Industry 2.0 January 2010

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VOLUME 09

ISSUE 06

january 31, 2010 Vol. 09 Issue - 06

T E C H N O LO GY M A N AG E M E N T FO R D E C I S I O N - M A K E R S

2.0 JAN 31, 2010

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eRP Material requirements planning enables effective production management

ouTsouRcing Adept service providers enable manufacturers to focus on core activities

Machine Tools Buyers seek competitive prices and advanced features

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editorial Vol. 09 | Issue 06 | january 31, 2010

Managing Director: Dr Pramath raj sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: r Giridhar Assistant Editor: P K Chatterjee Sub-Editor: reshmi Menon dEsign Sr. Creative Director: jayan K narayanan Art Director: Binesh sreedharan Associate Art Director: anil VK Manager Design: Chander shekhar Sr. Visualisers: PC anoop, santosh Kushwaha Sr. Designers: Tr Prasanth & anil T Chief Designer: n V Baiju Photographer: jiten Gandhi brand managEmEnt General Manager: nabjeet Ganguli salEs & markEting VP Sales & Marketing: naveen Chand singh (09971794688) National Manager-Events & Special Projects: Mahantesh Godi (09880436623) National Manager Online: nitin Walia (09811772466) Assistant Brand Manager: arpita Ganguli GM South: Vinodh Kaliappan(09740714817) GM North: Pranav saran(09312685289) GM West: sachin n Mhashilkar(09920348755) Coimbatore: D K Karthikeyan (09843024566) Kolkata: jayanta Bhattacharya (09331829284) Production & logistics Sr. GM Operations: shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP singh, Mohamed ansari, shashi shekhar singh officE addrEss nine Dot nine Interactive Pvt ltd C/o KPT House, Plot 41/13, sector 30 Vashi (near sanpada railway station), navi Mumbai 400703 For any information, write to info@industry20.com For subscription details, write to subscribe@industry20.com For sales and advertising enquiries, write to advertise@industry20.com Printed and published by Kanak Ghosh for nine Dot nine Interactive Pvt ltd C/o KPT House, Plot 41/13, sector 30 Vashi (near sanpada railway station) navi Mumbai 400703 Editor: anuradha Das Mathur C/o KPT House, Plot 41/13, sector 30 Vashi (near sanpada railway station) navi Mumbai 400703 Printed at silverpoint Press Pvt. ltd, D 107, TTC Industrial area, nerul, navi Mumbai 400706.

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Organizational

leadership Is the Key

R Giridhar editor@industry20.com

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he effectiveness of corporate leadership matters not only to the stock markets, but also to the shop floor. That is the finding of a recent research by Kenexa research Institute (KrI), which polled the views of workers about their organization’s senior leadership team.

The study says that the opinions and perceptions of employees about the organization’s leadership team are influenced by a combination of factors. Kenexa found that Indian employees view their senior leadership team as effective, if it quickly responds to marketplace opportunities and competitive threats, makes decisions that demonstrate that quality—and improvement are top priorities, keeps employees well-informed about organizational issues, strives to serve the interests of multiple stakeholders, and recognizes employees for delivering outstanding customer services.

Many of these leadership characteristics, identified by the study, were put to the test during the past 12 to 15 months—when manufacturing companies had to adopt drastic measures to combat the recessionary trends. The good news is that Kenexa’s survey shows that employees in India rated senior leadership effectiveness at 69 per cent (the world average is 51 per cent). This means that corporate leaders and managers in India were able to come to grips with the unfolding situation, and took action that infused

industry 2.0

confidence in employees. Companies took immediate steps to cut waste, enhance product quality, reduce business risks, re-train workers and improve productivity.

The actions helped quickly staunch bleeding bottom lines, reduce the need for job cuts, and the organization to capitalize on the upturn.

Managers can take justifiable pride in this development because a strong leadership team has a significant impact on employee morale, and their engagement levels. employee engagement is a measure of the extent to which employees are motivated to contribute to organizational success, and are willing to apply discretionary effort to accomplishing tasks important to the achievement of organizational goals. engaged employees also take pride in their organization and have higher job satisfaction. over the next few months, one of the biggest challenges for organizational leaders will be—to maintain the enthusiasm of the workforce in sustaining the slew of changes that have been initiated. as the spectre of the recession fades, there is a significant risk that both managers and workers will become complacent, and abandon the new practices and processes in the quest for rapid growth. leaders will also need to ensure that they adopt decision-making methods that are transparent, while ensuring that the organization remains agile. Is this a tall order? Write in and let me know. n

- technology management for decision-makers | january 31, 2010

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Did you know that Cisco has more than 50+ Cisco Collaboration Customers Who Have Deployed over 25,000 Cisco IP Phones

contents materials & processes 34 Lightweight Plastics to Find More Use in Cars Study reveals increasing growth in use of lightweight plastics in car industry.

36 Modernization of Paper Mills Is a Necessity

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Indian paper mills need latest machinery to cope with the rising demand.

facilities & operations 38 Inventory Control to Optimise Business Needs Better inventory control leads to uninterrupted production.

sc & logistics 39 Six Sigma Approach to Reduce Transit Damage A case study describes how an Indian logistics company minimized losses.

information technology 44 ERP Implementation Enhances Productivity Latest software applications have a range of functions for aiding manufacturing activities.

47 Effective Evaluation of CAD Systems Saves Money

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Choosing the right CAD system and proper vendor help in achieving satisfactory results.

cover story 14 CSR as a Growth Accelerator

Faster national growth is achievable through the CSR projects of the manufacturing companies.

20 How to Get the Most of CSR Cover Design: Binesh Sreedharan

Strategic selection and effective handling plan of projects lead to sustainable benefits.

in conversation

manufacturing technology 25 Demand for Automated Machine Tools Increasing Latest trend shows a growing interest for reasonably priced specialty CNC machines.

27 Enhancing the Life Span of Tapered Bearings

31 Mitsuo okaMoto President & CEO Amada Co

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Proper maintenance of bearings help in the smooth running of the machinery and enhances their durability.

41 Christoph reMund Chief Executive Officer DHL Lemuir Logistics, India

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32 Winning Market through Solid Modeling Designing with 3D CAD is much more beneficial than that with 2D CAD.

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management & strategy 50 Strategic Outsourcing of Logistics Manufacturing companies get better results through outsouring logistics activities to right service providers.

opinion 52 Communication Plays a Big Role Behind Success Business communications agencies are creating solutions for many complex problems these days.

departments 01 Editorial 06 Industry Update 43 Advertiser Index 53 Product Update

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industry update Indian economy Set for Solid Recovery

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he Indian economy is all set for a solid recovery in 2010, according to a new study commissioned by the Asian Development Bank (ADB).

The study titled, ‘Impact and Policy Responses—India,’ states that the Indian economy has emerged from the recent crisis relatively unscathed. It notes that India quickly regained growth momentum, mainly due to her own stimulus actions, past reforms, limited exposure of its banks to troubled parts of the global financial system, and the country’s robust domestic consumption.

Prepared by the Centennial Group International, the study observed that India’s gross domestic product in the third quarter of 2009 grew a robust 7.9 per cent from the year earlier. It added that India

was fortunate that the crisis was not protracted. Else, it would have tested the government’s ability to continue fiscal stimulus measures for a long period, and potentially compromised efforts to boost the economy.

According to the report, India will have to improve its fiscal position through more disciplined fiscal management. In addition, to build greater resilience to withstand future crisis, India will also need to provide fast acting social ‘stabilizers’ to help poor communities.

On the monetary policy front, policymakers should make the consumer price index the primary indicator of inflation, instead of the current two-tier measurement system, which leads to inconsistencies and confusion. n

Schaeffler Announces Expansion Plans

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such as reduction in fuel consumputomotive components tions and emissions, improved drivcompany, Schaeffler India, ing comfort, hybridization, cost and has announced extensive exspace savings. LuK India is planning pansion plans including the setting to manufacture new products up of a research and development like hydraulic clutch recentre, modernization of existlease systems in India ing plants and addition for the Indian market, of new product lines. and introduce fricThe company is also tion material for the planning to increase Indian market. its staff of 2,089 by Meanwhile, INA 10 per cent over the India is aiming to next three years. achieve a production Schaeffler volume of 65.8 milIndia consists of lion pieces for 2009. brands of LuK, INA The LuK dry double clutch.

Currently the comand FAG. Anil Shah, The company is working on pany supplies valve president of Schaeffler advanced concepts such as India says, “Our three reduction in fuel consumption. train components, chain drive elements, brands have estaband transmission cages. It is also lished strong relationships with the planning to embark on expansion automotive markets in India. To programmes to supply items like strengthen our position further, we clutch release bearings and water will expand to reach our medium pump bearings to all major automoand long term goals.” LuK is prestive OEMs. n ently working on advanced concepts

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event update Renewtech India 2010

The event will showcase products, technology solutions and emerging technologies in the world of renewable energy.

Venue: Auto Cluster Exhibition Centre Chinchwad, Pune Tel: +91-22-2660 5550 E-mail: info@renewtechindia.com Date: 9 March to Website: www.renewtechindia.com

11 March 2010

Bangalore International automotive expo 2010

The trade show will showcase over 500 world class automotive brands, designs and technology.

Venue: Palace Grounds, Bangalore Tel: +91-80-2234 2611 Date: E-mail: info@biae.in 11 March to Website: www.wmcpl.com/auto 15 March 2010

Diemould India 2010

The event will display new innovative products and manufacturing process, covering the entire gamut of the tooling industry.

Venue: NSE Complex, Goregaon, Mumbai Tel: +91-22–28526876 E-mail: mumbai@tagmaindia.org Date: Website: www.tagmaindia.org 18 March to

21 March 2010

Chemspec India 2010

The exhibition will showcase a wide range of new products, technologies and services from the agrochemical, dyestuffs, biotechnology, water treatment, contract and toll manufacture, cosmetics and healthcare sectors.

Venue: NSE Complex, Goregaon, Mumbai Tel: +91-22-24044477 E-mail: vijay@chemicalweekly.com Date: Website: www.chemspecindia.com 15 april to 16 april 2010

automotive engineering Show 2010

The event will display a wide range of manufacturing technologies, equipment, tools and methods of assembly for the automotive industry.

Venue: Chennai Trade Centre, Chennai Tel: +91-22-4020 1000 E-mail: info@focussedevents.com Date: 14 May to Website: www.focussedevents.com

17 May 2010

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industry update Coal Demand to Buoy Market for Material Handling Systems

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he increasing coal demand, primarily for use in utility power stations, is expected to generate robust demand for material handling systems, according to

A huge proportion of the mining industry’s operations depend on the use of bulk material handling equipment. a report from Frost & Sullivan titled, ‘Advances in Material Handling Systems’. “A huge proportion of the mining industry’s operations heavily depend on the use of specialized bulk material handling equipment,”

explains Menaka S, an analyst with Frost & Sullivan.

The report also observes that the most common trend in the material handling industry is to build equipment that is smaller and smarter.

Equipment are being equipped with extensive electronic intelligence in the form of touch screen interfaces, distributed control functions that obviate the need for bulky control panels, and upgraded software.

The report further adds that in order to ensure greater uptake of material handling systems, new technologies need to be developed to reduce costs and improve return on investment. In the future, green initiatives are expected to increase in the material handling industry.

Industrial users are displaying a preference for environmentally responsible material handling systems that reduce emission levels and produce less noise. n

exports from MSMes Witnessing a Rise

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espite rising costs of raw materials, difficult global market and stiff international competition, exports from the micro, small and medium enterprises (MSMEs) sector is witnessing a rise, according to the Confederation of Indian Industry (CII).

According to the industry survey, 42 per cent of respondents reported an increase in volume of their exports over the past six months, while 9 per cent reported no change in volume of their exports. The survey was conducted to analyse the actual export performance of the MSMEs during the first half of 2009-2010, understand the future export prospects and plans during the second half of 2009-2010.

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In the next six months (i.e.

October 2009 to March 2010), 50 percent of the surveyed respondents are expecting an increase in volume of their exports, with another 15 percent indicating no change in export volumes.

The survey also pointed out that the key limiting factors for the export orders over the next six months are increasing costs of raw materials, international competition, price competitiveness and delay in payments. Salil Singhal, chairman of CII National MSME Council, attributed the growth to the ‘trickle-down effect’ of the stimulus packages announced by the Government of India and the Reserve Bank of India during December 2008 and January 2009. n

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Assocham Urges to Reduce Import Tariffs

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he Associated Chambers of Commerce and Industry of India (ASSOCHAM) has highlighted the need to reduce import tariffs on security related electronic product by at least 50 per cent, in a representation made to the Ministries of Finance and Home Affairs.

Import duties on most electronic security gadgets are currently around 37 per cent, and that on telecom equipment and power conditioners about 12.5 per cent. ASSOCHAM has asked for import tariffs on electronics products to be reduced to 18.5 per cent, and zero per cent on telecom equipment and power conditioners to strengthen security nets in telecom and private sector. n

Measures Needed to Boost Logistics Sector

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he capacity of countries to efficiently move goods and connect manufacturers and consumers with international markets is improving, but much more progress is required to spur faster economic growth and help firms benefit from trade recovery, according to a new World Bank Group survey on trade logistics. Germany is the top performer among the 155 economies ranked in the Logistics Performance Indicators (LPI), which are included in the report The World Bank survey titled “Connecting to says that more progress Compete 2010: Trade is required to spur faster Logistics in the Global growth in logistics.

Economy.” The study is based on a comprehensive world survey of international freight forwarders and express carriers.

“Streamlining the connections among markets, manufacturers, farmers and consumers offers tremendous growth and investment opportunities and should be a top focus for developing country growth strategies,” says World Bank Group President Robert B. Zoellick. n

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industry update tayo Rolls Sets up Forging Facility

The new facility will manufacture forged rolls and engineering forgings.

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ayo Rolls, a subsidiary of Tata Steel, has set up an integrated forging facility to manufacture forged rolls and engineering forgings at Jamshedpur. The company has invested Rs 168 crore in a new

plant, and has entered into a license and knowledge agreement with Sheffield Forgemasters International of UK for transfer of technology for the manufacture of forging quality ingots, including round ingots, forged bars, engineering forgings and forged rolls. The products will cater to the requirements of oil and gas, power, wind mill, sugar, cement and steel sectors.

Tayo’s new facility comprises an arc furnace, ladle furnace and vacuum degassing unit for manufacturing forging quality ingots—and a forge shop with 2,500 tonnes open die forging press. n

Bharat Forge Opens Ring Rolling Unit

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harat Forge has diversified its non-auto business by commissioning a ring rolling facility at its Centre for Advanced Manufacturing in Baramati, Maharashtra. The new facility is equipped with a 4000 ton blanking press, a radial axial ring rolling machine, modern furnaces and robot manipulator from Germany-based Glama. The plant will produce slewing rings, flanges, bearings and gear blanks. The products will

primarily cater to the wind energy, thermal energy, defence, oil and gas, material handling equipment and bearing industry.

B N Kalyani, CMD, Bharat Forge, said, “The commercialisation of the ring rolling facility successfully completes the first phase of our non-auto foray. This will enable us to achieve our target of having 40 per cent of our revenue from the non-auto sector by 2012, from current levels of 21 per cent.” n

ZF Establishes New Plant in Pune

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F India has established its first wholly owned manufacturing facility in Nanekarwadi, Pune. The plant, measuring 2500 square metres will meet the demands of the construction equipment market in India. Klaus Sicker, Vice President & Head of the Off-Road Division for ZF India says, “The inauguration of the plant marks the launch of rear axles for backhoe loaders. Our Indian production portfolio will soon be followed by full power shift transmissions for backhoe loaders and other products important to India’s off-road market.”

Founded in 1915, ZF is an automotive supplier for driveline and chassis technologies, catering to different segments of the auto industry like aviation, marine, passenger segment, commercial vehicles, construction equipment and agriculture. n

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NPCIL, L&T Collaborate on Heavy Forgings Plant

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uclear Power Corporation of India (NPCIL) and Larsen & Toubro (L&T) have joined hands to set up a steel manufacturing and heavy forging plant in Surat. The two companies have formed a joint venture company to manufacture special steels and ultra heavy forgings for nuclear power plants and other core sector industries.

The Surat plant will manufacture ingots weighing up to 600 MT each, and will have a heavy forge shop equipped with a forging press. The facility will supply finished forgings for nuclear reactors, pressurizers and steam generators, in addition to heavy forgings for critical equipment in the hydrocarbon sector, as well as for thermal power plants and steel plants. The plant will have direct access to a water front at Hazira to facilitate multi-modal transportation and exports. n

Suzlon Bags Repeat Order from GaCL

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uzlon Energy has won an additional order from Gujarat Alkalies and Chemicals (GACL) to set up, operate and maintain a 21 MW wind energy project at Maliya Miyana in Gujarat. The project is GACL’s third with Suzlon, and will comprise 14 units of Suzlon’s S82 1.5 MW wind turbines. It is scheduled for completion and commissioning by March 2010.

The project is exThe project is expected to pected to increase increase GACL’s wind power GACL’s total wind capacity to 83.75 MW. power capacity to 83.75 MW, adding 21 MW to the 62.75 MW already operational in two wind farms in Gujarat.

The power generated from this project will be used for GACL’s captive consumption.

GACL produces caustic soda and chlorine.

The company has two manufacturing facilities, in Vadodara and Dahej, in Gujarat. n

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industry update MAIT, GVICL to Set up Electronic Cluster

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and development and manufacturhe Manufacturers’ Association ing.” The cluster will be promoted to for Information Technology relevant trade-bodies and industry in (MAIT) and Gujarat Vittal Inother countries, espenovation City (GVICL) cially Korea, Taiwan have signed a Memoand Japan. randum of Agreement MAIT and GVIC are (MoA) to strengthen planning to recomthe IT and electronmend a framework to ics sector in Gujarat. the Government Pankaj Saran, CEO of Gujarat to help of GVICL says, “The The proposed cluster will support and nurproposed cluster will facilitate the development of ture the electronics facilitate the developentire electronics ecosystem. industry. Recommenment of entire electrondations are also being put together ics ecosystem, so that all segments for a curriculum on electronics and of the value chain are present to IT in the universities, colleges and provide a sustainable framework training institutions. n for innovation, education, research

McNally Signs Agreement with Hiflux

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cNally Bharat Engineering has entered into an exclusive technical partnership agreement with Hiflux. The agreement is for constructing seawater desalination, water and wastewater plants in industrial, municipal and agricultural sectors.

In India, there is a strong demand in seawater desalination projects.

With this technical alliance, McNally Bharat Engineering is planning to strengthen its capabilities in seawater desalination.

Headquartered in Kolkata, McNally Bharat Engineering is a part of the Williamson Magor Group. Hiflux is a technology company specialising in water desalination. The company is based in Singapore. n

INOX India Picks up Stake in CVA

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ryogenic engineering company, INOX India, has acquired a majority interest in US-based Cryogenic Vessel Alternatives (CVA), which manufactures cryogenic transportation equipment. Together, the entity will offer cryogenic storage, transportation and distribution products for the global market.

CVA has manufacturing and repair facilities for cryogenic transportation equipment in Texas, USA. Besides, the company has

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presence across Canada, China and Turkey. The two companies plan to leverage their potential in their respective fields through this acquisition. INOX India has a strong position in stationary storage tanks, while CVA specialises in large cryogenic transport tanks and mobile oil or gas field pumping units.

INOX India has product offerings that span the entire cryogenic value chain such as storage, transportation and distribution. n

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Infotech Acquires Daxcon Engineering

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nfotech Enterprises America, a wholly-owned subsidiary of Hyderabad-based Infotech Enterprises (IEL), has acquired Daxcon Engineering of Illinois, USA in an all-cash deal.

Established in 1996, Daxcon is an engineering services company specialising in off-highway heavy equipment engineering (heavy, mining, construction and farming equipment) and commercial vehicles. Infotech specialises in the engineering services outsourcing market space.

B V R Mohan Reddy, Chairman & Managing Director of Infotech Enterprises says, “With this acquisition, Infotech will inherit domain expertise, strong long-term customer relationships and a US delivery capability—all of which are very critical to accelerated growth.” n

Four Soft Forms alliance with Logistics Players

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our Soft India has roped in top players of the logistics industry to form a strategic initiative called the Freight Forwarding Industry & Four Soft Alliance (FFIFA). Palem Srikanth, Chairman, Four Soft, said, “The logistics industry has been facing serious problems due to lack of standardized business processes.

It has made them less competitive and led to lack of control on their IT budgets. We believe this is the right time for leading players of the industry to come together and adopt a collaborative approach to the common indusThe logistics players will try problems.” adopt a collaborative Through the platapproach to the common form, leading logistics industry problems. players including DHL, Geodis Wilson, CEVA, Agility, FedEx and Continental Group will drive efficiencies in the logistics software deployment. The members will collaborate and collectively suggest the adoption of best practices across the industry. n

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cover story

picture courtesy: Siemens

Students gaining computer skill in Social center built in Thenampattinam— one of the Tsunami affected villages in Tamil nadu.

ACCeleRAting the

GrowTh Vehicle Putting

CSR Gear on Top

Corporate Social Responsibility is the key to sustaining business in the long run. Manufacturers, who voluntarily and sincerely shoulder this responsibility, can successfully create a good brand image over a time and attract social support, which are the best assets that they can look for sustainability. by p. k. chatterjee

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s it that difficult to imagine the excitement of the villagers in the hinterlands of Gadimoga and Bhairavapalem panchayats of Andhra Pradesh, who have just seen the true transparency of potable water through Rural Water Supply (RWS) scheme, and experienced the long-desired luxury of speedy transportation through the Main District Road (MDR)?

Both the projects have been done recently as the roll-out of Reliance Industries’ Corporate Social Responsibility (CSR) plan. RIL along with the local district administration there have delivered a permanent solution to the severe drinking water shortage problem faced by the villagers. The company has built water tanks and overhead reservoirs in Gadimoga and Chinavalasala villages. Also, with the support from the company, a pipeline has been laid for water distribution to the villages in Gadimoga and Bhairavapalem. The almost 10 km long two-lane MDR connects Bhairavapalem with Tallarevu on NH-214.

This helps more than 35,000 village dwellers reach their agricultural produces and fishery products to the district market very fresh and fast.

Although CSR is not a new concept, especially in the Indian sub-continent, where business families like Tatas, Birlas, Godrejs and some others have got a rich heritage of leveraging social causes almost wayback from the turn of the nineteenth century, with passage of time the focus of CSR has been widening, and today its scope has extended beyond mere humanitarian issues to environmental causes where the gamut is literally unlimited.

Thus, in today’s scenario, defining CSR is not very easy. Although, manufacturing organizations hold varying views, which are mostly influenced by the factors such as, the nature of business and products, manufacturing site, pollutants or harmful outlets or byproducts generated by them, effect of economizing operational procedures and the firms’ economic capability etc., the common target is to achieve a balance of socio-economic and environmental imperatives maintaining the shareholders’ or investors’ interest. Of course to a large extent, pressure of the country laws in the form of compliance,

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also direct the CSR policy of a manufacturing organization.

According to Federation of Indian Chambers of Commerce & Industry (FICCI), CSR is slowly, but surely, being recognised as a priority area the world over. The general understanding on CSR, till sometime back, was deeply rooted in the concept of philanthropy. However, the emerging concept to CSR is focusing on going beyond charity. The companies are now expected to integrate social, environmental and ethical concerns, in addition to financial concerns, into company’s business process.

In common parlance, in India, as on date, CSR is being interpreted by the manufacturing organizations as an effort to compensate the losses caused to the environment because of their operations, as well as to improve the overall quality of life of the people—mostly nearby their operating areas. This aims at becoming environmentally and socially sustainable, maintaining the profitability of the operations. So, it is an urge to make the best of today without damaging or compromising the resources of tomorrow, which may be seen from environmental, social and economic angles.

Major focused areas

In the Indian context, rather from the standpoint of a developing country, the CSR focus areas of the manufacturing companies are quite varied, although they may be categorised under three major heads— environment, society and economy. Of late with the growing environment consciousness in the nation, the manufacturers are also adding more heavily weighted importance to this aspect of CSR. However, foci on socio-economic development are also increasing appreciably.

Few areas where very prominent stress is visible include—in the environment category: carbon reduction effort, product recycling, waste disposal, water purification and conservation, animal protection and prevention of cruelty towards animals, in socio-economic front: education, social welfare, motivating people for self-help, safety, medical facility, prevention of diseases, women empowering, prevention of child labour, care for senior citizens’ interest, encouragement of sports, heritage, culture etc.

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CSR is close to my heart and we are working day and night for the benefit of the underprivileged children in the country. Through computer education, mid-day meal and Bal Chetna Anganwadi project, we would be touching the lives of about 2.5 million children in coming 3-5 years time.”

Anil AgArwAl Group chairman VedanTa reSourceS

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cover story

Q&A

“We care for carbon economy”

Q: what’s your view on Corporate Social responsibility (CSr)?

A: cSr is a part of any corporate entity. i think, every person whose acts can have an impact on society, environment or to a group of people whether related or unrelated has a social responsibility. every business organization should embrace responsibility for the impact of its activiVimal Kumar Somani ties on the environment, consumers, employmd & ceo ees, communities, stakeholders and all other Gujarat Foils members of the public sphere. Furthermore, every business firm should proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. essentially, cSr is the deliberate inclusion of public interest into corporate decision-making, and the honouring of a triple bottom line: People, Planet and Profit.

Q: why’s CSr gaining so much importance these days?

A: The term cSr came in to common use in the early 1970s, after many multinational corporations were formed, although it was seldom abbreviated.

The term stakeholder, meaning those on whom an organization’s activities have an impact, was used to describe corporate owners beyond shareholders as a result of an influential book by R Freeman in 1984. at that time, as the social, economic and environmental scenario was much less complicated than that we see these days, the profit making company’s just used to donate money for social causes based on their whims and fancies. But today, all business runners are realizing the importance of uplifting the society as well as preventing damage of the environment, therefore, they are coming up with cSr projects. if the society does not grow where will you get skilled manpower to run your machines? and who will buy your sophisticated products? if the environment is not livable, where will you be? where will you set up your factory and for whom? it’s so simple.

Q: As there is no fixed standard of CSR as on date, how to distinguish CSR activities from others?

A: whilst there is no recognized standard for cSr, organizations, such as (say for example) the united nations adhere to the Triple Bottom line (TBl). it is widely accepted that cSr adheres to similar principles but with no formal act of legislation. The un has developed the principles for responsible investment as guidelines for investing entities.

Take it in a very simple way, you being the manufacturer of a particular product, you know its future requirements from the society or environment as well as its present effects on the society and environment. So, take up projects that will help you to sustain your business, and do good to others.

That’s how you can discharge your cSr. Q: what’s the best CSr practice in gujarat Foils?

A: we are following the path of carbon economy. we are using wind power in our industry. also, we are going to set up a 30 mw captive green power plant soon.

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Role of the corporates

Almost all of the large manufacturing organizations in India are involved in some or other kind of CSR activities. The trend is now flowing down to the small and medium enterprises’ level too. From the notion of charity, today there is a visible shift in paradigm towards responsibility. It bids fair that the famous thought of Arthur Page—“All business in a democratic country begins with public permission and exists by public approval,” is now being realised at most of the Indian manufacturing organizations irrespective of their business volumes.

Vedanta Resources group has strengthened its CSR programmes across all its operating states in India. Its holistic approach encompassing health, education, livelihood, self help groupwomen empowerment, vocational training to rural youth, schools, mid-day meal to children, infrastructure development, integrated child development scheme and other projects are impacting the lives of millions of people in Rajasthan, Orissa, Chattisgarh, Tamil Nadu and Goa. According to Sangita Jindal, Chairperson, JSW Foundation, “The CSR initiatives of JSW Group are undertaken through the JSW Foundation. All social initiatives are carried out with a focus on ‘Community Development through People for People,’ wherein vocational training, agriculture development, garbage management, health initiatives, women empowerment, educational initiatives and art, culture and heritage preservation activities are undertaken. Annually, JSW allocates 1.5 per cent of profit after tax for community development works.”

Employee Social Options (ESOPs) is one of the most effective initiatives of Mahindra & Mahindra’s CSR programme. ESOPs is a Mahindra pledge whereby members of the Mahindra ‘parivaar’, on any given day, would be contributing to society somewhere in the country.

The Mobile Medical Van project is a part of M&M’s sustained ESOPs programme.

Larsen & Toubro is involved in a range of CSR activities spanning from environmental preservation to rural and social development.

It has taken giant strides in promoting safety, health and hygiene, both within the corporation and externally. The company’s rural development programmes touch the lives of people in remote villages and isolated communities. It offers a comprehensive package of medical services to the community. It has

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ground under their growth wheel, and especially after the hit of global economic slow down, this is not the right time to discuss their CSR activities.

A number of business associations and federations in India, such as FICCI Socio Economic Development Foundation (FICCI-SEDF) and The Associated Chambers of Commerce and Industry of India (ASSOCHAM) have been actively leveraging the aspect of CSR through their members.

also set up several full-fledged schools and runs nurseries of talent. Initiatives against HIV/AIDS are part of L&T’s wide spectrum of health and welfare programmes for the community.

At Siemens India, the CSR programme is three fold, namely: Social Responsibility Programmes—that includes long-term projects with employee volunteering and programmes on learning and research, Crisis Actions—that means providing aid for victims of natural disasters and health emergencies and Cause-based Support— meaning supporting causes like environment, disability, issues of the senior citizens and promoting art / culture / music, sports. The company has also undertaken initiatives to support the hearing impaired students in Vadodara, Chennai and AIDS patients. They have taken up activities like ‘Turtle walks’ with employee participation to protect the endangered species of ‘Olive Ridley’ turtles along the Chennai coast.

SMEs, especially medium enterprises are also gradually coming up with their share of discharging CSR. Ahmedabadbased Rainbow Papers has recently distributed around rupees two lakhs among needy women of Rajpur village through Garib Mahila Sahog Yojna. The company also has donated some new computers to Gujjar High School, Julasan, near its factory, to provide computer literacy to students studying there. There are many other instances of Indian SMEs’ contributions in social works in different regions of the country. However, as Indian manufacturing SMEs are yet to gain a strong and steady

picture courtesy: Vedanta Group

Common modus operandi

dongria Kondha women learn leafplate making art in lanjigarh.

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According to a recent study from ASSOCHAM, about 67 per cent of domestic corporates have chosen the NGOs for partnering closely to discharge their CSR initiatives or projects, while 58 per cent of them prefer government departments for spread of their CSR obligations.

The Chamber also points out that 21 of domestic corporates are working with multilateral or bilateral organizations for their CSR activities. Among 37 per cent corporates, CSR initiative implementation has gone through a well structured foundation and among 58 per cent domestic companies, they have formed a separate CSR department to implement CSR. FICCI-SEDF has been working on to provide an institutional base to the social sector activities of the corporate sector, and to promote corporate social responsibility amongst the members of FICCI. The body has been assisting FICCI members in identification and implementation of social development projects, bringing together various stakeholders for improving the quality of life of people and designing and implementing projects in the social sector.

There is a plethora of NGOs, who are active in implementing social welfare or development projects on behalf of the Indian manufacturing companies. In some cases, there is a joint support to a particular cause or the NGO working onto that field. Also, many NGOs help corporates in planning, staffing and directing corporates’ CSR projects.

According to Siemens’ Head-CSR, Prajakta Malgi-Mirji, “Siemens has been associated with St. Catherine’s Home, a primary school and orphanage for street children in Mumbai for over seven years. So far Siemens has adopted three batches of 115

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We at PepsiCo India have initiated several projects to provide water to villagers who had to earlier walk up to 2 kms every day to collect water. It is very heartening to note that this (Paithan) particular project will benefit nearly 12,000 community members, and the villagers will now have an opportunity of a second cultivation cycle during the Rabi season due to improved availability of water.”

SAnjeev ChAdhA chairman pepSico india reGion

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cover story

Q&A

“We employ differently abled people”

Q: how does AdC KrOne look to the matter of CSR? A: For us, the guidelines outline the company’s value statement with regard to customer, Quality, innovation, Teamwork and integrity. The adc foundation designs, manages and funds communityfocused activities in three core areas: charitable grantmaking, employee K Bala chandran volunteerism and corporate community chairman & md Krone communications relations. under charitable grantmaking, our funding priorities are in the areas of mathematics and science education and technology for non-profits. This is to align our foundation’s focus with our core business while addressing the issue of ‘digital inclusion’ around the globe. as far as employee volunteerism is concerned, adc employees are committed to making a difference by giving their time and talent to the communities where we live and work. Volunteerism takes place at an individual level as well as a corporate level, and adc stands behind these activities by matching employee donations of money. corporate community relations is the third component of our community engagement programme. This is a focused set of corporate community relations activities, particularly in the company’s headquarters community, aimed at achieving our strategic community goals and supporting our community partners.

Q: what’re you doing in india to discharge your CSr? A: in india, we support a wide range of community outreach initiatives through employee grants, collaboration with other organizations and creation of job opportunities. recently, adc employees donated a minimum of 1 day’s salary towards flood relief in North Karnataka and an equal amount was matched and donated by the company as well.

Through adc’s cSr initiative, we regularly extend charitable grants to Samarthanam Trust, which helps children and adults cope with physical and visual disabilities. The akshara Foundation received a grant to support enhancement of mathematics capability in children. having said this, it is not just about making grants - adc supports employment of differently abled people through its contract manufacturers. This was an initiative through the Samarthanam Trust, which acquired a sick unit which was conducting assembly work for an automotive product. The entire work force there consisted of both destitute and differently challenged women. working with them, adc established a contract assembly line and provided them training, which is now stabilized. doing this enabled a means for livelihood and an opportunity to promote social responsibility in business. in the recent past, adc has also provided grant and supported Tata indicom’s FiSh-intelligent navigation Gear (FiShinG) initiative—to enable rural fishing communities to receive updates on weather and information pertaining to the concentration of fish in the sea on their mobile phones.

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children, and contributes towards their boarding and educational expenses on a yearly basis, in addition to refurbishment and upgradation of infrastructure at the school. We also organize counseling sessions and recreation programmes for the children with active employee volunteering.”

Public-private participation (PPP)

As Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motor, recently pointed out in a CII meeting, “Industry must adopt responsible, ethical and good practices within their own factories and offices before reaching beyond to serve the community and society. The government and industry need to partner more closely and effectively to ensure equitable growth and distribution of wealth,” obviously there is still a huge untapped potential.

Although instances of public-private participation is not rare in discharging the responsibilities towards society, it has to be remembered that India being a bureaucratic country of very high order, private enterprises mostly need to get approval from the bureaucrats for their projects, and in many cases it is associated with a political nod. And often that delays the proposed work.

However, some fantastic developments are being observed here through the joint effort of public and private bodies.

Eighty students were inducted to the second edition of Student Traffic Volunteers Scholarship Scheme (STVS) in Kolkata by Hyundai Motor India recently. The Student Traffic Volunteers Scholarship Scheme (STVS) has been conceptualised in collaboration with the Kolkata Traffic Police, with the sole aim of helping the traffic police force to manage and improve the traffic conditions in that city. The scheme also provides stipend to the student volunteers to encourage the students to actively participate in the programme and thus help the Kolkata Police in maintaining discipline on the roads.

Coca-Cola India too in partnership with UNHABITAT and Lake Conservation Authority (LCA) of Madhya Pradesh have completed several Rain Water Harvesting (RWH) projects in Madhya Pradesh. These projects have been constructed in different government schools in four major cities of Madhya Pradesh—Bhopal, Indore, Jabalpur and Gwalior. They have a combined potential to harvest 36 lakh litres of rainwater annually at normal rainfall, and will benefit nearly 18000 children, besides the communities around these schools.

Stressing the need for nutritious diet for young children, the Vedanta Chairman Anil says, “Children are under-weight, almost half of their regular

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The new paradigm

As mentioned at the outset the foci on the CSR aspect is rapidly changing among the Indian manufacturing leaders. From mere charity, it’s now moving towards active participation. In the words of Anand Mahindra, Vice Chairman and Managing Director of Mahindra & Mahindra, “At Mahindras, CSR means not just the sharing of our wealth, but of our time and of ourselves.”

Mahindra Tractors’ pan-India programmes like Mahindra Vishwaas, door step service, mobile vans and Padyatra mark their physical involvement in implementing the chalked out plans. Mahindra FES melded its customer centricity and social concerns with initiatives like Swasth Tractor Swasth Chalak, wherein hundreds of Mahindra FES camps across the nation addressed the health concerns of farmers.

The same thought is reflected when Siemens’ Prajakta says, the company does not believe in merely handing over a donation pay cheque towards a cause, but supports a cause with active participation from the employees.

Of late yet another benefit of discharging CSR is clearly being felt by the Indian manufacturing companies, whereby they are becoming more focused to discharge CSR. A well planned CSR improves bottomline of the company. An ethical, environmenfriendly and socially responsible management along with selling products can buy customers’ and employees’ loyalty.

Thus, the new paradigm is shifing from outsourcing CSR to deploying corporate’s own resources. Also, the philanthropy-based model is gradually shifting towards stakeholder-participation based model. Direct involvement of corporates in development projects will certainly bring in the better management concepts in running the CSR projects—resulting in well organized and accelerated development.

Flip sides need to be eliminated

As Indian manufacturing industry has come of age, right at this stage, it is no better than to be called

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picture courtesy: Vedanta Group

weight. They do not get good nutritious food. We are trying to make sure that through our Vedanta Bal Chetna Anganwadi Project (Integrated Child Welfare Scheme) and Mid-Day Meal Programme, children get proper diet.” Working in over 2050 Anganwadis under partnership with the State Governments of Rajasthan, Chattisgarh and Orissa, in a Public Private Partnership- PPP Mode, the group is already reaching out to about 85,000 children under-this project.

Today, these Anganwadis have a planned diet for the children, water filters for safe drinking water, hygienic toilets, toys, colourful books, utensils etc.

children at a Vedanta Bal chetna anganwadi centre. ridiculous to claim (simple, and not special, say for differently-abled people) employment creation as a part of CSR. Wherever, there is a commercially viable business activity, complementarily there comes up employment opportunities. So, there is nothing to claim about, and under no reasoning that can be recognised as a part of CSR activities. However, the companies who are genuinely innovative to create employment opportunities for the otherwise-not-fit people are really praiseworthy.

Also, instances of misleading claims or advertisements centring around CSR to catch up people’s attention is another sign of weak focus or performance as far as discharging of CSR is concerned.

Both these actions, although not so prominently and frequently practised by the Indian manufacturers, they are seen here at times. As it is not possible to set any benchmarks on CSR, manufacturers’ associations are supposed to attempt to persuade the practitioners to stay away from such practices.

Conclusion

The shifting trend in discharging CSR through active involvement is good as long as the companies can sustain the process of active participation, and they have enough expertise to complete the projects. This will obviously ensure better and more economic utilization of fund provided for the purpose. Yet some other positive avenues that will open through this practice are orientation of the employees, motivation and better understanding of the market demands.

The shift of paradigm from charity to support for value added project partnership will accelerate the growth of the unprivileged people, lead to better distribution of facilities and obviously add vigour to the momentum of national growth. n

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cover story

Making the Most of

CoRpoRate

Social Responsibility For companies that see CSR as an opportunity to strengthen the business, the big challenge is execution. Smart partnering can provide a practical way forward. by tracey keys, thomas w. malnight and kees van der graaf

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oo often, executives have viewed corporate social responsibility (CSR) as just another source of pressure or passing fad. But as customers, employees and suppliers—and, indeed, society more broadly—place increasing importance on CSR, some leaders have started to look at it as a creative opportunity to fundamentally strengthen their businesses while contributing to society at the same time. They view CSR as central to their overall strat-

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egies, helping them to creatively address key business issues.

The big challenge for executives is how to develop an approach that can truly deliver on these lofty ambitions—and, as of yet, few have found the way. However, some innovative companies have managed to overcome this hurdle, with smart partnering emerging as one way to create value for both the business and society simultaneously. Smart partnering focuses on key areas of impact between business and society and develops creative solutions that

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draw on the complementary capabilities of both to address major challenges that affect each partner. In this article, we build on lessons from smart partnering to provide a practical way forward for leaders to assess the true opportunities of CSR.

framework for starting by Mapping current cSR initiative

Mapping the CSR space

There is no single accepted definition of CSR, which leads to plenty of confusion about what constitutes a CSR activity. We can begin to develop a working definition of CSR by thinking about its dual objectives— benefiting business and society—and the range of potential benefits in each case.

Many businesses pursue CSR activities that can best be termed pet projects, as they reflect the personal interests of individual senior executives. While these activities may be presented with much noise and fanfare, they usually offer minimal benefits to either business or society. In the middle are efforts that can make both sides feel good but that generate limited and often one-sided benefits. With philanthropy, for example, corporate donations confer the majority of benefits on society (with potential but often questionable reputational benefits to the business). Similarly, in what’s best referred to as propaganda, CSR activities are focused primarily on building a company’s reputation with little real benefit to society. Some cynics suggest that this form of CSR is at best a form of advertising—and potentially dangerous if it exposes a gap between the company’s words and actions.

None of these approaches realize the opportunities for significant shared value creation that have

been achieved through smart partnering. In such ventures, the focus of the business moves beyond avoiding risks or enhancing reputation and toward improving its core value creation ability by addressing major strategic issues or challenges. For society, the focus shifts from maintaining minimum standards or seeking funding to improving employment, the overall quality of life, and living standards. The key is for each party to tap into the resources and expertise of the other, finding creative solutions to critical social and businesses challenges.

addressing Rural Distribution challenges in india

M

ore than 70 per cent of india’s population resides in rural villages scattered over large geographic areas with very low per capita consumption rates. For multinationals, the cost of reaching and serving these rural markets is significant, as typical urban distribution approaches do not work.

Hindustan Unilever limited’s Project Shakti overcame these challenges by actively understanding critical societal and organizational needs. HUl partnered with three self-help groups, whose members were appointed as Shakti entrepreneurs

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in chosen villages. These entrepreneurs were women, since a key aim for the partnership was to help the rural female population develop independence and self-esteem.

The entrepreneurs received extensive training and borrowed money from their self-help groups to purchase HUl products, which they then sold in their villages. By 2008, Shakti provided employment for 42,000 women entrepreneurs covering nearly 130,000 villages and three million households every month. in the same year, HUl

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sales through the project approached $100 million. Dalip Sehgal, then executive director of New Ventures at HUl, noted: “Shakti is a quintessential winwin initiative and overcame challenges on a number of fronts. it is a sales and distribution initiative that delivers growth, a communication initiative that builds brands, a micro-enterprise initiative that creates livelihoods, a social initiative that improves the standard of life, and catalyzes affluence in rural India. What makes Shakti uniquely scalable and sustainable is the fact that it contributes not only to HUl but also to the community it is a part of.”1 1 V. Kasturi Rangan and Rohithari Rajan, “Unilever in India: Hindustan Lever’s Project Shakti,” Harvard Business School case 9-505-056, June 27, 2007.

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cover story So how does this work? The examples “Addressing rural distribution challenges in India” and “Ensuring sustainable supplies of critical raw materials” illustrate smart partnering initiatives at Unilever. Both address long-term strategic challenges facing the company and help in building creative partnerships that accrue significant benefits to both sides.

Initial questions for any leader should be, “Where have you focused CSR activities in the past?” and, more important, “Where should you focus them for the future?” All organizations have to balance limited resources and effort, so the challenge is how best to deploy yours to maximize the benefits to your business (and your shareholders and stak holders), as well as to society. Start by mapping your current portfolio of CSR initiatives on the framework and ask: What are the objectives of our current initiatives?

What benefits are being created, and who realizes these? Which of these initiatives helps us in addressing our key strategic challenges and opportunities?

Focusing CSR choices: guiding principles

Companies are likely to have activities scattered across the map, but that’s not where they have to stay—nor is it how the benefits of CSR are maximized. Many companies start with pet projects, philanthropy, or propaganda because these activities are quick and easy to decide on and implement. The question is how to move toward CSR strategies that focus on truly cocreating value for the business and society. The accompanying examples suggest three principles for moving toward this goal.

1. Concentrate your CSR efforts. Management time and resources are limited, so the greatest opportuni-

ties will come from areas where the business significantly interacts with—and thus can have the greatest impact on—society. These are areas where the business not only can gain a deeper understanding of the mutual dependencies but also in which the highest potential for mutual benefit exists.

2. Build a deep understanding of the benefits. Even after selecting your chosen areas of opportunity, finding the potential for mutual value creation is not always straightforward. The key is finding symmetry between the two sides and being open enough to understand issues both from a business and a societal perspective.

3. Find the right partners. These will be those that benefit from your core business activities and capabilities—and that you can benefit from in turn.

Partnering is difficult, but when both sides see win–win potential there is greater motivation to realize the substantial benefits. Relationships— particularly long-term ones that are built on a realistic understanding of the true strengths on both sides—have a greater opportunity of being successful and sustainable.

Appling these principles to choosing the appropriate CSR opportunities prompts additional questions—namely: What are the one or two critical areas in our business where we interface with and have an impact on society and where significant opportunities exist for both sides if we can creatively adjust the relationship? What are the core long-term needs for us and for society that can be addressed as a result? What resources or capabilities do we need, and what do we have to offer in realizing the opportunities?

ensuring sustainable supplies of critical Raw Materials

U

nilever’s lipton unit is the world’s largest buyer of tea. in 1999, Unilever Tea Kenya started a pilot program in Kericho, in southwestern Kenya, to apply company sustainability principles to the production of tea. The initiative focused on improving productivity, sustainability, and environmental management, as well as energy and habitat conservation. For Unilever, growing pressure on natural resources means that securing high-quality supplies of critical raw materials in the long term is of paramount strategic importance.

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The Kericho initiative had a direct impact on the company’s ability to control the supply of tea not just today but also into the future, while simultaneously enhancing Unilever’s corporate reputation with both consumers and employees. company leadership felt that higher short-term costs were far outweighed by the long-term strategic edge Unilever gained for its rawmaterials supplies and brands. in 2008, as a signal of its commitment, Unilever expanded the scope of its sustainable agriculture program, pursuing certification from the Rainforest

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alliance for all lipton tea farms by 2015.

For society, the initiative increased farmer revenue through a 10 to 15 percent premium paid above market prices. additionally, it focused on topics of significant concern for governments and farmers alike, including improving farmer skills, environmental protection, and sustainable production methods (such as developing a self-sufficient ecosystem), as well as enhancing local associated jobs. all these factors contributed to strengthened rural income, skills, and living standards.

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Building the business case

In smart partnering, mutual benefit is not only a reasonable objective, it is also required to ensure long-term success. But this commitment must be grounded in value-creation potential, just like any other strategic initiative. Each is an investment that should be evaluated with the same rigor in prioritization, planning, resourcing, and monitoring.

Now you need to define the array of potential benefits for both the business and for society. This will not always be easy, but a clear business case and story is important if you are to get the company, its shareholders, and its stakeholders on board.

You can assess the benefits across the following three dimensions: 1. Time frame. Be clear on both the short-term immediate objectives and the long-term benefits. In smart partnering, the time frame is important, as initiatives can be complex and take time to realize their full potential.

2. Nature of benefits. Some benefits will be tangible, such as revenue from gaining access to a new market. Others will be equally significant, but intangible, such as developing a new capability or enhancing employee morale.

3. Benefit split. Be clear about how benefits are to be shared between the business and society. If they are one-sided, be careful you are not moving into the philanthropy or propaganda arena. Remember that if the aim is to create more value from partnering than you could do apart, then benefits must be shared appropriately.

The presentation outlines two contrasting benefit arrays for the Unilever as examples. With Project Shakti, the short-term tangible benefits are extremely clear and powerful, while in the case of Kericho the long-term intangible benefits are strategically critical for both the business and the communities in which it operates. Remember that it is not essential to have benefits in every section of the matrix. However, if you are struggling with any of the dimensions—for example, there are no long-term or tangible benefits or if most of the benefits are one-sided—go back and ask if this is a real partnering opportunity where significant mutual value creation is possible.

As you develop a clear array of benefits, a business case, and a story to communicate to all stakeholders, ask: Do we have a clear understanding of the entire array of benefits and the associated business case, on which we can focus, assess, and manage the potential CSR activity? Does the activity focus on fundamental value creation opportunities where we can really partner with society to realize simultaneous benefits? Are the opportunities significant, scalable, and supportive of our overall strategic priorities?

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Plotting the Benefits

Consistency and determination

Partnering, as we all know, can be challenging. It requires planning and hard work to assess potential mutual benefits, establish trust, and build and manage the activities, internally as well as externally.

But is it worth it? Companies at the forefront of such partnering suggest the answer is a resounding yes, but an additional two principles need to be followed to ensure success: Go in with a long-term commitment. Having a positive impact on societal issues such as living standards is not a “quick fix” project. Leaders who want to partner therefore need to have a long-term mind-set backed up by solid promises and measurable commitments and actions. Your initiative must demonstrate added value to both shareholders and stakeholders over time.

Engage the entire workforce and lead by example.

Your workforce can be one of your greatest assets and beneficiaries when it comes to CSR activities.

Increasingly, employees are choosing to work for

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cover story organizations whose values resonate with their own.

Attracting and retaining talent will be a growing challenge in the future, so activities that build on core values and inspire employees are key. Unilever, along with other leaders in smart partnering, actively engages its employees in such initiatives, seeing improved motivation, loyalty, and ability to attract and retain talent as a result. Engaging the workforce starts at the top.

Leaders must be prepared to make a personal commitment if the activities are to realize their full potential.

This is the tough bit of the process: taking action, rather than speaking about it, and keeping up the momentum even when targets are far in the future. As you plan the implementation of your chosen initiatives and follow through, ask: Can we build the commitment we need across the organization to make this happen—and are we as leaders willing to lead by example? Have we planned effectively to ensure that implementation is successful, with resources, milestones, measurement, and accountability? How can we manage the initiative, focusing on the total array of benefits sought, not just the short-term financials?

What’s a leader to do?

When it comes to CSR, there are no easy answers on what to do or how to do it. A company’s interac-

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tions and interdependencies with society are many and complex. However, it is clear that approaching CSR as a feel-good or quick-fix exercise runs the risk of missing huge opportunities for both the business and society. Taking a step-by-step approach and following the principles outlined here offers leaders a way to identify and drive mutual value creation. But it will demand a shift in mind-set: the smart partnering view is that CSR is about doing good business and creatively addressing significant issues that face business and society, not simply feeling good. And smart partnering is not for the faint of heart. It requires greater focus, work, and long-term commitment than do many standard CSR pet projects, philanthropic activities, and propaganda campaigns, but the rewards are potentially much greater for both sides. n Thomas Malnight is a Professor of Strategy and General Management at the International Institute for Management Development (IMD), in Lausanne, Switzerland, where Tracey Keys is a Program Manager. Kees van der Graaf is Executive-in-Residence at IMD, following his retirement from the Board of Unilever, where he was also President of the European Business. This article was first published in December 2009 on The McKinsey Quarterly Website, www.mckinseyquarterly.com. Copyright © 1992-2010 McKinsey & Company. All rights reserved. Reprinted by permission.

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manufacturing technology

Winning Machine Tools Market With Extended Automation To win in the competitive globalized market, Indian machine tool manufacturers need to stringently focus on extending service facility everywhere, which is possible through building efficient channel networks. by niraj pasawala

N

owadays, all over the world engineering industries are demanding automation. Higher operators’ cost, non availability of skilled workers and demand of much better quality products are the major driving forces that are leading the industry to go for automation. In Europe, America, also now in Asia, the people are using computer numerical control-based (CNC) machines.

Advantages of CNC machines Although, it is a bit difficult to use CNC machinery as compared to the conventional ones, they have a number of advantages, such as better accuracy (In 0.005/0.010 mm), mass production becomes much easier with them, rejection costs come down and any uneven shape can be made very easily with the help of these machines. In engineering fields, such as automobiles, bearings, textiles, die-moulds and in fields, which demand mass production or good accuracy—these CNC machines are advisable.

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CNC-based machinery in India

Among CNC applications, most popular is CNC turning machine, then there are machines like vertical machining centers, horizontal machining centers, CNC milling machines, CNC boring machines, CNC turret punch presses, CNC wire cutting machines, CNC radial drill machines, CNC laser cutting machine etc. Nowadays, one more application is finding good demand—CNC water jet cutting machine.

Market dynamics

With growing use of CNC machines in India, the users are becoming much more aware of the products. They are looking out

for competitive prices, along with the features to suit their special jobs, so that they can give better qualiy end products, goods are delivered in time, and of course mass production is possible.

One of the major demand risers for CNC machines (especially) among the small Indian companies is sub-ordering or outsourcing of production activities. The trend of large companies offloading their workload outside is quite common these days. And they demand good accuracy level, delivery in sharp schedule, also packing as per their requirements and standard.

All these things have become very easy with automation of machinery, assembly function

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Automation upgrader MasterControls and Southern Technical Services have jointly retrofitted a Gleason 782 gear hobber with a new CNC control system from NUM.

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manufacturing technology ers of CNC machine manufactuerers are incresing day by day. Main advantage to them is they can sell more easily, and at the same time they can give services efficiently—as they are based locally. So, service factor is also posing a key roll in selling their products in huge quantities.

Picture Courtesy: CHPS s.r.o.

Global service facility is must to win

High-pressure water jet is a modern precise technology for cutting most flat materials (metals, plastics, rubber, glass, stone, ceramics...) up to a thickness of approx. 100 mm by cold cut.

automation, and deployment of robots.

Demands from the users

In automation of machinery, at many places in India, the latest technology has been adopted.

Of late use of very high-speed machine tools is quite common.

When you use rapid rates of 50 or even 100m/min in machinery like turning and machining centers, much time is saved.

Not only these rapid rates, but also high-speed tools clamping and tools changing facilities are also gaining fast importance.

With latest automatic tool changers (ATC), Turrets, tool indexing is very fast and more accurate.

Without high revolutions per minute (RPM) spindles, chucks and highly efficient bearings, we could not imagine RPM of 10000 in CNC lathes.

Focus on mixing technologies Even technology-mix has made some great inventions, e.g., now a grinding process can be completed in a turning machine with the same finish level and accuracy.

Latest AC servo drives, AC servo motors are aiding to the develop-

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ment of more quality machines.

Thus, they are enabling users to get end products much faster and with more accuracy.

Production of automated machinery

In Asia automation of machinery has its history of more than 30 years. Initially, it began from Japan, China and then Ttaiwan.

Now, India has made a spectacular growth in machine automation. However, Taiwan machinery have become much more popular as they can give delivery in time.

Also, they win on mass production of these machinery. Bench production made by them leads not only to give huge numbers of machines in production, but also accuracies much better.

They can work out very competitive prices, as they buy the main accessories like CNC controllers, CNC drives, CNC motors, Ballscrews, LM guideways, encoders in bigger volumes. So, producion has become much easier, at the same time they can give very attractive prices.

However, in other Asian countries like India, Pakistan and Srilanka too, these mass produc-

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Once a high-end-machine breakdown occurs, none other than the engineers from the manufacturing company can find the problems in that. Maintenance enginners, only from the manufacturing organization, can rectify the faults easily.

Thus, the company that gives best after sales services will win at the end of the day. So, all giant companies that are invloved in manufactuing of CNC machines have to make some network, which will help them in sales and services. They should not restrict to some particular country, but should channelize their service all over the world—wherever a good market potential is found.

Future vision

We are on the verge of the era of complete machine tools automation. Engineering industries will grow much faster with aids of latest technologies, latest machinery, modern technocrats, latest versions of CAD-CAM-CAE or software that can run machinery. The manufacturers will soon get their end products from machinery just sitting in their offices. At the same time, the finished goods will be much more reliable, accurate and with better finish. Of course, creating such a setup will be little expensive, but to pay little more will not be a big question considering all the advantages. n Niraj Pasawala is a Partner of Om Enterprise, Ahmedabad.

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manufacturing technology

Enhancing the Life Span of

Tapered Bearings

Proper maintenance of bearings is very important from the standpoint of smooth running of the machinery and their durability.

Maintenance of bearings comprises functions like removal, cleaning and installation, and each step involves a set of systematic procedures. Failure in following the right practices in this process, leads to malfunctioning and damage of the bearings. by sameer ticku

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industry 2.0

B

earings are one of the vital components in most of the major industrial equipment.

They increase efficiency of any equipment by reducing friction to deliver higher performance. The life of any bearing depends on the care and maintenance it receives.

This is true in industrial applications, where operating conditions tend to be harsh, loads are heavy, and contamination from dirt and scale is quite common.

Tapered bearings

Tapered bearings consist of four interdependent components, viz., the cone (inner ring), cup (outer ring), tapered rollers (rolling elements) and cage (roller retainer). They manage both

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manufacturing technology thrust and radial loads on rotating shafts, and are available in three configurations.

Single-row tapered roller bearings: They are of the most basic type and widely used tapered bearings. Usually, they are fitted as one of an opposing pair. During equipment assembly, they can be set to the required clearance (end play) or pre-load condition to optimise performance.

Double-row bearings: Tow-row tapered bearing arrangements offer increased load capacity over single types.

Four-row bearings: These combine the inherent high-load, radial/ thrust capacity and direct/ indirect mounting variables of tapered roller bearings into assemblies of maximum load rating in a minimal space.

Removing bearings

Tapered roller bearings can be frequently reused if properly removed and cleaned before returning them to service. There are a variety of mechanical and hydraulic bearing pullers available to enable one to remove bearings. When removing a bearing, the puller should be positioned against the back face of the inner ring assembly.

Hydraulic bearing puller.

One should be careful that the puller does not contact the cage. This can be checked by hand rotating the cage once the puller is in position. In certain cases, the shaft shoulder extends as high as the inner ring rib O.D. In this case, special pullers are available that pull the bearing through the rollers.

Removal of rolling mill bearings

Heavy-duty TQO and TQIT bearings are four-row bearings designed specifically to handle exceptionally high loads—like those found in the rolling mill industry.

Handling these bearings requires a crane and some simple fixtures to safely conduct maintenance. Lifting fixtures can be used to remove the bearings from the chock and reinstall them after completing maintenance.

TQIT tapered bore bearings

The TQIT bearing was developed for high-speed and precision rolling mills. Its tapered bore design permits a tight interference fit on the roll neck. This tight fit ensures greater stiffness in the design as well as greater accuracy for precision-type applications.

Removing and assembling TQIT bearings is different, because the inner ring has a tight fit on the roll neck. Hydraulic pressure should be used to remove and reinstall the inner ring assembly on the roll neck.

Cleaning of the components

After removing a bearing from a piece of equipment, it should be thoroughly cleaned to remove all scale, water, lubricant, debris and any other contaminants. Smaller bearings can be cleaned in a wash tank that circulates a cleaning solution such as kerosene, mineral spirit or a commercial solvent through the bearing.

Alkali cleaners, such as trisodium phosphate (TSP) mixed with

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january 31, 2010 | industry 2.0

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two or three ounces per gallon of hot water, is also suitable. Hot cleaning solutions are often used as a final cleaning or for rinsing after the initial cleaning.

For large bearings or to clean a large number of bearings, special cleaning equipment such as a large tank containing appropriate cleaning solution is required. Tanks are typically heated with electricity coils and a plump is used to agitate the cleaning solution. Final cleaning is done by suspending the bearing and using a hose to flush away any contamination.

After a tapered roller bearing is cleaned, it is to be dried with compressed air. The air stream should be directed from one end of the roller to the other—while holding the cage with your thumb to prevent the cage from spinning.

One has to ensure that there is no water in the air line. Spraying a bearing with moist air results in rust or corrosion.

Inspection

After cleaning the bearing, housing and shaft, one has to evaluate the bearing to determine—if it can be reinstalled or should be replaced. Bearings should be replaced if they show: l Fatigue spalling l Heat discolouration l Rust l Damaged cage l Noticeable wear All components of tapered roller bearings must be closely inspected before returning the bearing to service. The O.D. of the outer ring and I.D of the inner ring should be inspected for any nicks or burrs that may interfere with the fit when reinstalling the components. If the unit uses seals or closures, they should also be inspected for wear or damage.

Installation

The bearing should not be re-

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moved from its packing until one is ready to mount it. The packaging provides protection from contamination.

When installing a new bearing, do not remove the lubricant or preservative applied by the manufacturer. The preservatives used on almost all bearings are fully compatible with commonly used oils and other lubricants. Leaving it in place protects them from fingerprints and corrosion. Bearings should be installed in a clean environment, free from dust, debris, moisture and other contaminants.

Before beginning the installation, plan the work to be done.

Be certain that one has the correct replacement bearing and necessary additional adjustment tools if appropriate, and have them on hand. Finally, if the bearing needs to be lubricated as part of the installation process, have the appropriate lubricants and tools available.

Do not install bearings in a damaged or worn housing, or on a damaged or worn shaft. Inner and outer ring seat damage should be repaired by using properly fitted sleeves. Shafts can be built up by metal spray and remachined to the correct size. If there is not a press fit on the shaft, a weld overlay and re-grind process is recommended to bring the shaft back to specification.

Bearing fit

Mounting a tapered roller bearing with proper fit helps ensure that it meets performance expectations. In general, the rotating ring must be mounted with a tight grip. A loose fir is used on a stationary inner ring or a double outer ring bearing, especially at the floating position.

Inner ring assemblies are usually mounted with a tight fir, and should be pressed on the shaft using proper drivers. When

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pressing the inner ring on the shaft, one should be careful to avoid any misalignment.

In applications that require a tight fit, it can be easier to install the bearing if it is first heated to expand it slightly.

Precision bearings require a special fit that depends on its precision class. In addition to the proper fit and bearing alignment, desired accuracy of the spindle, outer ring and inner ring seat roundness, and square backing shoulders for both the inner and outer ring are critical. Unsatisfactory spindle runout may result if any of these areas are out of tolerance. Rolling mill bearings also require special fitting practices, depending on the type of bearing involved.

Machined surface finishes

The suggested finish for ground and turned surfaces is: l Inner ring seats – Ground: 1.6 Ra micrometers (65 microinches) maximum l Inner ring seats – Turned: 3.2 Ra micrometers (125 microinches) maximum l Outer ring seats – Turned: 3.2 Ra micrometers (125 microinches) maximum

Mounting

When heating tapered roller bearings, inner ring temperatures should not exceed 1200 C (2500 F) for standard class bearings and 660 C (1500 F) for precision class bearing. Higher temperatures can change the bearing’s hardness and geometry.

Aluminium or magnesium housed outer rings require a tight fit. To ease installation, they can be reduced in size by freezing.

Standard class bearings should not be chilled below—540 C (-650 F), and precision class not below—290 C (-200 F).

Whenever inner or outer rings are heated or cooled during

Bearings should be checked with a feeler gage to ensure proper fit. assembly, after mounting and returning to room temperature they should be checked with a 0.001 in. -0.002 in. feeler gage.

This ensures that the inner ring is pressed tightly against the shaft shoulder or the outer ring is pressed tightly against the housing shoulder. Before checking, ensure that both the inner and outer rings are pressed tightly against the shaft or housing shoulder.

Measuring bearing settings

When bearing preload is required, the most convenient way to determine the preload is to read the torque from the shaft’s rotation. To measure torque, wrap a string around a gear or other known diameter. Attach a spring scale to the string and pull the spring scale to rotate the shaft.

Read the force indicated on the spring scale.

One can obtain a direct torque reading by using a torque wrench.

If necessary, one can convert torque into preload force or dimensional preload.

Bearing end play

If bearing end play is required, then a different method must be used to measure the amount of end play.

Locate a dial indicator against the end or shoulder on the shaft to measure the amount of axial movement. Load the shaft in one

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manufacturing technology direction and oscillate it several times while the load is applied.

A handle can be mounted on the shaft to make it easier to apply the load while oscillating the shaft. Oscillate the shaft at least 20 times to firmly seat the bearings and ensure an accurate reading.

After seating the bearings in one direction, set the indicator to zero. Then apply the load in the opposite direction, oscillating the shaft as before, and read any movement on the indicator. The difference between the two readings is the end play.

Adjusting the bearing

There are two common bearing adjustment methods: threaded shaft with a nut and a housing with an outer ring follower.

If end play is desired, back off the nut until no drag is felt. If the bearings are to be preloaded, advance the nut until the required torque is measured on the shaft.

Where shims are used, the bearing is set by tightening the end cap or bearing outer ring follower without shims in place until the bearings bind slightly while rotating. The gap between the end plate and the housing is measured with a feeler gage. This gap plus the desired end play will determine the total shim pack required.

Measuring axial movement by locating a dial indicator against the end of the shaft.

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Fitting practices

Stationary cone fitting practice depends on the application. Under conditions of high speed, heavy loads or shock, interference fits using heavy-duty fitting practice, should be used. With cones mounted on unground shafts subjected to moderate loads (no shock) and moderate speeds, a metal-to-metal or near zero average fit is used.

In stationary cone applications requiring hardened and ground spindles, a slightly looser fit may be satisfactory. Special fits may also be necessary on installations such as multiple sheave crane blocks.

Rotating cup applications, where the cup rotates relative to the load, should always use an interference fit.

Stationary, non-adjustable and fixed single-row cup applications should be applied with a tight fit whenever practical. Generally, adjustable fits may be used where the bearing set up is obtained by sliding the cup axially in the housing bore. However, in certain heavy-duty, high-load applications, tight fits are necessary to prevent pounding and plastic deformation of the housing. Tightly fattened cups mounted in carriers can be used. Tight fits are suggested when the load rotates relative to the cup.

To permit through-boring when the outside diameters of singlerow bearings mounted at each end of a shaft are equal and one is adjustable and the other fixed, it is suggested that the same adjustable fit be used at both ends. However, tight fits should be used, if cups are backed against snap rings, to prevent excessive dishing of snap rings, groove wear and possible loss of ring retention.

Only cups with a maximum housing fillet radius requirement of 1.3 mm (0.005 in.) or less

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Standard torque wrench should be considered for a snap ring backing.

Two-row stationary double cups are generally mounted with loose fits to permit assembly and disassembly. The loose fit also permits float when a floating bearing is mounted in conjunction with an axially fixed bearing on the other end of the shaft.

Precision class bearings should be mounted on shafts and in housings, which are similarly finished to at least the same precision limits as the bearing bore and O.D. High quality surface finishes should be provided.

Two-row and four-row bearings, which are provided with spacers and shipped as matched assemblies, have been preset to a specifically bench end play. The specific end play setting is determined from a study of the bearing mounting and expected environment. It is dependent on the fitting practice and the required mounted bearings setting.

Failure to use the designated fitting practice in the bearing application can result in improper bearing performance, or sudden malfunction of the bearing, which may cause damage to machinery in which the bearing is a component. n Sameer Ticku is Key Account Manager for Reliability Services at Timken India.

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manufacturing technology

“Manufacturing Industry Will Slowly Shift To Mainly BRIC Countries” development. Our motto is growing together with our customers.

How would you describe the growth of metalworking machinery industry?

Sheet metalworking industry, especially in India, has a great opportunity for growth. India is fast growing to catch up other nations and sheet metal usage will grow accordingly replacing traditional methods. Recent growth in infrastructure like railways, metro and airports is a classic example of usage of sheet metal.

What is the status quo of the machine tool industry, in general?

Machine tool industry in India and across the globe is coming back to normalcy after facing a tough period of economical slowdown. India and China are looked upon as the driving forces, so we are optimistic about the growth.

What is the latest manufacturing concept followed at Amada’s Fujinomiya Works?

Fujinomiya Works is an environment friendly, energy saving and high efficiency factory that was built on the concept of ‘Circulation’. There, products are developed and manufactured based on the 3S+E concept (Safety, Security, Surroundings and Energy) and from the customer’s viewpoints.

Could you throw some light on your policy—‘three direct & three action’ (Manufacturer’s profit centre is actual site, marketing and service support is our customer and development is trial and laboratory)?

We can get best innovation and KAIZEN (improvement) of manufacturing from actual production site not from office inside. Our target is

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Tell me about the latest products from Amada?

We have recently launched our new laser cutting machine model LC3015F1NT + ASF3015F1 for our customers’ success. We have addressed current production challenges through five new innovations and seven new achievements. Also, we have launched RGM2 series press brakes for the middle level market segment.

MITsuo okAMoTo President & CEO, Amada Co.

Japan-based Amada Group is primarily involved in manufacturing, selling, leasing, repairing, maintenance, checking and inspection of metalworking machinery and devices.

Mitsuo Okamoto, President & CEO, Amada Co, in an interview with Reshmi Menon, speaks about the company’s Fujinomiya Works. He also expresses his views on the status quo and trends of the Indian manufacturing industry. to make our respected customers grow faster than others by their own desperate effort together with our direct service support and latest and unique technology.

We can always find out some seeds of new products from our respected customers’ voice and be taught by our customers’ straight and frank proposal for research and

industry 2.0

What will be the new trends in technologies in metalworking machinery sector?

Green manufacturing will be the trend in the near future. We need to manufacture products that compliment eco-friendliness, and also the machines used to produce these products must be eco-friendly.

How do you find the status of the Indian manufacturing industry?

Indian manufacturing industry is on its upward trend (as seen in the data released by various agencies). India has a strong engineering base. India too has some exclusive technical institutes like the IITs. These combined factors will help India to grow at a faster pace. With a little bit of concentrated effort, India has capacity to deliver world-class products.

How do you foresee the future of the manufacturing industry?

Manufacturing industry will slowly shift to mainly Brazil, Russia, India and China (BRIC) countries in order to be competitive. Cost, quality and efficiency will play roles for its success. n

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manufacturing technology

Conquering Market through Solid Modeling Sparkonix India, an Indian manufacturer, now designs EDM machines 30 per cent faster and has cut down the development costs by 40 per cent, just by switching over to 3D CAD from their old 2D CAD systems.

tional CAD software. Drawings for new machines were prepared by measuring existing parts and then modifying them to suit the customer’s needs.

Problems with 2D

Designs made by using 3D CAD allows viewing any side of the product easily.

T

he primary business of Sparkonix India is manufacturing electrical discharge machining (EDM) machines (also known as spark erosion machines). The company offers different models to suit various customer needs. It also makes CNC wire cutting machines and metal arc disintegrators, which are used for removing broken taps and drills.

The old practice

The machines typically include hundreds of parts, varying from fabricated and machined parts to castings, sheet metal, electronics and electrical items mounted directly on mechanical assemblies.

Until recently, the company’s design process was based on 2D drawings created in the tradi-

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This process had many limitations, such as the difficulty of knowing how parts and assemblies would behave during the machine’s sliding movements.

“With our type of machinery, part behaviour within the assembly is very important, but it was not possible to determine that behaviour with 2D,” says Anand Atole, senior executive designer at Sparkonix.

Atole recalls, it was also difficult to know from drawings how the machine would look after it was assembled, or whether it could be assembled easily. Any sort of network was tedious, preparation of bills of materials (BOM) was time-consuming, and it was easy to make a mistake regarding quantities.

Benefits of 3D

Sparkonix chose the Solid Edge solid modeling solution from Siemens PLM Software, after the local value-added reseller (VAR) demonstrated the software’s capabilities. The vendor also provided training that was tailored to the company’s specific needs. Initially, the user decided to convert the traditional CAD software drawing to Solid Edge format using their conversion

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functionality. But because not all of the drawings were accurate, the company decided instead to recreate the part models in Solid Edge, working from existing drawings, and to completely model and virtually assemble one basic machine.

The result

While narrating the first project’s experience, says Atole, “It was great to look at the 3D model of the machine. We could easily see any side of it using quick shortcut keys. And preparing the layout for the machine was the simple matter of drafting the top view and hiding the hidden lines. That gave us a clean view of the assembly— something we never had previously. Our marketing people are now able to show the customer what the machine would look like, before actually manufacturing it.”

Glimpses of benefits

Sparkonix has achieved a 30 per cent reduction in design time.

In addition to providing better visualization of the machines (which allows for collision detection), the software streamlines the design process in a number of ways, for example, to incorporate design changes into the 3D model compared to working with drawings. Also, changes to the model automatically update existing drawings. Preparing the BOM is also easy with this. In the words of Atole, “We just select the view and ‘boom,’ the BOM is ready.”

The company’s development costs also have reduced by 40 per cent. The saving is attributed, in part, to lower costs for castings, which results from using the software to calculate the weight of parts while they are in the design stage. Other sources of savings include fewer interferences during manufacturing, lower prototyping costs, and more efficient work by the designers. n

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Picture Courtesy: www.sabic-ip.com

materials & processes

Lightweight Plastics

Will Make Cars More Affordable C

ar manufacturers are rushing to design and engineer a more fuelefficient yet affordable vehicle. While doing so, much of the metal that made up the cars of yesterday will be replaced with highly sophisticated and much lighter plastics.

When we think of cars, we traditionally picture them as being made of metal, iron and steel. But according to the director of automotive studies at

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the American Plastic Council’s Automotive Learning Centre, “Ten years ago, about 150 pounds of plastics were on the average North American vehicle. Today, more than 250 pounds are being used. We expect more than 320 pounds of plastic to be on 2010 cars.” These figures are especially important—when one considers that every pound of material used in an automobile speaks for billions of dollars being spent by the automotive industry.

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Market dynamics

What does this mean when one major type of material is replaced by another? To start, it affects individual industries. Companies who produce metals will suffer while those who are making plastics will grow. Of course, the types of plastics used in cars have to meet regulations, which means companies who are plastic suppliers have to keep up with the demand and science of making more and more sophisti-

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high-strength aerospace material, called carbon-fiber-reinforced plastic. It is used in the doors, hoods, fenders, chassis, and also in support frames for the engine and transmission. This plastic can be moulded into almost any shape the designer wants.

Hyundai QarmaQ featuring more than 30 plastics’ technologies has been developed by SABIC Innovative Plastics.

What about recycled plastic?

Plastics’ other advantage besides making the weight of the car lighter and improving its fuel efficiency is—it is also more durable than metal that can rust and wear. by david etienne

cated composites. Such composites must be engineered at the molecular level to exhibit specific physical properties—such as scratch resistance, flame resistance and greater degrees of stiffness.

Challenges for plastic manufacturers

But it doesn’t stop here. Although, a plastic company may come up with a new plastic, it also has to be incorporated into the design of

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a car, and prove that it can reduce costs and improve the product.

This is tricky to do when there are also numerous requirements on the plastic industry—such as how the plastic will be recycled to finding ways to educate design engineers about new materials and their properties.

Commonly used plastic in vehicles

The most common plastic used for vehicles is a lightweight,

At the Geneva Auto Show, Hyundai announced a concept vehicle using recycled plastic bottles to create most of its outer skin.

The QarmaQ, an intuit word for ‘dwellings made of earth, whalebone, and animal skins’, was an idea brought about by Hyundai’s Europe’s Design and Technical Center, along with GE Plastics.

The design of using plastic as opposed to glass and steel, they say, allows for a 130-pound weight reduction, equaling 20 gallons of gas savings every year.

In addition, to the use of recycled plastic bottles, the rest of the vehicle uses less chemicals and paint than regular vehicles. A new Exatec coating protects the glass outside, preventing it from scratching and also reflecting heat to keep the inside cool.

However, while a more fuelefficient vehicle that costs less seems appealing, there is also the downside. One example is—the design of the new car by Tata, which will be seen in India. It is expected that in a country of 1.1 billion people, sales of small cars are expected to double to two million in the next three years.

This means double the air pollution and double the already crowded roadways.

So, is designing a lightweight plastic affordable car going to be the answer to tomorrow’s transportation problems? It’s hard to tell, but one thing is sure, it is a trend that is here to stay. n Courtesy: www.articlesbase.com

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materials & processes

Adopting New Technologies To Remain Competitive Through upgrading their plants and processes, Indian paper manufacturers can prepare themselves to cope up with the surging demand ahead. Economized utilization of raw materials is very essential to remain competitive. by ajay goenka

T

he current period of time, being called the ‘knowledge era’, the demand for paper will witness rapid growth in the times to come. Indian paper industry has continued to remain stable for the past three years, i.e., 2006-2008. Despite the slowdown in various sectors in FY 08–09, the scenario in this sector remained much better than others. The simple reason behind that is—it is a basic industry of corporate India.

The domestic demand for paper has been growing at around eight per cent for last couple of years almost in line with the GDP. The per capita consumption in the country, however, is barely as low as eight kg. Owing to this low base for the nonce, the long-term growth prospects of the paper industry appears to be significantly

A view of the control panel in the control room of a modern paper plant. bright. The government’s thrust on education i.e., Sarva Siksha Abhiyan, increasing demand for industrial grades of papers, increasing buying power of consumers and a rising demand of the packaging grades of papers are expected to stimulate the growth of the industry. Comparison between the global market vis-à-vis the domestic market scenario of various paper products.

Indian paper industry

There are at the moment approximately 666 mills in India engaged in the manufacture of paper and paper boards. However, the production capacity varies from 10/20 MTD to a humongous 600-800 MTD. The combined installed capacity is about 10.5 million tones, thus making India the 15th largest in the world. The paper mills perse can be divided into wood-based, agro-based and waste paper-based.

Various sectors of Indian paper industry together offer the following ccomposition.

Latest technology to increase productivity

Comparison between the global market vis-à-vis the domestic market scenario of paper products.

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Increase in productivity, through the adoption of more efficient and cleaner technologies in the paper manufacturing sector, will be the most effective way of meeting

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the economic, environmental and social development objectives.

To meet the growing demand, existing mills will have to renovate and modernize their facilities. Keeping in view the environmental issues, depleting forest reserves etc., companies are now slowly switching over to Deinking Technology involving the use of ‘recycled fibre’ as raw material, instead of wood pulp.

On the technology front, latest technologies can aid in two areas, namely Cost competitive-

calendaring and winding, using better quality fibres, pigments and chemicals, and applying high levels of process control.

ness and Quality enhancement.

Cost competitiveness can be brought in through economies of scale, and efficient investment in technologies to minimize raw material consumption—through latest design and development of approach flow systems, press sections, formers and dryer sections.

Quality enhancement can be done through utilization of high-end test equipment, deployment of process automation, improving

Demand determining factors in future

Future potential of Indian paper industry

With newsprint papers registering a growth of about 13 per cent, writing and printing grades at 5 to 6 per cent, container boards and carton boards at around 10 to 11per cent, we can safely say that a very large domestic market and competitiveness in all the above segments shall remain Global Market Scenario an advantage for the Paper Grade Market Size Growth Indian paper industry.

The industry will (mn tons) (in %) grow at an estimated Coated wood-free 36 3 CAGR of 7 to 8 per Uncoated wood-free 52 2.9 cent over the next Ground-wood paper 32 1.8 decade. This growth Newsprint 42 1.6 will be witnessed on account of two major Tissue 29 3.4 factors—growth in Packaging 142 2.4 industrial activities Others 36 0.2 and increased spendTotal 369 1 ing on education.

Factors like the level of national income, industrial production, literacy and education, the size of population, the price of paper, and other related influencers like government expenditure on education, student population, per capita income etc., will have prominent role on the demand of papers. The industry will have to undergo significant modernization

Domestic Market Scenario Market Size (000 tons)

Market size (Rs. Bn)

Historical Projected demand demand growth growth

Industrial paper

3400

94

6%

8%

Printing & writing paper

3200

84

6%

8%

Newsprint

1400

33

5%

6%

Speciality paper & other

400

13

5%

6%

Total

8400

224

6%

8%

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and expansion processes to cope with the competitive environment in the coming days.

Further, Indian print and packaging industry is well developed, and is the biggest consumer for the paper industry. Relatively low labour costs and the growth of engineering institutes leading to the availability of qualified personnel to run the machines, will also fuel growth of the industry.

On the flip side however, the increasing capacities and demand will mean increasing demand for raw material. To remain globally competitive, the Indian paper Industry will require a sustained supply of good quality raw materials—both forest-based and recycled fibre. This can be done through higher plantations, and better fibre recovery. Further, technology upgrading and infrastructure development will aid the industry to maintain its competitive edge.

Composition of paper production by various segments of Indian paper industry.

Concluding statement

In order to lay down the correct growth path, our paper industry will have to identify the factors, which will have a solid long term impact on the economy to help it sustain over a period of time. This includes both macro and micro economic factors, which will contribute to the development of quality of life, improved health index, education and literacy growth, infrastructure, but above all the human development index. n Ajay Goenka is Chairman and Managing Director of Rainbow Papers, Ahmedabad.

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facilities & operations

Planning Inventory Control To Optimise Business Needs Inventory control is very essential for optimising the production process in any manufacturing organization. Especially, SMEs, who are still handling the inventory control mechanism (almost) manually, these guidelines will help in optimizing their inventory level leading to avoidance of capital blocking and ensuring unperturbed production. by richard warburton

Photo Courtesy: www.photos.com

could face? Debtors leniency, shrinkage, cash flow planning, slow moving inventories and loss are some of the inventory issues that can be set right by proper inventory planning.

Areas to be focused on

I

nventory planning is highly essential for any organization. The planning must be done in such a way so that the company’s plans and the demands in the market are in sync. With the rapid alteration in the demand, the need for inventory planning has risen to a great extent. Proper inventory planning will thwart any major problems, including depleting sales profit margin and cash flow that are likely to occur in future.

During inventory planning, it is essential to take into consideration the Demand Management, Production Planning, Sales and Operations Planning, Material Requirements Planning and Inventory Reduction.

Common inventory issues

What are the common inventory issues that a business

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If you are set on making your business boom with your inventory planning, then concentrate on the following areas—proper inventory valuation, classifying fast moving and slow moving things in your inventory list, and marking out obsolete inventory is strongly recommended. Further, it is best to code your inventories electronically. You may also create a spread sheet and keep a track of your outgoing and incoming inventories. Insuring for inventory losses that could occur due to rain, fire, etc., is the best strategy.

Adopting a software solution

Are you thinking of a software solution that will lessen your inventory planning burden? Well, there are umpteen numbers of choices available. Run a web search and you are sure to zero in on the best inventory planning software that will suit your needs. Make it a point to choose an inventory planning software from a company

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that is trustworthy, and has a vast client base.

Inventory planning techniques What are the techniques used in inventory planning? Some of the most popular techniques are Just in Time (JIT), Material Requirement Planning (MRP), Distribution Requirements Planning (DRP), Supply Chain Management (SCM), Risk Management and Economic Ordering Quantity (EOQ). Generally, each of these techniques are used for inventory planning alone and in some cases a combination of them are used for better results.

Preventing inventory losses

A proper investigation is necessary to find out the root cause for inventory losses. In case the problem continues, it is not advisable to zero in on a particular factor alone, because there could be a combination of factors. Tackling the inventory issues, as soon as it rears its ugly head, is important.

Find the best inventory solutions that will help in forecasting, optimizing the stocking levels and the inventory, and refill the stock based on your business requirements. n Courtesy: www.articlesnatch.com

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supply chain & logistics

Reducing Transit Damage Through Six Sigma Approach Transit damage, though a common fact in the Indian logistics scenario, is of course a major issue that ultimately leads not only to a national loss, but also destroys the goodwill of the carrier company. Can such transit damages be prevented or reduced? An Indian logistics company ventured into a project to prevent such losses, and achieved significant result.

What did they really do to achieve 99.999 per cent damage free delivery? by n c narayanan

O

ne of the chronic problems in Indian industries is the transit damages irrespective of any type of industries. If we estimate the loss to the nation due to transit damage, it may run into several crores and a major percentage of our GDP. It is a national loss, and often most neglected saying we cannot do anything with the Indian roads and transport systems.

Transit damage is a more serious issue in logistics companies, because of the volume of transactions as well as the customer dissatisfaction arising out of damaged goods reaching and disappointing the customer.

When such areas are taken for improvement applying tools like six sigma, people often come up with the excuses, such as: l “We are helpless with respect to too many transshipment points.” l “We can never improve the handling methods, which is beyond our control once the goods leaves our premises.” l “The workmen are careless and they will never handle the shipments carefully.”

The list will be endless. Very few organizations have taken up these issues seriously, believing they can reduce the transit damage substantially, in spite of the environmental conditions remaining the same.

Cause and Effect Diagram

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What is six sigma?

This is a systematic problem solving tool using data and analyzing them using statistical methods.

It is a methodology developed

by Motorola during 1980s, and extensively applied these days by many industries both manufacturing and service to solve business problems.

Six sigma is applied in five steps, called DMAIC, which means Define—Measure—Analyze—Improve—Control.

In Define phase, we obtain the voice of the customers (VOC), and collect the transit damage data. Then the problem and goal are defined clearly, and a project charter is drafted.

In Measure phase, the live data is collected, and the process capability is calculated using sigma scale.

In Analyze phase, the root causes for transit damage are brainstormed and validated. This approach helps in finding out the vital few root causes that contributes to the majority of the transit damages.

In the Improve phase, we find solutions for each root cause, and implement them after pri-

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People are being trained to load goods on a truck.

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supply chain & logistics oritizing the high benefits and low cost solutions. Finally, in the Control phase, we find methods to sustain the improvements by process standardization, training, measurement, and monitoring of transit damages.

Industry-wise Data that Was Collected

CASE STUDY Define phase

Zentech Logistics (name changed) is one of the highly reputed courier companies with 40 per cent market share with the state-of-the-art processes, and enjoying very high customer satisfaction levels. One of the pain areas for the company was the customer dissatisfaction due to transit damages. The preliminary data collected for one year— showed that the transit damage was steadily increasing. Although, the absolute value of the transit damage is 0.34 per cent, the number of complaints was 700 with a financial loss of Rs. 3.6 crores. In the Define phase, the team set a goal of 99.98 per cent damage free delivery first time.

Fishbone Diagram of the Process

Measure phase

Improve phase

In the Measure phase, the team collected industry-wise data to calculate the process capability in the sigma scale.

In the Improve phase, the team came up with a set of solutions for each root cause identified, and implemented the same. Two of the solutions implemented have been demonstrated in the images (below).

Analyze phase In the Analyze phase, the team brainstormed the possible causes using cause and effect diagram, and collected data to validate their assumptions.

2.2-Stacks Limitation

Control phase In the Control phase, the team developed standard operating procedures (SOPs), trained the people, and established a measurement and monitoring system along with dashboards to ensure that the improvements are sustained.

Achievements With the application of six sigma methodology, the team has achieved a significant reduction in transit damages, in spite of

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the external factors remaining the same. With a well defined process, measurement, accountability and awareness creation, Zentech has achieved breakthrough improvements of reaching 99.999 per cent damage free delivery and restored the customer loyalty.

Conclusion

The application of six sigma tool for transit damage in the logistics company shows that—we can improve any process, even if there are many external factors which are beyond our controls.

It all depends on how we view the problem, focus the customer needs and find the solutions for all root causes. n N C Narayanan is the Founder and Managing Director of Six Sigma Alchemy.

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supply chain & logistics India Serves as a Major SourcIng and

Supply Hub�

The logistics industry is going through an exciting phase. While the effects of global recession are slowly subsiding and the industry is regaining its buoyancy, the market is also throwing lot of opportunities for the logistics industry to scale newer heights.

Christoph Remund, Chief Executive Officer, DHL Lemuir Logistics, India, in an interview with Reshmi Menon, focuses on the growth prospects of the Indian logistics industry and the opportunities, which the industry can tap.

By 2015, the Indian logistics Industry is expected to touch $122 billion. What are the emerging trends, according to you, that support this expectation?

The factors facilitating the effective functioning of the logistics industry are integration, technology, legislation and globalization.

The third party logistics (3PLs) providers are required to carefully ascertain the market trends in the logistics industry, and accordingly

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Christoph Remund, Chief Executive Officer, DHL Lemuir Logistics, India. sketch the future plan of action of their companies.

The size of the domestic market itself is getting larger.

Secondly, India serves as a major sourcing and supply hub, the market potential in India is evident with the forecast growth that container traffic will grow by 9 to 11 per cent until 2012.

Logistics outsourcing is still at an early stage in India and fragmented. This presents

a significant opportunity for global companies to streamline logistics processes for customers thereby reducing their costs and allowing them to focus on core manufacturing and marketing capabilities.

For airfreight, the year 2009 closed with positive volume growth for India vis-Ă -vis the negative growth, in the rest of the world due to the economic meltdown.

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supply chain & logistics sion in order to support growth of business. India is one of the fastest growing and a strategic market for DHL, and is a major engine of growth for our business in Asia Pacific. DHL has invested over $ 2.2 billion across Asia Pacific to provide leading edge infrastructure for its customers.

In the GST regime, logistics service providers will be able to provide cost effective solutions to their customers.

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We see the positive and healthy trend continuing into 2010, especially for exports.

What are the issues of this industry that need immediate redress?

Road infrastructure needs to be developed, coupled with an improvement in cargo handling facilities at airports as well as sea ports. Steps are being taken to improve the infrastructure, but the pace seems slower than the economic growth. In the present scenario, airports are finding it increasingly difficult to cope with increasing volumes of air travel.

A significant change and decongestion in this sector would greatly enhance the quality of trade in the logistics industry. The new upgraded airports at Mumbai, Delhi and Hyderabad have not adequately considered the needs of the forwarding industry with no proper facilities available for cargo.

India is increasing outlays on ports and roads, with more tangible economic reforms. Further

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expediting the construction of better ports, roads and airports would allow the industry to take better advantage of opportunities.

But infrastructure development projects have a long gestation period. We welcome the changes and infrastructure upgrades that are taking place as this will benefit and facilitate our business services to our clients.

India has a very promising potential for logistics services.

Presently, logistics in India are still driven by tariff related benefits, and the real potential is yet to be unlocked. Reforms in infrastructure and tariffs will clearly drive the unlocking of the potential. Documentation and processes at entry/exit points are also very difficult, as India ranks as one of the most bureaucratic countries in the world.

Do you feel this industry is in a position to attract enough investment to sustain its growth rate?

The logistics industry is growing at a fast pace and will require investments to sustain its expan-

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Do you feel this industry has an acute insufficiency of adept manpower? According to you, what are the ways to solve that problem?

Any industry which expands rapidly needs qualified manpower to keep pace with its requirements. The logistics industry is no exception. There certainly is a need for good quality manpower in this industry. The key is to raise awareness about logistics as an industry—its contribution as a trade enabler and the significant role it plays in building the economy.

What is your opinion about the implementation of Goods and Services Tax (GST)? To what extent will it influence the functioning of the Indian logistics industry?

The impending introduction of a uniform GST in India presents the corporate sector with compelling challenges and a host of hidden opportunities including a reason to critically examine the current supply chain and potentially shift from a regional to a national supply chain.

Implementation of GST will help India enormously. There will be an increased demand for high-quality, reasonable-cost services in the logistics sector, if tax legislation changes. That will give us huge opportunities to leverage our global skills in logistics.

The introduction of the GST will also result in a greater adoption of the hub-and-spoke model in the infrastructure segments

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such as warehousing, cold chain and CFS/ICD. The changing tax regime will trigger the formation of the regional hub-based infrastructure, to support the spokes across the country. Logistics service providers will be in a position to provide cost effective warehousing solutions to customers, thereby greatly benefiting their supply chain costs.

What is the present trend of technology adoption in this industry?

Technology is being adopted at a good rate in the logistics industry. For instance, the introduction of e-freight, which allows reducing the number of paper work, thus, makes the process smoother and faster.

India’s telecom industry is extremely advanced as compared to other industries. And while only 30,000 vehicles in the country have tracking capability, that’s expected to grow to a total of 100 per cent over the next five years.

In terms of security, logistics companies like DHL utilise technology in the form of mobile scanning devices, as well as other cutting edge technologies such as Global Positioning Satellite systems (GPS) and Radio Frequency Identification

(RFID). Remote monitoring of facilities is enabled by the use of digital CCTV technology.

To what new heights will the logistics industry grow in the near future?

At DHL, we look at India as a key market, which will drive growth for us globally. The entrepreneurial spirit in India and the opportunities created in the export-import markets give us plenty of opportunities to develop.

In the coming years, there will

be a substantial growth in the manufacturing segment, which will mean increased opportunities for logistics companies.

Also, India is among the fastest growing auto markets in the world today—with a burgeoning passenger car market and a high interest market for automakers the world over. With the changing automotive landscape in India, there will be a need for closer collaboration between the original equipment manufacturers and logistics service providers. n

Heavy metal containers are being stacked systematically.

Advertiser index Havells .................................................................................... 7 Cisco........................................................................................ 3

Mitsubishi Electronics ............................................................ 5

Deccan Cargo ...................................................................... IFC

power build ...........................................................................13

Delta......................................................................................bC

premium Energy ...................................................................11

Elecon ..................................................................................... 9

TaeguTec ..............................................................................IbC

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information technology

ERP Enhancing Productivity through Implementation of

The benefits of investing in an enterprise-wide resource planning (ERP) far outweigh any capital cost that you may incur. Moreover, if the implementation and maintenance are handed over to an experienced outsourced partner, the benefits go up exponentially, if done properly.

But with a plethora of ERP solutions that promise hundreds of benefits, how do you ensure that your goals are really met? by brian lobo

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n enterprise-wide resource planning (ERP) application creates an environment for seamless flow of transactions, improved efficiency of operations and optimized performance.

Using the ERP, an organization can leverage a common platform to share data, and connect processes between multiple systems and applications.

Typical ERP applications now have modules for a mind-boggling range of core and ancillary manufacturing functions, compared to earlier years—when it was a one-softwarefits-all scenario. Specific or customized modules can streamline the

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Courtesy: www.photos.com

processes and resources for sales, sales orders, delivery, packaging, profit calculation, structured marketing, sales analysis, procurement, purchase orders, MRP, purchase analysis, inventory management, batch management, serial numbers management, customer or vendor catalogue number management, stock management, price lists, production, bill of material or production orders.

Features galore

Lately, most off-the-shelf and customized ERP applications come with a host of functions and tools that

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promise to make your manufacturing operations more effective and improve productivity. The features and benefits span the entire gamut of the production cycle, right from procurement to sales.

At the sales end of the distribution cycle, with a ready and automatic access to price quotes, gross profit on the quotation, customer requirements are serviced faster, stock levels are updated in real time and the customers’ current balances are reported accurately. Your warehouse can be notified immediately of the customer order and the delivery date. With an ERP in place, manufacturing organizations of any size can also manage intricate and tedious tasks such as issuing invoices and receipts for part payments, credit customers for goods returns, and issue invoices without changing stock balances.

Ditto for the supply side, allowing almost instantaneous and errorfree issuance of purchase orders, delivery notes, credit notes and purchase returns. Additional and customized modules can be incorporated to calculate the landed value of imported goods, separately calculating the shipping, insurance and customs costs.

Most importantly, for a manufacturing set up, the material requirements planning (MRP) module enables manufacturers to define a planning scenario easily, and predict demand based on forecasts. With forecasts, users can predict demand and adjust material planning accordingly.

Users can set planning scenarios in weeks or days, and that can be run for a range of items or item groups. The user selects the desired criteria in the scenario, such as existing stock levels, open purchase orders, sales orders, work orders, and inventory that reached its minimum stock level, as well as predefined sales forecasts.

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Once a scenario is executed, the solution presents a make-orbuy recommendation. Drill-down options allow planners to view the net requirement calculations and view the actual documents driving the gross requirements.

Exception warnings and visual cues help users identify orders that need to be expedited. With an order recommendation report, the planners can automatically select recommended production orders, and purchase orders for automatic creation; if an item needs to be outsourced, planners can easily convert a production order to a purchase order.

A similar module for warehouse management gives users tools to manage stock merchandise. Items can be manged through item information, including name and code, barcode, trademark, measures, prices, and even the item’s picture—while price lists can be associated with as many customers or vendors as is required. The module can also record prices for unique customers or from unique vendors, and enables you to set quantity-sensitive prices—that change according to quantities purchased. Other features in an effective ERP application includes allowing users to record a stock entry or release not connected directly to an accounts payable or accounts receivable document and a tool that enables users to record all transfers between warehouses.

How to ensure the best

To get the best out of your investment, merely selecting an ERP package or getting an outsourced vendor to implement it does not suffice. You need to have a strategic intent, your needs have to be clearly articulated, and the investment should ideally support the corporate vision. If the implementation partner is

Preparatory Tips to Successfully Implement ERP in Your Organization l Prepare for your roll-out early. l Consider the effects that implement-

l

l

l

l l l l

ing extra functionality at local unit may have on your overall roll-out project plan.

Ensure that all third party software applications are version compatible with your ERP, prior to commencing the roll-out.

Involve all aspects of your organization in your roll-out; ready all staff for the cut-over.

Implement a Change Management process to manage system changes and change requests.

Work closely with your user groups before and after the roll-out.

Invest in the knowledge and skills of the support staff.

Continue to build on the technical and analytical skills of the support staff.

Test the implementation. Conduct practice roll-out and document, and compare results, in order to ensure a smooth cut-over.

an experienced one, it would be capable of assisting you frame a strategy document. Such an approach is required for the success of the ERP, because it requires professional and skilled resource support over a period of time, and work practices and standards need to be made flexible. The implementation itself should be capable of adapting to the changing work practices—if it is initiated due to other business drivers like mergers and acquisitions, entry into new business segments, capacity expansion etc.

While selecting the right partner for implementation, ensure it has qualified consultants who have the skills to apply extensive business and industry knowledge—to help you identify your business requirements. They need

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information technology ERP Implementation: The Right Approach l

Identifying business and system requirements

This enables you to plan projects effectively and optimize the use of resources and budgets.

l

Analysis and design

This considers the features and functions of ERP software, so you can derive optimum benefits from your investment in the ERP.

l

Requirements workshops

This captures your business needs so that you can determine how to best take advantage of your ERP.

l

Business blueprint

This provides a detailed model of business processes that describes your process needs, and points to appropriate solutions.

l

Process plan

This analyzes your business processes, and specifies all enhancements, conversions, interfaces, and reports required for a successful implementation.

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to fully understand the features and functions of the ERP software that you have chosen to implement. The better implementation partners offer such benefits as reduced costs for customization, operation, and maintenance; and enhanced usability and system stability, which promote user acceptance and streamline operations.

Watch out for a comprehensive solution identification, functional mapping, fit gap analysis, solution structuring, data and configuration mapping, technical enhancements to any existing application or suggested solution, customization, testing and training.

Keeping it up and running

Once the ERP is implemented, keeping it up and running is a major and critical task. Most ERP projects fail or do not fulfill their initial promise, because of inadequate maintenance. Having a signed Service Level Agreement does not guarantee that the application has a 100 per cent uptime; it is the responsibility of the individuals who are involved. The person responsible for the IT operations in your organization, thus needs to be familiarized

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with the roles, responsibilities and activities that occur during the later stages of the implementation project, and also creating a master plan for knowledge transfer.

The nature and volume of work should be estimated in advance, so that there are no costly over-runs. The various models / technologies, which have been implemented and need to be supported, have to be understood.

Documents need to be standardized, baseline definition reports and an inventory of components to be maintained created; and rules, procedures and checklists assessed and updated.

Together with the implementation partner, you need to make an IT systems inventory assessment, a skill base assessment, support process and calls assessment and set down steady state definitions along with a knowledge transfer road map.

In the final analysis, only a periodic review of all the listed items in the support service is a surefire way of lasting success of any ERP program. n Brian Lobo is a Senior Vice President at Datamatics Global Service.

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information technology

3

D CAD systems are fast dominating the discrete manufacturing ecosystem, today. The degree of usage could vary from anywhere between one third to half the number of systems deployed by now. The remaining is used for drafting in 2D. Though there are still a few tasks that can be carried out more effectively with 2D CAD, these numbers give a clear indication that a number of organisations are still leveraging 2D CAD systems.

However for this group, the positive thing is that—they stand to benefit from the collective learning of all those companies, who have been deploying 3D CAD systems for over 10 years now.

Need for capable and efficient 3D design

The pivotal point of 3D CAD technology is a 3D master model, which is deployed in all aspects of the design to manufacture cycle—encompassing processes including design and verification, drafting, tool design, numerically controlled tool programming and inspection. It is absolutely imperative that a 3D model must accurately represent every part of the designer’s products, and the relationships among them.

To maximize the efficiency of the 3D program, a designer should leverage the capabilities of 3D—in as few steps as possible without compromising the quality of the product.

While evaluating a CAD software program, it is important for the evaluators to ascertain how efficiently each program can be leveraged to the particular design requirements of that particular organisation. If a company makes sheet metal parts, designers must focus on the special tools for creating them. and automatically generate flat patterns. In the event of need be to design stylish products, the company must leverage tools for creating freeform surfaces and blends between them. Designers of machinery should see how easy it is to assemble a large number of parts, and insert purchased parts such as fasteners from a library.

Effective Evaluation of CAD System

SaveS Time and money

3D CAD systems are much more efficient than 2D systems. However, working on a 3D CAD systems needs a better skill and more practice.

Choosing the right CAD vendor is very important, in the long run that saves from encountering several technical or commercial disputes. by ravi varadarajan

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3D caD model of a horizontal grinder

Because changes are inevitable, the designers must ascertain how easy it is to make these changes. A CAD system, which enables your design requirement with about 20 per cent less mistakes, will definitely lead to a cost saving. A 3D CAD system, which gives the best advantage to its user, usually is a combination of exceptional technical capabilities with reasonable cost of ownership.

Importance of bringing all parties together of the same page

In the current design to manufacture environment, very few manufacturers are vertically integrated.

A majority of them leverage the offerings of an ecosystem of suppliers for parts, tools, sub assemblies and design services.

This ecosystem often spans the whole world. Under such circumstances, irrespective of the part you play in this chain or where you are located, the exchange of CAD files between various participating organisations can bring significant advantages to those involved, in terms of cost and quality.

Therefore it makes good business sense to pick a 3D CAD system that is popular in a particular industry, and among the supplier community. This choice eliminates the need to translate

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files from one system to another.

Conversions and translations take time, and also result in a number of errors.

As a pivotal player in a design to manufacture community, it is important that the organisation studies the ability of each supplier and partner to import files from other systems.

It is imperative to ensure that suppliers support international standards such as STEP, IGES, VDA and IDF. It is important to evaluate factors like tools to repair damage to imported shapes, how easy they are to use, and how well they work. If the organisation needs to translate many files from several brands of CAD systems, it is advisable to evaluate the direct translators available with each CAD system, and also those from third parties that specialize in translation software.

Organisations must not limit their evaluation of data exchange capabilities to product geometry.

They must find out how convenient it is to import or export file properties and bills of materials.

Exchanging CAD files with customers or suppliers can save thousands of hours and weeks of cycle time compared to the cost of redrawing them interactively. The ability to collaborate in three dimensions on products and processes can reduce costs—while helping in delivering better products.

heat treatment. It is therefore imperative to ensure that the CAD system deployed can make drawings to your current standards for dimensions, tolerances, lettering and parts lists. And be sure your drawings can be exported in popular formats such as PDF, DXF and DWG.

Need for a reliable and stable 3D CAD program

Since 3D design systems are more complex than 2D drawing systems, with all that code, it is a greater challenge to maintain the integrity of the system. Unfortunately, there are no standard measures to ascertain standards for CAD. This is best determined by relying on the expertise of other users.

An organisation, engaged in large assemblies, must make sure that any CAD system they deploy is capable of handling their design requirements efficiently.

Some systems slow down when handling complex designs with a high part counts. Design team must pay special attention to assembly performance, if their products contain complex freeform shapes, helical sweeps etc.

Picture courtesy: 360 Grader Produktdesign of Oslo, Norway.

Picture courtesy: Vermeer Environmental Equipment of Pella, iowa.

information technology

Need to select appropriate drafting tools that meet the required standard

Despite designing in 3D, suppliers and the workers at the point of manufacture or assembly will need drawings. A clear drawing with highlight information that is not evident in a 3D model— such as dimensions and tolerances, material and surface-finish specifications, and notes about processing—such as curing or

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3D model of a Premacare Incubator

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Ensure a positive transacting environment

Though it seems farfetched, some of the greatest sources of friction between users of CAD and their customers are not related to the technology involved in the business,—like some players in all businesses, some CAD suppliers levy hidden charges for software and services that customers need.

To avoid these irritations and lower costs, the design organisation must identify technology providers who offer straightforward software packages that have everything a customer needs.

Companies must look at options like floating licenses that enable designers who don’t need CAD full-time to share licenses. And an organisation must ensure that its best designers can use the software both at work and at home without hassles.

Specialised, built-in application

The best way for an organisation to maximise their return on investments in 3D CAD is to leverage special purpose software for design automation, and analysis to simulate physical behaviour such as kinematics, dynamics, stress, deflection, vibration, temperatures or fluid flow. Look for a system that has integrated analytical tools or efficient interfaces to your preferred analysis software.

If an organisation makes products that are variants of a particular type like moulds, stamping dies, conveyors, or production equipment, it is best to partner with a supplier that has integrated software to automate the design of the variants in the desired products.

Organizations with more than just a few designers need product data management (PDM) software integrated with their CAD tools.

Files from 2D CAD systems can

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be organized in file directories.

But, because relationships among files in 3D systems are so complex, an automated system to store and organize them is necessary. Without PDM, designers can unknowingly overwrite each other’s work and waste hundreds of hours each year. PDM systems can do much more than just store and organize files. They can help designers find existing parts to reuse instead of reinventing them.

These systems also generate material lists for cost estimating and feed data to manufacturing resource planning (MRP) systems.

More advanced PDM software can automate change-control processes to assure that out-of-date or unreleased information isn’t sent to factories or suppliers. An organisation must ensure that every system has a complete and well-documented application programming interface (API). Good APIs let you write your own design automation programs. They also make it less costly for third parties to integrate niche applications with your CAD system.

The ability to be productive in the shortest possible time

It requires training and practice to become adept in 3D CAD. It is important that an organisation zeros in on a system that‫پ‬is easy to learn as well as capable. It is important to identify one that has a consistent user interface throughout. The design and drafting procedures must flow logically from start to finish. Some systems have hidden glitches that stop designers halfway through a task and make them start over.

To avoid developing training material, which is an expensive prospect, it is important that an organisation chooses a system with built-in tutorials, a rich repository of computer-based training aids, and a vibrant online community that lets workers ask

questions and get answers. You’ll also want a system that’s taught in local schools and universities, so you can hire students who are ready to work.

The important role of R&D

Computing technology is constantly changing. If your CAD vendor doesn’t take advantage of this evolution, in a few years you’ll find that your organization has an obsolescent and costlyto-maintain CAD system. Buy from suppliers that have a proven record of being manufacturing industry leaders with large and sophisticated R&D teams.

Integrated PDM software enables groups of designers to work together efficiently on common projects.

Why a successful partnership with a dealer is essential?

It is with the sale that a relationship begins between a CAD dealer and an organisation. Thus, it is essential to ensure that the selected dealer has the skills and experience to partner an organisation. At this point, an organisation must also evaluate the training and support capabilities of the dealer.

Thus, being quite the pivotal point of the design to manufacture process, to maximize the benefits from an investment in 3D CAD, a company must go through a careful process of evaluation. n Ravi Varadarajan is the Country Technical Manager—India & SAARC, Dassault Systèmes SolidWorks Corp.

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management & strategy

Modern organizations need to compulsorily handle many activities, which neither fall in their core business activity list, nor they (organizations) possess expertise in those. Thus after figuring out through proper analysis, outsourcing them to competent service providers helps them optimizing utilization of scarce resources and exploit new opportunities in their respective fields. by jayant balan

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I

n the intensely competitive and connected world that we live in, organizations are constantly seeking out new ways to outdo one another. But, where to compete? And, how to succeed? These are the questions, which leaders constantly grapple with, in their bid to emerge from the clutter.

Differentiation is the key to success in this situation, and organizations need to find new and innovative ways to use their limited resources to effectively implement their strategy in order to outdo competition. Resources need to be optimized in areas, which can add maximum value to the organization, and it is therefore essential that organizations understand these levers and deploy resources effectively—to manage these thrust areas.

Outsourcing helps companies look to the value chain for high leverage areas, and help them better utilize these resources to exploit these opportunities.

Today outsourcing is a means for achieving a competitive advantage by focusing on core competencies, and in effect outsourcing is about finding better ways of conducting business.

The classical organizational pyramid consists of four layers— Strategy, Process Design, Operations and Systems. The strategy and process design aspects are typically retained in-house to ensure overall control. But, the operations, systems and administration areas are most amenable to outsourcing.

The typical areas which organizations look to outsource are—Customer rela-

tionship management, Supply chain management and Back office functions including Payroll, Billing, Accounting and Investor relationship management.

Outsourcing allows organizations to use the specialized skills of the outsourcing partner, frees up internal resources to work on high thrust areas, enhances responsiveness to customer needs, and reduces financial risks by reducing capital investments.

The major reasons for organizations to attempt outsourcing are difficulties in hiring skilled professionals (28.8 per cent), lack of in-house skills to deliver the desired levels of quality (20.3 per cent), budgetary considerations (13.6 per cent), Management Mandate (11.9 per cent) and others (25.4 per cent).

Organizations therefore need to ask themselves a few important questions before embarking on the outsourcing journey. l Speed and cost for transformation—how long will it take to

transform the function or process internally vs. externally? l Attention—should management devote a significant amount of time and energy to this process? l Talent—are we putting our best people, with the appropriate skill sets, into these processes? l Capital—does the function win (or lose) the war for capital within the corporation? l Track record—does the function have a track record for meeting or beating its commitments? l Accountability—if the transformation is NOT successful, who will be held accountable? l Culture—does the function have the right culture to operate the future state model?

The answers to these questions will clarify the role of a particular improcess, its im portance and The Classical Organisational Pyramid consisting of four layers. whether

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Reasons for Outsourcing

it is a core competence of the organization.

While outsourcing brings with it risks related to information security, loss of control, confidentiality etc, it also provides significant benefits—if managed effectively. A few such benefits are—Pay only for what you need, the infrastructure is of the vendor, economies of scale with the vendor and reduction or control of operating costs.

The way to minimize risks and still enjoy the benefits of outsourcing include various approaches such as: l Choosing a service provider who provides you with ‘value adds’, services or products that may not be in the contract. l Developing a strong partnership with the vendor l Securing confidentiality l Simplifying the interface between the two organisations l Focusing on communication It is clear therefore, the future will belong to those organizations who can effectively marshal their limited resources, in the most cost effective manner in pursuit of their strategy. In order to outdo competition, one will therefore need to outsource selectively and effectively. n Jayant Balan is General Manager, manufacturing and supply chain, Unitary Products Business Group, Voltas.

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opinion The New Normal Is Starting to Take Shape

…Are You Ready?

Success in the emerging business scenario will depend on how fast a company can realign itself to support the requirements of its clients, rather proactively. Collaborative thinking of the smart business leaders, and building a strong and committed internal workforce will ease the path of success.

Smart business communication too will have a vital role in the process. by howard sherman

R

ecently, Doremus and the Financial Times collaborated on a survey called Decision Dynamics in which 470 worldwide senior level executives were asked: Which supplier is most likely to get work from you in tough times as compared to prosperous times?

Interestingly the top answer was not the cheapest or the supplier with the best/longest relationship, or even the one who could prove ROI. The answer was the supplier most proactive in helping you.

What this underscores is the new reality: That business has never been more complicated, demanding or high stakes.

One of the enduring residual impacts of the global economic meltdown is that successfully navigating the new business landscape will require skills and insights in which many senior executives do not feel entirely fluent. Collaborative thinking by smart people is going to be essential to creating short and long term success.

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multi-tasked, or companies that have recently been restructured. A strong and committed internal workforce ensures maximum effectiveness…particularly as new competitors emerge.

Rebuilding trust. with external audiences such as investors, customers and prospects…constituencies that may feel betrayed or neglected from corporate fallout.

Helping to identify priorities and create a strategy to Picture Courtesy: www.photos.com achieve them amidst Business communications an environment that is constantly agencies in particular, with their in flux. A seasoned and insightday-to-day experience creating ful perspective from a trusted solutions to complex business partner helps the forest emerge problems, are in a unique position through the trees. to offer that ‘proactive help’ to As senior executives navigate senior executives. Here are some the uncharted course ahead, comthoughts on what that type of help munications that interact, create may mean: a dialogue, and deliver a satisfyHelping clients accept ambigu- ing experience for internal and ity as the new normal. As one external audiences will go professor at a leading business far toward staking a successful school put it, “The ability to manclaim for clients in the ambiguous age the unknowable will be core new normal. to future leadership.”

Business communications can Adhering to a nimble frameclearly play a powerful role now work. Companies that can easily in readying companies to take on change their structure to meet new challenges as they prepare market demands have the advannow for short and long term tage over the over-layered. financial success.

Restoring internal relationIn an uncertain world, this is ships. A vital step for those one certainty. n companies recently downsized and where employees have been Howard Sherman is the President, Doremus.

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product update Bandsaw

Piston Pump

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he XT320 A-NC double column bandsaw from Kalamazoo Machine Tool has automated controls and heavyduty construction features to ensure precision cutting.

The machine features an automatic material sensor to detect the cut-off point and the material height. This helps improve productivity by eliminating two of the settings that traditionally need to be made by the operator.

The short three-inch minimum

leftover material remnant results in less scrap.

The bandsaw machine is engineered for maximum rigidity. The double arch frame dampens vibrations and ensures low flexing. The carbide blade guides run in large diameter bearings for frictionfree blade movement.

Kalamazoo Machine Tool Tel: +1-269-3218860 E-mail: wesaw@kmtsaw.com Website: www.kmtsaw.com

Rotary Table

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ntelLiDrives is now selling a new rotary table, model RR-18-14, which eliminates the backlash, friction and wear problems associated with worm, gear and belt drives. The new table combines axial brushless RotoLinear

motoring modules and planar air bearings into compact, direct drive configuration that provides rotation with precise positioning and velocity controls.

The unit features centre clear open aperture of 350 mm,

he ARO Fluid Technologies business of Ingersoll Rand Industrial Technologies has designed a series of highpressure piston pump packages that are suitable for the transfer and supply of mediumto high-viscosity materials.

The new product, viz., the ARO 65:1 ratio pump includes single-post and two-post extrusion pump rams and complete ram /pump packages for 5-gallon containers. The packages deliver down-force in a compact footprint and are suited to high-viscosity materials such as inks, caulks, mastics, lubricants.

total height 55 mm and delivers resolution of 1 arc-sec with torque of 32 Nm. The large open centre enables simultaneous access to parts from inside and outside of the table. This allows robotic devices, pick and place and ancillary tooling to be mounted inside the table to reduce parts handling.

The product is suitable for applications such as semiconductor assembly equipment, wafer inspection and cutting, optical applications, precision part indexing and robotics.

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leason Corporation has introduced Coniflex Plus, a dry cutting tool system for manufacturing straight bevel gears. The new product has a peripheral stick blade cutting tool system with positive blade seating to reduce cutting time and deliver improvements in gear quality and gear rolling characteristics.

The machine allows the use of coated carbide cutting tools in a high-speed dry cutting environment, eliminating the use of cutting fluids. It includes features such as free design of profile curvature, dish angle edge radius, and blade point. The Pentac stick blades, used in the cutter heads can be sharpened on standard Gleason stick blade sharpening machines.

Gleason Sales (India) Tel: +91-80-28524376 E-mail: bangalore.sales@gleason.in Website: www.gleason.com

The packages have been designed to handle fluids in excess of 1,000,000 centipoise and pressures up to 7,475 psi.

The unit includes a chrome-plated plunger rod and cylinder, making it suitable for pumping abrasive fluids. The tie rod construction allows quick teardown and repair to minimize downtime. The product also features a visible solvent cup and adjustable packing to minimize downtime, and extend the life of the pump.

Ingersoll-Rand Company Tel: +1-732-6527000 Website: www.ingersollrand.com

Vacuum Disc Sander

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ynabrade has launched a new line of 3-inch diameter vacuum disc sanders with vacuum shrouds to the capture of contaminants. The sanders are available in both self-generated and central vacuum models. They can be fitted with abrasive discs for material removal on non-ferrous surfaces such as carbon fibre, fibreglass and painted aluminium.

The flexible vacuum shroud, made of clear urethane, captures dust, debris and contaminants including hexavalent chromium to the vacuum source. In the self generated vacuum model, the tool’s exhaust directs contaminants to a portable self-contained vacuum system.

IntelLiDrives Tel: +1-215-7286804 E-mail: admin@intellidrives.com Website: www.intellidrives.com

Dry Cutting Tool

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Dynabrade Tel: +1-800-8287333 Website: www.dynabrade.com

Pressure Transmitter

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el-Tru Manufacturing has launched a new product to its silicon glass fused sensor series of pressure transmitters, viz., the P621 sanitary model. The new product enhances the sensing and monitoring capabilities of the dairy, food and beverage, pharmaceutical, cosmetic and biotech markets and the OEMs serving them.

The pressure transmitter features a single piece 316L

industry 2.0

stainless steel sensing element with a high output silicon glass fused strain gauge. This combination helps maximize cycle life in the presence of pressure spikes, vibration and aggressive fluid media. The unit is designed and manufactured in accordance with 3A standards.

Tel-Tru Manufacturing Tel: +1-585-2321440 E-mail: info@teltru.com Website: www.teltru.com

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product update Machining Centre

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atron Dynamics has introduced a compact highspeed machining centre, M75, that features a 30,000 RPM spindle and a 59 x 55-inch footprint.

The machine has a solid granite machining table, which provides 20 x 20 inches of work area, and a 1.2 kW machining spindle which delivers feed rates of up to 550 inches per minute.

The other features include a spray-mist coolant system, 10-station automatic tool changer with

Pressure-blast System

tool data base and tool-length sensor, Windows-based control software, a hand-held remote, and a full safety protective enclosure with lock out/tag out capability.

The M75 is suitable for the production of panels and housings, milling profiles and 2D or 3D engraving.

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uyson Corporation has launched a pressure-blast version of its model T-50 tumble-blast system for overall blasting of small components. The machine speeds up cycle time per batch and enables high-intensity shot peening of high performance springs and small parts, stripping of tough coatings, blast cleaning heavy scale, and etching of hard materials. The T-50 tumble-blast cabinet features a 30-inch diameter basket, which is 15 inches deep.

The product has a working capacity of about one cubic foot or 75 pounds of components per batch.

Datron Dynamics Tel: +1-888-262-2833 E-mail: info @ datron.com Website: www.datron.com

Guyson Corporation Tel: +1-518-5877894 E-mail: info@guyson.com Website: www.guyson.com

Radial Machine

Automation Drive

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niversal Instruments has launched 5.0/7.5/10.0 mm triple-span radial machine, which eliminates tedious manual assembly and improves product quality. The machine is suitable for production of power supply, white goods, military and aerospace electronics production that involves 5.0, 7.5 and 10 mm lead span components.

The machine is available in both stand-alone and pass-through configurations. A 15 mm dispense head tooling is available for reducing dispense time requirements.

Universal Instruments Tel: +1-800-432-2607 E-mail: universal@uic.com Website: www.uic.com

anfoss has introduced the VLT AutomationDrive FC 300, a single drive concept, which controls all operations ranging from standard to servo motors on any machine or production line.

The standard versions of the product cover a wide range of functions such as PLC functionality, automatic fine-tuning of motor control and self-analysis of performance. Besides, positioning, synchronizing, load estimation and servo performance are also available. All versions

of the unit share an identical user interface. The unit includes the ‘Precise Pulse Stop’ feature, which makes the conveyors follow the encoder from master conveyor or virtual master drive.

The product includes smart logic controller, which helps keep the drive, motor and application working together.

The controller monitors a specified event.

Danfoss Tel: +1-45-74882222 Website: www.danfoss.com

Centric Gripper

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chunk has launched a new line of three-finger centric grippers, the PZB-plus. The product includes a central bore, which is designed as a sleeve and is equipped with threads for customer-specific add-ons.

The central bore can work to supply material, or as an ejector.

It can also be used to monitor the handling or assembly process with a camera system, or to pick up work pieces and centre them using the sleeve during the gripping process.

Threads are also integrated on the upper face of the gripper, in addition to those on the cover plate, to

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january 31, 2010 | industry 2.0

facilitate mounting of customerspecific add-ons.

The product is available in two different stroke length versions.

The smaller stroke results in approximately double gripping force. The six sizes from 64 to 200 are fitted with a multitooth guide, and the gripper is capable of handling 100 per cent higher torques in directions at right angles to the gripping motion.

Schunk India Tel: +91-80-40538999 E-mail: info@in.schunk.com Website: www.schunk.com

- technology management for decision-makers

Vibratory Screener

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ason Corporation has designed a new vibratory screener that discharges oversize particles around the periphery of a circular screening deck. As material is fed on the centre of the screening deck, on-size particles pass through the screen and funnel through a lower discharge chute. Oversize particles flow outward in a spiral pattern and cascade at over the periphery of the circular screen onto a spiral vibratory trough that

directs the material into a high capacity discharge spout.

The unit is suitable for screening of wet or dry bulk materials containing a large percentage of oversize fractions. The product can be equipped with accessories such as clean-inplace spray heads and anti-blinding devices.

Kason Corporation Tel: +1-973-4678140 E-mail: machsales@kason.com Website: www.kason.com

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Bag Gripper Tool

Vertical Carousel

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ardexRemstar has developed a new Megamat vertical carousel to provide medical device companies with clean room storage that helps save up to 85 per cent of their space. The product comprises an enclosed system of vertically arranged shelves that provides quick-access storage for class 1 to 100,000 clean room environments. The full enclosure allows for cleanliness of stored items.

The units are ergonomically designed to present stored items at an ideal height for picking, and

help contribute to employee safety and improved productivity. Bar code scanning is available while picking items to ensure increased picking accuracy and to eliminate errors.

With the integration of inventory management and control software, the carousel system is able to perform functions such as product segregation and labelling.

KardexRemstar Tel: +1-800-6395805 E-mail: info@KardexRemstar.com Website: www.kardexremstar.com

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AS Automation is offering a robotic bag gripper tool for lifting heavy bags off a roller conveyor.

The tool is equipped with stainless steel fingers that are designed to avoid interference with the rollers.

The product is capable of handling bag weights of 25 lbs to 60 lbs.

The tool requires one pivot point with one cylinder to rotate the fingers to grab the bags, reaching in between the rollers to secure the bag underneath. The machine can handle bags that deform significantly due to heavy contents, such as salt, food products, or dry concrete mixtures.

The robot picks up the bag, rotates the EOAT gripper to the

right position to place the bag on a pallet and repeats this function until the first row on the pallet is loaded. This action is repeated, placing bags on top of each other to the required levels.

SAS Automation Tel: +1-937-3725255 E-mail: getagrip@sasgripper.com Website: www.sasgripper.com

Dustless Shrouds

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Reversible Boom Crane

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ir Technical Industries is offering a reversible boom crane with either wireless remote or pendant control. The new product enables safety and flexibility in lifting, handling and transporting heavy loads in most narrow passageways.

All functions of the hydraulically operated crane can be remotely controlled, including propulsion, speed acceleration or deceleration, steering, boom lifting and lowering, telescopic boom action, cable lifting and lowering, mast rotation, powered outriggers and any other optional attachments such as jaw grabs, bundle grabs, large shovel scoop or forks. The machine is available in capacities from 1,000 to 20,000 pounds.

Air Technical Industries Tel: +1-888-8576265 E-mail: ati@airtechnical.com Website: www.airtechnical.com

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grinders, such as the W21230, W23-180, W23-230 and W25-230.

The unit includes moulded vacuum ports, which allows vacuum connections of 2.5” internally or 2-3/4” externally.

The grinder shrouds are suitable for concrete construction and renovation, including surface preparation, removing coatings, leveling, removing overpour and other applications.

Metabo Corporation Tel: +1-800-6382264 Website: www.metabo.us

Carbide Core Extensions

Turbine Flow Meter pirax Sarco has developed the MassTracker insertion turbine multi-variable flow meter which combines the measurement of mass or volumetric flow, density, temperature and pressure into instrument.

The instrument is suitable for flow monitoring of steam and natural gas, combustion air, flue gas, and a variety of liquids in line sizes from 3 to 80 inches.Use of the product results

etabo Corporation has launched 5” and 7” dustless shrouds for concrete surface grinding.

The convertible new products, when used with the proper vacuum system, help protecting users from silica dust exposure in accordance with Occupational Safety and Health Administration (OSHA) regulations.

The 5” shroud allows for the use of 4”, 4-1/2” and 5” diamond cup wheels and fits Metabo’s W8, W11 and WE-14 series compact angle grinders, whereas the 7” shroud fits Metabo’s large angle

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apra Corporation has produced a new line of carbide core modular extensions in three sizes to accommodate ¾”, 1”, 1-¼” and 1-½” modular head sizes. The carbide core helps enhance vibration dampening capability, reduces deflection and improves rigidity. The extensions feature cylindrical shanks in standard inch sizes. They are suitable for milling chucks or standard end mill holders. Optional add-on extensions for an additional 2-inch reach, are also available.

in negligible pressure drop since it employs a low-mass rotor design fabricated from a single solid block of stainless steel. The product includes six field-installable cartridges with different turbine pitches and NIST traceability.

Dapra Corporation Tel: +1-800-2433344 E-mail: info@dapra.com Website: www.dapra.com

Spirax Sarco Tel: +1-800-5750394 E-mail: InsideSalesLeads@Spirax.com Website: www.spiraxsarco.com/us

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- technology management for decision-makers | january 31, 2010

55

product update Hot Melt Adhesives

Spool Gun

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obart Welding Products has launched the DP 3545-20 spool gun for optimised aluminium and other soft alloy wire welding. The new product plugs directly into Hobart’s IronMan 230 MIG welder’s wire drive system. It uses 0.030 to 0.047 inch aluminium, steel and stainless steel wire, and can handle a wire speed range of 200 to 1200 IPM. The product is rated at 200A at 60 per cent duty cycle, and weighs 8 lbs with the cable assembly. The unit also features cable sheath and spring strain relief, spool canister, which protects the wire and allows users to see the spool easily, easy-to-remove barrel assembly, and extra drive rolls.

Hobart Welding Products Tel: +1-800-6269420 Website: www.hobartwelders.com

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ranklin Adhesives & Polymers has launched the Acrynax line of acrylic polymer hot melt adhesives, which provide an environmentally safe alternative to solvent-based products for medical and industrial applications. As a fully reacted hot melt adhesive, Acrynax can be used in the same equipment as rubber-based hot melts without requiring equipment clean-outs. As they are fully cured, the adhesives allow for higher coating speeds.

The adhesive is available in four formulas to meet product requirements. Two higher viscosity polymers, Acrynax 11588 and Acrynax 11891, provide high shear strength. The lower molecular weight polymer, Acrynax

Steel Enclosure

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eidmuller has redesigned its line of Klippon small terminal box (STB) stainless steel, polished and electro-polished enclosures for hazardous environment applications. The new versions meet the latest cULus, ATEX and GOST standards for hazardous area equipment, and are suitable for use in the process, oil and gas and petrochemical industries.

The stainless steel STBs are available in eight different sizes.

They are equipped with a high temperature silicone gasket that enables them to be used in areas where temperatures range from -50°C to +135°C. The enclosure

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leetwoodGoldcoWyard has introduced a robotic tray system (RTS), which utilizes robotic technology to provide a buffering and

accumulation system within the can end manufacturing processes.

The RTS consists of four separate systems, all functioning together as one unit. In the infeed lanes, can ends feed into the RTS. The continuous flow of can ends in the infeed section is separated into sticks for handling.

FleetwoodGoldcoWyard Tel: +1-630-7596800 Website: www.fgwa.com

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january 31, 2010 | industry 2.0

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luid Components International (FCI) has launched the 180 series OEM flow sensors that employ FCI’s thermal dispersion sensor technology to handle a wide range of OEM applications. The products have no moving parts and are minimally invasive. The two platinum RTD sensors are mounted in miniature thermowells.

The sensors provide switching, alarming, rate metering and totalizing of air, gases or liquids and are suitable for fuel and air feed lines, additive dispensing control, oil and lubricant circulation, pump protection circuits, cooling system controls, over/under flow limit switches, etc. They are designed for use in line sizes ranging from 0.25 to 6 inches (6 to 130 mm).

Fluid Components International Tel: +1-760-7446950 Website: www.fluidcomponents.com

Water Filter

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Robotic Tray System

- technology management for decision-makers

Franklin International Tel: +1-800-8774583 E-mail: abberaabe@franklininternational.com Website: www.franklinadhesivesandpolymers.com

Flow Sensors

is designed to withstand aggressive industrial environments.

The other features of the product include a welded internal and external ground stud, fitted to meet grounding requirements, and a ground screw installed on a removable lid. Besides, it has pre-fitted mounting lugs to prevent the enclosure from vibrating loose from its mount during operation.

Accessories such as cable entries, adapters, blanking plugs, sealing washers, lock nuts and breather plugs are also available.

Weidmuller Tel: +1-800-8499343 Website: www.weidmuller.com

4326, exhibits high peel strength, quick stick and loop tack values.

Acrynax 11891, a cross-linked polymer, provides a balance of shear, tack, peel and cold flow resistance..

orsta Filters has launched a series of self-cleaning water filters with green-rinse technology.

The filters can be fitted to pipes

ranging from 1 to 36-inches, and employ inlet water pressure alone to clean themselves.

The products are made of stainless steel, and are designed

to provide a long-term solution to a wide range of industrial and municipal applications. The product does not require changing bags, cartridges or even stopping the flow for cleaning. The water filter clean themselves automatically without interrupting the main flow of up to 20,000 gpm in a single unit.

Forsta Filters Tel: +1-323-8235535 E-mail: info@forstafilters.com Website: www.forstafilters.com

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