Manufacturing Global – November 2019

How UK manufacturers can meet the challenges of Brexit manufacturingglobal.com

NO V E MB E R 2 0 1 9

Manufacturing a circular plastic economy

Aerospace & Construction Companies

THE FUTURE OF MANUFACTURING JUST GOT SMARTER Marko Yli-Pietilä reveals how digitisation programmes are introducing automation and 5G to drive operational efficiency

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FOREWORD

W

elcome to the November issue of Manufacturing Global magazine!

In our cover story this month Stora Enso’s Head of Smart Operations Marko Yli-Pietilä reveals how the innovative Scandinavian packaging company is harnessing automation to optimise overall operational efficiencies (OEE) and support its transformation goals with in-house concept SEEDS (Stora Enso Design System).

Focusing on Industry 4.0, Salesforce General Manager Paul Smith zeroes in on the challenges faced by the sector in the UK & Ireland in closing the digital skills gap. He explains that in order to support a new era of smart manufacturing, learning and development, combined with the deployment of disruptive technologies, will be vital. Smith warns: “The Coalition for a Digital Economy predicts that the UK could see a shortfall of 800,000 digital workers by 2020.”

We also hear from SAS Automotive about its efforts to embrace new technologies capable of increasing

operational performance across its assembly processes. “We want to show that we’re 100% available for our customers at all times,” pledges Freddy Torres, Head of Corporate Operational Excellence. In Africa, we learn how the Nigerian Bottling Company (a subsidiary of Coca-Cola) is creating a sustainable and digitally interconnected supply chain.

Elsewhere in this issue, we get the lowdown from software experts Epicor on how UK manufacturers can meet the challenges posed by Brexit and Oliver Wight EAME’s Birgit Breitschuh offers her advice on how best to implement Integrated Business Planning (IBP).

Do you have a story to tell? Email: daniel.brightmore@bizclikmedia.com to join the conversation with Manufacturing Global.

Enjoy the issue!

Daniel Brightmore, Editor

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CONTENTS

12

32 UK FOCUS: CLOSING THE DIGITAL SKILLS GAP

42 Why connectivity is key for the UK

54 64

Seven tips for successful IBP implementation

AEROSPACE & CONSTRUCTION COMPANIES

80 Events & Associations

84 SAS Automotive Systems

102 Nigerian Bottling Company

120 KEMET Electronics Corporation

138

152

Unilever

TE Connectivity

12

Stora Enso: the future of manufacturing just got smarter WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

MANUEL NAVARRO

NOVEMBER 2019

13

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STORA ENSO

Stora Enso’s digitisation programme is realising the benefits of automation and 5G to optimise efficiency, flexibility, and availability in production

S

tora Enso is among the world’s oldest companies with more than 700 years of heritage, encompassing mining, iron and

wood activities, stretching back to the 13th century.

Today it focuses on all of the possibilities to manu14

facture a diverse range of products made from renewable materials with the forest and the trees as their foundation.

Marko Yli-Pietilä, Head of Smart Operations at Stora Enso, is in charge of driving the digitalisation and transformation programmes allied to global smart operations in all areas of the business: consumer board, bio materials, paper, packaging solutions and wood products. “The Smart Operations team is responsible for accelerating digitalisation in our operations, but that is only one part of Stora Enso’s overall digitalisation programme. We also look at digitalising the customer interface, supply chain digitalisation and back office digitalisation with HR and finance processes,” he says. “In addition to this, we work with the startup community to develop new digital solutions as well NOVEMBER 2019

15

as nurturing our own internal startup initiatives to develop new digital products.” One of those successful solutions is the new retail solution for unmanned retail, which was launched during 2019.

The digitisation of Stora Enso’s manufacturing fleet comprises around 100 production lines across many factories and is vital to achieve higher operational efficiency.

“Operationally, we manufacture a diverse range of wood-based products. We’re also producing many w w w.ma nufa c t uri nggl o b a l. com

— Let’s create the mill of the future With ABB Ability™ Collaborative Operations

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New digital technologies driving peak plant performance — Across all industries, the ABB Ability™ digital offering is well positioned to help our customers on the journey toward more effective uses of massive quantities of data, and toward more autonomous operations that liberate people to focus on their end customers and on process improvements.

ABB Ability™ Collaborative Operations supports a path to this future, offering data-driven decision guidance for a mill’s human operators, a key first step towards more autonomous operations.

ABB is proud to support Stora Enso’s digitalization journey ABB Ability™ Collaborative Operations Designed to unite autonomous digital technologies and decision making, ABB Ability™ Collaborative Operations is built on ABB Ability™, ABB’s unified, cross-industry, digital platform that securely collects data on the health and performance of equipment from onsite smart devices and operation-critical systems.

ABB experts monitor this data remotely while applying advanced data analytics to isolate trends and pinpoint issues. The result is actionable recommendations that address potential problems, advise on preventive maintenance priorities, and illuminate ways to improve performance.

ABB Ability™ Collaborative Operations is a true Industrial Internet of Things application and is part of the company’s portfolio of ABB Ability™ digital solutions. Collaborative Operations provides performance management, remote monitoring and preventive analysis technologies to improve security, efficiency and productivity. ABB Ability™ Collaborative Operations for paper mills identifies and addresses production, quality and cost issues

that can inhibit peak performance. This improves return on capital. In particular, ABB’s solutions are helping to: • Centralize and streamline operations. By applying remote connectivity and analytics to process and equipment data, producers can empower teams in centralized control rooms, which have the automated tools and visualization capabilities to help teams make decisions and process improvements, throughout the mill and also the enterprise.

• Increase energy efficiency. Technologies that enable the alignment of production schedules to energy supply and demand help optimize energy usage according to fluctuating energy costs.

• Achieve safety goals. Using technologies that increasingly automate tasks within the space of rotating and moving machinery reduces the risk of injuries. Meanwhile, remote services and augmented reality can help avoid human contact with live current.

• Reduce costs through advanced process control (APC). Delivering APC using a performance-based approach and business model allows mills to stay ahead of problems and continuously optimize processes to make more with less. This also allows mills to focus improvements on known areas of complexity like the pulp mill and the wet end of the paper machine.

The future, today Whatever the specifics of an operation or solution, ABB is supporting and guiding the pulp and paper industry on its journey toward ever more effective use of digitalization, creating next-level operations and realizing significant cost benefits. With its forward-thinking approach and industry-leading solutions, such as ABB Ability™ Collaborative Operations and ABB Ability™ Advanced Process Control, ABB is ready to be your partner in shaping the future, today.

STORA ENSO

completely new products, such as fiber- based composites,” says Yli-

18

“ The Smart Operations team is responsible for accelerating digitalisation in our operations, but that is only one part of Stora Enso’s overall digitalisation programme. We also look at digitalising the customer interface, supply chain digitalisation and back office digitalisation with HR and finance processes” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

NOVEMBER 2019

Pietilä. “My role is focused on smart operations, which means the digitisation of production and maintenance needed to keep our factories running efficiently also in future.”

Stora Enso started investing in its digitisation programme three years ago and has now completed around 160 different projects including artificial intelligence (AI), augmented reality, machine learning (ML) and virtual reality (VR). “We’ve tested almost all of

CLICK TO WATCH : ‘DRONE WOOD YARD INVENTORY’ 19 the technologies on the Gartner hype

Whatever you need to do in your work

curve,” reveals Yli-Pietilä. “We’re using

here, you can do while on the move.”

big data and examining different kinds

Yli-Pietilä believes people are a hugely

of wearables, including smart glasses.”

important aspect of this transforma-

He adds that analytics is probably the

tion. “They need to learn new skills to

strongest area of focus at present. “We

understand how analytics works and

have company-wide mobile maintenance

be familiar with different mobile tools,

tools available both for maintenance

because there will be many applications

personnel and operators when they do

used in the field, and also in different

maintenance-related tasks. Our peo-

operating rooms. It’s very important

ple can also do safety notifications on

we create a unified user experience to

the move, and we also visualise things

teach users,” he says of the company’s

already in 3D formats. The use of 3D

quest to develop unified UIs.

models makes it’s very easy to under-

To support these transformation

stand where things are happening.

goals the company has created a Stora w w w.ma nufa c t uri nggl o b a l. com

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STORA ENSO

22

Enso design concept called SEEDS

an environment capable of fostering

(Stora Enso Design System). “SEEDS

a collaborative ecosystem. “We aim

is a publicly available set of instructions

to build data assets, like the Stora Enso

and code which enables designers and

IIOT platform, which our partners can

developers to build a user experience

access. In that way we can use the

aligned with Stora Enso requirements,”

same data in the applications they

explains Yli-Pietilä. “The companies we

co-develop with us and deliver to us,”

partner with in the digitalisation area

explains Yli-Pietilä.

can access these assets to help them

Three years on and the success of

develop the services they are deliver-

Stora Enso’s approach is already

ing to us.”

apparent with the company achieving

Stora Enso works with a variety of

second place for ‘Best implementation

partners, from agile startups to larger

of IIoT on the shop floor’ at the 2019

companies, with a focus on creating

Industry of Things World Award. “We

NOVEMBER 2019

are the first company in our industry

Stora Enso’s efforts to achieve key

to have implemented 5G to enable

targets such as “optimising efficiency,

real-time 360° camera solutions in

flexibility, and availability” in production.

our production environment,” says

During the acceleration of its digital

Yli-Pietilä. “This allows experts all over

transformation, Yli-Pietilä reflects on

the world to monitor certain areas

the biggest challenge he and his team

of the production and give guidance

have had to overcome over the past

when needed – ultimately making our

few years. “Handling the massive

production environment more efficient

amount of data we generate in the

and safer.” The 5G solution will support

process industry is always a challenge,”

E XE CU T I VE PRO FI LE

Marko Yli-Pietilä I spent more than a decade at Nokia, in a variety of telecommunications roles and then worked in data management, and data warehousing,” recalls Stora Enso’s Head of Smart Operations, Marko Yli-Pietilä. “This experience was perfect preparation for my role at Stora Enso.” Communication and data will be the cornerstone for the 5G revolution, one that Yli-Pietilä is excited to welcome in with the wealth of opportunities it will provide for efficiency and productivity. “My background helps to understand what you can actually do with the data and how you need to organise the data in order to have it in use in the best possible way. And with my experience in management consulting, I appreciate the value in combining digital assets or data assets, how you use the data across distances, and how you then transform this data into something valuable.” He believes organisations can utilise the new capabilities offered by digital transformation to achieve many business targets including revenue growth, better operational efficiency and improved customer experience management.”

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STORA ENSO

700+

Years of history

€10.49bn Approximate revenue

26,000 24

Number of employees

NOVEMBER 2019

25

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sustain peak performance.

Benchmark your actual process and asset performance data against your expected performance with Honeywell Forge for Industrial, for better decisions that impact reliability, safety and profitability.

For more information, please visit: www.honeywellprocess.com/iiot

he admits. “We’re constantly looking at how we can get the data to be available for these advanced intelligent applications and is why we decided to build a Stora Enso IIoT (Industrial Internet of Things) cloud-based platform. We are using a lot of resources to organise the data in the cloud so that we can have this integrated data asset in use by these applications that we are building in collaboration with different vendors.”

When Stora Enso needs to communicate across operations in real-time this is achieved by the close proximity of its digital tools to the production

“ SEEDS is a publicly available set of instructions and code which enables designers and developers to build a user experience aligned with Stora Enso requirements” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

line. Now, Yli-Pietilä is keen to take things a step further. “We want to predict what will happen in the future, and

reliability. “We want to be able to

we also want to prescribe. We’re trying

advise people to take actions to make

to do prescriptive analytics, not just to

the future look like we want it to look,

tell users what will happen in the future,

with product quality, machine perfor-

but also advise them what they need to

mance, and the reliability of equipment

do to perform in their work in the best

related to the maintenance,” confirms

possible way. We’re building prescrip-

Yli-Pietilä.

tive analytics solutions using AI and

“How we measure the success and

ML, because then you’re not actually

performance of these tools is actually

in real-time — you’re in the future.”

through the business KPIs that we use

Stora Enso already has AI-based

to measure our operational efficiency

applications in use that can see

in general. We start following up those

12 hours into the future with good

business KPIs, so that our digital w w w.ma nufa c t uri nggl o b a l. com

27

STORA ENSO

SU S TA I N A B I L I T Y AT STO R A EN SO

Stora Enso supports all 17 of the United Nations Sustainable Development Goals (SDGs); the following three goals have been identified as the most strategic to the business: SDG 12: The use of renewable materials.

Involvement in the bioeconomy and circular economy.

Innovating to improve resource and material efficiency.

28

SDG 13: Renewable materials are an important part of the carbon cycle. They grow back and keep absorbing carbon dioxide and storing carbon.

Identify and analyse carbon risks and opportunities to establish their financial and non-financial impacts, the likelihood of their occurrence, and their root causes.

Stora Enso the first to set ambitious science-based targets for reducing its greenhouse gas emissions in 2017.

SDG 15: 100% of Stora Enso’s main raw material, wood, comes from sustainably managed forests that grow back.

Safeguarding forest biodiversity.

As wood is its most important raw material, Stora Enso’s key risks cover forest and land use.

NOVEMBER 2019

transformation becomes a normal part of our business development also linked to profit and operations improvement.”

Yli-Pietilä explains how prescriptive tools can help maintain ongoing production quality. “Paper is produced at around 100km per hour and you need to be able to adjust the process in real-time to maintain the quality our customers expect. Those tools require calculation and predictive capabilities for us to be able to advise the operators that are running the machine to do the process changes necessary to keep production at the optimal level for as long as possible.” The company is also considering testing more flexible and intelligent robots, such as exoskeletons, to assist production workers. Elsewhere, testing is underway to examine the potential benefits of audio analytics. “Based on the sounds we are hearing, we’re analysing how machines are running and if there’s any evidence of a potential malfunction in the future,” he explains.

Across its business development the two most important trends for Stora Enso are climate change and sustainability. “After all, we are in the w w w.ma nufa c t uri nggl o b a l. com

29

STORA ENSO

30

business of replacing fossil-based material with materials that are made

“ We’re building prescriptive analytics solutions using AI and ML, because then you’re not actually in real-time — you’re in the future” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso NOVEMBER 2019

out of wood,” says Yli-Pietilä. “We have been transforming our product portfolio for years towards that goal.”

Though in smart operations Yli-Pietilä’s team have focused on the operational efficiencies of the manufacturing fleet, their efforts are still contributing to sustainability targets with energy efficiency for example. “We are very keen to develop our water treatment processes to be more sustainable every day and CO2 is something we

31

are looking at really carefully and how

and availability of the machinery

we can bring those numbers down to

because by increasing the automation

contribute positively to our climate

level we can then affect these key KPIs

change targets,” he confirms.

positively. While we’re doing this, it

With automation levels in its mills

automatically makes the workplace

already high, Stora Enso aims to raise

safer every day.” With automation on

automation levels further while making

the rise, Yli-Pietilä believes the concept

work safer. “If we can automate more of

of ‘dark mills’ is firmly on the agenda

the potentially dangerous operations,

for helping to build a sustainable future.

we will also be increasing our overall

Digitisation has unlocked the door;

operational efficiencies (OEE),” adds

Stora Enso is taking steps to shape the

Yli-Pietilä. “OEE is our most important

corridor beyond.

KPI when it comes to operations. We will then look at performance, quality, w w w.ma nufa c t uri nggl o b a l. com

INDUSTRY 4.0

32

UK FOCUS: CLOSING THE DIGITAL SKILLS GAP Learning and development, combined with an open-minded approach to disruptive technologies, will usher in a new era of smart manufacturing argues Paul Smith, Executive Vice President & General Manager, UK & Ireland at Salesforce WRITTEN BY

PAUL SMITH

NOVEMBER 2019

33

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INDUSTRY 4.0

A

cross the UK, the manufacturing industry is in transition. Given the current geopolitical events surrounding

the UK economy, it’s an uncertain time. Not least within the manufacturing sector which is under immense pressure, having recently fallen in the global ranks when it comes to total output.

But times of high-pressure often bring the best innovation. An open-mindedness to disrupt.

Today, new technologies such as AI, blockchain, IoT and 3D printing are totally upending traditional 34

business models and working practices; transforming the operations, processes, and energy footprint of factories, as well as the management of supply chains. A new era of smart manufacturing is underway.

But technology is only half the story. Access to skilled workers is set to become one of the most critical factors that sets successful companies apart from failing ones. In an increasingly data-driven future, the Coalition for a Digital Economy predicts that the UK could see a shortfall of 800,000 digital workers by 2020.

To succeed, manufacturers need digital skills and mindsets within the business. For example, people who are familiar with collecting, consolidating and analysing the huge volume of data being generated 24/7 by factory floor NOVEMBER 2019

35

“ Access to skilled workers is set to become one of the most critical factors that sets successful companies apart from failing ones�

Paul Smith, Executive Vice President & General Manager, UK & Ireland, Salesforce

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INDUSTRY 4.0

36

CLICK TO WATCH : ‘TRAILHEAD KEYNOTE: REINVENT LEARNING AND ENABLEMENT’

machines and enterprise systems.

research here at Salesforce, over half

It needs people who are comfortable

of UK workers believe that lifelong

with technology and disruption.

digital learning is essential to their

As manufacturing businesses evolve

career prospects. 75% believe coding

from being producers of products

and data analytics skills, for example,

to providers of services, how do we

have a shelf-life of less than five years,

ensure that employees are equipped

making continual retraining essential.

with the right skills? What are the

But here’s the wake-up call: over half

opportunities for employees to reskill

of workers are looking to employers to

in the sector?

help them reskill. That means it’s essential for manufacturers to step up and

AN ERA OF LIFELONG LEARNING

collaborate with partners to provide

Gone are the days when education

employees with the skills they will need.

finished at the school gate. In fact, according to our own commissioned NOVEMBER 2019

That’s where Trailhead – our own free online learning platform which

helps people gain the skills that they

USING TECH TO CREATE OPPORTUNITIES

need for jobs in the digital economy –

While technology is the biggest

can support. It empowers everyone to

enabler of the Fourth Industrial

learn in-demand technology skills for

Revolution, people are the largest

free online. For manufacturing, this

driver. Smart manufacturing will create

could include data management or app

new and different types of jobs in

development; digital skills aligned to

fields such as data analytics as well

the future of the industry.

as the need for quality control and

Whether it’s adapting to working effectively alongside AI and

technology maintenance.

Already, forward-thinking

automation or learning to build the

manufacturers are using technology

mobile-first apps customers now

to create new “direct to consumer”

expect, the Fourth Industrial Revolution

business models with a focus on

demands a transformation in skills as

customer service to deliver a

well as technology.

differentiated customer experience.

A B O UT T HE AU T HO R

Paul Smith Paul Smith is the Executive Vice President & General Manager, UK & Ireland at Salesforce. As General Manager, he is responsible for leading the company’s growth and business strategy in the UK. Paul first joined Salesforce in 2012 and has held leadership roles across Salesforce’s Marketing Cloud and Cloud Sales teams in EMEA. Prior to joining Salesforce, Paul spent more than 20 years in the digital media and tech industries, with global companies such as P&G and Microsoft as well as growing startups including Techlightenment. Based on his extensive digital experience, Paul is often sought to speak at industry conferences and events, where he shares how brands can leverage technology and data to build better relationships with their customers.

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INDUSTRY 4.0

It’s no longer enough for manufacturers to simply make a product. Internet of things (IoT) technology that collects and transmits data means they’re empowered - and increasingly, expected - to proactively maintain that product across its lifecycle.

Jet engine makers now get data on those engines before, during and after every flight - and can use that data to optimise performance and spot and preemptively solve issues.

Manufacturers are now offering 38

services to customers, not just products. In reality, jet engine manufacturers today are in the business of selling engine uptime, not the engines themselves.

This focus on customer service is one of the fundamental shifts for the sector. The main advantage of switching to a service-led approach is that it gives manufacturers the ability to have longer-lasting, more meaningful relationships beyond production.

As manufacturers find new channels to interact with customers and add value beyond the product, they will begin to build credibility, trust and advocacy.

Manufacturing businesses often NOVEMBER 2019

“ As manufacturing organisations become providers ofservices rather than makers of products, they need to digitise and transform culturally” Paul Smith, Executive Vice President & General Manager, UK & Ireland, Salesforce

have complex physical operations that

between front and back office and

can’t be easily modified to meet

empowering sales, manufacturing and

changing customer needs. This means

operations to align.

scaling up to fulfill new orders which can be both expensive and time

WHAT DOES THE FUTURE HOLD?

consuming without the visibility that

Many forward-thinking manufacturers

allows them to predict demand. Poor

are already embracing the opportunities

planning has a flow-on effect for sales

of the Fourth Industrial Revolution, but

and account management teams who

that comes with its inherent challenges.

are on the front line of managing

As manufacturing organisations

customer expectations. With intelligent

become providers of services rather

forecasting, Salesforce Manufacturing

than makers of products, they need to

Cloud enables accurate future sales

digitise and transform culturally. These

predictions, breaking down the silos

processes take an investment of time and resources.

Moreover, they need a workforce with the right skills to carry out this transformation. With workers looking to employers to help them reskill, it’s essential manufacturers realise that there is a responsibility which sits with them: to prepare employees for a changing workplace and the new opportunities it brings.

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Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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D I G I TA L F A C T O R Y

Why connectivity is key for the UK 42

MARK HUGHES, REGIONAL VP FOR UK & IRELAND AT EPICOR, DISCUSSES SURMOUNTING THE CHALLENGES POSED BY BREXIT FOR UK MANUFACTURING AND THE OPPORTUNITIES TO BE EMBRACED BY ACHIEVING A CONNECTED ENTERPRISE THROUGH DIGITAL TRANSFORMATION WRITTEN BY

DAN BRIGHT MORE

NOVEMBER 2019

43

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D I G I TA L F A C T O R Y

44

E

picor’s roots go back to the

Mark Hughes, Regional VP for UK &

early 1970s when, in previous

Ireland at Epicor, believes that the

iterations, the company began

efficiencies technology can bring to

developing software for job shop

manufacturers are critical and its

manufacturers. Fundamentally

where Epicor aims to be at the

focused on delivering industry specific

cutting-edge with functionality.

core solutions for manufacturing,

“Deployment methods, cloud, SaaS, all

Epicor was founded in 1999. Where

of these things are becoming more

there is a customer demand - typically

relevant,” he says. “Whether we call it

with lower volume, higher value types

industry 4.0, the Internet of Things

of businesses - Epicor’s offering

(IoT) or simply connectivity, it’s about

supports manufacturers of Configure

taking technology and enabling a

to Order (CTO) and made for demand

business to get value out of that. The

products.

big thing we’re seeing at the moment is

NOVEMBER 2019

45

interoperability between the shop floor

does,” he advises. “Increasingly, a

and supply chain. The ability to take

younger workforce expect tools and

data from anywhere in your extended

systems to behave in the way we’re

enterprise, and transform that into

accustomed to with apps on smart-

something that helps you react quicker

phones. It’s that user experience

and satisfy more customers by making

approach we’re adopting at Epicor.

better decisions.”

Achieving user adoption and making

Hughes warns against the dangers of being seduced by the latest “shiny new things” which can create an

the tools easy to use is critical, and technology aids that.”

The challenge for widespread digital

unwanted layer of complexity rather

transformation in the manufacturing

than adding real value. “Whatever ERP

industries, from automotive to food and

product you’re using has to fundamen-

beverage, is a deeper one than that

tally behave in a way that your business

faced by service industries with a w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

“ Whatever ERP product you’re using has to fundamentally behave in a way that your business does” 46

— Mark Hughes, Regional VP for UK & Ireland, Epicor

virtual business model. “Manufacturing tends to have a shop floor with tools and machinery,” notes Hughes. “It’s why these customers are more comfortable with physical servers and are less driven to move to the cloud.

Hence the need to offer choice with hybrid solutions that can start on premise and move to the cloud where required.”

Hughes sees the hybrid-type model offering flexible solutions for manufacturers. “You can do real-time data capture physically on the shop floor, analyse it and at the same time that data can be passed up into the Azure cloud. Combin-

London Electric Cars © NOVEMBER 2019

CLICK TO WATCH : ‘FUTURE LOOK: HOW MANUFACTURERS CAN USE AI TO STREAMLINE THE FACTORY FLOOR’ 47 ing this with other data being processed

London Taxi) is another Epicor customer

means another level of analysis can be

in the throes of business transforma-

achieved. It’s not only hybrid in terms of

tion by applying technology to the

taking particular pieces of capability or

manufacture of its new, cleaner vehicles.

functionality, and choosing where they

Ultimately, whether its fully connected

sit, but it’s actually about levels and layers

or mechanical sensors used for local

within what you do, and using that

analysis, Hughes believes it’s all about

differently.” Epicor’s customers are

what adds value and giving companies

embracing this approach. Dutch fine

the opportunity to do more for less

metalworking company, Boers, utilises

and de-risk.

a shop floor where every piece of

Preparing for risk is a big focus for

equipment is IoT enabled (see video)

UK manufacturers operating under the

and drone are even used for stocktaking.

looming spectre of Brexit. “Uncertainty

Elsewhere, London Electric Vehicles

always offers opportunity if you’re

(formerly known as black cab company

geared up to take it,” says Hughes. w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

1972

Year founded

$900mn Revenue in 2016

3,900 Number of employees

48

origins of goods, whether it’s a hard or soft Brexit, is going to lead to the necessity to be able to provide a lot more information about how goods have been created. Many Epicor customers are familiar with offering high levels of traceability throughout their products, whether that’s serial numbers of electronic components or down to what field a potato was grown in that ended up in a bag of crisps. The ability to quickly adapt to changing reporting requirements is going to be critical.”

Allied to this, growing issues with the movement and reduced availability of

“For food manufacturers there’s a great

labour is having an impact that is

opportunity to embrace the made in

changing the way companies do

Britain concept. We’ve got some very

business. “Going forward it’s important

successful customers, such as Ian

for Epicor that everyone we choose to

Macleod whisky distillers, doing just

work or partner with has a similar global

that and sourcing local ingredients

model,” says Hughes, who believes that

to make unique local products.”

spread of capabilities maintaining the

It’s a different story for companies reliant on extended supply chains

ability to service customers will be vital.

Many UK manufacturers have

across borders. “They’ve got huge

excelled when it comes to design and

problems to overcome,” reckons

prototyping at the front end, but Hughes

Hughes. “We’re seeing customers

believes there’s an opportunity to

stockpiling raw materials and compo-

improve production processes via

nents. From a systems perspective,

automation. “How do we join the two

being able to identify and declare

up?” customers are asking Hughes.

NOVEMBER 2019

49

“Achieving user adoption and making the tools easy to use is critical, and technology aids that” — Mark Hughes, Regional VP for UK & Ireland, Epicor

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D I G I TA L F A C T O R Y

50

CLICK TO WATCH : ‘BOERS & CO FINEMETALWORKING GROUP CUSTOMER SUCCESS VIDEO’

“Achieving user adoption and making the tools easy to use is critical, and technology aids that” — Mark Hughes, Regional VP for UK & Ireland, Epicor

NOVEMBER 2019

R I S E O F T HE CO BO T S

Recent research indicates that rather than being worried about job losses, industrial workers are in fact ready and willing to embrace robot co-workers.

A Global Growth Index report commissioned by Epicor in 2018 found that 41% of young people want the opportunity to work with the latest innovations, while 33% of millennials want to be at the cutting edge of new developments.

Robot co-workers can also help relieve a strained workforce from manual or difficult tasks freeing up human workers to undertake the more creative, or profit-driving, aspects of their roles. Using this new-found time, staff are able to focus on new ideas, innovations and higher-value work for the business including business strategy, advanced analysis, and creative thinking. More time spent on these tasks will help boost revenues, enabling

companies to invest further in employees so that additional business benefits can be realised.

Investing in robot co-workers can also help alleviate the uncertain, tumultuous times that UK manufacturers currently operate within. Cobots could help generate major benefits for UK productivity — which, according to the Office for National Statistics, currently lags more than 20% behind the US, France, and Germany.

In the UK, an astonishing 90% of finishing work is still done by hand. Yet research by the collaborative Symplexity project indicates that robots could shift the balance to about 20%, with the remainder being completed by robots under human supervision. This would unlock massive productivity benefits for manufacturers.

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51

D I G I TA L F A C T O R Y

“ Going forward it’s important for Epicor that everyone we choose to work or partner with has a similar global model” — Mark Hughes, Regional VP for UK & Ireland, Epicor 52

“A lot of them are also looking to get

Hughes highlights that the UK has

technology across the supply chain,

been relatively slow to adopt technolo-

making it more robust with much better

gies such as automation. “There is

levels of communication and visibility.”

catching up to do across the board

Hughes also notes the prevalence

to keep up with industries like aero-

of the “Amazon effect” in B2B leading

space and automotive.” He believes

to customers demanding reduced

the best progress can be achieved

lead times even with Configure to

with automation in bite sized chunks.

Order custom products. “It’s why many

“For some of our customers, that’s

of our clients are looking for technol-

as simple as putting mechanical

ogy to help them make better predic-

sensors on devices to count the

tions about what their customers are

number of cycles a machine goes

going to want so they can satisfy

through to then start looking at simple

demand quicker.”

automated handling. For others, that’s

NOVEMBER 2019

53

right through to the use of fully

“Some weeks I’m visiting five different UK

automated cobots.”

manufacturers,” reveals Hughes. “We’re

Hughes speaks to UK customers

seeing them go through significant

building new factories with connectivity

business transformation projects. To

in mind from the outset. “They’re thinking

be able to bring my 25 years of experi-

about which areas, from IoT to automa-

ence in and around software for

tion, that will make them more efficient

manufacturers, and share that knowl-

and add real value going forward,” he

edge to help them use technology to

says. Meanwhile, Epicor is doing its part

make their businesses future proof

to encourage collaboration on the key

really excites me.”

issues facing manufacturers by inviting customers to participate on advisory boards which will shape the future of their products, and the industry itself. w w w.ma nufa c t uri nggl o b a l. com

PEOPLE & SKILLS

54

SEVEN TIPS FOR SUCCESSFUL IBP IMPLEMENTATION Find out if your organisation is approaching advanced Sales & Operation Planning (S&OP) the right way WRITTEN BY

BIRGIT BREIT SCHUH

NOVEMBER 2019

55

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PEOPLE & SKILLS

I

n a recent cross-industry survey* (conducted by Oliver Wight EAME of over 500 Directors, Supply Chain Managers and

Process Leaders),

75% of respondents said they believed either ‘forecast accuracy’, ‘inventory reduction’, ‘cost reduction’ or ‘perfect order’ is the primary benefit of Integrated Business Planning (IBP).

This is a massive underestimation of the true potential of IBP. Its real purpose is to ensure your business achieves sustainable, revenue and margin growth; to sell more, more profitably.

So, why are so many organisations getting 56

it so wrong? From my experience, it’s either because organisations are setting their ambitions too low, or are failing to implement IBP correctly so they fall short of realising its full benefit – or both.

To win big, you have to think big. Here are seven key tips to ensure your IBP implementation gives you the best possible return on investment.

1. THE IBP PROCESS IS OWNED BY THE CEO The CEO is the ultimate decision-maker for the organisation, so they must be the driving force behind IBP. CEOs are, or should be, responsible for setting the organisation’s strategy, articulating it through business objectives to deliver the company goals NOVEMBER 2019

and it’s IBP which enables the deployment of the business strategy. So, by definition, the CEO must own and lead the IBP process.

In this way, the CEO enables IBP to become accepted at all levels in the business, to gain momentum and eventually become the way the organisation operates.

2. THE DEMAND PLAN BELONGS TO SALES & MARKETING Having a good understanding of what generates customer and consumer demand is the key component to developing a reliable demand plan. Consequently, those who are closest to the customer and have the greatest understanding of activity at the point of consumption, must take ownership of the demand plan; this has to be the sales and marketing teams. Demand planning is more than simply producing a ‘forecast’.

Many key business decisions are driven from what we believe we will sell. Organisations need a fully integrated demand planning process, with multiple inputs based on both volume and value, driven by demand analytics and market insights.

3. FINANCE IS FULLY INTEGRATED A key differentiator of IBP is the integration of financial plans throughout the process. w w w.ma nufa c t uri nggl o b a l. com

57

PEOPLE & SKILLS

The active participation of the finance team in the monthly IBP reviews, contributing as ‘key business partners’ to the real-time testing of different scenarios and adjusting plans accordingly, safeguards the integrity of financial projections.

As finance collaborates with its business partners and the facilitators of each of the IBP core elements of demand product and supply, greater value is delivered to the organisation, through the improved development and critique of plans at each review and the

58

financial extrapolation. The outcome becomes a company-wide focus on financial gap identification and closure, and continuous re-planning and re-optimisation.

“LOOKING AT THE BIGGER PICTURE FACILITATES THE FORWARD-PLANNING ESSENTIAL FOR BUILDING GROWTH AND INCREASING MARGIN” — Birgit Breitschuh, Partner, Oliver Wight EAME NOVEMBER 2019

CLICK TO WATCH : ‘OLIVER WIGHT 50TH ANNIVERSARY CELEBRATIONS’ 59

4. PRODUCT PORTFOLIO MANAGEMENT HAS ITS OWN DEDICATED REVIEW IN THE IBP PROCESS

the new, whilst phasing out the old.

Naturally, this can play a crucial role in closing future performance gaps.

Historically, in the days of S&OP, Portfolio Management (PPM) as part of

5. IBP ALIGNS THE BUSINESS TO THE STRATEGIC GROWTH PLANS

the demand review. This is a mistake.

IBP is the process which connects the

It needs to be treated as separate part

strategy to the business plan and

of the overall IBP process, because

ensures the delivery of both, providing

successful PPM results in growth in

the foundation for effective decision-

sales and profit through product and

making to deliver future growth.

service innovation. The most competi-

However, organisations often incorrect-

tive organisations promote a culture of

ly use IBP as a meeting-the-annual-

continuously introducing superior prod-

budget process, rather than using it to

ucts and services to market, introducing

look out over a 24 to 36-month horizon.

organisations included Product

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PEOPLE & SKILLS

This misguided focus on meeting the an-

6. ASSUMPTIONS DRIVE THE NUMBERS

nual budget, creates ‘end-of-year-myo-

There is a golden rule in a successful

pia’. It is impossible to plan effectively for

IBP process: “There is only one set of

the future if you’re not looking beyond

numbers.” Without belief and agree-

the end of the financial year. In fact,

ment in the numbers across depart-

successfully implemented IBP will

ments and up through the organisation,

naturally negate the annual budgeting

businesses can’t start to make

exercise, replacing it with a continuous-

informed decisions.

ly updated two, or three-year financial plan. Allocating resources to satisfy just the short-term is not only detrimental to long-term growth and profit, but also 60

There is a simple three-step process in creating one set of numbers: 1. Agree on the basic assumptions

ultimately compromises the strategic

behind the numbers e.g. disposable

ambitions of the business.

income growth, shopper habit trends,

NOVEMBER 2019

“WITHOUT BELIEF AND AGREEMENT IN THE NUMBERS ACROSS DEPARTMENTS AND UP THROUGH THE ORGANISATION, BUSINESSES CAN’T START TO MAKE INFORMED DECISIONS” — Birgit Breitschuh, Partner, Oliver Wight EAME

E XE CU T I VE PRO FI LE

61

Birgit Breitschuh Breitschuh is a partner at Oliver Wight EAME. She has developed real expertise in both innovation and supply chain management in a career that spans two decades working for major FMCG companies, Unilever, Kraft and Wrigley (Mars). Breitschuh believes personal engagement at all levels of an organisation is key to success. As an Oliver Wight Partner, Birgit draws on an extensive background in change management to deliver optimal performance for an array of organisations. She emphasises the importance of high quality internal communications, ensuring each employee understands the company’s long-term strategy and their individual role in achieving it. Breitschuh is engaged with a broad range of industries including pharmaceuticals, FMCG, and tier 1 and tier 2 suppliers of major manufacturers and service providers.

Combining her industry experience with multilingual skills, Breitschuh is able to initiate change management across a variety of international markets and businesses.

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PEOPLE & SKILLS

“IBP IS THE PROCESS WHICH CONNECTS THE STRATEGY TO THE BUSINESS PLAN AND ENSURES THE DELIVERY OF BOTH, PROVIDING THE FOUNDATION FOR EFFECTIVE DECISION-MAKING TO DELIVER FUTURE GROWTH” — Birgit Breitschuh, Partner, Oliver Wight EAME

62

product versus distribution brand trends, market prices etc.

2. Agree the values (percentage, numbers) in the assumptions.

3. Agree on the effect the assumptions have on the numbers.

Driving understanding of step three is especially key, so that correlations are not only identified more quickly, but the people can articulate which assumption has changed if the planned numbers need to be adjusted. Get this right, and it enables the decision-making crucial to achieving growth in sales and profit.

NOVEMBER 2019

7. DON’T GET CAUGHT UP IN THE DETAILS IBP thinking is ‘roughly right, rather than precisely wrong’! Many organisations make the mistake of expending extensive efforts on drilling down into the detail, trying to determine precisely what is not going to happen in the coming months and years as opposed to focusing on the overall longer-term view. Not only is this a waste of resources, but getting bogged down in the detail is a barrier to extending the horizon beyond the short-term and breaking away from the ‘annual budget’ way of thinking. Looking at the bigger picture facilitates the forward-planning essential for building growth and increasing margin.

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64

Aerospace & Construction Companies Manufacturing Global counts down the top 10 aerospace and defence companies f lying high in this year’s Fortune Global 500 WRITTEN BY

DAN BRIGHTMORE

NOVEMBER 2019

65

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T O P 10

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10

China South Industries Group $37.8mn

Dropping 125 places to 367th on this year’s list, China South Industries Group Corporation’s (CSGC) revenues were down 24.3%.

Founded in 1999, the state-owned, Beijing-based corporation pledged to take on the “divine mission of army protection and allegiance to country, strengthening enterprise and enriching people.”

Also the parent company of Changan Automobile, it manufacturers a diverse range of products, including; cars, motorbikes, vehicle components, optical-electronic products firearms and solar panels in its new energy range.

NOVEMBER 2019

67

09

General Dynamics $36.1mn

General Dynamics is made up of five business groups; aerospace, combat systems, information technology, mission systems and marine systems. The groups manufacture some of the world’s most technologically advanced business jets, wheeled combat vehicles, command and control systems and nuclear submarines. Its subsidiary Gulfstream Aerospace Corporation is working on an order from the National Oceanic and Atmospheric Administration, while the parent company has won a $1.6bn contract with the US Navy. Flying up the rankings by 40 places to 343rd in the Fortune 500, the fifth-largest US defence contractor boosted its revenues by 16.9%.

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T O P 10

08

China Aerospace Science & Technology

$37.7mn

Originating from the Fifth Academy of the Ministry of National Defense in 1956, China Aerospace Science & Technology (CASC) was founded in 1999 when the Seventh Ministry of Machinery Industry, the Ministry of Astronautics, the Ministry of Aerospace Industry, and China Aerospace Corporation were brought together. CASC specialises in satellite applications, information technology, new energy and space tech applications. Revenues for 2018 were up 10.1% seeing the company rise 12 places in the 500, now ranked in 323rd position.

69

07

China Aerospace Science & Industry

$37.8mn

China Aerospace Science & Industry (CASIC) upholds “the solemn mission of empowering the army with science and technology and serves the nation with aerospace technology”. Having manufactured a range of products including auto parts and accessories, CASIC is also China’s biggest developer of air defences such as missile weapon systems. Rising 24 places to 322nd in Fortune’s list this year, CASIC revenues rose by 11.1%.

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T O P 10

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06

Lockheed Martin $53.7mn

Moving up three places in this year’s list to 197th, Lockheed Martin’s revenues increased by 5.3%. Headquartered in Maryland, US, this global security and aerospace company employs approximately 105,000 people worldwide and is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The company recently celebrated 35 years of operation in Greenville, South Carolina where its facility provides nose-to-tail aircraft sustainment services, such as maintenance, modification, repair and overhaul, and is the new home of the F-16 Fighting Falcon production line.

NOVEMBER 2019

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05

Aviation Industry Corp. of China $65.5mn

Jumping 10 places in the latest Fortune list, Aviation Industry Corp. of China (AVIC) is now ranked in 151st place, while its revenues are up 10.6%. Employing more than half a million people, AVIC has 30 subsidiaries, eight of which are listed in Hong Kong and overseas.

The genesis of the corporation goes back to the establishment of the Ministry of Heavy Industry’s Bureau of Aviation in 1951. AVIC manufactures fighter planes, passenger aircraft, civil helicopters and commercial road transportation.

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T O P 10

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04

United Technologies $66.5mn

This year United Technologies’ revenues were up 11.1%, rising 11 places to 148th in the Global 500. Subsidiary Collins Aerospace worked on the Apollo 11 moon landing and today it operates across 300 sites globally with 73,000 employees providing systems and components used by nearly all aircraft currently in use. Elsewhere, subsidiary Pratt & Whitney are behind major advances for commercial and military aircraft also designing, manufacturing and servicing engines, auxiliary and ground power units. United Technologies reported second quarter sales of $19.6bn this year, up 18% year on year, including 6% organic growth.

NOVEMBER 2019

73

03

China North Industries Group $68.7mn

Headquartered from Beijing, China Railway Construction’s (Norinco) revenues rose by 6.4% in 2018, while its Fortune ranking remained in 140th position. Established in 1980, and among China’s 500 largest state-owned enterprises, Norinco produces an array of munitions and armoury - including rocket launchers - alongside combat vehicles, such as tanks and jeeps, military aircraft and unmanned aerial vehicles.

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T O P 10

02

Airbus $75.1mn

Dropping 18 places to 123rd in this year’s Global 500, revenues at Airbus (formed in 1970) have remained steady, only falling by 0.1%.

Alongside its collaboration with Siemens and Rolls Royce, the European multinational recently announced a partnership with Scandinavian Airlines (SAS) with the purpose of researching the hybrid and electric aircraft of the future and also confirmed an order of 300 jets from China in a deal worth $34bn.

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NOVEMBER 2019

CLICK TO WATCH : ‘IN THE MAKING: FIRST #A320NEO TO JETSMART’ 75

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T O P 10

Boeing $101.1mn

Ascending to the top of the list of aerospace and defence manufacturers on this year’s Fortune Global 500, Boeing has slipped just four places, now ranked 68th. Revenues have ramped by 8.3% driven by the 2017 sale of 36 F-15QA jets to Qatar for $12bn and the subsequent air crew training contract signed recently for $500mn. The world’s largest aerospace company took to the skies in 1916 and is driven by the mantra: ‘Build Something Better’.

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NOVEMBER 2019

CLICK TO WATCH : ‘BOEING 777 TAKE OFF FROM SINGAPORE’ 77

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29 - 30 January, 2020 | Hotel Palace, Berlin

Be Inspired – Our Featu

Curtis Carson

Head of Engineering Process, Methods, & Performance

130

John Vermeer

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Heiko Witte

Head of Engineering Improvement

Smart Manufacturing Leaders joining us in Berlin

45

Paul Mairl

Chief Digital Officer

Thought Leadin Pioneering Indu

Save 15% on your ticket when you use the code MANG

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hours of Invaluable Networking Time Over 2 Interactive Days

GLOBAL20 | www.manufacturing.wbresearch.com

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY WILLIAM SMITH from around the world

4–7 NOV 2019

AME International Conference 2019 80

[ CHICAGO, USA ] The Association for Manufacturing Excellence is the world’s largest annual lean conference. Conference Chair Greg MacDougall is excited for this year’s edition: “What sets the AME International Conference apart is that it is designed by continuous improvement practitioners who have a keen understanding of what it takes to practice lean - whether you do so in manufacturing, health care, government or another industry. For 35 years, AME has brought together the best lean minds to share, learn and grow through keynotes, practitioner-topractitioner networking, conference sessions and best practice facility tours.”

Key themes for 2019 include, committing to lean ideas and the lessons learned from diverse organisations and industries, and leading people with outsidethe-box thinking that develops and empowers individuals in order to create a collaborative environment. The keynote speakers exploring these approaches and much more include Nigel Thurlow, Chief of Agile at Toyota Connected and Senta Taylor, Vice President Operations & Strategic Planning at RBC.

AUGUST 2019

7-8 NOV 2019

Industry of Things World USA East [ BOSTON, USA ] Bringing together those playing a leading role in the development

12-14 NOV 2019

of the Industrial Internet of Things

Field Service Asia

(IIoT), Industry of Things World

[ SENTOSA, SINGAPORE ]

USA East returns for it second edi-

Returning for a third year, Field Service

tion to challenge current thinking

Asia provides a forum for over 180 cross-

and unveil the latest innovations.

industry service, support and customer

The event will cover the full scope of

care leaders to nurture world-class ser-

IoT implementation strategies from

vice and support operations. Gain insight

market leaders while analysing the

on early IoT concepts and AI from over

latest disruptive technologies ena-

60 experts representing Dell Technolo-

bling IoT for your business. Learn

gies, Hiab, Telstra, Terumo, Lenovo, Fuji

from over 80 inspiring speakers on

Xerox, Canon, Petronas and many more.

a range of topics building the best

Interactive sessions offer a platform to

strategies for scalable, secure and

work through specific pain points to help

efficient IoT, including: AI, data pro-

you improve your operations. Speakers

cessing and cognitive manufacturing;

include Christine Joussement, Head of

asset management and predictive

Customer Excellence, APAC at Fuji,

maintenance; automation; indus-

Xerox; Sunil Joglekar, Head of Network

trial cyber security and ICS; M2M;

Support & Customer Acquisition at Tata

interoperability and smart supply

Power and Jimmy Auw, Head of Service

chain technology/Logistics 4.0.

Operations, Central APAC at Lenovo.

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EVENTS & A S S O C I AT I O N S

12–14 NOV 2019

Digital Manufacturing Week [ LIVERPOOL, UNITED KINGDOM ]

82

13–14 NOV 2019

Smart Factory Expo [ LIVERPOOL, UNITED KINGDOM ] The Smart Factory Expo (in conjunc-

Digital Manufacturing Week benefits

tion with Digital Manufacturing Week)

from the support and guidance of senior

bills itself as Europe’s best digital

manufacturing executives from across

manufacturing show. This year’s

the industrial landscape. The Advisory

exhibitors (including Autodesk, Dell

Board includes De La Rue’s Advanced

Technologies and the Department

Manufacturing Engineering & Technical

for International Trade) showcase the

Director Alan Newman, Jaguar Land

transformational technologies and

Rover’s Business Transformation Direc-

initiatives that will give your business

tor Andrew Leask and Laing O’Rourke’s

that crucial competitive advantage.

Senior Software Architect Sabine Mavin.

Some of Manufacturing’s biggest

Learn how to drive innovation, which

influencers will share game-changing

technologies to deploy and where your

insights at a series of fringe events

business should head to next at the

linked with Digital Manufacturing

Manufacturing Leader’s Summit featur-

Week; these include the Industry

ing 12 keynotes and 32 discussion

4.0 Masterclass and The Business

groups driving peer-to-peer learning.

Benefits of Additive Manufacturing.

The Operational Excellence Academy

Meanwhile, events across the eight

will focus on how your continuous

solutions theatres will examine the

improvement can adapt to digital trans-

ways digital can add value to your

formation and you can learn how to

processes with further insight from

attract and develop the best talent at

the University of Cambridge’s Institute

the People & Skills Summit.

for Manufacturing.

AUGUST 2019

18–20 NOV 2019

Operational Excellence & Risk Management Summit 2019

83

[ LONDON, UNITED KINGDOM ] The Operational Excellence & Risk Management Summit is Europe’s only event dedicated to operational excellence in hazardous industries. This executivelevel conference brings together over 150 business leaders from manufacturing, energy, chemicals, resources, transportation and more – all industries facing high levels of operational risk. More than 40 industry-leaders will offer their insight on a range of topics, sharing how to: assess and improve your company’s safety culture; harness big data, analytics and AI to accelerate operational excellence and dramatically reduce operational risk; benchmark your systems, culture and processes against the characteristics of High Reliability Organisations (HROs) and manage change - without compromising business performance.

Key themes for 2019 include environmental excellence, RPA, AI & Machine Learning and change management.

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EMBRACING D IN MANUFACT

NOVEMBER 2019

DIGITISATION TURING WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

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85

SAS AUTOMOTIVE SYSTEMS

With the manufacturing industry changing, Freddy Torres, Head of Corporate Operational Excellence at SAS Automotive Systems, discusses how his firm is utilising technology to advance operations

86

W

ith the manufacturing industry undergoing the fourth industrial revolution (industry 4.0), businesses worldwide are seeking

how new technology such as artificial intelligence (AI) and machine learning (ML) can be leveraged to accelerate operations.

In the case of SAS Automotive Systems, Freddy Torres, Head of Corporate Operational Excellence, affirms how important digitisation has become as his company seeks to embrace new technology, particularly in its assembly process. “We’re always looking at how we can improve our assembly process and seek a solution which will enable us to increase our operational performance and find a way to create real more value in our operations,” says Torres. SAS employs approximately 4,300 people worldwide and produces around 5.2mn cockpits annually. Operating as a joint

NOVEMBER 2019

87

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SAS AUTOMOTIVE SYSTEMS

88

venture between two market lead-

increasing the robustness and capa-

ers, Continental and Faurecia, SAS

bilities of our tightening process,”

conducts operations from 21 locations

explains Torres. “Many companies

worldwide. Sound technical knowledge

collect this kind of information mainly

and strict quality standards form the

for traceability and process control. As

basis of the firm’s efficient processes

you understand more about the pro-

and reliable services.

cess by analysing its behaviour, more

As part of its digitisation journey,

effective improvement actions can be

SAS is making its first steps in taking

taken to accelerate its capability and

advantage of the actual Data Lake in

product quality which reduces opera-

order to create more value. “We deal

tional risk.” To amplify this, SAS has

with several safeties critical com-

successfully trialled three examples in

ponents so it’s important to continue

its digitisation journey so far featuring

NOVEMBER 2019

CLICK TO WATCH : ‘SAS AUTOMOTIVE SYSTEMS HD’

its paperless approach, 3D printer for

he lived for 10 years, Torres’ first role

tooling and web-applications such as

was as a research and development

“Truck Arrival” reducing waste in its

engineer in Okegawa, Japan, before

operations. “We are proud of having

moving onto work as a quality engineer

internally developed an electronic-

prior to leaving for Germany in 2011.

paper solution that adapt to our needs,”

Torres reflects on his unique begin-

he says. “This will enable us to keep

ning and believes the life experience

reducing our carbon footprint as we

acted as a springboard for where

deploy the technology in our plants.”

he is today. “That’s where I learnt my

It’s fair to say that Torres experi-

craft,” affirms Torres. “I was the only

enced a different start to his career

foreigner working at my former com-

from competitors in the field. Having

pany in one of two plants located in

begun his journey in Japan, where

Yamagata Prefecture, Japan; I really felt w w w.ma nufa c t uri nggl o b a l. com

89

Top Top10 10 Strategy Strategy Execution Execution trends trends 0101 Strategic Strategicexecution execution TheThe CXO demand a platform to to enable strategy CXO demand a platform enable strategy execution to be managed with the same disciplineasas dailybusiness. business. execution to be managed with the same discipline daily

0303

0202

04 04

05 05

Dedicated Dedicated platform platform

Data security Data security and reliability and reliability

dedicatedstrategy strategy AAdedicated execution C-suite execution C-suite

Specialised consulting firms Specialised consulting firms willwill be replaced internal strategy be replaced withwith internal strategy execution teams a dedicated execution teams andand a dedicated solution to support them. solution to support them.

With risks in data reliability and With risks in data reliability and security, leaders recognise critical security, leaders recognise critical data tools deserve more data andand tools deserve more respect than Excel and SharePoint. respect than Excel and SharePoint.

A dedicated C-suite leader A dedicated C-suite leader and supporting team will and supporting team will established deliver bebe established toto deliver an organisation’s strategy. an organisation’s strategy.

0606 Facts and evidence Facts and evidence take precedent take precedent

Guaranteed delivery delivery Swift, guaranteed execution of the

Swift, guaranteed the a higher strategy will beexecution provided of through volume scope deliverables, strategy willof besmaller provided through a higher aligned to eachscope otherdeliverables, and the greater goal. volume of smaller aligned to each other and the greater goal.

Forleaders leadersto tosuccessfully successfullycascade cascade For theirstrategy strategywith withits itsinitiatives initiativesand and their respectivecomponents componentsthere therewill will be be respective callfor foraadigital digitalplatform platformto toachieve achieve aacall thison onan anorganisation-wide organisation-widescale. scale. this

07 07 digitalboardroom boardroom AAdigital monitors performance monitors performance

Digital strategy execution boardrooms will offer Digital strategy execution boardrooms will offer real-time scalable insights aross the whole real-time scalable insights aross the whole organisation, monitoring execution through organisation, monitoring execution through progress and key outcomes in KPIs. progress and key outcomes in KPIs.

With global delivery across With global delivery across thousands of individuals and their thousands of individuals and their respective teams, common facts and respective teams, common and of evidence will become thefacts bedrock evidence will become the bedrock of performance management. performance management.

08 08Guaranteed

Global Global deliveryand and delivery execution execution

09 09

Procurement Procurement focus focus

With the stakes so With thewith stakes so to the high regards successful execution high with regards to theof the strategy,execution a formal, of standardised successful the strategy execution platform strategy, a formal, standardised procurement process will emerge, strategy execution platform driven by the CXO will emerge, procurement process driven by the CXO

10 10 Insights driving Insights action driving

action

Predictive external analytics Predictive external and AI, aligned to analytics your enterprise solution, and AI, aligned to yourwill alert your organisation enterprise solution, to willfuture alert risks of your strategy’s failure. your organisation to future risks of your strategy’s failure.

Many of the world’s largest businesses still use outdated approaches when it comes to executing strategy.

Simon Crowther, CEO, i-nexus and Freddy Torres, Head of Operational Excellence, SAS Automotive Systems outline how digitalising strategy execution can be used to safeguard existing processes, continuously improve and deliver results.

The time-consuming task of tracking and managing goals, programs and performance using methods like Excel and PowerPoint is an outdated way of

ForSAS SASAutomotive, Automotive,clearly clearlydefined definedand and For bindingstandards standardsare arethe thebasis basisfor forcreating creating binding reliable and sustainable products which reliable and robust processes to ensure are of high quality and performance. the customer satisfaction.

At the same At time, same time, that means uncovering and that means uncovering and using the using potential for improvements and also potential for improvements and constantly constantly adapting processes. adapting to new customer needs.

Real-Time Project Tracking

managing strategy execution that is still widely

“Our benchmark is to utilise the most

adopted by many global organisations today.

modern methods and work at a constantly high level of quality.

With 90% of strategies failing due to poor execution

Working with i-nexus has meant that

(Kaplan & Norton), it’s no surprise that strategy

we can maintain the exceptionally

execution is an emerging priority for C-level execu-

high standards our clients expect,

tives who demand a single dedicated platform to

while growing our business.”

transform, run and improve their businesses.

“For us, quality relates to every area of the company, “Traditional approaches to managing

so we place great importance on continuously im-

strategy execution don’t offer the

proving quality.” Says Freddy Torres, Head of

versatility, collaboration and security

Operational Excellence at SAS Automotive Systems.

needed to successfully deploy, manage and optimise strategy at scale”, says Simon Crowther, CEO at i-nexus.

“Strategy execution software offers control, accountability and visibility in an increasingly complex world.

Experience has shown us that for leaders to suc-

Before using i-nexus, Automotive Before using i-nexus, SASSAS Automotive usedused Excel Excel to manage quality.

The switch to the to manage projects and improvement initiatives. i-nexus digital platform that uncovering The switch to the i-nexus means digital platform means the uncovering potential for and adapting that theimprovements potential for improvements processes now easier.

Theeasier. system has also and adaptingisprocesses is now The system driven assurance that projects are aligned has also driven assurance that projects are to the corporate strategy. aligned to the corporate strategy.

cessfully cascade their strategic plan across the whole organisation, on a global scale, a digital platform is a necessity.”

Simplifying the time-consuming and complex task of delivering successful strategy execution is helping i-nexus’s market-leading clients like SAS Automotive Systems, Syngenta and CRH to gain competitive advantage.

“By digitalising all of our improvement projects and our gate review process in i-nexus, we are now able to track the value and status of each project. We can analyse the actions that are having a positive impact in real-time and intervene early to optimise and adjust.”

Take the free i-nexus StratexAssess Strategy Execution Maturity Assessment at www.stratexassess.com. Contact Matthew Redwood on +447917 435232.

SAS AUTOMOTIVE SYSTEMS

92

the senior people welcomed me and

some routines in daily life known in the

the experience helped me massively,

western world as kaizen tools are an

particularly in learning the meaning of

intrinsic part of the Japanese culture.”

Genba.” Moreover, Torres stresses the

Having made the switch to his cur-

influence “kaizen” (the Japanese word

rent position at SAS in 2017, Torres

for continuously improving all business

acts as a key link between several

functions across all areas of the pro-

Corporate Functions and the plants.

duction line) is having on firms in Japan.

“We want to increase the level of

“There is a big focus on the importance

alignment and transparency in the

of kaizen across all companies in

organisation.” Serving a range of high-

Japan,” says Torres. “I realised early

profile automotive customers such as

on during my time in the country that

FCA, Daimler, Volkswagen Group and

NOVEMBER 2019

93

E XE CU T I VE PRO FI LE

Freddy Torres, Freddy Torres, M.Sc. Material Sciences Engineer and automotive professional with more than 15 years of experience in industry in areas such as R&D, Quality Management and Lean Manufacturing.

After starting his career in automotive industry in Japan moved to Germany in 2011 where he has hold several Regional and Global functions in Quality and Lean Manufacturing since then.

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SAS AUTOMOTIVE SYSTEMS

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NOVEMBER 2019

95

“ There is a big influence on the importance of kaizen across all companies in Japan” — Freddy Torres, Head of Corporate Operational Excellence, SAS Automotive Systems

w w w.ma nufa c t uri nggl o b a l. com

SAS AUTOMOTIVE SYSTEMS

1996

Year founded

€633mn Approximate revenue

96

4,372

Approximate number of employees

Tesla, SAS delivers tailored customer service for each of its clients. Torres reflects on the role partnerships play on his firm’s operations, particularly its strategic collaboration with SK Automation. “SK Automation is becoming a key business partner that plays an important role in the establishment of our new production facilities in Europe and Asia. It has demonstrated the speed and effectiveness we need in NOVEMBER 2019

97

this kind of business,” explains Torres.

“We must have a dedicated approach to each customer in order to fulfil their requirements. Take Tesla for instance, we’re learning how to build with it because it has a completely different approach to the traditional way of doing things and it’s important we adapt our services to suit each client’s different needs.” With a firm customercentric approach in mind, Torres w w w.ma nufa c t uri nggl o b a l. com

SK Automation Group Automation solution provider Turn key project machine builder Assembly, test, welding, industry software Focus on battery module pack and chassis system production line 600+ Employees world wide Facility in Europe, China and USA

Customer Reference

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Email : sales@sk1.net.cn

Website : www.sk1.net.cn

99

Tesla ©

stresses the importance of ensuring

necessarily mean that we need to

customers obtain the best value. “As

introduce new technologies. It can be

we are in the JIS-JIT business, our

how we operate as a business to work

processes must be 100% robust

out ways to reduce costs and provide

so innovation remains a permanent

customers with a competitive cost. We

challenge for us,” he says. “We need

want to show that we’re 100% available

to search for opportunities that will

for our customers at all times.”

enable us to go the extra mile in com-

With the future in mind, Torres affirms

parison to our competitors and ensure

the aim is to ensure SAS can continue

we always deliver the best value for

to go from strength to strength as it

our customers. Innovation doesn’t

looks to expand over the upcoming w w w.ma nufa c t uri nggl o b a l. com

SAS AUTOMOTIVE SYSTEMS

100

NOVEMBER 2019

“ We want to show that we’re 100% available for our customers at all times” Volkswagon ©

— Freddy Torres, Head of Corporate Operational Excellence, SAS Automotive Systems

years. “Growth is the most important thing. Our expectation is to ensure we grow in North America and China because we believe that those countries remain our biggest chances of increasing our manufacturing footprint,” summarises Torres. “There’s also opportunities here in Europe so we must stay alert to ensure SAS can continue to grow.”

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102

Nigerian Bottling Company Driving sustainability with an increasingly digitalised supply chain WRITTEN BY

HARRY MENEAR PRODUCED BY

MANUEL NAVARRO

NOVEMBER 2019

103

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N I G E R I A N B O T T L I N G C O M PA N Y

George Chantoumakos, Supply Chain Director at the Nigerian Bottling Company, discusses the Coca-Cola Hellenic Bottling Company subsidiary’s increasingly sustainable and digitally interconnected supply chain

A

s the world’s population continues to grow and the looming climate crisis becomes a fact of daily life, the need for

sustainable practices in global supply chains is being thrown into increasingly sharp relief. In few places is the truth of this clearer than in the food 104

and beverage market. Waste reduction, recycling and sustainable packaging alternatives are the name of the game.

“I see sustainable packaging becoming the key industry goal in coming years,” says George Chantoumakos, Supply Chain Director at the Nigerian Bottling Company. Alongside increasing the sustainability of its supply chain, the Nigerian Bottling Company, is harnessing the power of digital transformation to shape its Nigerian supply chain into an efficient, interconnected operation. “Any industrial player that wants to remain relevant to the consumer needs to fully embrace a digital, interactive supply chain,” Chantoumakos explains. We sat down with him to discuss his continuing role in developing the Nigerian

NOVEMBER 2019

105

w w w.ma nufa c t uri nggl o b a l. com

CLICK TO WATCH : ‘NBC YOUTH EMPOWERED 2017’ 107 Bottling Company’s interconnected,

the feeling of ownership of a family

digital and increasingly sustainable

company with the breadth, depth and

supply chain.

international scope associated with

Chantoumakos arrived in Nigeria

working for a blue chip company,”

in 2017, quickly coming to relish the

he enthuses. “The Nigerian Bottling

central role that the Nigerian Bottling

Company is the heart of Coca-Cola

Company plays in Coca-Cola Hel-

Hellenic – it’s where it all started

lenic’s global strategy. “Coca-Cola

back in 1951. It’s the group’s only

Hellenic operates in 28 countries,

African operation, which gives us a

offering opportunities to live and

unique position in the company port-

work in very different markets and

folio. Special market conditions and

societies. The company is built on

a tough operating environment are

strong values which remain the foun-

coupled with huge growth opportu-

dations of the group today. Working

nities.” The company operates eight

for Coca-Cola Hellenic combines

plants across the country, in locaw w w.ma nufa c t uri nggl o b a l. com

N I G E R I A N B O T T L I N G C O M PA N Y

Our Energy Working for You Nigeria´s Leading Independent Power Producer (IPP) Solar-Gas Hybrid Plant Combined Heat & Power Our Strategy is To Provide Power & Energy Solutions In A Challenging Fast Changing Environment

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CONTACT US

tions such as Lagos, Maiduguri and

growing country, India, grew by 36%.

Port Harcourt. Nigeria is a rising star

This population growth is, accord-

in Sub-Saharan Africa’s economies,

ing to Chantoumakos, a key driver of

and Chantoumakos is excited by the

the need for increasingly sustainable

role that Coca-Cola Hellenic will play

consumer goods packaging. “The

in meeting the challenges and oppor-

Polyethylene terephthalate (PET –

tunities of rapid growth.

the most common thermoplastic

From around 122.4 million at the

polymer resin of the polyester fam-

turn of the millennium, Nigeria’s popu-

ily) market has exploded, and the

lation has exploded, exceeding 202

country’s recycling infrastructure

million in 2019. It is now the seventh

and regulatory framework are still

most–populous country on the planet,

some steps behind,” Chantoumakos

growing by 62.1% in the past 20

explains. “Plastic pollution is a high

years. For context, the next–fastest

priority problem for regulatory bodies

E XE CU T I VE PRO FI LE

George Chantoumakos George obtained his MSc in Mechanical Engineering in Greece and then proceeded to the United Kingdom, Warwick University, to obtain an MSc in Business Management. He started his career in the Advisory departments of PwC and Deloitte in London, where he also obtained a Chartered Management Accounting certification. He then moved to ContourGlobal as Project Manager before joining Coca-Cola Hellenic Bottling Company in 2011, and eventually taking up a Regional Engineering role. George moved to Nigeria and NBC in 2017 as Manufacturing Director of NBC, and earlier in 2019, was appointed as Supply Chain Director. He is happily married and the proud father of two.

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109

N I G E R I A N B O T T L I N G C O M PA N Y

136

Brands in our diverse portfolio

1951

Year founded

3,000

Approximate number of employees 110

NOVEMBER 2019

111

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N I G E R I A N B O T T L I N G C O M PA N Y

DO NOT STOP US FROM CONTINUING TO WORK ON OUR IDEAS.

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At KHS, we are thus always proud of what we have achieved – but we also immediately start to question it and think ahead.

With the aim of constantly advancing and always improving – and of providing our customers with new, intelligent systems time and again. Which we then, of course, develop further. khs.com/products

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EXPERT SOLUTIONS FOR DEMANDING PROJECTS

“I see sustainable packaging becoming the key industry goal in coming years”

— George Chantoumakos, Supply Chain Director, Nigerian Bottling Company

for plastic production, Chantoumakos explains that the Nigerian Bottling Company is also expanding its use of more sustainable options in the form of glass and aluminium cans. “Glass, being a fully recyclable and environmentally friendly packaging material, should be the thing that protects the Nigerian population from overwhelming plastic pollution. Glass bottles also address the market’s need for affordability,” he says. “This year, the Nigerian Bottling Company is also investing in a new, state-of-the-art canning line, and we will continue with our returnable glass bottle business.”

In addition to being a driving force behind Nigeria’s food and beverage industry and embracing more sustainable packaging strategies, the Nigerian Bottling Company is

to solve. The food and beverage in-

also dedicated to contributing to the

dustry – especially multinationals that

development of quality of life in the

operate in territories where recycling

region. “Considering the fact that Ni-

is already working well – will be driv-

geria is experiencing infrastructural

ing the action plans leading to zero

challenges impacting both electric-

plastic waste.”

ity and water supply, my role comes

In addition to working towards a ze-

with a great deal of responsibility to

ro-waste plastic packaging solution

the Nigerian consumer,” Chantouma-

and creating a cyclical supply chain

kos explains. “If I had to highlight one w w w.ma nufa c t uri nggl o b a l. com

113

N I G E R I A N B O T T L I N G C O M PA N Y

114

“Plastic pollution is a high priority problem for regulatory bodies to solve” — George Chantoumakos, Supply Chain Director, Nigerian Bottling Company

accomplishment since arriving at the Nigerian Bottling Company, I would emphasise the construction projects we did in Kano State, Nigeria, providing fresh water via two new tube wells to the Kano State Water Board, and from there providing potable water for up to one million inhabitants of the state. We also established a free NOVEMBER 2019

115

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treated water supply point outside our

order to incorporate new technolo-

plant and refurbished a local school

gies that increase efficiency, speed

in the vicinity of our plant. These

and connectivity, and allow the com-

sustainability projects, especially the

pany to more fully utilise its talented

water supply, have dramatically im-

workforce to drive greater supply

proved the day to day lives of millions

chain success. “Connectivity remains

of people. Making a difference in a

the key challenge to fully deploying

country where basic infrastructure

digital transformation across our op-

is not a given is something I hadn’t

erations. We’re working with our main

experienced before in my career and

suppliers to increase connectivity be-

something I will surely take with me

tween our equipment and to elevate

when leaving the country.”

our predictive maintenance capabili-

Within the Nigerian Bottling Com-

ties. Similarly, for our fleet manage-

pany’s own operations, Chantouma-

ment division, we are investing in full

kos has been working constantly in

digitalisation with interactive, real-

NOVEMBER 2019

time report systems for optimising our fleet’s efficiency,” says Chantoumakos. He adds: “Industry 4.0 is expected to provide a direct connection between the consumer and manufacturers, making the industry almost immediately responsive to consumer feedback and developing needs.” In Nigeria, this is perhaps truer than anywhere else in the world.

“In this market there is a paradox: while the basic infrastructure remains a challenge in several areas across the country, internet use is extremely

117

high, especially amongst younger people,” Chantoumakos elaborates.

“I recently read that Nigeria is second worldwide, behind the Philippines, in time spent per capita on social media.

This indicates the huge opportunities we have to pull feedback from consumers almost instantly and adjust our plans accordingly.”

Looking to the future, Chantoumakos is confident that the Nigerian Bottling Company will continue to live up to its tradition of excellence within the market by incorporating digital technologies that allow it to meet demand in a sustainable way. “We’ve w w w.ma nufa c t uri nggl o b a l. com

N I G E R I A N B O T T L I N G C O M PA N Y

118

“Nigeria is second worldwide in time spent per capita on social media.

This indicates the huge opportunities we have to pull feedback from consumers almost instantly and adjust our plans accordingly” — George Chantoumakos, Supply Chain Director, Nigerian Bottling Company

NOVEMBER 2019

119

been operating in Nigeria for 68 years, and we are very proud of the fact that the entire Coca-Cola Hellenic Group originated here. We have been sustaining market leadership in times of great hardship in the country, so we can only plan to continue being market leaders in every sector in which we operate.�

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120

KEMET ELECTRONICS: WORKING WITH PARTNERS TOWARDS A DIGITAL FUTURE WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

MIKE SADR

NOVEMBER 2019

121

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KEMET ELECTRONICS

CHRIS HALL, VICE PRESIDENT OF GLOBAL INFORMATION TECHNOLOGY AT KEMET ELECTRONICS, EXPLAINS HOW THE COMPANY’S WORK WITH PARTNERS HAS IMPROVED ITS EFFICIENCY, AGILITY AND FLEXIBILITY

K

EMET Electronics is a leading manufacturer of capacitors, inductors, magnetics and various other passive components critical

to circuit board assembly,” explains Chris Hall, the company’s Vice President of Global Information 122

Technology. The company operates more than 23 manufacturing facilities and 33 sales offices worldwide, predominantly in Asia and North America. In the last fiscal year ending in March 2019, the company shipped an estimated 54bn components to 188 countries and approximately 180,000 customers. KEMET components meet the needs of fast-moving market sectors including the Internet of Things (IoT), 5G and the electrification of the powertrain and other systems in automotive.

As the company is celebrating its 100-year anniversary, Hall reflects on how far the business has come. “KEMET is very proud of its lineage of innovation and pushing the market and our industry into the next realm of innovation. In light of that, one thing we really try to be innovative about is how we use technology, which will drive our position going NOVEMBER 2019

123

$1.4.bn Approximate revenue (FY2019)

1919

Year founded

15,000

Approximate number of employees w w w.ma nufa c t uri nggl o b a l. com

KEMET ELECTRONICS

“ THE COMPANY IS VERY PROUD OF ITS LINEAGE OF INNOVATION AND PUSHING THE MARKET AND OUR INDUSTRY INTO THE NEXT REALM OF THINGS” — Chris Hall, Vice President of Global Information Technology, KEMET Electronics

forward and make us the vendor with whom everyone wants to do business with because of our ability to deliver.

We want to be the emotional favorite of our customers; even if we’re not the lowest price. This mindset is reflected

by KEMET’s mantras: ‘Easy to Design In’ and ‘Easy to Buy From’, the foundation of the company’s strategy.”

Hall joined KEMET in December 2017 to drive the technical transformation required to ensure the company comes out on top as the ‘emotional favorite’ of its customers. He made a point to say it was his role to insure IT

124

NOVEMBER 2019

CLICK TO WATCH : ‘THE KEMET STORY’ 125 was aligned with and supporting the

business with technical capabilities;

overall business strategy. In order to

IT is becoming easier to buy from.”

meet this goal, technologies have been

The company has also seen the benefit

introduced to improve efficiency,

of mitigated costs as a result of its

productivity, flexibility and quality to

digital transformation strategy. “The

support the business into the future.

goal is to utilize technology’s ability to

“Digital transformation is bringing us

help manage capacity and make it more

into the 21st century and enabling us

visible in real-time. This will enable the

to not only catch up with digital change,

company to be more productive and

but leapfrog into the future and take

improve quality.”

the lead,” Hall explains. “We’ve become

KEMET is also working to ensure

more agile, and this has allowed us to

it better harnesses its data: “It’s no

respond to and complete projects in

secret that, in order to be a digital

hours or days rather than weeks and

company, you’ve got to be able to

months. We’re able to delight the

capture, harness and analyze data and w w w.ma nufa c t uri nggl o b a l. com

Helping clients achieve brighter business outcomes

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KEMET ELECTRONICS

128 use it to make decisions as near

quality, delivery and service,” reveals

real-time as possible.” Concurrently,

Hall. “The new smart, stable and

KEMET is researching ways to use

secure wireless infrastructure from

data to drive a lot of its projects;

Aruba, which we’re deploying in more

striving to find ways to operationalize

than 50 locations globally, will allow us

broad, enterprise-wide artificial

to leverage gigabit wireless connectivity

intelligence (AI) and machine learning

to streamline operations, support

(ML) projects.

enhanced collaboration and innovations

“As KEMET looks to the future, we

in customer service as well as being

know that secure, pervasive mobility

prepared for technological advances.”

and IoT technologies will be key to

By utilizing Aruba Central and Clear-

maintaining our position as the

Pass Policy Manager, KEMET can unify

preferred global supplier of electronic

network operations and assure a

component solutions for customers

security platform that simplifies the

demanding the highest standards of

deployment, management and service

NOVEMBER 2019

assurance of its wired and wireless environments through a single pane of glass. Similar to Aruba enabling its LAN for the future, the company’s partnership with Open Systems is revolutionizing its ability to ensure QoS throughout its WAN and provide the needed performance levels users expect of the cloud. These partnerships in KEMET’s new infrastructure will allow the company to build upon its 100-year tradition of enabling some of the most significant technological advances in history and continue 129 E XE CU T I VE PRO FI LE

Chris Hall Chris Hall has spent 19 years in the after-market services and electronics manufacturing industries. Rising through the ranks at JABIL, Chris developed a strong understanding of supply chain management, lean manufacturing, and cross-functional leadership principles. After 14 years at Jabil, Chris was part of the iQor acquisition of JABIL’s After-Market Services division and was promoted to Vice President of IT Solutions for the newly combined IT department. He spent three years developing new technology to support iQor’s joint ventures and general corporate strategy to become a Digital Enterprise. For the past 18 months, Chris has led KEMET Electronics Corporation’s IT transformation as VP of Global IT, where he oversees all aspects of IT strategy including infrastructure, systems architecture, and development.

w w w.ma nufa c t uri nggl o b a l. com

Managed Secure SD-WAN. Removes lag time between business and new initiatives.

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KEMET and Open Systems— True Partners in Digital Transformation Driven by a rich history of innovation, and an unwavering commitment to excellence, KEMET manufactures the electronic components that power our world. Under the leadership of Chris Hall, Vice President, Global IT, KEMET is executing the cloud-first strategy that provides a true strategic advantage.

Together, KEMET and Open Systems are architecting a digital transformation— working collaboratively to design a managed SD-WAN infrastructure that provides the capacity, speed, and visibility needed to best support current and future network demands.

The Open Systems platform provides KEMET’s 15,000 employees better access to global data and intelligence and delivers secure cloud-based apps to the entire organization.

“Open Systems gives us visibility to network traffic and the ability to

control quality of service into various clouds in our environment,” said Chris Hall. He continued, “In working with Open Systems, we’ve been able to experience the significant cost savings and reduced IT capital expenditures that SD-WAN in general promises, but a lot of companies aren’t able to realize.”

As the company considers the “smart” technologies of the future like blockchain and the Internet of Things (IoT), KEMET’s newly optimized infrastructure is poised to deliver a connected workplace for years to come.

Hall continued, “Open Systems has enabled us to expand our perimeter.

As we deliver more applications to the cloud, we look forward to working with them as true partners in our digital transformation.”

CLICK TO WATCH : ‘KEMET – DRIVING INTO THE FUTURE’ 133

“ FOR A CENTURY, KEMET HAS REDEFINED THE POSSIBILITIES OF ELECTRONICS AND WE WILL CONTINUE TO DO SO FOR OUR NEXT 100 YEARS” — Chris Hall, Vice President of Global Information Technology, KEMET Electronics

driving toward our goal of being the reliable partner our business needs.

KEMET has also worked with Sirius to help with local area networks (LAN) upgrades in order to transport data from individual test devices to clients’ machines. The company must certify the data is appropriately monitored and traffic is segregated, enabling quality performance of services that are necessary to drive enterprisegrade IoT projects. “It’s very important that we get the infrastructure foundation of our digital transformation correct,” w w w.ma nufa c t uri nggl o b a l. com

KEMET ELECTRONICS

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NOVEMBER 2019

“ IT’S NO SECRET THAT, IN ORDER TO BE A DIGITAL COMPANY, YOU’VE GOT TO BE ABLE TO CAPTURE, HARNESS AND ANALYZE DATA AND USE IT TO MAKE DECISIONS AS NEAR REAL-TIME AS POSSIBLE” — Chris Hall, Vice President of Global Information Technology, KEMET Electronics 135 says Hall. “However, as well as infrastructure, we must also address how we actually move data and make it available to disparate applications, including AI. This is where Software AG comes in – the company is the information highway through which all that data integration is going to happen.

Whether it’s collecting data from our shop floor, pulling in data from our ERP systems, or being able to utilize data coming in from customers and vendors, it must be reliable. Software AG’s Webmethods platform gives us the ability to work in real-time.” w w w.ma nufa c t uri nggl o b a l. com

KEMET ELECTRONICS

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“ WITH THE EXPLOSION OF DEVICES, OUR PRODUCTS AND SOLUTIONS WILL FUEL THE TECHNOLOGIES AND INDUSTRIES OF TOMORROW” — Chris Hall, Vice President of Global Information Technology, KEMET Electronics

As the company continues towards its digital future, Hall reveals what to expect: “For a century, KEMET has redefined the possibilities of electronics and we will continue to do so for our next 100 years. With the explosion of devices, our products and ​solutions will fuel the technologies and industries of tomorrow.” As one of the world’s most trusted partners for innovative component solutions, KEMET will be at the forefront of the manufacturing

NOVEMBER 2019

137

industry’s digital revolution. “Leading

technologies. I’m privileged to be part of

into the future and the next five years,

KEMET, and excited to lead the digital

we have a continued focus on our

transformation that’s being prioritized

mission in making the world a better,

to make this vision possible.”

safer and more connected place to live,” he adds. “This will be achieved through our technologies and materials science – these will be critical in redefining industries, such as the electrification of automotive, Industrial Internet of Things (IIoT), Industrial Automation, AI and alternative energy w w w.ma nufa c t uri nggl o b a l. com

138

Unilever: manufacturing a circular plastic economy NOVEMBER 2019

139

WRITTEN BY

WILLIAM SMITH

PRODUCED BY

CRAIG KILLINGBACK

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UNILEVER

© Perkins&Will/Unilever

Business Chief takes a closer look at the circular economy for plastic being instituted at and supported by Unilever

M

ultinational consumer goods company Unilever has, since its founding 90 years ago, diversified its offerings to include a

huge variety of items ranging from food to cleaning products. With over 400 brands, Unilever says on its website that on any day, “2.5bn people use Unilever 140

products”. According to Statista, the company’s market value in 2018 was $155.8bn, with revenues of US$56.612bn (€50.982bn), making it one of Europe’s largest companies. As of 2019, the company reportedly employs 155,000 people around the world.

For a company as large as Unilever, any of its initiatives have the potential for huge knock-on effects. Because of this, it stresses the importance of research and development (R&D) to pioneer new approaches. With six R&D centres across the world staffed by 6,000 R&D workers and US$1.1bn (€1bn) of investment, the company says that “Innovation is at the heart of Unilever’s ambition to grow sustainably. Science, technology and product development are central to our plans to keep providing consumers with great brands that improve NOVEMBER 2019

141

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UNILEVER

“ Our vision is a world in which everyone works together to ensure that plastic stays in the economy and out of the 142 environment” — Alan Jope, CEO, Unilever

NOVEMBER 2019

their lives while having a positive impact on the environment and society.”

Through these words, Unilever’s intent to position science and technology to meet the world’s environmental concerns can be understood. One of the principal considerations of fast moving consumer goods is necessarily packaging, and with such a focus comes the attendant environmental concern. Many of these packagings come in the form of plastics, with that category subdivided further still.

Single-use plastics have come under particular scrutiny, with the European

CLICK TO WATCH : ‘UNILEVER 2025 PLASTIC PACKAGING COMMITMENTS’ 143 Parliament approving a complete ban planned to go into effect across the bloc by 2021. According to Unilever, the deaths of 100mn marine animals can be attributed to discarded plastic each year. “Plastic has its place, but that place is not in the environment,” said CEO Alan Jope in a press release.

“We can only eliminate plastic waste by acting fast and taking radical action at all points in the plastic cycle.”

In response to such measures, Unilever is helping forward the move towards a circular economy which not only uses less plastic but recycles, w w w.ma nufa c t uri nggl o b a l. com

UNILEVER

144

reuses or composts the material it

it sells” – moves which have seen

does use. Currently, Unilever quotes

Unilever become the first company

figures suggesting that only 14% of the

of its kind to target a reduction in

world’s plastic packaging ends up in

plastic in absolute terms.

recycling plants, with only 9% going on

“Our starting point has to be design,

to be recycled. The company announced

reducing the amount of plastic we use,

that by 2025 it would halve its use of

and then making sure that what we do

virgin plastic via a reduction in the

use increasingly comes from recycled

amount of plastic packaging in the

sources,” said Jope in the press

order of 100,000 tonnes and by

release. “We are also committed to

increasing its use of recycled material.

ensuring all our plastic packaging is

It said it would also help to “collect and

reusable, recyclable or compostable.

process more plastic packaging than

This demands a fundamental rethink

NOVEMBER 2019

145

in our approach to our packaging and products. It requires us to introduce new and innovative packaging materials and scale up new business models, like re-use and re-fill formats, at an unprecedented speed and intensity.”

Unilever’s endeavours in this area are backed by other concrete targets.

100% of Unilever packaging will have sustainability or recycling information by 2021, and 100% of packaging will be recycling ready or reusable by 2025.

“ We can only eliminate plastic waste by acting fast and taking radical action at all points in the plastic cycle” — Alan Jope, CEO, Unilever

All rigid Plastic packaging will be 100% w w w.ma nufa c t uri nggl o b a l. com

UNILEVER

146

“ We see no paradox between responsible consumption, sustainable business, purposeful brands and better financial performance” — Alan Jope, CEO, Unilever

Cif ecorefill – a 10x concentrated refill that allows shoppers to buy one spray bottle, which they can then use for life

NOVEMBER 2019

147

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Graphic Packaging International is an integrated supplier of paperboard, cartons and machinery. We deliver packaging solutions and machinery systems using state-of-the-art technologies. Brand owners around the globe rely on us for our unwavering focus on quality and efficiency.

Our products are made from paperboard, a recyclable material and made from renewable resources. When you choose Graphic Packaging International, you’re making a sustainable choice for the environment and your business.

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Community-based waste banks NOVEMBER 2019

US$56.6bn Approximate revenue

1872

Year founded

155,000

Approximate number of employees

post-consumer resin by 2025, and for the Hellmann’s brand specifically, 25% of turnover will be driven by refillable or reusable plastics by 2025.

That brand, as well as Axe and Dove, are participating in the Loop Program to disruptively upcycle plastic waste via a process of depolymerization, in turn producing food-grade PET plastic and Polyester.

These targets are all intended to benchmark Unilever’s progress towards its ultimate goal. “Our vision is a world in which everyone works together to ensure that plastic stays in the

w w w.ma nufa c t uri nggl o b a l. com

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UNILEVER

150

Unilever’s partnership with Mr Green Africa unlocks sustainable solutions to plastic waste management in Kenya

All Things Hair – a new model of eco-friendly shopping in the Philippines NOVEMBER 2019

economy and out of the environment,” continued Jope in the press release.

“Our plastic is our responsibility and so we are committed to collecting back more than we sell, as part of our drive towards a circular economy. This is a daunting but exciting task which will help drive global demand for recycled plastic.”

The move towards sustainability is not in conflict with the business imperative, however. In an interview with the BBC, Jope said: “We do believe in trying to remain relevant for younger groups of consumers as they come into the market, and we know that millenials really care about purpose and sustainability and the conduct of the companies and the brands that they’re buying.

This is part of responding to society but also remaining relevant for years to come in the market. We see no paradox between responsible consumption, sustainable business, purposeful brands and better financial performance.”

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152

TE Connectivity: Transforming manufacturing WRITTEN BY

JOHN O’HANLON PRODUCED BY

TOM VENTURO

NOVEMBER 2019

153

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TE CONNECTIVITY

The automation of manufacturing processes is driving the rapid development of the products of tomorrow: Roberto Lu, Vice President – Technology: Automation Manufacturing, Global Operations, explains how…

B

ack in 1941, Aircraft Marine Products (AMP) was founded, as so many companies were, as part of the technical leap

forward catalyzed by war. The need for rapid 154

development and deployment of new ships and aircraft spelt the death of labor intensive manufacturing practices such as manual soldering of electrical connections, and AMP – which would later become TE Connectivity – established itself on its ability to develop solderless connectors that could be changed quickly but without losing the ability to pass current reliably in demanding conditions.

78 years on, this market has transformed very much to TE Connectivity’s advantage. The company is still adding value at the interface between devices and solving the problems presented at those interfaces. Electronics are ubiquitous.

Domestic appliances, automotive, aerospace, energy, manufacturing, medical devices and more all call for specialized and smart connectors to enable transformations through the internet of NOVEMBER 2019

155

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TE CONNECTIVITY

“ Our production today is all about automation and semi-automation” — Roberto Lu, VP Technology, TE Connectivity

things (IoT), machine learning (ML), automation and robotics.

This places TE Connectivity firmly among the essential global companies that most people haven’t heard of, sitting behind the label on your smartphone, your transportation, all of your internet activity and every experience you have. It develops and manufactures switches, cable assemblies, relays, antennae and many more product categories as well as critical connection solutions for fiber optics.

Today the company employs 80,000 people, makes 220bn products a year,

156

achieved sales of $14bn in 2018 and has 130 manufacturing and engineering centers around the world.

AMP was acquired by Tyco International in 1999, becoming part of Tyco Electronics in a 2007 restructure.

In 2011, however, it rebranded itself as TE Connectivity partly to reflect its approach to the market and partly to avoid confusion with other Tyco companies. This happened under the leadership of Tom Lynch, CEO from 2006 until 2017 and now Chair of the Board. Attracting talent was an important part of the former Motorola CFO’s strategy, as was shown in 2011 NOVEMBER 2019

CLICK TO WATCH : ‘ENGINEERING THE FUTURE’ 157 when he reached out to a high-flying

about the company at the time. I was

Boeing executive to fill the newly

attracted by the breadth of TE’s global

created job of Vice President –

reach and the realization that it is

Technology: Automation Manufactur-

present wherever there is a signal –

ing, Global Operations.

whenever you call someone you are going through TE products!”

CAPTIVATED BY CONNECTIVITY

Having no predecessors, at first Lu

What persuaded Roberto Lu to take on

worked on his own and without a budg-

this challenge? “Tom had brought in

et. “I travelled extensively in the first

Rob Shaddock as CTO from Motorola:

weeks and I was amazed at the number

they saw they needed someone to run

of opportunities that I saw to contrib-

manufacturing technology so they

ute on the manufacturing technology

created my job. I hadn’t planned to

side,” he explains. As a part of the

leave Boeing, but I was really captivat-

global corporate headquarters

ed by TE, though I didn’t know much

organization, reporting to the CEO w w w.ma nufa c t uri nggl o b a l. com

TE CONNECTIVITY

158 through the head of operations, Lu’s responsibility covers all the TE

acronym stands for automation!”

This nimble approach typifies the

segments: Communications, Trans-

company and its leadership, he

portation and Industrial. Today he has

continues. “Back in 2012 it was quite

a team of 50 engineers located in the

visionary of the company to see that

USA, Mexico, Europe and China but

automation was going to be such a big

his organization had to be built from

deal. We have to give this credit to our

scratch. “In March 2012 I inherited a

leaders because who can estimate

small team and was allocated a budget

what is going to happen a few years

– my boss asked me what I wanted to

down the road? That is another reason

call it, so I said AMT. At the time that

that I really like this company: the

stood for advanced manufacturing

leaders are not only interested in this

technology but we rethought that,

quarter’s performance on the stock

taking into account the rapid growth of

exchange market but also looking

automation, and now the A in the

forward years down the road to see

NOVEMBER 2019

where we’ll be in the long term.”

You can buy TE products across the

stage to solve connectivity issues before the product is made. Team

counter or even online through

members from TE Connectivity work

distributors or the company’s website.

full time at the engineering and

However, most of TE’s business

production facilities of nearly all

comes from engagement with OEMs

of the world’s global auto and aircraft

with whom the company works closely

makers. There’s also a high percent-

to develop solutions for next-genera-

age of TE content within the critical

tion products, right from the concept

control functions that maintain the

E XE CU T I VE PRO FI LE

Roberto Lu, Vice President – Technology: Automation Manufacturing, Global Operations TE Connectivity (NYSE: TEL) is a $14bn global industrial technology leader. TE connectivity and sensor solutions are essential in today’s increasingly connected world.

TE collaborates with engineers to transform their concepts into creations – redefining what’s possible using intelligent, efficient and high performing TE products and solutions proven in harsh environments. He works closely with the company’s manufacturing and operation leaders to advance TE’s overall manufacturing capabilities in automation, artificial intelligence and machine learning technologies.

He charters TE’s global manufacturing technology strategies and roadmaps, which guide the company’s manufacturing technologies, initiatives, and the overall development of new manufacturing processes. Manufacturing technologies from his team reach more than 102 TE factories in EMEA, the Americas and Asia.

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159

TE CONNECTIVITY

$14bn Approximate revenue

2004

Year founded

80,000

Approximate number of employees 160

NOVEMBER 2019

161

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NOVEMBER 2019

“ We have 8,000 engineers working on connectivity solutions” — Roberto Lu, VP Technology, TE Connectivity

speed and stability of the 350+ kph Beijing to Shanghai high speed train link, Lu says. It’s worth noting that TE Connectivity is among the biggest foreign employers in China, where it has more than 2,000 engineers working on product research and manufacturing development.

The competitive advantage of vertical integration can’t be overstressed.

A major transportation organization, for example, wanted connectivity solutions to deliver fast streaming of media content. Weight reduction and efficient operation were key criteria.

“They came to me with the next question: what about manufacturing technology and were we going to manufacture in a low cost location with a lot of manual labor? I could assure them that we have 11 patents on this product family manufacturing technology. We own it. Our production today is all about flexible precision automation and semi-automation. Our customer can rest assured that TE can not only produce the parts to the satisfaction of the customer but that we have our manufacturing technology in-house and they have access to our technical team members including myself!” w w w.ma nufa c t uri nggl o b a l. com

163

TE CONNECTIVITY

INNOVATE AND AUTOMATE As the leader of a global center of excellence in assembly automation, including manufacture and assembly, innovation is important to Lu. “We must lead with the next ready-to-deploy technology otherwise the innovation pipeline runs dry, and that is bad business. The opportunities presented

by IoT are taking us in many directions.

At our engineering centers we have top grade engineers developing innovations that will be needed in transportation, for example, as driverless cars 164

and even ships and aircraft become a reality. We have 8,000+ engineers working on those connectivity and sensing solutions. Out in the field their concern is to build customized solutions for major connectivity platforms, and work on the production floor to implement these solutions.” As we have seen, the IP the company possesses aids the customization of solutions – once a successful implementation has been established at one site, it will be rolled out at multiple sites, saving time and money.

On the manufacturing side, his team is constantly working on improving performance and finding new soluNOVEMBER 2019

tions: one of the biggest challenges (and market opportunities) is presented by high-speed communications. In this field alone, he says, TE holds more than 200 global patents. Here automation has been the key. “In many product categories we are achieving over 99% first-time-right pass rates. There’s no way that can be achieved through manual processes, and our customers really appreciate that reliability. We have developed spatial intelligence machine learning capability for a variety of our products, with at least 18 deployments across sites of various business units. We use artificial intelligence to learn what is done right and what is not: there’s deep learning behind our processes and our inspections to increase our speed and quality.”

In 2011, Roberto started to draw up technology roadmaps to chart forward development, and today he and his team continue to use this approach.

A year later, with the support of Rob Shaddock and Tom Lynch, he introduced TE Connectivity to the global RoboCup competition. With so much talent residing in its engineers, dispersed as they are, it was necessary to find collaborative routes to w w w.ma nufa c t uri nggl o b a l. com

165

TE CONNECTIVITY

166

innovation. “Innovation is a team sport,

NEVER-SATISFIED CURIOSITY

and it’s everybody’s job,” said Rob

One of Lu’s great strengths is his

Shaddock, former CTO and Lu’s boss

desire to learn. Since bagging his first

at the time. Teams participating in

degree in 1985 at Taiwan he gained

RoboCup use vision-guided robots to

four more advanced degrees from

improve TE production processes and

American universities including a

provide significant ROI. Lu’s AMT team

doctorate in industrial engineering.

runs robotics courses for the partici-

There’s continuity from his work at the

pating team members, training them in

Boeing Company, where he worked for

working with new applications such as

over 13 years, and his present role in

collaborative robotics. The first

that they both involved manufacturing

competition took place in 2012 and it

technology research and development

has run annually ever since.

– though the transition was not an

NOVEMBER 2019

obvious one. “I was honored to work alongside so many innovators at Boeing and was one of the first few engineers working on the Boeing 787 in 1999. We had to develop our internal processes because on something like that there’s nobody you can ask!”

Involvement with something as high profile as the 787 Dreamliner, and the experience of working at Boeing, where they say ‘The sky is not the limit – it is Boeing’s playground’ was “awesome”, according to Lu. “In my Boeing days I was very fortunate to have outstanding leaders and managers who inspired me.” The company became his own playground, he

“ Insatiable curiosity became a drive for me to seize every opportunity to contribute to Boeing locations globally” — Roberto Lu, VP Technology, TE Connectivity

admits. Poring over the internal maps of Boeing’s many locations he set himself the task of getting into every building on every manufacturing and fabrication site and finding out what happens there. A tall order, but he managed to do them all bar one.

“Insatiable curiosity you may say, but that curiosity became a drive for me to seize every opportunity to contribute to Boeing locations globally.”

He had every expectation of retiring as a senior Boeing Fellow when he was approached by Tom Lynch, who w w w.ma nufa c t uri nggl o b a l. com

167

TE CONNECTIVITY

168

he regards as the model of an inspirational leader. Perhaps he recognizes a

capabilities than we know.”

In 2015 at a global leadership event

kindred drive and curiosity in a

for the top echelon of the company Lu

corporate finance leader prepared to

was listening to a dinner presentation

leave his dream job as CFO at

when he heard a story unfolding that

Motorola to turn around the reputation

was rather like his own. “I realized that

of Tyco electronics. “It’s Tom who

this was actually my story: then my

has made TE Connectivity the really

name was announced and I had to

strong performance company it is

quickly gulp down my food and go up

today. He likes to inspire everyone,

on the stage to be presented with a

with the message that we have better

black leather jacket! The jacket is like

NOVEMBER 2019

169

a pilot’s jacket – it means you are a

made more mistakes than I would like

solo flyer, and it is a great honor, rather

to admit to! The key thing was that

like a lifetime achievement.”

I recognized them and accepted they

Despite this and many more achieve-

were part of my growth.”

ments, like the publication of his book on ASCL models in production engineering, Lu is refreshingly ready to admit he doesn’t know it all. Don’t be afraid to make mistakes as long as you learn from them, he says. “I am thankful to TE Connectivity because I have w w w.ma nufa c t uri nggl o b a l. com

That’s why we’ve joined Project STOP. NOVA Chemicals is a Strategic Partner in Project STOP, a global initiative that brings corporations and governments together to keep plastic from reaching the world’s rivers and oceans through the development of waste collection services and a recycling supply chain.

The immediate focus of that effort is the countries of Southeast Asia, where fast-growing economies mean the demand for products packaged in plastic are outpacing

novachemicals.com

governments’ abilities to meet the challenge of waste management.

At NOVA Chemicals we’re passionate about sustainability.

That’s why, along with investing in Project STOP, we’re engaged in R&D work focused on developing packaging solutions that support a circular economy.

We’re proud to play a key role in Project STOP and its crucial efforts to build a better future.

Copyright NOVA Chemicals Corp. 2019, all rights reserved.