Manufacturing Global - October 2018

Delivering quality results through supply chain disruption manufacturingglobal.com

O C T OB E R 2 0 18

OWENSILLINOIS Sustainability, innovation and embracing digital transformation

Helping businesses navigate a digital landscape

KEMET Electronics

Implementing an aggressive digital transformation

Chris Hall, VP Global Information Technology, on the creation of a dynamic digital infrastructure

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WELCOME

H

ello and welcome to the October issue of Manufacturing Global!

With the increasing pace of the manufacturing sector demanding proficiency, improved processes as well as increasing cost-effectiveness and time efficiency, digitalisation and software are of great help to manufacturing companies as they strive to overcome challenges and get better results. We take a look at how an aggressive digital transformation allows KEMET Electronics to tackle tomorrow’s challenges today.

The US manufacturing sector represents over 18.2% of the world’s total goods every year, being one of the greatest contributors to the nation’s employment, GDP and overall economic development. We take a look at the top 10 manufacturing companies operating in the US.

Elsewhere in the magazine, Vitaliano Torno and Arnaud Aujouannet of Owens-Illinois detail the importance of sustainability, innovation and embracing digital transformation in the manufacturing industry.

Our other cover stars include KPMG, as we examine how the company has become a beacon of insight for New Zealand’s business landscape, as well as Safilo Group which is nearing the end of an ambitious six-year procurement strategy as it continues to go from strength to strength.

Plus, exclusive insights into some of the leading manufacturers of the world, including Ford Otosan.

Enjoy the issue!

María Cobano-Conde maria.cobano@bizclikmedia.com

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03

CONTENTS

10

KEMET Electronics:

Tackling tomorrow’s challenges today

26

Owens-Illinois Born out of a desire to create and innovate

40

Taking the digitisation jump

64 Events

Top 10

manufacturing companies in the

52

US

CONTENTS

68 Safilo Group

88 KPMG

100 Ford Otosan

KEMET Electronics: Tackling tomorrow’s challenges today

Implementing a digital infrastructure through an aggressive digital transformation WRIT TEN BY

DA LE BENTON PRODUCED BY

ANDY TURNER

KEMET ELECTRONICS

T

he role of IT in business is changing. No longer simply a support function, over the

last decade IT has taken on a much more integral role in defining the strategic direction of most business all around the world.

“In today’s world, IT is the crux of every business. It is the very foundation that everything is built on,” says Chris Hall, VP Global Information Technology at KEMET Electronics

$1.2B Approximate revenue

1919 Year founded 16,000 Approximate number of employees

Corporation.

12

“If you’re not taking it seriously, you’re going to be left behind. Businesses make decisions on the fly and so IT

This is a continuously growing market,

must be able to support these deci-

with demand increasing faster than

sions with real-time data. IT has to

ever before and KEMET prides itself

be agile and be able to meet the needs

on its responsiveness to its customers.

of the business.”

The notion of IT being a foundational

“It all comes back to IT,” says Hall.

“It’s about making our data available.

component that the business is built

Both from a customer perspective (our

upon is key in the KEMET Electronics

distributors and our partners), as well

IT digital transformation journey. With

as, available to our internal business

customers ranging from producers of

groups. However they want to get the

small wearables, laptops, and mobile

information, it’s our job to ensure its

tablets to solar panels, 5G antennas,

available to them.

and electric vehicles, KEMET is

“Plus, there’s also a responsibility to

a leading global manufacturer and

keep the lights on. IT still has to keep

supplier of electronic components.

the network running, the PCs patched

OCTOBER 2018

NORTH AMERICA

13

“ We have a culture and security in place. I’m here to ensure of striving to be we have a very strong foundation to more innovative and carry KEMET into the future, with data management and collaboration tools not resting on our to make us more agile and ultimately heels. That’s key to more successful.” delivering success Hall tries to sum up the digitization of KEMET in one, succinct sentence; to on a wider scale on create an IT department that enables wider projects.

KEMET’s data to be accessible to any and generally the proper infrastructure

employee at any time, so long as they have security access granting them privileges to that data.

— Chris Hall, VP Global Information Technology at KEMET Electronics Corporation

The challenge then becomes one of w w w. m a n u f a c t u r i n g g l o b a l . c o m

KEMET ELECTRONICS

CLICK TO WATCH : ‘THE KEMET STORY’

compiling all data and hosting it in the

and a lot of different requirements to

right place and in a fast and secure way.

meet all at the same time. Creating an

It’s here that Hall is implementing 5 core

agile environment takes a lot of organi-

pillars to overcome this challenge.

sation, but it’s paramount to support

These core pillars define the digitiza-

a digital enterprise”

tion process, described as KEMET 2025.

A consistent message throughout

“First, we have to organize,” says Hall.

the digital transformation has been

“We have to have a good strong change

one surrounding data management

management process; yet maintain

and access to data, and Hall recogniz-

agility,meaning that a simple change is

es that in order to achieve this vision

a simple change.”

of accessible data, there must be

“In order to be agile, you have to very organised. Trying to be agile is difficult

infrastructure supporting it.

“When talking about the infrastruc-

because you have a lot of different

ture, security goes hand-in-hand with

types of projects, different mandates,

it in today’s world,” he says. “You need

OCTOBER 2018

NORTH AMERICA

a backbone that can carry your data

digital transformations fail; when you

as fast as possible and as securely

don’t pay attention to the foundational

as possible.”

components that are required to

“We live in a very “right now” world, where users have no patience for slowness anymore.”

support it.

With the first three pillars aligned, KEMET can turn its attentions to data

Hall believes that if a company doesn’t management and collaboration; “the have an efficient and robust infrastructure, it does not matter how “slick and

fun branches” as Hall describes them.

Without the foundational pillars in

cool” the data management and collab-

place, any attempts at implementing

oration tools are, if they are slow and

a company-wide culture shift is futile.

poorly managed, they will fail to be

KEMET is implementing Microsoft

adopted by the business This is how

SharePoint Online as the tool set that 15

E X E C U T I V E P R OF IL E

Chris Hall Chris has spent 18 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. Chris was part of the iQor acquisition of JABIL’s AfterMarket Services division and was promoted to Vice President of IT Solutions for the newly combined IT department. He spent threeyears developing new technology to support iQor’s joint ventures and general corporate strategy to become a Digital Enterprise. Most recently, Chris joined KEMET Electronics Corporation as VP of Global IT, where he oversees all aspects of IT strategy including infrastructure, systems architecture, and development.

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KEMET ELECTRONICS

16

enables real time communication

we need to be able to extract, share

between its employees. This informa-

and integrate with all our systems data,”

tion exchange enables far greater

says Hall.

collaboration and “starts moving people away from email.”

KEMET also utilizes Yammer and

“These collaboration tools are very important in making that a reality.”

Data management in itself is a key

other tools from the Microsoft O365

topic among many modern businesses,

suite to access and share information

not just IT at KEMET. For some, it is

in real time, enabling an increasingly

a difficult nut to crack as businesses

agile culture.

all want better access and better

“When you start discussing data management and making all of our data available, our engineers at all the sites have a wealth of knowledge that OCTOBER 2018

learnings from data, but there is no silver bullet.

Hall understands this, noting that the true key to success in data manage-

NORTH AMERICA

ment is approaching it one project at a time with an eye towards the bigger, long-term goal. “We should enter data once and should be available wherever we need it.”

“To achieve this, it’s not a one size fits all technology map,” he says. “You cannot build the perfect big data mousetrap, instead you integrate new tools progressively into your data management architecture and achieve iterative success through greater agility. Overtime, the full data ecosystem will begin to take shape.”

An iterative approach is crucial in transforming an organization and establishing an IT function that is responsive and proactive. Hall points to this approach and its iterative success, as a means of building belief in the process and supporting a cultural shift throughout the company.

“To me, doing the work is actually the easy part. We have a culture of striving to be more innovative and not resting on our heels. That’s key to

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delivering success on a wider scale on larger projects.”

Another key to the successful delivery of a digitization process and w w w. m a n u f a c t u r i n g g l o b a l . c o m

17

KEMET ELECTRONICS

18

“WE LIVE IN A VERY ‘RIGHT NOW’ WORLD, WHERE USERS HAVE NO PATIENCE FOR SLOWNESS ANYMORE” — Chris Hall, VP Global Information Technology at KEMET Electronics Corporation

OCTOBER 2018

NORTH AMERICA

19

w w w. m a n u f a c t u r i n g g l o b a l . c o m

NORTH AMERICA

KEMET Electronics Corporation’s headquarters in Simpsonville technology transformation is external

digitization projects, KEMET is also

partners and technology vendors.

partnering with Nutanix to better manage

To this end, Hall feels that selecting the right partner(s) is actually more a case of cultural fit as much as it

and provide the onsite compute for future projects like IoT. These are but three examples of how

is a simple technological capabil-

KEMET is working collaboratively with

ities analysis.

vendors to serve as coaches providing

KEMET relies on a number of business partners. Sirius, a leading integrator of technology-based

core intelligence and best practices to the company.

We are partnering with people who

business solutions, Halls notes, has

are good at what we are not, and by

been instrumental in assisting with

doing so, bringing information and

the “reinvention of our infrastructure.

knowledge into KEMET that will serve

“IBM is a critical partner in assisting

us well for years to come.”

with our implementation of SharePoint and other development projects.

To achieve the necessary hybridcloud model necessary for future

No transformation defined by technology can ever truly end, with technology and innovation continuously evolving and redefining industry w w w. m a n u f a c t u r i n g g l o b a l . c o m

21

KEMET ELECTRONICS

KEMET LEADERSHIP TEAM GROUP PHOTO Top row, from left to right: Robin R. Blackwell, J.D., Fernando Spada, Jamie Assaf, Dr. Phil Lessner, Stefano Vetralla, Tim Herring, Andreas Meier, Chuck Meeks, Masayuki (Max) Nakamura, Claudio Lollini, Fumihiro (Hiro) Katakura, Michael Raynor, Brian Burch, Bob Willoughby, Andreas Hammer, Dr. Johnny Boan, Yang Zhang, Bottom row, from left to right: Shigenori (Sean) Oyama, William Lowe, Monica Highfill, Per-Olof Loof, Susan Barkal, Dr. Daniel F. Persico, Yang Zhang.

and businesses. KEMET is working towards its 2025 vision and Hall has his eyes firmly set on achieving those goals first and foremost as a way for preparing KEMET for the future and beyond.

He feels that delivering success with 2025 will define the success of the future.

“To define success, we have to look at how we deliver against those core pillars,” he says.

22

OCTOBER 2018

NORTH AMERICA

“By establishing the best infrastructure securely creating a more collabo-

effective, and more agile to a rapidly changing market.

rative company through communica-

“The challenges of 2025 will be very

tion and having all the useful information

different from the challenges of 2018,”

and data at the fingertips of our business

says Hall.

users, we will be successful.”

When broken down, KEMET’s journey

“But if we get it right, if we are better organised and more agile, then we will be

can be defined by one real business

able to tackle those future challenges

need and that is to be more agile. All of

more effectively and successfully.”

the pillars of transformation and the technology implementation is designed to make KEMET more efficient, more

23

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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 Click to read

w w w.bu si nessch ief.com

LEADERSHIP SHOWCASE

26

Owens-Illinois Born out of a desire to create and innovate Manufacturing Global talks to Vitaliano Torno and Arnaud Aujouannet about the importance of sustainability, innovation and embracing digital transformation WRITTEN BY

OCTOBER 2018

SE AN GA LE A-PACE

27

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

LEADERSHIP SHOWCASE

N

o successful, multi-national company that sets the bar, continues to raise it and maintains its lead over rivals on a global scale is built overnight.

It requires the mentality of refusing

to stand still, the ability to react to and embrace the latest industry trends as well as the capability of finding new ways to innovate and create. In this new age of digital transformation, it’s vital and this is a view which Owens-Illinois (O-I), the world’s leading glass manufac28

turer, will be able to understand well.

Having first been established in 1903

by Michael J Owens under the name of The Owens Bottle Machine Corporation, the company became known under its current title in 1929 following the merger of Owens Bottle and the Illinois Glass Company of Alton.

A 30-year veteran of the glass industry, Vitaliano Torno, was named managing director of O-I Europe at the beginning of 2015 before being appointed president of O-I Europe in January 2016. Arnaud Aujouannet is responsible for sales and marketing for O-I. In his role, Arnaud is focused on improving commercial

OCTOBER 2018

29

“For almost a century, we grew.We grew by acquisition,but also organically by winning new customers with new designs and new markets” — Vitaliano Torno, President, O-I Europe

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

LEADERSHIP SHOWCASE

CLICK TO WATCH : ‘O-I FIRE AND SAND – HOW GLASS IS MADE’ 30 productivity and ensuring the delivery

are to ensure we develop the right

of customer value through product

capabilities to support that. With

innovation, market knowledge, and

sustainability, there is a big impetus

customer support.

there. I think the Blueprint program-

By having such considerable experience in the industry, it is clear

mein the UK has really created some momentum.”

that both men are well-positioned to

“We can also see that a certain

judge how the industry is changing on

percentage of consumers are saying

an ongoing basis. Aujouannet under-

that they aren’t willing to buy packaging

stands the importance of O-I’s reliance

that doesn’t contain recyclable contents.

on innovation and on how key it is to

Glass is 100% recyclable and healthy.

keep up with the latest trends.

It’s made of natural ingredients, there

“At the moment, the trends are

is no interaction between the content

sustainability, differentiation and

and the container. It’s highly relevant to

premunization. All our challenges

support these trends,” Aujouannet adds.

OCTOBER 2018

INNOVATION AND CREATION

create was almost fully dedicated to our

Despite both Torno and Aujouannet

engineering capabilities to innovate.”

being from different countries and

And innovate they have. In early

having had alternative routes into the

September, the company released

business; their visions for Owens-Illinois

O-I: EXPRESSIONS which has trans-

couldn’t be more similar.

formed glass bottle design through

“It has been a very long journey. O-I

customisation and personalisation

is a company which has been around

by sculpting glass bottles into multi-

for about 110 years and was based out

dimensional works of art. The new

of an innovation,” says Torno.

product has been created through

“The company has survived all this

the use of digital printing and has been

time and has been consistently growing

developed for design agencies, packag-

on the capability to innovate. For a little

ing professionals as well as food and

more than a century, our capability to

drink marketers that are aiming to stand

“At the moment, the trends are sustainability, differentiation and premunization. All our challenges are to ensure we develop the right capabilities to support that” — Arnaud Aujouannet, Senior Vice President and Chief Sales and Marketing Officer

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31

LEADERSHIP SHOWCASE

“ For a little more than a century, our capability to create was almost fully dedicated to our engineering capabilities to innovate” — Vitaliano Torno, President, O-I Europe

32

out and provide its consumers with

“There is unlimited creativity and you

fresh ways to choose their brands.

even can print images on packaging

“The fundamental thing about O-I:

with high resolution that can even go

EXPRESSIONS is it’s a differentia-

up to 720 DPI. The unique thing about

tion service provided to brands but

what we offer is the ability to create

enabled by digital direct-to-print on

a 3-D print like embossing on bottles

glass. I think that there are four core

and even colour this embossing. It’s

benefits; it’s unleashing creativity, it’s

enabling us to provide a completely

increasing speed to market, it’s a true

different look and feel for a bottle

personalisation and it’s sustainable,”

that starts with, potentially, a very

says Aujouannet.

standard shape.”

OCTOBER 2018

33

EXPANDING WORLDWIDE Now operating 78 plants in 23 different countries globally, Torno believes the ability to keep expanding as a company is what maintains its success. “We’ve been innovating and improving the process and looking at the way we used to make glass and what has made us very successful up to that point. For almost a century, we grew.

We grew by acquisition, but also

1903

Year founded as Owens Bottle Company

Over

6,000

Direct customers

26,500

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

LEADERSHIP SHOWCASE

organically by winning new customers with new designs and new markets.”

With the new age of digital transformation, all companies have had to embrace technology in order to keep up with the latest trends. And O-I certainly values the importance of it.

“Digitally today, you can do almost anything. In regards to personalisation of the bottles, we constantly look at the way we can make every bottle unique from a technical point of view.

So that you can identify the bottle and 34

trace it back to when it was made, where it was made, which ingredients we use etc,” explains Torno.

“But, the key point is how you connect this with requests, needs, expectations, trends and how you market it. Because the risk is that you create things that can be potentially very complex, very nice or very appealing, but you are not matching the present expectation of the consumer and you are just adding complexity.”

UNVEILING NEW CREATIONS The introduction of new technological innovations such as EXPRESSIONS has enabled O-I maintain its position at the summit of glass production. It is OCTOBER 2018

“ We constantly look at the way we can make every bottle unique from a technical point of view” — Vitaliano Torno, President, O-I Europe hoped the new product will allow the firm to improve its customers experience, with O-I feeling it enables them to offer excellent value to its consumers.

“A lot of brands now that need to create events to generate demand and sometimes you could see, for example, offers for events such as Father’s Day, Valentine’s Day, or a Christmas campaign,” says Aujouannet.

“So, even for big brands, it can help us to provide a solution for the dedicated promotion or events-based activities.

Even when a customer is asking us for a dedicated promotion for a retailer, and when our retailers are asking for a lot of differentiation, this can help us provide a very unique solution with a shorter run than usual when talking about the big things.” w w w.ma nufa c t uri nggl o b a l. com

35

LEADERSHIP SHOWCASE

36

OCTOBER 2018

Aujouannet believes that O-I’s most important achievement was seeing the company transition to a more market-based company. It was a move which he believes has led to O-I’s consistent success in beating market predictions.

“I believe when we used to traditionally be a manufacturing company but have become a much more market-based company. So, shifting your culture and linking the culture to actions is one of our most critical achievements.”

“I think on the economic front, you can also see that we are consistently delivering on our expectations - on our promise. And quarter after quarter, I think we are really producing on our market predictions.”

Thinking about the future, Torno expects the challenge will be to keep winning the battle of the customisation and keep making glass more sustainable.

“We want to make glass more and more sustainable. Working with suppliers who manage it, making it lighter, the quality of the bottles we make. It’s so important.”

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37

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DIRK BORGHS COO Datwyler

FERDI AKSOY Regional Head/General Manager Yazaki Europe

ARIANE ROOS Senior Director, Customer Services and Operations (Benelux) Philips

ARTURO GALVAN Factory Manager, Hamburg Chocolate Factory Nestlé

ARMIN SCHWAB Vice President, Plant Management & Site Responsible (WeP/PM) Bosch

PAUL MAIRL Chief Digital Officer GKN Powder Metallurgy

STEFAN KÖHLER Vice President & General Manager (AVI Arabian Vehicles & Trucks Industry Co. Ltd) Volvo GTO

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FRANCESCO SALA, Senior Vice President of Technical Operations, Pirelli Tyre S.p.A.

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ARIANE ROOS, Senior Director, Customer Services and Operations (Benelux), Philips

LEAN & OPEX Lean Strategy Deployment for Engineering to Order the Business Structure in Siemens Ltd. China SEZIN TASKIN KOEYLUEOGLU, Lean Program Manager, Business Unit Transformers, Siemens Limited China

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TECHNOLOGY

40

Taking digitisation jump the

OCTOBER 2018

41

Jason Chester, Director of Global Channel Program at InfinityQS,offers more insight into how Statistical Process Control (SPC) software and digital services can help manufacturers worldwide WRITTEN BY

M ARÍA COBANO-CONDE

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TECHNOLOGY

42

Can you briefly explain some of the services InfinityQS provides?

facturing operations, and at the same time reduce cost, waste and risk.

Over the past three decades, InfinityQS has developed the most recognised and capable Statistical Process Control (SPC) and Quality Management Solution available to date.

We have leveraged over 30-plus years

In particular, how does InfinityQS and the insight it can provide help to make cost savings, improve compliance and quality,and help with strategic decisions?

of manufacturing and quality experience

At the core is our data collection and

to launch the next-generation Manufac-

analysis capabilities which enable man-

turing and Quality Intelligence Solution

ufacturers to collect and analyse data

- Enact. This cloud-based solution prov-

in real-time. This can help manufactur-

ides manufacturers of all sizes, across all

ers to pinpoint areas where exceptions,

industries, with a cost-effective platform

problems or inefficiencies are either

that can radically transform the efficiency,

occurring or are likely to occur.

productivity and quality of their manuOCTOBER 2018

It is all underpinned by enabling

“ While we talk about Industry 4.0 and IIoT, the majority of manufacturers do not even have the basics in place to enable digital transformation programmes” ­— Jason Chester, Director of Global Channel Program at InfinityQS

43 manufacturers to model their entire

issues or objectives. As a result, all

processes and product specifications,

parties involved have a better under-

quality management policies and proce-

standing as to why a particular technol-

dural workflows, ensuring that they are

ogy solution is adopted and the benefits

followed correctly to meet compliance.

and business value it can provide.

Enhanced client satisfaction, brand

How can factories avoid implementing technology ‘for technology’s sake’and make sure they are only using solutions that truly make a difference?

that sustained technology investment

Typically, service partners are very

can bring, which are transformative in

engaged with their clients and under-

the longer-term. Ultimately, technology

stand the problems or opportunities

in and of itself rarely delivers value,

they face – they can help manufacturers

it is the capabilities that it provides

identify solutions to address underlying

that adds value.

equity, increased market share, talent acquisition, risk mitigation, or even the ability to enter new markets/ new business models, are some of the benefits

w w w. m a n u f a c t u r i n g g l o b a l . c o m

TECHNOLOGY

What are some examples of new technology you are seeing manufacturers use to create a ‘smart factory’?

We see new technologies emerge every day that enable the ‘Smart Factory’ or the ‘Digital Factory’ of the future –often variations of the same theme. However, it is the rapid confluence and maturity of existing technologies that is making the “factory of the future” more of a reality today. Although not ‘new’, (as technology rarely is), their combined capabilities open-up new opportunities.

The miniaturisation and commoditisation of digital sensors – and devices and networks 44

which enable data to be instantly transmitted – can perform relatively sophisticated computational functions without a centralised service (part of the edge computing paradigm).

Because of this, we’re seeing exponential growth in data volumes being generated, which require greater bandwidth to store and move data around, improving internet-working technologies.

Thankfully, the latest advancements in Big Data technology is helping us achieve that, but it is useless if it’s not actionable. The final piece, which has yet to mature, is cognitive technologies such as Artificial Intelligence (AI), Machine Learning, Prescriptive and Predictive Analytics.

OCTOBER 2018

Do you see any new technologies increasing in popularity for the industry over the next few years?

While we talk about Industry 4.0 and IIoT, the majority of manufacturers do not even have the basics in place to enable digital transformation programmes.

Therefore, I think that it will be core industrial information technologies that will significantly increase in popularity in the near future – foundational technologies like Data Collection, Manufacturing, Quality and Process Intelligence and Analytics technologies, precursors and prerequisites to the factory of the future.

45

What are the biggest challenges in introducing new technology in manufacturing?

These challenges fall into two broad categories. ‘Pre-investment’ is deciding which new technologies to invest in, which is a real challenge faced by decision-makers.

On countless occasions, I have been in discussions with manufacturing senior executives, puzzled by their poor productivity levels, or overall equipment effectiveness (OEE). Yet when you step through the factory door, it is like stepping back in time to a day when pencils and clipboards ruled supreme.

When you visit a very progressive manufacturer that is aggressively implementing very capable w w w. m a n u f a c t u r i n g g l o b a l . c o m

TECHNOLOGY

46

solutions into the shop floor, it has a

involved in the project – It is surprising

vibrancy that is hard to portray in words.

how many projects fail because of

The second category is the ‘post-

a lack a plan.

investment’ decision. This is where

If organisations understand their

Is it now more necessary than ever to recruit staff who are adaptable in the manufacturing industry?

objectives and expectations upfront,

I think it is essential. Attracting and

it will help determine if the outcome is

retaining the talent that will help manu-

successful and what needs to be done

facturers adapt to new IT approaches

to increase the chances of success.

is paramount, and failure to do so will

It is also important that everyone is

jeopardise the success of future projects.

manufacturers have decided to invest and now have to deploy successfully.

OCTOBER 2018

“Even though we’ve been doing automation for several decades,we still have unacceptable levels of waste amongst automated processes” ­ — Jason Chester, Director of Global Channel Program at InfinityQS

How do IoT, IIoT and smart monitoring impact manufacturers on their automation journey?

are optimised.

These technologies enable manufac-

To achieve optimisation, we need to

turers to make the transition from

monitor processes closely and react to

process automation to optimisation,

what we observe on a real-time basis.

the critical distinction as to where

processes – while some process may be automated, it does not mean they

Previously that cost of improving

manufacturing is heading in the future.

a process has been pretty high due to

Even though we’ve been doing

the high cost of traditional architec-

automation for several decades,

tures, such as PLC’s and SCADA type

we still have unacceptable levels

solutions. But the commoditisation of

of waste amongst automated

IIoT devices coupled with cloud-comw w w. m a n u f a c t u r i n g g l o b a l . c o m

47

TECHNOLOGY

48

OCTOBER 2018

“ Ultimately,technology in and of itself rarely delivers value, it is the capabilities that it provides that adds value” ­— Jason Chester, Director of Global Channel Program at InfinityQS

puting is now lowering that bar so it is becoming impossible for manufacturers to ignore.

Finally,is there anything you want to share about the company’s future plans – will you be looking to build new partnerships, expand geographically, or add even more services to your offering?

We will be building new partnerships with a wide variety of organisations, whether they are service providers or original equipment manufacturers (OEMs).

We aim to create a global collaborative partner ecosystem which can support manufacturers in transforming their operations, regardless of their location, industry or size. From an Enact perspective, it is truly a next-generation Manufacturing and Quality Intelligence Platform, and we will be continuing to invest aggressively in ongoing innovations to meet the needs of manufacturers now and well into the future.

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49

T O P 10

Top 10

52

manufacturing companies in the

US

We analysed the top 10 largest manufacturing companies in the U.S. according to Industry Week, ranked by performance in 2017 WRITTEN BY

OCTOBER 2018

MARIA COBANO-CONDE

53

w w w. m a n u f a c t u r i n g g l o b a l . c o m

T O P 10

09

Boeing Co. It is the world’s largest aerospace company and leading manufacturer of commercial jetliners, defence, space and security systems. As the U.S.’ biggest manufacturing exporter, Boeing’s products and tailored services include commercial and military aircraft, satellites, weapons, and

10 54

Microsoft Corp.

a diverse range of systems including electronic, defence, launch, advanced information and communication systems. It also offers performance-based

A well-known multinational software

logistics and training in 150 countries for

and technology company, it has led the

airlines and U.S. government customers.

personal computer operating system

Boeing has recently agreed a $805 mn

market since the mid-1980s, when it

deal with the U.S. Navy for its MQ-25

launched the MS-DOS system. It devel-

aircraft, contributing to its already

ops, manufactures, licenses, supports

solid earnings of $93,392 mn in 2017.

and sells computer software and con-

www.boeing.com

sumer electronics, together with personal computers and services.

The owner of LinkedIn, it was founded in 1975 by Bill Gates and Paul Allen in New Mexico. Satya Nadella, its current CEO, led the company to generate $89,950 mn in revenue in 2017, creating a 5.43% revenue growth.

www.microsoft.com OCTOBER 2018

07

Phillips 66 The second of the multinational energy manufacturers to appear in the ranking.

A diversified energy manufacturing and logistics company headquartered in Houston (Texas), its main activity focuses in refining, midstream, chemicals, marketing and specialties with

08

Valero Energy Corp.

over 14,500 employees worldwide.

Founded in 1917 by the Phillips brothers, chemists Paul Hogan and Robert Banks invented the polyethylene plastic for the

Valero Energy – based in San Antonio,

company in 1951. This material ­– branded

Texas – develops international opera-

as Marlex – became worldly known when

tions as an independent petroleum

toy company Wham-O started to use

refiner and ethanol producer, generating

it to make the Hula Hoop in the 1950s.

a combined throughput capacity of

In 2017, Phillips 66 achieved $104,622mn

approximately 3.1 million barrels per

in revenue.

day of petroleum and a combined pro-

www.phillips66.com

duction capacity of approximately 1.45 billion gallons per year of ethanol in the U.S., Canada, U.K. and Ireland.

This Fortune 500 company targets both wholesale and bulk markets with approximately 10,000 employees in 7,400 outlets, which generated a revenue of $93,980 mn and a revenue growth of 24.22% last year.

www.valero.com w w w. m a n u f a c t u r i n g g l o b a l . c o m

55

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ave and extra 25% with code PMRO18SCD. egister at procureconmro.com

T O P 10

05

Chevron Corp.

American multinational energy corporation managing large sales numbers, it produces and transports crude oil and natural gas, and also refines, markets, and distributes fuels. It is also involved in chemical and mining operations, power generation, and energy services in more than 180 countries.

06 58

General Electric Co.

Its history goes back to Standard Oil – nowadays transformed into Chevron Corporation and Exxon Mobil Corporation, among other companies – founded

GE is one of the largest manufacturing

by John D. Rockefeller and Henry Fla-

companies globally, targeting aviation,

gler in 1870, the largest oil company at

healthcare, power, renewable energy,

its time. Headquartered in San Ramon

digital, additive manufacturing, venture

(California), Chevron generated

capital, finance, lighting, transportation,

$141,722mn in revenues and a 23.80%

and oil and gas.

revenue growth in 2017.

A Bostonian company, it made its larg-

www.chevron.com

est-ever industrial acquisition in 2015 by buying French company Alstom’s power and grid unit. In 2017, GE generated a $122,092mn in revenue, registering a negative revenue growth of -1.29% because of which the company plans to reshape its portfolio and develop spin-offs.

www.ge.com OCTOBER 2018

03

Ford Motor Co. Founded in 1903 by Henry Ford, the company revolutionised global automotive sector and manufacturing processes by mass producing its first car, the Ford Model T. The integrated

04

General Motors Co.

assembly line, located at the first Ford factory in Michigan, became a model for modern mass production methods and consumption worldwide.

General Motors is one the largest global

Together with his engineers, Ford

automotive manufacturers, with opera-

invented machines to mass-produce the

tions in more than 35 countries. Its

car parts needed in the production and

corporate structure diversifies into

designed methods to assemble them as

four manufacturing subsidiaries: GMC,

soon as they were made, dividing the

Buick, Cadillac and Chevrolet, that have

production into appointed stations.

created iconic cars such as the 1963

A Fortune 500 company, it manufac-

Chevrolet Corvette, the 1959 Cadillac

tures around 6.7 million cars a year,

Eldorado or the 1957 Chevrolet Bel-Air,

generating $7,602 mn revenue in 2017.

topping the charts of best-selling cars

www.ford.co.uk

in the U.S. for decades.

The company, based in Detroit, employs over 180,000 people at 400 facilities around the world, manufactures around 9 million vehicles every year and generated $145,588 mn in revenue as of 2017– fully immersed in the electric-car manufacturing.

www.gm.com w w w. m a n u f a c t u r i n g g l o b a l . c o m

59

T O P 10

60

02

Apple Inc. The famous Californian technology company recently passed the $1trn market capitalisation mark, propelled by the launch of the new models of iPhone.

Apple develops and sells consumer electronics, computer software and online services, possibly including augmented reality in its devices in the near future. The intense design research and development carried out by the company has played a key role in the history of worldwide technology, especially in the mass production and consumption of smartphones and personal devices.

Created in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, Apple made $229,234mn in revenue in 2017, with a revenue growth of 6.30%.

www.apple.com OCTOBER 2018

01

Exxon Mobil Corp.

Exxon Mobil is the largest publicly traded international oil and gas company, with the largest market cap in its sector.

It mainly engages in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacturing, transportation and sale of petroleum products. It also manufactures and markets commodity petrochemicals including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products.

Before the downturn in the oil market – which began almost four years ago – the company generated 90% of its earnings from its upstream segment, shifting to 57% upstream, 24% downstream (mostly refining) and 19% chemicals segment as for 2017.

That year, Exxon Mobil made $244,363mn in revenue with a revenue growth of 8.08%, topping the ranking of Top 10 manufacturers in the U.S.

www.corporate.exxonmobil.com

w w w. m a n u f a c t u r i n g g l o b a l . c o m

61

Pioneering th smart factory w

15-16 No Hotel Catalon Barcel

he transiion into with lean thinking

ovember 2018 nia Eixample 1864 lona, Spain

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

The biggest industry events and conferences WRITTEN BY OLIVIA MINNOCK from around the world

64

03–04 OCTOBER

ufacturing disciplines. Organisers say:

Future Manufacturing and Trade Summit

“The summit is the only dedicated plat-

[ DUBAI, UAE ]

manufacturing technologies, future

Formerly known as the GCC Manufac-

trends in manufacturing excellence and

turing Excellence and Technology

strategies to boost this sector’s role in

Summit, this event is currently the

economic development. The manufac-

GCC’s largest manufacturing and trade

turing industry has been identified as

conference. The Future Manufacturing

one of the key economic drivers for both

and Trade Summit 2018 will explore

the country and the region and it plays a

technological developments, address

pivotal role in promoting economic

key issues and showcase innovative

growth and trade in the country.”

manufacturing strategies within all man-

Click to view website

OCTOBER 2018

form to discuss cutting-edge

02–04 OCTOBER

Operational Excellence and Risk Management [ LONDON, UK ]

OCT 29 – NOV 01

Management Summit is Europe’s only

AME 2018 International Conference

event dedicated to operational excel-

[ SAN DIEGO, CALIFORNIA ]

lence in hazardous industries. Taking

The mission statement for this event

place in London, this executive-level

is ‘Create Waves of Excellence’. Organ-

conference will bring together over

isers say the AME San Diego 2018

100 Heads of Operations, HSE, ORM

International Conference will explore

and Operational Excellence from

ways for individuals and organisa-

manufacturing, energy, chemicals,

tions to accelerate their journey

resources, transportation and more –

toward excellence. More than 2,000

all industries facing high levels of

attendees are expected at the event

operational risk. You’ll be able to hear

which will include speakers such

from over 40 world class innovators

as award-winning innovation expert

at the event, who will show you how

Jeremy Gutsche, entrepreneur and

to adopt the culture, systems and

former NFL quarterback Joe Theis-

processes of the world’s highest

mann and Billy Taylor, Director of

reliability organisations..

Manufacturing, Goodyear..

Click to view website

Click to view website

The Operational Excellence & Risk

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

65

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

66

14-15 NOVEMBER

Smart Factory Expo

workshops and mentoring, 200 presentations you can attend for free and

[ LIVERPOOL, UK ]

the opportunity for students to visit so

The Smart Factory Expo has become

the next generation can be inspired to

a popular event on the calendar within

work in STEM. The event’s organisers

just three years of its launch. The event

state: “These are exciting times in UK

promises to feature almost 4000 visi-

industry – with outstanding economic

tors, 118 exhibitors and is being

performance in 2017, and the country’s

covered live on BBC. The expo is set

manufacturers standing on the cusp

to feature consultant clinics where

of a technology revolution that plays

experts can solve your manufacturing

to the UK’s strengths as one of the

problems using smart tech, a day dedi-

world’s leading digital economies.” .

cated to women in manufacturing with

Click to view website

OCTOBER 2018

01 JULY 2019

13 FEBRUARY, 2019

Manufacturing Robotics Summit

The Global Manufacturing & Industrialisation Summit (GMIS) [ YEKATERINBURG, RUSSIA ] The Global Manufacturing and Industrialisation Summit is now in its second

[ BIRMINGHAM, UK ]

iteration and certainly something for

Part of the summits organised by The

the diary in 2019. The event focuses on

Manufacturer publication, and a CPD-

innovation and Fourth Industrial Revo-

certified event, Manufacturing

lution technologies in the global

Robotics Summit is the Uk’s largest

manufacturing sector. In particular, the

gathering of manufacturing automation

conference will look at the UN’s Sus-

professionals from across automotive,

tainable Development Goals and the

electronics, food and drink and FMCG.

role of nature-inspired technologies in

The summit will analyse how to suc-

manufacturing. This theme will be

cessfully expand the use of automation

explored through interactive debates,

within manufacturing operations,

sessions and workshops. .

around three conference streams:

Click to view website

Robotics, Industrial and Sensors.

Click to view website w w w.ma nufa c t uri nggl o b a l. com

67

68

DELIVERING QUALITY RESULTS THROUGH SUPPLY CHAIN DISRUPTION WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

CHARLOT TE CL ARK E

OCTOBER 2018

A S I A - PA C I F I C

69

w w w. m a n u f a c t u r i n g g l o b a l . c o m

SAFILO GROUP

Nearing the end of its procurement strategy 2020, Director for Sourcing for Asia and APAC, Jorge Gonzalez, discusses how the business continues to go from strength to strength

A

ppealing to all ages and demographics, the global eyewear market is undergoing considerable growth. Set to exceed $165bn by 2026,

optical companies and those specialising in eyewear will 70

need to transform traditional business models behind the scenes in order to cater towards increased demands.

From the purchase of designer sunglasses, to the improvement of everyday vision, 99% of all frames worldwide are produced in Italy, China and wider Asia, creating significant opportunities for eyewear creator, Safilo Group.

Famed for its extraordinary designs and propriety brands, such as Carrera and Polaroid, as well as its licensed brands, BOSS, Tommy Hilfiger, Kate Spade, Marc Jacobs and more, the group has become the second largest eyewear company in the world.

Safilo is a frontrunner in the global distribution of premium sunglasses, optical frames and sports eyewear, bringing the latest design and manufacturing capabilities.

Housing a number of its factories in Italy, its sourcing activities are mainly undertaken in China and Japan, OCTOBER 2018

A S I A - PA C I F I C

71

“ We source a large share of what we sell with partner companies, instead of with our own direct manufacturing. The sourcing team is extremely well recognised, as it is a key source of innovation” — Jorge Gonzalez, Director of Sourcing in Asia and APAC

w w w. m a n u f a c t u r i n g g l o b a l . c o m

Imagination enriched by precision Who are HuaQiang?

Huaqiang is a precision metal component solution provider to mainly optical, but also watch, luxury accessory, medical and electronic industries. Through 35 years of experiences and constant reinvestments in production, HuaQiang is able to use precision to help its customers realise its widest imaginations and design.

We have offices in Shenzhen, Wenzhou and Veneto, Italy, whilst our HQ and production plants are in Yuhuan, China.

How has the business changed over the years?

Through almost 35 years of history, we started off by suppling metal component to the lowest segments of the eyewear manufacturing business. Until 15 years ago, when most of our domestic competitors started to invest in rapid booming and profitable real estate market, HuaQiang decided take bold steps to invest in a total production upgrade by acquiring two fully automated production lines from Japan.

Contact us on Phone:+86 576 8990 9199 Email: marketing@hqopt.com

We have been able to gain the trust of world’s two leading eyewear manufactures including Safilo, Luxottica, De Rigo and Essilor and have become one of the top four eyewear metal components suppliers in the world.

Basically, we help our customers to create added value by putting ourselves into our customer’s shoes.

Please outline HuaQiang’s business model

Whilst being an industrial leader in self-developed machinery in China, we also maintain industry’s highest level of investment in our Human Resources. One of the most effective ways is to acquire talented people from other industry leaders. Some of our brightest colleagues were recruited from Volkswagen and Bosch.

Our business models can be seen as two folds. For most of our customers, we ship our components directly to their plants, usually in Italy, China, Japan and Bazile. We are their first-tier supplier. This is referred as “Direct sales” in HQ and accounts 70% of our annual sales.

Other customers that are brand or retail owners that do not have internal manufacturing capabilities, we supply to their frame producers. This accounts 30% of our annual sales.

What technologies does the company utilise across its operations?

We have been investing in new technologies, especially in 5-axis CNC machines. We also have a machinery workshop to develop and build all our machines for standard products, as well as utilising pressing, computer numerical control (CNC), metal injection moulding (MIM), laser cutting and more.

How do you ensure strong relationships with customers and suppliers?

We have selected a number of qualified candidates with the potential and willingness to grow. We have shared market information and production knowhow, and internalised the fundamentals, such as moulding and surface treatments so supplier risks are mitigated.

Safilo, for example has an extensive brand portfolio, and is an industrial leader in quality and design. The business always challenges us to realise the wildest design ideas.

The transformation of centralisation in procurement in recent years has also allowed HuaQiang not only to tap into business with Safilo, but also with its OEM suppliers.

Safilo has been our most educative customer, which has allowed us not only to develop in terms of management, but has also opened us to further market opportunities.

What about the training and development of workers?

Our technical team routinely attend machinery and moulding exhibitions worldwide, and we also have established partnerships with a training firms for management training across all management levels.

A personal development fund is also announced to all employees on yearly basis.

What sets HuaQiang apart from the competition?

The most crucial one is our dedication in both catalogue and custom-made products. In catalogue business, some are self-developed, but others can be standardised. By continuous investment in automation, R&D, and production management for catalogue products, we are more efficient than ever.

When developing a new metal frame, a customer need to decide to which extend they will internalise the product.

Our commitment in both product types enables us to be the ultimate metal solution provider to eyewear industry.

We shipped 40mn pairs of catalogue products and 15mn pairs of custom made products in 2017, where we produce approximately 90,000 pairs per day.

As a company that has deep roots in this industry for 35 years, we were able to capture new customers whilst maintaining good service level to existing ones which makes the first half of 2018 the best one we ever had.

How does HuaQiang help its customer such as Safilo to deliver special eyewear?

Each time when we receive a drawing or a new idea, instead of going directly into product development, it is our instinct to look deep and try to understand the logic behind this design and all possible solutions to accomplish it.

If such design is intent to be perfect in moving mechanism, we will suggest the most precise process to make sure the assembled product runs smooth like silk.

If such design is intent to be perfect in aesthetics, we will introduce the right surface treatments to make it shine.

Dunno Huang Director of foreign & indirect sales, HuaQiang Optical

SAFILO GROUP

“ It is a matter of looking at the performance of that factory in somewhere like China and how it will impact our customers in countries such as Spain or Brazil, highlighting the relationship between market and supply” — Jorge Gonzalez, Director of Sourcing in Asia and APAC

74

where its frames are distributed worldwide.

“From a supply chain perspective, we don’t have a strong segmentation by region, but more on a functional basis. However, sourcing is much more Asia focused, which is why we have a strong team in Hong Kong,” explains Jorge Gonzalez, Director of Sourcing in Asia and APAC. “We source a large share of what we sell with partner companies, instead of with our own direct manufacturing. The sourcing team is extremely well recognized, as it is a key source of innovation.

EXCEPTIONAL COLLABORATION Working across a number of supply chain functions for close to 20 years, Gonzalez OCTOBER 2018

A S I A - PA C I F I C

joined the business in 2016 taking over from Andrea Grassini who then became Global Sourcing Director. Grassini has been instrumental within the group’s procurement and supply chain transformation, and has taken the business’ procurement and supply chain capabilities to the next level.

“Previously, the interface between design and sourcing was happening much more downstream in the process. Now, the way we work opens up more opportunities,” he explains.

“When you have your own factories, it’s much more difficult to keep in touch with the market, so we keep in touch through our network of suppliers.

“Instead of having one location, we have over 30. We don’t manage the production directly, but we operate like a factory, with production managers, scheduling and planning. Instead of production orders we use purchase orders, but it is similar. It’s part of our success.”

Working alongside designers in Italy, New York and China, Gonzalez and his team work in sync with both designers and suppliers, passing on innovative design concepts which can be mass produced, placing particular emphasis on building mutually positive supplier relationships in the process.

“We are like a revolving door, with suppliers on one hand and designers on the other, in w w w. m a n u f a c t u r i n g g l o b a l . c o m

75

visotticacomotec.com

Continuous improvement.

Founded in 2003, Jin Yu Plastic Products Co Ltd is a dynamic and leading manufacturer of Cellulose Acetate Sheets in China with offices in Asia and Europe.

www.jinyuplastic.com Jin Yu is on Facebook Instagram Wechat

A S I A - PA C I F I C

“ Our differentiator is that we go to their factories and seek to add value by highlighting opportunities for improvement in every factory” — Jorge Gonzalez, Director of Sourcing in Asia and APAC

lean and six sigma methodologies was a key turning point.”

BUILDING TEAM RESILIENCE As new materials, textures, colours and finishes, as well as types of lenses, continue to flood the market, Gonzalez and his team have remained adaptable against ongoing market volatility.

With over a thousand new products each year, each member of the team plays a key role: Product develop-

order to produce prototypes, concepts

ment and engineering teams manage

and drawings. There is also an engineer-

all 1000 models from prototyping to

ing team, each housing over 15 years’

mass production readiness; the quality

experience, which is why our sourcing

manager ensures that all are manufac-

is world-class,” adds Gonzalez.

tured to high standards, whilst the pro-

“Appointing a number of individuals

duction manager remains responsible

with a background in manufacturing

for the procurement-to-pay process

has also helped our suppliers, as many

and delivery performance.

organisations won’t have the manpower

Additionally, one team is strategically

or the expertise to go deep into their

working with suppliers and gaining a

operations. They just want to negotiate

greater understanding of costings, the

the price and then leave things be. Our

bill of materials, and overhead percent-

differentiator is that we go to their

ages. Its sourcing house has illustrated

factories and seek to add value by

how a healthy manufacturing company

highlighting opportunities for improve-

should operate by creating a dedicated

ment in every factory,” he continues.

area for its purchasing operations and

“We have the background and the expertise. Manufacturing together with

giving its sourcing house greater autonomy. w w w. m a n u f a c t u r i n g g l o b a l . c o m

77

SAFILO GROUP

“I see myself as an enabler

examples to the table. We also

and facilitator. Each team is

brought the team to the facto-

given targets where they make

ries, to the suppliers, showing

the required choices and are

real examples of how we can

held accountable. They decide

be even better.

which projects they will run with

“It takes a while to embed

and the activities they believe

this kind of culture of fighting

the business should be under-

for every single opportunity.

taking,” explains Gonzalez.

The automotive industry had

The sourcing house is routinely encouraged to embrace

to do it in the ‘80s and we are having to do it now.”

new ways of working, particusign new styles to suppliers and

PROCUREMENT JOURNEY

balance capacity, as it contin-

Presently undergoing its

ues to transform from regional,

six-year accelerated procure-

isolated, “do-it-all” units, to

ment strategy, which is set to

global, category-focused pro-

complete in 2020, Safilo will

curement clusters to address

seek to balance its production

global spend by category while

and sourcing activities, in order

driving accountability for qual-

to deliver outstanding results

ity and delivery.

in five key areas: availability,

larly in areas such as how to as78

“The question is ‘why bother to do better if we are already

delivery, cost, partnerships and innovation.

doing very well?’ Trying to moti-

“With net inflation, we are

vate workers in this way was an

trying to accomplish around

internal challenge which we had

low single digits sourcing effi-

to overcome,” notes Gonzalez.

ciency year on year, which with

“We looked at other industries in order to bring some OCTOBER 2018

inflation is a high single or even double-digit improvement es-

A S I A - PA C I F I C

79

SAFILO GROUP

80

“We have a manufacturing mindset and experience with lean and six sigma methodology.

We do not just negotiate prices, but go deep into our suppliers’ production processes” — Jorge Gonzalez, Director of Sourcing in Asia and APAC pecially in countries like China,” says

product development, the purchase-

Gonzalez.

to-pay process and supplier and

“That is the driver towards all other

relationship management, Safilo looks

choices that are situated in quality and

at supplier production and scheduling,

lead time in production. All of this is

collaborating with suppliers across the

geared to removing defects and waste,

whole manufacturing process.

which will help us achieve purchasing ef-

“Having a manufacturing mindset

ficiency, not by reducing the profit of our

and experience with lean and six sigma

partners but by improving the processes.”

methodology. We do not just negotiate

Focusing on three main engines: OCTOBER 2018

prices, but go deep into our suppliers’

A S I A - PA C I F I C

81

production processes,” he says.

“We look at their situation, their overheads, undertake a profit and

they are not able or willing to work to continuously improve quality and process and remove waste cost.”

loss (P&L) analysis and then give them a hint of where to look for opportunities.

SUPPLIER GROWTH

Partners are defined in addition to by

With increased pressures as a result

performance, by the level of collaboration

of the exchange rate with the dollar, as

we obtain during these conversations. At

well as Chinese inflation, the company’s

the end by natural selection suppliers will

relationship with its suppliers has been

end up being dropped and renewed if

completely disrupted. w w w. m a n u f a c t u r i n g g l o b a l . c o m

SAFILO GROUP

“In the past, cost was not so important.

Every supplier had the notion that if they do a reasonable job then they will receive a certain amount of business the following year.

We have therefore had to bring suppliers back to five KPI areas - compliance, social responsibility, quality, delivery performance, cost, and a ‘softer’ area of whether they are easy to do business with,” explains Gonzalez.

“We have had to become very disciplined in making sure that new business and the growth of the supplier is 100% linked to this.”

Introducing best in class management 82

€1.04bn Approximate revenue

1934 Year founded

practices, Safilo works with suppliers to create a yearly joint business plan (JBP), undertaking quarterly reviews, as well as visiting suppliers at their own locations to reach as many layers as possible.

“I personally take the time to meet with the people, with my team and go all the way across the shop floor to understand the issues, work with them and do some problem solving together.

“It is a matter of looking at the performance of that factory in somewhere like China and how it will impact our customers in countries such as Spain or Brazil, highlighting the relationship between market and supply.”

By running a number of quality assurance programmes, the sourcing house has also OCTOBER 2018

8000+ Approximate number of employees

A S I A - PA C I F I C

undertaken a range of projects with suppliers to tackle long-standing issues.

“Each year, KPIs are expanded further to provide new challenges for suppliers, whether it is through capacity or lead times.

For example, last year, our KPI in delivery performance is at 95-97%,” notes Gonzalez.

“We have three seasonal collections per year - in January, April and August - and each year we have removed one week off the lead time. Since 2016, we have cut off three weeks in terms of lead time. However, we need to maintain the same quality and service level, as well as reduce costs.

“We need to be faster and remove waste,” he adds. “We cannot do things the same way that we were doing before, so that forces us internally as well as our suppliers to review current processes, not just production but end to end. For example, lengthy and manual interfaces meant that a purchase order would move from office to the supplier in days, now it takes hours,” he continues.

Soon to renew its 2020 vision following on from the appointment of its new CEO this year, Safilo will aim to further transform the business to uphold its 100% track record on delivery.

Adopting lean deployment programmes to reduce lead times and shrink costs with w w w. m a n u f a c t u r i n g g l o b a l . c o m

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SAFILO GROUP

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FACTS

• The global eyewear market is set to exceed $165bn by 2026 • Safilo Group is the second largest eyewear company in the world.

• Safilo houses a number of its factories in Italy, whilst its sourcing activities are mainly undertaken in China and Japan • Strategically working with suppliers and gain a greater understanding of costings, the bill of materials and overhead percentages, its sourcing house illustrates how a healthy manufacturing company should operate • The sourcing house is routinely encouraged to embrace new ways of working, particularly in areas such as how to assign new styles to suppliers and balance capacity • 99% of all frames worldwide are produced in Italy, China and wider Asia • Focusing on three main engines: product development, the purchase to pay process and supplier and relationship management, Safilo collaborates with suppliers across the whole manufacturing process • Safilo works with suppliers to create a yearly joint business plan (JBP), undertaking quarterly reviews, as well as visiting suppliers at their own locations • Soon to renew its 2020 vision following on from the appointment of its new CEO this year, Safilo will aim to further transform the business by looking for new opportunities

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SAFILO GROUP

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year-on-year positive procurement efficiencies despite various challenges, Safilo’s unique team, deep knowledge of products and exceptional focus on quality has fully transformed the business.

Implementing data-driven, six sigma problem-solving solutions to tackle quality issues, its dedicated team has delivered the best quality, delivery and cost from the start to support its manufacturing partners, as well as putting forth best-in-the-business engineers and materials experts.

“With the ability to automate produc-

“ Since 2016, we have cut off three weeks in terms of lead time. However, we need to maintain the same quality and service level, as well as reduce costs” — Jorge Gonzalez, Director of Sourcing in Asia and APAC

tion processes, we are open to new supply markets – this is one area of

ment underway on how to remove any

focus for us. Looking at Asia, we want

solvent based elements, so cleaner

to become less China dependent and

processes and the introduction of

be more diversified on the supply

increased bio-materials will definitely

market,” notes Gonzalez.

be a trend for the future,” he concludes.

The business is also set on embed-

“In sourcing, we will be able to

ding greener technologies and pro-

change much faster than any other

cesses to fully disrupt the traditional

internal factory because we are able

eyewear industry.

to leverage our suppliers’ world class

“Some of the materials that we use

expertise.”

are the same as 50 years ago, like cellulose acetate. Now there are new technologies for cellulose acetate, such as new formulations. There is investw w w. m a n u f a c t u r i n g g l o b a l . c o m

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Helping businesses navigate a digital future Whilst undertaking an exceptional digital transformation of its own, KPMG New Zealand is giving businesses the helping hand they need to reinvent their digital strategies

WRIT TEN BY

L AUR A MULL AN PRODUCED BY

ANDY TURNER

KPMG

D

igital transformation is not a new concept: since the advent of the internet,

companies have diligently adopted new digital tools – from blockchain to edge computing — to transform the way they collaborate and do business.

What has changed is the sheer volume of technology options that are now flooding the market. The proliferation of technology choices can be

“ Ongoing digital transformation isn’t always easy.

It requires a clear vision and commitment” — Cowan Pettigrew, Chief information Officer

daunting for business owners and this 90

is where KPMG New Zealand (NZ)

nesses need to identify what problem

intends to offer a helping hand.

they’re trying to solve before they

Renowned for its auditing, tax and

search for technologies. Digital tools

advisory services, the firm is now

are only a plank or toolset that

helping companies navigate the

supports the wider goals of an

swathes of digital tools in the market

organisation.”

so they can achieve their strategic goals.

“Digital transformation isn’t a static

A digitally-driven firm, KPMG NZ has embarked on its own root-andbranch transformation, which is

point in time, it’s a repeating life cycle

helping to bring its strategic vision to

of continuous improvement and

life. Yet, before any company, includ-

service delivery to customers,”

ing KPMG NZ, can embark on such a

reflects Chief Information Officer

mammoth change, Pettigrew believes

Cowan Pettigrew.

IT leaders need to look inwardly first.

“It’s important to understand that

“I feel the realisation that Chief Infor-

isolated digital tools don’t lead to the

mation Officers (CIOs) need to

transformational results that business

transform themselves has been the

owners seek,” he continues. “Busi-

biggest strength I have brought to

OCTOBER 2018

A S I A - PA C I F I C

KPMG NZ,” comments Pettigrew.

THE ‘FANG’ EFFECT

“Being a CIO is no longer a position

Coming into the firm in December 2016,

for purely technical people who drive

Pettigrew notes that one of his biggest

value through infrastructure alone.

challenges as CIO was to transform the

Whilst a technical understanding is

company’s disconnected systems. In

important, the new multi-hat CIOs are

doing so, KPMG NZ is evolving to fulfil its

those who have evolved beyond the

growing need for mobility, collaboration,

technical and provide passionate

integration and, perhaps most impor-

leadership with business-led, custom-

tantly, to meet its growing and ever-

er-facing strategies that enable the

evolving user experience (UX) expecta-

business to realise its vision and goals.”

tions. Indeed, Pettigrew underlines how

E X E C U T I V E P R OF IL E

91

Cowan Pettigrew The role of the CIO now is one of transformation. It’s aligned with business objectives that Cowan assists in defining, implementing and continually transforming so the business stays dynamic and relevant to its customers.

Transformation isn’t a point in time, it’s not a moment - it’s a continuous evolving process that breaks from the old ways, with constant learnings and pivots in direction along the way.

What Cowan’s role in this? With over 25 years in the I.T. industry, he says he provides practical strategic leadership with business led, customer facing strategies that enables the business to realise its vision and goals.

As a multi hat wearing CIO, Cowan lives and breathes these values, seeking to create customers for life by building supported, sustainable platforms that deliver forward facing customer solutions.

w w w. m a n u f a c t u r i n g g l o b a l . c o m

KPMG

the so-called ‘FANG effect’ is elevating

driving customer expectations. Smart

consumers’ expectations. This has

businesses who respond to this will

encouraged KPMG NZ to raise the bar

be a step ahead of the competition.”

to meet their demands.

“The FANG effect has lifted the UX expectation across the board,” he

Pettigrew is keen to deliver technol-

observes. “If the applications don’t

ogies that add value. Yet

collaborate like Facebook, enable

before he talks about

procurement like Amazon, look as

digital tools he

cool as Apple, allow users to consume media like Netflix and search like Google, you’re missing an engagement opportunity with your 92

SUPPORTING FOCUSED STRATEGIES

clients and staff alike. These giants have set the bar for user experience and it’s

OCTOBER 2018

A S I A - PA C I F I C

93

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KPMG

94

believes it’s imperative that compa-

problem you’re trying to solve? and

nies truly grasp their business

what’s the role of digital in that?’

strategy, otherwise they may get

“Ongoing digital transformation isn’t

side-tracked or distracted by new

always easy. It requires a clear vision

digital trends.

and commitment. In my opinion, I think

“’Digital’ by itself is not a strategy, it’s

the ultimate outcome of any digital

a tool,” he asserts. “It’s critical to

strategy is that it delivers back time;

understand that isolated digital

time that can be delivered to the end

strategies generally don’t lead to the

user and which can add value

transformational result that business

elsewhere. At KPMG NZ, our strategy

owners are after. You’ve got to

started with strengthening and

reverse the equation and ask ‘what

stabilising our foundations before

are the business goals? what is the

moving to unlock and transform

OCTOBER 2018

A S I A - PA C I F I C

KPMG

in New Zealand has over 1,000 professionals across 7 cities

CUSTOMER-CENTRICITY Having undertaken its own transformation and been in its clients’ shoes, KPMG NZ understands first-hand the steps businesses need to take to deliver exceptional change. Addition-

Parent group KPMG was founded in

1987

501-1,200 Approximate number of employees

ally, as the only one of the ‘big four’ auditors that is 100% New-Zealand owned, KPMG NZ has an unparalleled understanding of the unique geographic region in which it operates.

“At KPMG NZ everything we do ties back to our purpose of fuelling New Zealand’s prosperity,” Pettigrew says.

“It’s our benchmark for the work we do, the clients we work with and the community projects we get involved in. We also have access to KPMG’s

based on people, process and

global network, drawing on our

technology. This has helped to deliver

member firms in 155 countries

a platform based on data-centricity,

worldwide. This gives us the freedom

that is relevant to our people and

to develop IT services that suit our

business needs, and which is setting

own environment, as well as working

us up for a tech-savvy future.

on bigger picture pieces that are for

“KPMG NZ is on a journey towards

the entire network.”

becoming a sector-led, client-focused

With its feet firmly in both New

technology and data insights compa-

Zealand and global markets, KPMG

ny for our clients,” he adds. “Informa-

NZ has a wealth of expertise to draw

tion technology systems (ITS) is one

upon. The firm provides services to a

of the primary drivers of value and

wide range of industry sectors

efficiencies at the firm.”

including agribusiness, insurance, w w w. m a n u f a c t u r i n g g l o b a l . c o m

95

KPMG

healthcare and more. In doing so,

to understand what they need and

Pettigrew says the firm has become

expect from us, undertaking client

a ‘beacon of insight’ into the New

surveys and market research to

Zealand business landscape. On top

understand our current position versus

of this, Pettigrew highlights how the

where we want to be. Ultimately, we want

firm keeps an ear to the ground to truly

to exceed our client’s expectations –

understand its clients’ challenges.

so it truly is the client that’s driving us

“Any transformation we undertake has

to ensure we have the best tools, the

the client at its heart,” says Pettigrew.

best technology, and the best people

“We have worked to improve the way

to bring these to life.”

we do business so we can provide our

96

clients with sharper, smarter services

DIGITAL PIONEERS

and insights that help them succeed.

KPMG NZ has zeroed in on some of

We’re constantly listening to our clients

the most disruptive technologies in

CLICK TO WATCH : ‘DO YOU NEED CORPORATE GOVERNANCE? KPMG NEW ZEALAND’

OCTOBER 2018

A S I A - PA C I F I C

the sector to achieve this, particularly looking at tools like: artificially intelligent computing and robotic process automation as a service, blockchain, intelligent customer relationship agents, insight platforms, data management applications, security automation and more.

Amalgamated with new value-driven operating models like technology for business management (TBM) to keep pace with disruption, the company

97

“ Digital transformation isn’t a static point in time, it’s a repeating life cycle that is a key element of continuous improvement and service delivery to customers” — Cowan Pettigrew, Chief information Officer

w w w. m a n u f a c t u r i n g g l o b a l . c o m

Make Digital Transformation and the Modern Workplace a practical reality.

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lexelsystems.com

A S I A - PA C I F I C

“At KPMG NZ everything we do ties back to our purpose of fuelling New Zealand’s prosperity” — Cowan Pettigrew, Chief information Officer

AI engine and the Microsoft Office 365 suite, KPMG NZ is well placed in our strategy to stay ahead of the curve.

“Meanwhile, Lexel systems provide critical support for our IT operations including our all-important network, unified communications and sysops management. They are deeply embedded within the business providing thought leadership on ways to improve the business in line with our ITS strategies.”

has collaborated closely with pioneers in the technology sector.

“Having these key partners along-

Looking forward, Pettigrew is optimistic about the future for KPMG. Driven by technological innovation,

side us and deeply embedded within

Pettigrew believes KPMG NZ has

the business provides me with both

cemented itself as a top choice for

the advice, thought leadership and

any business seeking advisory or

sound boarding I need on a daily

sector-led help. “In the next five to

basis,” reflects Pettigrew. “Leveraging

ten years, I see KPMG NZ as a clear

the best from Lenovo for mobility, and

choice for businesses, establishing

combined with the power of platforms

itself as a beacon of information that

like Imanage Work 10 with the RAVN

businesses can count on.”

w w w. m a n u f a c t u r i n g g l o b a l . c o m

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100

A FORCE FOR GOOD IN THE AUTOMOTIVE SECTOR WRIT TEN BY

L AUR A MULL AN PRODUCED BY

JOSH S TE VENS

EUROPE

101

FORD OTOSAN

MAKING ITS MARK AS BOTH AN AUTOMOTIVE AND MOBILITY COMPANY, FORD OTOSAN’S STRATEGY ISN’T JUST ABOUT SELLING MORE CARS, IT’S ABOUT CREATING NEW AND SUSTAINABLE WAYS TO MOVE

I

t seems that nothing is putting the brakes on Turkey’s burgeoning automotive sector. In 2017, the nation’s vehicle production reached an all-time

high, with the country rolling out approximately 1.75mn vehicles according to the Turkish Automotive Manufacturers Association. Leading the pack, Ford Otosan has vowed to forge a sustainable path in the automotive industry by cham102

pioning leading manufacturing practices and environmental standards.

Owned equally by Ford Motor Company and Koç Holding, Ford Otosan describes itself as the region’s ‘export champion’ and it’s clear to see why. With a production capacity of 440,000 commercial vehicles, 75,000 engines and 140,000 powertrains, the firm stands as the largest commercial vehicle production centre of Ford vehicles in Europe.

Today, by tapping into the expertise of its parent companies, Ford Otosan hopes to tackle some of the biggest questions facing the automotive sector, which have arisen as a result of urbanisation, climate change and demographic changes.

ONWARDS AND UPWARDS: SUSTAIABLE, PROFITABLE GROW In its latest sustainability report, Ford Otosan said that 2017 had been ‘full of success and record-breaking OCTOBER 2018

EUROPE

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FORD OTOSAN

CLICK TO WATCH : ‘A FORD STORY BIR’

104

practices’. The firm not only preserved

The firm’s financial figures make for

its place in Borsa Istanbul’s Sustainabil-

impressive reading but, keen not to

ity Index but has also been included in

be complacent, Ford Otosan has now

the ‘FTSE4Good developing Markets

developed a strategy to keep up this

Index’, an internationally-renowned index

sustainable growth.

in responsible investment. This view is

Digitisation forms a key part of this

clearly echoed by Ford Otosan’s General

plan and, in light of this, Ford Otosan

Manager, Haydar Yenigün.

has increasingly invested in technology

“In 2017, we maintained our position

to create the so-called ‘future of mobility.’

as the leader in commercial vehicles

With extra funding allocated to data

as our market share rose to 30.3%,”

analytics, cybersecurity, coding and

Yenigün explains. “We also became the

more, Yenigün says the firm is adapting

export leader of Turkey once again,

to Industry 4.0 and cementing its

achieving $4.9bn in export revenues.”

leadership in the sector.

OCTOBER 2018

EUROPE

“One of our projects, the most important perhaps, has been the company’s digital platform transformation,” he says. “This involves moving everything that the company has created to a digital platform and managing all future innovation and business opportunities on this platform.”

“ SUSTAINABLE MOBILITY SOLUTIONS ARE NOT ONLY THE MOST IMPORTANT COMPONENT OF SMART CITIES, THEY ALSO CAN MAKE A BIG DIFFERENCE BY MAKING PEOPLE’S LIVES EASIER”

In a similar vein, Ford Otosan has also used technology to transform the customer experience of sale and after-sale inter-

Haydar Yenigün, General Manager at Ford Otosan 105

E X E C U T I V E P R OF IL E

Haydar Yenigün Haydar Yenigün graduated from Yıldız Technical University in Mechanical Engineering and joined Ford Otosan in 1987. He got the opportunity to serve in different departments in production and worked as a Project Engineer between 1992 and 1996. He continued serving in different positions during the establishment of the Kocaeli Plant after the shares of Ford Motor Company and Otosan A.S. were equalised in 1997. He became Project Leader in 1998. He was appointed as Ford Otosan General Manager and became a Member of the Board of Directors on 15 February 2012.

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

FORD OTOSAN

$6.9bn Approximate revenue

1959

Year founded

10,000 Approximate number of employees

EUROPE

107 actions. In a project known as iDEAL,

capabilities. Yenigün says that the firm

the company has developed an app that

now boasts the largest technology and

supports the development of its dealers

R&D base in the Turkish automotive

in areas such as digitisation, employee

market.

improvement, customer satisfaction and institutionalisation. “As a result of the

SCALING UP LOW-EMISSION VEHICLES

app, the rate of returns for sales has

Climate change is perhaps one of the

improved by 60% through data analytics,”

greatest challenges facing the automo-

notes Yenigün. “We have also achieved

tive sector and Ford Otosan has taken

an additional turnover of US$15mn in

up the fight. As a result, the company

after-sale processes. Our goal is to

is striving to deliver fuel efficiency and

fully roll-out the platform by 2019.” On

reduce its emissions by developing

top of this, the automotive giant has

cutting-edge engines, transmission

also invested heavily in its R&D

boxes, electronic systems and more.

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FORD OTOSAN

FACTS

• With a production capacity of 440,000 commercial vehicles, 75,000 engines and 140,000 powertrains, Ford Otosan is the largest commercial vehicle production centre of Ford vehicles in Europe • Ford Otosan is one of the top three exporting companies of Turkey since 2005.

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“Along with the growing sharing economy in the automotive industry, autonomous and electric vehicles are paving the way towards a strong trend of change,” observes Yenigün.

“At Ford Otosan, thanks to the vision of both Koç Holding and Ford, we have been able to start these activities much earlier.

“Our partner Ford is working on smart mobility, electric and autonomous vehicles, taking firm and quick steps,” he continues.

“With an investment of $11bn, Ford aims to develop 40 hybrid and electric vehicles by 2022 and we are happy to report that one of these — the Ford Custom — is manufactured in Turkey.”

Alongside 11 other peers, Ford Otosan has also given a helping hand to the optiTruck project, which aims to reduce the greenhouse gas emissions of heavy commercial vehicles.

The prototype, Yenigün adds, is planned to be over 20% more efficient than the Euro 6 standard heavy commercial vehicle.

SMART MOBILITY, SMART CITIES According to a new report by Grand View Research, the global smart cities market is forecast to reach $2.57trn by 2025 and it seems that Ford Otosan hasn’t neglected this booming market. Through its ‘City of

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FORD OTOSAN

110

“ ALONG WITH THE GROWING SHARING ECONOMY IN THE AUTOMOTIVE INDUSTRY, AUTONOMOUS AND ELECTRIC VEHICLES ARE PAVING THE WAY TOWARDS A STRONG TREND OF CHANGE”

Tomorrow’ vision, the company is embarking on internal entrepreneurship projects that aim to support smart mobility solutions.

“We are working on the development of safe, efficient, life-enhancing and low-emission transportation models and we’re also aiming to ensure the sustainable

Haydar Yenigün, General Manager at Ford Otosan

production of these technologies for the smart cities of the future,” comments Yenigün.

“Sustainable mobility solutions are not only the most important

OCTOBER 2018

EUROPE

CLICK TO WATCH : ‘FORD TRUCKS – IAA HANNOVER COMMERCIAL VEHICLES FAIR – LIVE STREAM’

component of smart cities, they also can

the app uses a smart algorithm to

make a big difference by making

predict future traffic density as well

people’s lives easier. To this end, our

as the total cost of trips and emission

goal is to contribute to sustainable

values. So far, the tool has been down-

solutions by working on vehicles with

loaded by 233,000 users with the

low emissions and smart technologies.

company aiming to reach 475,000

Besides this, we are also working with

users by the end of 2019. In doing so,

governmental organisations to make

the firm hopes to confine urban

city life more liveable.”

congestion to history.

One such project that hopes to support smart city initiatives is Easy

INVESTING IN PEOPLE

Route, a mobile app created by Ford

Ford Otosan’s sustainability efforts

Otosan. Providing up-to-date traffic

aren’t just restricted to environmental

news, traffic forecasts and navigation,

issues or technology; the company w w w.ma nufa c t uri nggl o b a l. com

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FORD OTOSAN

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is also keen to promote an inclusive workforce in the belief that its diversity is its strength. Just two years awgo, for instance, Ford Otosan appointed the industry’s first female Chief Digital Officer, Hayriye Karadeniz. Today, the automotive company hires around 1,700 female employees, a 30% increase compared to 2015, and Yenigün is keen to keep up this momentum.

He says: “One of the biggest problems facing the business world is the discrimination experienced by women during recruitment. Our goal is to employ one woman for every two candidates in our selection and placement process.”

Ending last year on a record-high, Ford Otosan’s vision for the future is a simple one: to become the most valuable and more preferred industrial company in Turkey. With its environmentally and socially conscious ethos, it seems that this goal is well within its grasp.

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