S e p t e m b e r 2 0 15
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Technology Google Glass is making a comeback TOP 10 How Big Data Is Changing The Industry SPECIAL FEATURE Libyan Iron and Steel
The Robot Revolution
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EDITOR’S COMMENT
Welcome to the future W E L C O M E T O T H E S E P T E M B E R edition
of Manufacturing Global. In this issue we are focusing on the future of manufacturing talking about robotics, Google Glass, and big data. Love it or hate it, technology is shaping our lives in every way, from the products we interact with as consumers to the machinery we use at work. The manufacturing industry is one of the most advanced in the world, leading the path for innovation and development, so it’s no wonder Google has chosen the sector to pilot its new Edition Enterprise Glass tech; it’s one of the most ‘connected’ industries in the world; and robotics replacing the role of humans is a realistic possibility in the near future. Everything seems to be moving at lightening pace. While it’s exciting, manufacturing firms need to be cautious of embracing this technology without thorough consideration. We hope some of our experts can shed some light for you.
Enjoy the Issue
Abigail Phillips Associate Editor abigail.phillips@wdmgroup.com 3
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CONTENTS
8
PEOPLE & SKILLS
The Robot Revolution
TECHNOLOGY
14
Google Glass Is Making A Comeback And It Has Its Eye On The Manufacturing Sector 6
September 2015
20
Ways Big Data Is Revolutionising Manufacturing
Company Profiles AFRICA 28 Libyan Iron and Steel
CANADA
28
Libyan Iron and Steel
38 Packers Plus
AUSTRALIA 46 PPC Moulding
LATIN AMERICA 56 Tachi-S Mexico 74 Marcopolo – Superpolo 88 Tecnoglass
46
PPC Moulding Tecnoglass
88
BRAZIL 100 Munksjo Brasil 112 Aditya Birla
74 56
Marcopolo - Superpolo
38
Tachi-S Mexico
Packers Plus
7
PEOPLE & SKILLS
The Robot Revolution
The robot revolution is coming, but how quickly and to what scale? Manufacturing Global investigates Writ ten by: Abigail Phillips
THE ROBOT REVOLUTION is here and it’s shaking up the global manufacturing sector for good. According to a recent survey conducted by Grant Thornton, which asked 2,571 executives in 36 economies how the see robotics influencing their industry, a staggering 43 percent of manufacturing companies across the globe expect to replace more 8
September 2015
than 5 percent of their employees with robots in the near future. As more and more R&D is expended on replacing human intelligence with machines, the volume of robots on manufacturing production lines across the globe may soon radically increase. As it stands, more than half of businesses see themselves keeping their employees on board however, with 28 percent stating those
employees would be utilised in other roles, for example operating the robots that ‘took over’ their original positions. While the automotive manufacturing sector is likely to be the first, and most dramatically affected by the shift to automation, other industries such as the renewable sector, the technology industry, and the food and drink sectors are positioned to embrace the robotics trend.
Steven Perkins, Global Leader for Technology at Grant Thornton, reflects on the coming changes: “In this digital age, businesses are looking to technology at an ever increasing pace. Post-financial crisis, firms continue to strive for greater efficiency and better productivity. But fifty years on from PCs going into mass production, costs of capital are low while labour costs increase. As businesses consider 9
PEOPLE & SKILLS whether to invest in staff or machines, for many, the latter is becoming the more cost-effective option.” A trend towards tech investment The research further highlights that current R&D trends are accelerating the development of automatized processes. The number of businesses that invested in technology developments increased from 23 percent in 2011 to 26 percent in 2014, and will hit a five year high in 2015 as spending increases a further 29 percent. The question of whether highly creative humans are creating the technology that will make noncreative jobs – yet intelligent jobs – redundant in the near future is still an open question to Perkins, who adds: “Are robots set to replace the workforce? That may be premature. Technology has been introduced to the workplace since the industrial revolution and job roles have adapted accordingly. In fact, it’s likely the wrong question. We should be asking: ‘What human capabilities will be most enhanced?’ Clearly, the rise of artificial intelligence (AI), supercomputers and sensors previously the preserve 10
September 2015
‘As more and more R&D is expended on replacing human intelligence with machines, the volume of robots on manufacturing production lines across the globe may soon radically increase’
THE ROBOT REVOLUTION
of science fiction will have profound consequences for jobs, pay and the makeup of workforces.” Robot versus human One consequence of the trend may be that, with the movement of people from high paid to lower paid – thus less intelligent – work, income inequality will increase further. Perkins reflects that: “This poses significant societal challenges. Technology is part of our lives in ways we couldn’t have imagined two decades ago, from the rise of big data to the app revolution. That trend will continue and it means the shape and size of workforces of the future will look radically different to those of today. How businesses and governments deal with these changes will be critical to long term economic growth prospects.” The surveyed employers are not immediately planning to cut staff. More than half of the surveyed companies plan to redeploy affected staff. Of those kept, 28 percent expect the old employee to operate the machinery that replaces them. However, Perkins stresses that the long term effects of automation remain unknown. “The roles reserved for 11
PEOPLE & SKILLS
‘While the automotive manufacturing sector is likely to be the first, and most dramatically affected by the shift to automation, other industries such as the renewable sector, the technology industry, and the food and Caption to the image drink sectors are positioned to embrace the robotics trend’
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September 2015
THE ROBOT REVOLUTION
humans could look very different years from now and some will feel the effects more sharply. Automation in the first industrial revolution made us stronger, made us faster in the second, and in the third will give tremendously greater insights. The possibilities are enormous.� Grant Thornton is not the only consulting firm to consider the looming effects of automation. Research by Aecus finds that robotic process automation is already implemented by a large minority (32 percent) of manufacturing firms, with 44 percent more planning to deploy the technology in the next three years. Alsbridge expects, with the help of robots, clients of their robotics hub may be able to achieve a 60 percent reduction in the cost of many IT services. While recent research from Deloitte and the University of Oxford finds up to 1/3 of UK jobs might disappear in the near future with the wide spread social and economic consequences still needing to be carefully considered by stakeholders. It’s clear that the robot revolution is coming, but how quickly and to what scale, we are still unsure. 13
TECHNOLOGY
Web3 W The World’s F Google Glass Is Making AProcureme Comeback And It Has Its Eye On The W R I T T E N B Y:
Manufacturing Sector Is the manufacturing sector ready for Google Glass, the Enterprise Edition? Wr i t t en by: AB I G A I L PH I LLI PS
Wearable: First Wearable ent System SAM JERMY
15
TECHNOLOGY GOOGLE GLASS IS back with a brand new mission. After retiring Google Glass in January, Google is softly pitching a new version of the face computer for use in the workplace, and it has set its sights firmly on the manufacturing sector. According to reports, Google is aiming to get the new version of Glass in the hands of professionals in the healthcare, manufacturing and energy industries by this autumn. The new business-oriented Glass has improved battery life, a faster processor and a more rugged, foldable design – rumour has it, the new device will also be waterproof. Google Glass was first introduced
on a limited basis in 2013 as a headset sporting a tiny screen that overlaid graphics in a wearer’s field of view. It also came with a camera, which raised privacy concerns about the device, even causing some bars and restaurants to enact “No Glass” policies. Google eventually ended the initial Glass program without releasing a full-bore consumer product. “The thing that we did not do well, that was closer to a failure, is that we allowed and sometimes encouraged too much attention to the program,” Google’s Astro Teller said in March about Google Glass’ lifespan. Rebranding Glass as a workplace productivity tool rather than a
According to reports, Google is aiming to get the new version of Glass in the hands of professionals in the healthcare, manufacturing and energy industries by this autumn
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September 2015
GOOGLE GLASS
Rebranding Glass as a workplace productivity tool rather than a consumer gadget could help Google sidestep privacy concerns. consumer gadget could help Google sidestep privacy concerns. So what does this mean for the manufacturing sector and how could Google Glass help boost productivity, efficiency, and safety on the production line? Google Glass: The Enterprise Edition The new version of Glass is unlike the previous Explorer model we are all familiar with. Instead of a wire going across your face, holding the prism in front of your eye, this new model features a button-and-hinge system, allowing users to attach the mini-computer to any pair of glasses
they own. It is stated that Google is currently working with software developers to boost features of the device for the businesses it will serve, making it much more valuable for business applications such as manufacturing, where companies and specialist software providers can tailor applications for specific requirements. Following the original’s spectacular flop with consumers, the new device will not be called Google Glass 2.0, but is being developed under the name Enterprise Edition (EE). This is seen as a spin-off of the Explorer Edition, and will feature incremental improvements and will 17
TECHNOLOGY be aimed solely at the workplace. The new design is made to be usable in a hospital or factory, with a focus on practicality, and the original’s focus on fashion and glamour will be gone. Earlier in July leaks from the company showed a device with a bigger viewing prism for a better visual display, despite complaints that Google Glass was too bulky and nerdy. The EE is also said to include an Intel Atom processor for improved performance and battery life. Some users of Glass, which was
pulled in January following poor sales and mixed reviews, complained of eye strain after prolonged use. However the new glasses are designed to be used for more complicated tasks, for example assembling a car engine, and therefore will not be required to be worn for hours at a time. That being said, Google has reportedly decided to include a larger screen in its next design, and final iterations of the EE will include a prism that extends further, allowing wearers to glance upwards and focus on the
Joel Neidig is an engineer at Indiana Gear (a division of ITAMCO) that was awarded a $75,000 prize for his research project titled “Expanding Manufacturing’s Vision: MTConnect and Google Glass.”
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September 2015
GOOGLE GLASS
screen more comfortably than before. Sources suggest the screen resolution of the EE might be better too. In December, The Wall Street Journal reported that the forthcoming device will have a new low-power Intel chip in a bid to boost battery life. This has been confirmed by 9to5Google’s sources, who say it will boast an Intel Atom chip, although it’s not clear which model. This could potentially make the smart spectacles a bit faster than top of the range Android smartwatches. Learning to run Google has previously vowed to design Glass ‘from scratch’ and papers filed by Google reveal the tech giant has successful tested a mystery device dubbed GG1, which is thought to stand for Google Glass. The model number is the biggest hint at the device being the nextgeneration headset, although tablets and phones also come with these features so it could be a different device entirely. Aside from saying it was committed to working on the future of the product, Google gave no timescale for the launch of an improved product.
‘Glass was in its infancy, and you took those very first steps and taught us how to walk. Well, we still have some work to do, but now we’re ready to put on our big kid shoes and learn how to run’ – Google Glass Development Team ‘It’s hard to believe Glass started as little more than a scuba mask attached to a laptop,’ the Glass team said in a post on Google+ last month. ‘We kept on it, and when it started to come together, we began the Glass Explorer Program as a kind of ‘open beta’ to hear what people had to say. Glass was in its infancy, and you took those very first steps and taught us how to walk. Well, we still have some work to do, but now we’re ready to put on our big kid shoes and learn how to run.’ 19
TOP 10
TOP10
Ways Big Data Is Revolutionising Manufacturing Increasingly, manufacturers in process-based industries are using advanced analytics to increase yields and reduce costs. Manufacturers have an abundance of operational and shop floor data that is being used for tracking. Manufacturing Global takes a look at 10 ways in which big data and advanced analytics applications and platforms can deliver operational insights.
Written by: Abigail Phillips
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TOP 10
Quantify how daily production impacts financial performance with visibility to the machine level
10 Service becomes strategic and a contributor to customers’ goals by monitoring products and proactively providing preventative maintenance recommendations Manufacturers are starting to look at the more complex products they produce as needing an operating system to manage the sensors onboard. These sensors report back activity and can send alerts for preventative maintenance. Big data and analytics will make the level of recommendations contextual for the first time so customers can get greater value. General Electric GE -4.00% is doing this today with its jet engines and drilling platforms for example. 22 September 2015
Big data and advanced analytics are delivering the missing link that can unify daily production activity to the financial performance of a manufacturer. Being able to know to the machine level if the factory floor is running efficiently, production planners and senior management know how best to scale operations. By unifying daily production to financial metrics, manufacturers have a greater chance of profitably scaling their operations.
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B I G D ATA I S R E V O L U T I O N I S I N G M A N U FA C T U R I N G
Selling only the most profitable customized or build-to-order configurations of products that impact production the least.
08 Breaking quality management and compliance systems out of their silos and making them a corporate priority It’s time for manufacturers to take a more strategic view of quality and quit being satisfied with standalone, siloed quality management and compliance systems. The McKinsey article and articles listed at the end of this article provide many examples of how big data and analytics are providing insights into which parameters matter most to quality management and compliance. The majority of these parameters are corporate-wide, not just limited to quality management or compliance departments alone.
For many complex manufacturers, customized or build-to-order products deliver higher-thanaverage gross margins yet also costs exponentially more if production processes aren’t well planned. Using advanced analytics, manufacturers are discovering which of the myriad of build-to-order configurations they can sell with the most minimal impact to existing production schedules to the machine scheduling, staffing and shop floor level.
07
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TOP 10
Greater visibility into supplier quality levels, and greater accuracy in predicting supplier performance over time.
06 Measuring compliance and traceability to the machine level becomes possible Using sensors on all machinery in a production center provides operations managers with immediate visibility into how each is operating. Having advanced analytics can also show quality, performance and training variances by each machine and its operators. This is invaluable in streamlining workflows in a production center, and is becoming increasingly commonplace 24 September 2015
Using big data and advanced analytics, manufacturers are able to view product quality and delivery accuracy in real-time, making trade-offs on which suppliers receive the most timesensitive orders. Managing to quality metrics becomes the priority over measuring delivery schedule performance alone.
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B I G D ATA I S R E V O L U T I O N I S I N G M A N U FA C T U R I N G
04 Integrating advanced analytics across the Six Sigma DMAIC (Define, Measure, Analyze, Improve and Control) framework to fuel continuous improvement
Better forecasts of product demand and production, understanding plant performance across multiple metrics and providing service and support to customers faster are the top three areas big data can improve manufacturing performance These findings are from a recent survey LNS Research and MESA International completed to see where big data is delivering the greatest manufacturing performance improvements today.
03
Getting greater insights into how each phase of a DMAIC-driven improvement program is working, and how the efforts made impact all other areas of manufacturing performance is emerging today. This area shows great potential to make production workflows more customer-driven than ever before. 25
TOP 10
Accelerating the integration of IT, manufacturing and operational systems making the vision of Industrie 4.0 a reality Industrie 4.0 is a German government initiative that promotes automation of the manufacturing industry with the goal of developing Smart Factories. Big data is already being used for optimising production
02 26 September 2015
schedules based on supplier, customer, machine availability and cost constraints. Manufacturing value chains in highly regulated industries that rely on German suppliers and manufacturers are making rapid strides with Industrie 4.0 today. As this initiative serves as a catalyst to galvanize diverse multifunctional departments together, big data and advanced analytics will become critical to its success.
B I G D ATA I S R E V O L U T I O N I S I N G M A N U FA C T U R I N G
01 Increasing accuracy, quality and yield It is common in biopharmaceutical production flows specifically to monitor more than 200 variables to ensure the purity of the ingredients as well as the substances being made stay in compliance.
Using advanced analytics, a manufacturer is able to track the parameters that most explained yield variation. Based on this insight manufacturers are able to increase a vaccine’s yield, which directly correlates into cost savings.
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LIBYAN IRON AND STEEL GROWING IN THE FACE OF ADVERSITY Written by Nye Longman Produced by Anthony Munatswa
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L I B YA N I R O N A N D S T E E L
Expanding locally and internationally, the steel manufacturer is a beacon of hope amid trying circumstances
L
ibyan Iron and Steel Company (LISCO), is working against the odds to help rebuild the country’s economy after the 2011 revolution and is doing so with a carefully considered strategy to expand its 60 percent iron and steel market share in Libya. The company, headed by its Chairman Dr Mohamed Elfighi, is facing the greatest challenge of its existence, yet at the same time it is pushing forward with an ambitious output expansion backed up by maintaining globally recognised standards. Operations LISCO is one of the largest industrial companies in North Africa and produces a range of iron and steel products. It is owned by the Libyan Government and employs roughly 6,800 people across its facilities; liquid steel
LISCO is owned by the Libyan Government and employs roughly 6,800 people across its facilities
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July 2015
AFRICA
LISCO is one of the largest industrial companies in North Africa
production stands at 1.5 million tonnes per year and its annual revenues stand at approximately one billion Libyan Dinars. Elfighi was frank about how stability issues had slowed the company’s operations but these had not prevented the company from looking to the future and in fact had proven to be a source of innovative thinking. He said: “Before the revolution we invested roughly one billion Libyan Dinars on a large expansion to increase annual steel production to 4 million tonnes per year. Some plants have already been finished and some are ready for commissioning but because of the situation in Libya contractors have left the sites. Now we are in negotiation with Danieli to get remote
4 Million Tonnes The Annual Steel Production Of Libyan Iron And Steel
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assistance for delivering a new bar mill.” Iron Plant LISCO’s Direct Reduced Iron (DRI) plant comprises three production units; two of which have a potential annual output of 1.1 million tonnes while the third has the addtional capacity for the production of 650,000 tons per year of hot briquetted iron (HBI). DRI is produced by reducing various forms of iron ore billets into iron using locally available natural gas; HBI refers to a compacted version of this product, which is easy to transport and handle.
The company’s steel production is spread across two separate facilities, which allows
Steel Plants The company’s steel production is spread
SUPPLIER PROFILE
it to produce several different steel products
GONTERMANN-PEIPERS GMBH
Gontermann-Peipers GmbH (GP) was founded in 1825 and we are currently moving from the 6th to the 7th generation. The company is still 100 percent family owned and operates two plants in Siegen – Germany. In terms of roll production, GP is focused on high added value work and backup rolls up to finished weight of 265 tonne per piece with an export share of over 80 percent. To achieve this goal approximately 4 percent of the yearly turnover is spent on research and development of new grades. Every year investments of €6-8 million from of our own resources are realized to upgrade and modernize the manufacturing facilities.
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L I B YA N I R O N A N D S T E E L
LISCO is now exporting all its
across two separate facilities, which allows it to produce several different steel products. Its billets and blooms plant has an annual designed production capacity of 670,000 tonnes of liquid steel which converts to 630,000 tonnes; this was expanded in 2008 to produce one million tonnes. The plant uses three electrical arc furnaces which each have a capacity of 90 tonnes. Complementing this facility is LISCO’s steel slab plant which has an equal number of 90ton arc furnaces providing a designed annual output of 650,000 tonnes of liquid steel that converts to 611,000 tonnes per year of slabs.
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AFRICA
Competitive Position Operating in the eastern part of the country is extremely difficult due to security concerns, but a new threat has arisen since 2011 in the form of competition from abroad. Elfighi said: “The Libyan market is now open to imports from China, Ukraine, and Turkey; from everywhere.” Building up LISCO into a recognisable brand has proven to be a timely solution to this new problem, Elfighi said: “We are concentrating on the value and quality of our products, as well as improving costs and the delivery times. LISCO is well known for being number one for quality in Libya.” Achieving recognition has also been approached laterally, through obtaining various assurances for good governance which include ISO 14001, 9000 and 18000 accreditations. Paying attention to its brand, LISCO LISCO is well known for being number one for quality in Libya.
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L I B YA N I R O N A N D S T E E L
“Since 1998 LISCO has also been working towards a more diverse product base and has achieved this goal quite substantially” – Mohamed Elfighi, Company Chairman
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September 2015
isnow exporting all its products worldwide, especially to Southern Europe, China, Turkey, and to many Arabic nations. Since 1998 LISCO has also been working towards a more diverse product base and has achieved this goal quite substantially. Forming a single plant, its galvanised coils section produces 80,000 tonnes annually, while its painted coils line stands at 40,000 tonnes. The company has an additional four mills which enable it to value-add to its steel products. Its bar and rod mill consist of two lines each producing 400,000 tonnes annually. It also produces light and medium sections of varying
AFRICA
Company Information INDUSTRY
Manufacturing HEADQUARTERS
Misrata, Libya FOUNDED
1979 EMPLOYEES
6,800 REVENUE
1 billion Libyan Dinars
sizes and dimensions through a dedicated mill with an annual capacity of 120,000 tonnes. Furthermore, its hot rolled coil production stands at 580,000 tonnes in its respective plant, while cold coil plant production has an annual capacity of 140,000 tonnes. LISCO’s path has not been the easiest, which perhaps goes to show why the company is performing so well. It is expanding in the face of encroaching imports from around the world and is doing so while some areas of the country are still unstable. As the country begins to invest in infrastructure again, the company will be perfectly positioned to grow with Libya.
PRODUCTS/ SERVICES
Iron and Steel Manufacturer
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Packers Plus Oil and Gas on the Cutting Edge
With a focus on growth and innovation, Packers Plus looks to stay ahead of the industry curve. Written by: Sasha Orman Produced by: Mike Becker
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PA C K E R S P L U S
Packers Plus employee uses a manual assembling tool
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e started our company with three core values: first being innovation, second being operational excellence, and third being customer intimacy,” says Dan Themig, President and CEO at Packers Plus. When that company was formed in 2000, it was a small startup. Today it is one of the largest companies in its industry, with nearly a thousand employees and a strong reputation for creative and progressive tooling in the oil and gas industry. “If you ask most people about Packers Plus and what we’re known for, it’s bringing real game changing 40
September 2015
innovation to the industry,” says Themig. “One of the reasons that North America now has a plentiful supply of natural gas, as well as a plentiful supply of oil, is because of some of the innovations our company has brought forward.” With further growth in the works and new territories to work with, Packers Plus has plans to keep bringing that innovation to the industry it supports. Growing in Houston “One thing we believe in is being close to our customer base,” says Marlon Leggott, Chief Production
CANADA
Automated assembly in Packers Plus manufacturing facility in Edmonton
Officer at Packers Plus. This explains the company’s large presence in Alberta, close to Canada’s natural gas and oil fields, as well as its satellite operations in critical regions from Saskatchewan and Williston to Dubai. It also explains the new larger Packers Plus facility that is currently under construction in Houston, Texas. Featuring an engineering and manufacturing campus on site, Packers Plus is confident that the new facility will help the company provide its southern clients with significant added value on a level that it is currently able to provide in Canada. “What we believe is that it’s going to allow us to bring a quicker design and manufacturing capability to the end user, as we can have our product on location in a much quicker time frame,” says Leggott. “It allows us to bring in
“We tend to anticipate customers’ needs before they’re asking for it… we don’t sit and analyze our competitors at any length, because if you’re just watching your competitors you tend to be a follower instead of a leader” – Dan Themig, President and CEO
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PA C K E R S P L U S some new innovation, so we believe from that standpoint it’s going to be a big benefit for our client base.” According to Leggott, this added agility will also help Packers Plus differentiate itself in the competitive oil industry throughout Texas and beyond. “We can come in, design a product, and get it to our customers in a very quick and nimble way— most of the larger guys have a difficult time doing that—and this is also going to allow us to support some of the other areas of the
world over the short term in a much quicker fashion just from a logistics standpoint alone,” he explains. With a stronger hub, the new Houston facility could open up major possibilities not just in the United States, but also abroad. Anticipating the industry’s needs In a competitive field like oil and gas, staying on top means not worrying about what the competition is doing, but focusing on the innovations
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that only you can provide. At Packers Plus, this philosophy is paramount and a strong predicator of the company’s success. “One of the reasons we’re really known as an innovative company is that we tend to anticipate customers’ needs before they’re asking for it,” says Themig. “We don’t sit and analyze our competitors at any length, because if you’re just watching your competitors you tend to be a follower instead of a leader. Our goal and objective is to intimately know our customers so that we are able to respond when they have technology needs, and really to anticipate their needs.” Packers Plus applies this focus on forwardthinking innovation not just to the products it manufactures, but also to its shop floor processes, from manufacturing improvements to full traceability through state-of-the-art ERP software. Even in 2009 when the industry was in a downturn, Packers Plus was preparing to the future, investing in robotics and automation to enhance its manufacturing capabilities for when the industry recovered. “This allowed us to lead the industry into hydraulic fracturing of shales and the open hole technology area once we came out of that downturn—it really was a boon for us,” says Leggott. A forward thinking culture Such a business model requires a lot of calculated thinking, but that kind of consideration is second nature to Packers Plus.
Packers Plus fielnd hand prepares the completion system before installation
“The value proposition for our customers is that all this excellence in manufacturing gives them reliability and repeatability” – Ian Bryant, COO
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PA C K E R S P L U S
A Packers Plus coordinate measuring machine (CMM) during the QA/QC process
“It’s really ingrained in our culture—it’s a very entrepreneurial mindset,” says Themig. “Our view is that the world moves pretty fast—for us to remain leaders in innovation in the industry, and to maintain that reputation, we have to be able to anticipate the needs of the industry, engineering in a fraction of the time compared to our big competitors, and we have to be able to work in conjunction with our customers.” By succeeding in those goals, the company culture of Packers Plus has played a vital role in propelling the company toward success. “It’s really given us a unique reputation in the industry,” says Themig. “That’s a massive accomplishment for a company been in business for just over 14 years.”
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The necessity of quality The tagline for Packers Plus is simple: “do it once, and do it right.” This could be a strong mantra for myriad businesses in any given field. But for an operation like Packers Plus, operating in the particular parameters of oil and gas, it’s especially critical. “The reason that’s important is that the technologies we’re talking about are run to the bottom of well bores,” says Packers Plus COO Ian Bryant. “It’s a bit like a space rocket—if you have a faulty component you generally can’t get up there to fix it, and once our equipment is run to the bottom of a hole, it’s very rare that we’re going to pull it out again. That’s why it has to function right the first time, and that’s why we’ve been so passionate
CANADA
in our discussion of quality. If it doesn’t work when it’s down there, that’s a problem.” As Bryant explains, the importance of attention to traceability and quality within its innovation at Packers Plus—and the peace of mind this gives to clients—is clear. “The value proposition for our customers is that all this excellence in manufacturing gives them reliability and repeatability, when our tools get to the bottom of a hole and have to work right the first time.” Always looking ahead “I’ve always been told throughout my career you’ve got quality, you’ve got deliverability, and you’ve got cost effectiveness but only ever have two of those three—you can never get all three,” says Leggott. “We don’t believe that, and as a matter of fact we’ve disproved that statement. We continually provide highest quality at the best delivery that’s also very cost effective. But we realize that, if we just stay where we’re at, that won’t be the case forever.” This understanding keeps Packers Plus driving always toward new efficiencies and new innovations that will help move the industry forward. “So we continually look at our processes to make sure that we stay at that level and lead the industry into the next level,” says Leggott. “It’s just something that we don’t stop doing. It’s ingrained in our psyche here: if we’re standing still we’re going backward. So we will continue to move ahead in what we do.”
Company Information INDUSTRY
Oil and Gas HEADQUARTERS
Bow Valley Square 2 Suite 2200, 205 5th Avenue SW Calgary, AB Canada, T2P2V7 FOUNDED
2000 EMPLOYEES
850 REVENUE
Not Disclosed
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PPC Moulding Services (LJ Wallace Pty Ltd)
Pursuing Growth
Managing Director Grahame Aston discusses new technologies, a focus on people, and leading his team to success in the medical device subcontract industry Written by: Sasha Orman Produced by: Rob Benson
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P P C M O U L D I N G S E R V I C E S ( L J WA L L A C E P T Y LT D )
PPC MS Factory Floor
T
he PPC Group acquired Moulding Services in 2007. Then the company was small but successful. Today that success is exponential: PPC Moulding Services has grown from 18 to 250 employees, seeing year on year growth and potential ahead as it consolidates itself as a leading player in the medical device market. Filling potential by finding a niche A critical element of PPC Moulding Services’ success in recent years has been its focus on an development in the medical device 48
September 2015
manufacturing. The prior industry knowledge of Managing Director Grahame Aston and the quick assembly of a strong management core has allowed PPC Moulding Services to push forward and rapidly improve its service in the sector. “We’ve focused on things that aren’t easy to do—things that not everybody out there does—and we’ve been able to exceed the expectations of those challenges, identifying new technologies and new opportunities” says Aston. “We travel the world to ensure we are up to date with the latest technologies available in injection molding and
AUSTRALIA
PPC MS Clean Room
we’ve been able to keep up with the trends and go beyond them.” These trends include everything from automation in manufacturing to new temperaturecontrolled techniques that allow PPC to work with more exotic materials, working closely with partners like Arburg in Germany for the latest machinery to realize its visions. “By looking at these new technologies,” says Aston, “we’ve been able to extend ourselves into new markets and using more exotic materials that actually see benefits for our own customers.” A joining of quality and skill One major trait that sets PPC Moulding Services apart from the competition is its range of talent. “We’ve been to assemble a tremendous range
“It gives our customers a lot of confidence that we’ve got a focus on quality… if the parts you’re making are going out with issues, you’re not helping yourself and you’re not helping your customers” – Grahame Aston, Managing Director
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P P C M O U L D I N G S E R V I C E S ( L J WA L L A C E P T Y LT D ) of skill sets in house,” says Aston, pointing out a strong depth of knowledge between the company’s executive team and workers who are skilled in everything from machine tool making to robotics. The company also believes in exercising the wisdom to know when outside sources are required to ensure that customers receive the best work possible. “We’ve never walked away from a challenge
that a customer has presented us with—but we never claim to know something that we don’t,” Aston points out. “We have the ability to research and to partner with the right people that can easily help bring the skill sets that we may not have on board.” PPC also has the certifications to back its commitment to quality, gaining ISO9001 and ISO13485 accreditation. “That’s given our
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COMPOUNDS, APN DELIVERING EXCEEDING EXPECTATIONS APN is a leading Australian manufacturer and distributor of Engineering Plastics, Styrenic, Polyolefin and PVC compounds.
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P P C M O U L D I N G S E R V I C E S ( L J WA L L A C E P T Y LT D ) customers in the medical industry the confidence that we’ve got the right quality policies and procedures—that we understand the importance of traceability and that every product that goes out the door meets these specifications,” says Aston. “It gives our customers a lot of confidence that we’ve got a focus on quality. At the end of the day, if the parts you’re making are going out with issues, you’re not helping yourself and you’re not helping your customers.” According to Aston, many PPC customers have acknowledged this commitment to quality with
consistent recognition as a top supplier. “It’s satisfying to get these awards and to be able to share them with our internal team knowing that what we’re doing in-house is actually reaching and benefitting our customers,” he says. Focusing on people “You’re only as good as the last job that you do,” says Aston. “If you excel at that, then you get an opportunity on the next project when that arises.” With this principle in mind, PPC Moulding Services makes people a high priority. This starts with
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P P C M O U L D I N G S E R V I C E S ( L J WA L L A C E P T Y LT D )
Chloe Aston, Payroll Administration and Quality Officer
a strong philosophy of people management, from the hiring process to training, and an emphasis on developing the right mix of people across all functions. “We’re continuing to invest into the training of our staff in the business, and that’s not just training courses within Australia—we’ve sent many of our moulding technicians to Arburg in Germany for continued training, to ensure we get the best results and understand everything that our machines have to offer,” says Aston. “It’s a challenging thing to keep up with, but we are very focused on making sure that everybody maintains that continued level of training. We’re also expanding our executive team, and we’re looking for people with the right skill sets who are going to enhance not only our business but the support and backup we offer our customers.” But providing good service is about more than having good people in-house. As PPC understands, it’s also about understanding each job as it comes—and that originates with
AUSTRALIA
listening well to the clients you serve to ensure that everyone is working together toward the best end product possible. “We do have a focus on making sure that we listen to our customer, and that everyone within the business is the right person and can provide the required solutions for our customers,” says Aston. “Without supporting our customers there’s no business to have. But if they’re totally happy with the service we offer, there’s no reason why our growth shouldn’t continue.” Looking into the future PPC is certainly on the right trajectory for continued growth. “We see our future as a strong future,” says Aston. “We’re looking at globalizing our footprint—we’re looking at different markets around the world where we can satisfy not only our current customers, but also potentially new customers.” In addition to this global growth, PPC is also pursuing further growth on the home front. “We see that our business in Australia will continue to grow—we’ve had good growth this year, we’ve expanded our workforce this year and we see that as continuing as well,” notes Aston. “We’re certainly budgeting for future growth. With the projects and opportunities we’re still seeing on a weekly basis, we’re confident that this growth is certainly achievable.”
Company Information INDUSTRY
Injection Moulding and Medical Device Manufacture HEADQUARTERS
25 Miowera Rd Villawood, New South Wales Australia, 2163 FOUNDED
2007 EMPLOYEES
250 REVENUE
60 million PRODUCTS/ SERVICES
Injection Moulding and Medical Device Manufacture
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LEADING AUTO SEAT PRODUCE
Either as an original equipment manufacturer or supplier of and dominate its field 56
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Written by: Mateo Rafael Tablado, Associate Editor Produced by: Ana Cárdenas, Director of Projects for WDM Group-LATAM Interviewee: Gonzalo Esparza Pedroza, President of Tachi-S Mexico
OMOTIVE ER from MEXICO
f components, Mexico’s Tachi-S continues to grow
TA C H I - S M E X I C O
T
achi-S Mexico, formerly Industria del Asiento Superior, is a subsidiary of the Japanese company which global presence includes Latin America. The automotive seat manufacturer also produces accessories, armrests and head restraints. Headquarters in Mexico
Mexico’s Tachi-S was founded as a joint venture with Nissan Mexicana in 1991; ten years later Tachi-S Corporate bought 100 percent of the company. In addition to its main plant in Aguascalientes, the manufacturer continuously reinvested to build auxiliary coachbuilders for specific processes in nearby towns, located in the “automotive cluster” of Mexico. Tachi-S has established itself as a Tier 1 supplier to the automotive industry in Mexico.
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The company’s growth in recent years has been foster by the acceleration of export opportunities of auto parts in the Tier 2 level.
Key People
“The automotive industry in Mexico is growing because we are exporting”, simplified Gonzalo Esparza, President of Tachi-S Mexico. Esparza, the administrative leader of Tachi-S Mexico, has more than 20 years of experience in the industry; he started his journey in the company from the purchasing area. Prior to his foray into the auto industry, he worked in the textile sector, a characteristic business in the region. “I had various family operated enterprises dedicated to textile manufacturing, processes, materials, textile control, among others,” shared the President of Tachi-S Mexico.
Gonzalo Esparza President Esparza has been with Tachi-S Mexico for 23 years, he has been with the company since July of 1992, when he took a post in the purchasing department. Prior to his foray into the auto industry, he was developing textiles, specifically clothing, from a family enterprise. Aside from his degree in Biology, Gonzalo Esparza continued his preparation through various specialized and graduate courses in the areas of business administration and finance. Among his greatest attributes within the company, is the successful integration of Tachi-S supply chain, thus reducing costs for imports.
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TA C H I - S M E X I C O
SUPPLIER PROFILE
COMPANY NAME
Employees: Xxxxx Established: Xxxx Industry: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. Ongoing Projects: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Management: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Website: address goes here as the last entry 62
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L AT I N A M E R I C A
Steady growth in Tier 1 and Tier 2 The traditional strength of Tachi-S, has been as an indispensable provider of Nissan’s supply chain, the biggest automotive producer in Mexico. The company also delivers auto parts to Honda and Mitsubishi (international supply).
Car: Tsuru GS production
But in recent years, Tachi-S Mexico found the possibility of increasing its exports of parts by elevating the company’s position as a Tier 2 supplier, in an operation that takes advantage of their know-how resources, which accounts for their traditional activities in Tier 1, where all commercialization is national.
“We are a country that provides high quality manufacturing with skilled labor, and with experienced executives in the industry” – Gonzalo Esparza Pedroza, President of Tachi-S Mexico
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Hiroshi Taguchi, President of Tachi-S Global, in the grand opening of the new plant in Agua
“There is a much higher opportunity to export at a Tier 2 level, which enabled us a bigger and faster growth than other companies in the industry,� said Esparza. Quality control 64
September 2015
ascalientes
Added value in each component Tachi-S Mexico has the advantage of being the producer of most of its materials and of performing many processes “at home�, even if
Sewing Inspection
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L AT I N A M E R I C A
this means manufacturing in diverse factories, this factor allowed their diversification as Tier 2 suppliers. Perhaps the only operation that is beyond their range of activities is stamping. This could suggest that a window of growth could be diversifying into the manufacture of seats for markets other than automotive vehicles, but its growth in the same industry has been such that, at least temporarily, they have postponed the design of other types of seats. “We’ve grown so fast in the last three years, that we have chosen to consolidate our opportunities in the automotive sector,” said Esparza.
Seats done by Tachi-S in México
SUPPLIER PROFILE
Lectra is the world leader in integrated technology solutions that automate, streamline and accelerate product design, development and manufacturing processes for industries using soft materials. Lectra develops the most advanced specialized software (CAD) and cutting systems (CAM) and provides associated consulting services. Its expertise in design and manufacturing enables suppliers of car seat covers, automotive interiors and airbags to achieve their long-term operational excellence and cost reduction objectives. Other important markets for Lectra include fashion (apparel, accessories and footwear), furniture, aeronautical and marine industries, wind power and personal protective equipment. Website: www.lectra.com
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TA C H I - S M E X I C O A supply chain with higher integration A key element in Tachi-S operation has been cost reduction, a factor that has transformed their supply chain with the integration of all domestic suppliers, whether they come from foreign capital, and what has been the primary objective of Gonzalo Esparza since joining the company. Tone-color inspection
Some vendors are aligned to the overall requirements of Tachi-S since the beginning of their partnership, which has increase their growth as suppliers due to this link. Companies such as Die Technologies, PSW (Summa
L AT I N A M E R I C A
Polyurethanes Woodbridge) and Wire Forms Marisa, are suppliers that achieved and maintained Tachi-S trust. “There are key businesses that have been with us for many years, they began as small workshops but now they are well-established companies,” he explained. Strategic investment
Honda Element header
Derived from its commercial growth during the past two years, Tachi-S has experienced internal growth, investing some of this profit in the inauguration of “satellite” production plants. These factories are dedicated to specific tasks, and to the streamline of the overall operation. Among these facilities there is a new plant designed for the final assembly of seats and located in the industrial complex DSP, Douki Seisan Park of Aguascalientes since April 2014, a close distance from Nissan Mexicana. Mexico’s Tachi’s also opened a plant in Calvillo, Aguascalientes, and a second one in the nearby town of Ojocaliente, Zacatecas. These facilities meet specific production requirements, for example, the DSP will immediately fill orders for Nissan so that both plants in Calvillo and Ojocaliente, concentrate their efforts in the production of garments and covers for seats.
Nissan Sentra seats
Seats for Nissan GT-R done by Tachi-S
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Circuito Aguascalientes Sur #115-B Parque Industrial del Valle de Aguascalientes. San Francisco de los Romos, Aguascalientes. MĂŠxico Tel.+52 (449) 158.1777 direccion@grupoA3.com.mx
www.GrupoA3.com.mx
L AT I N A M E R I C A
In the next few years, they also contemplate the installation of a new plant for trim covers and a factory for polyurethane foam. “Most likely, we will expand our investment in the self-supply of new projects,” explained Esparza.
During the opening ceremony of Industria del Asiento Superior in
Work environment
Aguascalientes, Mexico. April, 1991.
The care and consideration offered by Tachi-S Mexico to their workforce, is directly reflected into the final product. Every year the company reduces its turnover rate. Considering that there are no significant differences in the type of benefits and bonuses that Tachi-S offers, but other attributes such as respect in all levels of the organization and the eradication of harassment of any kind. In fact, in many cases when an employee chooses another job offer, it is very likely for he or she to return to seek employment in their former post in Tachi-S. The company has a career development process, which promotes staff according to their attributes, this way they are shaping successors to every position. “We have a solid training plan, people stay with us because they know they can make a career in the company,” said the president of the subsidiary. w w w. t a c h i - s . m x / i n s a . h t m
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TA C H I - S M E X I C O Sustainability
Main headquarters
Some of their efforts to save energy on the premises of Tachi-S Mexico include modified lighting systems to avoid wasting resources and awareness campaigns about energy efficiency.
in Japan
Additionally, Tachi-S does not involve high risks pollutants in its operation to reduce toxic emissions. “Hopefully in the next five years, the use of our electricity comes from clean energy sources,� said Esparza.
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Company Information
The next five years Projections of Tachi-S Mexico imposed achievable objectives according to the capacity the company has shown: to diversify its portfolio of customers, they will keep growing in the market of Tier 2 components, expecting a growth of at least 30 percent by 2020. “Out most important objective is the diversification of customers and reaching markets where Japanese auto companies usually don’t have presence,” concluded the president.
“The working principles we have of a Japanese corporate, combined with the ability of our local employees, is a result of great things”
NAME
Tachi-S Mexico (Industria del Asiento Superior) INDUSTRY
Automotive: manufacture of seats, armrest, headers,etc. HEADQUARTERS
San Francisco de los Romo, Aguascalientes, Mexico FOUNDED
1991 EMPLOYEES
5,600 REVENUE
US $500 million (2013) WEBSITE
www.tachi-s.mx/insa.htm
– Gonzalo Esparza Pedroza, President of Tachi-S Mexico
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COLOMBIA’S stronghold for bus and coach manufacturing
Superpolo is beyond reliability in supplying vehicles for public transportation systems and other markets.
Written by: Rebecca Castrejon, Editora Produced by: Ana Cardenas, Director of Projects at WDM Group-LATAM Interviewee: James Posada, General Manager for Marcopolo – Superpolo
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MARCOPOLO – SUPERPOLO
M
arcopolo - Superpolo was conceived in 2000 as a joint venture between Brazil’s Marcopolo -founded in 1949 as Nicola & Cia Ltd by four partnering entrepreneurs and Colombia’s Carrocerias Superior, which first opened in Cali during 1956, and later expanded by owning locations in Medellin and Bogota, the country’s capital.
Main offices in Colombia
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International Outreach and Opening in Colombia By the year 2000, Superior bolstered its partnership with Marcopolo, joining forces in one of Colombia’s most ambitious and important projects to date: becoming purveyors to the Transmilenio massive public transportation system of its first vehicles. After the first bus fleet deployment, the Superpolo joint venture between Marcopolo and Superior took place, settling by late 2001. Marcopolo’s sophisticated design and technical skills remained as trademark traits for the new partnership, which relies upon Superior’s knowhow in the domestic market. Currently, Marcopolo-Superpolo is part of the Marcopolo group, a bus and coach body manufacturer with 17 production plants worldwide and exporting to more than 60 countries. The company’s market share in Colombia has increased to 40 percent, by diversifying into four main vehicle production units:
L AT I N A M E R I C A
1. Intermunicipal transportation buses 2. Massive transportation vehicles 3. Urban vehicles 4. School buses and special use vehicles Standout models from Marcopolo - Superpolo include BRS (rapid transit buses); and the vehicles with higher demand are Paradiso 1800, Paradiso 1600, Paradiso 1200 and the Audace and Ideale units. Five sales and after-sale service centers are strategically located nationwide. The company’s main -and largest- production plant is located in Cota. What’s Behind a Comfortable Travel by Land: Marcopolo - Superpolo Marcopolo - Superpolo’s more than 30-year leadership in Colombia’s bus and coach manufacturing industry stands out for sustaining the brand’s corporate philosophy, encompassing
Key People
James Posada Rosero General Manager for Marcopolo – Superpolo James Posada graduated in Industrial Engineering from Los Libertadores University in 2003. In 2008, he earned an MBA from the Externado University of Colombia. His education continued in 2012 during a stay in Brazil, where he enrolled in the executive development program at CENEX; and in 2014 Posada attended an economyfinancial management course at Dom Cabral Foundtion. His managerial experience at Marcopolo - Superpolo began in April 2008 as production manager. Afterwards, he became production manager for the Brazil plant (August 2012 to July 2014). He was appointed General Manager in August 2014.
More than a sales team, they are after-sales assistance
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C O M PA N Y N A M E
Inside and outside quality manufacturing
Comfort from the operator seat
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cutting-edge design into local land transportation, and guaranteeing the travelers’ safety and comfort. Also, the corporation’s profitability has performed beyond stockholders’ expectations for more than 60 years. Nevertheless, the high management at Superpolo S.A.S. acknowledges every key action taken enabling the company to achieve this success. Environmental-friendly policies, proper training and safety standards for its human resource, and community outreach programs are constant endeavors for Superpolo to ensure its staff’s wellbeing as well as its concern for Colombia’s population. After-sale service has also become one of Marcopolo - Superpolo’s main attributes to maintain the company atop the competition, by
L AT I N A M E R I C A
Special vehicles for student transportation
providing clients of necessary training in vehicle use and assistance for regular unit service checkups and supplying replacement parts. Management and Strategies Comprising the Value Chain After obtaining feedback about product performance in the domestic and regional markets, James Posada, current General Manager for Marcopolo - Superpolo in Colombia, announced there would be some changes in upcoming production runs: “We will continue strengthening the plant’s technical areas, getting them ready for the deployment of latestgeneration technology; we are also updating products that will soon be discontinued with totally new models, also expanding our portfolio.”
“We will continue strengthening the technical areas to become ready for the deployment of latest-generation technology; we are updating products that will be discontinued with new models, thus expanding our portfolio” – James Posada, General Manager for Marcopolo – Superpolo
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In charge of providing comfort for passengers
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Posada has been involved with Marcopolo - Superpolo for more than 20 years. He has managed different departments in the company, and in December 2014 he was appointed as the general manager. In September 2013, Superpolo deployed the first hybrid buses for Bogota’s public transportation system, a batch of 22 units equipped with a Volvo B215 RH chassis, operated by GMovil. This combination of an electric and diesel fueled motors has lessened both noise and carbon dioxide emissions. “We are preparing to increase our production of hybrid vehicles, we have already built prototypes to be ready when demand for these increases,” Posada added. There are already some hybrid vehicles in Colombia’s roads and streets, but it is expected that government transportation and health agencies demand for an increase in eco-friendly vehicles during the short term. To meet this demand, Superpolo is already working on strengthening its supply chain via other Marcopolo facilities in the continent, precisely with the Mexico, Argentina and Brazil plants, thus sharing the corporation’s global suppliers. “We are part-taking in regional tech developments from macro-suppliers such as 3M, Sika, Eceme and others, easing their new technology deployments into other countries,” Posada stressed.
Ideale 660, for urban transportation
The Gran Viale BRT is a high capacity model
Microsenior bus
Intermunicipal vehicle
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Paradiso G7 unit
Gran Viale BRT
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Skilled Staff and Cutting-Edge Technology in Manufacturing The $200K investment in a new service center, located in Bogota and open since May 2013, furnished the facility with high-endurance pneumatic system network, infrared lamps -for drying-, latest-generation spray guns, etc. This expansion also tripled service stations, after its personnel received proper training to operate the new avant-garde equipment. Marcopolo’s workforce is trained to perform according to the best global manufacturing practices within the trade; employees acknowledge these efforts are essential to their continual professional development.
“We are training our technicians in the Marcopolo Brazil headquarters, with guidance from our suppliers. Our idea is to keep sending our engineering team abroad to be taught firsthand about our supplier’s latest developments, easing technology deployments at our facility and into our production process,” said Posada. Superpolo’s improvements in their Management Integration System are focused on their personnel, and is certified by ICONTEC (Colombian Institute of Technical Standards and Certification) under ISO 9001:2008 standards. The company’s latest developments in the technology field include robotics in different processes of its production line, such as
“We will remain among Colombia’s leading companies in our sector. We want to thank our clients, personnel and suppliers for their trust during many years” – James Posada, General Manager for Marcopolo – Superpolo
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L AT I N A M E R I C A
automation for CNC plasma cutters, improving the handling of materials’ used for the vehicle’s structure, reducing wasted material, and optimizing bodies’ finishes and reducing this process’ time. Also, Superpolo is working in the development of new software able to increase flexibility in assembly line standards. Marcopolo - Superpolo
Environmental Management and Social Outreach Superpolo’s efforts in contributing to a better environment include constantly updating their policies in proper management of natural resources, waste and emission control. The company’s social responsibility initiatives come from above, as management bestows every possible benefit to employees and their
is the first Colombian bus body manufacturer certified under NTC 4901-1 and 4901-3 standards for articulated and high-floored units
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MARCOPOLO – SUPERPOLO
In business since 2001 in Colombia
families. Along with other Colombian companies, Superpolo is taking part in the construction of a weir for common use. Also, in late 2014, Superpolo opened a learning annex for aspiring technicians of any age and gender, mostly for individuals aspiring to work in the company but lacking the proper qualifications of skilled and certified employees. “We have been able to hire an important number of individuals who previously couldn’t find themselves in proper conditions to become part of the workforce. Our first group was comprised mostly of women 45 or older, and we are currently
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L AT I N A M E R I C A
into our third generation of trainees,” the general manager said. Projections in the Domestic Market Marcopolo - Superpolo’s aggressive strategies bring a forecast of 5 percent growth for 2016, and a sustained pace of yearly 10 percent growth starting on 2017, after the Phase I and Phase II investments from the Transmilenio public transportation projects, which will increase Superpolo’s plants capacity. “During the next five years our production facilities and assembly lines will keep improving, new service centers will open in other Colombian cities such as Bogota, Medellin, Cali, Bucaramanga and Barranquilla,” remarked Posada, about increasing after-sale service locations, technical assistance, warranties and replacement part availability.
Company Information NAME
Marcopolo – Superpolo INDUSTRY
Bus and coach body manufacturing HEADQUARTERS
Cota, Cundinamarca, Colombia FOUNDED
2001 in Colombia EMPLOYEES
1,300 WEBSITE
www.superpolo.com.co
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Glasshou
STRONG
Crystal-clear views for the continent’s most unique buildin Written by: Rebecca Castrejon, Editor Produced by: Ana Cardenas, Director of Projects at WDM Group-LATAM Interviewee: Christian Daes, Co-founder and COO for Tecnoglass
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use
as a
GHOLD
ngs
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TECNOGLASS
S Key People
Jose Manuel Daes Co-founder and CEO Energía Solar José Manuel Daes, co-founder of Tecnoglass and C.I. Energía Solar, is the current CEO of C.I. Energía Solar, and Directive of the corporation Tecnoglass. With more than 30 years of experience creating and operating various businesses in Colombia and the United States, it has served as CEO of C.I. Energía Solar ESWindows since its inception in 1984, being responsible for all aspects of the operation, marketing and sales of the company. On the social aspect, Jose Manuel and Christian Daes founded Tecnoglass ESWindows Foundation, which promotes local, health and community programs in Barranquilla.
ome of the world’s unique buildings, including El Dorado Airport of Bogota, Colombia; Trump Hotel, in Panama; Trump Towers, in Miami and Phoenix University’s Houston campus are furnished with the sophisticated looks and crystal-clear views of glass panels manufactured by Tecnoglass. The company started in April 1994 at Barranquilla, Colombia, as brothers Christian and Jose Manuel Daes created Tecnoglass glass manufacturing and marketing company, with the purpose of supplying high quality products at competitive prices within a timely delivery. Their manufacturing portfolio consists mainly of laminated, tempered, acoustic, semi-insulated, curved and thermal glass, stained glass, screen printed glass, glazing, as well as aluminum profiles and digital printing. After its products’ quality and durability earned a positive reputation for the company, internationally, Tecnoglass began exporting to Germany and Singapur. In 2006, the company acquired their own power plants; two years later, the Alutions brand for aluminum profile manufacturing and marketing was launched. Tecnoglass relies on their workforce’s attributes and constant push to deliver quality products. “We believe our most important asset consists of our staff, we could hardly expect the same
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results if our factory was set elsewhere,” proudly stated Christian Daes, Tecnoglass co-founder and current COO.
Key People
The company is also a reliable supplier of windows for “smart buildings”, which currently seems as a positive, ongoing trend in construction for the next five years. Tecnoglass’ more than 20 years in the industry provides a solid background. The company’s stocks have a successful run in the market; its abbreviation is NASDAQ: TGLS. Global Operation with Barranquilla as the Starting Point Tecnoglass’ operation has experienced exponential growth. From being a modest
Christian Daes Co-founder and COO for Tecnoglass Daes graduated in 1985 from North Carolina University, earning a Bachelor degree in Business Information Systems. He is currently the COO for Tecnoglass -since December 2013- after being the company’s CEO since co-founding it in 1994. He is also co-founder of CI Solar Energy (1984). His current position places him in charge of every company operation, sales, and marketing. Daes was a key element for Tecnoglass’ expansion into foreign markets and growing its client roster from 50 to more than 300. Daes also created Tecnoglass Foundation - ESWindows, an entity instrumental in its community’s development, access to medical attention and other social benefit programs in Barranquilla, Colombia.
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Technoglass shields at University of Baltimore School of Law
workshop run by 14 individuals, 20 years later it became a 5,000-plus employees operation. Its portfolio of world-class products include: window, aluminum profiles, glazing, tempered and laminated glass, stained glass, curved glass, among other products, ready to fulfill the needs of the residential, commercial and construction sectors.
Highly-Skilled Colombian Talent
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“In 1994 we started our own glass factory, starting Tecnoglass. Back then we purchased glass from third parties, as the company evolved, our portfolio’s size increased,” Christian Daes said after reminiscing when they first produced impact-resistant windows and aluminum alloys.
SECTOR
Prism-shaped structure of Fordham Building, New York City
Tecnoglass’ initial success prompted other industries in Barranquilla and vicinities to experience a growth of their own, too: iron producers, the metal-mechanic industry and other current suppliers for the glass factory. Eye on Efficient Technology: Delivery and Quality To optimize its productivity and quality of its output, Tecnoglass relies on cutting-edge machinery and use of licensed products from industry giants Dupont, PPG Industries, Pilkington and Nokimis, among others, with the recentlyacquired Francesca FC 1600 workstation
“The most acclaimed products in the market and with the most quality are ours” – Christian Daes, Co-founder and COO of Tecnoglass
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TECNOGLASS
Tecnoglass: Stocks in NASDAQ
becoming a turning point for the company’s timely delivery and product quality. “We have recurred to these materials for years, and thanks to them we are a leading enterprise within our trade,” the executive added.
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Compliance at Every Level In order to supply goods within the boundaries of environmental-friendliness, Tecnoglass follows through with every guideline there is to manufacture and supply the highest quality, ecofriendly products, from ISO:14000 certification to w w w. t e c n o g l a s s . c o m
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employee training for carrying the best practices, including SGCC (Safety Glazing Certification Council) certifying for tempered and laminated glass, and ANSI (American National Standards Institute) regulations compliance. Pollution levels have reduced by reducing solid and liquid waste. “Our policies are focused on our care of t he environment, that’s also our company’s main purpose: to care for our surroundings,” Daes stressed.
Clear-Blue Green glazing installation for Hotel
Giving Back to the Community
Strada
As a display of gratitude to the working community in Barranquilla and vicinities, Christian Daes conceived the ESWindows - Technoglass
SUPPLIER PROFILE Employees: 270 Year established: Desde 1994 como comercializadora y desde 2013 como productora. Industry: Industrial y Construcción. Services: Fabricación y comercialización de Vidrio Flotado incoloro y de colores, Vidrios de Control Solar, Vidrios Grabados, Vidrios de Baja emisividad, Espejos y Vidrio Laminado. Recent Projects: Edificio Qbo parque 93 (Bogotá), Módulos Connecta (Bogotá), Torres Colpatria (Bogotá), Edificio SURA (Medellín), Edificio Staff (Medellín), Hotel Best Western (Santa Marta), Edificio Park 57 (Barranquilla), Hotel Oxo (Cartagena), Centro Comercial Aqua (Ibagué) y World Trade Center (cALI). President/CEO: Xavier Pinot, Director General Vidrio Andino Región Andina - Colombia | Ecuador | Venezuela Visite our webpage: www.vidrioandino.com
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TECNOGLASS Foundation, officially in operation since July 2005. The foundation’s community programs have resulted in 10 years of an important contribution to the population’s development. These endeavors include educational workshops, healthcare and nutrition assistance programs. Employees from Tecnoglass, affiliates and related companies volunteer for the foundation’s activities. Window setting at Colombia
Important projects are in sight for Tecnoglass during the next five years in neighboring Latin
SAFETY GLASS MADE SAFER Glazing design innovation Improved post-breakage safety Impact resistant applications Durable open-edge performance Crystal clear appearance
www.sentryglas.com
Petrobras building in
Copyright © 2015 Kuraray. All rights reserved. SentryGlas® is a registered trademark of E. I. du Pont de Nemours and Company or its affiliates for its brand of interlayers. It is used under license by Kuraray.
L AT I N A M E R I C A
American countries and in the United States. The company’s $45 million investment, which resulted in a new soft-coat glazing manufacturing plant, is set to open during 2015.
Company Information NAME
Tecnoglass
Expansion plans imply consolidation in the western U.S., projecting to double the company’s exports. Plans for Latin America foresee the introduction of new products for the Peruvian, Bolivan, Ecuadorian and Caribbean markets. “Our desire is to double -at least- our sales and manufacturing capacity during the next five years,” Christian Daes summarized.
INDUSTRY
Glass manufacturing HEADQUARTERS
Atlantico, Barranquilla, Colombia FOUNDED
1994 EMPLOYEES
4,600 REVENUE
USD $300 million WEBSITE
www.tecnoglass.com
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Munksjรถ Brasil:
INNOVATIVE DESIGN IN SPECIALTY PAPERS Company offers high quality products for the segments of self-adhesive, flexible packaging and printing & writing. Written by: Flรกvia Brancato | Produced by: Nayara Ferreira
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ounded in 1862 in Europe, Munksjö Oy is a solid company built on a powerful synergy of knowledge and resources. It currently focuses on packaging coatings, floors, kitchens, furniture markets and energy, and is listed on the NASDAQ stock exchange in Helsinki and Stockholm. The company’s global sales reached 1.4 billion euros, with the support of nearly 3,000 employees spread around the world. Operating in four business areas (decor, release liners, graphics and packaging, and industrial applications), the company has 15 units in several countries such as Germany, Brazil, China, Spain, France, Italy and Sweden. “It’s a combination between paper and cellulose experience, specialized skill and dedication to customer service, and research and development and sustainability, “ summarizes Valmir Piton, CEO of Munksjö Brazil and vice president of the ‘Release Liners’ division in South America.
Munksjö Brasil facade
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Jacareí, São Paulo - Brazil
Munksjö Brazil Munksjö Brazil was created through a merger between the label and processing divisions of Ahlstrom and Munksjö AB. This winning partnership turned Munksjö Oy into a new global leader in specialty papers. The plant in Jacareí, São Paulo state, is an integral part of the groups— Papel Simão and VCP, producing paper since 1972, holds an extensive knowledge in this field. Its portfolio of products for applications in selfadhesive labels is the broadest in the industry. The company offers a complete solution for high quality papers in L1 segment (coated one side) including Facestock and Release Liner, ensuring excellent printing results and performance. For the printing and writing paper markets, it is also offered a wide range of offset papers including w w w. m u n k s j o . c o m
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Operations
50-180 gsm in sheets and reels. With the business focus on the domestic market as well as in Latin America, the Jacareí unit has a packaging and cutting finish line, in addition to paper and coating machines, which are able to produce couché coated paper on one or both sides and offset paper. Piton says that one of the main operational strategies is to follow the customer needs. “Our customers, in general, are working on cost reduction. To assist them, we are diversifying the portfolio of our products to meet this new demand for market operational excellence, especially the self-adhesive segments and flexible packaging,” he explains. 104
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Operations and costs Focusing on improvement and cost control, the company maintains excellence in production without losing quality. Since 2007, TPM (Total Productive Maintenance) has been used in the improvement program, with the objective to eliminate waste, reduce downtime, ensure quality and reduce costs in the process. Another management tool is the S&OP (Sales and Operation Planning), which balances supply and demand, increasing the level of service offered to customers. “To do more with less, especially in this time of economic turbulence is our main challenge,â€? says Piton. By prioritizing local labor, Brazil MunksjĂś contributes to human development in the region with a healthy organizational climate and a strong and qualified team. All positions have specific training according to
MUNKSJÖ BRASIL performance needs and career development. “The levels of absenteeism and turnover rates are the lowest in the market for companies in the sector and region,” Piton says. “We have a process of developing young professionals from recent graduates of the best universities in Brazil. Additionally, the company allots apprentice quotas as an encouraging social inclusion gesture.” The company’s benefits package includes annual profit sharing program, medical and dental plan, plus medicine, food stamps, transportation, gymnastics, undergraduate, graduate, MBA scholarships and languages learning allowances. As a multinational presence, the company provides the opportunity for exchanges through meetings and corporate training. “We offer all
Qualified staff
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1000 days without accidents - 2015
our employees the opportunity to express their talents, because we believe that the great differential that allows us to keep innovating. Developing and growing is based on the proper care in selecting and maintaining our engaged and motivated people,” says Piton.
Valmir Piton, CEO of Munksjö Brazil and vice president of the ‘Release Liners’ division in South America
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Safety and Sustainability Security is the primary focus of the company. The Jacareí Unit has an integrated management system for quality assurance, environment, health and safety under QHSE (Quality Assurance,
“It’s a combination between paper an skill and dedication to customer service, and re
– Valmir Piton, CEO of Munksjö Brazil and vice presid
BRAZIL
Health, Safety and Environment), reporting directly to the president. It is also responsible for an educational internal security program called PESEM, which is focused on people’s behavior and is aimed at a healthy and safe work environment. Always looking for improvements in sustainable development, Munksjö sees to the use of natural resources reduction through solid goals and monitored monthly, such as water consumption, energy, carbon emission reduction and waste management. The company also supports
Research and Development
nd cellulose experience, specialized research and development and sustainability.”
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MUNKSJĂ– BRASIL
Products
social responsibility through culture, sport and educational fields. A good example of this is the partnership with the local government to open the doors to schoolchildren of the region for field trips, giving them the opportunity to experience what has been learned in the classroom. Growth The company is working towards increasing production capacity and machine flexibility for developing new products. It is also focused on investments to upgrade the industrial park. “Over the past few years, we investmented in the coating machine to 110
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Company Information NAME
Munksjö Brasil Indústria e Comércio de Papéis Especiais Ltda. INDUSTRY
Paper HEADQUARTERS
Jacareí - SP - Brazil EMPLOYEES
266 E S TA B L I S H E D
1972 PRODUCTS / SERVICES
increase production capacity, demonstrating that our company is really committed to keep up with the growth of self-adhesive and flexible packaging markets,” says Piton. For the coming years, the goal is to further diversify the product portfolio and work on launching new products into these markets. “To get there, we are training the existing employees at all levels so they will be prepared to meet the newer segments,” he adds.
Specialty Papers MANAGEMENT
CEO of Munksjö Brazil and vice president of the ‘Release Liners’ division in South America: Valmir Piton
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Birla Carbon South America:
60 years of succes with sustainability
A leader in carbon black market in South America, the com invests in the best technologies with the strictest concepts safety and environmental preservation Written by: Flรกvia Brancato | Produced by: Nayara Ferreira
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mpany s of
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pioneer in carbon black manufacture, Birla Carbon South America (BCSA), part of Columbian Chemicals Brazil Ltda, is celebrating 60 years of production, serving the tire, rubber product, plastic and paint markets. Operating in Brazil since 1958, in addition to a factory in Polo Cubatão, São Paulo state, the company also has a plant located in Camaçari, Bahia state, where facilities have the latest technology in Carbon Black production. Birla Carbon produces and commercializes electricity, gas and steam tail, which for 15 years has been operating a 27 MW Cogeneration installed in its production plant in Cubatão. With sustainability as its main tool, the company offers high quality services, working with a low environmental impact and high level of operational safety. “The biggest differential of Birla Carbon South America lies in the vast production capacity, globally and continentally, as result of a long-term vision to always to improve relationships,” said Ronaldo Silva Duarte, president of Birla Carbon South America.
Birla Carbon factory - Cubatão, São Paulo
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Birla Carbon factory - Camaçari, Bahia
Market and production Birla Carbon, as a leader in the South American carbon black market, sells most of its production in Brazil. The company also has a strong presence in all countries of the continent through technical assistance and specific sales to each market segment. The Cubatão plant’s focus is based on development, sales and service with production capacity of 210,000 tons of carbon black a year, in addition to electricity, gas and steam tail
Carbon Black
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BRAZIL
generation and sale. In contrast, the Camaçari plant has a production capacity of 75,000 tons a year and also markets tail gas. “Carbon black production generates a byproduct known as tail gas, enough to be reused in the production of carbon black and electricity, as well as in steam-based electricity cogeneration, making our units self-sufficient and generating environmental and energy gain,” Duarte explained. Innovation and management strategy One major innovation comes in the form of tires. In order to reduce the rolling resistance of the tire, thereby minimizing fuel consumption and consequently CO2 emission, Birla Carbon is
Birla Carbon factory Cubatão, São Paulo
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BIRLA CARBON SOUTH AMERICA introducing high performance carbon blacks to be used by the tire industry. For the special blacks segment, which is aimed at the paint and plastic sectors, a product for indirect food contact has been developed for the South American market and approved by ANVISA—the Brazilian Health Surveillance Agency. With minimal impact on the physical qualities of the polymer, the idea is to address the market for HDPE pipes for carrying drinking water. “We believe this application has great potential, considering the needs of large cities in infrastructure and preservation,” said the president. The main management strategy is the ‘flex in operations’ management process. “We have the flexibility to meet market needs, creating greater assurance in our products supply and quality services,” said Duarte. In addition, the implementation of the Balanced Score Card (BSC) as a management and strategic tool focuses on specific training of quality and continuous improvement. The WCM program (World Class Manufacturing) of the Aditya Birla Group is designed to help the group’s branches to adopt operational excellence, with the main goal of intensifying the culture of LEAN Manufacturing. Safety and Quality Certified by international standards for quality, environment, safety and occupational health systems, BCSA is also a signatory of the Responsible Care program of ABIQUIM. Birla Group also integrates WASH PLEDGE program, which focuses on the control and improvement of hygiene in production facilities.
“We have the flexibility to meet market needs, creating greater assurance in our products supply and quality services” – Ronaldo Silva Duarte, president of Birla Carbon South America 118
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NEGRO DE FUMO
Carbon black applied in tires
Carbon black applied in paint
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C O M PA N Y N A M E
Birla Carbon factory - Cubat達o, S達o Paulo
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BRAZIL
The company recently launched its volunteer program in Brazil, which will recruit the participation of its employees in several actions within communities where the Birla Carbon acts. The cultural focus is based on interaction between the company and its surrounding communities. This is reflected in the sponsorship of projects with an educational approach through incentive laws such as ProAC (Culture Support Program), of São Paulo state. Investments and improvements “Birla Carbon has a corporate policy to channel investments in the best available technologies of the market. It is crucial to note that all investments
Key People R O N A L D O S I LV A DUARTE
President and HR Manager FLAVIO RICARDO RODRIGUES
Sales and Logistics VicePresident ADILSON TREVISAN
Financial Director and Purchase Control JOSÉ DE AZEVEDO MARQUES NETTO
Quality Director, Technical Support and Integrated Management ALESSANDRA GAGLIARDI GÓMEZ
Sustainability Director ROBERTO FERREIRA D A C O S TA
Engineering Director FERNANDO QUINTINO NUSCH
Cubatão General Manager RICARDO GODINHO BANDEIRA
Camaçari General Manager
Birla Carbon factory - Camaçari, Bahia
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BIRLA CARBON SOUTH AMERICA
Ronaldo Silva Duarte, president of Birla Carbon South America
Carbon Black
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are supported by the most rigid concepts of safety and environmental preservation,� said Duarte. The Cubatão plant has received continual investments in the modernization of its facilities, as well as the filtration, separation and transportation processes of gases. According to the president, the investment plan of Birla Carbon includes USD $60 million over a period of the next five years, in addition to amounts allocated to possible expansions
BRAZIL
Company Information NAME
Birla Carbon INDUSTRY
Petrochemical HEADQUARTERS
São Paulp - SP - Brazil E S TA B L I S H E D
1955 EMPLOYEES
250 ANNUAL REVENUE
USD $ 158 million
throughout South America. The company is assessing new energy recovery technologies with investments forecasted to be around of USD $6 million. “Our investment strategy is closely linked to market growth as well as to increase our competitiveness. Fundamentally, our business depends on the auto market tendencies and the strong influence of the infrastructure and paints sectors,” said the president.
PRODUCTS/ SERVICES
Carbon Black, Electricity, Steam and Tail Gas
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