Manufacturing Global – October 2014 by Manufacturing Global

October

2 014

w w w.manufacturingglobal.com

Who will win the

Driverless Race?

Top Tips for Managing Safety EXPERT ANALYSIS: 5 Key Takeaways for Manufacturers Continuous Innovation: The Importance of Looking to the Future

editorâ&#x20AC;&#x2122;s comment

A New Era For Manufacturing T h i s i s s u e o f M a n u f a c t u r i n g Global

is all about a new era for the industry. Our cover feature this month focuses on driverless vehicles and who will win the ultimate prize of being the first company to launch a truly driverless car. From Google to Audi, we take a look at how the autonomous phenomenon is going to change the face of automotive manufacturing forever. And talking of a new era, we also look towards India and listen to what prime minister Narendra Modi has planned for the country. At the end of September Modi hosted an event and subsequent campaign called Made in India, the aim of which being to promote India as the worldâ&#x20AC;&#x2122;s largest manufacturing hub, a title previously held by China. Also in this issue we discuss how to manage apprenticeships, give top tips for rolling out an effective health and safety strategy and go behind the scenes at Boeing.

Enjoy the issue!

Abigail Phillips Editor abigail.phillips@wdmgroup.com 3

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CONTENTS

FEATURES 26 People & Skills

Leadership Is it Indiaâ&#x20AC;&#x2122;s time to shine?

14 Technology AUDI vs. GOOGLE: Who will win the Driverless Race?

How to manage apprentices in the manufacturing sector

TOP 10

Ways to Build a World Class Manufacturing Safety Strategy

Lean Continuous innovation at Boeing leads to sustained success in a highly competitive industry

32 5

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THE E SERIES SINGLE CHIP DLP® PROJECTORS

when it matters.

CONTENTS

38 48 Indurama

AFCP

64 Anjo Tintas

Rhino Tanks

Company Profiles LATIN AMERICA

78 Soletrol

38 Indurama 48 AFCP

AUSTRALIA 56 Rhino Tanks

BRAZIL 64 Anjo Tintas 78 Soletrol 88 Teksid 7

L EA D ERSHI P

Is It India’s Ti

Time To Shine? W r i t t e n by : Ab i g a i l Ph i lli ps

Leadership Flanked by some of India’s wealthiest businessmen, Prime Minister Narendra Modi launched a brand new marketing campaign on September 25 entitled ‘Made in India’ to entice investment and promote the nation as the world’s next cheap labour economy. Modi gathered together hundreds of diplomats, business leaders, journalists and ministers and India’s Prime Minister, Modi, speaks passionately about the country’s manufacturing potential

October 2014

published the event live across India and to diplomatic missions abroad in a mid to prove that labour intensive manufacturing could blossom in India. The slick campaign also came complete with a website and logo depicting a prowling lion, and is as much an advertisement as a promise to streamline bureaucracy and become more investor friendly. “The whole world is ready to come

I s i t I n d i a’ s t i m e t o s h i n e ?

here,” Modi said during the event. He portrayed India as offering democratic values, a demographic dividend of a growing and youthful population and strong demand. “If there is any country in the world where all these three things are present, it is India.” An abundant workforce One thing India certainly has going for it is a growing population – 1.2 billion and counting. In fact, India needs to create lots of jobs - perhaps one million additional ones a month - if it is to employ its booming population. One speaker at the event suggested that 90 million manufacturing jobs could be created in India over the next decade alone, which is good news for the country that will see some 13 million young people join the workforce each year. There have been recent signs that the Indian economy is picking up, however growth rates remain far below the eight percent levels achieved over a decade until growth started slumping two years ago. For many Indian’s a full-time job is still unachievable, more than 700 million people in the country still

“If there is any country in the world where all these three things are present, it is India”

live in poverty and its infrastructure is badly in need of updating. Since becoming prime minister four months ago, Modi has been relentlessly promoting India as the world’s next manufacturing powerhouse - a title long held by China, which is now growing wealthier and working towards 11

Leadership

Modi would like to see productive investment in India’s manufacturing industry that would allow the country’s economy thrive

“I want Indian companies to become multinational and to expand their reach to various parts of the world” 12

October 2014

becoming a consumer economy. A stronger manufacturing sector could help in a host of other ways, suggested speakers, linking India into global supply chains, boosting exports, helping to reduce the current-account deficit and so on. And Modi himself echoed this sentiment, “I want Indian companies to become multinational and to expand their reach to various parts of the world,” he said, just hours

I s i t I n d i a’ s t i m e t o s h i n e ?

before departing for the United States where he and President Barack Obama will meet over an agenda that includes boosting business ties. India needs to boost education and infrastructure Modi means business, that is clear to see, however he is also realistic about the need for India to develop if it is to become the global nation he envisions. He spoke of an urgent need for skills development as far too many of India’s youngsters are poorly prepared for globally competitive work and identified 21 critical areas for industrial development. He spelt out how infrastructure would improve and emphasised the need to make India a far easier place to do business by scrapping red tape and oppressive rules. “Here is a government that is dedicated to development,” said Modi. Businesses leaders praised the Make in India campaign, with tycoons including Reliance Industries Chairman Mukesh Ambani and Tata Group boss Cyrus Mistry attending the launch event alongside Modi. They urged his government to cut red tape and simplify the taxation regime for companies. “What is being

Skills development is key to India’s success launched today is actually going to be the next growth driver for India,” said ICICI Bank CEO Chanda Kochhar. To conclude, essentially Modi wants to build confidence and trust, to make India a less hostile place for investors, both local and foreign and to boost the manufacturing sector dramatically to bring investment and growth to the country – an honorable and ambitious campaign. 13

TECHNO LOGY

AUDI vs. GOOGLE:

who will win the

Driverless Race? Written by: Abigail Phillips

T ECHNO L OGY Driverless cars have become synonymous with Google. The Internet behemoth has been developing autonomous vehicles since 2005 and in 2014 launched its latest prototype, which had neither steering wheels nor pedals. Google seemed to be leading the sector; however in the past month car manufacturer Audi has taken strides that could see it overtake the technology giant. On Tuesday 23rd September, Audi announced that it had become the first automaker to receive a permit from the state government to test self-driving

Google still leads the way when it comes to disrupting the way we drive now and in the future

October 2014

cars on California’s public roads. Audi’s permit was granted under state regulations that went into effect the same day. Does this mean the luxury German brand could overtake Google and become the first manufacturer of a vehicle that can drive itself? Yes and no, said John Rosevear, writing for Motley Fool, “Audi and Google aren’t really playing the same game. Google’s self-driving experiments are a fascinating side venture for a famously smart company, but Audi’s efforts are grimly serious”, he says Google’s vision is one focused very much on the future of driving - a future in which road traffic accidents and congestion become much less common. Its latest prototype is a small and bug-like vehicle with no pedals or even a steering wheel – it’s a totally new concept for driving. On the flip side Audi is focused more on creating a self-driving vehicle that looks very much like its current models - its end goal being to outpace the competition by introducing self-drive elements, rather then utterly disrupt the sector. So who is more likely to win the driverless race? In truth, the first driverless car to come

w h o w i l l w i n t h e D r i v e r l e s s Ra c e ?

Google’s latest driverless prototype doesn’t have a steering wheel or pedals to market will probably look very different from Google’s prototype and more like the vehicles we are used to seeing on our roads daily already. Like many of the technological advances that have been introduced to the automotive manufacturing sector in the past, the battle over self-driving cars will most likely play out in the luxury car market. Before we see a fully autonomous vehicle hit our roads, we will see driverless features added to luxury vehicles already in existence. In fact, driverless feature are

already making an appearance. Many automakers have already introduced features that incorporate technology developed as part of the research into self-driving cars. They include systems that help guide you into tight parking spaces, keep you at a set distance from other cars on the highway, and warn you if you’re about to hit an unseen object. Last year, Mercedes-Benz went even further, introducing the first car that can drive itself, if only occasionally. The new-for-2014 17

T ECHNO L OGY Mercedes-Benz S-Class sedan includes a suite of features called ‘Intelligent Drive’. Under certain limited conditions - stop-and-go highway traffic, for instance the Intelligent Drive system can accelerate, brake, and steer for the driver, up to speeds of 37 mph. It’s far from a true self-driving system - the driver still must pay attention and be ready to take over. However, it’s an impressive feature that

no other automaker has implemented; in the high-end luxury car market, that matters a lot: U.S. sales of the S-Class are up 107 percent so far this year. No wonder Audi is hoping to win its slice of the sector. The luxury car market takes pole position While Google is winning in the PR stakes, it’s the likes of Mercedes that other auto manufacturers are

Mercedes’ S-Class already comes equipped with driverless elements

October 2014

‘Audi’s latest movew is h oabout will win surpassing other automakers’ attempts in the field’

t h e D r i v e r l e s s Ra c e ?

Luxury automakers such as Audi will take the lead with driverless features keeping their eyes on. The success of its self-driving features is causing other manufacturers to bring their own autonomous ideas to market. Earlier this month, General Motors CEO Mary Barra announced that the automaker’s ‘Super Cruise’ system would come to market with the 2017 Cadillac, while BMW is expected to bring limited self-driving capabilities to some of its models soon in the form of its ‘ActiveAssist’ system. Nissan has also promised advances self-driving capabilities in the near future. Its latest Q50 sedan already includes a feature called ‘Active Lane Control’, which can

briefly take control of the car’s steering to nudge it back on course if you drift out of your lane on the highway. In short, Audi’s latest move is not designed to beat Google when it comes to developing a new way of driving, but is about keeping up with and likely surpassing other luxury automakers’ attempts to make steps in the field. Google doesn’t need to be worried. Its bold ideas and fierce ambition set it head and shoulders above the rest when it comes to product development and disrupting the status quo. 19

Le a n

Continuous i leads to s highl

October 2014

innovation at Boeing sustained success in a ly competitive industry W r i t t e n b y : Abi g a i l p h i l i p s

Lean Lean manufacturing has helped countless corporations and small manufacturing companies save time, reduce waste and increase efficiency. Lean best practice and continuous improvement has transformed the manufacturing sector, however the introduction of innovation can take good results and turn them into excellent ones. Boeing is one company that has truly embedded innovation within its culture and the results have been staggering. In 1998 it took Boeing 71 days to assemble its 777 aircraft – today it takes just 37. By introducing a grass roots culture of innovation, the aerospace giant also managed to shave an incredible nine days off the final assembly of its 737, going from 20 days to 11. This level of time saving takes a lot of dedication from top tier executives down to workers on the

‘Ultimately, Boeing encourages each and every employee to be creative, disciplined and persistent’ 22

October 2014

Boeing assembly line in operation ground – its not about implementing a process, rather about changing the company culture. So how did Boeing do it? The company is dedicated to looking outside the box to solve any production problem and bottleneck it comes across and is willing to explore even far-fetched ideas and concepts. Innovation teams meet regularly to discuss these ideas until they find a solution that makes sense and importantly, persist until each problem is solved. Ultimately, Boeing encourages each and every employee to be creative, disciplined and persistent.

Headline

Innovation is at the heart of what Boeing does – every decision is geared towards building a sustainable future for the brand. How Boeing saves time using continuous innovation An example of how Boeing saves time and thus money can be seen when you look at the development of the 757 assembly line. Plant engineers struggled with a timeconsuming bottleneck due to having to lift the plane’s heavy seats up to its doorway and inside for installation. Once the seats came to the plant,

they were fitted with wheels, lifted by an overhead crane to the airplane doorway, unloaded, rolled into the cabin, divested of their wheels and finally installed. The process from beginning to end took 12 hours. Members of Boeing’s ‘Moonshine Shop’ – a team of people tasked with developing ideas in late night thinking sessions – began searching for a more effective process. They asked the question: “If not cranes, then what?” The team attended county fairs and studied Ferris wheels; they looked at ski lifts and automated roofing carriers but nothing quite fit the bill. 23

Lean Eventually one of the team members mentioned the hay loaders her say on farms near his home. Could they be adapted to ferry heavy seats up to the plane for installation? The team began looking into the workings of hay loaders and finally found a rancher who could develop a viable machine that met their exact specifications, adding safety guards. The new hay loader was put into production and shaved an astonishing 10 hours off seat installation. It was quickly rolled out across all 757 manufacturing plants. Then there was a problem with the airplane tires being punctured by the ubiquitous metal fasteners that littered the floor as they rolled down the assembly line. Engineers created sweepers that hooked onto the landing gear, which worked to catch the larger items but missed the tiny fasteners. Then one engineers remembered seeing motorcycle wheels covered by protective canvas casings at a race so developed the covers for the 757 and tried them; they were extremely effective. Solving the problem saved Boeing $250,000 per annum, per aircraft. Then there was the complex system 24

October 2014

of almost 700 hydraulic tubes that were individually installed into the wheel well of the 737 landing gear - a time-consuming and frustrating process requiring two shifts to complete. According to an article in the Wall Street Journal, Boeing engineers and mechanics shortcut that process by suggesting that the tubes be grouped into larger clusters at another plant. The resulting products are much quicker to install, saving more than 30 hours of mechanic labor. Whatâ&#x20AC;&#x2122;s more, new process also reduces hydraulic leaks.

Small changes can make a large difference when it comes to time saving and cost reduction

C o n t i n u o u s i n n o v at i o n at B o e i n g l e a d s t o s u c c e s s

How to innovate your production line Below are some key takeaways to embed a culture of continuous innovation at your plant, outlined by Sally Mounts, President of Auctus Consulting Group: 1. Be persistent. Many of Boeings solutions were achieved after previous efforts had failed to get off the ground. Don’t stop searching for a workable solution before the goal is achieved. 2. Apply creative thinking. Consciously and consistently apply creative thinking to the problem. Get out into the world and survey unrelated industries for ideas. Work the problem by looking outside of the conference room. 3. Develop teams. Hire a team of people to address innovation issues on a constant and consistent basis. Boeing’s ‘Moonshine Shop’ works full-time to address lean manufacturing productivity concerns. You may not need

Innovation is embedded into the culture of the company full-time innovators, but project teams can accomplish similar results with the right guidance. 4. Embrace continuous improvement. Boeing has borrowed this concept from Japanese lean manufacturing, and it has paid off handsomely for the company. Never stop striving to make things better, faster and easier. Continuous innovation will not only make your processes simpler now, but will set your business up for greater success in the future as well. 25

P e o pl e & S k i ll s

How to manage apprentices in the manufacturing sector Writ te n by: Ab i g a i l Ph i lli ps

The global economic recession took it toll on manufacturing around the world. Reduced spending created a domino effect of reduced demand and subsequent employee cut backs, but the good news is the economy is picking up so sufficiently that employers in all sectors are seeking to hire more staff. 26

October 2014

However, the recession has not only changed the thinking of corporations and employers, but also that of school leavers. With university degrees costing money, and the very real prospect of unemployment upon graduation, many students have opted instead to enroll in vocational courses or embark on apprenticeships.

A report published in July from Sandler Training, a business consultancy service, used data from a survey of over 1,000 SMEs. It found that academic qualifications are “losing out to practical skills”, which, the report claimed, “can deliver more tangible effects on a business”. The companies surveyed

said that they expected to be increasing their apprenticeship hiring by 20 percent within five years’ time but boosting graduate recruitment by only seven percent. And this trend is particularly prevalent in the engineering and manufacturing sectors, where the number of people completing ACT 27

P e o pl e & S k i ll s (the largest training provider in Wales, U.K.) apprenticeships has risen by more than 38 percent. Andrew Cooksley, managing director of ACT suggests that employers looking for ‘hard skills’ over ‘pure’ academic qualifications might drive the trend. So there seems to be a very real shift towards on-the-job training, which means the way site managers recruit and manage

employees, is also changing. Top tips for managing apprentices for mutual gain 1) Set expectations. Whenever you bring a new employee onboard, it’s important you set clear goals and expectations. Outline the key skills you expect your apprentice to gain throughout the programme, identify the work he or she will need to

Make sure your apprentice is aware of expectations from day one

October 2014

Headline

Be sure to monitor progress complete and the hours required for success. Will your apprentice need to obtain any formal qualifications while on the programme? Do they need to record their own progress? All these questions need to be answered on day one. 2) Create a detailed plan. Before you employ any apprentices, you need to create a detailed training manual outlining each individual step of the course. This manual will be extremely valuable for the apprentice. Not only can he monitor his progress, but also reference critical

information. Think of this manual as a course textbook. It should include educational materials, development markers and practical instruction. 3) Monitor performance. Once you have developed the detail behind your apprenticesâ&#x20AC;&#x2122; learning journey you may find it helpful to identify how you will manage quality at each stage. For example, how will you know that the initial assessment process is working effectively and delivering the right outcomes for individual apprentices? The following ideas can be used to 29

P e o pl e & S k i ll s build a plan to monitor and improve the quality of each stage of the apprenticeship journey and also the programme as a whole. • Establish clear processes for each stage or element of the learning journey. • Identify key performance indicators. • Decide how you will gather and analyse feedback from individual apprentices, managers and other people involved in the apprenticeship. • Determine when and how assessors will share their experiences. • Develop processes to spot check or ‘sample’ apprenticeship documentation. • Decide how often training delivery will be observed.

Apprenticeship schemes are becoming increasingly more popular in the sector

October 2014

‘...employers looking for ‘hard skills’ over ‘pure’ academic qualifications might drive the trend. So there seems to be a very real shift towards on-the-job training, which means the way site managers recruit and manage employees, is also changing.’ • Determine how you will check agreed processes are being followed. • Review the Common Inspection Framework and think about how you could meet the standards described. • Create an overall quality plan for your apprenticeship programme. • Identify who will lead the implementation and future development of the plan. A training provider may deliver some elements of the plan on your behalf but

Headline

A buddy system will fast track learning on the job it is important that you maintain overall ownership. Managing quality is about ensuring that apprenticeships deliver for your employees and the business so you may also choose other, internal measures to ensure this is the case.

point of view, giving existing employees the responsibility of training new recruits is good for employee morale and could also help executive management identify potential leaders in the business.

Assign mentors A great way to fast-track learning and monitor the progress of individual apprentices is to assign buddies with a wealth of experience in the relevant area of expertise. This engagement will help the apprentice see how each task should be done safely, efficiently and to a high standard. It also acts as a benchmark for the apprentice’s own development. From a business development

Offer full time employment Finally, when all is said and done, ensure your apprentice scheme offers successful trainees the opportunity for full time employment – it may even be worth making 12 months employment compulsory - considering on average, training an apprentice will cost the business in the region of £20,000 (USD$32,000) so don’t spend the money only to hand welltrained recruits to competitors. 31

TOP 10

Top 10 Ways to Build a W Class Manufacturing Sa Strategy Written by: Abigail Phillips

Manufacturing executives shouldnâ&#x20AC;&#x2122;t overlook health and safety man develop and maintain an effective strategy could result in poor financ branding or in the worst-case scenario serious injury or death. Large accidents relating to safety can incur painfully high penalties and cause insurance premiums to skyrocket. How can manufacturin a health and safety system that protects its people, products and bo 32

October 2014

World afety

nagement. Failure to cial results, negative

s, set back production ng executives develop ottom line?

10. Have a handle on first aid In the event of an emergency easy access to medical equipment is crucial. The manufacturing facility should be well stocked with essential and job-specific first aid equipment, and each item should be well identified. All employees should have at least minimal training when it comes to using first aid equipment. In many cases, it is necessary to have staff members who are specially trained in first aid, CPR or confined-space rescue.

9. Know where you stand from a legal standpoint Make sure everyone is well aware of his or her accountability and responsibilities. Many countries and/or jurisdictions have differing level of liabilities, includingÂ personal level liabilities.Â All stakeholders within the company should be well aware of those liabilities and processes. Documentation should be prepared inÂ accordance with the stakeholders to ensure everyone 33

top 10 is protected and practices a safe work environment in their management style and behavior.

8. Restrict access to dangerous areas on site Work sites should only be open to the people trained and paid to be there. Friends, family members and employees from other departments should not be granted access to areas where work is being done. Identify restricted areas with signs and tape. In many cases, it is necessary to limit access with locked gates and doors. Let your workers know to report any unauthorised people in your facility and if employees grant unauthorised people access, know they will face stern repercussions.

7. Be aware of permanent risks and hazards and plan accordingly Many machines in manufacturing are dangerous regardless of whether they are working exactly as they are intended to. Take 34

October 2014

chemicals, for example, you canâ&#x20AC;&#x2122;t simply remove the risk of a dangerous chemical by doing a quick check, but you can make sure all chemicals are properly labeled and that employees are equipped to handle them properly. Many machines heat up quickly and pose a fire hazard, even when operating correctly. Itâ&#x20AC;&#x2122;s your responsibility to know the limits of your equipment and communicate them to all workers. Confined spaces are another permanent hazard that can be difficult to address. As confined spaces exist in most manufacturing settings, it is important for your employees to understand the risks of becoming entrapped or finding themselves in an oxygen-depleted area. Address that risk with training, exhaust blowers and confined space rescue equipment, and always make sure employees in such conditions work in pairs.

6. Ensure machinery is properly and regularly maintained Machinery and equipment that

people who come in regular contact with your equipment should know what a machine looks like, how it smells and how it sounds when operating properly. If a machine is deemed potentially unsafe, it should be shut down immediately for repairs. Onsite workers should not attempt to repair malfunctioning equipment on their own without first alerting a supervisor.

5. Develop a manufacturing safety committee

isnâ&#x20AC;&#x2122;t properly maintained can be very dangerous. Even equipment with fail-safes can malfunction if you do not perform regular maintenance checks. To minimise the risk, have your equipment inspected on a regular basis by a professional, whether in-house or contracted. And donâ&#x20AC;&#x2122;t rely solely on those spaced out inspections; make sure that your employees know how to perform a quick inspection before and after using each piece of machinery. The

Encourage employees to get on board with outlining and maintaining a health and safety strategy by developing a manufacturing safety committee. Each division should elect a number of representatives, who will join a meeting each month or quarter to discuss changes to the safety guidelines of the plant. Each meeting should be an open forum, where all employees at the plant are welcome to join the discussion or bring a concern to the table. During these meetings milestones should be developed, and 35

top 10 achievement of milestones should be celebrated, such as no lost time for each month, quarter, and year. Bringing your employees into the debate from the beginning and giving them a voice will motivate them to implement new strategies.

4. Examine processes for fatigue factor, breaks and rotation Repetitive actions and activities cause most long ranging issues

October 2014

with employee well being. Fatigue increases as the day goes on. Repetitive actions require synchronisation with man, machine and environment, which begin to slow as the day goes by. These can be overcome with effective and frequent rotations, thus bench strength becomes a key to success. Breaks must be designed with these factors in mind and may be allowed differently for different type of jobs

B u i l d i n g a W o r l d C l a s s Ma n ufa c t u r i n g Saf e t y S t r at e gy

considering these load factors.

3. Promote manufacturing safety in groups Consider the safety of the group and rally the workforce towards a common goal. This automatically activates accountability to persuade others to act in a certain way, which mirrors the goal of focusing on safety. This is especially effective in more volatile and variable operations where volume surges result in frequent workforce reduction and expansion. Try a buddy system to ensure safety of the individual and that of the group. This team focused system makes it relatively easy to spot and prevent unsafe behavior and practices.

2. Make safety a priority from day one Safety standards and expectations need to be highlighted from day one. To build an effective safety program its implementation will need to be part of the company culture. Having an SOP is not

enough, it needs to be explained, taught and critically, maintained by management. Floor managers need to watch out for employees cutting corners or ignoring protocols and discipline those employees when necessary.

1. Develop a training programme A manufacturing facility is only as safe as the people working in it. Detailed training needs to be given to every employee entering the workplace and periodic refreshment courses are essential. Employees should have regular training on equipment, personal safety and first aid â&#x20AC;&#x201C; they should be able to recognise if a machine is not working, know who to contact in a medical emergency and how to evacuate the facility. At the end of each training course, those in attendance should sign a form stating they understand the health and safety requirements discussed and that theyâ&#x20AC;&#x2122;ll adhere to them. This information should be saved as part of the employeeâ&#x20AC;&#x2122;s file. 37

Indurama: Strengthening Its Presence Across Latin America Pioneering vision in the creation of appliances .

Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Diego Pesantez Interwviee: Juan Pablo Vela, CEO of Indurama

INDURAMA Competition in Manufacturing

L Commercial products

atin America has become one of the main regions exporting raw material, reaching the most industrialized countries with state of the art manufacturing. Over the years some cities were established as assembling zones, then later on became manufacturers in a region where big brands already had an established market. Indurama is one of those Latin American companies that saw the region as a strategic point for the manufacturing of appliances, but also as an emerging market and a fertile field for permanent growth. In 2013 the company appointed Juan Pablo Vela as the new CEO. Vela has been part of Indurama Group since 2003, starting in Marcimex (a commercialization chain with more than 90 retail stores in Ecuador) from 2003 to 2008.

Cutting edge equipment

Vela opened Marcimex in Peru in 2008 and remained in the country until 2013 as the companyâ&#x20AC;&#x2122;s CEO. In less than five years the company opened 60 branches. He then took over as the new CEO of Indurama and returned to Ecuador to manage this new position. Creating Prestige and Innovation for Todayâ&#x20AC;&#x2122;s Home Indurama has a history of more than 40 years

October 2014

L AT I N A M E R I C A

Key People

Juan Pablo Vela CEO of Indurama

Innovation in and out of each appliance

of prestige and has been catalogued as a representative company of the city of Cuenca. The manufacturing company has engaged primarily in the production of kitchen and refrigeration systems in their two manufacturing plants in Ecuador.

w w w. i n d u r a m a . c o m

INDURAMA Their specific objectives are expanding Indurama’s brand in Latin America, consolidating their products and increasing their supply. Balancing Technology and Human Resources One of the biggest and most consistent areas the company invests is the renewal and development of their technology in its many departments, such as automation to increase plant productivity without interfering with their employees capabilities, which allows them flexibility and dynamism by rapidly responding to the market and consumer needs.

Refrigerators Indurama

“We always maintain a strong focus and distinction with a high design component in our products. Therefore it is important to have that flexibility,” Vela said.

“We always maintain a strong focus and distinction with a high design component in our products. Therefore it is important to have that flexibility” – Juan Pablo Vela, CEO of Indurama

October 2014

L AT I N A M E R I C A

The Human Element “My greatest satisfaction is having people with lots of leadership and lots of excellence. This comes from shareholders that transmit these values,” says Vela, who emphasized the individual and collective values of every person working in Indurama.“Because if there is a constant in business, is that you will always have new challenges; face them and learn from it to achieve results.”

Conditioning of global excellence

Employees

w w w. i n d u r a m a . c o m

www.fairis.com

L AT I N A M E R I C A

Strategic Management for the Future Nowadays, Indurama processing plants supply almost one million units to fulfill the market needs, being kitchens and domestic refrigeration products their most popular orders. As a leading brand in Latin America, the company seeks to consolidate its operations in the region through the gradual expansion of new products in its portfolio. Theyâ&#x20AC;&#x2122;re trying to achieve that by manufacturing more air conditioners, televisions, washing machines and other household equipment.

Processes with global standards

Developing Suppliers Another key tool for the position and branding of Indurama throughout the continent is their relationship with suppliers. These strategic SUPPLIER PROFILE

FAIRIS

Number of employees: +400 Stablished: 1928 Type of industry: Manufacture of safety glass for appliances, tempered glass, insulated glass for commercial refrigerators. Main Services: Specification, development, products of tempered glass for household appliances, flat, bend, spherical (press), edge work, drilling, up to three colors, packaging and shipment. Recent Projects: Startup of tempering furnace for 3.0mm glass thickness, our capacity now has three complete lines from cutting to tempering. President: Lic. Jorge H Jaramillo V CEO: Jorge Luis Jaramillo D. mba Production Manager: Ing Marlon Salazar.

Visit Our Webpage: www.fairis.com

w w w. i n d u r a m a . c o m

INDURAMA

Quality control

alliances are generating new designs, materials and products, and make it possible for the company to establish strong distribution networks and strengthen brand presence with post-sales services. “This has allowed Indurama to grow in quality, design and services, benefiting our customers and suppliers,” Vela said. Environmental Impact Initiatives Appliances Indurama

October 2014

One of Indurama’s most successful projects is currently carried out in partnership with ONUDI (United Nations Industrial

L AT I N A M E R I C A

Development Organization) and the Ecuadorian government to reduce polyurethane emissions in favor of cyclopentane, which is friendlier to the ozone layer. The company is also implementing the more environmentally friendly refrigerant gas R600.

Company Information INDUSTRY

Manufacturing of appliances HEADQUARTERS

In addition to these programs, Indurama is constantly working on obtaining the compliance certification of global standards. “We are a low-impact company in regards to the environment and we are always looking to improve in this area,” Vela said.

Cuenca, Azuay, Ecuador FOUNDED

1972 EMPLOYEES

2,500 PRODUCTS AND SERVICES

“Because if there is a constant in business, is that you will always have new challenges; face them and learn from it to achieve results”

Refrigerators, stoves, coolers, stoves, ovens, toasters, countertops, air conditioning, household items, etc. REVENUE

USD$200 millon WEBSITE

www.indurama.com

– Juan Pablo Vela, CEO of Indurama

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Association of Pulp and Paper Producers: Argentinaâ&#x20AC;&#x2122;s Paper Community Written by: Osvaldo Vassallo, President of the chamber Produced by: Diego Pesantez

A r g e n t i n a’ s Pa p e r C o m m u n i t y

e titled this article “La Comunidad del Papel”, which is the name we have given to our facebook page, which aims to disseminate the qualities of the cellulose and paper in sustainability. Why? Our Association, which concentrates the most important producers of cellulose and paper in Argentina (more than 80 percent of the producing market), has been in disbelief, it has been punished harshly and unfairly due to the paper figure, hiding behind false conceptions installed in our society, concerning the use of native forests to make paper.

“Our Association concentrates the most important producers of cellulose and paper in Argentina” – Osvaldo Vassallo, President of the Association of Pulp and Paper Producers 50

October 2014

Nothing could be farther away from the truth. Paper, at least the ones produced in Argentina, occurred thanks to implanted forests or alternative fibers, for example, sugar cane. In addition to this, more than 50 percent of the materials used come from recycled paper, which is a constantly promoted activity in our association. Today, we have set as one of our goals the promotion of knowledge in regards to our material, not only through networks, but also with training, both in distance or face to face. As the last scenario and in agreement with the two universities that are dedicated to Technology in

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Biomass boiler

Cellulose and Paper, we provide top-level training for young professionals and technicians to get involved with the essence of our production and virtues of the material in with which we work. Additionally, every two years, we summarize, verified in each segment and in each area, in the event of Cellulosic Days. The next convention will w w w. a f c p a r g . o r g . a r

Osvaldo Vassallo, President of the Association of Pulp and Paper Producers

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be held in May 2015 and stands as an attractive event with panels of experts to discuss topics related to our business, such as the disclosure of the latest technological developments, forest certification, chain of custody, social responsibility, and the economy. We have a personalized biweekly newsletter that reports the most significant developments in the sector, both in our country and the region.

Yankee for new voith pulp machine in Argentina

At the institutional level, our Association holds the representation of members against state, local and private agencies. Through an agreement signed this year in pursuit of generating improvements in production, investment and job creation on our part, while receiving from the national state financial aid and communication strategies. In this area, we have relationships with other related institutions such as Argentina Forestry Association, the Federation of Industrial Graphics Argentina, and the Chamber of Corrugated

â&#x20AC;&#x153;Our Association holds the representation of members against state, local and private agenciesâ&#x20AC;? â&#x20AC;&#x201C; Osvaldo Vassallo, President of the Association of Pulp and Paper Producers w w w. a f c p a r g . o r g . a r

A r g e n t i n aâ&#x20AC;&#x2122; s Pa p e r C o m m u n i t y

Treatment plant of Smurfit Kappa effluents in Argentina

Argentina Federation Timber Industry. It should be mentioned that these institutions have sponsored CerFoAr, a Forestry Certificate from Argentina that was recently approved by PEFC Internationally. We remark that our Association is itself the National Representative to the Federation. That is why together we generate wage settlements and mainly the Collective Bargaining Agreement that governs domestic activity. It should be noted that the areas in which we operate are cellulosic, that of printing and writing paper (including newsprint), the packaging paper 54

October 2014

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and tissue. Rounding out the line, the cards for folding boxes lined in cases for applications such as medicine, food, cleaning products, cosmetics, etc.

Company Information Industry

In our statistics, and as can be seen internationally, the two items are clearly growing packaging paper (with 58 percent share of total) and tissue paper (17 percent).

Industry Chamber

In parallel, we are not predicting high level investments in Argentina, which we believe are specifically tied to the better use of existing investments, and especially dedicated to process recycled materials.

Founded

The Argentina coexists with the best land, mild and all year round climate, abundant and predictable rainfall patterns, which offers the best opportunities for forest management, coupled with the existence of large areas of planted forests, which create the potential for investments in cellulose and paper, specially engaged in import substitution verifying a growing trend for the coming years.

key people

headquarters

Argentina

1932 employees

Osvaldo Vassallo, President of the chamber adDress Belgrano 2852 (C12009aan), C.A.B.A, Buenos Aires, Argentina email

info@afcparg.org.ar

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Rhino Water Tanks:

Rhino Water Tanks: Water Sto

Rhino Water Tanks provides products and services f rural and commercial customers. Written by: Laura Close Produced by: Wayne Masciotrio

orage Solutions for Australia

for domestic,

Rhi n o Wat e r Ta n k s

Mt Thorley tanks in progress for Rio Tinto.

RHINO WATER TANKS, is a privately owned and operated Australian company with over 20 years experience in the water storage industry. Currently Rhino Water Tanks is represented in all states and has a growing network of distributors and installers. Strategically the company is moving towards offering more options to contain various solutions, not just water. They are also looking at options to expand into more environmentally-orientated solutions and self-supporting systems for water, power and gas.

October 2014

Water Tank Specs These modular steel tanks range in sites from 26,000 litres to over 2 million litres, and are available in Zincalume (a metallic coated sheet steel that offers two to four times the corrosion resistance of galvanised steel) or Colorbond (a product specifically made for Australian conditions and comes in a variety of colours). The whole tank and all of its componentsâ&#x20AC;&#x201D;including the Hydrashield linerâ&#x20AC;&#x201D;are manufactured in the companyâ&#x20AC;&#x2122;s Western Australian factory. Rhino Tanks made this a priority for their company to be able

Ma n ufa c t u r i n g

Rhino Water Tanks

to control the quality of every aspect of the tank manufacturing process. Hydrashield is a reinforced foodgrade Metallocene coated liner that is UV treated and is suitable for exposed applications where a roof is not required. Products in Rhino Tanks’ line are approved for drinking water, as well as a range of other liquids including vegetable and animal oils, both high and low pH water as well as sewerage, waste and recycled water. All of the wall sheets are corrugated and rolled from galvanised steel; roof trusses are hot-dipped galvanised for

durability. The Metallocene-coated liners, just like the Hydrashield, are also UV treated. Continuous Improvement Rhino Water Tanks is a qualityendorsed company. All products are manufactured in the Western Australian factory under a quality management system certified to ISO 9001. Rhino’s quality management system aims to benchmark its products and services against the best in the world. The wellrecognised ‘Five-Ticks’ Standards Mark is proudly displayed to give w w w. r h i n o t a n k s . c o m . a u /

Rhi n o Wat e r Ta n k s

“The domestic water tank market is still our main focus and we use this as a base to grow into the other areas when it suits. To be around in five years time in the challenging manufacturing industry the main key is to keep being smarter, innovative and economical with anything you do and that is our main focus.”

customers the confidence that Rhino Water Tanks continually strives to provide cost effective, quality products and services that meet the customer’s individual needs and expectations. “Being an ISO 9001 accredited company continuous improvement is what you strive for,” said Duane Crombie, CEO. “Furthermore, being a manufacturing business is always tough and gets tougher with every year due to rising expenses and materials and market pressure to make a sale that is mainly based around price and not quality and service.” The company has made key changes with their manufacturing systems, where Rhino has been able to increase productivity with the introduction of machines and robotics. Material usage and time management are the two main focuses to continual improvement and will continue to drive the business to better results. Domestic & Rural and Commercial Water Tanks Rhino Water Tanks provides

Ma n ufa c t u r i n g

A couple of Commercial Rhino Tanks completed for a warehouse in Canberra.

products both for domestic and rural needs as well as for commercial sites. The company’s range of domestic and rural water tanks are specifically designed with the unique needs of the user in mind. The following features are included on each tank dedicated for domestic and rural customers: • Rhino Infinity Tank Liner • Bluescope Steel Corrugated Wall & Roof Sheets • Dust and Vermin Proofing Seal • Tank Inlet • 20-year Warranty • Magnesium Anodes for Corrosion Protection

• 50mm Scour Drain • Lockable Access Hatch • 100mm Bell Mouth Overflow There are also a range of optional features: • Additional Outlets and Valves • Fire Fighting Coupling • Rainsavers – Tank Roof Catchment System • Removable Internal/External Ladder • Additional Inlets • Water Level Gauge • Tank Roof Fascia • Rhino Aqua Tub

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Rhi n o Wat e r Ta n k s

Some fantastic photoâ&#x20AC;&#x2122;s of three Rhino Tanks installed in Rio Seco, Peru.

Ma n ufa c t u r i n g

Global Operations The global expansion is through Rhino’s sister company called Rhinex. The main factor that drives this is the need for cost-efficient storage that can be exported and freighted efficiently and then create a large water storage solution that is constructed simply with basic tools and expertise. This will continue as the demand for clean drinking water grows around the world and the flexibility in establishing a water point in difficult area’s or terrain. Rhino Water Tanks now has two distributors in United Arab Emirates, and has recently started shipping tanks to Afganistan through their Dubai Distributor Protech General Trading program. In 2011, the company opened a location in Port Moresby, the capital city and largest city in Papua New Guinea. “We see the business growing still but into areas where it suits our business needs and not spread ourselves too thin,” said Crombie. “The domestic water tank market is still our main focus and we use this as a base to grow into the other areas when it suits. To be around in five years time in the challenging manufacturing industry the main key is to keep being smarter, innovative and economical with anything you do and that is our main focus.”

Company Information Industry

Manufacturing headquarters

Western Australia founded

1990 employees

100 revenue

$50 Million products/ services

Rhino Water Tanks provides several different water storage solutions for the wide range of customers in Australia. The tanks are Australian made, owned and operated, and are built with the strongest materials on the market for the highest quality.

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Anjo Tintas:

Focus on the best Cost-benefit of Innovation

Company invests in Research and Development of products and offers products at affordable prices to clients and end users Written by: Tania Franco Produced by: Jaroslav Pribyl

A n j o Ti n ta s

njo Tintas is a unique Brazilian company that has a new way of relating to the consumer market; it’s focused on innovation and offering its clients the best cost-benefit relationship possible. Anjo has more than 100 products present at more than 5,000 points of sale throughout the country. The company maintains continuous investment in Research and Development. This strategy has resulted in its being named as one of the 30 “most innovative companies in the national chemical and petrochemical sector,” as awarded by Exame magazine in 2004 and 2006. “We believe that companies that invest in innovation will set themselves apart in the market”, emphasizes Filipe R. Colombo, the company’s president.

Thinner Anjo production

October 2014

Laboratory w w w. a n j o . c o m . b r

Acrylic paint 68

Julho 2014

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http://www.solvay.com

http://www.businessfriend.com

http://www.brasilata.com.br/pt/index. php

http://www.dow.com/oxysolvents/

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Headquartered in the city of Criciúma, in Santa Catarina, Anjo Tintas is a company specializing in paints, solvents and accessories for the automotive, real estate, flexography (printing) and industry sectors. Since innovation is key for the company, Anjo Tintas has a partnership with the Federal University of Santa Catarina (USFC). Through this relationship, an exclusive technical team, made up of masters degree and Ph.D. holders in chemistry, chemical engineering and material engineering with extensive experience in the paint sector, works within the university’s confines to develop new products and make improvements to existing products. “As a result, it’s possible to highlight the launch of innovative products, such as ProtectPack, an anti-bacterial paint aimed at flexography companies.” [Others include] “The Super Leve plaster, the Premium Acrylic Paint Anjo Mais, and Eco-Thinners,” he details. “In fact, Premium Acrylic Paint Anjo Mais offers a yield up to 80% higher than common paints in the market”, he emphasizes with respect to the savings passed on to the consumer. According to the executive, the differential in Anjo’s solutions, in addition to bringing together innovation and cost-benefit, is the company’s concern with sustainability. “Our products are differentiated because, in addition to offering the best cost-benefit to retailers (Anjo’s direct customers) and end users, we are also concerned about sustainability. In other words, our innovations reduce the impact on the environment, improve the user’s yield, create less residue and also protect the end user”, he details. He says, however, that the main challenge is to continue to grow sustainably in a market that has little room for product differentiation. “We have worked hard on innovation to develop unique products and to stand out from the crowd”, he adds. Anjo Tintas uses tools for the continuing education of its employees and the business as a whole, such as the Process Improvement Groups Program and the Profit Sharing Program, in which all employees have the w w w. a n j o . c o m . b r

A n j o Ti n ta s opportunity to participate. The Process Improvement Groups Program, the company’s main participative management tool, provides professionals with the opportunity to suggest improvements, not only to the areas where they work, but also to the entire corporation. Through this initiative, Anjo’s goal is to develop the company’s intellectual capital, its professionals, by contributing to the constant improvement of corporate processes to create a happy and healthy work environment. The company’s employees also participate in a Profit Sharing Program. Through it, all professionals are required to meet established goals on a monthly basis to be able to participate in the profit sharing program. These goals include but are not limited to average sales cycle time, late payments, sales per professional, and administrative or financial costs. The indicators are managed by a professional who does this work on a volunteer basis. Each employee submits his or her individual results each month. When the pre-determined goals are met, the professionals earn percentages (also pre-determined) on top of their base salaries. The company has activities to retain and develop its employees. One of them is called “The Leaders of the Future Project,” a postgraduate course – with content applied on the job – offered to talented professionals in conjunction with the educational institution, SATC. Anjo even provides scholarships in the 72

October 2014

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Anjo factory w w w. a n j o . c o m . b r

A n j o Ti n ta s

amount of 40% of the total cost of bachelor’s degree courses for its employees. In addition, the company does 360° employee reviews, through which the employees’ needs for technical training for employees are identified and, depending on the results of the review, the company offers employees courses designed at meeting those needs. Investments in technology are also part of the corporate strategy of the company. Between the end of 2013 and the beginning of 2024, Anjo modernized its entire IT infrastructure. With the goal of ensuring a high level of data availability, new high-performance servers, working as a cluster, were purchased and installed in different data centers. The internal networks were overhauled, new high-transmission switches were installed and the access points were replaced. In addition, according to Anjo’s president, the company is substituting its current Business Intelligence system with QlikView software, which “offers better dynamics and is much more user-friendly than the old system.” 74

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In the factory, Anjo is always on the lookout for opportunities to automate its process. The latest purchase was an automatic filling machine. Aiming at improving the management of its operations in addition to offering agile and automated service, Anjo has a WMS system installed at its sites. Regarding product distribution, the company monitors product stock levels at its affiliates to guarantee quick re-stocking, order releases and shipments so that service is quick and agile. The company is constantly on the quest for certifications that guarantee the quality of its products. In 1999, Anjo received the ISO 9001 certification. In 2012, it earned the ISO 14001 certification. GROWTH Founded in 1986, Anjo Tintas currently serves more than 5,000 clients. Its headquarters and its four manufacturing facilities are located in w w w. a n j o . c o m . b r

A n j o Ti n ta s

“We believe that companies that invest in innovation will set themselves apart in the market”

Filipe Colombo, Director of Marketing and Innovation

Criciúma in Santa Catarina. The company also has three distribution facilities: one in Bragança Paulista, in the state of Sao Paulo, one in the city of Aparecida de Goiânia, in the state of Goiás, and one in Vitória de Santo Antão, in the state of Pernambuco. At the end 2012, Anjo carried out strategic planning that includes various projects to be developed. In 2013 and 2014 some of these were already completed and others are currently underway. Among the projects completed are Integrated 76

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Company Information Name

Anjo Tintas e Solventes Industry

Chemical headquarters

Criciúma, SC - Brazil e s ta b l i s h e d

02/04/1986 Products

Fabricate products such as thinners and paints for the automotive, real estate, printing and industrial sectors.

Logistics, repositioning of the automotive line, a tintometric system for its real estate line and leader development. “We project real growth of 122% through 2022. Among our plans are the expansion of our manufacturing capacity and entering other sectors, which we cannot release more information about”, he finalizes. w w w. a n j o . c o m . b r

Soletrol

is a synonym for innovation in solar heaters

The main highlight is the compact product, intended for popular housing, bringing together easy installation and a competitive price Written by Tania Franco Produced by Sergio Ambrosino

soletrol

he featured characteristics of Soletrol, a company founded and headquartered in the city of Sao Manuel in the interior of the state of Sao Paulo, are its investment in the expansion of industrial capacity, development of new technologies, emphasis on the fine-tuning of industrial processes, the importance it places on professional training,a nd its effective exercise of corporate leadership. The company has been in the market for 33 years, serving all of Brazil, and exports its products to a variety of nations. â&#x20AC;&#x153;Soletrol has a unique structure that no other company in all the Americas has and it is effectively the market leader, not only producing more significant quantities than its competitors, but it is also a major developer of technology and innovative products, having popularized the solar water heater as well as spreading knowledge and training professionals across the sector,â&#x20AC;? says the Director President of the company, Luis Augusto Ferrari Mazzon.

Solar Panel 80

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Solar Water Heater

AN INNOVATIVE COMPANY Regarding new technologies, Soletrol created and developed the market for solar water heaters for low-income housing, popularizing the use of the technology and providing energy savings to the neediest families. An example of industrial innovation is the solar collectors whose assembly does not require rivets or screws. The innovation not only stimulates production, but it also guarantees a longer useful life for the products. This is one of the 27 patents and Rights of Industrial Design (RID) that Soletrol holds. The automated processes, which the metal welding of Soletrol thermal reservoirs pass through, as well as the models, made of thermoplastics, guarantee higher quality and durability in the resulting manufactured products. The purchase of new production equipment also is part of the companyâ&#x20AC;&#x2122;s w w w. s o l e t r o l . c o m . b r

soletrol

non-stop quest to stay ahead of the market. In 2013, the company invested R$2 million in the purchase and installation of a rotational molding machine and line. The equipment, which builds the internal structure of the thermal reservoirs, used in low-income housing projects as well as in products offered to the general market, was purchased to meet the growing demand stemming from contracts Soletrol signed with builders throughout the country. In 2015, the company will have finalized an investment of nearly R$ 5 million. Of this amount, approximately 50% was allocated for the purchase of equipment and the expansion of the companyâ&#x20AC;&#x2122;s technical support capacity, such as a building for the production process support sectors. The remaining half was allocated to the redesign of the production line and the expansion of the factory area to accommodate an increase in production capacity.

Solar Swimming Pool Heaters

October 2014

Praรงa do Sol

soletrol Soletrol also stands out for being the only company in Brazil that has a development and test lab for solar heaters and new technologies, the Soletrol Technology Center. In addition, the company participates in training market professionals. Soletrol is the founder and sponsor of the University of the Sun – Augusto Mazzon Foundation, which provides theoretical and practical training, supports technical projects and publications, and sponsors television programs that promote the training of the sector’s labor force, such as the program Solar Energy on TV – ESNTV. PRODUCT FOR LOW-INCOME HOUSING Soletrol serves all solar market segments through the provision of water heating equipment in homes that are already-built (traditional or high level) or are under construction as well as in commercial and industrial buildings,

http://www.euroveder.com.br

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Soletrol products for hotels

hotels and pools. Since 2012, a large proportion of the products made by the company (50% of current production) is aimed at the low-income housing market. For example, compact heaters that cost approximately R$ 1,300 are installed in 120 sq.meter homes. Among these programs, the CDHU (low income housing office of the state of Sao Paulo) and COHAB (a stateowned company responsible for running public housing policy in the city of São Paulo and its metropolitan region) programs stand out, along with the MCMV – “Minha Casa, Minha Vida” (“My House, My Life”), an initiative of the federal government. “The big trend of the moment, the segment is responsible for nearly 30% of the sector’s sales. We expect even larger growth in market share in 2014, as President Dilma Rousseff announced the third phase of the ‘My Life, My House’ program, which will include more than 3 million new housing units,” comments the Director President. w w w. s o l e t r o l . c o m . b r

soletrol

“The big trend of the moment, the segment is responsible for nearly 30% of the sector’s sales. We expect even larger growth in market share in 2014, as President Dilma Rousseff announced the third phase of the ‘My Life, My House’ program, which will include more than 3 million new housing units” – Soletrol CEO, Luís Augusto Ferrari Mazzon

October 2014

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EXPANSION AND PARTNERSHIPS In addition, the company is significantly increasing its distribution channels and strengthening its participation in the pools segment. “Recently, we signed a partnership agreement with the Israeli firm MAGEN, the world leader in the production of solar collectors for pools. Through this partnership, a factory jointly operated by Magen and Soletrol will be producing this technology in Brazil in less than two years,” he details. In 2013, Soletrol sold 400,000 sq. meters of flat collectors in the domestic market only, which accounts for 97% of the company’s revenues). In 2014, sales are expected to grow by nearly 30%.