Manufacturing Today Europe Issue 113 Early Edition

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EUROPE

ISSUE 113 early

MANUFACTURING

changing world The EU has set a target for manufacturing to account for 20 per cent of European GDP by 2020

Also in this issue:

Revolutionary times for manufacturing

Are we nearly there yet?

Three industrial revolutions have been driven by steam, electricity and electronics, now the ‘Internet of Things’ is powering Industry 4.0.

The evolution of social media in the business world, and how for manufacturers, it can play a pivotal role in boosting productivity

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Editor’s Comment

Chairman Andrew Schofield Group Managing Director Mike Tulloch Sales Director David Garner Editor Libbie Hammond Design/Art Editor David Howard Staff Writers Matthew High Jo Cooper Andrew Dann Steve Nash Editorial Administrator Emma Crane Production Manager Fleur Daniels Production studio@schofieldpublishing.co.uk Adverising Administrator Tracy Chynoweth studio@schofieldpublishing.co.uk Head of Research Philip Monument Business Development Manager Mark Cawston

Celebrating

achievements

T

he manufacturing sector across Europe has had a very tough few years. UK manufacturers can now at least look at the latest figures with a degree of hope for a stronger market going forward – in his article on page eight Mark Swift notes that there is a strong growth forecast for over three per cent this year and over two per cent in 2015.

But as he also highlights, in the second quarter of 2014 the German and Italian economies contracted and France posted no growth.

Business and consumer confidence remains fragile and the full impact of EU sanctions on Russia has yet to be seen in the data.

Given the hard times manufacturing has been through, I am pleased we can again celebrate the achievements of successful companies in the pages of Manufacturing Today Europe. I hope George Utz and Teagle Machinery are the first of many to share their success stories with our readers – if you’d like to tell yours, please let me know!

Editorial Researchers Laura Thompson Gavin Watson Mark Cowles Tarj D’Silva

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MANUFACTURING

ISSUE 114 Early

Advertising Sales Joe Woolsgrove - Sales Manager Tim Eakins Dave King Darren Jolliffe Graham Allinson

Ready for a

changing world The EU has set a target for manufacturing to account for 20 per cent of European GDP by 2020

Also in this issue:

Revolutionary times for manufacturing

Are we nearly there yet?

Three industrial revolutions have been driven by steam, electricity and electronics, now the ‘Internet of Things’ is powering Industry 4.0.

The evolution of social media in the business world, and how for manufacturers, it can play a pivotal role in boosting productivity

Schofield Publishing

Cringleford Business Centre, 10 Intwood Road, Cringleford, Norwich, NR4 6AU, U.K. Tel: 044 (0)1603 274130 Fax: 044 (0)1603 274131 www.manufacturingtoday-europe.com ©2014 Schofield Publishing Ltd Please note: The opinions expressed by contributors and adver tisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effor t is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the proper ty of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

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CONTENTS

Features 13 Special feature

12 Bearing up

8 Lead story 4 News Updates and announcements from the manufacturing sector

8 Ready for a changing world How can the UK and the rest of European manufacturing improve competitiveness and implement the structural and supply side reforms to create sustainable growth?

10 ERP - what you should be looking for To get the best from any ERP investment, companies need to make any decision based on a holistic business perspective and not an IT, functionality-based set of considerations

20 IT

The latest developments in plastic bearings, and how industrial manufacturers can use them to produce cost savings while increasing their environmental credentials

13 Are we nearly there yet?

As data continues to explode and decisions have to be made faster and more intelligently, social media has a pivotal role to play in the enterprise

20 Revolutionary times for manufacturing In the past, fortunes were made from the first three industrial revolutions; today Industry 4.0 offers even greater promise to those who venture

16 Special feature

16 What can go wrong

Jonathan Wilkins runs through a list of the top five causes of electric motor failure

18 Get positive Increasing employee engagement is not something to be entered into lightly but it is worth focusing on

Profiles 23 George Utz With a history dating back nearly 70 years, the Utz Group has developed a market-leading reputation in the design, development and manufacture of both custom and standardised material handling products

27 Teagle Machinery Teagle’s latest product line-up is firmly planted in a rich heritage of agricultural machinery, and its Tomahawk range forms the cornerstone of the company

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September manufacturing update The UK’s manufacturers had a mixed month in September, with production continuing to rise steadily but order books deteriorating, according to the CBI’s latest Industrial Trends Survey.

The survey of 488 manufacturers across the UK was carried out between 20th August and 10th September. It revealed that output growth remained solid in the last quarter and is expected to strengthen further in the coming three months. But firms saw total order books fall below ‘normal’ levels, and export order books worsened significantly, and are now at their weakest since January 2013.

Stocks adequacy fell back below average and inflation expectations remain muted, with manufacturers once again expecting flat output prices over the next three months.

Katja Hall, CBI Deputy Director-General, said: “Against a backdrop of acute political uncertainty at home and abroad, exports orders for UK manufacturers are faltering, which is disappointing. However, it’s encouraging that output growth has remained solid and firms expect production to rise strongly in the next quarter.”

Leadership award

The inaugural European Manufacturing Leadership Award 2014 has recognised the pioneering leadership demonstrated by the decision to re-shore Philips shaver production operation from China to the Netherlands.

This special Award has been launched to celebrate the first ten years of WTG’s market leading European Manufacturing Strategies Summit – and is designed to recognise an individual who has demonstrated pioneering leadership in driving excellence, performance and competitiveness within European manufacturing.

Following a process of peer nomination and an industry vote, WTG announced that Rob Karsmakers, VP and Site Manager – Philips Consumer Lifestyle was the first recipient of the European Manufacturing Award.

Rob Karsmakers said: “I am greatly honored to be awarded this prize. It shows recognition for the work done to put the manufacturing industry back on the map as a foundation for a sustainable European society.

Mr Karsmakers’s award will be officially presented at the European Manufacturing Leadership Award Gala Dinner on the evening of Tuesday 28 October at the 10th Annual European Manufacturing Strategies Summit 2014.

Digital demo The Manufacturing Technology Centre (MTC) in Coventry has seen the launch of the UK’s first digital factory demonstrator. The project is designed to showcase how a ‘fourth industrial revolution’ could shape the future of British manufacturing and features a virtual 3D factory alongside a physical production line capable demonstrating mass customisation of consumer goods.

Also known as the Industry 4.0 demonstrator, the digital factory demonstrator is the first of its kind in the UK and seeks to put Britain at the centre stage of global research and development in manufacturing.

The immersive, 3D virtual reality environment allows users to interact with a ‘living lab’ that has been modelled from an existing real-world machine. The machine mimics a continuous production environment and allows universities, manufacturers and key stakeholders to innovate production processes using the latest technologies that help improve productivity, quality and energy efficiency.

Several leading manufacturers and organisations have contributed to the project, including Siemens, the Electronic Systems Community (ESCO), automation trade association GAMBICA, HP, Shadow Robotics and Ubisense. Indeed, Siemens now wants to work with industry partners to build a full living laboratory at the MTC to link smart sensor technology to intelligent automation and supply chain systems.

Clive Hickman, CEO of the MTC commented: “We are proud to be at the centre of the UK’s first digital factory demonstrator and it is absolutely vital that industry and Government partner together to build on the Foresight report which set out a road map for the future of manufacturing. In order for that to happen we must invest in technology and encourage its uptake throughout the supply chain. By doing this we can be at the forefront of the ‘great technology race’ - which in turn will result in greater inward investment for UK PLC.”

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The 3D digital factory demonstrator

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MANUFACTURING NEWS

Strategic expansion A $20 million investment by the Edinburgh-headquartered Premier Hytemp is going to create a 67,000 square foot precision engineering facility in Singapore, which will serve the downhole tools, wellhead and subsea tree markets. This will complement the established Premier Hytemp manufacturing operation in Singapore that primarily serves only the wellhead and subsea tree markets.

The company has acquired land for the development adjacent to its existing 78,000 square foot facility in the industrial area of Jurong in western Singapore and expects to start construction later in 2014. The strategic location offers easy access to Singapore and throughout the Asia with excellent port facilities for export shipments.

Campbell MacPherson, chief executive officer of Premier Hytemp, said: “This $20 million investment in our second Singapore facility will significantly increase our capacity to serve clients in the downhole tools market and complements our existing service offering for wellhead and subsea tree components out of Singapore.

“The expanded scope of the new facility and our ability to manage products from raw material through to fully tested, final machined and assembled consignments means that we are strongly positioned to deepen our relationships with established customers and attract new business. Our control of all aspects of the product manufacturing process also provides our clients with additional assurance in terms Premier Hytemp is investing $20m in a second precision engineering plant in Singapore to service global oil and gas markets of quality control and on time with components for wellheads, subsea trees, valves and downhole delivery.” tools.

Large hadron collider upgrade Cobham Technical Services is providing its Opera electromagnetic simulation software to help scientists at CERN design the magnets needed for the forthcoming upgrade of the Large Hadron Collider (LHC) in preparation for its high luminosity operation.

Both the two-dimensional (2d) and three-dimensional (3d) versions of Opera are being used to model a wide variety of the LHC injectors’ normal conducting (NC) electromagnets and permanent magnets, starting with the magnets of the new 160 MeV H- linear accelerator and including upgrades of the magnets used in the transfer lines and other accelerators on the way to the LHC. According to Daniel Schoerling, project engineer for NC magnets in CERN’s Technology Department: “With most of our magnet designs, we require very high prediction accuracy of the magnetic field quality in the good field region, typically of the order of 1/10,000 or better. Over the years we have gained confidence in Opera’s magnetostatic simulation performance for solid and laminated yoke magnets, supported by the effective correlation between simulation results and magnetic measurements obtained from manufactured units. When we observe differences higher than a few parts in 10,000 we can usually attribute them to factors such as mechanical error or uncertainty of the BH curve of the material used for the magnet’s manufacture. In fact, because of the accuracy of the software’s magnetic length and field quality predictions, with many of our magnet designs we no longer need to incorporate any means of performing post-production field quality correction.”

The core finite element analysis technology behind Opera was developed originally to support the design of particle accelerator magnets, starting with a project in the 1970s by scientists at the UK’s Rutherford Appleton Laboratory. At that time, the software required a mainframe computer and was intended principally to help solve design problems with the move towards superconducting magnets for higher energy particle accelerators. Today, the software addresses multiple types of physics – including electromagnetic, thermal and stress – and offers 2d and 3d design, simulation, analysis and optimisation facilities to anyone with access to a standard PC.

Getting closer to the customer According to new research launched at The CoreNet Global EMEA Summit in September, the emergence and adoption of new technologies, including 3D printing, collaborative robots and big-data, are now the driving forces in global manufacturing.

This is leading to businesses focusing on proximity to customers and the need for increasingly flexible supply chains.

Colliers International, the global property adviser behind the report, Getting Closer to the Customer, has revealed how consumer demand and advances in technology are driving a fast-approaching industrial revolution led by a society demanding mass-customisation.

Guy Douetil, managing director of EMEA Corporate Solutions, Colliers International noted: “Consumer demand for speedy delivery of customised products, coupled with the rising labour costs in markets typically associated with mass production, has the potential to alter the global balance of power in manufacturing, as businesses increasingly bring their production facilities closer to their customers in growing domestic markets. This move towards decentralised production could lead to emerging economies, such as China, losing the status ‘factory of the world’.”

According to Colliers’ research, the effects of these shifts are already visible in the supply chain. A significant 62 per cent of manufacturing companies consider robots important in their production process, with 64 per cent looking to increase automation in the next three years. Of those manufacturers that repatriated in 2013, 83 per cent identified proximity to their consumers as a top three factor affecting their decision to re-shore.

Guy added: “We expect more businesses to assume a ‘best-shoring’ approach to their supply chains, resulting in less demand for manufacturing facilities in foreign markets, the demand for space in local markets will be offset by the space-saving benefits provided by technological advances. It is likely, however, that as more automated manufacturing processes are adopted, fit-out requirements will become more rudimentary as companies make cost savings by reducing heating and lighting facilities in areas where processes are undertaken by robotics.”

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MANUFACTURING NEWS

Rising confidence?

Confidence among businesses in the manufacturing and engineering industry is on the rise according to research conducted by business insurance specialist, QBE. The research, conducted among 400 businesses across the UK in June 2014, found that firms in the sector are feeling more positive now than six months ago and concerns about consumer and business confidence are diminishing. An overwhelming 79 per cent of manufacturing and engineering businesses plan to invest in more than one operational area in the next 12 months, including in new or additional facilities, machinery or production processes, above the national average of 74 per cent.

Unease about interest rates, however, has grown substantially over the last six months with nearly one in five businesses nationally citing the outlook for interest rates as the single most concerning aspect of the economy.

Matthew Crane, managing director UK & Ireland, QBE added some comments about risk, a topic also covered in the research: “Our research has shown that businesses in the manufacturing and engineering sector are facing increased levels of business risk, including many which they are encountering for the first time, such as cyber. In our experience, we know that a robust and rigorous approach to risk management is essential. It is therefore reassuring to see from the research that a large proportion of businesses plan to invest in their risk management practices. I would urge all businesses to work with their insurers to obtain advice and an assessment of their approach to risk management in order to reap the operational and financial benefits that well managed risks can deliver.”

Predicting the future The latest version of SigmaGuardian Early Warning and Prevention (EWAP) software, from Warwick Analytics, automatically analyses data to give early indications of future quality issues in a manufacturing process.

The core algorithm in SigmaGuardian EWAP continually searches through the raw data from the manufacturing process, however incomplete, disparate and dirty to identify the root causes of faults both inside the factory and in warranty. Because the algorithms are based on ‘information theory’ and they are non-statistical, they can detect and resolve issues early, even before they are statistically significant.

Crucially, no hypotheses are needed and it doesn’t matter if parameters are within their control tolerances or not: SigmaGuardian will still find the root cause of ‘clash’ or ‘stack’ tolerances which would otherwise not be picked up by MES or SPC systems. Six Sigma manufacturing can truly become a costeffective reality.

For example, routine issues in an automotive OEM such as squeaks & rattles, No Fault Found electrical issues, supply-chain issues and even drivetrain problems can be resolved on the fly rather than by using manual or statistical techniques where even defining the problem clearly can be a challenge. It can be applied to any industry – discrete or continuous manufacturing.

Dan Somers, CEO of Warwick Analytics says: “Through our significant investment in product development, our SigmaGuardian software continues to revolutionise how manufacturers can enhance their productivity and focus their resources effectively, rather than continually fighting fires.”

Do you want to save £1000?

According to a new scheme run by a utility broker, manufacturers could save at least £999 on their energy bills every year. Business Energy Consultants (www.bizenergy.co.uk) are offering a guarantee to businesses in the manufacturing sector to provide them with cheaper utility bills.

As James Longley, managing director of Business Energy Consultants explained: “Energy and utility costs are a significant expense for the manufacturing industry, seriously impacting on profit margins. As energy prices continue to rise, we are working with manufacturers and associated businesses to save substantial amounts by finding better tariffs and contracts. We have an expert team that are dedicated to finding the right fit for each individual client.”

BEC work with hundreds of companies all over the UK. They evaluate an organisation’s utility usage as a starting point for negotiating new contracts. They have access to changing tariffs so they can arrange the most cost effective deal for each individual customer. For example, greater savings can sometimes be achieved by signing up to a longer contract with a fixed higher price than a one-year contract at a lower rate. BEC advisers also check their clients are paying the correct rate of VAT as this varies from industry to industry.

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Opportunities for PLM A new study from Frost & Sullivan, Analysis of the Global PLM Market in Discrete Industries, has found that the market earned revenues of $20.45 billion in 2013 and estimates this to reach $27.78 billion in 2017. Within the discrete industrial setting, demand for collaborative product definitions management (cPDM) will grow the fastest.

“The increasing focus on collaborative operations will play a key role in influencing PLM functionality in discrete industries,” said Frost & Sullivan industrial automation and process control research analyst Karthik Sundaram. “Hence, capabilities such as product data management, portfolio management, collaboration solutions, content management and enterprise integration that provide an able platform for discrete manufacturers to heighten innovation, efficiency and operational productivity will help expand the global cPDM market.”

Despite this potential, the presence of a large number of competing suppliers is bound to have a negative effect on market growth in the long run.

Moreover, the availability of several functional variants for a specific product from different suppliers is likely to cloud end-user perception and delay purchases. The weak economic climate in Europe and North America will add to the challenge.

Taking into consideration the enormous scope for the uptake of PLM applications in discrete industries, it is essential for vendors to consolidate their progressive technological innovations. Large PLM vendors with well-formulated product suites offering end-to-end industry solutions will exert dominance in the market over the next few years.

“The emergence of new end-user industries such as the biomedicine and pharmaceutics will make product portfolio expansion all the more crucial,” concluded Sundaram. “Extending capabilities to include virtualisation and 3-D immersive reality will also become a necessity to keep pace with demand in the global market.”

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PRODUCT NEWS

New British technology

Lift me up

Filtertechnik has launched Filtasorb 2, a new water absorbency media. Filtasorb 2 can hold twice the volume of water than the previous version and three times as much as its nearest competitor. In a demanding trial, using diesel at a flow rate of 150 l/min, Filtasorb 2 removed six litres of free and absorbed water to bring the water content to under 100ppm in a single pass from an initial level of over 44,000ppm.

The filter media has been developed by Filtertechnik in the UK, where it will be manufactured. Filtasorb 2 is doubly beneficial as the filter cells also have a one micron nominal capture outer layer to remove particulate matter as well as water. Filtasorb 2 is currently manufactured to fit in size one and two filter bag housings but it can be manufactured to suit other filter housings by special order.

Blank canvas

PanelPilotACE, a new hardware and software display platform that enables the rapid development of fully customised industrial and commercial user interfaces and panel meters, has been launched

by Lascar. PanelPilotACE’s combination of a multifunctional touch-screen colour display with simple drag-and-drop design software removes the need for any coding, cutting development time for even the most advanced displays by months.

The PanelPilotACE Design Studio software provides a number of building blocks to allow users to easily add elements to their project. From background images to text elements, analogue and digital style meters, touch-screen navigation elements and even complex logic statements, users can rapidly build up sophisticated multi-screen interfaces without needing to write a single line of code.

When complete, designs are uploaded to the first PanelPilotACE compatible display hardware, the SGD 43-A, via USB. This display features multiple standard inputs and interfaces, providing the flexibility for users to implement touch-screen navigation, measurement and display of analogue, digital and bus inputs, as well as control of outputs and alarms.

Ben Savage, PanelPilot Manager at Lascar, said: “PanelPilotACE really does make the development of advanced user interfaces as simple as dragging and dropping all of the elements you want onto a screen. That ease-of-use means that PanelPilotACE is a true blank canvas - enabling users to quickly create, at a fraction of the cost of alternative development paths, an almost unlimited variety of intuitive interfaces.”

Keeping any warehouse or distribution centre operating smoothly relies on each piece of equipment within the loading/ unloading process operating smoothly and reliably. The sara LBS range of scissor lifts has a maximum load of 12 tonnes as standard and can be programmed to integrate with other equipment on-site.

This leads to a safer and more productive environment, which in turn increases the profitability of operations.

The sara LBS range of scissor lifts is designed to meet the strictest safety standards and perform reliably and efficiently - even in areas with high workloads. Lifts are constructed from steel as standard and include a number of safety features including a ‘deadman’ safety switch and safety trip edge; designed to detect any possible obstructions and stop the lift immediately during descent. A selection of platform tops are available including smooth and non-skid designs..

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Off the chain

Tsubaki has developed a range of chains and associated sprockets for use in the harshest industrial environments, such those exposed to frequent washdowns, harsh weather conditions or involve a chain being submerged in water.

The company manufactures three series of stainless steel chain – the SS, AS and NS chain – which are resistant to corrosion, chemical attack and extreme heat. They find many applications in food and pharmaceutical manufacture and can even be used inside furnaces. They are also popular for packaging machinery and in semiconductor and electrical equipment production, where clean operation is required.

Complementing these are hybrid chain designs, which combine stainless steel and engineering plastic parts with a long lubrication-free working life, designated Polysteel Chain, Polysteel SY Series and LSC Series. These are all much favoured in the pharmaceutical and medical device industries, in printing, papermaking and other applications where clean operation is essential. Their quiet operation also makes them ideal in office equipment.

Tsubaki, one of the world’s leading manufacturers of premium quality chain products, has developed a range of chains and associated sprockets for use in the harshest industrial environments.

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Ready for a

changing world

The EU has set a target for manufacturing to account for 20 per cent of European GDP by 2020. Mark Swift takes a look at the current state of play in the market

While some of the weakness can be explained away by temporary factors, business and consumer confidence remains fragile and the full impact of EU sanctions on Russia have yet to be seen in the data

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he European manufacturing industry has endured a difficult period since the financial crisis in 2008, reflecting the overall difficult position of the Eurozone economy. As we enter Autumn 2014 there may have been signs of light emerging from some European markets, but more recent GDP data for the eurozone bloc again provide some cause for caution. In the second quarter of 2014 the German and Italian economies contracted and France posted no growth.

Of the four main eurozone economies, only Spain posted an expansion.

While some of the weakness can be explained away by temporary factors, business and consumer confidence remains fragile and the full impact of EU sanctions on Russia have yet to be seen in the data. A sharp turnaround in fortunes in not on the cards and we expect eurozone growth to come at just 0.9 per cent this year.

Having fallen faster and further than some of its European competitors, UK manufacturing has proved to be an exception to this weaker performance with strong growth forecast of over three per cent this year and over two per cent in 2015. UK manufacturers have benefitted in particular from the strong performance of the automotive and aerospace sectors where the UK has a particular strength.

This has fed down through the supply chains benefitting the sector overall. This fed through into strong recruitment intentions with employment in UK manufacturing having risen for five consecutive quarters, a trend not seen across the sector for more than a decade.

Report

However, despite this improvement in performance there are few signs that rebalancing of the UK economy away from consumption and towards trade and investment is taking place.

Despite hopes that net trade would now be making positive contributions to UK economic growth, official trade data have continued to disappoint. In the latest three-month period to June 2014 total goods exports fell by 0.7 per cent (the fourth consecutive quarterly drop), with sales to non-EU markets showing a particularly marked decline, coming in at their lowest level since the third quarter of There must now be a relentless 2013. Exports to the EU were drive to free up labour markets, as largely supported by a pick-up workplace flexibility is a two way in demand from Germany but street that benefits workers and the even this modest improvement businesses they work for and have does not mark a reversal in the a stake in downward trend over the past year. Given recent data showing that growth in Germany is slipping there are fears over whether this improvement can be sustained.

While the current prospects for UK manufacturing remain relatively positive, clouds are gathering again over the Eurozone. The latest data for Germany shows that key gauges have fallen to a 15 month low as ongoing tensions over Ukraine weighed on the sector. France fared an ageing population the EU must work with no better with the economy overall showing member states to encourage the brightest and no growth in the second quarter of the year. best of Europe’s young people to choose a career Italy, one of European manufacturing’s traditional in industry. powerhouse has lost a quarter of its industrial Innovation is also key to meeting the economic capacity since 2008. challenges of the future. The EU has huge power So where does UK and the rest of European and economic resources at its disposals and manufacturing go from here? How does it should leverage its international scale to boost improve its competitiveness and implement the the innovation performance of member states. structural and supply side reforms to create Successful programmes such as Horizon 2020 sustainable growth? should be expanded.

There are encouraging signs that European The EU must also change a culture that has leaders now talk about the need for reform sought to regulate, at the expense of promoting and herald a new industrial strategy, which competitiveness. There must now be a relentless has competitiveness at its heart. The new drive to free up labour markets, as workplace Commission and Parliament must take a fresh flexibility is a two way street that benefits look at embracing and delivering a new industrial workers and the businesses they work for and strategy for Europe that supports all member have a stake in. Reducing this flexibility can harm states and, puts the EU back on the path to businesses and their employees. sustained growth. Manufacturers want to see Looking forward the EU has set a target for a reformed EU, one that is more dynamic and manufacturing to account for 20 per cent of focused on economic, as well as social, goals. They European GDP by 2020, up from the current also want to see an EU that is fit for a changing level of just over 15 per cent. This is a tall ask world, doing everything possible to reduce red given the starting base is a depressed economic tape and promoting a robust market economy, bloc surrounded by considerable global while securing multi-billion pound trade deals in uncertainty. But, whilst the EU and member states key markets. can do nothing about the wider outlook, they can Beneath this there are a number of specific look to institute reforms that will free up labour area that the EU should focus on to boost the markets, drive innovation and put competitiveness performance of the EU economy overall and at the heart of their agenda. By doing this they drive a new spirit of competitiveness. Skills are a will give European manufacturing every chance of problem for industry right across Europe. With coming close to, if not hitting the 2020 target.v

Mark Swift Mark Swift is head of communications at EEF, the manufacturers’ organisation. EEF is the representative voice of manufacturing in the UK together with UK Steel. EEF has a growing membership of over 6000 companies of all sizes, employing some 900,000 people from every sector of engineering, manufacturing, engineering construction and technology-based industries.

For further information visit: www.eef.org.uk.

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ERPwhat should you be looking for?

Exel Computer Systems plc provides an insight into the most important factors manufacturers are taking into consideration when deciding on their ERP investment

An investment of this nature involves making a long-term partnership/ collaboration with a supplier, because once the system is in you are reliant on them if anything goes wrong

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his needs to be set against an ERP sector which has seen wide ranging consolidation over the past decade, inevitably leaving manufacturers with fewer products and vendors from which to choose. Not only do many solutions now look similar, they often promise the same level of functionality. The functionality considerations most often sought include real time Key Performance Indicators (KPIs), Workflow Management, fully integrated Shop Floor Data Collection (SFDC), Field Service Management (FSM) capabilities and seamless integration up and down the supply chain. It goes without saying that the best solutions are expected to be built on the latest architecture and designed to be future-proof.

Faced with this, a growing number of manufacturers have made a high priority out of working with an UK author such as Exel. For some, such as Linecross, a full service supplier of innovative, high quality engineered polymer solutions, it was the decisive factor.

As finance director David Austin explains: “We quickly realised that most of the solutions we reviewed could probably do what we needed, which brought the focus onto the solution provider. An investment of this nature involves making a long-term partnership/collaboration with a supplier, because once the system is in you are reliant on them if anything goes wrong. We didn’t want a system developed by a couple of guys in an office, nor did we want to deal with a large reseller of a US programme developed in India. We wanted to work with a partner that shared our ethos, our approach and our passion for our business.”

He continues: “It was obvious from the outset that Exel not only was a similar size to ourselves but also shared many of the same values. It was as passionate about its own products as we are to ours, understood our business and was committed to developing its products on a long-term basis. The fact Exel is also just down the road also helped,” adds Austin, “because if anything ever did go seriously wrong, I could be down there right away until I got it resolved.”

Another key consideration is investing in a system that provides class leading levels of customisation

ERP

allowing the best possible fit not just with existing business processes but also the necessary flexibility and agility to adapt in the future as these business processes evolve. This was very much the case for Kent Brushes, one of the UK’s oldest companies and long-time user of Exel’s ERP solution, EFACS E/8, as production manager and IT director Steve Davis explains. “It is the flexibility and customisability of EFACS E/8 that remains the most valuable contribution to the company’s current and ongoing success. It remains as important as ever for our ERP system to be easy to customise without going down the path of bespoke. The ADAPT toolset that comes with EFACS E/8 enables us to internally tailor the system to our requirements and also quickly and cost effectively make use of external consultants.”

While selecting a UK-based author and a flexible, customisable ERP solution are clearly important factors, so also is the ability to successfully implement this quickly, efficiently and with minimal disruption to the ongoing nature of the business. For some manufacturers, especially those without dedicated IT teams, this is mission critical because a disruption in day-to-day running could cause the company to go under.

However, what works for one company won’t necessarily work for another, so what is central is the need for a flexible, reliable implementation approach that makes best use of the resource of both vendor and manufacturer. For example, Ondrives Ltd, a precision manufacturer of gears, gearboxes, bearing housings and mechanical drive components, opted for a very specific, in-house, approach as sales director Andy Higgs explains.

“I called Exel and told them we would be going live on April 1st 2011, which was only a matter of a few weeks away. I then told everyone involved at Ondrives they were going to have a headache for a few weeks.” And go live the company did, successfully, on April 1st, and while it undoubtedly was hard work, Higgs credits the success to “everyone pulling together, including the help we received from Exel.”

It was a totally different scenario with Bennett Opies, a leading manufacturer of quality pickles and preserves enjoyed across the world. Business development director Paul Fox explains why.

“With Exel we knew we would be building a partnership directly with the authors of the software – those most knowledgeable about the system – and this proved invaluable during our implementation.” This was because of Opies’ recognition of the value of the right approach to training. Not only did senior management attend

in-depth training at Exel’s dedicated training centre, Exel provided an onsite consultant that worked directly at a hands-on level with each EFACS user.

This had a much greater benefit than simply ensuring that the implementation went smoothly, as Fox explains. “Many times the Exel consultant would make suggestions about doing things differently which had a real impact on our overall business approach. This was exactly what we needed and as a result, we ended up with a business in much better shape than when we began and much better than we expected.”

Finally there are businesses, which have more than just one company to take into consideration.

As well as seamless inter-company communication, a key requirement here is accuracy and visibility of data not just at a company but group wide level. Leading manufacturers and suppliers of commercial building interiors Laidlaw Interiors Group has first-hand experience of this.

Generating sales of £130m from its 1500 staff in 35 locations in the UK and overseas, the group initially was selecting an ERP system for Komfort, one of the group companies with a £45m turnover.

Ian Govier is head of IT & business systems for the group and explains just how important this was. “EFACS E/8 from Exel had been identified as the best ERP solution, not just for Komfort but for the entire group. At the heart of this decision was the fact that EFACS has a hierarchical framework structure ideal for individual companies working within a combined group. EFACS also provides a built-in workflow facility that enables companies to automatically interact with each other while the powerful customisation facilities make it possible for the same solution to be tailored to the specific needs of each company. Irrespective of what the user sees, everything across the entire group will ultimately be driven by EFACS E/8 in the backend.”

Modern ERP has evolved to the extent that many systems, if implemented correctly, now have the potential to interact with not just every area within a manufacturing enterprise, but increasingly outside the physical constraints of the business to suppliers and customers alike. While every manufacturer will have their own unique requirements, it is clear that to get the best from any ERP investment, companies need to recognise this and make any decision based on a holistic business perspective and not an IT, functionalitybased set of considerations. v www.exel.co.uk

www.manufacturingtoday-europe.com 11

Plastic bearings

up Bearing

T

he history of the plastic plain bearing goes back a long way, spurred on by the discovery of the lower friction properties of nylon in around 1860.

But in the last few decades, the composition of plastic materials has been refined considerably; in the last 30 years igus has developed 35 different tribologically-optimised materials, which offer a lower coefficient of friction than conventional metals or composite materials – from the economical iglidur G all-rounder to the FDA-conforming iglidur A180 material. In addition to being lubricant free, plastic bearings are maintenance-free, impervious to dirt, water, chemicals, heat and shock loads; and because they have essentially the same dimensional structure as conventional bearings they are relatively straightforward replacements.

The base of each polymer bearing is, depending on specific requirements, a carefully selected and blended thermoplastic matrix material. To increase the compressive strength of the bearing, reinforcing fibres are embedded within the material during the moulding process, as well as solid lubricants that optimise resistance to wear and reduction of friction. The solid lubricants are very important for the dry-running performance

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Rob Dumayne reviews the latest developments in plastic bearings, and how industrial manufacturers can use them to produce cost savings while increasing their environmental credentials

of bearings between the running surface, usually a shaft and the bearing, where they sufficiently lubricate the immediate area.

The great advantage of this type of homogeneous construction is its lack of layers; during the transition to the next layer, there is a distinct change in material properties which can cause wear with traditional composite bearings, this usually means the end of the bearing, since the huge increase in rates of friction and wear lead to catastrophic failure. With an injection-moulded iglidur plain bearing however, this does not occur, and the friction and wear rates are constant over the entire wall thickness and therefore life of the bearing.

Replacing metal bushings igus self-lubricating and maintenance-free plastic plain bearings are today replacing millions of metal bushings that require oiling or greasing.

They increase the safety of the machinery, reduce costs and protect the environment; and because igus rigorously tests it plastics continuously – over 8000 tests per year for durability, friction and wear – their lifespan can be reliably predicted.

At www.igus.co.uk/iglidurproducts, the ‘Product Finder’ tool helps engineers find the

most appropriate iglidur polymer material that matches specific requirements (highest service life in dry run operation, dirt-resistant, vibrationdampening, resistance to chemicals, good for edge pressure, etc) and state the allowed static surface pressure, as well as upper and lower temperature information.

Every year igus develop many new and innovative plastic-bearing materials; this interdisciplinary research involves mechanical engineers, materials scientists, physicists and chemists working closely together to meet industry demands. By investing in plastic bearings, engineers can reduce production and maintenance costs whilst their equipment and machinery operate with total reliability in a more environmentally friendly way. v

Rob Dumayne Rob Dumayne is a director at igus, the largest producer of injection moulded polymer bearings and reinforced plastic cable carriers in the world.

Product lines include industry-leading e-chain cable carriers, chainflex continuous-flex cables, iglidur plastic plain bearings, igubal spherical bearings, drylin linear bearings and guide systems.

For further information visit: www.igus.co.uk.

Social media & productivity

Are we nearly there

yet?

Phil Lewis looks at the evolution of social media in the business world, and explains how, ironically, for manufacturers, it can play a pivotal role in boosting productivity

Reports of Facebook being banned as it was viewed as a distraction, and instances of employees being dismissed because Facebook had revealed to managers that employee absences were not genuine, were not uncommon

S

ince Mark Zuckerberg invented Facebook a decade ago it has attracted a billion users worldwide. Twitter now reports over 200 million users who send more than 400 million tweets every day. Compounded by record IPO valuations well into the $billions, there is little doubt that the social media way of life is here for the duration.

But while it may seem like social media is still relatively new, it has moved through a number of stages in its ten-year evolution so far. Only a few years ago when its popularity amongst consumers was soaring, its role in a business environment was at best confused, and at worst extremely negative.

Reports of Facebook being banned as it was viewed as a distraction, and instances of employees being dismissed because Facebook had revealed to managers that employee absences were not genuine, were not uncommon. In my experience the mere mention of social networking in a business environment - especially within manufacturers - has resulted in negativity bordering on rage as managers fear a derogatory impact on the productivity of their workforce.

Are we nearly there yet?

In the years that followed, the business software industry merely fanned the flames of these perceptions, adding social networking applications alongside systems with no real agenda or purpose. Mere ‘chatter’ was perpetuated but there was zero business value.

The value of social networking, or social media as it was becoming known as, in a business environment started to be seen as forward thinking, and predominantly consumer-facing, businesses, embraced its role as a marketing tool – incorporating blogging, Facebook, Twitter and YouTube into marketing programmes.

www.manufacturingtoday-europe.com 13

As data continues to explode and decisions have to be made faster and more intelligently, social media has a pivotal role to play in the enterprise – not just for marketing but in the systems which underpin crucial back office functions

Much of this was focused on capitalising on the huge audiences these platforms attracted and campaigns were often on exploiting them as additional outlets to reach audiences.

In the wake of this shift, the role of social media in business suddenly resonated as valid – but its role had been monopolised almost entirely by the chief marketing officer.

Other functions within a business remained largely immune to the charms of social media, with negative connotations of Facebook as a workplace distraction prevailing, and many managers unable to make the mental shift from consumer products asking you to ‘like’ them on their Facebook page, to the role of social media in running a production plant. That is, until very recently.

Revelations for a revolution The disastrous early examples of ‘social chatter’ within the business environment highlighted that for social media to be valuable in this environment, it has to be used collaboratively. Instead of chatter persisting in parallel with the task in hand, it must be an integral part of that task, or the business application in use.

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And while marketing programmes had used social media successfully, the majority of campaigns were focused on platforms as channels and few exploited the capabilities of social media to support multi-way conversations.

In light of these lessons and in the hands of other departments, it soon became apparent that social media could be used to engage and empower employees to make more informed decisions, which in turn can address problems, reduce procurement costs, boost productivity, facilitate better customer relationships and drive profitability.

Applied to the business software, which underpins these functions, social media represents a whole new way of promoting collaboration amongst disparate groups. Instead of mere chatter, it uses messages and alerts that are embedded in the business applications themselves to influence business processes and deliver value to users. It harnesses relevant, live information to capture and inform the real decision making process – a process which is almost impossible to create fully from unstructured communications around a boardroom table, around a water cooler,

Social media & productivity

on a telephone call or even over e-mail.

It works in the same way as Facebook and Twitter through selecting feeds from say, an ERP system that the user defines. But as well as following individuals, users can follow machines, projects, orders and even pieces of data which are pertinent to their business function, and receive a constant feed of everything which is relevant to it. For example, on the back of an urgent order, a production manager might follow details on current production schedules, stock levels, and warehouse capacity, as well as the people responsible for those areas, in order to ensure that he has a comprehensive, meaningful perspective on exactly how the order can be met, and in what timescales. With the ‘Internet of Things’ a production manager can even follow the ongoing performance of a machine on the production line. In a manufacturing context, social media is so inclusive, it can even give inanimate objects a voice!

And of course the other crucial benefit of applying social media to business software is that generation Y – the new employees who find it incredibly difficult to get their head around

working with a form-based clunky system having spent their university years immersed in the likes of Google, Facebook, YouTube and Twitter – can embrace and enjoy using it instantly. This inevitably means less training and more time spent on the task in hand.

A meaningful makeover The truth is that business software was well overdue a makeover. Through incorporating social media thinking to this makeover to ensure that any one user is only a click away from another user’s world, business software has undergone an unprecedented transformation – to social business.

As data continues to explode and decisions have to be made faster and more intelligently, social media has a pivotal role to play in the enterprise – not just for marketing but in the systems which underpin crucial back office functions. Through driving user engagement, empowerment to make better, more informed decisions, and boost productivity, the success of social business in the workplace may only be at the very beginning of its journey. v

Phil Lewis Phil Lewis works at Infor. Infor is fundamentally changing the way information is published and consumed in the enterprise, helping 73,000 customers in more than 200 countries and territories improve operations, drive growth, and quickly adapt to changes in business demands.

For further information, visit: www.infor.com.

www.manufacturingtoday-europe.com 15

What can go

wrong?

There are a myriad of issues that can cause electric motors to fail. However, among this gallery of problems there is a set of usual suspects that crop up more often. Jonathan Wilkins runs through a list of the top five causes

The oft-stated rule is that the life of the motor winding insulation is halved for every ten degrees centigrade of additional heat to the windings

E

xcessive heat is one of the biggest killers for electric motors; this is the granddaddy of motor issues. In fact, the other four items on this list are often damaging precisely because they contribute to excess heat generation.

The oft-stated rule is that the life of the motor winding insulation is halved for every ten degrees centigrade of additional heat to the windings. Because of the excessive levels of deterioration that entails, keeping your motors running at optimum temperature is one of the best ways to extend their life.

Dust and contamination: Can’t keep them out Particles suspended in the air will find their way into an electric motor. Once inside, the damage they cause depends on the type of particle. If they are abrasive they will wear down components, while some particles are electrically conductive and can interfere with currents across components. Lots of these particles blocking cooling passages will also contribute to overheating. Naturally, selecting the right level of IP (Ingress Protection) can help with this to a certain extent.

Power supply issues: Thunderbolts and lightning, very, very frightening Harmonic currents caused by high frequency switching and pulse width modulation can lead to voltage and current distortion, overloading and overheating. All of these factors reduce the life of the motor and its components and increase long-term equipment costs – but that’s only one issue. Power surges cause their own problems, as do over- and under-voltage. Managing these issues is a task that requires constant attention and care.

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Electric motors

All of these factors reduce the life of the motor and its components and increase long-term equipment costs – but that’s only one issue. Power surges cause their own problems, as do over- and under-voltage.

Managing these issues is a task that requires constant attention and care Humidity and moisture: I feel it in my fingers By themselves moisture and humidity contribute to the corrosion of components, but when coupled with particles from the air they can create a deadly combination for a motor. Certain particle contaminants can combine with moisture and create even more damaging solutions, shortening the life of motor components even further.

Improper lubrication: The Goldilocks zone The problem with correct lubrication is that it’s a

Jonathan Wilkins balancing act that can be very difficult to achieve.

Just like Goldilocks and the three bears, there are multiple options to get it wrong and only one way to get it right. Over-lubrication and underlubrication both pose problems, but there can also be issues with contaminants in the grease, or the use of a lubricant not suited to the task at hand.

It is worth remembering that these problems are all interrelated, tackling only one of them won’t necessarily solve the problem. All of them also have one thing in common; they can be avoided with correct motor usage and maintenance as well as environmental management.

When European Automation buys a motor for future re-sale, we ensure that these problems are no longer affecting it. However, you should be aware that the European Design Directive puts a limit on the amount of repair work you can do without beings considered to be ‘introducing a new product to the market’, rather than repairing an existing one. v

Jonathan Wilkins works at European Automation, which stocks and sells new, used, refurbished and obsolete industrial automation spares. Its global network of preferred partner warehouses, and wholly owned distribution centres, enables it to offer a unique service within the automation industry, spanning the entire globe. It provides worldwide express delivery on all products meaning it can supply any part, to any destination, at very short notice.

For further information visit: www.euautomation.com.

www.manufacturingtoday-europe.com 17

Get

positive Gary Wyles highlights the five signs of disengagement

Engaged employees directly impact the bottom line through increased levels of customer satisfaction, proactivity and innovation

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he positive aspects of employee engagement are well documented. Yet in the manufacturing industry, we still seem to struggle to achieve happy and productive employees. In a recent survey, sponsored by Festo Training & Consulting, 63 per cent of manufacturers say that maintaining morale is the biggest issue within the workplace, followed by employee engagement (53 per cent). However, less than half of the respondents (46 per cent) measure employee engagement. The survey also showed that the majority of managers spend approximately half of their time dealing with disengaged employees. This is a double whammy that impacts on productivity.

Employee engagement makes the difference between keeping valued staff and losing them to competitors. It creates a highly productive workplace and enables organisations to grow faster and more sustainably than others. It’s what underpins the brand of organisations and contributes to becoming one of the ‘Best Companies’ to work for. If there are no measurements in place there are five warning signs of disengagement.

1. Poor retention of staff If an organisation has a high turnover of staff, this could be a sign of disengagement. Ask the HR department for figures for how many employees have left in recent years. Conducting exit interviews is an important part of understanding the reasons why employees leave. This takes tact and diplomacy, as staff are often reluctant to divulge the exact reasons. Perhaps it might be a poor manager, lack of reward and recognition or slow career progression. Understanding these reasons can help combat churn in the future.

2. Lacklustre business performance A perennial issue for business leaders is how to increase profits and turnover. Engaged employees are

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Recruitment

more productive and can be the key to unlock business success. Whether the organisation is looking to develop new markets, launch new products and services or introduce new processes, all of these involve motivating staff to achieve these goals. Engaged employees directly impact the bottom line through increased levels of customer satisfaction, proactivity and innovation.

3. Poor productivity While the desire to grow and expand is in place for manufacturers, the industry suffers from a skills gap. This means that productivity needs to be high – usually summed up in the phrase ‘doing more with less’.

According to the Office for National Statistics, the UK’s output per hour is 21 percentage points below the average for the rest of the major G7 industrialised economies in 2012, the widest productivity gap since 1992.

4. Skills gap A recent EEF report1 found that, “There is an increasing risk that growth plans will be restricted because of problems accessing employees with the required skills.” In Festo’s recent research, we have found that 82 per cent of manufacturers are suffering a skills shortage and 86 per cent say this is likely to stay the same of get worse over the next year. The largest skills gaps are in experienced engineers (61 per cent), skilled shopfloor (57 per cent), and multi-skilled engineers (40 per cent).

While employee engagement does not directly lead to closing the skills gap, it will aid recruitment of people and the retention of those already in the organisation. This means that investment in training up employees will be retained for the benefit of the organisation.

realisation that the modern day workplace has changed. Pay and perks have been replaced by flexibility, self-realisation and work-life balance as key motivators.

The first step to understanding employee engagement is for leaders to assess the levels in their own organisation. This might be the first time that the views and opinions of employees have been listened to. It can be tough and it can be challenging. It is easy for issues to be glossed over. Measurement is no good though if it’s just for measurement’s sake, or for reaching a specific target.

Allow people to tell managers what they think and feed back to them. Leaders must be prepared to identify priorities for action and when these are going to be put in place.

Increasing employee engagement is not something to be entered into lightly but it is worth focusing on. High levels of employee engagement will ensure the business goes from strength to strength, outstripping the performance of competitors, attracting the best talent and becoming one of those companies that others look at with admiration and, quite often, a touch of envy. v

To find out more about employee engagement and why it is important, download the whitepaper Manage to Engage…, The role of managers in employee engagement, available from www.festo-didactic.co.uk/ee

Gary Wyles Gary is managing director of Festo Limited and has been with the company for more than 25 years. Festo Training & Consulting specialises in the development of people, organisation and technology. Offering a range of open courses, structured development programmes and tailor-made, customerspecific projects, the business has over 40 years experience when it comes to training clients and helping them achieve their maximum productivity. For further information visit: www.festo-didactic.co.uk.

1 ‘Skills for Growth: A more productive and flexible labour force’. EEF The Manufacturers’ Organisation

‘Tough decisions in a downturn don’t have to lead to disengaged employees’. The Hay Group. 2009

2

High levels of employee engagement will ensure the business goes from strength to strength, outstripping the performance of competitors, attracting the best talent and becoming one of those companies that others look at with admiration and, quite often, a touch of envy

5. Low levels of customer satisfaction A price driven strategy is one of the hardest for UK manufacturers to adopt, due to tough competition from new and emerging economies that are focused on driving costs down. UK manufacturers have to assess different ways to compete. This might be through innovation and new technologies, however, customer service and satisfaction underpins all drives for growth.

There is a direct correlation between customer satisfaction and employee engagement. A report by the Hay Group2 says: “Businesses that have high levels of engagement show customer satisfaction scores 22 per cent higher than companies with low levels of engagement. But companies that both engage and enable employees demonstrate a total increase in customer satisfaction of 54 per cent.”

Part of understanding successful practices for employee engagement is the fundamental

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Revolutionary times for

manufacturing Three industrial revolutions have been driven by steam, electricity and electronics, now the ‘Internet of Things’ is powering Industry 4.0.

By Tom Comstock

Technical training is important at the launch phase, but also throughout the life of the equipment to provide information for new employees as well as refreshers for existing staff

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I

n preparation for the next decade when there will be literally billions of network-connected physical products in the world, the concept of a fourth industrial revolution ‘Industry 4.0’ is taking hold whereby new ways to harness the power of the internet is being driven across manufacturing operations. Soon internet-enabled products, machines and devices will communicate semi-autonomously with us and among themselves to optimise production and resources, resulting in a completely different production and end-user experience for these products.

When companies use smart, connected machines, they can manufacture with far greater detail and intelligence, and then use the information to be more productive. For example, it will be possible to easily schedule thousands of machines across multiple locations remotely, from a central hub. Under this type of scenario, machines could self-diagnose and order spare parts autonomously within a fully connected system. Better-organised production and maintenance scheduling could be introduced to further increase output while minimising down time. This would help improve efficiency and value across manufacturing operations.

In this burgeoning and dynamic market, information will be transferred across departments, within and between manufacturing cells and be used to produce accurate real-time production information. When everything about a production system and its condition is known and visible, it becomes more controllable, flexible, efficient and serviceable.

Industry 4.0, however, is more than just machines talking to other machines. People will still play an important role to ensure the right product is being made in the right way, at the right time. IDC Manufacturing Insights emphasised in a recent report written on the factory of the future that ‘despite growing plant automation, people — and the flexibility and decision-making capabilities they provide — will be at the centre of the factory of the future. Finding skilled workers will prove to be a key issue in

Industry 4.0

the industry.’ In fact, the skilled worker shortage IDC refers to already exists. For this reason, it is imperative that these workers are as productive as possible, which includes making the right decisions at the right time, to help ensure the highest possible productivity.

Compress to accelerate By adopting connectivity within and between machines, people and processes – and the products they make – companies can more efficiently design and produce 'mass customised' products uniquely tailored to individual demand. To support and accelerate this new type of Industry 4.0, manufacturers must have better, faster access to visibility on the shop floor. This technology is now available, and can now be used to accomplish these objectives.

As part of my role at Dassault Systèmes, I have had the opportunity to see first-hand what possibilities exist with enhanced visibility and control from across a wide scope of manufacturing operations. One example is a large engine and industrial equipment manufacturer that increased quality, throughput and efficiency.

They implemented a Dassault Systèmes software solution that lets the company configure products that better, more closely match customer requirements. And, with expanded visibility to better manage their operations on a multi-site perspective, significant throughput increases have been made possible by adding output without additional fixed costs.

Another company was able to increase quality by better matching automotive components for final build and assembly according to their individual manufacturing tolerances. This type of operations management technology becomes even more attractive to enterprises when logistics, maintenance and quality systems are fed with realtime manufacturing intelligence to feed continuous improvement initiatives.

The results of this movement can also be seen in electronic-equipped consumer devices, such as smart phones and automobiles that communicate autonomously. Also on the horizon are more 'intelligent' and connected products that have an understanding of their environment and can react accordingly. With these, location condition, temperature, energy consumption and other lifecycle characteristics can be communicated between machines and the products they make without any human intervention.

Energy and data Energy consumption is another interesting component of the fourth industrial revolution.

With ready access to ‘live’ energy costs and the flexibility to easily move operations across sites, Industry 4.0 makes it possible to switch

manufacturing to locations that take advantage of energy prices that are best suited to specific operations. Adding supply and transactional costs to the equation gives an even bigger picture that helps people make better business decisions based on more accurate and timely information.

In the end, it all comes down to the user experience. The more manufacturing visibility and intelligence that is readily and easily available to make better decisions, the more likely a manufacturer can make products that are wellreceived in the marketplace, resulting in greater customer satisfaction from a more positive user experience. This is the rationale behind why Dassault Systèmes has been investing in building a 3DEXPERIENCE platform so more people can view and understand the mass of data and optimise their actions accordingly. When big data is marshalled this way, it becomes usable intelligence and a valuable company asset – as more parts are added to the whole ‘system,’ greater options are revealed and performance increases accordingly.

Where's the money Like all revolutions, Industry 4.0 is affecting a redistribution of wealth. Some forward-looking companies view manufacturer’s big data assets as a huge potential market opportunity. Several are developing Internet of Things strategies, and are already helping their customers to, for example, introduce predictive maintenance scheduling that is less disruptive to productivity.

Applying an enterprise approach to manufacturing operations management – ideally within a modern 3DEXPERIENCE software platform (or equivalent) being deployed throughout an enterprise – readily links operations to real-time manufacturing intelligence. And, this

strategy can reduce errors that can result from using data that is trapped in silos or ‘data tombs.’

The electronics industry that has so rapidly advanced its manufacturing technology gives significant clues to the potential future for other types of producers. Quick, accurate responses to profit and loss, prompt reaction to market demand, retention of company knowledge, a powerful innovation and reward culture, and control of supply chains and channels have catapulted the electronics industry to the success it currently enjoys. Other types of manufacturing that have not adopted this dynamic approach are ill prepared for the coming times.

Integrating and connecting within and beyond an enterprise offers new technical and commercial possibilities that enable the capitalisation of revolutionary ideas. Manufacturing is becoming another cog in the great machine of the internet.

This means that more data can be treated as a business resource to be exploited for profit. Using this new asset to optimise individual machines, manufacturing cells, whole factories and potentially a global production environment offers untold business opportunities. In the past, fortunes were made from the first three industrial revolutions; today Industry 4.0 offers even greater promise to those who venture. v

Tom Comstock Tom Comstock is Vice President of DELMIA Strategy & User Experience, Dassault Systèmes. Dassault Systèmes, the 3DEXPERIENCE company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported.

For further information visit: www.3ds.com.

www.manufacturingtoday-europe.com 21

George Utz

Breaking the Reinser

Epsilon technology for George Utz Superior cooling technology for maximum efficiency: George Utz relies on German cooling system manufacturer Reisner GmbH to support its injection molding production.

The Reisner ‘Epsilon’ cooling system is equipped with Turbocor compressors and a unique control unit. It reliably provides the needed cooling capacity while operating on a minimum consumption of energy. This combination of operational safety and economic efficiency has proved extremely successful for two years now.

mould W

George Utz Ltd, part of the Utz Group, is expanding its Alfreton factory to meet rising demand

George Utz Ltd Products: Material handling products Sites: UK, Switzerland, Germany, Poland, France, the US and China Employees: Aprox. 800 www.utzgroup.com

ith a history dating back nearly 70 years, the Utz Group has developed a market-leading reputation in the design, development and manufacture of both custom and standardised material handling products in plastic.These are boxes, containers, pallets and returnable transport packaging (RTP) for the global market.

The company was founded as Georg Utz,Toolmakers in Zürich, Switzerland by Mr Georg Utz during 1947 and today remains a successful family owned company with production facilities in Switzerland, Germany, the UK, France, Poland, the US and China. George Utz Ltd was established as the UK branch with a sales office of the group during 1990 in Alfreton, UK and continues in the tradition of delivering off-the-shelf and bespoke material handling solutions across the automotive, chemistry and pharmaceutical, food, textiles, postal, warehouse and logistic, electronics and retail and distribution industries.

Along with the other associated members of the wider Utz Group, George Utz Ltd is able to act independently to respond to the needs of the local market, while enjoying the financial support and stability of its healthy parent company. “The Group has a turn over of around 200 million euros and approximately up to ten per cent of this is reinvested directly into the business for new facilities, equipment and technologies,” explains George Utz Ltd general manager, Carsten Diekmann. “The main market focus for

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George Utz

the group is Europe, the US and China and all of these areas are currently developing well.The need for logistics is growing and we follow our customers and grow with them so we offer the same good service throughout the entire business. Presently the group works with nearly 130 injection and vacuum moulding machines and converts around 50,000 tonnes of raw materials into products. Investment is mainly in machinery and injection moulding tools where we are investing in new product families in Europe and globally.”

Within the UK specifically, George Utz Ltd is preparing to double its turnover by 2020 and to capitalise on the momentum it has built over the years. “Within the UK we have experienced constant growth and during the last ten years we won considerably new customers within England and Ireland with new innovations and products. In fact each year we deliver between nine and ten new products that are developed inline with customers’ needs and also for the general market,” Carsten says.

“We have a strong growth strategy in place and we

Inotec UK

inotec Barcode Security are Europe‘s leading Auto ID label specialists, supplying George Utz as their chosen label partner for ten years and supporting their significant investment in in-mould technology. inotec‘s in-mould labels, allow full-colour logos and barcodes, to be injection moulded into the wall of a container, eliminating the need for costly post mould, printing or label application processes. The permanent bond offers a smooth edgeless surface, highly resistant to heat, sunlight and totally waterproof.

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need additional capacity and new machinery and equipment as well as to reduce lead-time, to be leaner and to be more efficient because customers tend to not want to wait anymore.They need a product today and they want it more or less tomorrow.”

During March 2014 George Utz Ltd announced a £3.5 million expansion to its Alfreton factory including increased manufacturing space, offices and warehousing to meet the rising demand for of-the-shelf products and bespoke RTP solutions.

The increased manufacturing space will house a new 2700-tonne injection-moulding machine to complement the UK companies existing 650-tonne to 1000-tonne machine range. “Our plastic containers are primarily used in the retail and automotive markets where they are used to move parts around supply chain company’s distribution centres.The UK is moving in the right direction and, although it is still tough, there are lots of positive signals. We make approximately a million parts a year and with this investment, we are looking to double our output in the future.The building work should be completed by Christmas and then the additional injection moulding and vacuum forming equipment can be installed,” Carsten elaborates.

“We have a core strategy for really high quality machinery where we invest in additional equipment that is also more energy efficient and environmentally friendly. Within the Group the main companies that supply our injection moulding equipment are KraussMaffei from Germany and Engel from Austria,” he continues.

Environmental concerns and responsible operation are at the core of how George Utz Ltd conducts its business and interacts with its customers.

“We are audited in the UK for our environmental management system, which is compliant under ISO 14001,” Carsten details. “We recycle the material that we use and we also promise customers that once products have reached the end of their life cycle, that we will take the products back and recycle it to use the raw materials in new production runs.

Furthermore we also use our own production rejected heat to heat the factory and our offices so environmental concerns are something that have been quite important to us for many years.”

As well as increasing the productivity of the company through greater numbers of machines and more efficient energy management, the new equipment due to go into operation in 2015 will allow George Utz Ltd to enter in a new market with a new plastic pallet as an effective alternative to the traditional wooden design. “We will enter into new markets through the creation of 1200 millimetre by

1000 millimetre dimension plastic pallet for the UK market, with the additional advantage that we will be the first UK plastic pallet producer and we will have the benefit of avoiding logistical costs because we will manufacture here in Derbyshire,” Carsten says. “The pallet will be produced using a new large injectionmoulding machine. An additional 1000-tonne injection-moulding machine for RTP products will arrive at the end of 2014, supplied by KraussMaffei from Germany.”

In terms of the advantages of plastic pallets over wooden pallets, Carsten observes: “The lifetime of a plastic pallet is longer and the quality is very high.

The dimensions can be guaranteed, which is very important for automated warehouses and there is not a problem with water or oil becoming absorbed into plastic pallets.The main advantage is the lower Total Cost of Ownership (TCO) of the pallet and in terms of health and safety plastic pallets does not splinter in the way that wooden ones can, which is very important in food processes and distribution.”

As George Utz Ltd and indeed the wider Utz Group seeks to expand its market share and grow

the business, its will continue to focus on increased capacity, efficient fabrication and new products.

However, core to its strategy is also it commitment to long-term customer relationships as Carsten concludes: “We are committed to develop the company further and offer our customers the security to know that we will produce locally for the local markets and remain on hand for the next ten to 20 years, so it is real long-term investment.”

THE KraussMaffei Group

The KraussMaffei Group is amongst the world’s leading suppliers of machinery and systems for producing and processing plastics and rubber. Its products and services cover the whole spectrum of injection and reaction moulding and extrusion technology, giving the company a unique position in the industry. The KraussMaffei Group is innovation powered, supplying its products, processes and services as standard or custom solutions which deliver sustained added value along the customer’s value adding chain. The company markets its offering under the KraussMaffei, KraussMaffei Berstorff and Netstal brands to customers in the automotive, packaging, medical, construction, electrical, electronics and home appliance industries.

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Teagle Machinery

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Generations on Teagle Machinery Ltd is very dedicated to developing innovative new products and getting them to market effectively

Teagle Machinery Ltd Products: Agricultural plant and machinery Sites: Global Employees: 150 www.teagle.co.uk

I

n 2013 the family-run business Teagle Machinery Ltd celebrated its 70th anniversary, which was born from a long history of running farms. With a keen interest in manufacturing machinery, Tom Teagle Snr started off supplying local farmers in the Cornish area with equipment such as tip carts, manufacturing more sophisticated machinery as the business developed. As interest grew, the decision was made to sell off parts of the family farm to invest in the infrastructure needed to make the machinery. Today, the original farmhouse on the site has become a conference centre for training distributors, dealers and service teams. “With six members of the family involved daily in the company, we try very hard as we grow to retain that family business ethos, which is really important to all our customers.

“There was a real boom for mechanisation in

the post-war years and the range and scope of machinery that my grandfather developed was quite incredible,” says Tom Teagle, sales director, continuing: “He actually developed his own twostroke engine that was fitted into hedge trimmers and lawn mowers and all kinds of different handheld machinery. We actually made some of the first mounted broadcasters and spreaders in the world.” The business has manufactured a range of products, from fertiliser spreaders, to the Titan range of trailers and the Toucan forage harvester.

In the mid 1980’s Teagle Machining developed its first machine for processing straw to be used for bedding livestock. Named the Tomahawk 100, the range has become the cornerstone of the company and makes up a large proportion of its turnover. The Tomahawk range is made of the widest variety of feeder bedders available from any manufacturer in the world with over 30 unique

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Teagle Machinery

models; these machines are designed to deliver comfort to livestock and to ensure the correct preparation of feed and performance. “One of the most important strands to our success has been ensuring that we offer innovative and reliable products, and to achieve this ten per

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cent of our workforce is focused on research and development. It is also important to get the product to market effectively and whilst the UK is a very mature industry we are successfully developing it further, finding new markets and developing new products. Recent growth has been

on the back of enormous investment in developing export sales, which started 20 years ago when my father began focusing on the export trade,” explains Tom. Over the last six years, this drive has been further progressed, seeing in the employment of a US based salesman and a European sales manager, to which Tom adds: “When working in export markets it is important to have a structured aftermarket service, whether that is servicing or spare parts and we ensure that these aspects of the business are first class.”

One of the key considerations for the company is addressing the difficult question of how to protect designs and intellectual property from being copied, particularly when selling to a global market. “The way to ensure that it doesn’t become a problem is to make sure that by the time someone has copied one design we are already onto the next one. In addition to technology within agriculture moving at a fast pace, farming practises are also changing quickly, and it is really important that the machinery we are offering to the market is in tune with the demand from the farmers,” says Tom. Through ongoing research the business is always looking for ways to offer machinery to

farmers to facilitate this to make sure that livestock are comfortable, productive and ultimately, for the farmer, that they are profitable.

As a family company it reinvests heavily to ensure a good foundation for future growth. Every year over the last six years there has been a major capital project delivered on the site, from a new hall for precision machining, to a shot blasting and powder coating facility, the redevelopment of the farmhouse, and a new production hall specifically for manufacturing larger machinery. “As farms grow larger, so do tractors, and ultimately machinery too. In 2015 we will open an additional building to accommodate a restructuring of the factory layout.

Our focus has been on utilising the space we have more effectively to reach new potential.

“We have also established what is essentially a strategic partner arrangement, where we work hand-in-hand with businesses specialising in

‘‘

In addition to technology within agriculture moving at a fast pace, farming practises are also changing quickly, and it is really important that the machinery we are offering to the market is in tune with the demand from the farmers

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Teagle Machinery

electronics and hydraulics, both very sophisticated systems,” points out Tom, explaining that this ensures the ability to keep up with the fast moving pace of the technology. Recognising the challenge of recruiting individuals with the correct skill base to succeed within the manufacturing industry, the company works closely with Harper Adams Agricultural University, and also provides apprenticeship-training schemes, in all aspects of the business.

During the first three quarters of 2014 the product range has been sold to over 35 countries worldwide, trading to countries such as Germany, Poland, Czech Republic and Ukraine, as well as North America, South Africa, Japan, Australia and everywhere in between. Commenting, Tom says: “The strength this this give us is that we can spot trends that are taking place and develop machinery to take to other parts of the world as the trend emerges. That presence worldwide is an enormous strength for us.” The company’s leading position is highlighted by the 50 per cent market-share in the UK. “Of course we have to work very hard to stay in that position and almost every year we are releasing a new product. We need to maintain the focus on our home market because it provides us with a significant ability to continue with our export activities. We are continuing to put in additional resources and recruiting salesmen to be resident in export regions, and by localising our offering, and developing machinery specifically for those markets we are going to substantially develop our turnover,” he adds.

Over the past five years not only has the business directly grown its manufacturing capabilities but it has also invested heavily in renewable energy sources such as PV and wind power and today 50 per cent of electricity used on the site comes from renewable sources. “We have a really strong appetite for growth and nobody on the board is satisfied with sitting still.

We are always looking to develop and expand what we offer to our customers. With 15,000 sqm of production halls on the site we have a strong manufacturing ethos and invest heavily in precision machining centres where we make our own hydraulic rams and gearboxes. In total, 85 per cent of what we sell is manufactured on site, ensuring we can maintain good quality control. We have also invested in a new website, delivered in 11 different languages. With around 90 per cent of our customers researching products on-line before they make a purchase this is increasingly important.

In addition the new site allows our dealers and product owners to interact with us more easily, so developing stronger relationships. It is important that people feel comfortable with the product that they are investing in,” concludes Tom.

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