Mt 01 04 2018

WPP license no. MR/TECH/WPP-74/North/2018 License to post without prepayment Postal Registration No. MCN/154/2017-2019 Published on 5th of every month. Posting date: 7th & 8th of every months Posted at Patrika Channel Sorting Office, Mumbai-400001 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959

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WPP license no. MR/TECH/WPP-74/North/2018 License to post without prepayment Postal Registration No. MCN/154/2017-2019 Published on 5th of every month. Posting date: 7th & 8th of every months Posted at Patrika Channel Sorting Office, Mumbai-400001 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959

TOTAL PAGES 66 VOLUME 8 | ISSUE 4 | APRIL 2018 | `50

AUTOMOTIVE INDUSTRY IN THE FAST LANE

ERP CLOUD MANAGER

heer

LEADER CHRISTINA RUGGIERO, CEO, HINDUSTAN COCA-COLA BEVERAGES (HCCB), PROMISES TO HONE PROCESSES AND OFFER READY SUPPLY OF THE BEVERAGES IT MAKES

Published by ITP Media (India)

CONTENTS

20 CHEER LEADER

CHRISTINA RUGGIERO, CEO, HINDUSTAN COCA-COLA BEVERAGES (HCCB), PROMISES TO HONE PROCESSES AND OFFER READY SUPPLY OF THE BEVERAGES IT MAKES.

8

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AUTOMOTIVE INDUSTRY HAVING EXPERIENCED SUCCESS LOCALLY, INDIA’S AUTOMOTIVE & ANCILLARY AUTO COMPONENTS INDUSTRY IS NOW CHASING ATTRACTIVE EXPORT MARKETS TO FURTHER ITS GROWTH.

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ERP TODAY’S ROBUST ERP SOLUTIONS ARE ESSENTIAL FOR MANUFACTURING COMPANIES TO MAP AND INTEGRATE A RANGE OF CRITICAL PROCESSES, AND FURTHER MANAGE THEM THROUGH CLOUD COMPUTING.

48

STEEL WITH STEADY DEMAND FROM THE AUTOMOTIVE INDUSTRY AND MANY INFRASTRUCTURE PROJECTS IN THE PIPELINE, THINGS ARE LOOKING UP FOR THE STEEL INDUSTRY.

52

R&D IN MANUFACTURING R&D IS THE PILLAR ON WHICH MANUFACTURING STANDS. A COMPANY WITH A STRONG FOCUS ON R&D AND INNOVATIVE PRODUCTS WILL FACE A LOWER ATTRITION RATE.

APRIL 2018 | Manufacturing Today

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EDITOR'S NOTE

TRADING TACTICS

Jayashree Kini Mendes

Mitalee Kurdekar

THE PAST FEW WEEKS HAVE SEEN A GLOBAL trade policy volley of sorts being played out. US President Trump’s recent policy announcements have brought turmoil to global markets, even as manufacturers across the world try to gauge the implications such measures will have on their businesses. The latest salvo by the US Administration affects India’s export subsidy programme, and is perhaps a continuation of Trump’s earlier threat to emerging economies regarding reciprocal import taxes. The US claims that export subsidy programmes for emerging economies harm American workers by creating an uneven playing field, in addition to the existing cost differentiation with emerging economies like China and India, where protectionist tax shields exist.

This has resulted in a raging debate in India, with some analysts feeling that given the small size of its exports, India shall not be adversely impacted by this position taken by the US Administration. Others feel differently. Yet, the larger question may be one about self-introspection.

If India has aspirations of becoming a leading economic power in the world, then it needs to think more holistically.

This cannot be achieved merely by relying on domestic demand; exports are a key aspect of this plan. The Indian Government, through Make in India and similar programmes, has already set the ball rolling. Any spokes in the wheel of growth will therefore seem unwelcome. And a trade war is just that.

Having said that, this situation offers food for thought for the Indian administration and Indian businessmen regarding whether or not we continue to take refuge behind such artificial barriers as subsidies, and if yes, for how long.

While we may not have chosen these trade wars, they are definitely upon us. Therefore, it is only prudent to put our best foot forward, and to do so, we may need a change of tactic. Perhaps it is time to emerge from the shadows of the past and demand the leadership position that we covet.

After all, to be declared a leader, one must be willing to compete with equals.

ManufacturingToday DECISIVE TOOL FOR MANUFACTURING EXCELLENCE

Volume 8 | Issue 04 | April 2018

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APRIL 2018 | Manufacturing Today

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Kishore Jayaraman, President, Rolls-Royce South Asia

Manish Kulkarni, Director – Strategy & Business Development BDB India

N Tarachand Dugar, President, All India Manufacturers’ Organisation (Also chairman, Dugar Group)

Pradeep Bhargava, Director, Cummins India

Raj Singh Rathee, Managing Director, KUKA Robotics India

Rajesh Nath, MD & CEO, German Engineering Federation (VDMA), India

Robindranath Som, President, Nickunj Eximp Enterprises

Satish Jamdar, Chief Mentor and Advisor, American Vision

SM Bhat, Managing Director, Ador Welding

Dr. Wilfried G Aulbur, Managing Partner, India, Chairman, Middle-East, Head, Automotive Asia, Roland Berger Strategy Consultants

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NEWS KEY HAPPENINGS

GODREJ AEROSPACE, ROLLS ROYCE LAUNCH CENTRE OF EXCELLENCE conel, stainless steel and titanium. It will commence manufacturing in bulk to prove the production readiness within the next two-three months.

With an investment of Rs 500 million towards this facility, Godrej Aerospace opens itself to a global marJamshyd Godrej (left) and Kishore Jayaraman inaugurate the CoE. ket size in excess of Rs 15,000 million.

Jamshyd Godrej, CMD, Godrej & Boyce Godrej Aerospace inaugurated its Centre of Excellence (CoE) in Mumbai. Recognising Go- stated, “Godrej has been a pioneer in developdrej’s expertise, Rolls-Royce had expanded its ing advanced capabilities in aerospace manupartnership and awarded contracts worth Rs facturing and has ably served the domestic 2,000 million spread over next five years. The programme for three decades. We have an contract is for manufacturing unison rings, integrated facility meeting diverse demanding complex fabrication and external brackets requirements of for making precision compocommodities which once in manufacturing, will nents and assemblies.” result in shipment of 600 parts spread across Kishore Jayaraman, president, India and Rolls-Royce Civil Aerospace Engine portfolio.

South Asia, Rolls-Royce, added, “We are deThe newly inaugurated CoE will be one veloping strategic partnerships across our supof the best aerospace facilities in India for ply chain. With the expansion of this partnermanufacturing of aerospace brackets. This ship, our focus will be to meet our customers' facility’s metallurgy capability includes in- requirements in quality, cost and delivery.”

WABCO ADVANCES CV INNOVATION AND TECHNOLOGY LEADERSHIP COMMITMENT; APPOINTS NEW CTO Jacques Esculier, WABCO WABCO Holdings Inc., a leading chairman and CEO. “By bringglobal supplier of technologies that improve the safety, efficiening his extensive commercial, cy and connectivity of commeroperational and engineering cial vehicles, has promoted Dr expertise to this role, Dr BrenChristian Brenneke’s as its new neke’s appointment powerfully underlines our continued Chief Technology Officer (CTO). strategic focus to expand and Underlining WABCO’s commitment to differentiate through Dr Christian Brenneke globalize WABCO’s extensive the development of pioneering portfolio of commercial vehicle technology for increasingly autonomous, con- safety and efficiency technologies.”

WABCO’s technology portfolio includes mulnected and electrified commercial vehicles, Dr Brenneke will now combine his current tiple commercial vehicle industry-firsts, such as responsibilities as Vice President, Engineer- anti-lock braking systems, collision mitigation ing, with those of the CTO to lead WABCO’s systems, electronic stability control and autoglobal innovation and advanced product de- mated manual transmission controls. In 2017 alone, WABCO invested a record $147 million velopment strategy.

“Technological innovation is at the very heart in product development and engineering and of WABCO’s top line growth success,” said was granted 383 new patents.

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APRIL 2018 | Manufacturing Today

AUTOMATION FAIR 2018 HONES TO BOOST MFRG INDUSTRY TOWARDS GDP 25% More than 200 CXOs representing 22 leading corporate vowed to contribute towards India’s GDP target from 17.1% to 25% at India’s largest automation fair RAOTM 2018 held in Gurugram. The Fair was attended by more than 1,000 manufacturing engineers and software experts from corporate such as Cisco, Endress & Hauser, HMS Industrial Networks, ESK Automation, Pentair& Hoffman, to name a few.

Amitabh Kant, CEO, Niti Aayog, in his message, sent for the occasion, focused on how automation can bring radical changes in manufacturing. He said, “Smart manufacturing practices will not only increases productivity but also improves the quality of employment opportunities.”

Dilip Sawhney, MD, Rockwell Automation, said, “Automation leads to new manufacturing opportunities and is slated to be more skill intensive, making manufacturing in India a better place ensuring an increment in production. The manufacturing industry aims to adopt ‘Smart Factory’ also known as industry 4.0.”

Frank Kulaszewicz, senior VP, global operations, Rockwell Automation, said that ‘Rockwell which is $7.47 billion US-based company and derives almost 20% of its global ventures from the AsiaPac region, has major plans for India. Rockwell expects 60% of its global revenues to flow from non-US markets, especially the two largest emerging markets like India and China, by 2018-2019. To enable Indian industries to be globally competitive, smart manufacturing practices will not only increase productivity but also improve employment opportunities in India.

RAOTM 2018 is an extension of the Annual Automation Fair held in the US. This fair showcases the innovative strategies which shall help the industry to be globally competitive.

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VLC 200 GT

HIGH PERFORMANCE HARD MACHINING FOR GEARBOX PARTS PRECISE

DYNAMIC

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HIGHLIGHTS + Reduced machining time: The combination of hard

pre-turning and finish grinding reduces machining time.

+ Maximum workpiece quality: A combination of the best technology and a single clamping operation is used to ensure the best workpiece quality.

+ Shorter process chain: By combining the different processes, the process chain can be shortened.

+ Maximum technological diversity: Internal and external grinding spindles, tool block holders or the time-tested EMAG turret equipped with 12 tool positions are available.

Technical data for the VLC 200 GT: Chuck diameter, max. 210 mm I Swing diameter, max. 270 mm I Workpiece diameter, max. 160 mm I Workpiece length, max. 100 mm I Travel distances X (total stroke from pick-up to turret) / Z 1,700 / 250 mm I Loading time (depending on clamping device) 6 – 10 sec. I Main spindle capacity: 40% duty cycle / 100% duty cycle, 22 / 18 kW I Main spindle torque: 250 / 202 Nm I Main spindle max. speed: 3,000 rpm I Spindle bearing dia., front: 110 mm

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NEWS KEY HAPPENINGS

TATA BOEING INAUGURATE ITS STATE-OF-THE-ART APACHE FUSELAGE FACILITY

The team of TBAL at the inauguration.

Tata Boeing Aerospace (TBAL), a joint venture between Boeing and Tata Advanced Systems (TASL) inaugurated its state-ofthe-art facility in Hyderabad. Spread over 14,000m2 and employing 350 highly skilled workers, the facility will be the sole global producer of fuselages for AH-64 Apache helicopter delivered by Boeing to its global customers. The facility will also produce secondary structures and vertical spar boxes of this multi-role combat helicopter. The delivery

of the first fuselage is expected in 2018.

Nirmala Sitharaman, Minister of Defence, Government of India, said, “The manufacturing of advanced defence platforms and being integrated with the complex global supply chain will help our aerospace industry acquire technology, build local capability, provide employment and become a global exporter."

“TBAL is just the beginning of Boeing’s future journey of partnership with India,” said Pratyush Kumar, president, Boeing India.

“We see this as a major step towards opportunities to pursue the co-development of integrated systems in aerospace and defence.”

Boeing is expanding its engagement with India’s Ministry of Defence to deliver advanced capabilities to the Indian military. It has developed a competitive supplier base in-country that is integrated into Boeing’s global supply chain. The Indian Ministry of Defence finalised an order with Boeing for 22 AH-64E Apache helicopters in September 2015, deliveries for which are scheduled to begin in 2019.

SCHNEIDER ELECTRIC INDIA’S COMMITMENT TO MAKING NEW INDIA ENERGY POSITIVE AT THE INNOVATION SUMMIT Schneider Electric hosted its first Innovation Summit in India on March 19 and 20 in New Delhi. The summit brought together more than 2,000 customers, policy makers and industry leaders. Leaders shared critical insights on how automation and digitisation are helping to manage energy with disruptive technology tools leading to efficiency in business.

Addressing the plenary, Amitabh Kant, CEO, Niti Aayog, said, “We are creating 100 smart cities with another 50 cities which will be connected by metro and a few connected with bullet trains. The government is converging physical infrastructure with biometricbased digital infrastructure to improve human lives with uninterrupted water and electricity supplies, efficient public transportation, quality education and healthcare services.”

Anil Chaudhry, zone president and MD, Schneider Electric India said, “Our technologies are powering businesses and key government programmes including Make in India, Smart Cities mission and electric mobility.

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APRIL 2018 | Manufacturing Today

Nearly 15% of India’s solar capacity is based on Schneider technology. Digitisation and IoT are going to transform India’s energy ecosystem so that all citizens have access to uninterrupted electricity at affordable rates.”

The event featured interactive deep-dive sessions among 50 expert speakers from Schneider Electric besides a group of customers and partners from India and across the Asia Pacific region. The sessions included those on intuitive industries, living spaces of the future, leveraging IoT in manufacturing, re-imagining data centres for a connected tomorrow, empowering industrial OEMs for the digital era, inclusive growth of India through skill development and rural electrification.

The summit also showcased Schneider Electric’s Innovation Hub, an exhibition of the company's portfolio of software, solutions and services. The integrated zone displayed its next-generation EcoStruxure architecture and platform that delivers IoT-enabled open and interoperable solutions across user segments.

UNDER 60 SECONDS Mahindra & Mahindra and LG Chem have announced a collaboration in the field of advanced Li-ion battery technology. Under the aegis of this collaboration, LG Chem will develop a unique cell exclusively for India application and will also supply Lithium-ion cells based on nickelmanganese- cobalt (NMC) chemistry with high energy density. These cells will be deployed in the Mahindra and SsangYong range of electric vehicles.

LG Chem will design the Lithium-ion battery modules for Mahindra Electric, which in turn will create battery packs for the Mahindra Group and other customers. A battery module plant is also under development. The plant will have a capacity of half a million battery modules per annum and will house a pack line and the entire facility is expected to go into production in the last quarter of 2020.

The first-ever BMW 6 Series Gran Turismo has rolled-out of BMW Group plant Chennai. With this, the Munich luxury carmaker has taken its locally produced car models to 9. BMW Plant Chennai will also start the local production of MINI Countryman this year.

BMW Group Plant Chennai locally produces the BMW 3 Series, the BMW 3 Series Gran Turismo, the BMW 5 Series, the BMW 6 Series Gran Turismo, the BMW 7 Series, the BMW X1, the BMW X3 and the BMW X5.

As part of its global wireless strategy for 2020, TUV Rheinland plans to invest more than Euro 40 million in its wireless area in the next three years. These funds will be used to develop the testing facilities for future technologies, such as eCall and NBIoT, and increase wireless laboratory capacities as a whole. With this investment programme, TUV Rheinland is strengthening its position on the rapidly growing global IoT market and continuing its successful course in this area.

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COLUMN

AN APP METHOD

JINEN DEDHIA BELIEVES THAT MANUFACTURERS MUST INVEST IN APP REFACTORING THUS ALLOWING THEM TO REACH OUT TO EVERYONE.

IT AUTOMATION IN INDIA'S MANUFACTURING sector began nearly two decades ago with companies investing in tools such as ERP, SCM, CRM, sales automation, and distribution management. Some companies implemented shrink-wrapped packages and others relied on home-grown, custom-built systems. With the passage of time, manufacturers are looking at modernising those same enterprise applications, making them ready to address their present-day requirements.

Legacy application modernisation becomes a big challenge in the context of enterprise mobility. Organisations have to ensure that their legacy solutions are suitable for present day needs and also available in the form of mobile apps offering great user experiences.

SOLVING THE MODERNISATION PUZZLE The early legacy modernisation efforts by Indian manufacturers included disruptive, time-consuming, and expensive methods such as migrating the programming languages, databases and OS, and carrying out reprogramming for new (branded) systems. With the rising popularity of APIs, manufacturers have been employing a less disruptive method of API enablement which improves backend and cloud integrations while making new code-writing redundant.

However, even API enablement involves hassles in developmental and time-to-market. Besides the common application integration issues, API enablement mandates developers to discover and implement rules, incorporate business-logic and validations to determine what information is displayed to which user. Developers also have to pay attention to API inventory visibility, security, API ownership, budgets, compliance, and monetisation.

APP REFACTORING: AN APT SOLUTION Given this backdrop, a new technology approach of app refactoring has emerged as an ideal alternative for manufacturers fighting their legacy battles. App refactoring neither involves rewriting code nor discovery and re-incorporation of business rules that the earlier approaches necessitated.

This advanced method involves connecting to business applications directly through the browser, and

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generating virtual APIs, transforming the user experience while inheriting all security and business logic.

Thus, with sizable time and cost savings that app refactoring yields, manufacturers can introduce new mobile apps at a faster pace.

With app refactoring, manufacturers can extend the functionality of the modules/features of their backend applications to modern apps which can be accessible across mobiles, tablets, and browsers. These modern apps use the native device features besides leveraging the advantages of the Web. A single container app can host multiple such micro apps.

For example, a construction firm, with the use of IoT data or equipment-based alerts can keep a real-time check on supply inventory via apps. Senior managers can monitor the raw material required for mixers or the fuel levels in power generators at different sites. This captured data can be interpreted by another analytics app providing inventory-insights to the CPO’s team to streamline supply-forecasts and ordering.

Many manufacturers spend crores of rupees on training. While these are essential expenses, ensuring RoI becomes a cause of concern. Modern apps along with app refactoring and containerisation can improve RoI in such cases drastically.

Take an example of a cement factory which has a reservoir of safety videos meant for its employees.

Showing these videos in the company’s auditorium may impose time and place limitations on the number of videos that can be shown and the number of people who can watch these. Creating a small app and pushing all content to every user’s smartphone can allow all staff members to view them. The approaches to modernisation rely heavily on Web APIs. Web-enablement potentially exposes the organisation to Internet-led threats.

Moreover, some manufacturers may have resources on intranet portals that are inaccessible via Web. Security and access control, thus, are the two critical essentials manufacturing organisations must invest in.

A prior due diligence and incorporation of technologies such as API gateway, secure app proxy and modern authentication methods such as OAuth 2.0, can help them with Web-enablement of resources besides mobile app-creation in a speedy and secure manner.

The author is co-founder & MD, DronaHQ.

Manufacturing Today | APRIL 2018

17

ADVERTORIAL CASE STUDY

INDUSTRIAL MACHINERY AND HEAVY EQUIPMENT

Grind Master Grind Master engineers complex machinery with Solid Edge the United States, the United Kingdom, China and South East Asia to become an elite world-class machine builder. Grind Master has annual revenues of about $18 million, and employs a staff of more than 250.

L

eading Indian machinery manufacturer improves engineering capability while reducing lead time and costs

A LEADER IN METAL FINISHING A pioneer and leader in India, Grind Master Machines Pvt. Ltd. develops and manufactures machinery and robotic automation solutions for metal finishing, nanofinishing and deburring.

Founded in a rented garage more than 30 years ago by the entrepreneurial couple of Milind and Mohini Kelkar, the company has grown from making two to three machines per year to manufacturing 450 machines annually in three state-of-the-art factories and additional manufacturing support units.

Through innovation and engineering efficiency, Grind Master has grown dramatically over the past three decades to offer one of the widest ranges of special-purpose machines for deburring, grinding, polishing and microfinishing processes to suit every industry need. The company’s product lines include metal finishing machines for tubes, bars and cookware; deburring machines for gears and castings; superfinishing and microfinishing machines for transmission and engine components; and robotic solutions for a variety of metal finishing and automation processes. The company also provides consumables for the machines it manufactures, including coated abrasives and superfinishing films.

More than 4,500 Grind Master machines are in operation in India and the rest of the world.

Grind Master has reached out to the world market and established alliances in Germany,

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APRIL 2018 | Manufacturing Today

MORE ADVANCED ENGINEERING TOOLS FOR MORE COMPLEX PRODUCTS In the early days, Grind Master engineered its machines using paper drawings produced on drawing boards. The company began digitizing engineering with the advent of 2D computer-aided design (CAD) tools in the 1990s, and used 2D technology to develop belt grinding and deburring machines.

In the early 2000s Grind Master ventured into superfinishing and microfinishing machines that were much more sophisticated and complex than earlier products.

In addition, clients began to request customengineered machines that used combinations of standard modules to meet specific requirements. Engineering these products using 2D CAD technology was cumbersome and inaccurate, and became a major bottleneck.

For example, a typical crankshaft microfinishing machine has more than 5,000 components, and using 2D design technologies, Grind Master had difficulty meeting delivery schedules. It was difficult to visualize and conceptualize products, and there were many errors in detailing. Furthermore, the explosion of engineering data associated with the more complex machines created problems in managing data and producing large numbers of drawings.

The company turned to 3D solid modeling to address these challenges, selecting Solid EdgeÂŽ software from product lifecycle management (PLM) specialist Siemens PLM Software as the appropriate solution. After evaluating other 3D CAD alternatives, the company chose Solid Edge based on the brand and the maturity of the software, its continuous capability enhancements and better integration with other tools such as robotic simulation, additive manufacturing and advanced computer-

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EARLY 3D CHALLENGES Moving to 3D engineering presented special challenges. The Grind Master engineering team was organized and trained for working on 2D software, and retraining the team and changing the mindset to working in 3D was a major hurdle.

Another major challenge for Grind Master was establishing a data management system, with rules for managing models and drawings and maintaining discipline in data management and storage.

The company also deployed company-wide data security measures, including encryption and data loss prevention, and needed to synchronize these with the engineering data.

PHASED DEPLOYMENT AND EXPANSION OF 3D DESIGN Grind Master deployed Solid Edge in a phased approach. In the first phase, Solid Edge was used to engineer the new superfinishing machines, and existing machines were converted to Solid Edge development. In the second phase, Solid Edge was used to engineer new microfinishing, robotic automation, and dynamic balancing product lines. In the most recent phase, Grind Master has expanded the installation to include advanced capabilities such as piping and simulation.

Grind Master machines use state-of-the art technologies in mechanics, electrical and control systems, and peripheral systems, including coolant filtration, pneumatics and hydraulics. Although the engineers initially used Solid Edge for basic modeling of parts, the growing sophistication of machines has led to the use of Solid Edge capabilities for piping and tubing design, which has resulted in better aesthetics and energy ef-

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ADVERTORIAL CASE STUDY

aided engineering (CAE) software.

Solid Edge was initially deployed at Grind Master for development of a range of machines in early 2000.

ficiency. Using Solid Edge tools for engineering analysis has helped Grind Master to optimize mechanical structures and components and evaluate alternative materials. The use of simulation has also helped the design review process by providing insights into the performance of various components.

In Grind Master’s business of customized specialpurpose machines, the advanced 3D visualization capabilities of Solid Edge are key to securing new projects and for design review and approval. The company uses various 3D representations to present products to customers during the presales/concept phase, and during the engineering phase for approvals.

BROADER BUSINESS BENEFITS Grind Master’s expertise in Solid Edge and engineering complex products has enabled the company to enter into collaborations with technology leaders in the United States and Italy. Grind Master personnel design and draft all the machine content using Solid Edge, and collaborator experts provide design reviews and validation. The collaborative efforts have resulted in new business lines for Grind Master that include dynamic balancing for crankshafts and advanced gear chamfering and deburring solutions.

Grind Master’s recent entry into robotic automation products for metal finishing and machines for robotic deflashing and fettling are revolutionizing the Indian foundry industry. Engineering these products involves complex workspace evaluation and motion engineering, which must be conducted simultaneously with robotic simulation software. Engineering these systems with Solid Edge has made this possible.

“Grind Master has a long-term relationship with Siemens PLM Software and Vedang Infotech that extends beyond the Solid Edge deployment,” says Prashant Jadhav, manager of design at Grind Master. “The wide range of solutions of Siemens PLM Software is complemented by the application knowledge and support of the channel partner, Vedang Infotech. This has enabled Grind Master to leverage the maximum benefit from the software and deploy it horizontally across its complete range of machinery.”

Manufacturing Today | APRIL 2018

19

COVER STORY HINDUSTAN COCO-COLA BEVERAGES 20

CHEER LEADER

CHRISTINA RUGGIERO, CEO, HINDUSTAN COCA-COLA BEVERAGES (HCCB), PROMISES TO HONE PROCESSES AND OFFER READY SUPPLY OF THE BEVERAGES IT MAKES.

BY JAYASHREE KINI MENDES

APRIL 2018 | Manufacturing Today

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COVER STORY HINDUSTAN COCO-COLA BEVERAGES www.manufacturingtodayindia.com

Manufacturing Today | APRIL 2018

21

COVER STORY HINDUSTAN COCO-COLA BEVERAGES

1. An in-house laboratory conducts random checks of the final output.

2. Every visitor to the plant has to fulfil the obligation of reading the safety rules.

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FEW FIRMS ARE AS DEFINED BY A SINGLE product as Coca-Cola. Even fewer firms are as widely known as the dark sweet beverage and its 'contour' bottle. In reality, Coke (as it is popularly known), the drink, has spread far beyond populated civilisation and into the domains of every newer geographies.

Today, the behemoth continues its march looking for new territories to colonise with several more brands under its umbrella. It is also one of the few companies that has been through war and peace since starting operations in 1886.

In India, Hindustan Coca-Cola Beverages (HCCB), as it is called, is the fifth largest FMCG company that owns and operates 21 factories. Besides this, it sources from and supports 11 contract packing plants, has a network of 4,000 distributors and two million retail outlets. Any investment by HCCB is always positive news for a country rife with economic challenges.

HCCB needs the large number of plants as it manufactures and distributes Coca-Cola, Sprite, Maaza, Fanta, Thums Up, Limca, Smartwater, Minute Maid range of juices, Kinley and Bonaqua and Schweppes packaged water, Schweppes soda, mixers and Gingerale, Aquarius, Kinley soda, and Georgia tea and coffee. Such a wide array has pushed HCCB to newer ambitions. It has set itself a target to reach $2.5 billion in revenue by 2020. Achieving this called for process-

es and organisational changes, which is what CEO Christina Ruggiero has set out to do. She took office in June last year after HCCB’s earlier CEO, T Krishnakumar was elevated to the role of president India and South West Asia for Coca-Cola.

HEADY MIX An outsider may find it puzzling that personnel at a wellestablished and much-sought after brand could have much to do at their work place. Shouldn't the system run itself? But Ruggiero has got her work cut out for her. Having spent time as chief procurement officer and handled production and distribution at the head office in Atlanta, Ruggiero is now manoeuvring the nuances of the Indian terrain. She says, "Our systems are in place. We are now sharpening our focus on being a total beverages company. The task is to make available to consumers, what they want to drink, versus asking them to drink, what we make available."

Consumers are fastidious. HCCB knows that. To ensure that consumers have quick access to the beverages, the conglomerate refined the operating structure and simplified processes. It expanded operations to seven zones from the current five. The corporate resources were also reorganised to serve in the zones and factories. The refashioning strengthened sales and supply chain, thereby creating several hundred new jobs. HCCB alone employs 8,000 people, which does not include people working for the 4,000 distributors and 20 lakh retailers across 25 states.

The growth plan also aims at opening one million new outlets by 2020, taking it to three million.

The plans include following priorities of being consumer- and customer-centric, driving revenue growth, building a strong and agile system that has efficiency as its core, digitising the enterprise, and unlocking the power of associates (employees).

Little wonder why Ruggiero likens her job to an orchestra conductor. "We all play to the same tune but each has a different instrument. Also, we need to be able to play a different tune at different times, and each with equal finesse and style," she adds.

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COVER STORY HINDUSTAN COCO-COLA BEVERAGES

Over the years, HCCB has opened new factories that are state-of-the-art and have lesser environmental footprint, while closing old factories, which were unviable and used old technology. These are initiatives taken of its own volition. For e.g. one of its newest factories at Bidadi (Karnataka) is highly automated and much more digitised and has one of the lowest water and energy usage ratios of all the bottling factories of The Coca-Cola Company, across the world.

RIGHT SOURCING For 2018, HCCB is operating with the largest ever portfolio of products than in any other year. Ruggiero says, "The products we manufacture and distribute straddles an entire range—from value to premium, glass to tetrapak, and cans from 100ml to two-litre."

The company is vigilant when it comes to sourcing raw materials and packaging, which constitute the major part of the products. Gaurav Khosla, senior VP, procurement, HCCB, says, "Our entire ecosystem hinges on sourcing the right ingredients at the right time and price. About 85-90% of our suppliers are Indian companies. Once our suppliers have undergone the rigorous process of being approved, they know the rules they have adhere to. Sometimes, inclement weather can play havoc with supply. That is where demand forecasting and procurement must be worked out to the last detail. In addition, we also procure CO2, PET, glass, refrigeration equipment (visicoolers, chest coolers, etc.) and much more, throughout the year."

Specialised category managers keep a sharp eye out for global commodity trends that could unexpectedly impact raw material prices in India. HCCB plays a balance game between risk and opportunity creation.

Khosla's job is indeed demanding. Strategies call for sudden change and what held true six months ago may not be viable anymore. In such a scenario, he prefers to block certain raw materials for the next few months if need be. It is not surprising that long before Make in India emerged, HCCB stoutly stuck to local sourcing of produce that goes into its beverages.

Of course, demand forecasting is an important aspect of planning — peak season or not, low demand or high. "Supplying optimum quantities during peak season tests our mettle. Then there is the service. A dedicated team manages demand planning and acquires information from the operations team. We refer to historical trends. Of course, there are the trials of new products and its associated commercial activities for the month," adds Khosla.

Price volatility is another major challenge. Sometimes, prices move between 50-600% either way.

Having said that, HCCB continues to fulfil its obligations and takes pride that as a company it has evolved its systems to a point where it can be present in the consumer’s life, every time they reach out for a bever-

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TO ENSURE QUICK ACCESS, HCCB HAS REFINED ITS OPERATING STRUCTURE. age. Ruggiero says, "It is about keeping their faith, each time. We are leveraging on e-commerce. For a traditional FMCG company like us, this means taking a fresh look at our supply chain and distribution systems and building the capability of an 8,000 people strong workforce to leverage digital mediums." It is quite a task, she phews. No wonder the capability building teams conduct an average of two weeks training per month, through the year.

A MOVING STORY Though MNCs account for a few thousand jobs, they own or orchestrate a supply chain that accounts for over a large percentage of trade. No point in getting your manufacturing right if you cannot get your distribution right. Though HCCB has a national manufacturing capacity, certain capacities are national, some cater to a specific geography, and some are for local. For example, its returnable glass bottle capacities typically do not travel large distances. "Our other packages, which are not returnable in nature, travel longer distances, which is where we have a national or geographical level manufacturing footprint, says Dinesh Jadhav, executive director, supply chain, HCCB. Any FMCG company worth its salt strongly relies on continuous replenishment system for inventory management. Norms about maintaining minimal inventory ratios are adhered to stringently. Replenishment of a

3. Production changes can be quite sudden depending on orders clocked into the system.

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COVER STORY HINDUSTAN COCO-COLA BEVERAGES

LITTLE KNOWN FACTS  Re-prioritisation

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4. Gaurav Khosla, senior VP, procurement.

5. Dinesh Jadhav, executive director, supply chain.

6. Harish Bhutani, CFO. 7. Prasanna Borah, CIO.

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of the model: From volume to revenue with volume - As a manufacturing & distribution company with large capital investments, it must balance quantity and quality of growth.  In 2018, it will manufacture and distribute the widest portfolio of beverages than ever done - from premium to value.

Value: Introducing Maaza Refresh - Scaling the distribution of the entire juice range - Piloting Fanta Fruity Orange in Maharashtra; this new product has 10% juice in a carbonated Fanta Premium: Introducing Maaza Gold, Smartwater, Schweppes water, Thums Up Charged, range of Minute Maid juices Segmented Execution: Not every product will sell in the same channels  Focus on the frontline - State-wise business plans this year versus a national strategy. India does not behave like one country, when it comes to food, drinks, language and choices - Juices will be distributed through the mainline distribution channels since attaining the required scale - Automation and digital integration till the last mile. Last year, HCCB introduced the Sales Force Automation tool that allows sales team to take orders from retailers online  Setting up the Premium division - Designed to focus on servicing customer (retailers/grocers /restaurants/McDonalds, et al) requirements around niche and premium beverages - Selling premium products needs different skills, since it's time intensive, volumes are small, educate retailers  Capability building, intensive training - How to execute in a segmented way - How to sell premium products - Creating the right sales story for every product - Familiarity and ease-of-use of digital tools - Safety culture across the company - Atleast two weeks training every month on the above  Horizontal and vertical expansion - 1 million new outlets by 2020, thereby adding to the 2mn - Sell a large cross section of products to existing outlets  Digitising the enterprise - Sales Force Automation tools - Digitising and connecting 100% of distributors, which currently stands at 65% - All standardised work/transactions moved to Shared Services; a centre of excellence within HCCB, which functions like a KPO - Predictive maintenance at factories instead of prescriptive.

The new factory at Sanand, Gujarat, is the first one that is coming up with this concept. The factory is scheduled to go live in April. HCCB has invested Rs 450 crore - Catering to consumers and customers, who now shop in a variety of ways – it could be e-commerce, warehouses, grocery shop, Hypermarts.

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BEHIND THE SCENES Between demand and supply, HCCB has its manufacturing units that run like clockwork. It's easy to see why. All its plants work three shifts and employees ensure that they meet all orders. The Wada plant on the outskirts of Mumbai is a fine example of conscientious manufacturing. The plant sources surface water from about 16km away and has installed its own pipeline to draw water to the plant. The water is purified through filtration, chemical coagulation and reverse osmosis to be made ready for the next process. Similarly, other ingredients such as sugar also undergo a purity test and the vats are cleaned regularly to eliminate all sediments.

The plant follows batch production and changes to the batch are made based on orders logged into the ERP. Batch of beverages are sent to the laboratory for random checks to check for imbalances, if any. HCCB has preferred to import advanced machinery for the manufacturing process. The system is so advanced that

even minutely defective glass bottles are rejected by the system, and accepted ones go through a 6-7 step cleaning process before going in for filling. HCCB uses preforms to make full-blown PET bottles, which again undergo cleaning through a filtered airor and then with chlorinated water. High-resolution cameras installed at regular intervals scan for defects and deviations and interrupt operations if need be.

Another operation HCCB follows is unanticipated audits conducted by third-party professionals like ISOcertified agencies or The Coca-Cola quality team.

In all this information technology (IT) is at the heart of what HCCB wants to accomplish by 2020. In most cases, IT is often invisible, however, HCCB prefers that it lead from the front. Prasanna Borah, chief information officer, says the digital factory at Sanand will introduce the concepts of predictive maintenance and upkeep versus the prevalent prescriptive concept. "We hope to get this factory underway in H12018. When it goes live, it will also do away with the need to maintain separate records and performance delivery specs.

The machines will record and store the performance

8. Procurement of seasonal fruits is planned much in advance based on demand forecasting.

9. The manufacturing process is neat and HCCB ensures that customers get the best experience out of its beverages.

COVER STORY HINDUSTAN COCO-COLA BEVERAGES

particular SKU is different for for every location, based on demand. Supplying to one million outlets sounds Herculean. Yes, complexities do arise. Jadhav has to ensure that warehousing and logistics segues with manufacturing and planning. "Cross functional detailed planning helps since we are investing in planning as a process, and certain methodologies required to handle increased complexity," he adds.

One of Jadhav's key role is drawing up a strong blueprint in increasing reach from warehouse to store. The increase in product portfolio and SKUs only makes it that much more complex. HCCB well knows that every outlet may not need all the SKUs it has. So sketching out a segmented strategy for fulfilling demand, measuring service levels, are all in day's job for the team. Right execution daily (RED) is critical and the entire system is created around it working well for the supply chain and taking the company to the next level.

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COVER STORY HINDUSTAN COCO-COLA BEVERAGES

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metrices to an automated database, thereby helping us analyse big data. Such concepts are prevalent in consumer marketing but not so much for machines."

Another example is the continuous roll out of Service Management software like SuccessFactors and KRONOS. SuccessFactors has streamlined the process of performance management, target setting, incentives, bonuses, etc., while KRONOS has rationalised the process of marking attendances, calculating wages and overtime, etc.

Ruggiero says, "For me, digital is not a strategy; it is a way of doing business. We use our IT capability to segment and distribute our products in the right channels and right outlets; at the same time, we are leveraging digital to ensure a cost-efficient, uninterrupted supply of high quality, great tasting products. There is a massive level of complexity here that we are trying to solve by leveraging IT and building people capability."

Harsh Kumar Bhutani, CFO, seeks ways for sustainable growth. "One of our biggest focus is to strengthen our front end, i.e. focus on execution. The other focus is segmented execution and this can only happen on the back of IT, a strong supply chain, data analytics and razor sharp execution. The third is capital management. We would like to allocate resources not only for 2018, but also for 2019 and 2020 aspirational growth targets."

10. HCCB has a dedicated SNOP team that works continuously to optimise production cycles and manage supply chain.

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HOW GREEN IS MY WORLD As one of India’s top manufacturing companies, preserving and protecting the environment is a responsibility that HCCB takes seriously. It is inspired by the government's vision of achieving 40% cumulative electric power capacity from non-fossil fuel-based energy resources by 2030. It procures and uses solar power and clean energy like CNG/PNG to meet energy requirements. About five HCCB factories (two in Karnataka and three in Andhra Pradesh and Telangana) already use solar and clean fuel for their energy requirements.

SUPPLY CHAIN INNOVATIONS Heat-resistant tarpaulin: is a packaging material that ensures freshness of beverage products during transportation, even in India's heat conditions.

An in-house innovation, it offers the benefits of a conventional tarpaulin and doubles up as insulation to help reduce the temperature of a shipment to 5-60 lower than outside temperature. Lowering the temperature improves CO2 retention.

Package Innovation: Known as Affordable Small Sparkling Package (ASSP), this new 250ml bottle keeps products fresh and affordable. The ASSP bottle's opening was redesigned to reduce the amount of gas loss from the cap. A new protective inner coating lengthens shelf life by five months.

The bottle also uses lesser PET resin than other PET packages of same size.

Storage and warehousing: HCCB installed the automated storage and retrieval system (ASRS) for storing finished products at its warehouses.

ASRS stores accurate, real-time data on inventory, thereby eliminating the need for physical inventory inspections and providing direct access to items.

Contrary to popular belief, the Coca-Cola system is a miniscule consumer of water representing only 0.023% of the 40 billion m3 of water consumed by industries in India. Preserving water is at the heart of its sustainability strategy. By implementing best-inclass technology, recycling and reusing water, implementing local projects that revitalise watersheds, it has created a water replenishment potential of 148% compared to the total water used in the manufacturing processes. Even the bottling plants recycle water to the best extent possible.

Such a massive programme across processes makes it hard to not realise why its beverages brands are the most recognised everywhere.

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ADVERTORIAL COLUMN

SHOPFLOOR INNOVATION:

AN UNTAPPED OPPORTUNITY

AN ORGANISATION NEEDS TO INCULCATE A CULTURE OF INNOVATION AMONG SHOP FLOOR EMPLOYEES. THE RESULTS CAN BE TREMENDOUS.

BY TEAM BFW INNOVATION HAS BEEN A BUZZWORD FOR some years now. It’s a practice that allows man to apply his creativity to situations that ends up delivering dramatic results. Unfortunately, there is a common misconception that innovation is a senior management prerogative mainly in the glamourous professions. This is probably because innovation is initiated by senior management and its application in electronics, telecom and medicine has been widely publicised.

Innovation has its place everywhere from electronics to education to nanotechnology and non-profit organisations. Anyone can innovate. Simply put, innovation is a new way of doing things. It involves the application of a new approach to an existing process or product. In this context ‘new’ means something that did not exist in the past or something that existed in a different field but has not been used in the context for which it is now being applied. The ‘knuckle’ ball is an innovation in cricket but existed in baseball for several years.

There is no industry where there is no scope for a better way of doing things. In manufacturing, innovation can contribute a lot to productivity but there are barriers that need to be overcome. The three primary barriers to innovation are inertia, resources and attitude.

Innovation requires intellectual effort of looking at how products/processes can be improved upon. This is the effort that many are unwilling to put in. It is human to not want to do anything uncomfortable and innovation demands that one step out of one's comfort zone.

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A key barrier to innovation is that it requires allocation of scarce resources—time and money. As most companies are constantly engaged in work, innovation is seen as an interruption of routine work. Winning companies prioritise innovation and make the necessary investments in innovation. They are paid back in the very same resources that were scarce with products/ processes that ultimately reduce time and cost.

The third barrier is that innovation is seen as an elitist activity for only ‘creative’ people and senior managers. This attitude is limiting because it disqualifies many people from the innovation exercise. The truth is that everyone is creative and can innovate if they want to.

What stops companies Manufacturing is hampered by the need for innovation. Industry 4.0 is based on application of IoT, analytics, AI and many other technologies for manufacturing, which is what innovation is all about. This is just the tip of the iceberg when one sees the potential for innovation. Not enough manufacturing companies are taking on being innovative. Maybe it is the rather ‘fixed’ nature of manufacturing with standardised processes to make standard products that reduces the perceived need for innovation. It may be difficult to believe but the shop floor can be a fertile ground for innovation. It is at the heart of any manufacturing company.

This is where work gets done so logically and where the maximum opportunity for innovation exists.

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Some ready tools IRIS from BFW is an example of shopfloor innovation combined with Industry 4.0. This service from what is a predominantly product-oriented company demonstrates that innovation can come in any form. IRIS offers real-time monitoring of machine shop floor performance such that it improves productivity and preempts breakdowns. It is a connected factory solution with a control panel that is compatible with leading CNC brands - Fanuc, Siemens and Mitsubishi.

IRIS monitors the data generated by the machine and assesses the operating situation. Based on the analysis, it generates alerts and reports on different aspects of the machine and operator performance that are important to the manager. It helps in assessing operator productivity, quality, reporting on cycle times, energy consumption, machine efficiency and alerts on maintenance.

IRIS helps assess operator productivity in a variety of ways from identifying whether they are following the machine programme set by their supervisor, excessive time taken to load/unload the components, reasons for machine idleness, and many more.

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To monitor quality, the system will send emails and SMS alerts in different pre-programmable situations such as machine in breakdown mode or override high/low mode for more than 30 minutes.

Production managers get data on cycle times, energy consumption, machine efficiency and tools and consumables consumption that is vital for accurate costing of jobs.

By determining performance, availability and quality, IRIS identifies Overall Equipment Efficiency (OEE) of each asset. Additionally a variety of reports are available that enable management decisions. Lean and fast maintenance is possible through IRIS because of an operator-friendly control panel that allows easy diagnosis. Real time alarm information is available to production supervisors for quick action.

IRIS works not just on BFW machines but any machine that uses Fanuc, Mitsubishi and Siemens CNC machines. It is expected to provide a real breakthrough in terms of decision making and performance for companies employing machine tools.

Given the many benefits of shop floor innovation, it is important that companies create a culture of innovation. Here are some ways of making this happen.

Make innovation a priority: Companies are so used to ‘business as usual’ that they rarely look at ways of doing things differently. Unless there is a sense of urgency created it is unlikely that there will be any efforts made by employees to do things differently.

Create a system for identifying problems/solutions: In many cases, companies learn to live with certain problems. Identifying these problems and encouraging suggestions is an effective way of kick starting the process.

Being non-judgmental: The biggest barrier to innovation after inertia is the fear of criticism. While building a culture of innovation being harsh in one’s judgment of employees’ idea will make them reluctant to come forth with ideas.

Rewards and recognition: Setting up a system of reward and recognition incentivises employees to move out of their comfort zone.

Training: Employees must be trained on how to approach ideation. Having ideas is not enough. There needs to be a means of refining the idea for success.

Building a process to ensure continuous operation of the new idea is also part of successful innovation.

Setting large innovation targets: Once the team has developed a culture of innovation, the organisation can identify key areas that they want impacted by innovation and set aggressive targets that are being capable of achieved.

The shop floor is a hotbed of manufacturing activity.

Innovation is a powerful tool for driving value. It’s imperative that the two should come together to transform the performance of the company. Herein lies the progress for manufacturing.

COLUMN

People on the shop floor are extremely experienced and experts in their specific areas of work. With a little encouragement and dismissal of psychological barriers they can be in a great position to innovate in their realm of the job. Multiple forms of innovation can lead to exponential reduction in time, cost and effort.

Whether it is in materials handling, sequencing, quality control, information technology and personnel management, there is tremendous scope for innovation.

One of the most famous examples of process innovation is Henry Ford’s invention of the world’s first moving assembly line. By simplifying vehicle assembly, this process innovation dramatically reduced the time taken to produce a car from 12 hours to 90 minutes.

Some companies use technology to track parts.

Monitoring parts as they move through the assembly line gives a better control of operations, better efficiency and inventory management. Tracking parts keeps them on top of the situation allowing them to address queries on delivery in a more informed manner. Large car companies have extended this approach to even after the car leaves the company so if a defect is detected later and cars have to be recalled they have a means of knowing the cars that have the defective part/s.

Another useful innovation has been the use of web cams and tablets for on site and remote maintenance.

Cameras can provide a view inside cramped spaces and broken machines where humans can’t get visual access without dismantling the structure. Real time video can enable remote support. A tablet is useful in this context as it enables online ordering of damaged parts.

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SPECIAL FEATURE AUTOMOTIVE INDUSTRY 1

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SPECIAL FEATURE AUTOMOTIVE INDUSTRY

IN THE FAST LANE HAVING EXPERIENCED SUCCESS LOCALLY, INDIA’S AUTOMOTIVE & ANCILLARY AUTO COMPONENTS INDUSTRY IS NOW CHASING ATTRACTIVE EXPORT MARKETS TO FURTHER ITS GROWTH.

BY MITALEE KURDEKAR THE AUTOMOTIVE INDUSTRY IN INDIA IS presently in an enviable position. Having witnessed steady growth in the country, the industry is set for a continued upbeat performance in the coming years. Not only are Indian companies influencing this growth, but many global players who are represented in the country through subsidiaries or joint ventures, are in fact rejoicing based on their success in the domestic market, more so because this is helping them to stem falling fortunes in their home market or other major markets.

For instance, Hyundai’s Indian arm’s performance is said to have helped the Korean company offset falling numbers elsewhere. Honda, on the other hand, has turned out best revenue contribution from Indian operations. Also, Maruti Suzuki has been playing a key role in the fortunes of Suzuki Motor Company, where the Indian business accounted for more than half of the Japanese parent company’s vehicle sales in 2017. These companies, in addition to some European ones, have established manufacturing units in India, and have demonstrated that by tending to Indian tastes and going in for local manufacturing, these operations can be a well-paying proposition.

While this is a fairy tale for the Indian automotive in-

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dustry, the credit for this performance must go to all stakeholders. On their part, OEMs and component makers have certainly pursued the right strategies with regard to new investments for local manufacturing, technology upgrades and market expansion. Over the past few years, the Indian Government too has undertaken a slew of initiatives like Make in India, Skill India, rationalisation of the tax structure etc., which have only paved the way for these manufacturers to go in for all round growth. They are answering the Government’s clarion call with the right and, more importantly, timely response. An example is the eagerness with which many manufacturers are pursuing the Government’s target for electric mobility by 2030 with the development of plans for electric vehicle technologies.

CURRENT STATE OF AFFAIRS In fact, most automotive and auto component manufacturers are not content with the current situation; they are looking to the future with a renewed vision.

While passenger car sales in the current Indian market are subdued, the export potential for the same is on the upswing due to demand from neighbouring countries. But the most heartening factor for the domestic market is the rising demand for commercial vehicles.

1. While passenger car sales in the current Indian market are subdued, the export potential for the same is on the upswing.

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SPECIAL FEATURE AUTOMOTIVE INDUSTRY 2

“We are positive about the government outlay on infrastructure and road development projects, which would lead to a very good growth.”

– RT Wasan

“Anticipated jump in exports, as per industry analysts, is expected to be as much as 26% of India’s GDP by fiscal 2020-21.”

– Nishit Behera 2. Given the growth prospects, manufacturers are willing to invest in automation.

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OEMS AND COMPONENT MAKERS HAVE CERTAINLY PURSUED THE RIGHT STRATEGIES WITH REGARD TO NEW INVESTMENTS. Providing hard facts, Aditya Shrivastava, senior VP, manufacturing, VE Commercial Vehicles, explains, “India is the fourth largest auto market in the world, and with a growth of more than 9% between January-November 2017, India’s domestic market is expanding at a pace faster than China, the US and Japan. The trend is expected to continue even in 2018, supported by positive policy reforms like GST and vehicles scrapping policy. India is also the fifth largest commercial vehicle (CV) manufacturer in the world.

The CV industry is on a roll with an excellent growth trajectory since September 2017, and is expected to touch its peak in 2018.”

RT Wasan, head, sales and marketing, commercial vehicle business unit, Tata Motors, says, “The increased demand for vehicles across segments and production ramp-up of the new range of BS-IV vehicles has given a strong boost to the overall sales growth. We estimate the growth to continue unhindered in the coming year. We are positive about the government outlay on infrastructure and road development projects, which would lead to a very good growth and sustained pipeline for the tipper segment.”

Of course, the auto components and ancillary industry’s support in all this has been noteworthy, in turn helping OEMs to pursue their business targets as also undertake technological enhancements. In fact, the credit rating agency ICRA has recently upgraded the Indian auto component industry’s growth to 13-15% in FY18, a raise from the earlier prediction of 9-11%.

Speaking about such opportunities, Suresh KV, country head, ZF India, points out, “The auto components industry has huge potential to grow in the Indian market. Initiatives like Automotive Mission Plan 2016-26 (AMP 2026) and R&D Infrastructure Project (NATRiP) have created a conducive business environment for auto component makers. Make in India has encouraged component makers to expand their manufacturing base in India for production of localised components. Recently, the government also announced the launch of Make in India 2.0, which will further pave the way for the growth of the auto

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SPECIAL FEATURE AUTOMOTIVE INDUSTRY

“VECV has built capability and competence to produce Euro VI engines that are manufactured at the company’s Pithampur plant to be exported to Volvo, Sweden.”

– Aditya Shrivastava

3. With growing competition among players, product differentiation is becoming increasingly vital.

components sector by facilitating the incorporation of high-tech solutions.”

Nishit Behera, executive director – business development & strategy, RSB Transmissions (I), agrees with this assessment. He proclaims, “The auto component industry is expected to have robust growth. Anticipated jump in exports, as per industry analysts, is expected to be as much as 26% of India’s GDP by fiscal 2020-21. Auto component exports will be the third largest in the world by 2025, as per the latest statistics.” RSB has already installed the latest state-of-the-art technology and robotics across their plants at Jamshedpur, Pune, Pantnagar and Lucknow, in anticipation of any surge in demand.

Satish Joshi, director, Micro Supreme Auto Industries (I), claims, “There are tremendous growth prospects for the auto components industry. We are increasing our resources viz. manpower and state-ofthe-art machinery to cater to the growing demand. As a long-term plan, we have already purchased more land and built a new plant.”

DRIVEN BY TECHNOLOGY Although most industry players are enjoying the fruits of their labour in terms of good growth prospects, the competition could get tough with any external influences like trade barriers or costs escalations. Every-

one is aware of this and hence the industry is keen to consider technology interventions at every stage of manufacture, and also for other processes like logistics etc. In this context, component suppliers play a pivotal role in supporting automotive OEMs. After all, product differentiation is key for everyone operating in this space.

“In line with VECV’s vision of driving modernisation in India and the developing world, VECV has been on the forefront for developing new products under its Pro series with advanced technology and frugal engineering,” supplies Shrivastava. He elaborates that VECV’s contribution through advanced telematics in

ICRA HAS RECENTLY UPGRADED THE INDIAN AUTO COMPONENT INDUSTRY’S GROWTH TO 13-15% IN FY18.

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POLICY PURSUITS All those that we spoke to about the support the industry receives, were emphatically positive about the Government’s business facilitation initiatives. Even as some industry players experienced initial pains during

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their operations with respect to demonetisation and the introduction of GST, they also felt that, after that momentary hiccup, these changes were ultimately beneficial for the industry’s growth.

Speaking about GST implementation, 4 Shrivastava professes, “The government policies such BS-IV norms, GST and even demonetisation have augured well for the industry. The immediate impact of GST was positive for our customers, as it was seen to bring a reduction in taxes on an average basis, and we passed the expected benefits in the form of price reduction to our customers. GST has also simplified logistics and transportation and brought in the much-needed efficiencies in distribution and enhanced overall productivity of the economy. The new tax regime is proconsolidation on a distribution basis and the hub-andspoke model will become more and more relevant.”

Wasan recollects, “GST implementation had its share of challenges as the economy, and the CV industry, went through the initial phase of adoption with various uncertainties. However, since those early days of GST implementation, we have seen the economy has picked up strongly. Transporters are also beginning to see the benefit of ITC (Input Tax Credit) on all purchases as they are adopting RCM (Reverse Charge Mechanism) and therefore are able to bring down the overall costs.”

From a component manufacturer’s point of view, Behera of RSB highlights, “Implementation of GST through a hassle-free e-commerce platform has been beneficial due to the subsuming of different taxes levied erstwhile as the taxes are charged by the consumption state rather than the origin state, which has given a boost to the auto component industry.”

In fact, most industry insiders are on board with the way policy has shaped up, and the way it is helping shape up the automotive industry. With things in control on the home front, there is certainly nothing standing in the way of automotive OEMs and auto component makers making their mark in international markets. For now, they are well and truly in the driver’s seat.

SPECIAL FEATURE AUTOMOTIVE INDUSTRY

the form of Eicher Live has helped its customers with tracking their fleet. In addition, VECV has also introduced zero emission smart electric buses.

“VECV has built capability and competence to produce Euro VI engines that are manufactured at the company’s Pithampur plant to be exported to Volvo, Sweden. The company’s plant in Pithampur is the exclusive manufacturing hub for the Volvo Group for all their medium-duty truck requirement for Europe,” he adds.

Speaking of differentiation, Suresh feels, “Product differentiation and constant innovation is imperative for auto component players to fight off intense competition in the market.” ZF is developing mechatronics solutions, which can help in the development of safer driving interfaces, without affecting the core dynamics of a product. ZF India will also offer advanced driver safety systems and solutions to its customers in the country. “ZF has also developed a Driver Distraction Assist and Wrong-way Inhibit systems, designed to prevent accidents that happen due to lapses in attention and due to vehicles driving in the wrong direction,” he says.

RSB Transmissions too has developed many unique applications within their offerings. They also have a subsidiary – I-Design Engineering Solutions – providing integrated engineering solutions right from designing through prototyping and testing. Behera suggests, “Our focus area is cost effective, durable, rugged and technologically advanced engineering solutions, keeping pace with the changing day-to-day automotive scenario.”

Regarding similar initiatives in other processes, quality-related initiatives come into focus. Joshi explains, “At Micro Supreme, we have started a ZED (Zero Defect Zero Effect) certification scheme. We are pursuing a zero-defect policy seriously. Because of zero rejection, our export orders are increasing.

We are also looking for automated & reliable inspection systems.”

Even though the proposed transition to BS-VI standards means that there lies a huge task ahead, Wasan is positive about the change. He says, “Whether the technology is available in any other market or not, we (in India) have to generate solutions and expertise that are relevant and specific to the market/ region and then facilitate an eco-system to successfully implement the same. At Tata Motors, transition from BS-IV to BS-VI was a difficult decision as the development of the BSVI technology was the single largest investment the company has made in a particular technology.”

“Initiatives like Automotive Mission Plan 2016-26 (AMP 2026) and R&D Infrastructure Project (NATRiP) have created a conducive business environment for auto component makers.”

– Suresh KV

“We are increasing our resources viz. manpower and stateof-the-art machinery to cater to the growing demand.”

– Satish Joshi

4. ZF believes in constantly innovating with its products, such as the EPB (Electric Park Brake) technology.

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SPECIAL FEATURE ERP

CLOUD MANAGER TODAY’S ROBUST ERP SOLUTIONS ARE ESSENTIAL FOR MANUFACTURING COMPANIES TO MAP AND INTEGRATE A RANGE OF CRITICAL PROCESSES, AND FURTHER MANAGE THEM THROUGH CLOUD COMPUTING.

BY MITALEE KURDEKAR

1

“I DON’T NEED A HARD DISK IN MY COMPUTER, if I can get to the server faster,” Steve Jobs, cofounder and former CEO & chairman of Apple Inc., once said. He went to add that carrying around non-connected computers was byzantine by comparison. Years later, these words ring truer than ever before. A case in point is the swift evolution of enterprise resource planning (ERP) solutions, especially with the latest development of add-ons made possible by Cloud Computing and the Internet of Things (IoT). These tools are all coming together as new of-

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APRIL 2018 | Manufacturing Today

ferings in the form of SaaS (Software as a Service).

And any manufacturing company worth its salt will tell you that modern-day ERP software is proving to be indispensable to their operations.

In fact, ERP solutions today are not confined to implementation within an organisation’s campus.

With capabilities provided by faster machines, networks and internet-based platforms, the task of interacting with resources outside the campus by binding them to forge integration for one common business advantage has become a reality now. The

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SPECIAL FEATURE ERP

ERP SOLUTIONS TODAY ARE NOT CONFINED TO IMPLEMENTATION WITHIN AN ORGANISATION’S CAMPUS. ments. With the growth in mobile devices and ease of Internet accessibility from remote locations, there is no need for local storage as one can remotely access stored data at the click of a button.

efforts involved in achieving this objective are enormous, but not insurmountable.

After all, imagine the power of scaling up gradually, as opposed to the usual fear of large capital investment in advanced ERP platforms and modules.

If your business requires an application to connect your stakeholders and generate more sales, you either develop or get one developed as a SaaS. If that does not work, you can drop it, and move forward to another one at a nominal cost. Jobs’ words seem almost prophetic when one looks at these develop-

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AN ENTERPRISING TOOL Given the varied needs of manufacturers, many major ERP vendors are working on an array of options for their clients. Oracle offers a complete portfolio of business applications across all functions, and has developed solutions for the back office, supply chain, logistics and warehouse, human capital management, sales, services and marketing, and many more. Ajay Kumar, senior director, sales consulting, ERP & EPM, Oracle India, articulates this by saying, “Our approach has been to create a complete set of capabilities across business applications (SaaS), platform for development of new capabilities (PaaS) and, infrastructure for reducing the complexity of managing IT workloads in house (IaaS).”

Also, as a result of this approach, ERP solutions have moved away from only being the domain of large enterprises who could afford huge investments in hardware and software, to smaller firms who utilise it based on their limited needs and means. With this kind of concept now trending in the ERP world, the size of the enterprise using these solutions does not matter.

In fact, while the manufacturing sector enjoyed a successful 2017 with both discreet and process industries benefitting from favourable business conditions, ERP application within the sector too increased as a consequence. Vendors and service providers have developed and successfully implemented new features and technologies. Many of these were ERP-enabled data-driven automation processes that exploited the power of information and knowledge drawn therefrom to drive businesses in a more integrated fashion than achieved thus far. Investments in

“Utilisation of information technology has gone beyond the boundary of the organisational entity, and extended to receiving and sending information to the supplier and customer/ external agencies.”

– S Ravichandran

1. Modern-day ERP software is proving to be indispensable for manufacturers.

Manufacturing Today | APRIL 2018

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©iStockphotos danchooalex

SPECIAL FEATURE ERP 2

CLOUD COMPUTING IS ALREADY BEING SEEN AS A KEY ENABLER FOR MODERN-DAY ERP APPLICATIONS.

“Focus has shifted from the functionality of software (what it does) to the strategic importance (what it can be used for).”

– Thiru Vengadam

2. Tools such as digital tablets are helping organisations achieve more than ever before.

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compact hardware and value-added software were more need-based rather than as a packaged solution. This modular development helped enterprises to remain nimble, while increasing visibility and flexibility in their operations and creating competitive advantages for themselves. This has enabled quick investment payoffs with ROI improving significantly.

Explaining how ERP implementation has evolved within his company, V Venkatanarayan, VP and site head, FTO-3, Dr Reddy’s Laboratories, states that the company has gone through a long journey of implementing ERP. Today, with the help of Suryamohan Surampudi, senior director, IT, and his team, the entire organisation is running on ERP.

“We have implemented almost all modules including quality management processes, which are very critical to the pharmaceutical industry. Our suppliers are connected through a system called Supplier Relationship Management (SRM). This system has a tight integration with the back-end SAP system. Being in the pharmaceuticals industry, our doctors are our primary customers and our sales representatives use a Customer Relationship Management (CRM) system to carry out e-detailing for the doctors. This system is also connected with the SAP system.”

Delphi-TVS Diesel Systems has gone down a similar path when it comes to their use of ERP. S Ravichandran, executive VP & plant head, PlantIII, Oragadam, Delphi-TVS Diesel Systems, suggests, “Having gone in for ERP (SAP), we have successfully reached the set requirements within a short span of time, and have seen improvements planned in many areas of concern. Utilisation of information technology has gone beyond the boundary of the organisational entity, and extended to receiving and sending information to the supplier and customer/ external agencies. We have also used IT in various business process automations.”

IT’S ALL IN THE CLOUD Cloud Computing is already being seen as a key enabler for modern-day ERP applications in terms of

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globe, given that they can access, compute and analyse the data through Internet connectivity. As Kumar points out, “ERP Cloud solutions have matured rapidly in recent years. Most of the large organisations are already using some ERP in one form or other. Today, when we look at the full spectrum of ERP, we see organisations extending the core ERP to adopt Cloud-based applications to add value to distinctive business processes such as production monitoring, vehicle scheduling, maintenance management, and above all, valuable real-time insight into business that can be used for decision support.”

The concern though is that add-on software and Cloud storage are yet to be proven to be safe, when compared with on premise data storage within a controlled environment. Though this is proving to be a hiccup, most experts feel that the Cloud Comput-

SPECIAL FEATURE ERP

empowering businesses for success. This is evident with many leading ERP vendors in the global arena offering Cloud Computing-enabled versions of their ERP software. These include Oracle Cloud, SAP S4HANA, Microsoft Dynamics 365 etc.

Thiru Vengadam, regional VP, India, Epicor Software, believes, “The advent of modern technologies such as the Internet, mobile, wireless, and indeed the consumerisation of IT have all changed enterprises’ expectations of what can be achieved.

Focus has shifted from the functionality of software (what it does) to the strategic importance (what it can be used for). Modern ERP systems support companies that want to build a competitive advantage by providing the right people with access to the right information at the right time, so that they can make the best decisions to support growth.”

Pointing out the benefits of Cloud Computing, Vengadam proclaims, “The benefits that a Cloudbased ERP solution provides are quite compelling, particularly when the unique challenges of many small and lower mid-market manufacturers are well understood. They are quick to master and easy to use. There are no hardware and software upgradation costs. Most importantly, no large cash outlay is needed, and affordable subscription pricing is offered instead.”

It is easy to see then that Cloud Computing is a great enabler, even when it comes to empowering a person/company situated in a remote part of the

“We have implemented almost all modules including quality management processes, which are very critical to the pharmaceutical industry.”

– V Venkatanarayan

3. A Dr Reddy's factory worker uses a 2D bar code scanner (semifinished goods).

4

4. Use of digitised ERP in clean-room manufacturing at Dr Reddy's.

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Manufacturing Today | APRIL 2018

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SPECIAL FEATURE ERP 5

OVERALL, TRADITIONAL ERPS ARE MAKING WAY FOR INTELLIGENT ERPS.

“Our approach has been to create a complete set of capabilities across business applications (SaaS), platform for development of new capabilities (PaaS) and, infrastructure for reducing the complexity of managing IT workloads in house (IaaS).”

– Ajay Kumar

5. ERP systems have varied uses, making them adaptable to a company's diverse needs.

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ing capability in ERP systems will be a sought-after trend from 2018, going forward. To address this, Kumar adds, “Very few organisations understand that professional levels of security provided by the Cloud service providers, along with rapid advancement in business IT capabilities, can enable a higher degree of data security, with greater business benefits than they could implement otherwise.”

TRENDING TECHNOLOGY Overall, traditional ERPs are making way for intelligent ERPs. An intelligent ERP is designed to provide futuristic capabilities like IoT, Artificial Intelligence (AI), the ability to communicate with machines and learning from the same, and supported by analytical tools to create intelligence out of data and information.

Vengadam explains, “One of the key opportunities for ERP solutions is to become far more responsive and useful to its customers alongside the development of the Internet of Things (IoT). In the near future,

every aspect of a manufacturing and engineering company’s business is set to be revolutionised with IoT technology. Machines are becoming increasingly connected, as are transportation and logistics networks, as well as sales channels. As people, processes and businesses become more connected, the need to speed up data collection, interpretation and dissemination grows.”

Arising from these capabilities, one trend noticed is that global majors of ERP are facing stiff competition from the providers of SaaS applications such as ERP. This means that the price advantage to their customers is a welcome trend. Another trend that is now gaining ground is that ERP solutions are becoming more mobile. Today, with the world going mobile with smartphones and tablets, certain information needs to be available on mobile platforms for enterprise executives, particularly sales team members, while they are on the move. These technologies are now being made available in ERP applications, which would go increasingly mobile, over time.

With so much now possible with regard to ERP systems, the maxim ‘one size does not fit all’ is gaining recognition. Organisations are looking to implement ERP packages at their headquarters or major locations, while working with SaaS applications elsewhere. With no barriers on system and platform compatibility, such varied applications can now work well together in a single enterprise. This scenario of a hybrid ERP is an interesting change that will result in a paradigm shift in how businesses are run. And given the robustness of new-age ERP systems, this can only be a good thing.

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FOCUS RS INDIA 1

PRECISE PLANS

INDIA’S RUJ GROUP INAUGURATES SWISS PRECISION & ASSEMBLY PLANT IN JV WITH SWITZERLAND-BASED SRM TECHNOLOGIES AG.

1. The inauguration ceremony in progress.

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THE INDIAN MECHANICAL ENGINEERING industry strives to apply cutting-edge technology, produce high-quality products up to international standards, and further participate in the global value chain.

To make this initiative more meaningful and impactful, Switzerland-based scientist Dr Rajendra Joshi, and his wife Ursula Joshi (RUJ Group), have set-up India’s first-of-its-kind Swiss precision & assembly unit in Jaipur, Rajasthan, in a joint venture with a Switzerlandbased company, SRM Technologies AG. RUJ & SRM Mechanics (RS India) is the JV between Rajendra and Ursula Joshi Skill Development and Swiss company SRM Technologies AG. The mission of RS India is to provide the best solutions to the manufacturing industry for their need of highprecision metal parts with value-addition of metal anodising, painting and heat treatment etc. It aims to offer manufacturing solutions to sectors like health and medical, automotive, polymechanical, machine automation, laboratory technology, photo technology and aerospace, etc., where high-precision parts play a crucial role for the end products.

Dr Rajendra Joshi, chairman, RUJ Group, said, “Various sectors in India witness a great demand of precision parts, and despite the relatively high num-

ber of precision parts manufacturers, the sector is challenged by import reliance. Investment in manufacturing of precision parts is essential to further develop and expand prime sectors of the economy, including the automotive, healthcare, logistics and

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electronics industries. Seeing the opportunity in India, we are offering Swiss precision & assembly solutions with a world-class plant equipped with international machineries and technology, in India.”

This newly inaugurated Swiss precision and assembly plant will be initially furnishing orders received from SRM Technologies, as their Switzerland facility is operating at its optimum production capacity and has two years’ worth of orders pending in advance.

Many globally acclaimed companies like Siemens, Roche, Schneider Electric, Sika, Leica, Audi, and Metalaire are regular clients of SRM Technologies in Switzerland. Now in India, with the same excellence, the newly constructed plant will also be manufacturing precision parts for the same companies and ex-

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FOCUS RS INDIA

porting as per the orders.

Switzerland-based Peter Strebel, CEO, SRM Technologies AG, said, “The competition among developing countries is becoming fiercer, and Indian producers are disadvantaged by recent economic gains that have driven up the price level and reduced the competitiveness of Indian as well as Swiss products.

In order to sustain their lead, Indian manufacturers are increasingly emphasising the importance of efficient and effective production in compliance with international standards. Acknowledging these challenges, producers in all industrial sectors are continuously striving to improve and upgrade production processes. We, now being in India, will be helping to overcome these challenges by using SRM’s legacy of producing excellence at RS India.”

At RS India, the manufacturing processes and techniques such as milling, turning, Swiss -style lathe and turning, surface grinding, cylindrical grinding, punching, laser cutting, heat treating, anodising, planting, powder coating, direct material laser sintering (DMLS), injection moulding etc. processes are available with the technologically advanced machineries imported from Austria, Switzerland, Germany and Japan. These machines are equipped with programmable visual systems that complement and enhance process control capabilities. These systems help reduce inspection time, eliminate human error, and generate statistical data in real-time to keep a check, allowing constant quality monitoring.

Jayant Joshi, MD, RS India, said, “RS India is a highly technical and zero-error precision parts manufacturing unit. We are very proud to have such a plant in India, that too in Jaipur. I feel very lucky to have the opportunity to lead this company. I would like the company to enjoy good prospects and earn a good name for India in other countries.”

Sanjay Srivastav, business head, Mahindra World City, Jaipur, said, “We congratulate RUJ and SRM Mechanics on the inauguration of their plant based at Mahindra World City, Jaipur. I am delighted to see the manifestation of MWC Jaipur’s value proposition through an integrated manufacturing and skills development ecosystem. Our best wishes to the complete team on their continued success.”

With an investment of over Rs 300 crore, this state-of-the-art Swiss precision and assembly plant has high-quality advanced machineries. Machines are capable of unattended production time of up to 24 hours daily. In Jaipur, the highly advanced machineries are imported from Japan and Switzerland, and the production capacity of the RS India plant is 5,650 MT per annum, generating employment for 250 workers. The company intends to export a major portion of its production, and to explore the domestic market to utilise its full production capacity.

2. RUJ & SRM Mechanics (RS India) is the JV between Rajendra and Ursula Joshi Skill Development and Swiss company SRM Technologies AG.

Manufacturing Today | APRIL 2018

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SPECIAL FEATURE STEEL INDUSTRY

RATINGS AGENCY ICRA HAS SAID THAT IN the first nine months of FY 2018, steel demand has grown by 5.2%. With so many infrastructure projects in the pipeline all across the country and steady demand from the automotive industry, demand for steel is certainly looking up. So, what is in store for the Indian steel industry?

India is within striking distance of dislodging Japan as the second largest producer of steel. The gap came down to 3.3 million tonnes (MT) in 2017; Japan produced 104.7 MT of steel last year compared to India’s 101.4 MT. Significantly, while India’s output grew 6.2% in 2017, Japan’s fell marginally by 0.1% in the year. India is therefore on its way to emerging as the second largest steel producer globally, next year.

Steel demand in India has witnessed steady growth over the last decade. The per capita consumption of steel has risen to 70 kgs as against 52 kgs a decade ago. But this is expected to change over the next few years with the growth in the Indian economy, which currently is at over 7%.

“India has become a net exporter last year. Many countries have anti-dumped Chinese steel and these markets have opened up for Indian exports. Many of the steel consuming sectors like automobiles, infrastructure and engineering have witnessed rebound in demand in India. The current budget lays emphasis on infrastructure and construction, which is a demand booster for the steel industry. It is reasonable to expect a growth of 10-15% in these sectors.

Since no new greenfield steel capacities have been announced, the existing steel plants have to meet the emerging demand,” says Vikram Amin, executive director – sales & marketing, Essar Steel.

“India has become a net exporter last year.

Many countries have anti-dumped Chinese steel and these markets have opened up for Indian exports.”

– Vikram Amin

1. India’s steel demand growth has improved by 5.2% year-on-year to 72.51 MT in the April-January period of FY201718.

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NUMBER CRUNCHING The high growth continues unabated in 2018. In fact, India’s steel demand growth has improved by 5.2% year-on-year to 72.51 MT in the April-January period of FY2017-18. “Sustained buoyancy in the auto sector, recovery in construction and capital goods have led to the pick-up in domestic steel demand. Going forward, it is expected that domestic consumption growth will remain favourable on the back of the Government’s thrust on infrastructure, in particular affordable housing, power transmission and the railways, in the Union Budget 2018-19,” says Vinaya Varma, CEO, mjunction.

A combination of favourable domestic demand, remunerative prices in both international and domestic markets, and lower growth in imports are likely to support domestic steel production growth in the near term. Consolidation in the sector as part of the insolvency resolution of stressed steel assets is tipped to favour production growth in the steel sector. A turnaround in these stressed assets along with new

1

capacities ramp-up could more or less meet the incremental demand, assuming import-exports levels remain steady. Nevertheless, increasing global trade protectionism could pose risk to exports and put some pressure on the domestic capacity utilisation.

DEMAND DRIVERS Ashim Sharma, partner & group head – business performance improvement (auto, engineering & logistics), NRI (Nomura Research Institute) Consulting & Solutions, says, “From an automotive per-

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WITH STEADY DEMAND FROM THE AUTOMOTIVE INDUSTRY AND MANY INFRASTRUCTURE PROJECTS IN THE PIPELINE, THINGS ARE LOOKING UP FOR THE STEEL INDUSTRY.

BY BINDU GOPAL RAO

spective, demand drivers include tool steel, a variety of steel still largely imported and the demand for which will increase in India on the back of the forces of increasing market volumes, shortening product life cycles and increasing variety of vehicle models on offer. The other segment is steel used in Body in White (BIW) parts, e.g. high-strength low-alloy steel, which is also imported and the demand for which will rise with increasing emission and safety regulations.”

India’s per capita steel consumption is much lower than the global average. According to a report pub-

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SPECIAL FEATURE STEEL INDUSTRY

ADVANTAGE STEEL

lished by the Ministry of Steel, per capita consumption of steel in India is 61 kgs, while per capita consumption of steel in rural India is only 10 kgs. These numbers are much lower than the global average which is 208 kgs/person. If India manages to sustain a growth rate of 7% or more, it is expected that demand for steel would grow significantly.

“The major demand for steel is likely to come from growth in construction, roads and railways, infrastructure and automobile sectors. As it seems that the policy makers are shifting their focus on the rural sector,

Manufacturing Today | APRIL 2018

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SPECIAL FEATURE STEEL INDUSTRY

the pent-up demand in this sector can drive demand for steel in the short- to medium-run. Also, growth of real estate and demand for automobiles from the rural, semi-urban and urban sectors can be growth drivers for the steel sector,” says Professor Parthapratim Pal, Indian Institute of Management, Kolkata.

“From an automotive perspective, demand drivers include tool steel, a variety of steel still largely imported and the demand for which will increase in India.”

– Ashim Sharma

2. In the recent past, the Indian steel industry has faced a number of threats from increased imports from countries like China.

GOVERNMENT IMPETUS In the recent past, the Indian steel industry has faced a number of threats from increased imports from countries like China. The government introduced certain trade measures like the Minimum Import Price (MIP) and anti-dumping duties to protect domestic producers of steel. The MIP was subsequently withdrawn, but due to these policies, along with certain external factors, the Indian domestic steel industry has bounced back.

“The external factors which helped the steel industry include cutting back of steel production by China and some recovery in international steel prices since the middle of 2017. It is expected that after its trouble in 2016-17, the domestic steel industry is now on a firmer footing. It is also expected that increase in domestic demand for steel will remain high in the years to come,” says Pal. TECH TALK Naturally, companies in the industry are all set to bite into the pie. For instance, mjunction is using an

optimum mix of technology along with its marketing strength to tap this potential. “With a pan India presence helping it to reach out to the end users faster, experienced category managers, and a deep understanding of the offered products, mjunction has uniquely positioned itself as an e-marketplace for selling various steel products. Further, mjunction is using the latest machine learning tools that help in analysing the latest price trends and predicting the customer behavior,” says Varma.

As the steel industry is poised for growth, companies are looking to infuse technology-based solutions to create a multiplier effect. “As the largest marketplace, we are investing in digital solutions to integrate various channels to achieve greater scale.

Not only will this open new digitalisation opportunities, but also ensure greater throughput as volumes go up. To contain costs, we are applying Artificial Intelligence and Robotic Process Automation (RPA) led solutions. All our platforms and applications are constantly being engineered for the seamless experience of our buyers and sellers,” says Varma.

Essar Steel has deployed the latest technology in all its operations which are environment-friendly, efficient and produce better quality products. The recycling of by-products is a step towards conserving the environment and optimising costs. Amin explains, “We pride ourselves in developing newer grades of steel to meet the specific requirements of

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SPECIAL FEATURE STEEL INDUSTRY 3

our customers. We have been constantly developing new grades and are capable of producing over 300 grades for every conceivable end-use. This has insulated us to a large extent from market vagaries.

Further, our entire production is presold and hence we do not carry any inventory of finished goods.

We have also pioneered in organised steel retailing domestically to address the needs of the SME segment, which has witnessed robust demand on a continual basis. Our target for the next fiscal is to achieve a production of 8 million tonnes. Our special grades of steel branded as Rockstar & Borostar have been well accepted and have become recognised international brands.”

THE PRICE FACTOR However, the export markets will remain subdued in the short-run. Many countries in the world are increasingly protecting their steel sectors. For example, the USA has announced increased tariff on imports of steel products. It is expected that other countries may follow suit and will protect their own steel sectors.

“The dynamics of this possible retaliation is not yet clear but there is a strong possibility that there would be growing uncertainty about export markets in the short-term. While this possible shrinking of market access in other countries may hurt India’s domestic producers, this global protectionist bandwagon may also allow India to accord higher level of protection to its domestic producers. As India has a large and growing economy, overall, this trade off may benefit Indian steel producers,” says Pal. A protectionist regime in steel can raise domestic prices of steel, which can increase the cost of production of a large number of products which use steel as an intermediate good. This may lead to a

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cascading effect on prices and negatively affect the competitiveness of producers of these final goods (such as cars). It will also negatively affect the consumers of these goods.

Recently US President Trump has announced that he would direct the US Government to impose global tariffs of 25% on all imported steel. The Department of Commerce had recommended the President to implement a tariff of 24% on steel imports from all countries, with tariffs of at least 53% on imports from 12 countries including India. These countries also would have a quota that would prevent them from exporting more steel to the United States than they did last year. However, this decision again will not impact Indian steel production much as India’s share in the US steel imports is only at around 2.4%.

“The global steel industry will continue to face challenges in the coming years, however, India will be in a comparatively better position. As both China and Europe continue to face excess capacity, hence, Indian producers may face some challenge in finding a ready alternate market for exports. However, with China focusing on supply-side reforms, India is expected to continue on the growth trajectory,” avers Verma.

While India may be catching up with Japan on steel production, India is still trying to diversify further from coking coal dependency on Australia. Japan has far higher blast furnace rates and broader sources of met coals by country and grade, with these coals taking higher market shares than in India. Though there has been major competition in the global market, the line-up of massive infrastructure projects itself poses a huge opportunity for the domestic steel sector. Owing to the huge pipeline of infrastructure, railways and real estate, order inflows are expected to remain strong.

“We are investing in digital solutions to integrate various channels to achieve greater scale.”

– Vinaya Varma

3. Export markets may remain subdued in the short-run, as many countries in the world are increasingly protecting their steel sectors.

Manufacturing Today | APRIL 2018

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R&D IN MANUFACTURING

BRAIN GAIN R&D IS THE PILLAR ON WHICH MANUFACTURING STANDS. A COMPANY WITH A STRONG FOCUS ON R&D AND INNOVATIVE PRODUCTS WILL FACE A LOWER ATTRITION RATE.

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BY JAYASHREE MENDES

1. Spending on building R&D centres is a really useful thing to do.

EVERYONE TALKS ABOUT MANUFACTURING innovations and novelty. Companies want new products to be introduced regularly in the market. They want flexibility in manufacturing and this is something that has never been as important as it is today. Moreover, with customers demanding new and advanced products, manufacturing companies are compelled to go back to the drawing board and come up with innovations. And innovations come from a strong research & development.

APRIL 2018 | Manufacturing Today

Ideally, a diligent company will invest about 3-5% of its turnover on R&D and design. Those who do so and come up with remarkable products will be at an advantage. The ability to design, develop, manufacture and support bespoke products puts companies in a different league altogether. It is always better that companies have their own R&D wing so that in the long run it gives a price competitive advantage.

Raghav Gulur, MD, ZF India Technology Centre (ITC), says, “We have strong technical expertise

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R&D IN MANUFACTURING and depth in developing and producing systems and components for passenger cars and commercial vehicles. R&D is fundamental to us. As one of the largest automotive suppliers worldwide, we invest about 6% of sales turnover in R&D, thus ensuring continued success through the design and engineering of innovative technologies. The ZF India Technology Centre (ITC) inaugurated last year focuses 80% on software and 20% on mechanical engineering activities and plays a pivotal role in the development

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of vehicle technology. ZF India’s R&D team will soon advance to a position where they will support the R&D teams across the globe to jointly develop futuristic technologies that will define the automotive landscape of tomorrow.�

Developing an in-house R&D capability allows companies to adapt its product range. This means when a customer gives manufacturers their product specifications, it's likely that they may already have a close fit. Expanding the product range isn't the only

Manufacturing Today | APRIL 2018

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R&D IN MANUFACTURING 2

2. Any company worth its salt with also seek tie-ups with academia and foreign companies to bring out the best products.

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APRIL 2018 | Manufacturing Today

positive outcome of having an onsite R&D facility.

Jean-Baptiste Milleret, product development head, IMEA, packaging & consumer goods, Henkel Adhesive Technologies, says, “Henkel’s vision statement, ‘leading with our innovations, brands and technologies,’ indicates the importance innovation holds for us. The responsibility that we feel towards our customers and consumers, our people and society, has shaped the history of our company. In conducting our business, we want to create sustainable value through innovative solutions.”

Henkel’s Adhesive Technologies business in India has a Product Development Centre that is housed in its Thane manufacturing site and caters to the innovation needs of its packaging & consumer products SBU, while our Innovation Centre at Pune caters to the general industry and transport & metal SBUs. At present, it has a core team of 50 engineers and scientists at the Innovation Centre and a sizeable team

at the Product Development Centre. At both the locations, various teams work on myriad chemistries/ technologies, developing products and innovations for local, regional and global customers.

Bold and subtle There the three advantages that manufacturing companies need to be aware of when considering R&D: a) Those companies who have been investing regularly in R&D and coming up with innovations are bound to be noticed by global companies and by firms internationally. b) Manufacturing firms should be aware of where they want to take their firm. The most innovative firms are always trying to build competitive advantage and not reluctant to invest more into R&D knowing that it can have a long gestation period. c) It helps to remember that behind the scenes there is a solid relationship between those who spend

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R&D IN MANUFACTURING 3

on R&D and the way the company performs.

Continued successes of small innovations add to the larger picture.

Kalyan Sridhar, country manager, PTC, says, “Since 1985, PTC has been enabling customers to stay one step ahead of the competition by combining strategic vision with leading, field proven technology, helping companies to achieve their business goals. In 1988, we developed parametric, associative feature-based, solid computer-aided design (CAD) modeling software. As technology evolved over the next decade, in 1998, we developed an Internet-based product for product lifecycle management (PLM). Our solutions enabled manufacturers to design, operate and maintain complex products.”

He adds that in the last two decades, PTC has noted a tremendous acceleration in development and implementation of new digital technologies such as Augmented Reality and IoT on a global scale.

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Customers are open to implementing newer solutions to achieve their business goals at a much faster rate. “At PTC, we identified an opportunity in India to implement PTC’s strategy as a leading provider of technologies and solutions that blend the digital and physical worlds. PTC leverages two transformational technology trends – IoT and AR – that allows us to deliver a new class of products to our customers in India,” he says.

CV Raman, head of engineering, Maruti Suzuki, says, “While vehicle design, development and testing require the most sophisticated equipment, more important is to develop capability of engineers over time to optimally utilise these facilities to ensure customer satisfaction. Over the last decade, Maruti Suzuki has systematically trained and developed engineers for R&D by giving them exposure to new model development as well as doing special projects along with the more experienced engineers at SMC Japan on design and technology. Nearly 35% of R&D engineers in Maruti Suzuki (MSIL) have already been trained at Suzuki, Japan, for up to two years, and built the competence to create attractive vehicles with advanced features and high quality and safety.”

MSIL R&D’s first success was the facelift of the iconic vehicle, Zen, in 2003, followed by co-design of Swift with the Suzuki global R&D team in 2005 and a working on the full body change of Alto in 2012.

Competence of the team grew steadily as more models and technologies were introduced, leading up to the compact SUV, Vitara Brezza in 2016. The world-class testing facilities at Rohtak and the capability of Maruti Suzuki engineers have now converged. Working in close partnership with the R&D

"As one of the largest automotive suppliers worldwide, we invest about 6% of sales turnover in R&D." – Raghav Gulur

3. Elgi Equipments launched Air Alert, a SIM-card based communication device that will monitor and transmit key compressor metrics.

Manufacturing Today | APRIL 2018

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R&D IN MANUFACTURING 4

team in Suzuki, Japan, MSIL will be able to test and evaluate vehicles at this R&D centre.

Fast and furious

“The responsibility that we feel towards our customers and consumers, our people and society, has shaped the history of our company.”

– Jean-Baptiste Milleret 4. Maruti Suzuki has been coming up with innovative ways to test vehicles.

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APRIL 2018 | Manufacturing Today

Those who don’t want to go to lengths of investing in an R&D centre are likely to outsource. Many of them even tie up with academic institutions for procuring know-how. For instance, Elgi Equipments has established relationships with a number of academic and research institutions to enhance Elgi’s technological capabilities. For example, it has a project based partnership with a local engineering university, whose faculty and students partner with them on improving specific areas of compressor design. “We have an active project to improve the quality of our compressor housing. From a training perspective, we sponsor our strongest engineers for a graduate programme in technology to enhance their engineering and design skills. Our manufacturing philosophy is based on vertical integration for quality. Our captive foundry allows for high levels of quality control in our castings, while our in-house designed compressor machining centres allows us to produce our proprietary compressor rotors with low tolerances.

These two initiatives provide high levels of flexibility in improving existing products and producing new products while giving us a cost advantage,” says Anvar Jay Varadaraj, head, marketing & corporate communication, Elgi Equipments.

In terms of technologies, it recently launched Air Alert, a SIM-card based communication device that will monitor and transmit key compressor metrics such as temperature, flow, pressure, and power consumption to Elgi. The device will also provide maintenance alerts. The device offers peace of mind to customers that their machines are constantly monitored, thereby mitigating failures and ensuring that

maintenance schedules are adhered to.

In 2017, ZF ITC launched the ZF Innovation Challenge exclusively for engineering students in Andhra Pradesh and Telangana. This was an opportunity for the institution to showcase their student's proficiency in current technology topics and compete with peer institutions. It helped in gaining major mindshare from industry partners for strategic alliances with the institute and job opportunities for students. The event got an overwhelming response with over 1,000 students participating in the challenge. “We received a range a projects in the field of autonomous driving, connectivity, drones, IoT, digital transformation, and disruptive technologies. Post this, we received a number of requests for further collaboration opportunities with reputed engineering institutes and are now seeking to forge a stronger industry-academia relationship,” says Gulur.

ZF has been an innovator in introducing disruptive technologies in the mobility field. It was the pioneer in bringing Electric Park Brake (EPB) technology to the world. It was the first to market globally its EPB system in 2001, which pioneered in Lancia, Audi, VW and more recently on the BMW X4 and BMW i8, Jeep Renagade, Fiat 500X, Ford 150, Honda Accord, Nissan Qashqai, Range Rover Evoque and more.

In developing products, Maruti Suzuki R&D focuses on the pillars of design, technology, comfort & convenience and infotainment, along with advanced safety. This may require fitting additional equipment, which increases vehicle weight and impacts fuel efficiency, emission and performance. To meet advanced regulations in safety as well as emissions without compromising performance, an overall optimisation of vehicle design and systems is essential.

The global R&D team at Suzuki, Japan and MSIL has developed a new 5th generation vehicle platform that is designed to provide advanced safety to occupants, without compromising on fuel efficiency, emission or performance. Called Total Effective Control Technology (TECT), this breakthrough innovation ensures that the vehicle is safer, stronger, 10% more rigid while being 15% lighter.

At Henkel, some of its disruptive technologies indigenously developed either include Loctite PC 7000, a high temperature abrasion resistant coating, used for protecting components against abrasion up to 1100°C. It not only extends the life coal tip burner by up to two times but is also cost effective. Then there is water based chloroprene rubber adhesive for the sports and fashion industry that was developed to replace solvent based products with an aim to offer health and safety benefits to the applicators and customers.

That is how R&D helps. It leads to superior innovations that reach markets faster, and ensures things are done in time and in the right manner.

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Key to the world of

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Published on 5th of every month. Posting date: 7th & 8th of every month. Posted at Patrika Channel Sorting Office, Mumbai-400001.

TOTAL PAGES 66 VOLUME 7 | ISSUE 12| DECEMBER 2017 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959.

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TOTAL PAGES 74 VOLUME 7 | ISSUE 8 | AUGUST 2017 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959.

WPP license no. MR/TECH/WPP-74/North/2017. License to post without prepayment. Postal Registration No. MCN/154/2017-2019.

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TOTAL PAGES 62 VOLUME 7 | ISSUE 11| NOVEMBER 2017 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959.

CUTTING TOOLS THE RIGHT CUT

EVENT REPORT AUTOMATION FAIR 2017, HOUSTON Published by ITP Media (India)

WPP license no. MR/TECH/WPP-74/North/2017. License to post without prepayment. Postal Registration No. MCN/154/2017-2019.

Published on 5th of every month. Posting date: 7th & 8th of every month. Posted at Patrika Channel Sorting Office, Mumbai-400001.

TOTAL PAGES 66 VOLUME 7 | ISSUE 9 | SEPTEMBER 2017 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959.

WELL CONNECTED

FEATURE: GST GET, SET, TRANSFORM!

EVENT REPORT SMART MANUFACTURING SUMMIT 2017

DR. ANDREAS WOLF, JOINT MD, BOSCH INDIA, HAS DISCERNED THE INTRICACIES

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SMART MANUFACTURING Published on 5th of every month. Posting date: 7th & 8th of every month. Posted at Patrika Channel Sorting Office, Mumbai-400001. OF INDUSTRY 4.0, TOTAL PAGES 78 | ISSUE 10 | OCTOBER AND 7CONNECTED FACTORIES VOLUME 2017 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959.

WPP license no. MR/TECH/WPP-74/North/2018 License to post without prepayment Postal Registration No. MCN/154/2017-2019 Published on 5th of every month. Posting date: 7th & 8th of every months Posted at Patrika Channel Sorting Office, Mumbai-400001 TOTAL PAGES 62 VOLUME 8 | ISSUE 1| JANUARY 2018 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959

Published by ITP Media (India)

A TASTE FOR

IMTEX FORMING 2018 IN TOP FORM

AUTOMATION DECODING DRIVERS

EVENT REPORT: BFW PRESENTS MANUFACTURING DAY

SUCCESS

AEROSPACE OPEN SKIES

DEFENCE MANUFACTURING OPPORTUNITIES STRIKE

SAUGATA GUPTA, MD & CEO, AND JITENDRA MAHAJAN, CHIEF SUPPLY CHAIN OFFICER, MARICO LTD, ARE USING INNOVATIONS AND ACQUISITIONS TO STEADILY CLIMB UP THE FAST-MOVING CONSUMER GOODS FOOD CHAIN.

Published by ITP Media (India)

Published by ITP Media (India)

Published by ITP Media (India)

SHIFTING GEARS WITH YOICHIRO UENO, PRESIDENT & CEO, HONDA CARS INDIA, FIRMLY BEHIND THE WHEEL, THE COMPANY IS NARROWING THE GAP WITH COMPETITION

A ZEAL FOR DEALS

RANGE-FINDER

VC SEHGAL, CHAIRMAN, MOTHERSON SUMI SYSTEMS, HAS CRAFTED AN EMPIRE SOLELY THROUGH GLOBAL STRATEGIC ACQUISITIONS AND JOINT VENTURES

WELL ESTABLISHED IN R&D, MV GOWTAMA, CMD, BHARAT ELECTRONICS LTD, IS EYEING EXPORTS & OFFSETS AS ONE OF THE THRUST AREAS FOR SUSTENANCE AND GROWTH Published by ITP Media (India)

L-R: Vir Advani, MD, Blue Star, and Shishir Joshipura, MD and country head, SKF India.

LEAGUES AHEAD AWARDS SPECIAL

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EVENT REPORT KONECRANES SAFETY WEEK

IT'S A KNOCKOUT

KONECRANES' SAFETY WEEK COMPETITION SAW PARTICIPATION FROM ELITE MANUFACTURING COMPANIES AND HAD SOME INSPIRING PRESENTATIONS.

BY JAYASHREE KINI MENDES

1

1.The participants from 14 companies along with the organisers gather for a group picture.

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APRIL 2018 | Manufacturing Today

SAFETY IS AN INSTINCT. WHILE IT CAN BE imposed at manufacturing plants, it is a measure that should come from within. No one likes losing a limb or their life. While accidents can happen anywhere and anytime, plants are highly prone because of the innumerable machines (of various kinds) and components lying around.

Adhering to the National Safety Week that India celebrates every year from March 4-10, Konecranes, who staunchly supports this initiative, along with Manufacturing Today, invited companies to compete. They were to make a presentation on some of their best safety practices followed at the plant.

Konecranes celebrated Industrial Safety Week from March 6-8 and over three days organised several events that it took nationwide.

Fourteen companies travelled from across the country to make presentations on the safety practices they have implemented at their plants. The day-long event was held at the Konecranes office in Jejuri, an hour-and-a-half away from Pune city. Each participating team was given a 15-minute slot to explain the initiatives they have taken. The Jury was asked to rank them on a score of 1-10 for the content, presentation and the level of safety measures implemented.

Welcoming the participants, Ravin Wadhawan, senior director, industrial service, South Asia, Konecranes, said, "As an organisation we are trying to build a culture around safety. It's not only around manufacturing and service safety, but also as a corporate responsibility. We are also involving our sup-

2

pliers, contractors and customers in this crusade.

Since we are in the business of lifting, our safety standards are very high. Safety Week helps us to relate with the industry and this competition helps each one of us learn from one another."

S Saikumar, MD, ITP Media (India) introduced the Jury and explained the rules of the competition to the participants. The Jury for the competition comprised Rajesh Nath, MD, VDMA; Pradip Chaudhari, consultant, automotive industry; and Karam Rehani, independent automation consultant, KVR Consultants.

TOUGH MEASURES The first presentation was by the AkzoNobel team.

They spoke about the culture and mindset change needed within the organisation to ensure safety.

They began with educating the shop floor employees on freak accidents and kept communication open with employees on how they could adhere to the existing rules.

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EVENT REPORT KONECRANES SAFETY WEEK

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5

6

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The team from Bajaj Auto believes that ensuring safety helps reduce unnecessary cost and maximise output. The company conducts a safety patrol and audit and has incorporated safety rules for shop floor, electric, inter-plant, etc. Experts from each plant travel to other plants to educate employees.

Besides this, it has deployed safety scanning for unmanned areas.

Speaking about the three values of integrity, safety and quality, the JBM Group team elucidated how the sheet metal they work with can be hazardous.

Considering it has four manual press shops, it needs to go that extra mile to ensure safety. Constant training is integral to that.

The Tata Motors team expounded on the large number of vehicles that move within and outside the plant and how employees are taught safety measures in terms of signals and honking. It has identified several areas of focus where safety measures can be altered such engineering, components pick-

2. Ravin Wadhawan welcomed the teams.

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3. The team from AkzoNobel.

4. A view of the audience.

5. The Jury made notes and gave points for every presentation.

6. The team of Bajaj Auto.

7. JBM Group explained their process.

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8. The team from Tata Motors.

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EVENT REPORT KONECRANES SAFETY WEEK

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9. VThe team from V-Guard.

10. Forbes Marshall Pune team.

11. Hyundai Motor India came in from Chennai.

12. The team from HCCB arrived from Bangalore.

13. The team from VECV Pithampur.

14. Mahindra & Mahindra travelled from Mumbai.

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APRIL 2018 | Manufacturing Today

ing, etc.

Speaking about V-Guard's policy, the team explained the four types of safety measures such as environment, product, equipment and employee.

The management has issued a diktat that no employee is to violate any of the rules.

The lone ranger from Hyundai Motor India explained the positive safety culture development. Zero deviation, zero incidents and 100% safety is the motto. Safety ambassadors monitor the assembly line and test employees' fire safety knowledge.

The team from Forbes Marshall stressed that their quest is towards zero incidents. Safety sustainable culture is what it has executed. It has achieved three million safe hours and wants to continue with that before arriving at new rules.

The team from Hindustan Coca-Cola Beverages explained how safety percolates from the top man-

agement and why every visitor to the factory is first instructed on the safety factors. It ensures that every employee is practicing the safety norms, whether at the factory, or on the road, or at home. Factories are made safe through automation and little human interaction especially where components are concerned.

Anand Automotive Group was represented by Gabriel India who explained the fish-bone diagram that includes lack of machine knowledge and safety features on machines, lack of adequate training and no proper system for skill upgradation, lack of safety among front-line managers, etc. It has evolved a Skill Book for a safe working environment for operator engineers on the shop floor with a unique transparent performance system. The skill book is essential.

Points are earned for following all the parameters of the Skill Book.

VECV came up next and detailed its safety vision for the plant. The world class manufacturing system it has adopted has the seven-step method that involves drill bit breakage/drill machine slip/flying chips. The company does a root cause analysis for any injuries that take place at the plant.

Mahindra & Mahindra team explained how the foundry team works. The company analysed report-

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EVENT REPORT KONECRANES SAFETY WEEK

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able and non-reportable injuries and took up the challenge of addressing both. A three-year forecast is planned and TPM helps. Reactive, Proactive and Building safety culture are the three pillars on which safety standards stand.

The next presentation was by Henkel Adhesives who spoke about how they sustain and improve their own track record. Education and SHE e-learning was the primary base on which it spoke. Morning meetings start with a safety talk. The measures have helped in increasing productivity.

Honda Cars India explained how accidents can be caused at plants considering the number of trolleys and forklifts that move around the plant. The company is concerned that shop floor employees are casual about following safety norms. While the

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assembly line is more safer, it is the movement of vehicles that causes more accidents.

The last presentation was by Volkswagen India who explained about the large number of accidents that would happen once upon a time in the plant.

There were challenges to be addressed. This was mainly due to unsafe behaviours among the employees. The company trained employees to identify the hazards and take proactive steps. Some of the hazards were fall from height, electrical shock, confined spaces, falling objects, eye injuries, and cut & pinching.

All participants were given a certificate thanking them for their willingness to travel all the way from across the country.

It was time to felicitate the Jury and give them time to speak their thoughts. They thanked the participants and said that there are too many learnings in what they heard. Making a choice for winner and runner-up was a tough choice.

Finally, it was time to announce the winner. The chits were opened and the Jury gave the runner-up prize of Rs 25,000 and a plaque to the team from Gabriel India. The winner for the day was the team from Mahindra & Mahindra who took home the prize of Rs 75,000 and a plaque.

Saikumar thanked everyone and requested all the participants to gather for a group picture in the lawns outside.

15. Henkel Adhesives was the only local team from Jejuri.

16. Gabriel team emerged runner-up.

17. HCIL was given a round of applause for dealing with some tough questions from the audience.

18. The lone ranger from Volkswagen made a good presentation.

19. Mahindra & Mahindra is all smiles when they were declared winner.

20. Gabriel India took home the runner-up trophy.

Manufacturing Today | APRIL 2018

61

INTERVIEW KONECRANES

SAFETY FIRST SUHAS BAXI, MD, SOUTH ASIA, KONECRANES, IS WORKING TIRELESSLY TO ENSURE THAT NOT ONLY HIS COMPANY EMPLOYEES, BUT ALSO OTHERS, ARE MAKING SAFETY AT THE WORKPLACE A PRIORITY. What does Safety Week personally mean to you?

I think there needs to be realisation of what your company stands for, and, hence, what you stand for. For me, personally, this organisation’s values, and one of the big values, is safety at the workplace, safety of our employees, safety of our people who operate our equipment not only at the workplace but also beyond their workplace.

As a leader, not only do I consider this as a value, but I also believe in it as an inbuilt value. We have been propagating safety within the company for a long period of time. We think, however, that we will truly be able to propagate the culture if we take this even outside the factory premises and it is the reason why for the last two years we have been making Safety Week an event. Health and safety is imbibed.

What are some of the safety measure you have undertaken at your own plant?

It is essentially creating a system and ensuring that accidents do not happen. An accident is a manifestation of a lot of things that should have been taken care of so as to avoid such a situation. If one does the math, an accident triggers loss-time injury and this by definition means where an employee takes a day off from work because he/ she was injured at

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FEBRUARY 2018 | Manufacturing Today

work. That’s a loss-time injury but before this injury could happen there would be have been a certain number of first-aid injuries. So our goal is to ensure that unsafe condition do not exist at the workplace.

This requires people who are alert and observant, and that is our focus.

What are some of the points that companies neglect on the shop floor in regards to safety?

Companies neglect is not making safety a priority but making, let’s say, output a priority. For most companies, their quarterly and monthly targets and results are very important. Now I am not for a moment saying it is not important. But when you give priority to output over safety, it will have consequences in the long run.

What are some of the policies and laws that need to be implemented in the country to ensure safety?

I think it is less about law but more about creating, sensitising people. In the US, if an employee is injured at the workplace, the company is liable to pay him thousands and millions in compensation. In India, while there are no such rules, we need to create awareness about safe working.

So one the things that we are going to do is train crane operators around the country on safe operating practices, but their job is unlike tractor drivers, trolley drivers, truck drivers, etc., where they have a substantial level of awareness and education. Crane drivers and crane operators are most organisations are either permanent employees or contract employees. There is little training provided by companies and there isn’t a certification exam for them. So what we would like to do is create a network of organisations that provide this training, besides retraining and recertification. And since these jobs see a lot of churn, we would like to make sure that newer employees are also inducted in the training and certification courses.

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The new PROFILE LINE from EWAG is a solution for efficient and flexible machining of indexable carbide inserts.

The machine is built in close partnership with sister company Walter Maschinenbau GmbH and enhanced with Ewag AG's tooling and software expertise. This partnership has produced an extremely efficient grinding centre for advanced grinding of highly complex interchangeable insert geometries, including interfaces.

The innovative technology of the PROFILE LINE has set new standards of production efficiency for these applications. For example, an intelligently integrated 6-station changer for grinding wheel sets and coolant supply manifolds ensures optimum wheel selection, thereby maximising the machining volume for sintered blanks.

Another outstanding feature for autonomous multi-shift operation is the intelligently integrated, flexible automation with a 6-axis Fanuc robot. Customer-specific pallets can be accommodated in the user-friendly robot cell. A highresolution CCD-HD vision system is available for loading grid pallets using magnetic grippers. Cleaning, re-clamping and centring stations can also be integrated and adapted to the customer-specific product range.

Perfect software is required to create perfect geometries of interchangeable inserts on the machine. But the PROFILE LINE offers even more by combining ProGrind software from EWAG with Helitronic Tool Studio from Walter. The machine is totally unprecedented thanks to this unique combination of expertise and know-how from the two machine tool manufacturers.

PRODUCTS

EWAG PROFILE LINE: FLEXIBLE 5-AXIS GRINDING CENTRE

This dramatically expands the range of applications for an extremely wide variety of interchangeable inserts. In drilling or milling applications, even complex geometries can be ground in one set-up thanks to the ultra-precise interfaces of the indexable inserts. This boosts precision and productivity enormously.

Furthermore, the FANUC control unit ensures maximum reliability, availability and ease of use for the user.

For more information, visit: www.grinding.ch

COBOTS FROM UNIVERSAL ROBOTS

Universal Robots' latest technological advancement is collaborative robots or ‘Cobots’ introduced to the international market in line with Industry 4.0. The company is a leading manufacturer of advanced user-friendly and light industrial robotic arms from Denmark. They have a wide market in the USA, Europe and have

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now expanded operations in India and the South Asian region.

The UR3 table-top robot is the perfect choice for light assembly tasks and jobs that call for absolute precision. With 3600 rotation on all wrist joints and infinite rotation on the end joint, the UR 3 is the most flexible, versatile and collaborative robots on the market today. The slightly bigger UR5 is ideal for automating low-weight processing tasks like picking, placing and testing.

The medium-sized robot arm offers one of the fastest payback times in the industry. The UR10, being the largest robot arm in the UR family will automate heavier weight process tasks with payload requirements of upto 10 kg. With a reach radius of 1300 mm the UR10 robot arm is especially suitable for packaging, palletizing, assembly and pick and place where the distance between different operating areas is longer.

The robotic arms can automate virtually anything; from assembly to painting, picking and placing screw driving, labelling, packing, polishing, gluing, dispensing, deburring, grinding welding, palletizing, machine tending and injection moulding and thus can be implemented virtually in any industry, by any operator without special robotic training. Cobots can be used for dangerous applications, where the human workforce might be at risk.

For more information, visit: www.universal-robots.com

Manufacturing Today | APRIL 2018

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 4 edges with unique chip breaker  Rigid screw clamping with 3 contact points  Insert indexing from both sides of the holder  Pocket protects unused edges from chips during machining process

TaeguTec India Pvt. Ltd. Plot Nos.119 & 120, Bommasandra Industrial Area, Phase 4, Bengaluru 560 099, India +91-80-4901 3000 +91-80-2783-9123 sales@taegutec-india.com www.taegutec-india.com