g a n a r to m secto s how facturing n i a l nu exp sore e ma ir My cals in th h d u S rti ss ve accro
Sanja y IT an Ray Chow d sta y aflo dhury sho at in ws h o troub led ti w to lever mes age
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V Ba laji betw krishna d een O iscus E s deve lopm Ms and s es how to uppli ent c foste e osts and t rs to redu r collabor ime-t ation ce pr o-ma oduc t rket
Operational Excellence
nt
eme anag m n bo ins h car launc upply cha o t w s o d h an ns xplai t MES hta e men e e l M p l Visha es, and im tiv initia
goal to become carbon neutral by 2015. Dr Basu’s presentation elicited a number of questions from the audience, who were quite impressed by the achievements. The next speaker, Vishal D Mehta, (Senior Managing Consultant and General Manager, India – South Asia, IBM), discussed how IT could play a major role in facilitating green manufacturing.
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The next topic of discussion was operational excellence, where V Balaji Krishna, VP-Technical, Brakes India, elaborated on ‘Customer driven operational excellence.’ He discussed how manufacturers could become more flexible and agile, enrol suppliers as technology partners to foster collaboration between the OEM company and its suppliers to reduce product development costs and time-to-market. Ajay Khanna (Head for CRM India, IBM Global Business Services) spoke on the role of customer relationship management (CRM) solutions in achieving operational excellence. Dr Srini Srinivasan, (India MD at the Hay Group), gave an insightful presentation on ‘Addressing the skills gap.’ He spoke about the critical HR problems faced by manufacturing industries, and underlined the main issues and challenges confronting Indian manufacturing; mainly, low labour productivity, an ageing workforce, and a depleted middle management. He cautioned that retaining talent in the manufacturing sector is of utmost importance. Carrying the discussion ahead, Sudhir Mysore (Solution Architect, Human Capital Management at SAP India), explained how IT solutions could help enhance productivity.
industry 2.0
- technology management for decision-makers | june 30, 2009
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event report
Ajay Kh analy anna disc tics i n driv usses the ing b r usine ole of CR M an ss op d ope erati ons ratio na
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s sines nd bu d a c i n a om stry, econ t the uring indu ia Inc. u o b sa Ind act anuf n talk nting ando ing the m es confro T t i Am act eng s imp ific chall c trend e es sp outlin Jayan t Mur th nuan ces o y expoun ds on f kee and m ping ean i an or the finer n the gan se re cessi isation le onar y tim an es
in the e fat h t t to cu ive s how respons e t a g e in l a e h d c ws upply n sho the s vasa p i e n i e r S dk Sunil ation, an s i n a org n
Corporate Governance
This was followed by a panel discussion on corporate governance. The panelists included Sunil Khandelwal, CFO, Alok Industries, and Rohit Prakash, VP-Operations, SAP India. The session was moderated by R Giridhar. The Satyam sacndal on corporate governance dominated the discussion as delegates and panelists discussed and debated the sthe role of corporate governance, the role of directors, the challenges and solutions. This session also witnessed active and enthusiastic participation from members of the audience who peppered the panel with their points of view.
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r lea es fo c i t c pra s best s the f industrie e s s u o c s i e d ng rayan ross a ra d Na c n a a g n A urin ufact man
Leveraging IT
Amit Tandon (MD Fitch Ratings), reviewed the financial performance of companies, and described an outlook for corporate India. The conclave came to close with a presentation of Sanjay Ray Chowdhury (Director – Solution Engineering, SAP), who discussed how companies could leverage IT in times of trouble. His talk summed up the mood of the conclave—on how to cope with the new realities. n
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cover story
Protective Laying A
Consumption of industrial coatings in Indian industry remains very low, revealing a huge market to be tapped. According to estimates the annual loss of assets due to corrosion could be as high as Rs. 24,000 crore. And much of this is preventable through the judicious use and application of protective coatings. by satish chavan
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he word paint immediately conjures up images of colour and aesthetics. Few visualize paints as protective coatings that preserve manufacturing assets. Unfortunately, this ignorance about the use and utility of protective coatings is widespread, bemoan paint manufacturers. In India, the industrial paint segment accounts for about 20 percent of the total paint market, with decorative paints making up the remainder. According to the IPA the total demand for paint and coatings during 2008 amounted to 1.64 million tons, of which industrial coatings was 340,000 tons, valued at Rs 300 to Rs 350 crore. The demand for industrial paints registered a CAGR of 18.5 per cent between 2005 to 2008. However, in recent months the demand for industrial paint has declined with major consumers like auto components and other export oriented industries reeling in the face of a severe global slowdown. Says D Shivaram, President of the Indian Small Scale Paints Association (ISSPA), “In industrial paints there has been a reduction in demand by 15 to 20 percent over the past six to eight months. Since the industrial paint segment largely depends on automobiles, engineering and white goods, the slump in industrial production has badly affected it.”
Big Companies Rule the Roost
Protective coatings comprise a major chunk of industrial paints, with automotive sector emerging the principal demand driver. The other important categories are marine coatings and speciality paints. The organised sector dominates production of paints in India, accounting for more than 70 percent of the total market. The remainder is serviced by nearly 2000 small-scale units. According to the IPA, companies in the organised sector produce about 63.5 per cent of the total paint by volume. The leaders in the organised paint industry are Goodlass Nerolac Paints
Ltd. (GNPL), Asian Paints and its subsidiary Berger International, Jenson & Nicholson Ltd. (J&N) and ICI (India) Ltd. GNPL’s Kansai Nerolac Paints (a subsidiary of Kansai Paint Co., of Japan), is market leader in the industrial coatings segment, with a market share of over 40 per cent. Asian Paints, India’s largest paint company, ranks number two in industrial coatings in the Indian market. Among global players Akzo Nobel has gained a foothold in India with its acquisition of ICI. In addition to other global brands like Jotun and Sherwin Williams, some well known Indian brands are medium and small companies like Shalimar Paints, Industrial Coatings Corp., Gunjan Paints, Esdee Paints, and Star Paints. Most of these SME units have established a strong regional presence and compete mainly on the value-for-money proposition. “But many of these SMEs are innovative, and some have now developed low cost performance paints,” insists Mukund Halyalkar, who claims to have developed an eco-friendly, water-based halogen free fire resistant (as opposed to heat resistant) paint.
Raw Materials Constrain Growth
The paint industry is raw material intensive, and imports nearly half of the 300-odd ingredients used in manufacturing. Consequently, any spike in oil prices affects the bottom line of paint companies. “This industry requires crude oil and imported raw materials. Any volatility in the rates has adverse impact on our margins. In recent times most companies have had to increase prices because of growing pressures on profit margins. This is compounded by wild fluctuations in the exchange rates,” complains an ICI spokesperson. The major raw materi-
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industry 2.0
- technology management for decision-makers | june 30, 2009
19
cover story in our country,” laments Naresh Sharma, President for Sales and Marketing at Sherwin Williams (India).
Regulatory Challenges Grow
als, titanium dioxide, phthalic anhydride and peutarithrithol account for 50 per cent of the total cost. In fact, raw materials account for almost 70 per cent of the total cost. “Last year SME units faced a crisis due to unprecedented increase in the prices of crude. The industry suffered a major setback in trying to offset the cost and delivery of materials,” agrees Shivaram of ISSPA.
New Trends Emerge
Growing user sophistication and new technologies are driving changes in the paints and coatings industry. There is increasing demand for anti-corrosive, heat resistant, fire resistant, and speciality coatings. Novel applications range from anti-fungal paint for hospital applications to coatings suitable for plastics. Among the emerging demands from endusers of industrial coatings are; l High Durability: To provide protection against corrosion and weathering, with an improved lifespan to expand the repainting cycle. l Higher Productivity: Paints that are designed to reduce painting time by reducing the number of coats, and which cure rapidly. l Environment Friendly: Paints with lower volatile organic compounds, free of heavy metals, and compliance to international environmental standards and regulations. Lower baking of the coating to reduce energy consumption. According to paint suppliers there is growing demand for UV curable coatings to realise energy savings, and for material savings. Users are also opting for electrodeposition (ED) primers instead of spray painting which results in high volume of wasted material. However, “Low upgradation of skill sets within the applicator fraternity does not really allow any highly sophisticated technology to be introduced
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There are certain varieties of paint intermediates which are exported from India. This is because strict environmental regulations in developed countries have led to the shifting of the production of these intermediate raw materials to developing nations. But, growing domestic regulation is now making it difficult for SME manufacturers of these products to comply with norms. “Paints are classified in the Red category by pollution control authorities. Various restrictions are imposed with regard to disposal of waste, which is beyond the capacity of SMEs. The government should facilitate waste disposal at economical prices for the SMEs to survive,” argues Shivram of ISSPA. However, the most critical environmental legislation is the Solvent Order 2000. While it was (unsucessfully) aimed at preventing fuel adulteration, the order prevents paint companies from transporting raw materials. “The Pollution Control Board should become facilitators, rather than implementing authorities. We appeal the Government to immediately withdraw the Solvent Order 2000, which has never benefited anybody,” pleads the ISSPA.
Changing Colours
While big manufacturing companies are aware of the benefits of painting and coating, most units in the SME sector (which form the backbone of Indian manufacturing) tend to see painting as a luxury. “In India, more importance is given to saving money rather than asset maintenance. Unless the machinery fails they don’t bother about anti-corrosive coatings. This is the reason why consumption of industrial coatings is low in India,” observes Avinash Kanvinde of Kanvinde & Kanvinde, a manufacturer and supplier of industrial paints, and anti-corrosive and marine coatings. According to the Indian Small Scale Paint Association (ISSPA), India’s per capita consumption of paint is just 1.9 kg, when compared to 16 to 20 kg in advanced countries. However, the industry is optimistic that as awareness percolates to the SME level and Indian manufacturing scales to global norms, the use of industrial coatings will become more wide spread. According to a study released in June 2009 by industry consultant IRL, “While companies in mature economies face the challenge of even maintaining sales throughout the ongoing financial crisis, continued growth in India is likely to lead to an additional million tons of coatings demand by 2013, when the total Indian paint market will reach 2.7 million tons.” n
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materials & processes
“There is a whole spectrum of companies that believe in performance products” We met with Pravin Chaudhary, Executive Director of the Auto Division, at Kansai Nerolac Paints, the market leader for industrial coatings with a turnover of $320 million during 2008-09. In a wide-ranging discussion with Industry 2.0, he comments on the low penetration of industrial coatings in India’s manufacturing sector, and the innovative paint related strategies adopted by automotive OEMs. What are the trends in the consumption of coatings in India? If you look at developed countries like the USA per capita consumption of paint is close to 28 kg, even China is well above 10 kg. The per capita consumption in India is barely 1 kg now that’s the gap. So, the Indian coating industry has a lot of potential. In the last 10 to 12 years the Rs 1500 crore paint industry has grown nearly twice of our GDP growth. Roughly, 30 per cent of this is accounted for by industrial paints, the balance is decorative. If you look at the global picture, it is exactly reverse, 30 per cent decoratives and 70 per cent industrial. The reason for this is that more importance is given in developed economies to asset protection and increasing the life span of assets. Another aspect is that the regulations for insuring plant and machinery are very strict in developed countries. In India this is given low importance. While such regulations may exist here, there is no enforcement. This results in low demand. Protective coating is seen as a luxury in India; largely we use cheap paint in every field except OEM’s like automobile. Developed countries use high performance coatings like poly urethanes and poly-urea. These are non-permeable type of paints and protect steel structures from chloride attacks. However, we do find companies here that are forward-looking who use not
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just solvent enamels and epoxy coatings, but also costly anti-corrosive paint very diligently. Quite a few refineries do this regularly and well. While there is also a whole spectrum of companies that believe in performance products, there are many who think routine products are adequate. As the industry leader our job is to educate them, whereby people gradually come to a level where they buy performance products. As a leader in this segment we make every possible effort to increase awareness of customers and contractors through technology meets. Agencies like Society For Protective Coatings (SSPC) and National Association Of Corrosion Engineers (NACE) are very active in corrosion protection programmes. They conduct regular training workshops, seminars. We need to educate people so that they buy performance products instead of routine products. While we have been disseminating this awareness through various media, it is a long journey. With the kind of infrastructure build up we are seeing in ports, roads, bridges, etc., I am sure high performance coatings will stand to gain.
What is limiting widespread use of coatings in the SME sector? The extent of coatings penetration in the SME sector is less than 50 per cent, compared to over 90 per cent among big companies. The main constraint is the
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price. As a businessman, I can understand that—since it is a question of priorities, given the limited funds available to manage machinery. But, SMEs need to focus on the cost-benefit equation, not just cost. That understanding and consultation is beginning now. It has been our perception that SME’s are ignoring maintenance. However what must be focussed is on performance products like PU base over alkyd based products. This will definitely be superior in performance and will in many cases reduce the cost of maintenance.
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Photo: Jiten Gandhi
Pravin Chaudhary, Executive Director, Auto Division, Nerolac Paints
Where are the biggest customers? The OEM segment—mainly the automotive sector, especially the passenger car segment. They not only use paint on the car (the final product is fine), but are also using advanced protective coatings on their plants. For automotive paints the market is largely in the North, and South where there’s much activity happening owing to OEMs like Nissan and Ashok Leyland. For high performance coatings, the market is concentrated largely in Gujarat and Maharashtra which have a lot of chemical companies.
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Tell us about collaborations with customers to reduce costs and shorten application processes. When it comes to OEMs the bigger cost is the painting process, not the paint itself. As we understand, 33 per cent cost of making a car is towards painting. This is because they need to invest in facilities like clean rooms in the paint shop, which boosts costs. The focus of these companies is to reduce their painting costs, and so they collaborate with paint suppliers. For instance, whether we can bake at lower temperatures to reduce energy costs,
industry 2.0
or reduce the number of coats. In fact, we have now developed a three coat one painting process called 3C-1B (3 coat and 1 bake). That means I can apply three coats but need to do only one painting. That’s the kind of technology we have introduced. Also, environmental concerns have led us to introduce leadfree paints. Some of the leading automobile manufacturers are now asking for water based paint. This paint will reduce the VOC burden and contribute to reducing the formation of smog which causes ozone depletion. n
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materials & processes
Silicon Technology for Coatings Though relatively new, siliconebased technology (SBT) is rapidly gaining popularity due to the unique application advantages it offers the paint chemist. This is evident from the fact that approximately 12 per cent of US patents registered in 2001 on coatings employed some aspect of SBT, excluding the use of silica. by dr. milind vaidya
S
ince their invention in 1943, silicone-based materials are being increasingly used in a variety of applications, including coatings. This is because of the unique set of properties that silicones offer to the chemist or formulator. From the perspective of coatings, Si-O-Si bond in siloxane (the inorganic backbone)
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offers superior strength over C-C bond giving better weather/ thermal resistance over conventional organic coatings. Also, as Siloxane, the Si-O-Si is already in oxidized form, which gives it excellent resistance to oxidation. The UV light energy is more than C-C bond but less than Si-O bond and hence these polymers also exhibit excellent UV resistance. Due to these unique features, siloxane resins find applications in muffler coatings, exhaust stack coatings, barbecue grill and generator coatings and other applications demanding thermal and weather resistance.
Silicone resins and intermediates
Silicone resins are employed predominantly in heat resistance applications like high temperature stacks, exhausts and manifolds, boilers, ovens and furnaces, heat
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exchangers, etc. Siloxane resins are often methyl or phenyl based, as both these give excellent heat and weather resistance compared to other alkyl or aryl groups. Among these, typically phenyl contributes towards heat resistance, toughness and oxidative resistance, while methyl imparts properties like water and chemical resistance, and flexibility. An appropriate combination of these constituents needs to be selected to get the desired film properties. Commercially, silicone resins are available as solutions in solvent (50-80 per cent) and also in flake form. Resin emulsions available as water-borne systems could be the answer for future, demanding eco-friendly coatings. Silicone resins exhibit thermal and weather resistance because the inorganic siloxane backbone of these resins is already in the oxidized form, and due to the
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thermal resistance. For instance, around 25-30 per cent siloxane in alkyd or acrylic resin can give thermal resistance upto 350 C, against pure organic resin of these types which can’t withstand more than 150 C. Typically, at these concentrations the paint can exhibit twice to three times more chalk resistance and gloss retention. Recent studies on epoxy modification with functional silicone resin showed that it could not only improve the thermal and weather resistant properties but also improved flexibility of epoxy resin, which is often the biggest limitation of these systems.
Modifying Properties With Additives
bond energy of Si-O-Si. Also in many cases at very high temperatures these further react with the pigment/ metal to form thermally resistant moieties, thus lending thermal stability to coating systems. The curing of these resins is often through the thermal mechanism. Though room or low temperature curing is possible, it would either be a two-pack system, or would have limitations rendering them commercially non-viable. Though, silicone resins exhibit excellent thermal and weather resistance, they have limitations where flexibility and compatibility are concerned. Also, compared to organic resins, silicone resins are costly. From application point of view, in some cases the thermal and weather resistance requirements of the coating do not need 100 per cent silicone. For such situations there is a clear need to have a synergistic blend of organic and silicone chemistry. This hybrid is possible with certain compatible resins, and more prominently with silicone intermediates. Almost all organic resins can be upgraded with this technique. There are two ways in which these hybrids can be obtained. Certain organic compatible silicone resins could be cold blended with organic resin in the required proportion, say 20 to 50 per cent depending on the functional requirements. It’s the percentage of siloxane in these combinations which determines the improvement in functional properties. However, this option of cold blending is not always feasible due to non-compatibility between the constituent materials. In such situations a silicone intermediate or resin can be reacted with the organic resin. This would give a copolymer of organic-siloxane type, through condensation of the –OH group of organic resin (acrylic, alkyd, epoxy, polyester etc.) and –OH or Alkoxy (mostly methoxy) group of intermediates. The performance of reacted copolymers are typically 10-20 per cent superior than their equivalent cold blend. These upgraded silicone modified organic resin based coating systems also show improvements in weather and
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Silicone materials have been used for many years to improve the surface properties of various coatings systems. When added to coatings formulations, silicone additives can improve wetting of substrates by virtue of low surface tension. They also provide excellent anti-foaming, anti-blocking, slip and mar resistance. Anti-foaming has been one predominant application of polydimethyl siloxane for various industries including
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materials & processes
coating. These products exhibit superior anti-foaming properties because of their non-compatibility and low surface tension that help it spread easily at the interface. In fact, PDMS has the second lowest surface tension (~21 dynes/cm), after fluoro compounds (19 dynes/ cm). However, the non-compatibility of silicone additives ( more properly PDMS based ones), tend to lead to surface defects. It is important for a paint formulator and technologist to keep in mind that silicones are much more effective than organics, and hence are required at lower concentrations than corresponding organic additives. Thus, one needs to take due care while setting the formulation with silicone additives. Most of the commercial silicone additives have a golden mean of two critical properties
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viz. non-compatibility and dispersion. When used at optimized levels silicone based additives give superb results. Besides anti-foaming, PDMS based additives also exhibit excellent slip and mar resistant properties. With the advances in chemistry and better understanding of customer needs, many organically modified silicone molecules are used as additives. Various useful organic functionalities like amino, alkyl aryl, epoxy, carboxyl, carbinol, etc., can be introduced in these modifications giving a paint chemist a host of new possible options. These additives have all the advantages of silicones but show improvement in limitations like non-compatibility, solubility, etc. Typically, available additives are based on alkyl, alkyl-aryl, polyether, carbinol functional modified siloxanes. These additives endow unique properties like improved dispersion and wetting, as well as slip / mar resistance.
Bridging the Gap with Silanes
Silanes are among the most exciting solutions silicone chemistry can offer to the formulator. Silanes are monomers which have dual functionality—inorganic bonding and organic compatibility. Most of the silanes used in coatings industry are alkoxy silanes that have two or three alkoxy (methoxy or ethoxy) groups attached to a silicone atom. The fourth valency of this silicone atom is satisfied by the functional group like epoxy, amino, methacrylate, vinyl, sulphido etc.
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Chemically, silanes are the bridging moieties used as coupling agents. With diverse application needs emerging from introduction of newer substrates and resin systems, in many cases it becomes difficult for a formulator to have good anchoring and adhesion, especially with plastics. Silanes can also be added to the existing paint or coating systems, or can also be applied as a primer. As most of the substrates like metal, glass, cement, etc., are inorganic and sometimes have compatibility issues with the organic resin systems; silanes provide a bridge between these two dissimilar substances. Depending on the resin system and the surface involved, users can select appropriate silane to act as coupling agent. Typically a common rule of ‘Like compatible to like’ is used. Thus for epoxy resins, epoxy and/or amino functional silane is used while for acrylate systems, vinyl or methacrylate, functional silanes are used. This also could be applied for different plastic substrates like PE, ABS, PVC, PS etc. Another application for silane, typically monomeric functionals like methacrylate and vinyl, is to use these as co-monomer in the acrylic system. When used in small levels, these monomers being multi-dented give improved cross-link density which in turn improves properties like scrub resistance. Silane-siloxane technology can be used to provide water resistance to the coating system. Many exterior coatings demand good water resistance while having ‘breathing properties’. This can be achieved with SBT. n For more information on Silicones visit www.fascinatingsilicone.com. Dr. Milind Vaidya is Commercial Manager – India Region, Dow Corning India Pvt. Ltd.
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manufacturing technology
Making The Change from Within Embedded electronics is changing the way products and devices function—and enabling the connected world. by naresh narasimhan
T
he radical advances in digital technology are forging a global society where computers, consumer electronics, and mobile devices are merging into one alwaysconnected, networked realm. New paradigms, including locality-aware devices such as GPS systems, always-on mobile connectivity with wireless broadband and “smart” phones, and environment-aware products such as RFID “smart” cards, are driving the intermixing of personal and business activities, and tighter information technology integration into human lives. People want more information and entertainment, faster, anywhere, anytime. Four megatrends that underpin the new digital age include, wireless everywhere enabled by digital RF technologies; accelerating performance enabled by highspeed serial data technologies; video explosion enabled by digital video technologies; and pervasive electronics enabled by embedded systems technologies. A major challenge is to make the underlying complexity of these next generation technologies appear simple. This is being achieved through improved functionality
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and ease of use, greater performance and seamless interoperability. Here is a quick rundown on the the impact of these trends in some industries: Consumer electronics: Increasing design complexity is driving the consumer electronics industry towards greater use of embedded systems. From advanced multifunction mobile telephones to digital televisions, devices such as computers, microprocessors, or other electronic components (such as field programmable gate arrays (FPGAs) and transmission electronics) are getting embedded into devices. Increasingly, consumers want to integrate these devices with other products, and be able to upgrade these embedded devices as new advances become available. Industrial electronics: Factory automation, process controls, power generation and management, security and environmental
monitoring all rely on embedded electronic systems. Business needs like higher quality, cost reduction, efficient operations, data and information management are driving greater use of electronic control and management systems. Automotive: It is estimated that about one-quarter of the value of a modern car lies in the electronics. This is expected to increase to about 40 percent by 2010. The average new car comes with more than a dozen microprocessors inside, controlling everything from the engine to the radio. Some high-end models include more than 100 microprocessors and microcontrollers. Many are subtle, like the autodimming chips inside a rear-view mirror. From 8-bit controllers to 32-bit processors, automotive embedded systems provide electronic controls for antilock brakes, traction and stability
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manufacturing technology
controls and engine management. Avionics: Embedded electronics are widely deployed in aircraft in areas such as cockpit instrumentation, air data, inertial systems, engine control, electrical power generation, hydraulics, fuel systems, autopilot, navigation, GPS, ILS, landing gear, flying surfaces, slats, flaps, etc. Innovations like fully automated adaptive rotor systems for helicopters are able to reduce noise on take-off and landing, and cut reduce vibration during flight. Medical: Embedded systems are widely used for patient monitoring and diagnostics; in operating rooms and, within technical devices such as MRI and PET scanners. ‘System on a chip’ (SOC) integrated technology has recently been used to create a chemical and biological laboratory capable of carrying out analysis at the point of care, without having to wait one or two days for laboratory results. In a ‘non-technical’ application, an artificial leg
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employing embedded systems can operate in unison with the biological leg. The embedded system is based on scientific gait analysis and biomechanical studies, performed under microprocessor and software control based on inputs from numerous sensors. Communications: Examples of embedded technologies abound in the communications industry, driven by the merging of traditional analog with newer digital technologies; shift from conventional voice and time-division multiplexing (TDM) based networks towards multimedia networks integrating voice and data including video, into areas such as global positioning and tracking. Network processors
are increasingly being used in switches, gateways, routers and other communications equipment such as security and control plane processors to manage performance, power consumption, traffic management, and other embedded functions. Increasingly, too, Voice over Internet Protocol (VoIP) chips are being embedded throughout networks. Embedded electronics is booming in India. The India
Semiconductor Association (ISA) and market researcher Frost & Sullivan have projected that the Indian semiconductor and embedded design industry will grow from $3.25 billion in 2005 to $14.42 billion in 2010 and to $43.07 billion in 2015. In 2010, when India’s design services, growing at a CAGR of 21.7 percent, are projected to reach US$10.96 billion, the embedded services industry will contribute 82 percent, or US$8.91 billion in revenue. With more and more telecommunications, consumer, computer, industrial and automotive products incorporating embedded, systemon-chip designs, India is poised to become a more critical link in the global electronics design chain. India plays a major role in the embedded design starting from 4-bit to 32-bit microcontrollers and is especially competitive in digital design, embedded software development, integration, verification and validation. With companies across the globe continuing to invest in India, the country is poised to emerge as a rich source of innovation and technology in the embedded arena. Its status as an embedded design hub will grow further and it will be common sight to see teams based here playing a key role in architecting and delivering next-generation products, designs and solutions in this arena. n Naresh Narasimhan is Country Marketing Manager for Tektronix India
Advertiser Index
Su-Kam...............................................Inside Front Cover
Elecon Engg................................................................... 9
Swagelok....................................................................... 1
Havell’s India................................................................. 5
UGS India....................................................................... 7
Mekater Tools.............................................................. 25
Turbo Air....................................................................... 17
Pramet Tools................................................................ 11
TaeguTec.............................................Inside Back Cover
Shree Lakshmi Trader................................................. 37
Taitra..............................................................Back Cover
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manufacturing technology
Efficient Dispensing of Adhesives Dispensing thread thread sealing adhesives manually from their original packaging can lead to extra costs. by andy bardon & c s woo
T
hreadlocking and thread sealing adhesives and sealants have become one of the most reliable and inexpensive ways to ensure that a threaded assembly will remain locked and leak proof. However, dispensing adhesives manually out of their original packaging. Sometimes this leads to excessive dispensing of the adhesive—and extra costs. Threaded fastener loosening is one of the major causes of industrial equipment failure and the resulting unscheduled downtime costs industry millions of dollars each year. Threaded fasteners set and hold tolerances on assemblies ranging from light duty equipment to heavy machinery. To increase the reliability of this equipment many threadlocking methods have been developed, yet none exhibit the level of performance of anaerobic threadlocking and thread sealing adhesives. Threadlocking and thread sealing adhesives have become one of the most reliable and inexpensive ways to ensure that a threaded
Number of bolts locked 50ml Threadlocker Dispensing Method
assembly will remain locked and leak proof. Applied drop-wise to fastener threads, these adhesives fill the grooves of the threads and cure to a hard thermoset plastic when fastener is assembled exposing the adhesive to metal ions in the absence of air—therefore they are also called anaerobic adhesives. Threadlockers are available in low strength formulations for easy removal, medium strength grades that can be removed using common hand tools, and high strength formulations that offer the highest holding abilities.
Dispensing Manually
Typically anaerobic metal adhesives are made available in special purpose plastic bottles. The bottles are approximately half filled with adhesives. The unfilled space contains air that keeps the material stable. Most users apply threadlockers directly out of their original packaging. With manual dispensing straight from the bottle, the volume of the adhesive dispensed is controlled by the operator. The bottle must be tipped so that a drop of threadlocker will be released from the bottle and placed by gravity onto the fastener. Common challenges related to bottle dispensing include excessive dispensing of the adhesive where too much is applied, and applying the adhesive in tight locations where the bottle cannot be tipped for drop-wise application. with
Number of Bolts
Manual Dispensing
660
Hand Pump Dispensing
1000
Cost Savings
>40%
Dispensing anaerobic adhesives with a hand pump leads to significant savings.
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Hand Pumps Minimize Waste
A simple and effective solution is to use a low-cost hand pump unit that can be installed onto the bottle-top.
Hand pumps are positive displacement dispensing systems, which by definition is the volumetric displacement of fluid. A positive displacement system is unaffected by external variables and is therefore very repeatable under changing conditions such as temperature and viscosity. By pressing a trigger, the dispensing wheel is turned and an exact quantity of the product is transported through the tube to the applicator needle. Most handpump designs include an adjusting screw to set the stroke on the trigger. With this it is possible to control the quantity of adhesive to be applied very accurately. A leading adhesive manufacturer provides hand-pumps for use with its products. These manual systems will dispense threadlockers, thread sealants, and retaining compounds from 0.01 to 0.4 ml, and in viscosity’s up to 30,000 cPs. They work at any angle, won’t leak, and eliminate waste. In addition, they require no flushing, power, or air source. Loctite has done comparison tests, and the results show that correctly applying a hand-pump can effectively lower usage of liquid threadlocking adhesive by more than 40 percent. n Andy Bardon is Application Engineer, Henkel Loctite Asia Pacific and C S Woo is Technical Customer Service Manager, Henkel Loctite Asia Pacific.
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facilities & operations
Using Digital Prototyping to Enhance Manufacturing Competitiveness by andrew anagnost
J
ust as a top-end calculator does not make a top-notch engineer, 3D solid-modeling software does not guarantee best-in-class manufacturing. Industry research firm Aberdeen Group debunked that equation in a study, the Digital Product Development Benchmark Report. The report detailed the various measures by which these companies are achieving success: l Best-in-class manufacturers hit their revenue, cost, launch date, and quality targets for 84 percent or more of their products. l Best-in-class performers typically produce 1.4 fewer prototypes than average performers. l Best-in-class performers average 6.1 fewer change orders than laggard performers. l In total, best in class manufacturers of the most complex products get to market 99 days earlier with lower product development costs.
Connecting the three phases of manufacturing
Each of the three major phases of manufacturing—ideation, engineering and manufacturing—can create obstacles to the digital pipeline. Ideation: Much of the work that is involved in design conception is done on white boards and on paper. Industrial designers often turn to clay models to experience their ideas, as well. Then comes the hard work of converting those concepts into data that can be used by others who will create the product’s structure and systems. Often, when styling and visualization is performed digitally, the data may or may not be usable by engineering applications in later phases of development.
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However, through deliberate choices that ensure software interoperability or through some other means of integration, manufacturers can unlock the flow of information between ideation and engineering. Top-performing manufacturers document engineering deliverables electronically and early on, making them “portable” across divisions. Engineering: For product engineers, the conventional path from concept to design for production is fraught with obstacles. In addition to the compatibility issues typical in the ideation stage, for years design engineers have been asked to address functional problems with
applications that represent geometry. Often, they solve these problems with one set of tools, and then work with specialists in computer-aided design (CAD) software to translate their functional solutions into geometry. Best-in-class manufacturers equip their engineers with applications that do not require them to adapt their problem-solving to suit their tools. Rather, they use software that automates creation of models, and then test designs throughout development. Manufacturing: Once design drawings make it to the manufacturing phase, production teams often rely on e-mail or paper-based communication to clarify questions with design teams, and use physical prototypes for insight as well. Simply capturing more information digitally and making it more available upstream and downstream
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opens a digital pipeline that is enhanced by software tools for data management in the manufacturing phase. This is beneficial for users both upstream and downstream from the design process. Industrial engineers can take advantage of production teams’ insight into manufacturability. Best-in-class manufacturers also have a higher rate of design re-use, which in turn helps them meet product deadlines. And the advanced tools used by their mechanical and electrical engineers for functional simulation—in addition to 3D solid models—provides additional resources for answering manufacturing teams’ questions.
Uncommon Sense
So why is digital prototyping still the exception, rather than the norm? Most solid-modeling software focuses on 3D geometry—just one aspect of a digital prototype, and not necessarily the aspect that product engineers need to solve functional problems. Imagine being able to bring together design data from all phases of the product development process to create a single digital model that gives engineers the ability to fully visualize and test a design’s function before producing a physical prototype. Cost-effective applications are available today that can both complement and contribute to a digital pipeline, helping to bridge the disconnects between ideation, engineering and manufacturing; carrying insights from one stage to the next; and reducing their dependence on physical prototyping in search of design-phase answers. That is an equation that adds up to the kind of efficiency that is truly best-in-class. n Andrew Anagnost is Vice President -- Engineering, Design, and Simulation, for the Manufacturing Industry Group at Autodesk.
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facilities & operations
I
n 1846, Ulysse Nardin founded what is now one of the world’s premier makers of fine mechanical watches. Today, the name Ulysse Nardin is synonymous with elegance, quality, and innovation. Few products pack so much mechanical complexity into such a small area as fine watches. With more than 400 moving parts, Swiss watches, such as those made by Ulysse Nardin, have long been marvels of design and artistry. But, in today’s competitive marketplace, even companies like Ulysse Nardin must accelerate time to market while controlling costs. To make its product development process more efficient, the company employs digital prototyping. Prior to digital prototyping, Ulysse Nardin spent about four years designing the internal mechanisms for each new watch. The process was lengthy due to
Ulysse Nardin’s mechanical designers to create an accurate digital prototype of a new time piece. Working with a 3D model, watch designers are able to visualize how gears and springs fit with other components as they design. “A typical Ulysse Nardin watch contains about 400 moving parts,” says Pellaton. “Having a clear 3D view is a significant advantage. Inventor helps us to place parts and explore different options very quickly. It has significantly accelerated one of the most complicated aspects of watch design.” With digital models integrating the design process, Ulysse Nardin has been able to use larger and more interchangeable design teams. These teams rely on Inventor to help them explore and hone digital prototypes, reducing the need to produce multiple rounds of physical prototypes.
Art Inside Out Using digital prototyping solutions, Ulysse Nardin creates watches people dream of owning.
design complexity, small design teams, and the number of physical prototypes required. Yet in the competitive market for high-end watches, Ulysse Nardin had to create ever more innovative watches—faster.
The Digital Solution
Ulysse Nardin accelerated its product development cycles using Autodesk Inventor software to cost-effectively take advantage of a digital prototyping workflow. Inventor software allows
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“The digital prototype allows teams to easily validate their designs against the work of other teams,” explains Gygax. “Designs progress more quickly and without collisions. With digital prototyping, our watch movements and cases are largely refined during design, so we produce just one physical prototype instead of three.” Ulysse Nardin also uses Autodesk Productstream to manage design data while making it easier for other workgroups to collaborate with the design team. So, if people on the shop floor spot an opportunity to enhance a design, they generate a change order within Productstream. The software automatically sends appropriate alerts and manages the change request. “We are able to process change requests more efficiently with Productstream,” says Pellaton. “It brings everyone who needs to review the request
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together electronically, allowing us to make changes quickly and with minimal disruption to other projects.”
The Finishing Touches
To help refine its watch cases, Ulysse Nardin recently began using Autodesk Showcase software. Says Gygax. “It allows us to compare realistic representations of different watchband materials side by side. We see precisely how each band will complement the watch face. Product images created with Showcase are so realistic that we have used them instead of product photographs on our website.” Pellaton points to accelerated product development cycles as a key benefit of Digital Prototyping. He says, “With Inventor, we realize our vision twice as quickly. Instead of taking four years to design and produce a new watch movement, it now takes two. Inventor has also helped us lower costs. We are saving as much as $30,000 in prototyping production costs for each new watch movement.” Looking at the big picture, Gygax adds: “Inside and out, our customers expect a work of art. Autodesk Inventor provides an environment to explore ideas and continue innovation in the art of mechanical watch making. From the beautiful case to the movement Ulysse Nardin watches are renowned for, Digital Prototyping helps us to create the kind of watches people dream of owning.” n
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supply chain & logistics
Wrapping
Deal
up the
T
he rise of a sophisticated consumer culture in India has given a strong impetus to attractive and innovative packaging. Increasingly, Indian manufacturers of packaged consumer goods are realising this fact and leveraging it as an integral part of their marketing strategy. The science of packaging has evolved from its original function of protecting and preserving a product, into the art of presenting attractively the product it contains. According to the MCG, “Of the total Indian packaging market, the consumer packaging sector was valued at about Rs. 30,000 crore, accounting for a 55 per cent share of the market. The industrial/bulk packaging sector
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accounted for the rest.” Among the biggest demand drivers for packaging are retail, FMCG (processed foods and beverages), pharmaceuticals and personal care, consumer durables (appliances and white goods etc), and consumer packaged goods. According to the Indian Institute of Packaging (IIP), there are about 20,000 packaging units across the country, comprising of packaging raw material manufacturers, converting industry, and the packaging machinery sector. Most of the converting units fall in the small-scale sector. According to estimates, only 700 to 800 units in the industry could be classified as large-scale units, with SMEs making up 80 percent of the packaging sector. Pack-
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aging conversion is dominated by small firms while packaging materials such as tinplate, paperboard and polymers and films are supplied by large firms. However, fluctuating raw material costs have a critical impact on converters. “The wide price fluctuations in raw materials, is seriously affecting the business of packaging conversion industries,” says P V Narayanan, Professor at the SIES Institute of Packaging, and Chief Executive of the Paper, Film, & Foil Converting Association (PFFCA).
Food, Drugs Drive Growth
“The major demand drivers for packaging are a steadily growing consumerism, increasing consumer consciousness, rising
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personal disposable income with higher purchasing power, a preference for brands, a demand for choices and convenience, and value-added consumer packs for exports. In addition to these, India’s booming retailing sector has turbocharged demand,” points out Narayanan. According to the Indian Institute of Packaging (IIP), the packaging industry in India is valued at $14 billion (Rs 54,000 crore), and is growing at an annual rate 15 per cent. However, the overall size of the Indian packaging industry is still small when compared to other countries. Against a per capita consumption of $300 to $400 in developed countries (and a world average of $100), India’s consumption of packaging material is just about $11. “The retail boom is expected to push this up substantially, with 40 percent of packaging products consumed by the fresh and processed food sectors,” according to Narayanan. The size of the Indian food market is approximately Rs 250,000 crore ($69.4 billion), of which value-added food products comprise Rs 80,000 crore ($22.2
Industrial Packaging Solutions
S
elling of industrial products is often based on the product’s intrinsic value, never on attractive packaging. Industrial packaging has to perform well in distribution, handling, storage, and transportation, where palletisation and containerisation is more important than graphic design. Industrial packaging can be for both light and heavy engineering goods. Light engineering goods: Products like circuit breakers and switchboards need to be protect their delicate assemblies. In case of dissembled products the packaging requires blocking and bracing. Also parts have to be cushioned with padding material like styrofoam. To maintian a centre of gravity of the package there are specific formulae and tables to determine an optimum position. It is weather proofed billion). “There are 300 million upper-and-middle-class consumers of processed and packaged food in the country, and another 200 million are expected to shift to packaged food by 2010,” confirms Rajiv Dhar, Director of
Labelling
L
abelling is important for two reasons, to comply with regulations like printing mandatory information of retail price, batch number, expiry date, etc. In consumer packaging the label also personifies your brand. A good visual rendered colourful and attractive can take your product miles ahead of the competition. Labelling is also important for industrial cargo in transit, to identify the product, its origin, destination, and handling instructions. Labels also display information like hazardous, inflammable, fragile, etc, and include an RFID tag to track high value machinery in transit. Barcode Labels: Barcodes will identify a product with accurately and track inventory, and distribution, and store price and product details. There are three main types: aluminium, polyester, and ceramic, barcode labels, which differ by base materials called stock, and are available in various types with adhesives and can be customised. RFID Tags: There are two types of Radio Frequency IDentification (RFID) tags; active RFID tags which transmit signals, and passive RFID tags requiring an external source to provoke signal transmission.
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using bitumen coated waterproof paper, polythene films, polythene lined hessian, and waxcoated papers are used. Silica gel is used to absorb moisture. Heavy engineering goods: Most heavy machinery can sustain impacts but will need handling directions on labels like ‘This side up’ or ‘Fragile,’ and need to be bolted inside the container to prevent movement. It is desirable to dismantle large machines into sub-assemblies and pack precision parts, gear boxes, etc individually and need anti-corrosive applications like oils and/or wrapping films to protect them. All machinery should be fixed firmly to the base with nuts and bolts, tensional straps or wooden blocks. And most importantly heavy engineering packages should have skid type cases.
the IIP, “this is bound to boost the demand for FMCG and other consumer packaging substantially,” he adds. Alchoholic beverages and pharmaceuticals are also expected to emerge as major growth areas. India’s alcoholic beverage market is the third largest in the world, with consumption of alcohol pegged at 373 million cases per annum. The demand for wine in the domestic market is estimated to grow to around 6 million bottles, which is likely to spur consumption of glass containers. In the case of pharmaceuticals, opening up of health insurance sector is expected to provide an impetus to pharma packaging.
Flexible Packaging on an Upswing
During 2008, the flexible packaging and label segment clocked a growth rate of 20 to 25 percent, while the folding board and carton segment registered about 17
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33
supply chain & logistics
“There is plenty of potential in the Indian packaging market” With FMCG majors like Proctor & Gamble, Unilever, and Colgate on its client list, Essel Propack Ltd (EPL) is now the world’s largest manufacturer of laminated tubes. The $298 million company commands 30 per cent by volume of the global laminated tubes business, and dominates the India and China markets. In conversation with Industry 2.0, EPL Vice Chairman and MD, Ashok Goel shares his views about product innovation, and what it takes to become a successful global manufacturing company. How mature is the Indian packaging market?
is on reducing post-consumer waste, or recycling. We have developed a high lustre finish in various shades for special purposes. On the resource reduction front we have introduced non-aluminium barriers.
If you are asking about the entire packaging market, then I would say it is big—and still growing. If you are asking in terms of sophistication, for most basic packaging forms India is using the latest. However, we still lag when it comes to using finer features.
How have you been able to improve the efficiency of your manufacturing units?
Why are we lagging in using advanced technologies? You have to see this in context. In developed economies where cold chains are well established for processed foods. It also has to do with eating habits. In India everybody likes fresh food. Whereas in the West, they would rather go pick up frozen foods from the supermarket. These are some of the differences between Indian and Western markets. India has not had much success in cold chains so far. So the food that is packaged in India is still at an elementary level. But there’s plenty of potential.
Ashok Goel, EPL Vice Chairman & MD
What innovations has your company done? As market leaders, we have been innovating for quite some time. There are two types of innovation. One which is visible to the consumer, and those not visible but are understood by our clients. These include things like resource reduction, improving the efficacy of the product, etc. Some of the research we have done
percent. The overall growth rate of plastic-based packaging media is about 18 percent, while that for glass and metal-based packaging is near the 5 percent mark. Metal packaging continues to be important in the food and beverage segment. Tinplate packaging in India includes open top sanitary (OTS) cans, 3-piece general line cans, and seamless cans. With
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We have developed a Harmonized Manufacturing Policy (HMP), and use tools like GMP, TQM, TPM, etc. HMP is based on the ISO 9001-2000 platform with a thrust on productivity improvement, quality improvement, business improvement, and enhanced customer satisfaction. We have dedicated teams working on it, and we have regular audits of our manufacturing units. As a capital intensive manufacturing company we have to squeeze the maximum out of our resources.
What kind of machinery do you use at various facilities? We use state-of-art machines from companies like Rifenhauser (for blown
major soft drink companies like Pepsi and Coca Cola beginning to source cans locally, manufacturing of soft drink cans is likely to get a substantial boost. However, aluminium 2-piece beverage cans and some OTS cans are still imported. However, the market for consumer packaging is far from saturated. “Packaging is the first
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contact with a product by the end user. But, in India, many buyers still feel packaging is not a part of the product and limit their costs. They settle for low-end solutions. But this trend is slowly changing,” points out Laxman Rao, Chairman of Moldtek India, whose major clients include international clients like Castrol, British Petroleum, and Gulf; and Indian companies
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film), Sumitomo (for lamination), Titan& Kampf (for slitting), Kopack (for printing), and Packysys (for tubing).
What does it take to become a multinational company? First and foremost, you have to be excellent in your home country. You should be able to manage quality, consistency, and sustainability of all the practices you follow. This means you have to institutionalise these practices and document them. You can then transpose these practices to other countries. You should be able to replicate success, identify failures and find solutions. You should be able to explain what went wrong and how it can be corrected. This means that documented facts have to be accessible to anybody who wants them. Then you set up the benchmark—which is a moving target. The second thing is how you manage the verticals—and your factories. The organisational structure also has to be aligned to take care of various needs. We have done all this by having a ‘Technical crack team’ who specialise not only in management practices, but also in processes and transferring the knowledge. We also have special teams for quality, innovation, and global sourcing. These are critical building blocks for having a global footprint. n
like Kansai Nerolac Paints, Himalaya, Ranbaxy, and Dr. Reddy’s. While consumer packaging accounts for the lion’s share in overall packaging market, there is also a substantial industrial packaging sector that is shifting from wooden to corrugated boxes. As the Indian market matures and manufacturing industries become more integrated in the global
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Indian Packaging Market (Year 2008) Total market: Rs. 54,000 crores
Others
Paper & Board
11%
33%
Glass 5%
11%
23%
17%
Rigid Plastics
Metal
Flexible Packaging
Source: Madras Consultancy Group
economy, the quality and volume of industrial packaging is also expected to increase. Shanker Gopalkrishnan, President of the Madras Consultancy Group (MCG) says, “In order for investments to take place, the government needs to treat the packaging industry on par with food processing, and provide it with the same incentives. Food processing and packaging are but two sides of the same coin and hence, one cannot flourish without a matching output from the other.”
Robust Machinery Market
As far as packaging machinery is concerned, Indian suppliers are competitive. All kinds of machinery required for conversion, packaging line operations, packaging systems, and ancillary equipment are easily available in the country. There are around 750 units engaged in making machines for the packaging sector. “The significant achievement is that they can meet not only domestic requirements but also capitalise on export opportunities. Their strengths are economic viability, excellent service, and suitability for medium speed operations,” says Narayanan. Currently, imported machinery is mainly for high-end packaging including
mould labelling robots and labels, and high-speed PET bottle making equipment.
Towards Flexible Packaging
The emerging trend is towards flexible packaging, which is projected to grow at an annual rate of 20 to 25 per cent. “Over the years the packaging industry has witnessed interesting shifts. One shot, unit dose, and portion packs, have emerged a significant product marketing tool. Convenience features, hygiene, and a clean look, are some of the other value additions being made to packs,” says Narayanan. There is also a marked shift from bulk to small printed packaging due to legislative mandates and growing consumer awareness. Emerging packaging technologies include high speed can manufacturing lines with speeds of 300 to 500 cans per minute, with the latest end marking facilities, 2- colour printing lines, and can palletization. “With the growth in GDP projected to reach 7 to 8 per cent in the long term, there is tremendous potential for the packaging industry in India. But the industry needs to modernise and infuse new technology,” comments Gopalkrishnan, n
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manufacturing technology
Making Sense of Data With increasing competition and ever demanding customers, manufacturing continues to face new challenges every day. By applying business intelligence techniques, manufacturing organizations can enhance operational management and realize new savings.
W
hile factory floor automation has significantly improved all areas of processing for manufacturing companies, it has also created a staggering amount of data. Despite hardware improvements that have enabled organizations to economically store the increased data, there never seems to be enough time or resources to meet the needs of factory managers who face the “fact gap” that exists between the data and the usable information required to make real business decisions. This is often because report generation in high data volume
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environments normally takes a long time. To speed up the process, many systems use tools that employ summarization techniques to reduce the volume of records by aggregating those with records together with common characteristics. Problem with this technique is its inherent inflexibility and inability to cope with the constantly changing information needs of manufacturing. One of the biggest challenges for the manufacturing industry is the need to constantly adjust to changes in demand. If managers have a proper understanding of costs and demand, they can make better decisions. Some manufacturers also have customer specific costing, where improved visibility in procure-topay is helpful in optimizing the supply-side performance. Other companies with large product portfolios have many suppliers with whom they need to negotiate on cost and quality, and maintain large inventories that need to be
tracked and moved to meet customer demands. Added to this is the need identify customer needs, maintain and improve customer delight, and add new customers to remain in business and be profitable. One solution to these problems is to use business intelligence (BI) solutions.
Applying BI
Some of the areas where BI solutions can be applied in manufacturing include: l Inventory optimization: Manufacturing companies often have huge inventories to track and move. It is essential for them to monitor their inventories to reduce over-capacity, and ensure sufficient supplies. BI allows manufacturing companies to track inventory usage across location and time, monitor inventory costs and profits through multiple layers of information, and identify inventory overage or obsolete or slow moving inventory. In addition, users can set up alerts for instant notification of low inventory levels. Utility of Business Intelligence l Financial ● Increase the value of customer relationships management: ● Respond quickly to changing markets and Manufacturers company sensitivities need to focus on ● Accelerate new product time-to-market both external profit building and inter● Reduce inventory investment nal cost reductions ● Improve planning, scheduling, and the proto improve their curement schedule profit margins. BI ● Maintain and develop quality assurance allows manufac● Select and apply world-class technologies turers to analyze
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information across multiple sources to set performance goals and create sophisticated profitability and financial models. Manufacturers can develop budgets that incorporate production, operation, sales, fulfilment, and finance figures for optimal forecasting and planning. l Supply Chain and Order Management: BI can help deliver deep customer insight into order and inventory data to make better decisions in each stage of the order lifecycle. BI enables users to assess inventory levels, determine likely product fulfilment needs before the order has been booked, quickly identify potential order backlog issues, and stay on top of critical accounts receivable (A/R) and daily sales outstanding (DSO) issues. l Procurement and Spend: BI enables optimization of supply side performance by integrating data from across the enterprise value chain—thereby enabling executives, managers and frontline employees to make more informed decisions. It increases visibility into the complete procure-to-pay process, including comprehensive spend and procurement analysis, supplier performance analysis, supplier payables analysis and employee expense analysis. l Price-Volume Mix Analysis: Manufacturing companies must process an immense amount of information regarding the pricing and volume of products. By integrating this massive amount of information through in-depth analysis, BI allows companies to gain insight into budget variances and make better placement decisions for products. l Installed base tracking:
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For many manufacturers, keeping track of where their products are installed gives them tremendous opportunities for post-sales services and additional sales. Having adequate and accurate installed base data is essential if manufacturers want to maximize their profits from this revenue source. BI’s comprehensive reporting and monitoring capabilities enable manufacturers to track installed products, as well as the costs and revenues associated with after-sales services to determine the most cost-effective offerings. In addition, users can set up real-time alerts for notification of maintenance schedule requirements to take advantage of additional marketing opportunities. l Warranty analysis: Warranties are one area where manufacturers can greatly reduce costs by ensuring original quality. By analyzing warranty costs, companies can identify possible faulty manufacturing and detect emerging problem areas. Through analysis of warranty claims, manufacturers can reduce and forecast warranty costs and also identify fraudulent claims. BI can be effective for all types of manufacturing organizations—whether process or discrete—since it can leverage all the sources of data available throughout the manufacturing process to deliver a holistic view. It can help close the fact gap by improving the availability and delivery of actionable data with minimal IT involvement. Manufacturers should carefully consider using BI as a cost effective way to improve operations. n Courtesy: MAIA Intelligence
industry 2.0
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37
opinion
E-waste Challenge Tackling
A recent e-waste assessment study conducted by Manufacturers’s Association for Information Technology (MAIT) and German Technical co-operation (GTZ ) reveals that e-waste generated in India is expected to touch four lakh seventy thousand metric tonnes by 2011. The study has brought to light the need for advanced recycling technologies to be developed, and for more processors handle the e-waste and minimize the hazardous impact on the environment. 38
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T
he MAIT-GTZ e-waste assessment study revealed that a total of 330,000 tons of ewaste is generated annually in India, while an additional 50,000 tons is illegally imported into the country. However, only 19,000 tons of this is recycled. The high level of refurbishing and re-use of electronics products in the country, and the poor recycling infrastructure facilities are responsible for the vast gap between the numbers. Currently e-waste recycling, especially processing, is concentrated in the informal sector. Due to poor processing technologies and very small capacities, this activity contributes significantly to pollution and environmental degradation. It is estimated that e-waste generated in India will touch 470,000 tons by 2011, making it imperative to lay down policies to govern this activity. Some observations from the study:
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l IT Ownership and Disposal behav-
iour: More than 90 percent of the organisations did not have any policy on disposal of obsolete IT products/ewaste. While many business organisations were aware about e-waste, the depth of knowledge was lacking. l Recycling Practices: Ninety-five percent of the e-waste is segregated, dismantled and recycled in the informal sector based in urban slums. It is fairly commonplace to find operations such as open burning of wires to extract re-saleable copper, soaking of circuit boards in open acid bath followed by manual scrapping to extract copper and precious materials next to open drains. Unlike the informal recyclers, the formal recyclers do not use any chemicals or incinerations and use environmentally sound processes. Also, the efficiency of processes is significantly lower in the informal sector when compared to the formal sector.
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Study Methodology
The MAIT-GTZ e-waste study shows that 94 per cent of the companies do not have disposal policies in place
A
funnel approach was used for accuracy and better understanding of the e-waste production in India. The e-waste has been estimated at three levels: l Annual e-waste generated: IT and electronics products that have reached end of life. It includes items that get stacked inside warehouses/ store rooms, those that are not sold by consumers because of inappropriate resale value, or are used for lower level application, etc. This was estimated by applying input and obsolescence method. l e-waste available for recycling: Electronics products that have been exchanged/ sold/ by their owners. A significant proportion of these products get refurbished, are re-used or relocated to smaller towns or villages. The quantity of ewaste available for recycling was estimated on the basis of inputs from expert interviews and channel member insights along with the validation through the primary survey. l e-Waste processed: Disposed electronic waste that is processed. Typically includes the broken down parts and components. This was estimated based on interviews with formal and informal recyclers across India.
Regional spread of e-waste generation
Estimate of e-waste in India
l E-waste Estimates: It was
found that most of the used electronic products are either put to use for less resource intensive applications, or given to relatives/ friends for further use. Due to lack of proper collection systems, households and institutions at times end up storing these products in their warehouses/ storerooms. Even when the obsolete products are sold or exchanged, these are refurbished and then resold. Only a small proportion
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of obsolete electronics products actually finds its way into the ewaste processing stream. Although the Foreign Trade Policy (FTP) of India does not permit the import of electronics waste, it finds its way into the country through wrong declaration. Of the total e-waste, only about forty percent finds its way into the recycling stream, while the remainder is in warehouses/ storehouses due to inefficient collection systems. A significant
proportion of the waste that finds its way into the recycling stream, especially televisions and mobile handsets, is refurbished and resold. Only about nineteen thousand tonnes—representing just five percent of the total e-waste— is processed in the country. Of the total e-waste generated in the country, Western India accounts for the largest proportion at thirty-five percent, followed by the South at thirty percent. North and East account for twenty-one percent and fourteen percent respectively. While North India is not a leading generator, it happens to be the leading processing centre of e-waste in the country. Currently there are no formal recyclers operating in the North or the East. There are two formal recyclers in the South of India and one in Western India. Several formal recycling facilities would be coming up across the country in the next couple of years. n
industry 2.0
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39
opinion
“We need a vibrant recycling industry” Vinnie Mehta, Executive Director of the Manufacturer’s Association of Information Technology speaks about the initiatives taken by the organization on recycling of e-waste, and the challenges that lie ahead for the industry.
Vinnie Mehta, Executive Director, Manufacturer’s Association of Information Technology
What are MAIT’s plans in the wake of the release of the e-waste assessment study? We have been pressing for a legislative framework for managing of electronic waste. MAIT, GTZ, Green Peace and Toxics Link, are working together on this for more than a year now. We have received significant inputs from all stakeholders across the value chain of e-waste management including the producers, recyclers, informal sector and state pollution control boards. We also had detailed workshops on the subject in Delhi, Bangalore, Chennai and Mumbai. Further we have also reached out to other verticals in the electronics space such as the components, the consumer electronics and telecom sector as well. The draft rules for environmentally sound management of e-waste has undergone over 40 iterations and will be soon be taken by the Government for discussion. Everybody realizes that management of e-waste is a huge challenge, the industry, the government and all other stakeholders have now to work together to find a solution to it.
What challenges do you foresee in minimizing e-waste? The first and the foremost challenge
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is that there is no awareness. People do not know what to do with e-waste. The second challenge is the unorganised informal sector, which processes most of the e-waste. This sector has no access to either capital or technology—as a result of which the recycling techniques are inefficient and violate environmental norms. The informal sector does a good job in collection of e-waste, but a poor job in processing/precious metals extraction. We believe that their role should be limited to collection, dismantling and segregation of e-waste. They should divert the processing part of the value chain to the formal sector. There are some upcoming players in the formal sector such as Attero and Tessam, and another 5 to 6 companies who are involved in the collection and segregation of e-waste.
How can the illegal imports be curbed? Illegal imports are a huge challenge that need to be resolved quickly. Illegal imports take place through misdeclaration of goods. Most of the times they happen in collusion with the authorities. Better vigilance is the only remedy for this.
What is the need of the hour? All stakeholders need to realize that e-waste is a huge challenge, and we need to take corrective action as well as proactive action. The proposed legislative framework is a step towards that direction. Every stakeholder in the value chain needs to take his role and responsibility seriously. The consumers on their part should return the ‘dead’ electronic items to collection centers who will ensure that the waste is sent for recycling to recyclers with sound
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technologies with minimal environmental degradation. The government should also regularly monitor the entire valuechain through periodic audits.
Could you throw more light on the recycling infrastructure in India? India has poor recycling infrastructure. The MAIT-GTZ assessment study states that 94 per cent of e-waste processing is done in the informal sector. They employ the most vulnerable people in the society - women, children and migrant laborers with little or no access to health and safety equipment. Lack of technology and capital makes processing inefficient as also harmful to the environment. However, the good news is that among the 8 to 10 large processing companies, two of them are investing in precious metal extraction and refining, which will be functional in next six months.
Why are there only a few players in the formal sector? The MAIT-GTZ study is a first-of-itskind that quantifies the e-waste generated in the country, and in a way is a pointer to the business opportunity in this space. Business takes time to build vibrancy, and as we go along the space will get better defined. As the consumption of electronics equipment in India is only expected to grow, the field offers significant business opportunities.
What is your message to IT manufacturing companies? My message to IT manufacturing companies, and the industry, is that we need to take this issue on war footing. We all should remember that we are custodians of the environment for our future generation. n
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management & strategy
Igniting
Innovation What really is Innovation? How is it different from creativity? The simplest definition I have come across is that “creativity is about thinking new things, whereas innovation is about doing new things,” said Azim Premji, Chairman, Wipro Limited, during the keynote address at the fifth India Innovation Summit 2009, held recently in Bangalore. He further added that innovation is a culture that needs to be created consciously and pursued assiduously by the organization.
“There are no shortcuts to innovation”
Shree Phadnis, Principal Consultant, QAI
42
I
nnovation is a complete journey from idea generation to concept development to product commercialization. Each of the stages is equally important for successful innovation to happen. One of the major milestones in the history of innovation can be attributed to Thomas Alva Edison who was primarily responsible for setting up the basic infrastructure and processes needed for the innovation industry. Edison was an extremely diligent inventor
june 30, 2009 | industry 2.0
and had realised that invention is all about 99 per cent perspiration and 1 per cent inspiration.
and work through to achieve the dream product that we can commercialize. Currently most organisations try to develop products that can be commercialised within a period of 10 years rather than the conventional development times that were taken in the past.
India Innovation
Return on investment
Innovation in the industry and focus on structured innovation worldwide is a recent phenomena. Most development associated with structured planned innovation has started taking place since 1990 onwards especially after globalisation and establishment of WTO and standardisation and rationalisation of intellectual property laws across the globe. Given this background it would be wrong to say that India lags as compared to other countries. However, one can still state that the methods and structures used for innovation in India are still reminiscent of the older structures. Many organizations still follow the conventional mode associated with trial and error for the development of innovative products. It is still believed that to be innovative one must have many ideas only then we can prioritize
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The graphs (shows that if one is to take a macro level view of the return on investment of innovation initiatives that the organisation takes, we can summarise that the return on investment is a function of the number of innovations commercialised, the type of innovation and the correct markets addressed divided by the cost of commercialisation and the speed of commercialisation. When we break each of these factors into the details we figured out that for successful innovation to happen, the quality of ideas that are breakthrough yet easy to implement has to always go on the rise, and the number of ideas that we generate have to reduce. This finding is in stark contrast of the practices in the innovation industry. Even today most companies are focused on trying to generate more ideas so that they
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can then spend time in selecting those ideas that are worth commercialising. However such techniques are reminiscent of the old methods of the Edison era and to meet the challenges presented by the 21st century new methods and structures need to be built and put in place.
Challenges
The first thing that organizations in India need to commit is the long-term commitment to innovation. There are no shortcuts to innovation. The entire industry needs to awaken to the fact that what is needed is strong solutions that can be deployed with minimal costs is the need of the hour, not many ideas and then debates over idea selection. The industry needs to realize that to innovate is a process and there exist structured methods to innovate. Random brainstorming for innovation is detrimental and is very expensive method to innovate.
Going from ideation to realization Technology
Invention
Production
Development Time
Fluorescent lighting
1852
1934
82 years
Radar
1887
1933
46 years
Ballpoint pen
1888
1938
50 years
Zipper
1891
1923
32 years
Diesel locomotive
1895
1934
39 years
Cellophane
1900
1926
26 years
Power steering
1900
1930
30 years
Rockets
1903
1935
32 years
Helicopter
1904
1936
32 years
Television
1907
1936
29 years
Kodachrome
1910
1935
25 years
Transistor
1940
1950
10 years
crashed and by bold thinking we mean, those solutions that are derived from utilizing existing available resources.
Strategies
The most important part is associated first with accepting that we are not being innovative. This is the key, as it will fuel organizations to deeply introspect Hurdles and then evolve strategies apt The biggest hurdles faced by for them. Organizations need to organizations today are lengthy invest time in developing their development times, coupled with workforce in teaching them the change related challenges, assoscience of how to innovate, and ciated with bold thinking. Notice then need to put in the complete that if the organizations look managerial process for the sucat the issue as how to develop cessful management of innovation few yet correct solutions the deployment. lengthy development times can be Just installing the managerial process like score Sixty-six per cent of cards, Toll gates, Review companies consider innovation mechanisms, etc without a top priority focusing on the process of how to generate strong solutions will only create bureaucratic structures that will effectively manage poor solutions.
Future of innovation
The fact that China overtook India in the manufacturing race in the earlier part of the decade has been a kind of eye
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opener for many Indian organizations, who now realize that it is imperative for us to innovate else we will perish. India needs to fuel innovation at a complete ecosystem level. The fact that 80 per cent of the patents filed in India are from MNC organizations is not a good sign from a perspective of India innovation story. Today we see that Indian origin companies are at least realizing this and are working towards building such infrastructures is promising. On an S curve we can place India innovation at only its birth stage and most likely boom will occur around 5 years from now.
Message to companies
There is a systematic process that helps you know what to innovate on, how to innovate and generate strong solutions thus making it more likely that you will be able to commercialize the innovation. The process is robust and currently being practiced at MNCs like Samsung, LG, Posco, Boeing, Intel, GE, P&G, and many others. n Shree Phadnis, Principal consultant at QAI has 19 years of consulting and management experience. He has been involved in consulting and training interventions in innovation, balanced score card development, process improvement and quality domain. Shree heads the Innovation Practice at QAI.
(As told to Reshmi Menon)
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- technology management for decision-makers | june 30, 2009
43
management & strategy
“The vision to change the game with something extraordinary is missing” companies have not been willing to take the kind of risks which companies in the West and Japan have taken.
We lag behind
What is missing is the mindset. Indian companies are not natural risk takers. They want returns to come quickly. So, they like to use tried and tested methods. Many of them are good at cost cutting. Some also have exceptionally high quality standards. But the vision to change the game with something extraordinary is missing. The “blue ocean” mindset is missing. Dr A V Vedpuriswar, Head (learning & development), with a leading global bank’s Indian back office operations.
I
nnovation in the Indian manufacturing industry has, by and large been incremental and mostly of the process type. Maruti, for example, has introduced many process innovations and so have Gujarat Ambuja Cements and Tata Steel. But, radical product innovations and business model innovations have been few. The Nano is one of the few examples. Indian
An encouraging culture
The most important aspect of an innovation culture is willingness to tolerate failures. Failures should be looked at as opportunities to learn, not as the basis for punishment. Companies must also be less hierarchical. Younger employees who often tend to have great ideas and enthusiasm must be empowered. An inspiring vision that emphasises the importance of innovation and its impact on society is crucial. Strong leadership alone can shape such a culture.
Future of innovation
As globalisation gains momentum, innovation will no longer be an option for Indian manufacturing companies. But for at least a decade or so, we are likely to see more of process innovations, especially aided by information technology, not product innovation. For innovation to take off, we need more start ups. Not all of them will succeed. Indeed, an integral part of start ups is failure. We need a far better legal system in general and a bankruptcy code in particular. Venture capital funding will also be needed to fund good ideas. Favourable government policies will be a big help here. It is a combination of ideas, venture capital, easy registration and quick exit that has made Silicon Valley a hotbed of innovation. If we want to get there, many things still remain to be done. Dr A V Vedpuriswar is Head (learning & development), with a leading global bank’s Indian back office operations. He has over 22 years of experience equally divided between academics and industry. His interests include, globalisation, innovation and business strategy.
(As told to Reshmi Menon)
“Innovation is one of Timken’s core values”
I Srinivasulu Dampur, Head - Product Technology, Timken Engineering and Research India Pvt Ltd.
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nnovation is a process that involves defining customer’s specific needs and evolving processes and technologies through inventive problem solving to address these specific needs. Innovation is one of Timken’s core values. The world revolves around the ability to create, transfer and control movement. New product development is the core of innovation at the Timken
- technology management for decision-makers
Technology Centre in Bangalore. The technology centre has successfully filed four patents for Ball Bearing/ Wide Inner Ring (WIR) Housed Unit designs.
Changing Established Norms
The Bangalore Timken Technology Centre was instrumental in developing the Shaft Guarding Technology. It replaced a decades-old practice that
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“We will witness more innovations”
I
n simple words innovation is an extension of invention. At Philips we believe that any development that improves lives of people and simplifies the complexities can be termed as innovation. Our aim is to empower people to benefit from innovation by delivering on our brand promise of “sense and simplicity”. This brand promise encapsulates our commitment to deliver solutions that are advanced, easy to use, and designed around the needs of all our users.
Innovation at Philips
Philips is synonymous with innovation. Ever since its inception Philips has gifted the world with many firsts including light bulb, CFLs, DVD and more. Philips currently has more than 60,000 patents in its IPR portfolio. These are based on 12,000 patent families. Philips also has around 29,000 registered trademarks, 43,000 designs, and 2,000 domain names.
India power
Everyone sees opportunity in India and wants to tap the potential. We have skilled labour, intellectual capital and willingness to succeed which fuels innovation in all spheres. More demanding we become, more innovations we will witness. At Philips, we believe that innovations are meant to improve lives of people and this is what we strive to achieve through our offerings. Talent is tremendous, but for this we will need encouraging policies that can provide every person with right to education.
has long haunted maintenance mechanics. The standard practice for locking a turning shaft so it wouldn’t slip within a bearing housed unit was to tighten a setscrew or two through the bearing inner ring and let it turn. But, after many hours and revolutions, the screws would dig into the shaft or groove, raising the metal or corroding the surface. Eventually, the screws would lose their
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grip and the shaft began to slip and the process would come to a halt. This would put the machinery out of commission until the bearing could be cut or pressed off the damaged shaft and replaced. Timken’s new Shaft Guarding Technology has revolutionized this process. Timken housed units that incorporate Shaft Guarding Technology employ a patented
industry 2.0
Murali Sivaraman, CEO, Philips Electronics India Limited.
Future of Innovation
Human capital is our biggest strength today. Being informed and exposed to globalization, consumers in India have become well aware of their surroundings and needs. Today the consumer is ready to pay for solutions that can bring simplicity to his life and can improve the lifestyle. Hence, in future all efforts will be directed towards introducing such meaningful innovations. n Murali Sivaraman is CEO, Philips Electronics India Limited.
(As told to Reshmi Menon)
setscrew locking system that takes the pressure off the shaft, and transfers it to a hardened stainless steel band. By eliminating direct shaft-screw contact, this new, easy-to-use technology helps protect the shaft against gouging, raised metal and corrosion that can lead to expensive shaft replacement. It also makes removal much quicker and safer, without the need for cutting tools or torches. n Srinivasulu Dampur is Head - Product Technology, Timken Engineering and Research India Private Limited.
(As told to Reshmi Menon)
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45
management & strategy
Navigating
the Global Financial Crisis Judicious cost control over spending using technological solutions can help you overcome financial constraints. by mike arenth
U
nprecedented shifts in the world economy, tightened finances, deflation and increased supply chain risk have compelled business managers to focus on spend management—the discipline of controlling and optimizing the yield of every penny spent. Leading companies have come to view spend management as a key stimulus package for holding down costs and improving performance.
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Cost reduction can be rapidly achieved by leveraging technology-based solutions that enable organizations to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. And there is ample opportunity for those who haven’t yet embraced spend management to do the same. Consider the following: l Decline in global demand for virtually all metal components has resulted in lighter order books and open capacity at many global metal component suppliers. Everchanging export duties and tariffs, and shifting global currencies have also created regional opportunities to source metal components from regions that have been less active in previous months. Buyers of metal components from
- technology management for decision-makers
all global regions have been able to identify savings opportunities from declining raw material costs and hungry global suppliers. l With oil prices down from their peaks, prices of commodity plastics have dropped. Polyethylene is down more than 25 percent, and polypropylene has fallen about 40 percent in the last six months. As demand struggles, these prices could drop even further. Export markets have cooled off, and plastic producers are throttling back production to reduce oversupply. Plastic and rubber converters have even more excess capacity, and with raw material pressures easing, this is perhaps the most favorable sourcing environment for plastic and rubber parts in the last few years. Now is a great
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time to recalibrate pricing in just about any energy or petrochemical-based market. Buyers should be seeking frequent (monthly) price adjustment clauses to remain as consistent as possible with rapidly falling markets l When the unemployment rate exceeds 6 percent, companies can typically realize significant savings in sourcing temp labor services. High unemployment rates create a downward pricing pressure on pay rates in the labor market, and the high demand for jobs makes the recruiting efforts easier. l Lower labor rates also impact a number of indirect spend categories. Within the services categories, buyers can take advantage of compressed labor rates in categories such as janitorial services, security guards, call centers, and business consulting, where the labor component is a primary cost driver, typically accounting for 40 to 50 percent of overall cost. l In difficult financial times where capital is hard to come by, companies are holding off on purchasing new equipment. Equipment suppliers are desperately seeking markets for their products, and with raw material prices dropping, buyers are firmly in control in price negotiations. l Every major transportation mode has excess capacity. International airfreight volumes have declined, as have rail and intermodal traffic. Buyers are seeing healthy competition in every mode of transportation due to excess market capacity. So how can your organization convert these opportunities into bottom line results?
1
Target New Spend Categories
Set your sights on these and other categories—including many of the “sacred cows”—(such as advertis-
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ing) which were once outside the realm of standardised sourcing and compliance procedures.
2
Don’t underestimate the challenge of data
3
Squelch the mavericks
As the saying goes, “garbage in, garbage out.” Invest in tools that enable you to cleanse, analyse and clearly view your spend across categories, divisions and geographies so that you can identify opportunities for savings.
Use the current economic crisis to secure C-level support for policies and procedures to drive internal compliance with existing supply agreements. Also, take the opportunity to secure the budget to invest in cost containment solutions, such as contract management software, to ensure that vendor agreements are negotiated and finalised according to company policy, and then implemented and complied with quickly.
4
Work with your suppliers
In a tumultuous economy, it is more important than ever for buyers and suppliers to work more closely together, share the economic burden of the times, and embrace innovative ways to ensure their mutual health. As the gap between low-quality and high-quality borrowers grows, more suppliers will experience cash flow problems. For forwardlooking buyers willing to come to the rescue of their most important suppliers, third-party supply chain financing options exist today that enable buyers to hold onto their cash and suppliers to be paid early at far more competitive rates than traditional factoring providers allow. Buyers can use their good credit rating to help suppliers borrow at lower rates
than they could achieve on their own. The result is a healthier and more productive relationship and supply chain.
5
Don’t be afraid to get help
Faced with pressures to deliver more savings faster than ever before, many companies are now looking outside for spend management process support, spend category expertise, or just additional arms and legs to help execute their savings plans. To meet budget constraints, many enterprises are revisiting variable or performance-based agreements that allow them to pay for all or a portion of these outside services based upon savings achieved. Simply put, spend management is the fastest, most efficient way to create measurable, sustainable, bottom-line results. Control costs for direct materials where you can. And press hard on your indirect spend. In doing so, you’ll create additional value for your organisation during these lean times and position it well for growth when things recover. n Mike Arenth is General Manager EMEA at Ariba.
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book
The Art of Leadership by ranjani iyer mohanty
I leadership is an art author: max de pree publisher: dell publishing
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f you search books for leadership on Amazon, you get 341,565 results. If you search for ‘leadership programs’ on Google, you get over 33 million hits. A lot has been said on this subject, and yet it remains elusive. Even management guru Tom Peters recently admitted “Leadership is confusing as hell”. Max De Pree concedes the nebulous nature of the beast from the beginning by naming his book Leadership is an Art (Dell Publishing, 1989). De Pree says, rather refreshingly, “Leadership is more tribal than scientific, more a weaving of relationships than an amassing of information, and, in that sense, I don’t know how to pin it down in every detail.” Leadership is an Art is not a recent tome from a brilliant young Ivy League professor. Rather, it is a book by an experienced leader of a furniture company, a book that has stood the test of the last 20 turbulent and rapidlychanging years. Max De Pree was the CEO of Herman Miller, a furniture manufacturing company founded by his father in 1923. In Fortune magazine’s annual survey, Herman Miller has been ranked as the ‘most admired’ company in the furniture industry 21 times over the past 23 years, and in March 2009 was ranked in the top 10 across all industries and companies for its innovation, social responsibility, and quality of products and services. Herman Miller has often been voted one of the best companies to work for in America. The employees are highly motivated, involved, and productive. And the company is very profitable. Max De Pree now runs his own leadership centre where his ideas are extended through research and education. Leadership is an Art is quite unlike the average business book on leadership and the perspectives it offers are unique. De Pree defines leadership as “liberating people to do what is required of them in the most effective and humane way possible.” While others have explained leader-
- technology management for decision-makers
ship in terms of traits or behaviours, De Pree seems to have naturally arrived at a more functional theory: he defines leaders as stewards “... of assets and legacy, of momentum and effectiveness, of civility and values.” He espouses participative management, encourages roving leadership, and explains the importance of shared beliefs. He talks of a covenantal relationship between leaders and workers in a way that is reminiscent of one of Paulo Coelho’s parables. He urges us to make capitalism an inclusive process, both in terms of financial reward and meaningful involvement—a need that is quite obvious in our world, both of financial haves and have-nots and of an aging population, experienced but excluded. And even when he mentions something more standard like communication, he emphasizes listening more than talking. This book contains multiple references to Christianity, a basic foundation of De Pree’s business and private life. Those who find this a bit unsettling or unilateral can balance it with readings on leadership based on other perspectives, such as the books The Tao of Leadership by John Heider and Bhagavad Gita on Effective Leadership by Pujan Roka. While this book may be on a number of short lists of best business books, Leadership is an Art is really a book on philosophy—a book on how to live your life, how to lead and inspire your children as much as your organisation. Leadership is an Art reminds me of another book I consider something of a bible, or should I say Gita, of sorts: The Tao Te Ching. That too is a thin and simple book with surprisingly heavy content. You may not understand it all the first time through, but you think about it long after you’ve finished reading it, and you return to it again and again, looking for and finding more wisdom. n Ranjani Iyer Mohanty is a freelance business writer and editor, currently in Calgary, Canada.
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product update Light Emitting Diode
H
avells India Ltd has introduced ‘Endura Lite’, a new product in the light-emittingdiodes (LED) market. Endura lite will consume 50 percent less energy than traditional sources. It is four times more energy efficient than
regular incandescent lamps. There is no use of glass or filament in these kind lightings as compared to in normal lightings, hence it has a long lifespan with average life of 50,000 hours. These lamps are easy to install and do not emit UV radiation. It is smaller in size and lighter in weight. It is suitable to fit in standard MR 16 fixtures and has been tested for its high shock resistance and durability. These are designed to give higher efficiency and consume low power and has environment friendly luminous source. Endura Lite is favorable to be used in spaces like jewellery mart, designer showrooms, recreational areas, high-end specialty shops, auditoriums, theaters, art galleries and museums. The range is available in 3x1w and 1x3w with two colours i.e. Day light white and warm white. Havells India Tel: 91-120-4771000 Website: www.havells.com
Safety Light Curtain Line
R
ockwell Automation has expanded its Allen-Bradley Guardmaster GuardShield safety light curtain line with the addition of three cost-effective options. Designed to provide end users with improved functionality, configuration flexibility and installation, the new safety light curtains include the GuardShield Safe 4 with an integrated laser alignment system, the GuardShield Cascadeable Micro 400, and the GuardShield Safe 4 PAC. Safety light curtains are photoelectric presence sensors specifically designed to protect plant personnel from injuries related to hazardous machine motion. Also known as AOPDs (Active Opto-electronic Protective Devices), light curtains are an alternative to mechanical guards. They are ideally suited for applications where personnel need frequent and easy access to a point of operation hazard. Safety light curtains consist of an emitter and receiver pair that creates a multi-beam barrier of infrared light in front of,
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Diamond Abrasive Floor Preparation System
T
he Malish Corporation has introduced Diamabrush, a diamond abrasive floor preparation system for concrete floor polishing, mastic removal and hardwood prep. The new system comprises four different tools, each designed to be used on standard low pressure commercial cleaning machines including single discs, walk behind auto scrubbers and ride-on auto scrubbers. For preparing a concrete floor for epoxy recoating, the Diamabrush system offers a 25 grit spring metal tool. This brush flexes to hit the highs and lows of the epoxy floor to scarify and prep the epoxy for a recoat. For concrete polishing, the Diamabrush system offers a six tool system to grind and hone trawled concrete floors: 100 grit metal, 100 grit polymer, 200 grit polymer, 400 grit polymer, 1000 grit polymer, and 2000 grit polymer. To remove mastic, the Diamabrush mastic removal tool is specifically designed to do the job efficiently after a VCT, tile floor or commercial carpet pull-up. The Diamabrush hardwood prep tool removes polyurethane off of hardwood floors. A 50 grit metal blade makes easy work of removing the black felt and mastic off of a wood floor. Malish Plastics Tel: 1-800-3217044 E-mail: daveh@malish.com Web: www.malishplastics.com
or around, a hazardous area. When any of the beams are blocked by intrusion in the sensing field, the light curtain control circuit sends a signal to the machine’s e-stop. The new GuardShield Safe 4 safety light curtain is equipped with an integrated laser alignment system, allowing for simplified setup and installation. Users can activate or deactivate two visible laser elements located at the top and bottom of the GuardShield Safe 4 safety light curtain by touching the transmitting element, allowing for faster and easier light curtain alignment. The GuardShield Safe 4 safety light curtain is a self-contained, optically synchronized, transmitter and receiver safety pair. Available in both 14 mm and 30 mm resolutions, the GuardShield Safe 4 safety light curtain is offered in a number of protective heights ranging from 120 mm up to 1920 mm, in increments of 120 mm. The GuardShield Cascadeable Micro 400 safety light curtain is a Type 4, “threebox” safety light curtain designed for small assembly machines in ambient operating environments where mounting space is limited. Offered in 14 mm and 30 mm resolutions, this SIL 3-rated safety system offers expanded functionality through the required MSR42 multifunction safety module. In this configuration, the Micro 400 safety light curtain improves flexibility for applications requiring multiple light curtains or other safety devices, such as safety laser scanners, E-Stops or safety switches. The GuardShield Safe 4 PAC light curtain is a self-contained, optically synchronized, “two-box” safety light curtain offering an expanded operating range.
Benchtop Spectrophotometer
Rockwell Automation Tel: 91-120-2895245 Website: www.rockwellautomation.com
Hach Company Tel: 1-970-6693050 Website: www.hach.com
industry 2.0
H
ach has introduced the DR 3800 benchtop spectrophotometer which features high-speed wavelength scanning in the entire visible range. This instrument can be used for
method development or maintaining consistency of coloured products. The DR 3800 spectrophotometer has an intuitive colour touch screen user interface, which clearly displays warnings in red. Through the on-screen help guide, working procedures are available at the touch of the screen, reducing errors and the need for printed methods. The optional Link2SC software allows for easy comparison of lab and process measurements, providing the user with timely information to control plant processes. The instrument can be used for more than 240 analytical methods, including more than 30 TNTplus reagent vial tests that provide innovative barcode labeling for reliable, automatic method detection.
- technology management for decision-makers | june 30, 2009
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product update Visual Spinning Indicator
C
enlub is now offering an entry-level flow indicator from Flow-Mon. The yellow PPS plastic spinner is fitted in a precision moulded glass dome, and operates over a wide flow range. The device starts to rotate once flow has commenced, which can be as low as 0.7 lpm. The flow indicator can be mounted in both horizontal and vertical orientations, and offers bi-directional flow indication with low pressure losses. The body is is in stainless steel or bronze, and is suitable for water and other clear liquids. It can be fitted to pipes ranging in size from 8 mm to 25 mm. Cenlub Systems Tel: 91-129-2255180 E-mail: sales@cenlub.com Website: www.cenlub.com
a drive coupled with an oversized auger style channel screen.operation, the shredder with cutter cartridge technology finely shreds all the heavy solids in the flow. The shredded particles are subsequently captured on a fine screen and intensively washed. As the solids are conveyed up the transport, and free water drains back into the channel. The solids are discharged into a bin or conveyor. Franklin Miller, Inc. Tel: 1-973-5359200 E-mail: info@franklinmiller.com Website: www.franklinmiller.com
Low Harmonic Drive
D
anfoss Industries has launched its first mass produced VLT low harmonic drive. The latest addition to Danfoss’ prominent VLT series of drives, the VLT low harmonic drive
Screening System
F
ranklin Miller has launched the SLX system, which provides fine screening for dense institutional wastewater applications. The new system effectively handles concentrated solids including clothing, sneakers, sheets, blankets, wood and other debris that clog and cause backups in units not built for heavy institutional effluent service. It screens, washes, conveys, and compacts wastewater solids in one integrated, easy to install system.The Spiralift SLX is provided with shredder, screen, solenoid valve, spray wash manifold, level sensor and PLC-based control system in a NEMA 4x enclosure. The unit features a heavy-duty shredder with a 15 HP motor, and
Danfoss Industries Tel: 91-44-66501555 E-mail: danfoss.india@danfoss.com Website: www.danfoss.com
mimimises the harmonic disturbances on the supply grid by actively imposing currents into the grid so that the high quality sine wave of the grid current is restored. The new drive is built on a highly modular technology platform which has been successful in proving functionality, quality and overall reliability in other parts of the broad VLT drives program. It has the same modular build-up as Danfoss’ normal high power drives and share features like high energy efficiency, backchannel cooling and user-friend-
Continuous Duty Pump
F
low International has introduced the JetPlex pump that is designed to run 24 hours a day, seven days a week. The pump incorporates Flow’s patented automatic control valve, or Pac-V, to ensure quick reaction when changing operating pressure or opening and closing the flow of water through the cutting nozzle. According to the company, Pac-V is also easier and more reliable to use than designs that utilize a bypass valve or dual orifice design to control water flow. Another benefit of Pac-V technology is that it allows the use of a wide range of orifice sizes. Flow International Corporation Tel: 1-253-8503500 E-mail: info@flowcorp.com Website: www.flowcorp.com
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ly operation. Due to the modular principle, most elements are produced in large scale. The drives continuously regulate according to the network and load conditions without affecting the connected motor. They are motor friendly with output impulse and shaft voltages compatible with motors conforming to IEC60034-17/25, as per standard VLT drives. Available in the power range of 160 - 710 kW, it meets the toughest harmonic recommendations and provides full readout of the unit performance towards the grid including graphical overview of grid behaviour. It also meets the IEEE519 recommendation for short circuit ratios >20 and is suited for low voltage power supply grids, including generator powered installations like in back-up systems. The drives are available in VLT AutomationDrive, VLT AQUA Drive and VLT HVAC Drive configuration, where the standard drive ratings cover 0.25kW to 1.4MW and include a range of passive and active harmonic mitigation solutions. The new low harmonic drive is expected to help enhance capability to meet the increasing demands for clean power grids in focus business areas such as industry, food & beverage, water & wastewater and HVAC/R.
- technology management for decision-makers
Earth Leakage Relays
E
Power Engineering offers MK 301A and MK 302A earth leakage relays manufactured by Mikro Berhad, Malaysia. The two relays are equipped with trip starting and relay tripped indicators, and have the ability to detect the absence of proper connection to current transformer for extra safety. They are also highly immune to electrical interference. For both relays, the supply voltage requirement is 198 to 265 V AC with the rated frequency at 50/60 Hz, and a power rating of 3 VA. The sensitivity adjustment ranges from 0.03 A to 30 A, with a delay time adjustable from 0 to 3.0 seconds. The MK302A relay also includes features such as safety output contacts, leakage level indicators, remote test and reset functions. E Power Engineering Tel: 044-24337598 E-mail: epower@airtelmail.in Website: www.epowerengineering.net
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Case Packer & Palletizer Combo
E
SS Technologies has integrated the Bergami Model K 15 Horizontal Case Packer with its Robotic Mini Palletizer Cell to create a high speed solution for case packing and palletizing cartons, bundles, trays, pouches, etc. for the pharmaceutical, nutraceutical, cosmetics and consumer goods industries.
Full cases are closed using either self-adhesive tape or hot melt glue. The K 15 case discharge conveyor integrates directly into the infeed of the ESS Robotic Mini Palletizer Cell, where a FANUC robot with ESS-designed vacuum or gripper style end-of-arm tooling (EOAT) picks one or more cases from the conveyor and places them on the pallet in a preprogrammed pattern. Because the palletizer is robotic, no case accumulation is required at the palletizer infeed, further reducing cost and required floor space. ESS Technologies Tel: 1-540-9615716 Website: www.esstechnologies.com
Inductive Sensors The space-saving design requires an area measuring 17’-1” x 7’-7”, and features a FANUC M-20iA robot. It can, however,be equipped with other robot models, depending on the payload and reach requirements of the application. The K 15 is capable of packing up to 15 cases per minute, while the integrated robotic pallet cell handles up to 30 cases per minute. Fast changeover (15-20 minutes typical) and touch screen controls make the system operator friendly. Designed for packaging facilities where floor space is at a premium, the case packer/palletizer combination brings high performance to any end-of-line packaging application. The K 15 Case Packer uses high accuracy mechanics and incorporates a true “Balcony” design allowing complete access for product changeover, inspection, and maintenance. Product enters the K 15 infeed in single file. It is collated and sent to the servo driven down-stacker to form the complete pack pattern. Case blanks are pulled from a magazine, erected, and placed in a servo driven lug chain.
A
utomation Systems Interconnect has developed a new line of inductive sensors in a wide range of sizes--ranging from a miniscule 4 mm to larger 30 mm ones. Along with the option of square or rectangular shape, the sensors come with NAMUR, AC/DC, NPN or PNP output, NO or NC output, and programmable output. The high temperature inductive sensors can operate in environments up to 230 degrees centigrade. For high-heat and standard applications, a choice of shielded and unshielded models is available. The sensors are available in 2,3 or 4-wire, connector or cable, and are equipped with a 360° LED indicator for amplified detection.
Rework Platform eamworks has launched Spark 400, a multi-process platform for assembling low to medium volume PCB lots, automatic rework and prototype assembly. It concurrently performs paste dispensing, component placement and laser soldering. The system uses four lasers that can work simultaneously and independently, without impacting already assembled components. Spark 400 is suitable for automated mass rework, and it can remove and replace even in tight spaces as low as 20 mils. Spark 400 is useful for reworking boards of cell phones, PDAs, laptops and desktops. It is capable of producing high quality assemblies at a very high speed. The most important feature of Spark 400 is that, it is able to solder moisture sensitive components without baking, resulting in faster cycle time. The other features of Spark 400 include adjustable conveyor, 29 reel feeder, supporting plate, automated tray feeder, nozzle replacement station, up looking camera and bottom heat controller. Sumitron Exports Tel: 91-11-41410631 E-mail: sumitron@vsnl.com Website: www.sumitron.com
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H
avells India Ltd has introduced its a new super premium designer range of distribution boards, viz., DBOXx. The new distribution board opens with a push button knob without any extra instrument. These boxes are sophisticatedly designed, efficient, safe to install and versatile to use. In addition, it is supplied with added safety features like circuit breakers and shock proof integrated mechanism. It is suitable for surface and flush mounting. It is supplied with top and bottom removable gland plates with adequate knockouts for easy wiring. The distribution board comprises copper bus bars, brass neutral links and earth links to facilitate effective distribution of current. It incorporates all the features of safety devices, which serves to protect the electrical installation in a given area. The product is available in three ranges including SPN DD 8W, SPN DD 12W, SPN DD16W with pearl ivory colour. Its voltage rating is 240 V. Havells India Ltd. Tel: 91-120-4771000 E-mail: marketing@havells.com Website: www.havells.com
Utility Carts
K
Automation Systems Interconnect Tel: 1-877-6505160 Website: www.asi-ez.com
B
Designer Distribution Board
-Tool International (KTI) has launched an improved design for four-drawer utility carts. The new features integrated into the standard model include two gas struts in the top storage tray for easy opening and closing, heavy-duty 5-inch x 2-inch casters for improved mobility, one-handed drawer locks that operate only when the top lid is closed, and an additional side storage tray for taller items, such as aerosol cans. The other features of the cart include fully-lined drawers and storage trays, a top-locking tray, a large bottom storage tray for oversized items, a 22-slot screwdriver/prybar holder, and steel ball bearing slides for smooth and quiet operation. These easy-to-assemble utility carts are available in five colours. K-Tool International Tel: 1-800-7626002 Web: www.ktoolinternational.com
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- technology management for decision-makers | june 30, 2009
51
product update Test Gas Blender
K
in-Tek has launched AutoBlend test gas blender, which is a computer-controlled, multi-channel gas blending system for supplying a continuous flow of adjustable test gas mixtures. Applications include sensor evaluation, analytical methods development and validation, contaminant effects testing,
Permeation tubes installed in each channel emit a small, precisely known flow of each component compound. Permeate from each tube mixes with a carrier gas flow to form a base mixture for each channel. Mixture composition can be adjusted to suit application requirements. Kin-Tek Laboratories Tel: 1-409-9383627 E-mail: sales@kin-tek.com
Circular Saw
M
ilwaukee Electric Tool Corporation has introduced a new 10-1/4-inch circular saw (Model 6470-21) that is lighter and easier to use. The new saw is 1-1/2 lbs lighter than the existing model, and has a catalyst testing, odour simulation, gas filter testing and other applications requiring complex gas mixtures. The system can add multiple trace concentration components to a flowing gas stream. Permeation tubes are used to add trace components to the gas mixture. Concentrations from hundreds of parts-per-million down to low parts-per-trillion can be achieved, and component concentrations can be varied independently. The AutoBlend features six independently controlled permeation channels. Each channel can contain up to eight compounds for a total of 48 compounds. Additionally, there are two dynamic headspace channels that allow controlled addition of common environmental background vapours. Mixtures can be supplied dry or humidified and can be delivered at up to 20 psi pressure. The concentration of each component is traceable to NIST through physical standards.
large bale handle with cushion grip designed to increase comfort and provide better control. With its high bevel capacity of 60°, the 6470-21 is able to make extreme bevel cuts for roof rafters or trusses. Additionally, the saw maintains its depth of cut capacity for cutting 4-inch material on a single pass. Milwaukee Electric Tool Corporation Tel: 1-262-7813600 Website: www.milwaukeetool.com
Five-Axis Machine Accessory
H
aas Automation has launched a new 5-axis machining accessory, the TR160Y dual-axis trunnion rotary table. The TR160Y is designed to mount in the Y direction (front to back on the table) of a mid-size VMC. At less than 25” inch wide and only 20” inch deep, the TR160Y easily fits on one end of the machine’s table, freeing up the remainder for additional fixtures or vises. The TR160Y has a 160 mm T-slot platter, and will swing parts up to 7.5 inches in diameter. The maximum platter capacity is 80 pounds. The trunnion provides ±120 degrees of tilt, and 360 degrees of rotation for full simultaneous 5-axis motion. Powerful brushless servomotors on both axes of the TR160Y provide 150 ft-lb of torque on the A-axis, and 100 ft-lb of torque on the B-axis. Brake torque is 300 ft-lb and 100 ft-lb respectively, and speeds are 130 deg/sec on the rotary axis and 100 deg/sec on the tilt axis. The trunnion’s precision-ground platter of heat-treated 4140 alloy steel has six standard 5/8” inch T-slots equally spaced at 60 degrees for easy fixturing. Three servo-control configurations are available, making the TR160Y easy to interface to almost any machine. Haas Automation Tel: 1-805-2781800 Website: www.haascnc.com
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june 30, 2009 | industry 2.0
- technology management for decision-makers
Titanium Booster Technology
M
akino has launched new sinker EDM titanium booster technology, which enhances productivity and capability in roughing processes of titanium and titanium alloys. The new technology addresses previous issues associated with rough machining, production of large pockets or cavities in titanium, high wear rates of expensive specialty cutting tools, and high electrode wear. Titanium booster technology utilizes a 60 Amp power booster and new machining conditions to increase roughing speeds up to 80 per cent while reducing electrode wear to nearly a third that of previous and existing EDM technologies. Graphite based electrode material is used for processing, eliminating the need for high cost copper and copper tungsten materials. Makino Tel: 1-513-5737200 Website: www.makino.com Website: www.kin-tek.com
Pedestal Grinding Machine
P
rem Brothers offers the ‘Power Master’ extra heavy duty pedestal grinding machines, which are suitable for jobs in engineering workshops, factories, forging units, foundries etc. Each grinding machine is complete with an electric motor, and is suitable for operation on 415 V 3-phase supply. The machine is equipped with a starter, two grinding wheels, two MS wheel guards with exhaust outlets, and two adjustable tool rests. The motor is fitted in the base of the grinding machine, and the machine is powered by a two-speed V belt drive arrangement for increasing the spindle RPM when the grinding wheel diameter is reduced. This helps to maintain the correct grinding speed. Prem Brothers Tel: 91-11-28117456 E-mail: powrmstr@vsnl.com Web: www.powermaster-india.com
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