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VOL 02 | 2014 | ` 200 www.efficientmanufacturing.in

E F F I C I E N T M A N U FA C T U R I N G

KOMPENDIUM 2014 The Manufacturing Yearbook Series that outlines global machine tool industry trends, advanced manufacturing processes & technologies, and contemporary management strategies

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Answers for industry.

EDITORIAL

Moving forward!

“India can push the growth rate into double-digit levels with deeper and faster reforms without giving up the essential gradualist approach, provided the politics should not overtake economic reforms”

anufacturing industry is undergoing its third revolution where a number of remarkable technologies are converging: intelligent software, novel materials, more dexterous robots, new processes (notably 3D printing) and a whole range of web-based services. We will be entering into an era where the factory would be so advanced that you almost don’t need to turn on the lights because the machines are doing everything, and what they are making is other machines. Also, the lines between manufacturing and services are blurring. With this, many of the jobs will not be on the factory floor but in the offices, which will be full of designers, engineers, IT specialists, logistics experts, marketing staff and other professionals. But at the same time, manufacturing jobs of the future will require more skills and knowledge. On the other hand, the downturn phase has given the Indian manufacturing industry an opportunity to focus on innovations in products and processes, improvement in productivity, enhancement in quality, upgradation in supply chain, development in training and workforce skills, diversification in other sectors, and reduction in costs. With this, the industry should gain the confidence required to improve on the growth prospects in the domestic as well as international markets. However, there is more to be done, for us to really get the ‘feel good’ factor back. India can push the growth rate into double-digit levels with deeper and faster reforms without giving up the essential gradualist approach, provided the politics should not overtake economic reforms. In this background, I would like to welcome you to the 2nd edition of EM Kompendium – a collector’s copy that will help manufacturing enterprises learn about relevant technologies and appropriate strategies to catch-up with global trends and restart the growth. On the pages of this edition, you will find all aspects of manufacturing in general and machine tools in particular covered such as industry review, global market analysis, technology trends, national & international developments, management mantras & strategies, innovations & advances, new products & technologies, and much more. That’s not all, we also have eminent management gurus, industry leaders and experts sharing their experiences and discussing the current challenges and recommendations. I am sure the features in this issue will make interesting reading, to make it a truly collector’s copy. Do write to us with your feedback! Best wishes for your business success!

Shekhar Jitkar Publisher & Chief Editor shekhar.jitkar@publish-industry.net

For subscription log on to: www.efficientmanufacturing.in

Overseas Partner: China, Taiwan, Hong Kong & South-East Asia

EM KOMPENDIUM | 2014

CONTENTS

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MARKET 06 News GLOBAL MACHINE TOOL INDUSTRY 29 Analysis on the performance of the global machine tool industry and the predictions for 2014-15 30 India 34 China 38 Europe 45 Italy 48 Spain 50 Japan 54 USA 58 UK 60

Korea

62 Taiwan

MANAGEMENT INDUSTRY INTERVIEW 64 “Technology is the key to effective DFE” Interview with Gautam Dutta, Director - Marketing, Siemens PLM Software, India 65 “Creating a competitive advantage” Interview with Bhagya Chandra Rao, Managing Director, Kennametal India 66 “Just enough” is the buzzword Interview with Vineet Seth, Managing Director India and Middle East, Delcam Plc 68 “Need for machine safety” Interview with P V Sivaram, Managing Director, B&R Automation 69 “Drive towards higher productivity” Interview with Punit Gupta, MD, Blasser Swisslube 70 “Need to stimulate growth” Interview with Gautam Ahuja, CEO, Dormer Tools India 71 “Indian market has high potentiality” Interview with Harikan Sandhu, Country Manager, FARO India 72 “Aligning delivery with desire” Interview with Ravi Raghavan, CEO, BFW 73 “Becoming technology creators” Interview with N K Dhand, CMD, Micromatic Grinding Technologies 74 “Positive outlook for business growth” Interview with Keshav Khurana, Sales Director & Country Head, Wohlhaupter India 75 “Creating cost-effective innovation” Interview with Sunil Hasabnis, Managing Director, Baumer India

MANANGEMENT INTERVIEW 16 “Invest in core competencies” Interview with Jeffrey Liker, Professor of Industrial and Operations Engineering, University of Michigan and President of Liker Lean Advisor 17 “Invest in design capability” Interview with Raghavendra Rao, Vice President & Global Manufacturing Leader, Frost & Sullivan 18 “Eliminate waste, but create new value” Interview with Michael Bremer, President, Cumberland Group, Chicago 20 “Utilise the opportunities available” Interview with Dr P N Rao, Professor - Department of Technology, University of Northern Iowa, USA 22 “Go Lean…” Interview with Sanjeev Baitmangalkar, Principal Consultant (Strategy & Lean Manufacturing), Stratmann Consulting 24 “System thinking & transformational skills required” Interview with Dr K (Subbu) Subramanian, President, STIMS Institute Inc, USA 26 “Quality will not be negotiable” Interview with Suresh Lulla, Founder & Managing Director, Qimpro Consultants Pvt Ltd 27 “Establish the right capabilities & culture” Interview with Dr Wilfried Aulbur, Managing Partner, Roland Berger Stratgey Consultants Pvt Ltd MANAGEMENT TRENDS 76 With a positive bent of mind A read on the changing landscape of manufacturing industry with the adoption of the right strategies by industry leaders

EM KOMPENDIUM I 2014

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TECHNOLOGY MARKET TRENDS 82 Educating on used machines The article introduces the used machinery market, benefits to the customers & buying recommendations

NEW PRODUCTS DIE & MOULD 100 Manufacturing software solutions The article discusses how to manufacture quality tooling for die & mould industry quickly & efficiently with the help of latest CAD/CAM software

COOLANTS & LUBRICANTS 84 Choosing the right lubricant An interesting read on choosing the right lubricant and a proper oil analysis program to maximise hydraulic system performance

INDUSTRIAL MAINTENANCE 103 Turning asset management into profit centre The article provides concrete suggestions and identifies specific areas within the maintenance process to reduce waste and increase reliability

CUTTING TOOLS 87 Meeting developmental challenges An article on the development of cutting tools in terms of new material compositions, geometries and mechanical properties METAL FORMING 90 A systematic tryout A read on systematic forming tool tryout based on reliable simulation results

SHEET METAL WORKING 106 Trends in new & advanced materials The read on trends in sheet metal as a form of raw material in different manufacturing applications HIGH SPEED MACHINING 108 Aiding high speed machining The article deals with the materials that do suit HSM which tend to reduce machining cost by eliminating a separate finishing step

AEROSPACE MACHINING 92 Composite machining An article highlighting the latest aircraft programmes dictating around 50% composite material by weight

AUTOMATION & ROBOTICS 110 Automation - a change enabler The article focuses on the evolving challenges in Indian industries and the need for sophisticated automation solutions

RAPID PROTOTYPING 95 Direct digital manufacturing The article informs about the trends in direct digital manufacturing that offers freedom of design

MATERIAL HANDLING 113 Exploiting the Indian market The feature on trends in the material handling industry highlighting the market developments, key drivers for growth, potential & challenges

MACHINING 98 Moulding challenges and opportunities into success The read on challenges in die & mould machining process and selection criteria for the right machining strategy

EM KOMPENDIUM I 2014

MANUFACTURING IT 116 Revisiting engineering processes An application story on the use of Siemens PLM Software, Tecnomatix, by Mahindra Vehicle Manufacturers Ltd

123 Collet chuck; CNC rotary table; Laser cutting machines; Chip breakers; 124 Heavy duty incremental encoder; High performance drilling; Vibrant and temperature monitoring device; 5-axis vertical machining centre 125 Magnetic rotary encoders; Automotive paint shop, Lightweight linear guide; Turning tools 126 Laser beam machine; Quick change block system; Ultra-precision switches; Solid carbide tools 127 Coated cemented carbide grade; High-power servo motors; Rotary axis calibrator; CVD & PVD coatings

COLUMNS 03 Editorial 04 Contents 128 Company Index

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MARKET

NEWS

Economy can grow at 6.5% in FY15 India can achieve 6.5% economic growth, provided systemic reforms are carried out quickly by the new government, said Ajay S Shriram, President, CII. “With slowing growth and high inflation adversely impacting employment, CII will urge the next government to focus on reviving growth and generating new jobs,” he said. It has also proposed a 100-day action agenda for the new Government. “A strong economic revival package and right implementation of policies by a fresh government can help create as many as 150 Ajay S Shriram, President, million jobs in the next 10 years.” CII stated that India can In the first 100 days of the next government, achieve 6.5% economic CII has called for introduction of Goods and growth, provided systemic Services Tax, containment of subsidies and reforms are carried fiscal consolidation, monetary easing, out quickly by the new maintenance of a competitive exchange rate, government fast-tracking stalled projects and increasing public capital investments, timely implementation of Delhi Mumbai Industrial Corridor and National Investment and Manufacturing Zones, among others.

PLUSS Polymers builds a manufacturing unit in Bawal Pluss Polymers has recently started a manufacturing unit at Bawal, Haryana. Covering an area of 10,000 sq ft, it is the first plant in the country to manufacture shape stabilised polymer composite phase change materials. “These materials are used to create products to keep food hot or cold. It has already found a large market in the US. We hope During day times, the stored energy is used India catches up soon. It is for air conditioning of the laboratory one of the first small scale and office spaces industries to install a thermal energy storage system of 40 tonnes to maintain the temperature of the unit between 24-28°C,” said Samit Jain, MD, Pluss Polymers. The system runs at night when power is available. During day times, the stored energy is used for air conditioning of the laboratory and office spaces. The plant otherwise uses efficient evaporative cooling based ambiators to maintain a comfort temperature of 280 C. It also serves as the R&D centre for the company.

> www.efficientmanufacturing.in

Sonalika invests `500 crores in Hoshiarpur plant

Unspectacular end for German machine tool industry last year

Sonalika International Tractors has recently enhanced the capacity of tractor units at its Hoshiarpur plant by investing ` 500 crores recently. In addition, ` 200 crores was also invested in its equipment division to expand its production. “We will double the capacity at Hoshiarpur (Punjab) from 75,000 to 1.5 lac units before December, 2014,” said A S Mittal, VC, Sonalika Group. He further stated that the tractors are also being exported to 65 countries around the world that The tractors are also being exported to 65 includes most developed countries around the world European countries, like Germany. “The direct employment after the expansion by next December shall be more than 5000 workers & engineers and about 10,000 through ancillaries and components suppliers of the state thus, adding employment opportunities in the state,” he added. The group has already employed more than 3000 direct workers and engineers and 5000 through its ancillary and component suppliers.

In the fourth quarter of 2013, order bookings in the German machine tool industry fell by 6% compared to the final quarter of 2012. Domestic orders were up by 3%, while German Machine Tool Industry Unspectacular end to the year in the German machine export orders were 11% below tool industry the previous year’s figure. For 2013, there was a deduction of 6%, with domestic orders down by 7 and export bookings by 6% respectively. “This was a rather unspectacular end to the year for German machine tool industry”, said Dr Wilfried Domestic orders were up by 3%, while export orders were 11% below the Schäfer, Executive Director previous year’s figure Sectoral Organisation, VDW (German Machine Tool Builders’ Association), Frankfurt. However, 2013’s final quarter saw a minor setback in regard to a stable uptrend in order bookings. “This category is taking a short breather and the big projects of the automotive industry have been completed for the time being”, added Schäfer. While order bookings for metal-cutting technology fell by 8% last year, this year, it is rising by around 10% for equally proportionating from Germany and abroad.

> www.efficientmanufacturing.in

[Index, nominal (seasonally adjusted and smoothed values)] 240

Orders original monthly values

200

Orders 2013/12: Total: -6%, Domestic: -7%, Foreign: -6%

Orders trend

160

120

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Note: Index basis shipments 2010=100, data until December 2013 Sources: VDW, VDMA

05.02.2014

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MARKET

NEWS

CD-adapco adds realism to simulation in STAR-CCM+ v9.02 CD-adapco recently released the STAR-CCM+® v9.02 at the Star Global Conference in New York and London. The company focuses on increasing users’ productivity and simulation turnaround time through the product. “Since engineering simulation is a result-based discipline, we enhanced our workflow capabilities and speed & scalability of our solvers. This leads to greater The main sections that it focuses on are throughput and ensures that product realism, increased throughput & models development process has a constant and and improved accuracy accurate stream of simulation data,” said Jean-Claude Ercolanelli, Senior VP - Product Management, CD-adapco. The main sections that it focuses on are realism, increased throughput & models and improved accuracy. The product also includes a new volume rendering capability that allows engineers to ‘see inside’ a flow-field for the first time. Other developments are the new tumble and swirl cost function implemented based on industrial users’ feedback. This cost function, targeted at the IC engine community, allows for sensitivities to be presented with respect to a key metric used in steady-state port flow analyses. > www.efficientmanufacturing.in

21st century development model opts for equitable India Kris Gopakrishnan, President, CII — Western Region, had recently attended the annual meeting of CII in Mumbai. He spoke extensively on the theme for the day -‘Voices from the future: Vision, lead, inspire’. “Over the last 20 years, the nation has seen its per capita income triple to USD 1,800 and around 350 million people move to the middle class. Issues like empowerment of youth and The emergence of a new women, community development and political party at the centre is nurturing innovation flavoured the discussion also an inspiration,” he said. He cited examples of recent startups like Flipkart and Whatsapp as inspirational. The eminent panelists included Deval Sanghavi, Partner & Co-Founder, Dasra Foundation; Navroze Godrej, Executive Director, Godrej & Boyce Mfg. Ltd; Smriti Irani, Member of Parliament Rajya Sabha, BJP; Dr Srividya Raghavan, Professor, College of Law, University of Oklahoma; Vikram Phadnis, Celebrity Fashion Designer and Viren Rasquinha, CEO, Olympic Gold Quest. Issues like empowerment of youth and women, community development and nurturing innovation flavoured the discussion. > www.efficientmanufacturing.in

KBL opens its authorised refurbishment centre in Bellary

India manufacturing PMI growth eases in March

Kirloskar Brothers Limited (KBL) recently opened its fifth authorised refurbishment centre (ARC) at Bellary, Karnataka. Spread across 2,000 sq ft, it offers service and repair facilities for small, medium and large pumps. It also offers overhauling of pumps, impeller balancing, hydro testing, corro-coating, performance enhancement, testing, shot blasting & painting. “By expanding our refurbishment centres across India, we aim to strengthen our relationship with customers. At Bellary, we cater to our bulk pump users by continuously implementing upgraded methods to increase efficiency of our It will serve as a one- pumping equipment,” said Sanjay Kirloskar, stop-shop for complete Chairman & MD, KBL, He had inaugurated the pumping solutions in first authorised refurbishment centre in Bellary Karnataka. The main objective behind this is to provide better conveniences of saving transportation cost, reduction in downtime and saving energy by upgrading the pumps. “It will serve as a one-stop-shop for complete pumping solutions in Bellary,” said Ravindra Murthy, VP & Business Head of Customer Service & Spares, KBL.

Manufacturing sector activity slowed in March after posting the strongest expansion in a year in the previous month, tempering optimism over a recovery in the economy. The HSBC’ Purchasing Manager Index or PMI dropped to 51.3 in March from 52.5 in February. “The momentum in the manufacturing sector eased Manufacturing-sector activity slowed on the back of a slowdown in in March after posting the strongest order flows and raw material expansion in a year in the previous shortages. Meanwhile, inflation month, tempering optimism over a has also moderated. However, recovery in the economy growth of new export orders picked up over the month. This resulted in taking PMI average for January-March 2014 to 51.7, which was the highest since the same period in 2013,” said Leif Eskesen, Chief Economist - India & ASEAN at HSBC. Talking about post elections period, he added, “Growth is likely to remain moderate in the coming months as fiscal tightening, relatively high corporate leverage, and rising nonperforming loans in the banking system pose headwinds to growth.”

> www.efficientmanufacturing.in

E M KO M P E N D I U M | 2 0 1 4

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MARKET

NEWS

3D printing market to grow in 2018 Canalys has announced its forecast for the fast-evolving 3D printing market, the size of which, including 3D printer sales, materials & associated services, reached US$ 2.5 bn globally in 2013. The company predicts that this will rise to US$ 3.8 bn in 2014, with the market continuing to experience rapid growth, reaching US$ 16.2 bn by 2018. “Advances in technology are yielding faster print times The 3D printing market size is expected and enabling objects to be to rise to US$ 3.8 bn in 2014 printed in greater combinations of materials, colours and finishes. Crucially, prices are also falling, making the technology an increasingly feasible option, restricted only by computer-aided design competencies and printer availability both of which are set to improve significantly. 3D printing has become an established technology for producing prototypes and concept models for all products. But as it matures, there is a clear and substantial potential across numerous sectors, such as engineering and architecture, aerospace and defense and medical, for 3D printing to have a dramatic impact within five years” said Tim Shepherd, Senior Analyst, Canalys. > www.efficientmanufacturing.in

Okuma App releases scheduled maintenance reminders Okuma America Corporation has released a new application that displays scheduled maintenance and inspection reminders. Depending on the particular maintenance, service recommendations can be displayed on a daily basis or intermittently throughout the life of CNC machine tool directly on the CNC control without interrupting programming. It enhances productivity to minimise unplanned service and downtime. The application automatically appears on the CNC control when maintenance is needed based on the requirements of the particular machine. It shows all of the maintenance tasks set for that specific machine by the software department. If tasks cannot be completed in a day, the user can The scheduled maintenance choose when to receive the next reminder or application automatically can dismiss the warning. The features of appears on the CNC control scheduled maintenance reminders include when maintenance is needed logged job records to assist with based on the needs of the troubleshooting issues and reminders that are particular machine pre-programmed and based on the specific machine and serial number. > www.efficientmanufacturing.in

Delcam receives best CAM Systems Provider Award Delcam was presented with best CAM Systems Provider Award at the Asian Manufacturing Awards organised by Contineo Media in Singapore. The citation for Delcam recognised that the company has long been known for its CAM products and expertise. The software has a vital role in converting data from CAD design models into precise instructions for machine tools. “As countries in the region evolve away Vineet Seth, Managing Director, from low-skill, low-cost production, Delcam India and Middle East & DPS it is the ability to implement Business Development Director - ASEAN, high-technology systems and to run accepts the Best CAM Award effective and intelligent operations that will increasingly be the determinants of manufacturing success through the rest of this decade”, claimed Contineo Media CEO, Raymond Wong, in his keynote address at the Awards ceremony. The Delcam CAM solution comprises PowerMILL , PartMaker – the true swiss type and multitasking CAM software and ArtCAM and CAD/CAM suite for jewellery, engraving and woodworking design and machining. > www.efficientmanufacturing.in

Eaton opens vehicle technical centre in Shanghai Eaton has announced the opening of its Vehicle Group Asia Pacific Technical Center in Shanghai. The new technical centre will drive the development and product localisation strategy of energy-efficient vehicle power management solutions for the Chinese and regional markets. “The opening of the new technical centre enables Eaton to better serve the high-growth Asia Pacific markets by bringing the innovative and energysaving solutions closer to our customers,” said Alexander M Cutler, Chairman and Alexander M Cutler, Chief Executive Officer, Eaton. With a Chairman and Chief Executive Officer, Eaton $3.3 million investment, the new technical centre occupies 1,200 square metres with seven major labs. This facility will further strengthen the local testing and development resources of Eaton’s Vehicle Group, and significantly upgrade its ability to work with the customers in the development of new engine platforms and efficient solutions in support of the largest passenger and commercial vehicle market in the world. Underscoring Eaton’s sustainability commitment, the company today officially issued its China Sustainability Report for 2013. > www.efficientmanufacturing.in

E M KO M P E N D I U M | 2 0 1 4

LEAD STORY MARKET

Image Source: Micromatic Grinding

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Engineering India’s growth curve The Indian engineering sector offers several opportunities for investment. Given the current gap between demand and supply, there is a clear need for adding capacities in this sector. The industry is moving towards increasingly sophisticated CNC machines, driven by demand from key user segments. Machine tool manufacturers need to develop capabilities to cater to this demand and investments in this area could yield long-term benefits.

Rajesh Nath Managing Director German Engineering Federation (VDMA), India Office vdmaindia@eth.net

ndia’s domestic consumer market has 1,270 million people including approximately 300 million as the middle-class and an annual population growth of 1.58%. The per capita income is estimated to increase to €937. India’s economy ranks as the 11th largest in the world and dominates the South Asian Subcontinent. The estimated GDP growth rate in 2013-14 is expected at 4.6%. India’s GDP in terms of Euro is around 1344.44 billion. India’s GDP is 4th largest in the world in terms of Purchasing Power Parity (PPP).

Automobile industry The cumulative production data for 2012-2013 shows production growth of 1.2% over same period last year. In 201213, the industry produced 20,626,227 vehicles of which share of two wheelers, passenger vehicles, three wheelers and commercial vehicles were 76%, 16%, 4% and 4% respectively. The growth rate for overall domestic sales for 2012-13 was 2.5% amounting to 17,815,618 vehicles. Passenger vehicles EM KOMPENDIUM | 2014

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Image Source: DMG/Mori Seiki

The industry is moving towards increasingly sophisticated CNC machines, driven by demand from key user segments

segment grew at 2.6% during April-March 2013 over the same period last year. The overall commercial vehicles segment registered decline of 2% during 2012-2013 as compared to the same period last year. Three wheelers sales recorded a growth of 4.9% in 2012-2013 over same period last year. Total two wheelers sales registered a growth of 2.7% during 2012-2013. During April-March 2013, the industry exported 2,898,659 automobiles registering a decline of 0.4%. The export growth has been negative due to negative global environment and fluctuation. While passenger vehicles registered growth at 9.3% in this period, commercial vehicles, three wheelers and two wheelers segments recorded decline of 13.7% and 0.7% respectively during April-March 2013. The industry produced a total 1,734,593 vehicles including passenger vehicles, commercial vehicles, three wheelers and two wheelers in December 2013 as against 1,698,107 in December 2012, registering a growth of 2.15% over the same month last year. The growth continues to be on account of growth in two wheelers production. The overall domestic sales during AprilDecember 2013 grew marginally by 2.30% over the same period last year. Again this is because of growth in two wheelers sales. Two wheelers registered growth of 5.40% during April-December 2013 over AprilDecember 2012. Within the two wheelers segment, scooters and motorcycles grew at 19.89% and 2.48% respectively, while mopeds declined by 10.64% in AprilDecember 2013 over April-December EM KOMPENDIUM | 2014

2012. Presently, car sales are undergoing difficult situation due to high interest rates, fuel price, high inflation, low movement in other sectors & drop by 3.9% from a year earlier. Passenger and commercial vehicles are expected to register a CAGR of 16% during the FY 2013-2020. While two and three wheelers are projected to expand at a CAGR of 9% during FY 2013-2020.

Robotics & automation India is one of the strongest growing economies among the Asian emerging markets. It is still considered a low-wage country and using automation in the production process is not often deemed economical. This may be the reason why robot installations are still at a low level. In 2012, robot sales decreased by 3% to 1,508 units. The weakening of the economy affected robot investments in 2012, which were originally expected to be considerably higher. Considering the new projects announced by the international and local motor vehicle suppliers to increase production capacities, robot investments will gain momentum in 2015 and is expected to touch 3,000 units by the end of 2016. Robot sales to other industries are still at a low level. In addition to low wages, infrastructure problems and bureaucracy are the main hurdles preventing an increase in automation in India. However, the potential for automation in this huge and growing consumer market

The industry segmentation CNC

Conventional

Forming

€50.13 million

€25.2 million

Cutting

€374.8 million

€67.87 million

is immense. Indian robotics industry worth approximately €547.5 million and is expected to double over the next 3-4 years. Between 2009 and 2012, usage of robotics in welding increased from 170 units in 2009 (the year of the economic crisis) to 840 units in 2012. Industrial robots for handling operations fell by 10% from 479 units to 430 units in 2012. In 2007 a peak level of 570 units was reached. Given the applications involved – such as welding, dispensing and material handling – it is likely that about 70% of robot sales ended up in the automotive industry. The rubber and plastics industry accounted for 10% of the total supply and the metal and machinery industry had a share of 5%. Globally, the electrical/electronics industry will increase robot investments in production automation as well as in retooling for new production processes. A further increase of robot orders from other industries is also expected, particularly from the pharmaceutical industry, the food & beverage industry, and the metal & machinery industry. At the end of 2016, worldwide an estimated number of almost 1.7 billion industrial robots will be in operation in the factories. Cost-efficiency requirements in the industry will drive higher levels of automation globally. Technical improvements of industrial robots will increase the use of robots in the general industry and in small and medium sized companies, e.g. easier to use robots for simple applications, collaboration of robots with human workers. Robots will improve the quality of work by taking over dangerous, tedious and dirty jobs that are not possible or safe for humans to perform. Safety regulations demand further improved solutions for human-machine collaborations. In the future, more intelligent robots with integrated vision

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LEAD STORY MARKET

The Indian engineering sector is of strategic importance to the economy owing to its intense integration with other industry segments

guidance and better sensor integration that are more adaptable to their environment will be able to collaborate with human workers. In order to automate still more production processes, e.g. assembly, and in order to integrate robots also in nonindustrial areas, the robot should become more capable of human processes and interactions.

Machine tools industry India stands 13th in production and 6th in the consumption of machine tools in the world. The country is set to become a key player in the global machine tools industry and is likely to see substantial high-end machine tool manufacturing. Industry experts say that the phenomenon will be linked to the expected spurt in manufacturing in the near future, for which the machine tools sector serves as the mother industry. Since, the manufacturing capacity is stagnating and the growth rate for the machine tools industry falling in developed economies, shifting machine tool capacity to low-cost high skill geographies like India, has become imperative. The Indian machine tool industry has around 1,000 units in the production of machine tools, accessories/attachments, subsystems and parts. Of these, around 20 in the large scale sector account for 70% of the turnover and the rest are in the SME sector of the industry. While the large

Robots will improve the quality of work by taking over dangerous, tedious and dirty jobs that are not possible or safe for humans to perform

organised players cater to India’s heavy and medium industries, the small-scale sector meets the demand of ancillary and other units. Machine tools production in India has decreased to € 518 million during 2012-13 from € 573.2 million compared to 201112 registering the annual decline of 10%. Production of metal cutting machines reached € 442.53 million during 201213 registering annual decline of 13% and production of metal forming machines has reached € 75.33 million during 2012-13 compared to € 67.07 million during 201112 registering a growth of 12 %. Machine tools exports from India have reached € 28.53 million during 2012-13 compared to € 24 million during 201112 registering a annual growth rate of 19%. Exports of metal cutting machine registered a decline of 28% while that of metal forming machine increased to € 13.6 million with a growth of 345%. Machine tools imports to India have reached € 1013.07 million during 2012-13 compared to € 1019.47 million during 2011-12 registering a decline of 1%. Metal working machine consumption in India has reached € 1502.4 million during 2012-13 compared to € 1568.53 million during 2011-12 registering a YoY decline of 4%. While metal cutting machine consumption registered a growth of 2%, metal forming machine consumption registered a decline of 22%.

The Indian machine tools sector offers several opportunities for investment. Given the current gap between demand and supply, there is a clear need for adding capacities in this sector. The industry is moving towards increasingly sophisticated CNC machines, driven by demand from key user segments, such as, automobiles and consumer durables. Machine tool manufacturers need to develop capabilities to cater to this demand and investments in this area could yield long term benefits. Demand and production in the machine tool industry is expected to register a CAGR of 25 % by the FY 2019-2020.

Conclusion The Indian engineering sector is of strategic importance to the economy owing to its intense integration with other industry segments. Major foreign players are also confident and have big expectations from the Indian engineering segment as it enjoys a comparative advantage in terms of manufacturing costs, market knowledge, technology and creativity. The total export of Indian engineering sector stood at € 41.39 billion during FY13 and is anticipated to grow to € 91.25 billion in the coming years. Exports from the engineering segment have registered a compound annual growth rate (CAGR) of 12.6 % over the period FY 08-13. Courtesy: AMS

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EM KOMPENDIUM | 2014

INTERVIEW INDUSTRY

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MANAGEMENT INTERVIEW In sync with global trendsâ&#x20AC;Ś Manufacturing is entering a fundamentally new era where technology is transforming the factory floor. For manufacturing companies, it means a swath of new tools to build smarter, leaner factories and explore innovative new products, materials and techniques, as well as new markets. This calls for keeping up with technological advancements as well as global developments. EM interacted with a few global manufacturing consultants and academic professionals to find out the global manufacturing trends, technology innovations, the change drivers and the right strategies for change management process & product developments. Shekhar Jitkar Publisher & Chief Editor shekhar.jitkar@publish-industry.net

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EM KOMPENDIUM I 2014

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MANAGEMENT INTERVIEW

“Invest in core competencies” …says Dr Jeffrey Liker, Professor of Industrial and Operations Engineering at the University of Michigan and president of Liker Lean Advisors—a network of top-notch practitioners who consult, coach and teach in The Toyota Way. He is a frequent keynote speaker and consultant and also author of the award winning international best-sellers - The Toyota Way series. ■ How

has the global manufacturing industry evolved, according to you, in the last ten years in terms of technology adoption, market expansions, global partnerships, strategic developments, and operational excellence?

The rapidly changing world has continued to change even more rapidly. We are dealing with more complexity and certainty than ever before— uncertainty in demand, complex global alliances, shifting of wage structures, rapid advances in product and process technology, extreme changes in business cycles, constantly changing government regulation, and more. Increasingly, what we have been saying for decades is true. Managing change in a complex and turbulent environment must be the core competency of global companies.

■ Which are the breakthrough

technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

Product, process, IT, environmentally-friendly technologies are evolving constantly, so listing them is

fruitless. Something new must have happened before you finish a sentence. Personally, I do not think there is much new under the sun in terms of management concepts, but I do think there are changes in what corporate executives are thinking. For decades we have

missing ingredient needed to truly sustain the journey to continuous improvement and needs to become the way people lead from the executive suites to the individual work group.

they do the work and this is the kind of investment that a few companies have been willing or able to make effectively. But as Jim Collins finds, the great companies figure out how to do this.

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■ How are the transforming/

constant pervasive

“There is less of an issue of designing and planning change management and product development than developing excellence in execution” Dr Jeffrey Liker

been saying the things like develop a clear strategy, invest in core competencies, put the customer first, continuously improve, and all of this is dependent on smart, capable, thinking people throughout the company bound together in a common culture striving for excellence. Despite all the wellmeaning mission statements most global company treat people as valuable as if they were disposable diapers. But there are some real signs of change in some companies that are taking investing in people and culture seriously. Also, Lean leadership is the

changes in technology & market requirements, how can organisations design/plan the change management process and product development strategies? There is less of an issue of designing and planning change management and product development than developing excellence in execution. The best laid plans turn into nothing without the investment in people and processes to execute. This always involves getting working level people who perform the work to analyse and improve and adapt how

emerging economies and changing trade relations likely to influence the manufacturing sector growth globally? There is some movement to bring manufacturing back home, wherever home is. Building locally, reduces supply chain costs and improves customer responsiveness. Toyota, for example, believes in building vehicles where they sell them and has steadily made progress in that direction, though they feel some moral obligations in Japan that have slowed this down. I believe that the threat of low wages in emerging economies has provided bargaining power in high wage countries. I also have found through personal experience that emerging economies are humble and open to learning and often are more effective at new approaches like continuous improvement than their more “successful” and arrogant counterparts in developed countries.

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EM KOMPENDIUM | 2014

INTERVIEW MANAGEMENT

“Invest in design capability” …says Raghavendra Rao, Vice President & Global Manufacturing Leader, Frost & Sullivan. An operations generalist, Rao has consulted companies in India, Middle-East and clients in Europe/USA on operational optimisation through lean implementation, involving value stream mapping, debottlenecking, line balancing, flow and pull, low cost automation, process re-engineering, etc. ■ How

In the last 10 years, manufacturing has steadily moved from advanced costlier economies to cheaper regions. The challenge has been to do so, with least distortion of product quality and features. However, when it came to outsourcing manufacturing into large markets such as India, a certain degree of localisation and customisation had to be done, to meet the needs of the local market. While India, China and the other emerging markets developed as manufacturing nations, they still depended (and it won’t be wrong to say that they still do) on the advanced economies for technology as well as for high capability capital equipment (technology providers as well as sector specialist manufacturing companies). Thus, global partnerships and operational excellence suited both sides; one got the EM KOMPENDIUM | 2014

technology, while the other got to become a source of cheaper manufacturing (and hence enhanced competitiveness).

■ Which are the breakthrough

technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

At a management level, what have possibly caught the fancy

evolving into its future? The top five change drivers for the global manufacturing industry evolving into its future would be: 1. Cost economies 2. IT integrated manufacturing 3. Lean supply chains 4. Mature, ethical and stable partners 5. Green manufacturing

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constant pervasive

“ P ro d u c t d e ve l o p m e n t strategies will continue to be aimed at being one ahead of the competition, in terms of features and value for money” Raghavendra Rao

are two obvious concepts: one machine numeric data capturing and real time analysis; second newer disruptive technology of 3D printing. This one single technology can rewrite all rules of manufacturing in the not so near future.

■ Please

suggest top five change drivers for the global manufacturing industry

changes in technology & market requirements, how can organisations design/plan the change management process and product development strategies? Would you like to give any examples? Product development strategies will continue to be aimed at being one ahead of the competition, in terms of features and value for money.

Rapid prototyping will continue to get high focus and product delivery times will continue to reduce.

■ How are the transforming/

emerging economies (developing countries like India, Brazil) and changing trade relations likely to influence the manufacturing sector growth globally?

At a first level, emerging economies should decide if they choose to continue to be known as a manufacturing “hub”; or if they really have the capability, patience and will to develop into a more full-fledged manufacturer, by investing in design capability (and thus have patents and technology ownership in the long run, which in turn will add intrinsic value into the respective economies). How they influence the sector globally depends on the choice that the emerging economies supported by an equally receptive and cooperative “advanced” economy partner, who is willing to mentor this transition into a more “design complete” manufacturer.

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MANAGEMENT INTERVIEW

“Eliminate waste, but create new value”

…says Michael Bremer, President, Cumberland Group – Chicago; VP of Manufacturing Excellence Awards process for the Association for Manufacturing Excellence (AME); and CoManaging Director of the Chicagoland Lean Enterprise Consortium Group. Author of a few books on Six Sigma, he has been a speaker for the American Quality & Productivity Center and the Association for Manufacturing Excellence.

■ How

The rest of the world is catching up to the US, Canada and Europe in terms of operational excellence. Some differences still exist, but the gap is much smaller. The internet continues to bring suppliers, manufacturers and customers

closer together. Manufacturing improvement actions for the last 20/30 years have focused inside the plant. There is going to be much more collaboration across the supply chain moving forward as organisations seek to gain a competitive advantage. The US companies are becoming more export oriented, and as they become more efficient it will put more pressure on companies in emerging economies to improve more effectively and holistically. There will be a resurgence of manufacturing capability in

the US as people have come to realise there is not much leverage for an economy in just focusing on financial services. If the US economy is growing that is good news for manufacturers around the globe.

■ Which are the breakthrough

technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

According to me, certainly, 3D printing is going to have more and more of an impact.

Innovation with nanotechnology will also have a major impact on creating new materials. Manufacturers using nano-materials will need to take a holistic perspective including environmental impacts in order to avoid costly negative consequences resulting from irresponsible behaviours and short-term thinking.

■ Please

suggest top five change drivers for the global manufacturing industry evolving into its future.

Low cost labour will be less and EM KOMPENDIUM | 2014

| 19 | less of a factor moving forward. Companies applying a holistic total cost model will give more consideration to other major cost items such as: labour skills and flexibility; quality, reliability and durability (which will become more important from an environmental perspective); country risk; where to place (keep) production or software development core competencies in order to facilitate future innovation; and distribution reliability as well as costs. The top 5 change drivers would be: People, people, people! Ability to find and develop talent. People will be attracted to organisations that treat them with respect and develop their skills and capabilities. Elite organisations create an environment where associates are encouraged to give that little bit of extra effort = passion and engagement Rapid prototyping (faster lead times) Ability to more deeply understand customer requirements and total cost of the supply chain Safety of intellectual property and cyber security - ability to more easily identify fake products Use of sensors to track manufactured product, provide feedback for early maintenance, and develop closer relationships with customers More collaborative practices across the supply chain where companies partner together to pursue joint growth opportunities.

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organisations design/plan the change management process and product development strategies? 50% plus of cost need to be locked in at the design stage, so, products and services will be developed with a much better understanding of total costs. There has been little concern in many emerging markets about employee safety and skills development, which needs to be improved, which in turn will improve employee loyalty.

■ How are the transforming/ emerging economies and changing trade relations likely to influence the manufacturing sector growth globally?

Manufacturing growth spurs

“If you are going to execute significant change, you need to find ways to see your world differently and to get in touch with ‘reality’ as it truly exist”

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constant pervasive changes in technology & market requirements, how can EM KOMPENDIUM | 2014

content. If on the other hand, the governmental regulations foster unwise investments you get bubbles like Japan in the 1990s and perhaps China in the 2020s. Governments in emerging economies for the last 20 years have benefited from outsourcing activities in the US, Canada and Europe. This model will be changing and it will be interesting to see if governments in emerging economies can adapt to this. Policy makers need to recognise whether their decisions impact global market opportunities. Governments need to build up their competitive advantage just like companies. This doesn’t mean a local government just giving away money to have a

Michael Bremer economic growth. Every dollar spent in manufacturing generates $1.48 in the economic growth. This would be a huge multiplier that provides a pathway to higher living standards, so long as it is done in a way that avoids long-term damage to the environment. There is a fine line between manufacturing growth spurred by the government -vs- growth driven by the private sector. A balance is needed between the two perspectives. For example, much of China’s manufacturing growth has been driven by the government spending and regulations. If the government chooses wisely the economy looks like a winner and people for the most part are

plant located in their district. It is necessary to analyse infrastructure, certainty of regulatory environment, developing a skilled workforce, access to nearby suppliers/ materials and energy costs which are the factors that will influence where manufacturing facilities are located.

■ What in your opinion can be

defined as the key to success in modern manufacturing companies? Would you like to recommend any best practices?

I have referenced the development of people several times. In terms of improvement effectiveness elite organisations seem to do five things much

more effectively than the rest: Explain Why – It is critical to help people understand the purpose before proceeding any significant distance down the improvement pathway. Once again this applies from the top to the bottom of the organisation. The organisation needs clear strategic direction and a meaningful business model. At a department level the purpose needs to shift away from the activities the department does and instead focus on the (usually internal) customers the department serves. Gain a new perspective – If you are going to execute significant change, you need to find ways to see your world differently and to get in touch with ‘reality’ as it truly exist. Interestingly, this is true at the senior leadership level and it cascades all the way down to an operator or associate level. Invest in people – Once progress has been made on the first two steps then it’s time to invest in people. Organisational, department or functional leaders create an environment where people can become smarter and bolder; where they can do their best work. Focus on value – While it is good to eliminate waste, it is better to create new value. Your customers do not care about your waste, they only care about the value you provide. It is far easier to collaborate when seeking alignment with the customer. Do the right thing – Trust, accountability & engagement. Have a broader perspective than “me” or “my department”; think about the organisation as a whole, and ultimately from an overall supply chain perspective. Make it easy to see if the right thing is being done at the right time.

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MANAGEMENT INTERVIEW

“Utilise the opportunities available”

…says Dr P N Rao, Professor in the Department of Technology, University of Northern Iowa, USA. He has also worked in IIT New Delhi and BITS, Pilani, earlier. The author & co-author of over 190 conference papers and a few books, Prof Rao has wide interactions with the industry through the process of consultancy work and conducting continuing education programmes on various aspects related to modern manufacturing.

■ How

has the global manufacturing industry evolved, according to you, in the last decade in terms of market expansions, strategic developments, and the economic growth?

The last decade has seen the manufacturing industry grow albeit in different global regions because of many different reasons. Real manufacturing output in USA fell by 11% between 2000 and 2010 while the GDP grew by 16%. The manufacturing job losses are attributed to global

competitive challenges and productivity gains. With the increased computer power and lowering costs, the software productivity made major boost in many manufacturing operations. It is also noted that nations such as India and China have been greatly increasing their market share through coordinated national efforts to expand innovation, productivity and exports. The recession experienced in the developed countries did not affect to a great extent the developing countries mainly

because of the domestic market growth. As per the McKinsey report, the emerging markets in the last two decades have expanded thanks to the integration of developing nations into the global economy, the removal of trade barriers, and the spread of market-oriented economic policies. The major force for developing economies seen so far is the manufacturing sector. The demand for manufacturing continued to increase and will be the driver for the growth and development. Another

interesting phenomenon noticed is the major shift in demand moving from developed to developing economies such as India and China. As the customers become wealthier, they demand more services. With this, the service sector is becoming more important than the manufacturing sector.

■ Which are the breakthrough technologies and management concepts that are shaping manufacturing operations and thereby EM KOMPENDIUM | 2014

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businesses in the present times? Leading academics and industrialists from around the world identified four major drivers for change in manufacturing: Globalisation of manufacturing including decisions on which manufacturing plants should go offshore and which should remain onshore. Extended enterprises and the way manufacturing organisations are increasingly becoming collaborators in a value chain. Digital business and its enormous effect on change and potential for even more change. Innovation with its ability to not only increase productivity but also enable innovative new processes for new types of products.

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Developments in robotics: There are lots of developments happening in robotics, in particular with multiple sensors, and integrated control architecture. With this, robots are becoming more userfriendly and less expensive so that they can be easily deployed in a number of applications. Digital manufacturing: The success of a manufacturing operation depends on its ability to bring to market products that are less expensive, faster and better maintainable. The use of digital processes on all aspects of manufacture is a great way to ensure this. The digital thread that integrates design,

With the developments in computers, networks, sensors and software it is possible to build manufacturing systems that are more intelligent and will be able to optimise the process continuously. It requires integrated systems be built that will have sensors to monitor the manufacturing process continuously and then adapt the process to achieve the best possible performance by a combination of software and hardware tools. Sustainable manufacturing: Manufacturing systems though create material wealth for humans, they consume a great amount of resources while generating a lot of waste. The

“Key to success in the changing scenario is to keep abreast of the technological developments, and adapt the manufacturing to the market needs as fast as possible” Dr P N Rao

■ Please

suggest top five change drivers for the global manufacturing industry evolving into its future.

Additive manufacturing (3D printing): Undoubtedly, additive manufacturing is the major technology that will be influencing the manufacturing industry for a considerable amount of time. So far, a majority of applications are for rapid prototyping and rapid tooling applications. The limitations thus far are the choice of build materials, majority of them are being plastics and a small range of metals, and the cost. Medical implants are a major application area for the use of this technology. GE is planning to use it to manufacture nozzles for its jet engines. EM KOMPENDIUM | 2014

planning, manufacturing and product support through all stages will greatly improve the possibility to achieve first pass success. For this to work efficiently the need is for networked, and data driven processes in manufacturing. This will combine innovative automation, various sensors and control systems, communications across all segments, including the global supply chain. This would mean advanced manufacturing enterprises, intelligent machines, advanced analysis techniques, and cyber security systems in view of the information exchange across the internet with globalisation. Intelligent manufacturing:

waste generated during the manufacturing processes, during the use of the products and after the end of the life of the products is responsible for the degradation of the environment. Therefore, it is imperative that manufacturing industries need to strive for “sustainable manufacturing” on their part. It should deal with product design for sustainability, sustainable manufacturing processes, and sustainable manufacturing systems, while also trying to maximise resource efficiency.

■ With

constant pervasive changes in technology & market requirements, how can organisations design/plan the

change management process and product development strategies? We see innovations are taking place in all areas that are relevant for manufacturing. Advances can be seen in materials, processes, equipment, and information processing, all of which would cumulatively affect the way that we design the products. An organisation if it has to remain competitive it needs to adopt strategies that will help it utilise these opportunities. A few strategies are: concurrent engineering, make –vs- buy, off-shore -vsnear-shore, capital investment planning, facility and asset location, capacity planning, risk analysis, and product life cycle management. Moreover, the way the manufacturing demand is growing calls for a change in the manufacturing procedures such as faster product cycles, higher customisation options and better customer service.

■ What in your opinion can

be defined as the key to (process-) success in modern manufacturing companies? Would you like to recommend any best practices?

Key to success in the changing scenario is to keep abreast of the technological developments, and adapt the manufacturing to the market needs as fast as possible. A few of the best practices that go a long way are: concurrent engineering; Lean manufacturing; energy efficiency; systems engineering - expert systems, failure analysis, risk management, engineering support; ERP; TQM; manufacturing productivity solutions; and educated workforce.

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MANAGEMENT INTERVIEW

“Go Lean…!”

■ Which are the breakthrough

technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

Although lean manufacturing is not a concept of the last decade, yet there is no better known philosophy, thinking, or end-to-end solution delivering ever improving quality, reliability, cost reduction, customer satisfaction and in

the process also handsome returns. Attempted variations do not match the results. Lean manufacturing as a manufacturing concept is the best form of business excellence, systems and quality certification yet. The way information shapes will develop allied product manufacturing industries. Disruptive technologies have been visible in many industries. Communication and internet have seen many breakthroughs;

…says Sanjeev Baitmangalkar, Principal Consultant (Strategy & Lean Manufacturing), Stratmann Consulting. He is an empanelled lean consultant on the Prime Minister’s Global Manufacturing Competitiveness Program, an accredited lean consultant with the Quality Council of India and the Ministry of Small & Medium Enterprises under the Industry Ministry, Government of India. He has also worked as MD of Roots Multiclean Ltd; Director & CEO of the Texmaco Group in South-East Asia, and as VP & SBU Head with the Kirloskar Group.

Google has become a way of life; information is greatly democratised; social networks have changed the way people connect, communicate and share. In fact, the request for my earlier article in EM, ‘Lean: intrigue or intriguing?’ came on my Facebook wall. The global outsourcing has made the world a more equal space. The advent of iPhone has disrupted the PC industry. Composites will change the way aerospace looks at materials

and find applications elsewhere like the auto industry. The highspeed data transfer capability developed will catapult the data storage and management device industry, and handheld devices for mobility convenience. And we have not talked about cloud computing!

■ Please

suggest top five change drivers for the global manufacturing industry evolving into its future.

The challenges, the need, EM KOMPENDIUM | 2014

| 23 | and the threat of disruption drive innovation and ideas for change. With the growth markets in the auto industry shifting to emerging markets, the demand for small, comfortable, low cost, fuel efficient cars will drive product development. Power source alternate to abiotic fuels will propel industries such as solar and electric. Defence industry will see enhanced digital capability in the tools of warfare. The machine tool industry may have nothing more than a modification or a variable to what exists. Looking at the internet of things, many businesses of the future will use analytics to mass customise and differentiate themselves. The growing number of embedded sensors collecting information about the world, and the rise of social networks that store the data people share, will generate immense quantities of information. Business intelligence, which enables organisations to gather quantifiable data on each area of the organisation and analyse it in a way that yields information they can act on — helping them enhance decision making, improve performance, mitigate risk and sometimes even create new business models — is growing in importance.

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constant pervasive changes in technology & market requirements, how can organisations design/plan the change management process and product development strategies?

Product development results from customer requirements, innovative ideas, disruptive technologies and disruptive ideas or inventions. The strategies behind it will be creation of blue oceans, share EM KOMPENDIUM | 2014

acquisition by innovation or disruption, or simply lateral growth by becoming a player in a category absent earlier. Competition can quickly catch up where differentiation is for competitive advantage. The rate of change demanded today is much faster than in the years before. The customer’s expectation of frequent new products, with better technology, faster and better performance, better consistent quality, more fuel efficiency and cheaper price will also govern the product life cycle. That is why we will see more platform offerings from sectors such as automotive, hand-held communication devices, retail, etc. The machine tool sector

using digital sources in making their purchase decisions. In the shifting industry landscape suppliers will have to add more value and companies that focus more on organising better upstream activities will be more competitive and remain advantaged.

■ How are the transforming/

emerging economies and changing trade relations likely to influence the manufacturing sector growth globally?

While there has been noise over the economy, slow growth, interest rates, inflation, etc, Toyota reported its highest ever profits and Maruti increased their market

“It is never too late to embrace the complete practice of lean manufacturing and discover ways to minimise or overcome the impact of economic changes” Sanjeev Baitmangalkar may lag behind and we may see more of the same products with peripheral changes. Owing to the complexity and cost pressure, there will be more platform sharing and more modular systems. Regulatory pressures are likely to tighten, and prices in established markets may remain flat. In the diverging markets, OEMs need to adapt to changing regional and segment patterns of supply and demand with respect to their production and supply base footprints, supply chains, and product portfolios. Digital demands will remain high, consumers want more connectivity and are focused on speed, active safety and ease of use, and are increasingly

share while reducing 40% of manufacturing costs since the crash! Something that both Mysore Kirloskar and Bridgeport SEA had demonstrated that significant growth in topline, bottomline, share markets, customers and satisfaction can be made to happen irrespective of the economic environment, atleast to a great extent; and that it depends more on the leaderships vision, strategies, creative thing, people involvement and execution. Trade barriers could encumber costs; otherwise trade relations have to evolve more between buyer and seller. Emerging markets especially India has had a high growth rate YoY for more part of last decade. Some

industries have grown at higher than 20-25% post the crash.

■ What in your opinion can

be defined as the key to (process-) success in modern manufacturing companies?

If there was a superlative to the ‘best’ practice today in manufacturing or using a philosophy to run an enterprise, it is ‘Lean Manufacturing’. These recent years after the crash were great opportunity for non-lean companies to have used the time and become leaner. Personally, I measure the effectiveness in terms of the benefits transferred to customers. Both Toyota and MKL became leaner during their difficult times. Difficult times, market slowdown, low economic growth, etc are actually an opportunity to innovate and grow. MKL innovated product offerings, created blue oceans, addressed customers at the bottom of the pyramid, became many times more productive with reduced wastages to save over 60% of costs and passed on a 30% downward price change permanently to its customers and created a benchmark that may never be surpassed! What can be more relevant to success than a philosophy that addresses everyone, beginning with the customer and going up the value stream to the last vendor all inclusive in a seamless value chain? Waiting for the government to change and policies to be made more favourable is like the old farmer praying to the rain Gods. Instead, good leadership should take charge and make it to rain. It is never too late to embrace the complete practice of lean manufacturing and discover ways to minimise or overcome the impact of economic changes.

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MANAGEMENT INTERVIEW

“System thinking & transformational skills required” …says Dr K (Subbu) Subramanian, President, STIMS Institute Inc, USA. Dr Subbu is active in consulting with manufacturing companies for their innovation for new solutions and for their high level skilled workforce development. He has served as the Director, Core Technology – Surface Preparation Technologies (SPT), at the High Performance Materials (HPM) Sector, Saint-Gobain Co. He also collaborates in research and education programs at IIT – Madras and IMTMA)

■ How

has the global manufacturing industry evolved, according to you, in the last ten years in terms of technology adoption, market expansions, global par tnerships, strategic developments, and operational excellence??

Let me focus on only two of the branches: global partnerships and operational excellence. Today, alliances across the globe are almost

taken for granted. These partnerships may be formal to share technology and knowhow or they may be informal and implicit through global supply chain arrangements. Those who have deliberate and well-orchestrated global partnerships are already breaking away from the rest and carving out their own competitive space. The other form of partnership across the globe pertains to design and

manufacturing. Many Indian manufacturers are entering this phase. They no longer “toll manufacture” components for their export clients. Instead, they collaborate early on from the concept and design phase and follow it up with manufacturing. As a result many of the engineering service centres in India are becoming “solution centres”. Operational excellence is no longer a strategic advantage.

Instead, it is merely the “ticket to the ball game” or the minimum requirement to remain viable and competitive in any manufacturing activity. Strategy by definition addresses the questions of “What?” and “Why?” Then “Operations” focus on delivering this strategy by relentlessly focusing on “How?” and “When?” pertaining to every aspect of the enterprise. The developments in IT and their plug-and-play applications EM KOMPENDIUM | 2014

| 25 | are readily available to all. But companies that use these IT tools wisely and economically and exploit the value of information are breaking away from a large majority of other companies who use IT merely as a black-box.

■ Which are the breakthrough

innovations and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

Innovation through small startups propelled the growth of many new IT companies in the Silicon Valley. Today, innovation centres and technology incubator facilities are being promoted worldwide to expand the same concept to manufacturing technology. Large companies no longer rely only on their internal R&D as the source for innovation. Instead, they are eager to seed fund and acquire start-ups more readily. As a result, one can expect many new enterprises to flourish based on physical technologies such as biotechnology, genetics, materials science, mechatronics, novel manufacturing processes, etc. With respect to management concepts: anyone can readily recognise that almost everything one needs to know is already available on the internet! This leads to the obvious conclusion, i.e. the real value addition is not through knowledge or information. Instead, it comes only through the use of the knowledge and information to identify new opportunities, develop and deploy them as new solutions and exploit them to gain value/ benefit as a result. This needs to be solution oriented from concept to commercialisation and transformational skills required for that will be the driving force at any level – from enterprise management to the professional development of individual workers. Any worker EM KOMPENDIUM | 2014

with knowledge that he/she does not actively put to use can be replaced by a smart phone! This need for greater effectiveness requires System Thinking and Transformational Skills to constantly foster new solutions.

■ Please

suggest top five change drivers for the global manufacturing industry evolving into its future.

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Sensors and Smart devices everywhere. Data, analysis and process intelligence aided by Big Data and analytics Programmable automation (the generic name for CNC, robots, flying robots, AGV and drones)

dispel this myth. Yes, there is a rapid and unprecedented rate of change in IT. As a result, how we consume (collect, process, disseminate) information is also changing dramatically. This can be seen as changes in the “market requirements”. But, technology and market requirements are much larger than the above. The way we produce the raw materials (steel, plastics, etc) or how we consume these materials (through castings, forgings, rods, tubes, etc) have not changed for decades. Even the end products like cars, planes, machine tools, textiles, etc have not changed much in their basics in the past few decades. The types of energy,

“Emphasis on product development & national policies for them and their investment strategies need to be re-focused to increase the quality of life at all levels” Dr K (Subbu) Subramanian

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No more learning curve (price -vs- volume is a flat line and not a curve)? If low labour cost only means low skilled labour for physical labour tasks or well defined information tasks, then such low cost labour is no longer a competitive advantage.

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constant pervasive changes in technology & market requirements, how can organisations design/plan the change management process and product development strategies?

“There is a pervasive change in technology and market requirements” – this is a popular myth. First, we need to

their sources and the way we consume have not changed in decades. In other words, manufacturing as we know of it today is to replicate in larger quantities what is already known and perfected elsewhere. This is why every emerging economy including India is increasingly reliant on automotive sector as the core of its manufacturing activity. Emphasis on product development & national policies for them and their investment strategies need to be re-focused to increase the quality of life at all levels. What we lack is a clear and conscious choice to bridge the gap between product development and market requirements.

■ What in your opinion can be defined as the key to success in modern manufacturing companies?

First and foremost, every manufacturer needs to realise that his company has only three core capabilities: Product (source of revenue), Processes (that enable the product) and Application/Use of the product. Within the processes there are two categories: physical processes (which are at the heart of manufacturing) and information processes (which enable the efficiency and effective use of physical processes). Clear and comprehensive understanding of these core capabilities is the first requirement. This understanding – common language – has to be the same for everyone inside the company, with the suppliers as well as with customers. The science, engineering and strategic needs of these core capabilities must be clear and transparent to all. As an example, I am surprised to find that the machine tool price is negotiated at the time of purchasing in proportion to its weight rather than what the machine tool is capable of doing. Imported machines are often seen as better than domestic machine tools, even at substantial higher prices, simply because of the ignorance on application/use process knowledge. Critical components for machine tools continue to be imported at high cost and from few sources, simply because of the well-established supply chain. This is a deterrent to physical technology based alliances between manufacturers and possible development of alternative suppliers available locally as well as globally.

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“Establish the right capabilities & culture” …says Dr Wilfried Aulbur, Managing Partner for Roland Berger Strategy Consultants Pvt Ltd. He was MD & CEO of Mercedes-Benz India and has held many strategic and operational positions within the global Mercedes Car Group organisation as well as at the Mercedes-Benz R&D Centre India. He has worked in Airbus and the Daimler Headquarters in Germany as well as at the Chrysler Corporation in the US. Excerpts from his interview with Shekhar Jitkar…

■ How

has the global manufacturing industry evolved, according to you, in the last decade in terms of technology adoption, market expansions, global partnerships, strategic developments, and operational excellence?

There are a number of very important trends that have affected the manufacturing

industry during the last decade. One of the most important trends, are the market potentials and competitive threats that emerging markets pose for established triad players. This trend will likely continue to be a dominant theme over the next decade as well. We will see a continued structural shift of machinery demand and production

from developed countries to emerging countries, mainly into China. Increase in demand for high-quality consumer goods in China and development of industrial production structures are driving a strong upgrade process for newly installed machinery towards “mid-end” quality and performance. This opens up new export opportunities worldwide for

Chinese OEMs, with focus on easily accessible markets in South-East Asia, Middle-East and Africa in the first step. A key challenge for Chinese OEMs is to master the technological upgrade process for their products (in terms of knowhow generation and financing). Best-in-class Indian players will be facing Chinese competition head-on. As far as an industrial EM KOMPENDIUM | 2014

| 27 | eco-system is concerned, however, India will lag the Chinese development. Western OEMs will continue dominating their home markets (at least until 2020). Here emerging market players will establish footholds, often via takeover of established Western brands. Value-for-money is the key theme that enables Indian and Chinese players entry into triad customers. The challenge that established Western players face today vis-à-vis Chinese and Indian competition is fundamentally different from the challenge that was posed by Japanese and Korean manufacturers in the 20th century. Both India and China have an unprecedented scale and can therefore become real game-changers. China has shown a very impressive development over the last 30 years, producing more than its population share in key areas such as leather, textiles, steel, etc. Energy efficiency and other “green” concepts are getting more important in developed countries driven by a combination of regulation and total cost of ownership. For many applications, however, green remains a marketing issue in the near future.

■ Which are the breakthrough

technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

A very exciting concept is Additive Manufacturing (AM). The market for systems, services and materials for AM equaled EUR 1.7 bn in 2012 and is expected to quadruple over the next 10 years. The ability to manufacture metal objects without virtually no limitations on geometry and without tools EM KOMPENDIUM | 2014

offers the opportunity to create new products that help boost product performance (e.g. tool inserts with cooling channels or highly efficient injection nozzles) or to manufacture batch sizes of just one item (e.g. medical applications, design objects) using special highly resistant alloys. With about 1% of the machine tools market, the share of AM is relatively small. The supplier base for AM machines is dominated by German suppliers. In addition, an infrastructure of engineering and AM service providers has developed close to technological leaders in aerospace, turbine development and motorsports production. In certain areas,

■ Please

suggest top five change drivers for the global manufacturing industry evolving into its future.

I would limit it to three main drivers: Shift to Asia: China is the #1 machine building country worldwide and performance and quality requirements in Asia are getting closer to European levels. Game change in the midend: The mid-end performance segment is growing the fastest and this is the new global battlefield for emerging and developed market players. Go Green: Energy efficiency is increasingly important in key markets such as Europe and Japan. Substantial energy

“Tools such as scenario management can help you chart the future and develop options to react to business as usual as well as to sudden up- and down-turns” Dr Wilfried Aulbur the technology has already achieved manufacturing readiness (e.g. dental or design objects) whereas in the aerospace and turbine industry, process development and complex field testing are ongoing. The potential of AM in these industries is extremely high. The costs of this technology are significantly higher than for conventional production, so it can be only justified by special benefits in the lifecycle or tooling costs. However, a cost reduction potential of about 50% in the next 5 years and another 30% within the next 10 years is possible. These reductions will significantly boost the market for metal AM.

savings can be achieved for selected applications, while for others it is mostly a marketing issue.

■ With

constant pervasive changes in technology & market requirements, how can organisations design/plan the change management process and product development strategies? Would you like to give any examples?

Nimble, agile and responsive are the key attributes that come to mind when we try to characterise organisations that have a good chance at succeeding in a highly complex world. A good example of companies that are able to sustainably succeed are the so-

called “Hidden Champions”, i.e. small to mid-scale companies up to EUR 3 bn in revenue that have been able to achieve market leading positions in their areas of focus. While German speaking countries seem to be conducive for these types of companies they can be found across the globe and follow similar management principles. Some characteristics of their approach are: Product focus – rather than doing a little of everything, these companies ensure that they are world leaders in something, i.e. develop a sustainable and profitable value proposition for clients. Wide geographic spread – focus on smaller markets is compensated by a strong desire to leverage global opportunities. Customer focus – customer intimacy is significantly higher than at large co-operations. R&D investment – clear R&D roadmaps developed with significant customer input allow these companies to stay ahead of the curve. Employee commitment – typically these companies may not pay as much as large companies but their retention rates are a fraction of that of larger players due to higher employee commitment. Large ambition – these companies play to win, mere participation is not an option. So, in some sense, survival in volatile and uncertain environments has a lot to do with establishing the right capabilities and culture in your organisation. In addition, tools such as scenario management can help you chart the future and develop options to react to business as usual as well as to sudden up- and down-turns.

■

||28 28 ||

MANAGEMENT INTERVIEW

“Quality will not be negotiable” …says Suresh Lulla, Founder & Managing Director, Qimpro Consultants Pvt Ltd. He is a Senior Member of the American Society for Quality, a Certified Management Consultant from the Institute of Management Consultants of India, and Chairman of IMC Quality Awards Committee ■ How

has the global manufacturing industry evolved, according to you, in the last ten years in terms of technology adoption, market expansions, strategic developments, and quality excellence?

In the late 1980s, the manufacturing industry took the lead in introducing Quality Management Systems, out of fear that overseas customers would not purchase from them unless they had an ISO 9001 against their name. So they hastily put together a system, saying what they do; and thereafter doing what they said. Obviously, they did not get the promised results. The primary reason for this surprise being that they had not read and understood the guidelines documented in ISO 9004. So, chronic problems persisted and fire-fighting continued on the symptoms of problems. The stage was set for including quality goals into business strategy through a Jack Welsh version of Six Sigma. Once again manufacturing and service organisations faltered. They diluted the power of Six Sigma to mere Quality Circles. Another missed opportunity to ‘manage for quality’. Finally, came the Business Excellence avataar. The primary focus was on ‘quality of management’. Manufacturing organisations were again the

first to embrace the CII Exim Business Excellence Model and the IMC Ramkrishna Bajaj National Quality Award based on EFQM and Baldrige criteria respectively. Most organisations entered the arena only for the Award, and not for the model of excellence underlying the criteria. The performance results have been disappointing. The sterling examples of

view, organisations that are focusing on the quality of the most variable factor – workforce – are harvesting results. The greatest cost of poor quality in a manufacturing unit is traceable to mismanagement of the workforce. IT solutions are available to remedy the cause.

■ Please

suggest top five change drivers for the global

“Quality engineering and reliability engineering must be brought centre-stage for survival and success” Suresh Lulla

manufacturing units adopting Business Excellence Models are in the House of Tatas and the Aditya Birla Group. Each has a customised Business Excellence Model. The roles of leadership, strategy and customer focus have made the difference.

■ Which are the breakthrough

technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?

The role of IT in manufacturing is no longer a choice. In my

manufacturing industry evolving into its future. Drastic reduction in cycle time of processes; drastic reduction in cost of poor quality to double the profit without capital investment; habit of left-brain quality improvement; habit of right-brain process innovation; cross-industry benchmarking of best practices.

■ With

constant pervasive changes in technology & market requirements, how can organisations design/plan the change management process and product development

strategies? Adopt PLM solutions globally. The auto sector has benefitted through effective and efficient implementation of PLM. More specifically, in the design processes, as well as supply chain processes.

■ How are the transforming/

emerging economies and changing trade relations likely to influence the manufacturing sector growth globally?

Low labour cost advantage in emerging economies will not be sustainable. Quality will not be negotiable. Therefore, quality engineering and reliability engineering must be brought centre-stage for survival and success. There must be a conscious shift to the triple bottomline – planet, people, profit.

■ What in your opinion can

be defined as the key to (process-) success in modern manufacturing companies?

There should be only three core competencies in modern manufacturing companies that should NEVER be outsourced: ability to understand customer needs; ability to translate customer needs into product designs and process designs; ability to outsource capable processes.

■

EM KOMPENDIUM | 2014

INTERVIEW INDUSTRY

| 29 |

THE GLOBAL MACHINE TOOL INDUSTRY REVIEW The global economic activities and global consumer spending would decide the growth of the industrial production and in turn, the use of machine tools in manufacturing. The industry, therefore, has developed a strong correlation with the global economic growth and economic activities. This section takes a global perspective of the machine tools industry. The global market is analysed taking into consideration three aspects production, consumption and forecast. It also discusses the growth drivers and the major developments in the industry. The industry players are being profiled with a discussion of their business strategies. Sumedha Mahorey Deputy Editor sumedha.mahorey@publish-industry.net

Advt

EM KOMPENDIUM I 2014

| 30 |

GLOBAL MACHINE TOOL INDUSTRY REPORT

Showing recovery signs INDIA

With the last two quarters suggesting improvement in order inflow, the Indian machine tool sector is likely to gain pace in 2014, riding on demand from key user industries and emerging sectors.

s per Oxford Economics, weak Indian GDP data coupled with a number of adverse economic developments at home and abroad, have led to downgrade in growth forecast. The most noteworthy development has been the slide in the rupee which dampened the growth in the short run due to higher inflation, a loss of monetary policy support and tighter credit conditions, and lower business and consumer confidence. Moreover, the inability of the government to push through necessary economic reforms has led to downgrade medium term growth forecasts.

Statistics As per the Oxford Economics report, output in the key MT customer sectors is expected to rise by 5.2% in 2014.

Investment in machine tool purchasing

Production is expected in six of the eight MT consuming sectors to contract in 2013 figures before experiencing comparatively weak growth in 2014. Furthermore, the unfavourable investment environment is likely to contain investment by the key MT customer sectors. Given the sizable downgrades to output forecasts, it is expected that MT consumption will fall by 7.3% in 2013, the second consecutive annual decline, before seeing growth of 3.8% in 2014. Despite the already bleak economic forecast, risks are still dominated by downside risks. One key risk lies with central bank tightening policy more than currently expected, which would hinder investment and consumption by the key MT consuming sectors. The other downside risk is that investment may be dampened by more than currently

envisaged if key economic reforms continue to be delayed. Sharing his views, L Krishnan, President, IMTMA, said, “The MT industry has sustained performance during the economic slowdown. The current market size of the machine tool industry stands at US$ 2050 million of which the domestic production makes for around 33% of the total consumption. The last two quarters have shown signs of improvement in order inflow. The key user industries such as the automobile, auto components, defence, aerospace and power are set to fuel the growth of Indian machine tool industry”. Elaborating on the sectors propelling growth, he avers, “Consumer durables, electronics and auto industries have seen strong growth in the near past to which the metal forming industry serves

Investment in machine tool purchasing

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT

Interview

‘Growing sectors to trigger demand for MT’ L Krishnan, President of Indian Machine Tool Manufacturers’ Association (IMTMA), emphasises on consumption growth expectation of 5 – 10% in 2014 and MT demand dynamics in emerging sectors such as aerospace, medical equipment and consumer electronics How has been the growth of GDP, industrial production and the

tool manufacturers also participate in these trade fairs. This will enable

performance of India’s Machine Tool industry in 2013?

the global industry to witness products and technologies developed

India’s GDP is estimated to have grown by 4.8% in 2013. During 2013,

in India, help the Indian metal working industry in connecting with

machine tool industry has witnessed decline in consumption as well

the international market and vice versa. This will also boost trade

as production. The machine tool consumption stood at Rs 8,200 crore

opportunities.

which had declined by 31% as compared to 2012. The production of machine tool in India stood at Rs 3,800

How has been MT consumption in India in 2013?

crore which has also declined by 12% as compared

Additionally, detail us on the forecast for 2014.

to 2012.

The year 2013 saw MT consumption at Rs 8,200 crore. Industry is optimistic to see a consumption growth of

What are the opportunities in Indian machine tool

5 – 10% in 2014 as the Government of India has

industry that can be leveraged by global machine

reduced the excise duty from 12 to 10%. This will

tool users?

help to revive growth in the MT industry. A notable

All the leading Indian players have their quality

reduction in the excise duty on automobiles, which is

control processes certified under ISO standards and

the main user sector of the machine tool industry, will

many of them are already exporting. Indian machines

further boost production and consumption.

are getting wider acceptance around the world. The Which are the demand drivers for the growth of

domestic industry has good experience in auto & auto parts manufacturing within the country. Indian machine tool

the MT industry in India?

companies offer wide range tailor-made special purpose machines.

The major demand for machine tools comes from the automotive,

Several multinational auto / auto part makers are using them in

aerospace, defence, railways, general engineering, consumer

India. In the future, we hope that as these companies plan capacities

electronics, and medical equipment sectors.

in other parts of the world, Indian machines will be preferred costPlease elaborate on the Indian market forecast for 2014

effective choice.

and 2015. Is IMTMA participating in any major trade fairs this year?

Key user sectors like the automotive, capital goods and defence

IMTMA has been represented in major global machine tool shows

have registered growth in demand. Emerging industry sectors such

since many years. In 2014, IMTMA will be participating in SIMTOS in

as aerospace, medical equipment and consumer electronics will also

Korea, JIMTOF in Japan and IMTS in the US. These trade fairs attract

trigger the demand for the machine tool industry in India. We are

major global machine tool builders under one roof. Indian machine

expecting 5 – 10% increase by 2014 and up to 15% by 2015.

as the core manufacturing machinery provider. This change has opened new doors of development and growth for our industry. Emerging sectors like medical equipments, pharmaceutical equipments, office infrastructure, white goods, ship building, process equipment & machinery, construction, railway & heavy transportation, communication & consumer electronics, etc; have also EM KOMPENDIUM | 2014

boosted the tide of increasing demand for the metal forming industry. Hence, India can expect to see a considerable growth in the near future for its metal forming industry.”

Highlights and key issues A partial recovery in investor confidence and a rebound in the currency in the last

two weeks suggest that the worst may be over for the Indian economy. But the near-term outlook is still weak. Rising inflation and tighter monetary policy are likely to dent domestic demand. Encouraging measures by the RBI, an easing of tensions in Syria and the Fed’s decision to postpone QE tapering have allowed the rupee to rise by around 10% from the record low of INR 68.4 to the EM KOMPENDIUM | 2013

| 31 |

| 32 |

GLOBAL MACHINE TOOL INDUSTRY REPORT [Value in Rs. Cr] Production

Export

Import

Consumption

Year Quantity

Value

Quantity

Value

Quantity

Value

Quantity

Value

2011-12

18276

4299

584

180

31846

7645

49538

11764

2012-13

13911

3885

505

214

17912

7598

31318

11269

9993

2705

385

177

13782

5770

23390

8298

8909

2395

278

181

8854

3327

17485

5541

2012-13 (Apr-Dec) 2013-14 (Apr-Dec)

Note: Production & Export data is adjusted for units outside IMTMA database Source: IMTMA

Indian production & export data till 2013

XXXXXXXXXXXXXXX

Source: IMTMA

Images : from pdf Investment in machine tool purchasing industries

FORECAST FOR INDIA page 14

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Interview ‘Growing sectors to trigger demand for MT’

Contributions to GDP

US$ in August. But amid weak fundamentals, the INR remains vulnerable although the recent hike in the repo rate is likely to provide some support.

Downside risks dominate The weak forecast is dominated by a number of downside risks. Despite the recent rebound in the INR, a further weakening cannot be ruled out, which might prompt the RBI to tighten policy more than expected. Further slide in the INR is likely to dampen growth in the short term due: High inflation - WPI inflation eased from 7.3% in February to 4.6% in May due to the impact of slowing demand. But it has since risen for three consecutive months, hitting 6.1% in August on the back of the INR fall and an increase in food price inflation, which soared from 11.8% in July to 18.3% in August. This will hit consumers’ purchasing power and dent consumer spending. Loss of monetary policy support and tighter credit conditions - lower inflation enabled the RBI to cut the repo policy rate by a cumulative 75 bp in H1 this year. But in the light of the recent developments, it has halted its easing cycle and has begun to tighten monetary policy instead, including raising the discount rate by 200bp from 8.25% to 10.25% while also increasing the report rate. Given the rise in inflation, we expect he RBI to continue to tighten monetary policy in the near term. This will damage growth prospects. Indeed, the stress in the foreign exchange market has driven up three-month interbank interest rates by 300bp to over 11%. Higher funding costs for banks will limit their ability to lend and therefore dampen both consumer spending and investment. Furthermore, the Standard & Poor’s credit rating agency has indicated that India’s sovereign credit rating, just one notch above junk status, could be downgraded. This would further undermine investor confidence and add to the pressures on the economy.

■

Ease of doing business survey: selected economies

Courtesy: Indian Machine Tool Manufacturers’ Association and ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics

F o r e c a s t 2 011-2 017

Source: Oxford Economics

EM KOMPENDIUM | 2014

| 34 |

GLOBAL MACHINE TOOL INDUSTRY REPORT

Weaker demand in the offing CHINA

With the outlook for the Chinese economy downgraded, the government’s efforts to rebalance the economy away from investment will curb machine tools’ consumption on more than one front. This is likely to be reflected in EXIM, domestic consumption & production over the medium term.

he macro economy of China in the third quarter was significantly positive with the growth of GDP reaching 7.8%. Its macro operation was better than that of the second quarter and the first half of 2013. The accumulated total profit of mechanical industry achieved in the first three quarters was up by 13.4% year-on-year, with 8.2% points higher than 5.2% of the growing rate from the previous year.

Market performance As per CMTBA, under the circumstance of the overall slowdown of China’s growth, market environment and the variation of the other growing elements, China machine tool & tools industry has experienced a severe test of transforming pattern and upgrade. In the first three

China - Industrial output

quarters of 2013, the market scale shrunk. The contradictions of over-capacity for low-end product and insufficient capacity for high-end product are still prominent. Export and import activity also slowed down during the last year. The machine tool & tools industry accumulated product-sales revenue of RMB 564.42 billion Yuan, a year-on-year (YoY) rise of 12.7%. The accumulated fixed assets investment accomplished by the industry for the same period was up by 21.1% YoY. The metal-cutting machine tool sector recorded productsales revenue of RMB 107.2 billion Yuan, a YoY increase of 4.2%. The output of metal-cutting machine tool was 538,939 units, of which, the CNC category was 149,302 units, a decrease of 9.4% and 0.4% respectively on YoY basis. The YoY growth of output value of

metal-cutting machine tool was negative by 13.5%. Of this, the CNC category was negative by 6.9%. The YoY growth of output of metal cutting machine tool was negative by 14.6%, of which, CNC was the same as in 2012. The year-onyear growth of the output value of metal forming machine tool was 6.6%, of which, the CNC was 10.9%. The YoY growth of output was negative by 11.6%, of which the growth of CNC was 5.5%.

Chinese economic situation & its effects As per Oxford Economics, the outlook for the Chinese economy has been downgraded significantly since its last report. As discussed earlier, the the first quarter growth was weaker than anticipated. Furthermore, the

China - Official PMI manufacturing

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT

Interview

‘Automation applications are developing fast’ Chen Huiren, President, China Machine Tool & Tool Builders’ Association (CMTBA), world’s biggest importer and consumer of MT, discusses China’s economic structure adjustment, its reflection on its MT sector and the outlook for 2014-15 How has been the growth of GDP, industrial production & the

elaborate on the forecast for 2014.

performance of China’s MT industry in 2013?

Influenced by the global market and structure demand changes of

The economic growth of China’s economy in 2013 was 7.7% with the

domestic market, the consumption value of China metalworking

fixed investments of the whole society (deducting the price factors)

machine tool in 2013 reached USD 31.91 billion, a year-on-year

and the industrial added value being 18.9% and 7.6% higher than

decrease of 16.6%; of which, the metal-cutting machine tool

that of the previous year respectively. The market of machine tool &

was USD 20.71 billion, 24.4% less than that a year ago; the metal-

cutting tools has continued to fall with the market of

forming machine tool was USD 11.2 billion, a rise of

metal-cutting machine tool being the most prominent

2.8% compared with 2012. The consumption value

in downturn. The import of machine tools declined,

of machine tool mainly depends on the drive of fixed

especially the demand for low-end products. The

assets investment, so the prediction of the said value

status of export of machine tool & cutting tools was

in 2014 would be flat as compared to 2013, as the

in slight fluctuation.

increment of fixed assets investment from key users is not enough.

Please share investment and expansion trends by key Chinese machine tool sectors in 2013. Is this

Elaborate on the key technology trends for China’s

trend likely to continue in 2014?

manufacturing sector for 2014-15 term.

Rebalance of global economy and China’s economic

The constant pursue of manufacturing technology is

structure adjustment has generated a comprehensive

for high efficiency machining. Around this goal, the

and deep impact on both the market of China

design and application of MT have been developing

machine tool & its manufacturing industry. The growth fields of the

toward the direction of intelligence, environmental protection &

said industry reflect in “specialised, fined and peculiar” products and

energy saving, automation, and so on. The development of Chinese

value-added service. The increase of those enterprises possessing

technology cannot break away from the direction either. The

the above products and service character reached over 30% in 2013,

application of automation has been developing even faster in the

though the entire output of China machine tool & tool industry

recent 2-3 years. There are a few CNC system enterprises designing

declined. This tendency is bound to extend up to many years in the

and producing robot in China to help install their products in many

future.

factories at home and abroad.

What are the opportunities in China’s MT industry?

Please elaborate on the China’s market forecast for 2014

China is the biggest country in producing machine tools worldwide,

- 2015.

not only in quantity but also category-wise. The country is also the

The economic environment of China and its machine tool & tool

biggest importer and consumer market of MT in the world with large

market are continuing to experience comprehensive and deep

inventory and excellent machining equipment. Therefore, it possesses

changes with two prominent characteristics. Namely, the aggregate

strong manufacturing ability and enough reserves of advanced

demand is clearly reduced and the upgrade of demand structure is

technical workers. All of these are the necessary conditions for China

speeding up. This tendency will remain unchanged in 2014-2015. This

to be the world factory, so it’s very easy for the global MT users to

would not only force a shift in China machine tool & tool industry to

purchase or have tailor-made products.

adjust and transform its pattern, but also bring new challenges and development opportunities to machine tool & tool manufacturers

Please share the MT consumption in China in 2013. Also,

EM KOMPENDIUM | 2014

throughout the world.

| 35 |

| 36 |

GLOBAL MACHINE TOOL INDUSTRY REPORT

Composition of investment - 2012

Investment in machine tool purchasing industries

Growing slowly & steadily government’s commitment to reduce reliance on credit growth and investment, notwithstanding more recent measures to support growth, points to much weaker growth projections than six months ago. The economy is expected to expand by 7.2% this year and 7.1% next year compared to earlier forecasts of 8.2% and 8.5%. The government’s efforts to rebalance the economy away from investment will curb machine tools consumption on more than one front. Firstly, many of the key customer sectors for machine tools, such as machinery and commercial vehicles and indirectly, metals sectors, will face weaker end-use demand. This is reflected in a significant downgrade to the output forecasts for these sectors, both for this year and over the medium term. Lower capacity utilisation will reduce the need for further investment

spending while tighter credit conditions will limit the ability of firms to spend. Investment spending by these sectors is therefore, likely to be weaker than previously thought. Indeed, orders placed with foreign producers have plunged this year and is likely to result in a sharp reduction in MT consumption this year while weaker fundamentals will weigh on MT consumption further out also. Risks to the forecast are evenly balanced. On the upside, the most recent macroeconomic indicators suggest the domestic economy may be recovering, which could boost MT order intake. On the downside, there is a risk that Beijing may attempt to shift the economy away from over-investment too quickly resulting in a shortage of liquidity and a sharp tightening in credit conditions.

As per Oxford Economics, China’s economy picked up steam in Q3 as industrial output rose by 10.4% in August. And the official manufacturing PMI suggests this strength will continue, with the domestic new orders component rising to 52.4, the highest since April 2012. And retail sales have been robust. But some of the pick-up in 2013 Q3 reflects the strong growth in credit at the beginning of the year; credit growth has since slowed significantly and this will have an impact on investment. GDP growth is set to slow, and is expected to be an outturn closer to 7% in 2014.

■

Courtesy: China Machine Tool & Tool Builders’ Association (CMTBA), ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics, and IMTMA

F o r e c a s t 2 011-2 017

Yuan

Source: Oxford Economics EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Catching up with growth EUROPE

2013 marked an end to the longest economic crisis in European history. GDP growth in the EU turned positive in the second quarter of 2014. With this, the European machine tool consumption is likely to grow by 4.6% in 2014.

lobal growth firmed during the second half of 2013, driven largely by stronger outturns in advanced economies, while final demand expanded broadly as expected. The recently published flash estimate of Eurostat, the statistical office of the European Union, for GDP for the fourth quarter of 2013 confirmed that the economic recovery is gradually gathering strength in Europe. Quarterly growth reached 0.4% in the EU, which is slightly above the Commissionâ&#x20AC;&#x2122;s autumn economic forecast, and 0.3% in the euro area, also slightly above the autumn forecast. Economic sentiment in the euro area has returned to its long-term average for the first time since July 2011. Consumer confidence in the European Union as a whole has reached its highest level since 2008. There is growing evidence that unemployment has reached its peak and, in many countries, is now falling. Although it is still at intolerable levels in several other countries, the dynamics show a turning point. On the other hand, domestic demand has been weaker than expected in many emerging markets, despite a boost to output from stronger exports, reflecting in part tighter financial conditions. Several countries have been influenced by the increasing volatility of financial markets that underscores their vulnerabilities and challenging environment. CECIMOâ&#x20AC;&#x2122;s trade flows reflect the global trends accurately.

industrial production fell by 0.7% in both the euro area (EA17) and the EU28, according to estimates from Eurostat. In November, industrial production rose by 1.6% and 1.3% respectively. Average industrial production for the year 2013, compared with 2012, dropped by 0.8% in the euro area and by 0.5% in the EU28. In December 2013 compared with November 2013, the production of capital goods decreased by 2.1% in the euro area and by 1.9% in the EU28. The production of energy fell by 2.1% and 1.5% respectively. The production of durable consumer goods rose by 0.4% in the euro area, but decreased by 0.3% in the EU28. The production of intermediate goods grew by 0.9% and 0.7% respectively. Among the Member States for which data

are available, industrial production fell in nineteen and rose in four. The largest decreases were registered in Estonia (-5.7%), Sweden (-2.7%), the Netherlands (-2.6%) and Croatia (-2.4%), and the increases in Slovenia (+2.7%), Greece (+2.6%), Portugal (+0.7%) and the United Kingdom (+0.4%). In December 2013 compared with December 2012, industrial production grew by 0.5% in the euro area and by 0.9% in the EU28. The production of intermediate goods rose by 3.6% and 3.7% respectively. The production of capital goods fell by 0.9% in the euro area but gained 0.3% in the EU28. The production of durable consumer goods decreased by 1.2% and 0.8% respectively. The production of energy fell by 1.9% in

Statistics In December 2013 compared with November 2013, seasonally adjusted

Eurozone: GDP Eurozone: GDP

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT Interview

‘GDP growth in EU turned positive’ Jean-Camille Uring, President, European Association of the Machine Tool Industries (CECIMO), elaborates on the recovering markets, MT consumption and emerging technology trends in the European manufacturing industry How has been Europe’s performance in terms of GDP, industrial

Which are the demand drivers for the growth of MT industry in

production and market performance in 2013?

Europe?

The year 2013 marks an end to the longest economic crisis in European

The European machine tool demand is recovering but, here in Europe,

history. GDP growth in the EU turned positive in the second quarter of

the penetration levels are very high. Therefore, fresh demand for

2014 and is increasingly driven by domestic demand. Both domestic

products from key machine tool buying sectors (e.g. motor vehicles)

consumption and investment expanded, reducing the dependency

is less dynamic. The European market is now characterised by

of the recovery on the external sector. Due to a weak start, capital

replacement demand that creates a continuing need for investment in

formation fell by 2.5% in 2013. However, it is expected to continue

machine tools, and greater opportunities are expected to come from

its recent recovery in 2014. Industrial production has

emerging countries.

been pointing to a modest improvement, while the industry’s capacity utilisation is close to the long-term

Please share key technology trends for Europe’s

average.

manufacturing sector for 2014-15. The motto of EMO Hannover 2013 was “Intelligence

Please share investment and expansion by key

in Production”. Those three words clearly depict the

European machine tool sectors in 2013. Is this

trends in European machine tool sector. Intelligent

trend likely to continue in 2014?

production integrates ICT features in machinery,

The European economy’s uncertainty has until

allowing achievement of higher manufacturing

now considerably depressed investments in capital

efficiency and precision. European machine tools

goods and the domestic machine tool consumption.

respond to increasing needs of customers for mass

Therefore, CECIMO forecasts a small contraction in the

customisation in a globalised marketplace. State-

production in 2013. Nevertheless, taking into account

of-the-art production solutions include improved

the gradual improvement of European economy, we expect the trend

human-machine interaction, enabling operators to handle complex

to turn for the better this year. Our optimistic outlook is supported by

tasks more easily. It also allows them to communicate with the service

increases in the domestic order intake by 8% and 16% on quarterly

department of their machine tool supplier in whichever part of the

and yearly basis respectively.

world their plant is located. Digitalisation of manufacturing is the key to higher efficiency, quality, flexibility and availability. Moreover,

How is the European machine tool industry performing

it opens new windows of opportunities to save greater amount of

globally?

resource and energy during the production process, minimising

The European machine tool industry is highly export oriented – 83%

environmental impacts.

of its production is exported. Slowing growth in the most important emerging markets (China, Russia and India) is expected to curb the

Please elaborate on the European market forecast for 2014 and 15.

exports in 2013 slightly. Yet, we estimate the shipments to reach €18.3

With economic growth returning, European monetary policies

billion in 2013, which is still the second best result of all times.

will probably tighten and interest rates rise to more normal levels. Governments are expected to address their deficits and public sector

Please share the MT consumption in Europe in 2013. Also,

debts accumulated during the recession. Changing policies allow

elaborate on the forecast for 2014.

forecasting low growth for the next five years. We expect a GDP growth

Due to the slow and pessimistic start of 2013, we estimate the CECIMO

of around 1.9% per year and the fixed investment growth averaging

machine tool consumption to contract 4% in 2013. However, European

3.4% over the same period. During the last two years, companies

machine tool industry is expected to return to growth path this year.

have extensively postponed their investments in production facilities.

While our optimism is strongly flavoured with caution, we forecast

Therefore, considering the need to upgrade machinery and an

European machine tool consumption to grow 4.6% this year, which

improving business sentiment, the estimated average European

is even more than several emerging markets in Asia like Taiwan

machine tool demand growth is about 5.8%.

or China. EM KOMPENDIUM | 2014

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Country - consumption share

Source: CECIMO

the euro area and by 2.3% in the EU28. On yearly basis, among the Member States for which data are available, industrial production rose in ten and fell in thirteen. The highest increases were registered in Portugal (+7.1%), Romania (+7.0%), the Czech Republic (+6.7%) and Slovenia (+5.2%), and the largest decreases in Malta (-7.3%), Ireland (-6.7%), Estonia (-6.4%) and Finland (-4.8%). In January, the global PMI showed marginal change from December 2013 three year record value of 53.0, and pointed at continued solid expansion with the index value 52.9. The latest national data highlighted widening divergences between performances of the developed and emerging markets. Next to the good results of the United States, Japan, Germany and the United Kingdom, developing countries showed less spectacular performance.

Prediction As per Oxford Economics, the forecast has been revised down, keeping Eurozonewide growth at only 0.9% in 2014. The shift from recession to sustained, albeit weak, growth is mainly accounted for by a pick-up in foreign demand, feeding into investment combined with a smaller drag from fiscal tightening and unemployment reaching a peak. But despite the relatively positive data recently, the factors that have been identified as hurdles to the recovery remain in place. These factors will constrain growth in 2014 and beyond. They include: a restructuring of the banking sector – the extent and pace of which remains uncertain. There is tentative evidence that banks are preempting the ECB’s review of the quality of assets on their balance sheets by selling assets and reducing risk. This implies tight credit conditions in the foreseeable future, despite a gradually improving economic environment. Private sector deleveraging – though much focus has been on reducing public sector debt, high private sector debt also needs to be addressed before the economy can sustain robust growth.

Eurozone: PMIs

Industrial production index Source: CECIMO

Courtesy: CECIMO; ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

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GLOBAL MACHINE TOOL INDUSTRY REPORT

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GLOBAL MACHINE TOOL INDUSTRY REPORT

GDP growth in process With domestic and global orders slowly gaining traction, machine tool production output in Germany is slated to rise by 3% in 2014. Further growth, provided the global economy is not shaken by the political GERMANY developments, is expected in 2015.

roadly in line with expectations, German GDP growth is recovering, boosted by a rebound in investment, rising private consumption and an expansion in net exports. As per Oxford Economics, activity in the key sectors has been mixed. Motor vehicle output surprised on the upside in 2013 Q2, but this pace of growth is unlikely to be sustained. Reflecting the weakness in customer output in the H12013, MT orders declined by 19.3% YoY. However, mirroring the recent uptick in macroeconomic indicators, the 2013 July bookings data has shown a pickup in domestic orders. Momentum in order intake to build through 2014 is expected. As a result, consumption is forecast to rise to a modest 3.7% in 2014.

of 2013 showed a definite plus. Forming technology, the guarantor of success for the development of production output last year, lost 25% of its order bookings in the year’s fourth quarter. “This category is taking a short breather and the big projects of the automotive industry, which is the main customer grouping, have been completed for the time being”, says Schäfer. In 2013 as a whole, order bookings for forming technology were down by 2%. Order bookings for metalcutting technology fell by 8%. August and September, in particular, saw a double-digit growth. This applies to both

domestic and export orders and to the two technology segments involved i.e metalcutting and forming machine tools.

Prediction In 2014, the sector is expecting order bookings to rise again, by around 10%, set to come in equal proportions from Germany and abroad. Schäfer notes, “For 2014, we are expecting growth in orders from both Germany and abroad. The German customers are in many cases feeling more optimistic again. The steel and electrical engineering industries, for

Statistics According to a recent release by VDW, in the fourth quarter of 2013, order bookings in the German machine tool industry fell by 6% compared to the final quarter of 2012. Domestic orders were up by 3%, while export orders were 11% below the previous year’s figure. For the year 2013 as a whole, there is a minus of 6%, with domestic orders down by 7% and export bookings by 6%. “This was a rather unspectacular end to the year for the German machine tool industry”, comments Dr Wilfried Schäfer, Executive Director, the VDW. The year’s final quarter saw a minor setback in regard to a stable uptrend in order bookings. Nonetheless, orders in the second half

Composition of investment 2012

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT

Interview

‘Information technology continues to advance inside MT’ Dr Wilfried Schäfer, Executive Director of the German Machine Tool Builders’ Association (VDW), elaborates on key technology trends in the making, strengths of German machine tool industry and demand drivers for growth in 2014-15 How was Germany’s GDP growth, industrial production and the

Which are the demand drivers for the growth of the German MT

performance of the MT industry in 2013?

industry?

According to Oxford Economics, VDW’s forecasting partner,

The principal drivers will be America and Asia, where investments

worldwide GDP in 2013, quantified in US-dollars, rose by 2.2% and

are predicted to be over-proportionally substantial. Europe, too, is

industrial production output by 2.4%. International machine tool

expected to contribute, though to a lesser extent. In terms of individual

consumption, by contrast, fell by 10.6%.

countries this year, UK, Thailand, China, the USA and Mexico are set to invest over-proportional sums. In Europe, moreover,

What are the opportunities in the German MT

Poland, Germany, Hungary and Switzerland are all

industry that can be leveraged by global users?

above the average for the continent.

An issue currently being widely discussed in the MT industry is additive processes, better known under

Please outline the key technology trends for

the term “3D printing”. Though for some years now

Germany’s manufacturing sector for 2014-15.

prototypes and models have already been produced

Trends in industrial production operations can be

by means of additive processes, using additive

described in terms of diversification, automation and

laser melting or laser sintering, for example, these

efficiency. German MT vendors supply appropriate

processes are now also being used increasingly

machines and solutions for this purpose. For instance,

in industrial mass production operations, and in

more and more processes and machines are needed

metalworking applications, in medical technology,

to be very meticulously customised, especially the

for instance, or the aircraft industry. Information

peripherals. It ranges from handling to the wish

technology, too, continues to advance inside machine tools. This

for a very particular cooling unit; everything that makes inventory

applies firstly, to operator control of the machine, and secondly to

management and service easier for the user. Hand-in-hand with

the control systems. Operator control from a touchscreen or apps

the demand for customised solutions goes the customers’ wish for

that transmit the machine’s capacity utilisation to a smartphone, for

progressively more functions, which renders the machines more

example, are demands raised by what is called the iPad generation.

complex and necessitates properly qualified operators.

Modern-day control systems are operated using touchpads. The

In addition, the industrial sector now tends to expect complete

operator controls can be arranged in any configuration desired,

manufacturing solutions more and more. Customers no longer want

can be combined with graphics and block diagrams, or even

to plan their production lines and then order the requisite machines.

provided with online support. A machine’s operator-friendliness

They present you with finished prototypes and ask what the best way

becomes a unique selling point. The charm of this solution is that

to manufacture it. This requires, for example, automated machines,

the manufacturer can restrict himself to programming the operator

ablility to load, process and forward the workpieces concerned. Also,

interface. The control system as such – purchased in its entirety from

particularly in Asia, in view of rising wage costs, we are seeing higher

a specialist – does its job invisibly in the background.

levels of demand for this automation. Finally, in view of globally rising energy costs, energy-efficiency is a

Please comment on German MT consumption in 2013. Also,

major issue. Here, there are many options available for enhancing

elaborate on the forecast for 2014.

the potential savings on offer. These include, for example, controlled

In 2013, German MT consumption was approximately € 7 billion,

infeed/recovery modules, variable-speed synchronous motors, pump

corresponding to a rise of 4%. For the ongoing year, we are

drives for the cooling lubricant that are operated with frequency

expecting further growth, provided developments in global politics,

converters, low-watt valves for the hydraulics and modules for energy

particularly in Russia and the Ukraine do not lead to a recession.

recovery.

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Investment in machine tool purchasing

example, the mechanical engineering sector, rail vehicle manufacturers and the aviation industry are expecting an overproportional rise in their production output. For this, they need state-of-the-art production technology, preferably made in Germany. “Buoyant demand came in 2013 from Europe, particularly from Turkey, the UK and Russia. This, however, was attributable primarily to one-off effects, high investments in Turkey’s automotive and electrical engineering industries, British automotive and aviation sectors and investments in Russia’s infrastructure. This dynamic will not continue to the same extent in 2014. The primary presumptive drivers will be resurgent orders from Asia and America.

Germany: GDP shares

“All in all, then, the machine tool world looks most definitely auspicious. Against this background, the VDW expects the sector’s production output in Germany to rise by 3 per cent in 2014, to reach around 14.8 billion euros, which will once again constitute a new record figure. For 2015, too, we are predicting further growth, provided the global economy is not shaken by the political developments I have already mentioned.” As per Oxford Economics, the government is expected to maintain the budget close to balance in the medium term, as public debt remains above 80% of GDP. Moreover, pressures on Germany to loosen fiscal policy are likely to ease, as the recovery in the Eurozone broadens – in any event, we estimate that fiscal stimulus

in Germany would have limited benefit for the troubled parts of the Eurozone, as only around 10% of exports from the Mediterranean Eurozone members go to Germany. Germany will continue to shape Eurozone policies. The government will remain supportive of austerity and structural reforms in debt-ridden countries. So far, modest rebalancing within the Eurozone has been achieved mainly via higher inflation in Germany and analysis suggests peripheral economies must also improve nonprice competitiveness to bring further convergence within the region.

■

Courtesy: German Machine Tool Builders’ Association (VDW); ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

F o r e c a s t 2 011-2 017

Source: Oxford Economics

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GLOBAL MACHINE TOOL INDUSTRY REPORT

MT demand to gradually rise ITALY ITALY

With slight increase in domestic consumption, after years of stagnation, the Italian machine tool industry is looking at a positive growth phase in 2014.

s per a recent release by UCIMUSISTEMI PER PRODURRE, the Italian machine tool, robot, and automation system manufacturing industry reached the end of 2013 in a stationary condition. Compared with the previous results, exports show a slight downturn, while an improvement seems to appear in the domestic market.

Statistics As shown by the preliminary data processed by the Studies Department of UCIMU-SISTEMI PER PRODURRE, in 2013 production stood at €4,780 million, with a 1% decrease when compared with the previous year. Exports were once again the driving force of the sector. Stable at €3,615 million, -0.2% when

Investment in machine tool purchasing industries

EM KOMPENDIUM | 2014

compared with 2012, they absorbed 75.6% of the total Italian production. According to the UCIMU study based on ISTAT data, during the first eight months of the year, the main countries of destination of the Made In Italy were: China (+9.5%) 294 million Euros, United States (+9.8%) 254 millions, Germany (-9.6%) 204 millions, Russia (+6.7%) 125 millions, France (-19.1%) 90 millions, Brazil (-24.1%) 84 millions, India (+3.5%) 78 millions, Turkey (-33.1%) 67 millions, Mexico (-35.6%) 50 millions, Poland (-39.3%) 50 millions. On the other hand, the domestic market seems to have reached rock bottom. Consumption, basically stable when compared with 2012, reached 2,055 million Euros (-1.6%); deliveries reached 1,165 million Euros (-3.4%),

while imports stopped at 890 million Euros (+0.7%). But it will be 2014 that will show a definitive change in trend of the Italian market, which according to forecasts should start to show once again signs of growth.

Prediction In particular, in 2014 production will increase by 4.6%, reaching 5,000 million Euros. With a 4.6% increase, exports will register a new record standing at 3,780 million Euros. The export/production ratio will remain stable at 75.6%. After being down for three consecutive years, deliveries will show a positive trend, thanks to a 4.7% increase, they will reach 1,220 million Euros, driven by the recovery in domestic

Composition of investment – 2012

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GLOBAL MACHINE TOOL INDUSTRY REPORT Interview

‘Bio-medical and nanotechnologies to drive demand’ Luigi Galdabini, President of UCIMU-SISTEMI PER PRODURRE, discusses Italian MT growth and “Horizon 2020”, a new framework program of the European Community, which includes a useful funding plan for re-launching the industrial sector in Europe. How has been the growth of GDP, industrial production and the

understand what the sector needs, and activate the necessary actions,

performance of Italy’s MT industry & its segments in 2013?

so that these needs are met. The most important new introduction for

The world production of metal cutting machine tools increased in

next year for the European manufacturers of machine tools is “Horizon

2012 by 5.9%, to just less 51,500 million Euros, representing 72%

2020”, the new framework program of the European Community,

of the sector total, while the world production of metal forming

which includes a useful funding plan for re-launching the industrial

machine tools grew by 10.3%, to 20,000 million Euros, equal to

sector in Europe. Compared with previous plans, the programming of

28% of the overall production. In 2013 production

the European structural funds for the 2014-2020 period

reached 4,780 million Euros, resulting in significant

shifts its interests from infrastructure to technological

stability as compared with the previous year. Exports

innovation, and brings manufacturing back to being

were once again the driving force of the sector.

the main focus point for the European Union, offering

Stable at 3,615 million Euros, -0.2% when compared

SME new opportunities for development.

with 2012, they absorbed 75.6% of the total Italian production. Numbers place Italy in fifth position in

Please share the machine tool consumption in Italy

the international manufacturer standings, and third in

in 2013. Also, elaborate on the forecast for 2014.

line as exporters. In 2014 production will increase by

In the fourth quarter of 2013, the machine tool

4.6%, reaching a level of 5,000 million Euros. Exports

index of orders, registered a 4.1% YoY increase and

will do well, with a 4.6% increase, reaching a new

an absolute value of 100.6. In particular, the amount

record of 3,780 million Euros.

of foreign orders went up by 6% compared to the September – December period of 2012. Internally,

What are the opportunities in Italian MT industry that can be

the index records a substantial stability (+0.2%), when compared to

leveraged by global users?

the fourth quarter of 2012. In 2014 production will increase by 4.6%,

Creativity, intelligence, innovation and profiling are the characteristics

reaching a level of 5,000 million Euros. Exports will do well, with a

that make one choose an Italian product. The technological level

4.6% increase, reaching a new record of 3,780 million Euros. The

of Italian machine tools is similar to that of the main competitors.

export/production ratio will remain stable at 75.6%. After being down

However, what sets them apart is the high level of flexibility, achieved

for three consecutive years, deliveries from manufacturers will show a

thanks to a close collaboration with the final customer during the

positive trend: thanks to a 4.7% increase, they will reach 1,220 million

whole manufacturing process – a work that, although requiring a

Euros, driven by the recovery in domestic consumption, which will

great deal of effort, also results in machines that specifically meet

reach 2,145 million Euros, 4.4% more than in 2013. Also imports will

targeted needs. Italian companies invest on average 5% of their

benefit, although at a lower level, from the increase in demand from

turnover in R&D, but to this one should add all the investments,

Italian manufacturers, reaching 925 million Euros, a +3.9% increase

which are difficult to quantify. This is done by Italians to customise

when compared with 2013.

their machines based on the requests of the customers. Which are the demand drivers for the growth of MT industry in Italy? Any special initiatives to boost trade prospects for Italian

The automotive sector is certainly the most important customer

manufacturers in 2014?

sector, and its crisis has greatly impacted on the machine tool

The needs and the trends of the European machine tool sector are

sector; however, at the same time there has been an increase in

constantly analysed by CECIMO, the European association that brings

the importance and the interest of new end-user sectors, such as

together the main category associations, among which is UCIMU-

the biomedical sector and nano-technologies, which add to other

SISTEMI PER PRODURRE, of which I am the President. Through

consolidated sectors, such as energy, transports, aeronautics, and

comparison and dialogue among the representations, CECIMO tries to

aerospace.

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Italy: Industrial production

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consumption, which will reach 2,145 million Euros, 4.4% more than in 2013. Also imports will benefit, although at a lower level, from the increase in demand from Italian users, reaching 925 million Euros, a +3.9% increase when compared with 2013. Luigi Galdabini, President of UCIMU-SISTEMI PER PRODURRE, states, “The most evident data is the increase in domestic consumption, which after years of stagnation seems to show a positive trend, however small. In other words, demand is there, but there is still a problem of liquidity among Italian companies, which can obtain bank loans with extreme difficulty.” As per Oxford Economics, on the economic side, the GDP is likely to grow by 0.1% in 2014. Looking ahead, a pickup in external demand should support a rise in manufacturing output. However, domestic demand will still be constrained by high unemployment and tight lending conditions. Weighted output in the key machine tool consuming sectors is expected to rise by 2.3% in 2014. Production is also expected to stage a modest recovery. Meanwhile, the strong growth recently seen in precision and optical instruments during 2013 is unlikely to last into 2014 with output predicted to drop back. MT consumption is also expected to grow by 4.5% in 2014.

■

Italy: Contributions to GDP growth

Courtesy: UCIMU-SISTEMI PER PRODURRE; ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

F o r e c a s t 2 011-2 017

Source: Oxford Economics

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Orders bouncing back SPAIN

Based on significant growth of turnover in 2013 due to orders in the metal forming machines sector at the close of 2012, Spanish machine tool sector is expected to recover in terms of demand and order books in 2014.

ncoming macroeconomic data from Spain has moved on the upside, suggesting that the economy will return to positive. The economy is expected to contract by a slightly less steep 1.3% in 2013, accelerating to a modest expansion of 0.5% in 2014. As per Oxford Economics, one of the key drivers of this improvement has been Spain’s success in improving its competitiveness and this is evident in the upgrade to industrial production forecasts, especially forecasts for MT customer sectors. In 2014, growth in the key sectors is forecast to accelerate to 4.2%, ahead of the 0.7% growth expected for industrial production as a whole. On the back of upward revisions to output forecast and an improving macroeconomic outlook, investment is expected to register growth in 2014. This brighter outlook has been reflected in the MT orders.

The last part of the year, something more dynamic, has left us better taste. So, we face 2014, with fewer but more hopeful portfolio. Presently, the sector of machine tools and manufacturing technologies added a net surplus in the trade balance of over €700 million.”

Prediction It is expected that MT consumption will grow by 2.5% in 2014. Risks to this forecast, however, are skewed to the downside.

While the recent data has been promising, underlying fundamentals are still weak. Fiscal tightening and high unemployment will weigh on growth and crucially for investment spending, credit conditions remain tight and are unlikely to ease any time soon given ongoing pressures on the banking sector. Thus, investment spending and MT consumption could be weaker than predicted.

■

Courtesy: AFM and ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

Statistics As recently reported by AFM, in the provisional figures, it has been estimated that in the sub-analysis, machine tools have grown by 7.8%, corresponding to the start, coming from more modest figures, a growth of 7%, while the deformation in highs billing projected growth to 8.8%. The components in turn, have also grown but somewhat less (+2.5%) mainly due to the situation faced by Asian manufacturers. The tools, which have been improved in the last quarter, closed flat. José Ignacio Torrecilla, President, AFM Advanced Manufacturing Technologies, says, “The year 2012 closed in terms of uptake, especially in the sub-shaping machines, and that has allowed us to grow in turnover in 2013. However, the first half was loose and orders are much resented.

* After deduction of the part of the accessories, components and tools sold for Spanish-produced machine tools.

Source : Oxford Economics

Provision data for 2013

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT Interview

‘A turning point in the recovery of demand’ José Ignacio Torrecilla, Chairman of Advanced Manufacturing Technologies (AFM) details on the recovering MT and manufacturing technology sector, growth trend line for 2014 and opportunities in the Spanish industry How has been the growth of GDP, industrial production and the

overall figure of €316 million after more than ten years of decreasing

performance of the Spain’s machine tool industry in 2013?

figures. We hope that it represents a turning point in the recovery of

The Spanish MT and manufacturing technology sector increased

demand in Spain. But we have to maintain that Spain is recording a

turnover by 5.6% in 2013. An analysis by sub-sector estimates that

recovery but evolving from truly poor figures and therefore, although

machine tools will grow by 7.8%, metal cutting will see growth of 7%,

relative growth may be high, data in absolute terms is still very

while metal forming, at an all-time turnover high, predicts growth of

weak.

up to 8.8%. In turn, component parts also saw growth but at a slightly lower rate (+2.5%), mainly due to the

Which are the demand drivers for the growth of

current situation being experienced by manufacturers

Spanish MT industry in 2014?

in Asia. Tools improved in the final quarter, closing an

Last year, the car industry and car parts sectors

even year.

accounted for 34% of our sales. The power generation industry – wind, hydraulic, photovoltaic, oil industry

Is your association organising major trade fair?

and high pressure fluids – accounted for 10%,

What is the USP of this trade fair?

aeronautics 7.5%, capital goods 6% and railways 3%.

We organise the BIEMH fair, the Spanish Machine Tool

We suppose that this distribution will be very similar,

Biennial. BIEMH is the fourth most important trade

this year.

fair in the world for the sector and the third largest in Europe, having consolidated its advancement as a

Please share key technology trends for Spanish

pioneer monographic exhibition for the machine tool

manufacturing sector for 2014-15 term.

sector. We expect that the changes occurring at a macroeconomic

The offer of Spanish machine tools, components, accessories and

level must have an impact on local industry and, in fact, exhibitor

tools manufacturers is very wide and varied, but it has a common

numbers reflect the improved expectations for our national

denominator. All of them are solutions geared to a specific sector and

market. This year, BIEMH will focus on composites, 3D and additive

part type. We will continue to offer high-performance equipment

manufacturing.

designed to cater to specific requirements. We have a capacity to adapt to our customers’ specific requirements, to their applications &

Please share the MT consumption in Spain in 2013. Also,

parts, are specialised in building machines that enable big parts to be

elaborate on the forecast for 2014.

machined, and have to be custom-designed with the manufacturer

In 2013, MT consumption in Spain increased by 4.49% reaching an

and customer working closely together.

F o r e c a s t 2 011-2 017

Source: Oxford Economics

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Rising on government backing JAPAN

With the government’s economic policies and measures to stimulate investment, slight rise in demand has been witnessed in the Japanese economy. This has led to expectation of rise in 2014 orders up by 16.3% over the previous year.

iven the export-oriented nature of many of the key Japanese MT sectors, activity has benefited from the sharp decline in the yen. Trade data suggest Japanese manufacturers may be increasing market share. There is some evidence though that the weaker global picture is affecting production as well.

Statistics As per Japan Machine Tool Builders’ Association (JMTBA), machine tools order volume for 2013 amounted to 1,117 billion yen. This was down 7.9% compared with the previous year and marked two consecutive years of decrease. Nonetheless, order volume has been over 1 trillion yen for three consecutive years.

Composition of investment in 2012

Within this figure NC machines declined by 8.1% to 1,086.7 billion yen. The total volume of NC machine orders has now declined for two consecutive years. Breaking down this figure, domestic orders amounted to 400.8 billion yen. This was up 6.6% in comparison with the previous year. This increase reflects several factors – the improvements in corporate profits due to the correction of the strong yen from the end of 2012, the success of bold monetary easing and economic policy measures such as manufacturing subsidies, and the stimulus to capital investments from the middle of the year. Looking at domestic orders broken down by demand in major industries, industrial machinery products amounted to 162.9 billion yen, up 1.8% in comparison

with the previous year, automotive products amounted to 123.6 billion yen, up 6.0% in comparison with the previous year, aircraft, shipbuilding and transport equipment products amounted to 22.5 million yen, up 18.8% in comparison with the previous year, and electrical and precision machinery products amounted to 34.1 billion yen, down 0.4% in comparison with the previous year. Looking at the main types of machines, lathes amounted to 359.2 billion yen, up 3.1% in comparison with the previous year. Machining centres amounted to 434.0 billion yen, down 22.7% in comparison with the previous year. Machining centres hold the highest share within the total amount of orders. They posted a 38.9% share, down 7.4

Investment in machine tool purchasing industries

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT Interview

‘On a path of steady recovery’ Yoji Ishimaru, President of Japan Machine Tool Builders Association (JMTBA), briefs on the effect of policy initiatives on investments and its result on the Japanese economy How has been the growth of GDP, industrial production and the

decline in demand from Asia. In 2013, it amounted to 716.2 billion yen,

performance of Japan machine tool industry in 2013?

down 14.4% in comparison with the previous year and has dropped

Since the end of 2012, Japan’s economic policy has focused on three

under the 800 billion yen level for the first time in three years.

points. These are – firstly, a bold monetary policy; secondly, a flexible

In Korea and Taiwan, a trend to recovery was seen in industrial

fiscal policy, and thirdly a growth strategy centered on stimulating

machinery and vehicle-related products, which topped the previous

private investment. Until then, there had been a feeling of stagnation

year’s results for the first time in two years. However, external demand

throughout the Japanese economy. But since these policies were

has been mainly driven by China, where EMS special procurement

introduced, the Japanese economy has been on a path of steady

demand for electrical and precision machinery-related products

recovery.

dropped by 49.7%. India also experienced a decline in demand due to a domestic economic slowdown.

Please share investment and expansion by key

In Europe, economic recovery was sustained although

Japanese machine tool sectors in 2013. Is this

gradual, with moderation of concern over the debt

trend likely to continue in 2014?

crisis. Demand amounted to 145 billion yen, up 25.3%

The IMF recently announced its World Economic

in comparison with the previous year. This marked

Outlook. It says Japan’s real GDP growth rate in 2013

the first growth in two years. Looking at demand by

was up 1.7% over the previous year. Its prediction

country, all countries topped the results of the previous

for 2014 is again the same, up 1.7% over 2013.

year, led by Germany, which is the biggest source of

Recently, Japan introduced a reduction of taxes on

orders, followed by other major EU countries, including

capital investments. This is expected to stimulate

Italy, France, and the UK. North America reached a

private capital investment centered on replacement

record high, amounting to 256.5 billion yen, up 9.6% in

investments. As a result, the economy will follow an

comparison with the previous year.

underlying path of gradual growth.

Continuing on from last year, the United States set demand records in a wide range of industrial areas,

Is JMTBA organising major trade fair?

including energy, vehicles, and aircraft products. However, Mexico

We organise JIMTOF. At this fair, each machine tool manufacturer

suffered a slight decrease, although vehicle-related investment

competes to lead in announcing his latest, most advanced machine

continued on from last year.

tools to the world. As a result, JIMTOF features an extremely high

As a result, the share of regional demand by region was the following:

level of exhibits. JIMTOF Tokyo 2014 is expected to make significant

Asia: 42.0% (down 14.6 points from the previous year), Europe: 20.2%

contributions to the world of manufacturing.

(up 6.4 points over the previous year), and North America: 35.8% (up 7.8 points) over the previous year. Looking at the share of external

How has been the performance of Japanese MT industry so far?

demand by country, the United States took over the top share for the

External demand has decreased for two consecutive years due to a

first time in the five years since 2008, pushing out China.

points from the previous year. However, lathes took a 32.4% share, up 3.5 points over the previous year. The combined shares of these two types of machines remained unchanged, accounting for more than 70% of total external demand. The recovery of the domestic economy reflects several factors: a stable exchange rate as well as the effects of EM KOMPENDIUM | 2014

the government’s economic policies and policy measures, including the revision of tax systems, led by the effort to stimulate investment. Meanwhile, the world economy still faces several risks. These risks include the effects on Europe of the intensification of the Ukrainian crisis and China’s shadow banking problem. However, a gradual recovery is taking

place, led by the shale gas revolution in the United States and moderating concern over the European sovereign debt crisis.

Prediction As a result, monthly orders have topped 100 billion yen since September 2013. The total amount of orders in 2014

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GLOBAL MACHINE TOOL INDUSTRY REPORT is predicted to amount to 1,300 billion yen, up 16.3% over the previous year. Within this figure, domestic orders are expected to amount to 450 billion yen, up 12.2% over the previous year. External demand is predicted to amount to 850 billion yen, up 18.7% over the previous year. The GDP forecast for 2014 has been nudged down to 1.3%. Near-term growth should remain supported by a number of factors: Fiscal stimulus - it is estimated that the fiscal stimulus will total around 1% of GDP. The new spending is split roughly 40% on infrastructure and 60% on government consumption. Government investment rose by 3% on the quarter in 2013 Q2 and public works orders were up 29% YoY (in value terms) in July. Yen weakening the yen has traded in a broad range since April but is around 20% weaker on a tradeweighted basis than a year ago. This should support export growth and boost corporate profits and investment. Yen weakening is likely to continue, with the JPY/US$ rate reaching 114 by end-2015. Gradually strengthening global growth - US growth is expected to run at a 3% annualised rate by the end of 2013, and with the Eurozone economy showing signs of stabilisation, global trade growth should pick up, to the benefit of Japanese exporters. It’s thus forecasted that growth in import demand by Japan’s key trading partners (weighted by their shares in Japanese exports) will rise around 7% in 2014-16. Monetary easing - a new monetary framework was announced in January, including a 2% inflation target (up from a previous ‘goal’ of 1%). In April, the Bank of Japan announced a substantial increase in its planned asset purchases,

Export and market growth

Metal cutting machine tools in Japan: Production and Trade 2011

2012

Unit

Value

2013 Unit

Value

Unit

Value

Production

94,282

1,172,930

93,649

1,151,980

56,814

882,824

76.6

Export

106,476

855,195

122,586

945,594

92,244

766,495

81.1

Import

139,587

43,442

138,525

51,080

139,702

63,016

123.4

Y.O.Y

(Source) Production: Ministry of Economic, Trade and Industries : Export & Import: Ministry of Finance

with the BoJ balance sheet set to expand by around 25% of GDP in 2013 and 2014. The impact of this is already being seen in monetary aggregates; in July the narrow M1 money supply was up 5.2% on a year ago while the broadest money supply

measure was up 3.4% on the year - the fastest rise since July 2007.

■

Courtesy: Japanese Machine Tool Builders’ Association (JMTBA); ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

F o r e c a s t 2 011-2 017

Source: Oxford Economics

EM KOMPENDIUM | 2014

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Recovery led by manufacturing USA

With steady growth being recorded in the last couple of years, the US machine tool industry is aiming for slow yet continuous growth in 2014 based on GDP growth expectation of 4 per cent this year.

s per AMT, while the US economy has not seen the double-digit growth recorded in some Asian economies, it has been steadily growing for more than four years and does not show signs of shrinking anytime in the near future. Industry economic experts have similar expectations for the US economy – 3-4 years of steady, modest, 3% or better growth. This 3% growth is on more than a quarter of the world’s GDP and the expansion has been led by the US manufacturing. This is the first time since the mid-1960’s that the US economic recovery has been led by the manufacturing sector. As a result, manufacturing as a share of the total economy grew by 20% in the past four years.

Statistics According to Oxford Economics, revisions to first half GDP data have resulted in downward revisions to the data and 2013 forecast. But the outlook is nonetheless positive and the underlying narrative remains unchanged of a gradual pickup through 2013/2014 based on stronger domestic fundamentals. GDP is forecast to rise by 3.0% in 2014. Reflecting little appetite for investment spending, MT orders slid 4.4% yearon-year in H1-2013 before plunging a further 23.6% in July. It is expected that MT consumption growth will remain weak in 2013. As a result, 2014 consumption forecast has been revised lower on weaker investment and output forecasts. Risks to the forecasts are skewed downwards. The underlying assumption is that orders should begin to grow before year-end. However, given the strength of consumption in 2011/2012 and the

weakness in emerging export markets, the risk is that the downturn could be even steeper.

Prediction The outlook for the US manufacturing sector, in general, is optimistic over the next four years. Industrial production has averaged nearly 4% growth since the recovery began in 2010. The forecast for industrial production growth over the next four years is slightly better than 4% annually. These numbers resemble those posted during the six-year expansion in manufacturing between 1992 and 1998. US manufacturing technology demand has grown dramatically over the past four years. After doubling orders between 2009 and 2010, orders averaged 32% growth

over the next two years. US manufacturing technology orders are expected to expand by more than 10% in 2014 and analysts are not looking for a contraction in the market anytime in the next three years. The main factors supporting shortterm growth are: Improving household finances – household balance sheets continue to benefit from rising equity and house prices. Moderate employment growth and rising real wages are bolstering purchasing power and the impact of the tax increases is fading as time passes. With debt ratios at their lowest for nearly a decade, household deleveraging may be ending. A stronger housing market – home sales and building activity remain volatile on a monthly basis, but are nonetheless solidly above levels a year ago. House prices

Investment in machine tool purchasing industries

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT

Interview

‘Enthusiasm is building in manufacturing’ Doug Woods, President, AMT, discusses resurgence of the US manufacturing sector, emerging technology trends like nanotechnology and cloud manufacturing and outlook for the US MT industry in 2014 Which are the demand drivers for the growth of the US machine

Finally, reshoring has been a boon to the contract machine shop

tool industry?

sector across North America, which represents the largest customer

The key driver in this recent enthusiasm is manufacturing’s

sector by total dollar volume.

increased importance in the economy. This is the first time in half a century that the manufacturing sector has led this nation out of

Please share key technology trends for the US manufacturing

a recession. The drivers for both this excitement in manufacturing

sector for 2014-15 term.

and its future growth rest in a change in the US

In the medium term, the US manufacturing technology

manufacturing equation, the growth in consumer

market looks healthy for the next two years. Looking

confidence and a peak in the replacement cycle for

longer term, players in the global manufacturing

capital equipment.

technology industry should develop an awareness of several innovative technology trends. Robotics,

Please elaborate on the US market expectations

automation and Big Data are the fastest developing

for 2014 and 15.

trends in this industry. Closely tied to the trends in

In 2014, the US will become the leading producer of

automation are the changes occurring in the value

energy resources in the world. This is a position that

component of the machine tool. Today, it’s about the

it has not held in nearly 50 years. The advantages

software. Controls have become data central for the

are obvious – lower prices for energy and a safe,

factory floor and software innovations have made it

guaranteed supply less likely to face disruption

more capable of working dynamically with designers

within the borders of the United States. The same

and ERP systems, collecting information and even

can be said for the supply chain disruptions. With respect to

responding and adjusting to the data coming in.

inventory, the shipping and logistics costs added to the inventory

The near future is going to be all about the expansion of Big Data

costs of product in transit have made manufacturing regionally

throughout manufacturing. Advances in automation, software,

more attractive globally, not just in the US. The advantage to US-

and the introduction of MTConnect (MTConnect.org) have resulted

based production is its physical proximity to about 40% of the

in an explosion in the placement and use of sensors. This is not a

world’s consumption. North America alone is 35% and Brazil is

manufacturing technology centric trend. There are thousands of

another 4%.

sensors in planes, hundreds in cars, and dozens in machine tools

The expansion in manufacturing capacity is across the board but

– all feeding gigabytes of data into analytical systems on an hourly

a few industries stand out as ripe for above average growth in the

basis. The insights that this sensor information is providing and the

next two years. The automotive sector is leading the way. While new

actions companies are taking based on Big Data are saving billions

models coming to market will require production lines not currently

of dollars a year.

operating, the innovations in power plants and trains made over the

Additionally, MTConnect is making for huge strides in the

past two years will lead to the greatest growth in capital investment.

interconnectivity and communication between equipment and

The second fastest growing sector will be aerospace. Global

devices on the shop floor. In the future, we are excited to see

demand for air travel ensures a continued flow of orders for Airbus’

developments in nanotechnology and cloud manufacturing.

and Boeing’s core products. Also of interest are numerous players

Already making inroads throughout the industry, we foresee more

in the regional aircraft field, where fleet age is climbing and up-

commercial successes in these industries in the coming years.

and-coming aircraft manufacturers in Asia could snap up demand.

EM KOMPENDIUM | 2014

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Historial data for the cutting tool market

continue to improve and supply remains constrained in many areas. Competitive manufacturing sector – unit labour costs in manufacturing are at their most competitive for over 30 years, and many firms are also benefiting from relatively low natural gas prices. This is supporting exports in the face of subdued world demand. Fading fiscal constraint – while the federal sequester will curb spending further, the greatest impact will have been felt in H1 2013. There are some signs that spending is beginning to turn up in both state and local governments in terms of hiring and construction spending. But the improved budget outlook has eased pressure on politicians to come to a ‘grand bargain’ on the budget this year, and there could be renewed tension when the debt ceiling needs to be raised. The energy boom – we estimate that the shale oil and gas boom has already generated over 1.5m jobs and will add a further 2m over the next few years. Over the medium term, it is expected that the US growth will remain over 3% a year. In part, this reflects a closing of the output gap, currently estimated to be around 5% of GDP. Other fundamentals are favorable, including: Flexible labour force – high unemployment has not so far translated into expectations of longerrun structural unemployment. The US will maintain the flexibility of its labour force, which offers an advantage over other advanced economies. Strengthening financial sector – debt levels for US financial corporations are at their lowest since 2001, and bank lending to corporates is now expanding, in contrast to credit contraction in Europe.

US: GDP Growth

Courtesy: AMT; ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

■

F o r e c a s t 2 011-2 017

Source: Oxford Economics

EM KOMPENDIUM | 2014

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Robust recovery expected UK

As the market recovery is broadening out from the consumer & housing market into exports & business investment, UK’s GDP is expected to grow at 2.2% in 2014. With this, machine tool consumption is also likely to grow this year.

s per the statistics recently released by the Manufacturing Technologies Association (MTA), the confidence in the UK’s machine tool sector is at a two year high. A majority of companies are predicting improvements in their businesses over the next 12 months. The year 2013 has been strong for the UK industry with order and sales at good levels throughout. Graham Dewhurst, Director General, MTA, said, “It’s good news that confidence is up and that our members are looking forward to the future. It’s reassuring to see the indicators continue to point in the right direction it’s also reassuring to see that growth is on a sustainable pattern not a rollercoaster. “2013 has been a strong year for the industry with order and sales at good levels throughout. What is also good news is that we can now see a clear trend in employment with companies’ workforces

Investment in machine tool purchasing industries

growing at an annualised 6%. “If the manufacturing technologies sector is doing well then it means that UK manufacturing is investing in its future. But we need to be sure this continues into the medium and long term. The UK is a great place to manufacture, but it could be better still. We now have a competitive tax regime in place for R&D but Government needs to capitalise on that by making the other side of the investment coin - plant and equipment - globally competitive too. That can be done through bringing capital allowances up to international ‘best-inclass’ standards”.

Statistics Machine tool orders were fairly healthy in H12013. However, this was largely down to a few very large orders. Despite the fact that some of this increased order intake

was for the domestic market, it is likely to take over a year to translate to MT consumption. Thus, consumption is likely to follow a more similar trend to output of customer sectors than order intake. With improvement in corporate confidence during 2014, a boost investment spending is likely. It will also result into spurring MT consumption to growth of 2%. The strength of the recent indicators suggests that there is some upside risk to these short-term forecasts, though further out the risks are skewed to the downside.

Prediction According to Oxford Economics, the strong run of UK’s economic indicators continues, with evidence that the recovery is broadening out from the consumer and housing market into exports and business investment. As a result, the forecasts have

Composition of investment - 2012

EM KOMPENDIUM | 2014

GLOBAL MACHINE TOOL INDUSTRY REPORT Interview

‘Aerospace sector will continue to grow’ Mark Ridgway, President of the Manufacturing Technologies Association (MTA), stresses in the building confidence in the UK machine tool industry, the growing demand from aerospace sector and forecast for 2014 How has been the growth of GDP, industrial production and the

Estimated machine tool consumption for the UK in 2013 was in the

performance of the UK’s machine tool industry in 2013?

region of £643m. Our forecasts are broadly in line with the 4% growth

UK GDP growth has been strengthening over the last 12 months

rate identified above.

with overall growth for 2013 estimated at 1.9%. Sales of UK machine tools, 85% of which are exported, will be up in 2013, at approximately

Which are the demand drivers for the growth of machine tool

£600 m, which would indicate a growth rate of around 4%.

industry in the UK? The UK has a strong and growing aerospace sector

What are the opportunities in UK’s machine tool

(the second largest in the world). The sector is likely

industry?

to continue to grow for decades to come as economic

Our capabilities include increasing specialisation and

and environmental change drives new orders for civil

new ways of deploying technologies that are being

aircraft. The UK’s automotive sector is also resurgent at

developed within our strong research base.

the moment with substantial inward investment from the likes of Jaguar Land Rover and Nissan. Finally, there

Is MTA organising major trade fair? What are the

is substantial investment in the UK’s power generation

USPs of this trade fair?

capacity in the pipeline, in technologies as diverse

The MTA organises MACH Exhibition which is Britain’s

as nuclear, offshore wind and unconventional oil

biggest manufacturing technologies trade fair. The

and gas.

exhibition is the only place in the UK where a wide range of machine tools are on display. The MTA has

Please share key technology trends for the UK’s

been working with UK Trade and Investment (a Government Agency)

manufacturing sector for 2014-15 term.

to identify opportunities and bring overseas visitors to the exhibition.

The trend is towards increasing levels of technology and automation. As a consequence of such investments, we are seeing an increase in the

Please share the machine tool consumption in the UK in 2013.

number of UK companies re-shoring their manufacturing operations

Also, elaborate on the forecast for 2014.

as they become more cost effective.

been revised and the GDP is expected to grow 2.2% in 2014, up from 2% last year. The majority of the weakness is centred in the machinery sectors, while,

basic metals, motor vehicles and other transport equipment are in strong growth mode. In 2014, output rebound across all key sectors is expected.

■

Courtesy: The Manufacturing Technologies Association (MTA); ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

F o r e c a s t 2 011-2 017

Source: Oxford Economics

EM KOMPENDIUM | 2014

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GLOBAL MACHINE TOOL INDUSTRY REPORT

Investment to rise

Investment to rise SOUTH KOREA

Despite dwindling orders from the automotive sector, Korea’s MT industry recorded an increase of 28.7% as compared to second half of 2012 in domestic demand orders. Considering this, a pickup activity in the key MT-consuming sectors is expected in 2014.

he slump in global trade has hit manufacturing output in Korea’s export-oriented economy. The weakness in economic activity has been evident across all MT-consuming sectors with big declines seen in motor vehicles, machinery and equipment. But from 2014, Oxford Economics is expecting a pickup activity in the key MT-consuming sectors, although transport equipment output may grow at a slower pace than other sectors. Stronger investment in the advanced economies will provide a source of demand for the output of these sectors, offsetting some of the impact of a weaker outlook in China.

Statistics As per a recent release by KOMMA, Korea’s machine tool orders received in the first half of 2013 increased 1.7% YoY to 2.47 trillion won, but compared with the second half of 2012, orders rose as much as 37.3%. Domestic demand orders decreased 8.2% YoY to 925.9 billion won, which, however, represented an increase of 28.7% from the

second half of 2012. Export orders grew 11.5% YoY to about 1.12 trillion won in the first half of 2013, up 45.4% from the second half of 2012. In terms of orderreceipt ratios, exports (54.8%) outpaced domestic demand (45.2%). By item, order receipts in the first half of 2013 for NC cutting machines increased 7.5% YoY to about 1.75 trillion won, but general-purpose cutting machines (69.8 billion won, -11.4%) and forming machines (230.4 billion won, -25.8%) experienced decreases in orders. Among the orders for NC cutting machines, NC lathes registered a comparatively significant decline (602.5 billion won, -10.3%), while machining centres (732.2 billion won, -2.2%) also fell YoY. In addition, orders for most of the other items YoY include boring machines (inclusive of NC, 33.5 billion won, -37.0%), grinding machines (inclusive of NC, 38 billion won, -10.9%), and general-purpose lathes (14.8 billion won, -6.0%). Despite project orders for some large-sized presses, press orders decreased 25.8% YoY to 226.7

billion won. Among the end-user industries that registered a YoY increase in machine tool orders during the first half of this year were general machinery (167.7 billion won, 4.1%), electric, electronics, IT (126.3 billion won, 69.4%), and shipbuilding & aerospace (55 billion won, 12.6%). However, orders from the automobile sector dwindled 17.3% to 307 billion won.

Prediction As the global economy stabilises, business confidence should rise, triggering firms to ramp up investment in machinery and equipment. Investment by Korean MT-consuming sectors is forecast to rise by 10.9% in 2014, after growth of just 0.7% in 2013. The acceleration in investment spending should also help to boost MT consumption. A 5.1% increase in apparent consumption in 2014 has been thus, forecasted.

■

Courtesy: Korean Machine Tool Manufacturers’ Association (KOMMA); ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

F o r e c a s t 2 011-2 017

Source: Oxford Economics

EM KOMPENDIUM | 2014

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| 62 |

GLOBAL MACHINE TOOL INDUSTRY REPORT

Accelerated growth in 2014 TAIWAN

Though Taiwan’s GDP has been downgraded notably in both the near term and medium term, with the global economy expecting strong growth in 2014, especially in developed countries like the US, Taiwanese exports and investment are likely to gain some momentum.

s per Taiwan Machine Tool & Accessory Builders’ Association (TMBA), the export value of Taiwan machine tool in December was USD 316 million, up by 6.7% compared to November, and down by 2.3% YoY. Exports stood at USD 3,548 million in Jan-Dec period, declined by 16.2% YoY. In the second half of 2013, the continuing economic growth in Europe and America brought the recovery of global economy, which balanced with the weak economy in Asia. As per Oxford Economics, GDP has

been downgraded notably in both the near term and medium term. In addition, prospects in Taiwan are closely linked to developments in China and given that the Chinese authorities are now willing to accept a slower pace of growth in order to rebalance their economy, Taiwanese GDP is likely to expand at a slower pace than previously expected. Moreover, fragile external conditions are likely to contain fixed investment somewhat. As a result, GDP growth of 3.1% in 2014, has been forecasted.

Investment issues

Main export areas of taiwan machine tools in Jan-Dec period of 2013

Given the weakness abroad and the impact it is having upon fixed investment in Taiwan, weighted output in customer sectors is unlikely to see strong growth this year. And the medium term downgrade to our macroeconomic forecasts means that the expected pick up in weighted output is likely to be less robust in 2014 than previously assumed. Overall, weighted output in the customer sectors is expected to expand by just 0.5% in 2013 before accelerating to 5.4% in 2014.

Prediction The risks to the forecast are skewed to the downside. Growth in China could surprise on the downside which would result in even weaker growth in Taiwan via trade links. In addition, a more pronounced slowdown in the Eurozone breakup could hit Taiwan considerably.

Exports in negative According to custom statistics published by Directorate General of Customs and Department of Statistics and as analysed by TMBA, the top ten exporting areas of Taiwan Machine Tool are – China (including Hong Kong), USA, Thailand, Turkey, Germany, Indonesia, Korea, Russia, Malaysia and Netherlands. The main exporting market was still China and Hong Kong with export proportion of 33.6% and value of USD 1,191 million, down by 20.3% YoY and up 9% compared to the previous month.

■

Courtesy: Taiwan Machine Tool & Accessory Builders’ Association (TMBA); ‘Global Machine Tool Outlook’ Autumn 2013 by Oxford Economics and IMTMA

F o r e c a s t 2 011-2 017

Source: Oxford Economics

EM KOMPENDIUM | 2014

INTERVIEW INDUSTRY

INDUSTRY INTERVIEW Towards successful manufacturing Multiple elements that define the Indian manufacturing industry have changed over the years. Though increase in cost and infrastructure constraints have become more pronounced, these leading industry experts and technology adopters discuss the changing customer requirements & market conditions that affect manufacturing and product development strategies; upcoming technology advancements, innovations and R&D strategies while painting the machine tool landscape on a positive note. Srimoyee Lahiri Sub-editor& Correspondent srimoyee.lahiri@publish-industry.net

EM KOMPENDIUM I 2014

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INDUSTRY INTERVIEW

“Technology is the key to effective DFE” Gautam Dutta, Director - Marketing for Siemens PLM Software, India, illustrates on innovations, sustainable product design and effective ways to achieve PLM success in the current uncertain economic situation ■

How are companies looking for ways to improve operational performance and reliability while meeting escalating requirements for greater productivity? Operational performance and reliability of meeting productivity challenges depend primarily on two parts – planning & manufacturing productivity. Manufacturing productivity includes minimising capital investments and maximising long-term ROI through increased planning accuracy and efficiency. In addition, it includes shortening time-to-volume production through analysing product manufacturability & process development and optimising performance of entire production systems.

■

How can companies ensure profitable growth in a globally competitive environment and protect margins at the same time? While top-line growth remains a priority for all manufacturers, an even higher proportion is prioritising the bottom line, so as to become and remain as lean as possible. Manufacturers are confident of a near-term upswing in their businesses, but are also still concerned about costs. Input cost volatility is their leading concern, they also continue to rationalise their operations. Exiting unprofitable product lines and/or geographies

are becoming important decisions to make for most manufacturers. The economic downturn has helped develop, among the more sophisticated manufacturers, a zero-waste mentality. Additionally, many manufacturers have adopted

affordable DFE. An integrated platform approach based on meets sustainability demands at much lower cost.

■

What do you think are the effective ways to achieve PLM success in the

“Economic downturn has helped develop, among the more sophisticated manufacturers, a zero-waste mentality” Gautam Dutta

transformational innovation as their primary initiative. They are adopting a two-pronged approach to innovation: working to extend and enhance their product lines while cutting costs via process innovation.

■

Manufac turers who approach sustainable product design using PLM framework are said to get benefitted in addressing current as well as future sustainability challenges. Please elaborate… The‘design for the environment’ (DFE) approach addresses product oriented requirements early in design. It allows engineers to make sustainable choices based on timely feedback. Better practices and enabling technology are the keys to effective and

current uncertain economic situation? It is an information strategy that builds a coherent data structure by consolidating systems. It can also be termed as enterprise strategy enabling global organisations work as a single team to design, produce, support and retire products. It’s a transformational business strategy. PLM helps to be agile, take quick decisions, make the right product right firsttime, fine-tune manufacturing strategies and truly implement lean engineering throughout the value chain, thereby being beneficial, in the current uncertain economic situation.

■

Frost & Sullivan recently recognised your company as Company of the Year in India, 2013. What do you attribute this achievement to?

This award is a testament to our unwavering commitment to the manufacturing industry in India. As manufacturers strive to achieve competitiveness within an increasingly complex global business environment, we will continue to ensure they make smarter decisions across the product lifecycle thereby, building better products.

■

Which future innovations from Siemens PLM are coming up? We help our customers deal with complexity for product and process complexity, environmental, safety and government regulations, worldwide development practices or diverse global market requirements by providing systems that give the right information and accurate systems decisions. It is based on three foundational technology pillars intelligently integrated information, futureproof architecture and a highdefinition user experience. We continue to invest heavily in our technology for efficient functionality and user experience. We have innovations in industry processes and best-practices too. Through Industry Catalyst Series, we encapsulate industry bestpractices within our solution set, thereby accelerating PLM implementations and enhancing ROI for our customers.

■

EM KOMPENDIUM I 2014

INTERVIEW INDUSTRY

“Creating a competitive advantage” Sharing the advancements in multiple layer Nano-coating and development of new substrates, Bhagya Chandra Rao, MD, Kennametal, briefs on the market conditions and demands for advanced cutting tools ■

What is manufacturing success in today’s competitive world, especially in the flexible economy? How is Kennametal’s approach toward this? The last 18 months have been quiet dramatic as Indian economy and specific manufacturing sectors are undergoing uncertainty. So, manufacturing success is all about creating a competitive advantage position through the products and services. Our company makes newer technologies and product platforms available and achieves more than 40% of our sales each year from the new products developed in the past five years that deliver at least 20% productivity improvement. We expect that markets will recover soon.

■

How often do the changing customer requirements & market conditions affect the manufacturing and product development strategies? Please give some examples from your organisation? Customer needs keep changing and we set benchmarks. Such needs set the pace for the innovation culture in our organisation. Today, we also witness significant progress in the material science technology from automotive to airplanes. For example, ‘Solid Ceramic EM KOMPENDIUM I 2014

Endmills’ for machining heat resistant super alloys is widely used in power generation and aerospace. NOVO, which enables simple process planning helps customers for precise process planning in a given component in a minimum time than conventional approach. Customers are interested in total solution and they welcome if it can come from one entity.

■

“Just enough machine” or ‘just enough features in

beyond in the last decade for rapid speeds, enhanced features and accuracy. Just meeting the requirement may be sufficient today, but when capital investments are planned, long term perspective will become essential. Hence, more features on the machine are essential.

■

How do you see the future of manufacturing in terms of advanced technology adoption, k n ow l e d g e enhancements & training,

The last 18 months have been quiet dramatic as Indian economy and specific manufacturing sectors are undergoing uncertainty Bhagya Chandra Rao the machine” is the trend talked about currently. Do you think that is catching up fast? Machines are long-term capital assets and every customer will do meticulous planning when it comes to the purchase of a machine. It is also true that when a customer buys a machine, he would keep in mind the next 10 years requirement. In accordance with cutting tool technology, advancement in machines has gone far

global collaborations & changing customer needs? The shift in component material sets the tone for cutting tool development besides factors like productivity and cost. Advancements like multiple layer Nano-coating and development of new substrates with advance materials are some of the trends. In some applications, we see expensive finishing operations getting eliminated with hard part

turning lowering the cost and improving productivity. In general purpose indexable milling, customers prefer multiple cutting edges and high feed capability. One such example is Stellram. Our company also has a R&D lab where training is provided through live cutting and on the job demonstrations.

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What is your outlook on the business growth and the demand scenario in the coming years? Short-term growth is moderate, but long-term is impressive. We are optimistic about the future and are taking steps to capitalise on potential opportunities. As customers become more sophisticated in their needs and regulators add pressure for environmentally friendly products & more efficient energy use, those organisations that are able to quickly respond to shift in demand will ultimately capture greater market share. As far as Indian manufacturing growth is concerned, we expect aerospace, defence and power generation markets to grow at a faster pace along with automotive segments. Demand of advanced cutting tools will continue in the upcoming years.

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INDUSTRY INTERVIEW

“Just enough” is the buzzword Discussing product development strategies alligned with the changing customer requirements, Vineet Seth, MD – India & Middle East, Delcam Plc, elaborates on advanced technology adoption, knowledge enhancements, training and global collaborations ■ What

is manufacturing success all about in today’s competitive world, especially in between ups and downs of the economy? How is your company’s approach toward this?

Manufacturing success of an organisation is a validation of its cumulative processes, nearly optimal at any given time for a volatile and vulnerable economy. Success in current times is a measure of how resilient the manufacturing processes are, especially when there are challenges in an organisation. The key is for the upper management to strike a balance by choosing appropriate techniques, most likely to give positive results, and for the employees to take ownership of discrete processes and constantly work towards betterment of the process.

■ How often do the changing

customer‘s requirements & market conditions affect the manufacturing and product development strategies? Please give examples from your organisation

The market in recent times is driven by consumer demands - be it target price, features or aesthetic/functional appeal of a product. It is true that some companies have had to make

a number of changes after a product has debuted in the market, based on customer feedback or wish-list. It has become a difficult task for OEMs to predict customer behaviour, in recent times, to a high degree of accuracy. Often the metrics are skewed and out of line. Adding to this instable market conditions - currency fluctuations, fuel price rise, inflation, political uncertainty, policy paralysis and high taxes to name a

“just enough” is the buzzword. This is largely because of the utilisation factor of a given machine over its intended life, for a process - or a given set of processes (or operations). The adaptation is of course, from lean practices and is not a new concept, but it is only really being put into practice across a spectrum of manufacturing in recent times. The exact opposite is true of small industries, where the intention is to

“Success in current times is a measure of how resilient the manufacturing processes are, especially when there are challenges in an organisation” Vineet Seth few, we have a long list of adverse factors affecting manufacturing.

■ ‘Just enough machine’ or

‘just enough features in the machine’ is the trend talked about currently. Do you think that is catching up fast?

‘Just enough machine’ or ‘just enough features’ is a factor of degree of complexity of manufacturing. However, when we look at large scale manufacturing, the trend is indeed catching up where

have a larger capability than the routine operations since increased capability (machine feature wise) means and increased probability to adapt to manufacturing changes at short notice.

■ How do you see the future

of manufacturing in terms of advanced technology adoption, k nowledge enhancements & training, global collaborations, & changing customer needs?

Advanced

and information technology is certainly the mainstay in modern manufacturing processes. Flexible automation cells, closed loop process monitoring, knowledge systems and data analysis are also being adopted in many industries to make the manufacturing process more reliable and accurate. Changing customer needs will always be a challenge to any design and manufacturing process, but the involvement of all stakeholders in the design process is more likely to reduce the complexity (and cost) of a process change as compared to traditional methods.

■ Your

outlook on the business growth and the demand scenario in the coming years…

Demand is ever increasing. With a growing population and the reduction in mortality, the demand curve is expected to keep rising. While there are ample opportunities for businesses to grow, there are always economic challenges for a country. Focus on thrust areas such as aerospace, automotive, power sector, consumer electronics etc, is important for continuous growth.

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manufacturing EM KOMPENDIUM I 2014

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INDUSTRY INTERVIEW

“Need for machine safety” With an optimistic view on the growth of the economy, P V Sivaram, MD, B&R Automation highlights on manufacturing concepts and expectation for better business growth through focus and efficiency ■

What is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy? How is your company’s approach toward this? The economy will continue to grow even with some minor drops. At the same time, customer will demand even more variety in the products. The manufacturer has to tackle the flexibility of the production keeping the unit price same. At B&R, we have provided scalable automation solutions, helping manufacturer as well as machine builders to arrive at an optimum solution to adjust to these ups and downs. For example, achieving a modular machine design with control and drive components installed directly on the machine’s frame or on rotating parts.

■

How often do the changing customer requirements & market conditions affect the manufacturing and product development strategies? Please give examples from your organisation. In a customer driven market, a manufacturer has to closely listen and serve the customer. Each customer has unique

needs and similarly perceives the product in that manner. This calls for a manufacturing concept of ‘zero batch size’. It may not be required to go to such levels. To accomplish this, manufacturer needs highly flexible machines, with quick change-overs and unlimited configuration options. Our company helps machine builders with flexible

modifications. However, we are witnessing an adequate awa re n e s s amongst manufacturing community in the market. At the same time, machine builders are feeling handicapped to realise ‘just enough machine’ for every single customer because any feature of the machine will always be a complex mix of mechanical, electrical &

industry is still under automated and there is a scope for improvement. Earlier, it was believed that automation is an enemy of the employment, but today it has gained its due respect. Industrial automation is helping the society in upskilling labour and ultimately improving his safety as well as economic conditions.

■

“In addition to the traditional automation products, there is now a need for a full blown machine safety implementation” P V Sivaram

software running on scalable PLCs & intuitive operator panels based on rugged PCs.

■

‘Just enough machine’ or ‘just enough features in the machine’ is the trend talked about currently. Do you think that is catching up fast? ‘Just enough features in the machine’ has attracted the manufacturers not only because it allows them to check on the initial investment, but also make them more safe for the investment made with future

automation components. Modular machines that have add-on mechatronic units can be installed even after the machine is commissioned and running enabling quick cost-effective customisation to every manufacturer.

■

How do you see the future of manufacturing in terms of advanced technology adoption, k n ow l e d g e enhancements & training, global collaborations & changing customer needs? Indian

manufacturing

Your outlook on the business growth and the demand scenario in the coming years… In the testing times of economic slowdown, focus and efficiency is of utmost importance. There is a large potential in the business segments of energy management to make the automation products more energy efficient. In lieu of ever increasing population of automation components in the factories, there is a rising demand for completely integrated automation solution. This trend has been more prominent in the recent years. Along with the quality of the production, safety of the operator has received due attention. Hence, in addition to the traditional automation products, there is now a need for a full blown machine safety implementation.

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EM KOMPENDIUM I 2014

INTERVIEW INDUSTRY

“Drive towards higher productivity” Punit Gupta, Managing Director, Blaser Swisslube, illustrates on the newest innovative products in metal working fluids and ways to build sustainable success in the manufacturing industry ■

What is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy? How is your company’s approach toward this? With highly interconnected world, we should be ready to expect the economic cycles of ups and downs at much faster pace in the future. They will bring in more challenges for the organisations and demand for more agile setup to face these challenges. Markets will become more competitive. It will force the management teams to look for ways to increase profitability of organisations. There are various ways to be successful in a manufacturing setup. However, we believe that in order to build sustainable success over the years, companies have to focus on honing their strength areas and focusing on core activities. Time demands that every company has to look into the processes they deal with and work with partners who can bring in expertise in their own field. They need to collaborate together and multiply their strengths. This approach will ensure that companies can go up significantly on the productivity path and make the whole manufacturing EM KOMPENDIUM I 2014

much more efficient. History has demonstrated that companies with innovation in manufacturing technologies and processes have become the leaders. We, at Blaser Swisslube, have always believed in it and have constantly focused on bringing out innovative products in metal working fluids. As a result, we are able to work with customers with innovative formulations

machine’ is the trend talked about currently. Do you think that is catching up fast? There are two sets of approaches which we observe in this topic. One approach is to focus on “just enough machine”. We observe it in many clusters of operations. It offers the cost advantage today but brings in rigidity for tomorrow. However, the other approach also has many interesting aspects

Time demands that every company has to look into the processes they deal with and work with partners which can bring in expertise in their own field Punit Gupta which are very high on cutting performance. These technologies bring in high potential to improve the overall productivity of customers’ machines and contribute toward their manufacturing competitiveness. Our research & development capabilities based at our global headquarters (Hasle Ruesgau) have become one of the largest in this field.

■ ‘Just enough machine’ or

‘just enough features in the

to consider. The companies which are constantly focusing on continuous improvements and have a drive towards higher productivity and manufacturing excellence, often invest in higher technologies for tomorrow.

■

How do you see the future of manufacturing in terms of advanced technology adoption, knowledge enhancements & training, global collaborations, & changing customer needs?

Indian market is maturing fast and becoming more open toward new & advanced technologies. Metal working fluids were regarded in Indian industry as “Coolants – a necessary evil”. The basic expectations were low from coolants. The buying decisions were mostly influenced by lowest price per litre and easy availability. It was not expected to have a contribution from coolants in cutting efficiency improvement. Blaser Swisslube started with providing the technologically advanced MWF’s in Indian market with a clear focus on providing the added value to customers in manufacturing process. These products have been well received and appreciated by customers.

■

What is your outlook on the business growth and the demand scenario in the coming years? I am very positive in mid to long term for the growth in Indian manufacturing industries. There is huge investment taking place and it will continue to happen for many more years. The overall market size will increase and bring in good demand situation.

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INDUSTRY INTERVIEW

“Need to stimulate growth” Gautam Ahuja, CEO, Dormer Tools India, talks about developments in coating technology, edge preparation and chip breaker design and the need for leveraging industry potential ■ What

is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy? How is your company’s approach toward this?

Manufacturing success is about having a complete package with innovative products and reliable & lean manufacturing process to produce consistent quality of products. We need to have the right product mix with customer focus in mind, competitive pricing, inventory management and strong distribution channel for a timely delivery. With a variable economy, one has to ensure that all these elements work fine and lead to customer satisfaction. We serve more than 100 markets worldwide supported by four global distribution centres. A large product portfolio has been created over the years, based on customer needs and we strive to create ‘customer delight’ with our products and services.

■ How often do the changing

customer requirements & market conditions affect manufacturing and produc t development strategies? Would you like to give examples from your organisation?

Customer requirements are

changing toward higher productive tools capable of working at higher parameters and still giving better tool life. With space becoming costlier and a scarce commodity, higher productivity focuses on better utilisation of existing resources leading to less number of machines. Many developments are happening with coating technology, edge preparation and chip breaker design. For this, our indexable brand Pramet has introduced

In mass production, especially auto component manufacturers are producing similar components year after year. The machines need to have a flexible feature offer, but not just a standard machine. There could be many features in the machine which will never be used, but the customer has to pay for it. Thus, machine manufacturers are willing to offer many variants of the same machine with just enough features

“One has to strike a balance between initial capital cost and low price in the market for commodity inserts” Gautam Ahuja a series of Dura atomic inserts for turning and milling, subbranded ‘Up!Grade’. These grades are hard and give better performance at high cutting speeds. We have also launched the ‘Shark Taps’ using latest powder metallurgy technology to manufacture the raw material.

■ ‘Just enough machine’ or

‘just enough features in the machine’ is the trend talked about currently. Do you think that is catching up fast?

required. This is fast catching up, as a competitive offer to the customers, during times when the economy is not doing that well.

■ How do you see the future

of manufacturing in terms of advanced technology adoption, knowledge enhancements & training, global collaborations & changing customer needs?

Most of the cutting tool manufacturers operating in India have a global

presence, making access to most advanced technology. However, one has to strike a balance between initial capital cost and low price in the market for commodity inserts. For a lower price, some manufacturing plants do not bring the latest technology and are not at par with other global plants. In India, there are still many customers who are willing to pay slightly higher for better technology to bring down the total cost and improve their process capability & security. However, Indian manufacturing plants have good intellectual and management capabilities. The future is bright and we need to leverage our potential.

■ What is your outlook on the business growth and the demand scenario in the coming years?

The Indian economy will be good in the long term. The Government has already taken necessary steps in the right direction, which are encouraging. With good governance and an industry friendly policy regime, a stable growth is possible. We also need to stimulate the growth head of domestic consumption to help investments inflow and churn the economy to the next level of development.

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EM KOMPENDIUM I 2014

INTERVIEW INDUSTRY

“Indian market has high potential” Discussing the ever-changing Indian market needs, Hakiran Sandhu, Country Manager, FARO India, highlights on the current business landscape in the country and latest technology advances ■What

are your recommendations on achieving operational excellence and sustaining the growth momentum in today’s uncertain market conditions?

We have maintained close relationships with our customers to understand the ever-changing market needs. We invest accordingly in R&D to apply the latest advances in technology to expand & improve our product offerings. Through this, we achieve operational excellence by ensuring that we develop relevant products to meet market needs, enabling our customers to continually be the best in their industries. Under current uncertain market conditions, it is vital to sustain and grow the market’s awareness for the company’s products. The volume of business leads generated and the eventual sales conversion is dependent on the level of awareness and brand recall. So, we are participating in major trade shows, producing webinars, conducting customer visits and sharing new product launches.

■ What are the current trends

in technology solutions for manufacturing vis-à-vis market dynamics? How is your company’s approach toward this?

In the global market, manufacturers are generally EM KOMPENDIUM I 2014

faced with the need for increasingly higher or tighter quality control. This has been a continuous trend that we have observed in the last few years, and we believe that this trend will continue through 2014. That requirement leads to an awareness and need for high-precision metrology equipment. In turn, we see this as increased business activity here at FARO. As manufacturers’ products and measurement needs become more complicated, quality control and inspection tasks grow to be more intricate. Since

your outlook for the future? Indian market has high potential. Manufacturers have started to understand the importance of having quality tools to achieve superior work performance. However, companies may not immediately see the benefits of investing in expensive equipment. These users may settle for substandard tools or even attempt to develop their own quick fixes, thereby slowing the progress that the testing & measuring market has made. So, we partner educational institutions to

“Non-contact optical measurement technology will likely continue to gain more traction” Hakiran Sandhu

quality is of essence, highprecision equipment becomes crucial for manufacturers. As measurement need continues to grow in complexity, our company stays ahead of competition by meeting manufacturers’ demands, so that they can meet their customers’ demands.

■ How do you look at the

current business scenario in India and the confidence level in your end-user industry segment? What is

give students opportunities to operate our devices. We continue to invest efforts in creating awareness and sharing knowledge & understanding of the benefits of new 3D metrology technology with companies and future generations of engineers.

■ Which technology trends have been witnessed in 2013? What are the expectations for 2014-15?

There is an increase in demand for accuracy, precision and ease

of use. Metrology needs have also become more complex over the years. This year, noncontact optical measurement technology will likely continue to gain more traction. Also, additive manufacturing is catching on globally. The trend seems to continue in 2015 and we will continue supplying products that target this need like ® Laser Scanner Focus3D and Edge ScanArm ES, which offer users powerful functionality and simplicity in small packages. As the world economy gets back on track, we expect to receive substantial business leads this year through team work.

■ What is your agenda for 2014-2015?

We will continue to invest in R&D in 2014 to achieve business goals. We will continue to apply the latest advances in technology to our product lines to improve portability, accuracy, reliability and userfriendliness. We seek to remain at the forefront of the market by introducing more instances of disruptive technology that helps manufacturers reduce overall costs as well as increase productivity. We will also continue to invest in relationships with our existing customers. The availability of such products is a testament of our longterm commitment to R&D and customer support.

■

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INDUSTRY INTERVIEW

“Aligning delivery with desire” Ravi Raghavan, CEO, BFW, briefs about green technology, digital designing and double-digit demand in the Indian market ■

What is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy? How is your company’s approach toward this? It is all about understanding the customers’ need and delivering the solution to the customer. This can be done by helping customers in reducing lead time which makes made-to-order special machines built faster. Our latest horizontal machining centre, Tej is smaller than comparable machine tools and yet machines larger crankshafts. This helps customers save resources. Aligning delivery with desire is another measure. We are carving out new products and are working on the standard & optional deliverables to meet customers’ precise demand. Adopting global mindset and work ethics is also required. Besides, extending the value chain, beginning from vendors and ending at customers like our vendor development initiative, Jagruti, has also helped many vendors improve their working.

■

How often do the changing customer requirements & market conditions affect manufacturing and product development strategies? Please give examples from your organisation.

Yes, change in customer requirements and market conditions affects manufac tur ing and product development strategies. The more nimble and uncomplicated an organisation is, the less it gets adversely impacted by the changes. Though BFW continuously incorporates short-term changes, our focus remains firm on the long-term path. The company has tasted success with many products which were considered revolutionary at the time of

what they want. The rider in ‘just enough’ is ‘enough’. If the design, operations, maintenance and purchase functions think alike, there will be no ambiguity on the matter. Otherwise, it is possible that ‘enough’ for one proves to be ‘just not enough’ for the other! Such a situation is presently not common.

■

How do you see the future of manufacturing in terms of advanced technology adoption, k nowledge enhancements & training,

“Higher population and increased urbanisation will make resources scarcer, leading to price rise and higher volatility” Ravi Raghavan introduction; we have also closed files of numerous products and witnessed lukewarm reception to some of our inventions.

■

“Just enough machine” or “just enough features in the machine” is the trend talked about currently. Do you think that is catching up fast? ‘Just enough machine’ or ‘just enough features on the machine’ is what alignment of delivery with desire is. It is about giving customers

global collaborations, & changing customer needs? Use of technology will make things faster. Digital designing will help us move faster toward lean designing. Integration of modelling and simulation with design will increase and so will the use of virtual reality tools for assessing and optimising complex products and processes. The world may witness induction of self-healing material, nano-particles, lightweight composites, etc. Green

technology, in any case, is a given fact. There will be scarcity of skill; manufacturing will move towards knowledge management and deskilling of work. In addition to Brazil, Russia, India, China and South Africa, one can expect the N11 to appear as a major force. The N11 countries are Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam. The centre of activity of global economy will gravitate towards the East. Economic activity will expand in the region, and some sectors in these economies, especially in India, will grow in a non-linear fashion. Higher population and increased urbanisation will make resources scarcer, leading to price rise and higher volatility. Environmental standards will become tougher. We will have to manufacture more with less input.

■

What is your outlook on the business growth and the demand scenario in the coming years? We expect the demand in India to grow in double-digits in the coming years as a selfcorrecting measure. Europe, though a mature market, should experience good growth as well.

■

EM KOMPENDIUM I 2014

INTERVIEW INDUSTRY

“Becoming technology creators” N K Dhand, CMD, Micromatic Grinding Technologies, explains how customers need ‘just enough features’ in the machines to control their cost of production and the need to move from the status of technology adopters ■ What

is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy? How is your company’s approach toward this?

Manufacturing success is about delivering products and solutions that make the customers more competitive. It is also about adaptability & agility to continuously innovate for delivering exceptional value to the customer. At MGT, we are reinventing our product development and sales & marketing to meet end customer needs. With the help of global experts, we are trying to integrate science, engineering & management to deliver better value to our customers.

■ How often do the changing

customer requirements & market conditions affect the manufacturing and product development strategies? Please give examples from your organisation?

Being mother machines, the product life cycle of a machine tool has not changed significantly, though the life cycle of the products that are made on machine tools is significantly short. For example, cell phones, tablets, etc have a life cycle of few months. This means new dies EM KOMPENDIUM I 2014

for these products need to be produced in even lesser time. So, the machine tool has to produce a new part every few month and has to be extremely flexible for setting up, tooling, measurement, etc. It has a significant impact on how a machine tool is designed today. The customer does not want to invest in a new machine or a new line just because the model of a cell phone has changed.

meets their requirement today. Another example is the Bearing industry. The end product i.e. bearings is a high precision product sold in large volumes. The equipment/machines/lines for a product manufacturing needs many advance features like automation, in-process measurement & diagnostics in order to get the desired productivity and quality. Thus, ‘just enough’ could mean different things to different

“Manufacturing success is about adaptability & agility to continuously innovate for delivering exceptional value to the customer” N K Dhand

■ ‘Just enough machine’ or

‘just enough features in the machine’ is the trend talked about currently. Do you think that is catching up fast?

It depends upon the market or customer that we serve. For example, the submersible pump industry of Rajkot & Coimbatore. The end product is catering to the agriculture segment and hence, its price is also low. The customers in this segment needs ‘just enough features’ to control their cost of production which

customers.

■ How do you see the future

of manufacturing in terms of advanced technology adoption, knowledge enhancements & training, global collaborations, & changing customer needs?

The future of Indian manufacturing is bright. At what pace we adopt advanced technology, enhance knowledge & training is the question. A lot will depend on what we strive for as a country

& the pace at which we act. Lower emission norms, better infrastructure, self-sufficiency in power generation, selfsufficiency in defence; low cost medical treatment, etc will drive this need. This must be done as there is no transfer of latest technology from the West since it is hard earned by them. In Indian context, we must move from status of technology adopters to appropriate technology creators.

■ What is your outlook on the business growth and the demand scenario in the coming years?

With over a billion people, a rising middle class & its aspirations, growth is inevitable in the long term. If we want an Arab Spring in India, the government will need to act & our robust democratic institutions will ensure it acts. But this growth is not without its challenges & uncertainties, which will be overcome by an educated & growing youth population. In India, there are 15 cars per 1000 people against 900, 650, 100 in USA, Europe & China respectively. India produces less than 5% of the world’s total passenger cars. So, there is a huge gap that needs to be filled in this area.

■

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INDUSTRY INTERVIEW

“Positive outlook for business growth” Keshav Khurana, Sales Director & Country Head, Wohlhaupter India, briefs on the latest challenges in the manufacturing sector, the trends of just enough machines,’ and the future trends ■

What is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy? How is your company’s approach toward this? Manufacturing in today’s competitive world is witnessing drastic changes. The emerging trend is totally unpredictable in this competitive environment. In this volatile conditions, markets are not stable and needs are varying on dayto-day basis. The success is about what different can be given to customers in a way which exceeds quality expectations and is aligned with cost requirements. We are focused on providing the best quality to our customers in a cost-effective way.

■

How often do the changing customer requirements & market conditions affect the manufacturing and produc t development strategies? Would you like

to give examples from your organisation?

lesser lead time other than technological changes.

The rate of change of customer requirements and market conditions has gone up as compared to the

“Just enough machine” or ‘just enough features in the machine” is the trend

■

The future of manufacturing is bright. With time, customers have also gained insight about the products which they receive from manufacturers Keshav Khurana

previous years. Thankfully, with flexibility in our manufacturing facility in Germany, we do not undergo a big change. It is more about making minute changes to the current manufacturing and product development strategies in the regular processes. We only see considerable changes and expectations of valuable customers are moving toward faster response as well as

talked about currently. Do you think that is catching up fast? Yes, it is catching up fast. The manufacturing processes are worked upon continuously by the development teams to reduce the time & related costs.

■

How do you see the future of manufacturing in terms of advanced technology adoption, k n ow l e d g e

enhancements & training, global collaborations, & changing customer needs? The future of manufacturing is bright. With time, customers have also gained insight about the products which they receive from manufacturers. This has been possible with trainings they undergo and the news which they keep receiving through manufacturers & media regarding new technologies, collaborations, and knowledge enhancement exercises.

■

What is your outlook on the business growth and the demand scenario in the coming years? We have a positive outlook for the business growth in the coming years with the increasing focus of foreign countries and manufacturers on India. The demand will not be explosive but will be uniform thus maintaining a healthy rhythm for the manufacturing industry.

■

EM KOMPENDIUM I 2014

INTERVIEW INDUSTRY

“Creating cost-effective innovation” Highlighting the various steps to sustain productivity in uncertain economies, Sunil Hasabnis, Managing Director, Baumer India, discusses the strategies and future of the manufacturing industry ■ What

is manufacturing success all about in today’s competitive world, especially in the background of ups and downs of the economy?

Manufacturing success is all about maximum value addition to the customers all through the business process of product designmanufacturing-salesdelivery-after sales support. With technological distinction between different products, each customer interface function in the organisation ensures or decides success.

Most of the design features such as miniaturisation, square housings as against cylindrical housing, have been developed to meet specific customer requirement of fitting the product into design space given by the customer. Heavy duty application development is solely driven by environmental factors

This is dependent on how close relationship we hold with our customers. Historically, Baumer earned its name due to customisation and in main driving forces that included graphic arts; textile machines and heavy engineering industry for heavy duty applications. EM KOMPENDIUM I 2014

■ How do you see the future

of manufacturing in terms of advanced technology

“Machines/features that were considered as high-end few years back have become basic machines/ features today”

■ How often do the changing

customer requirements & market conditions affect the manufacturing and produc t development strategies? Would you like to give examples from your organisation?

be ‘just enough’ tomorrow. That is how the development takes place. So machines/ features that were considered as high-end few years back have become basic machines/ features today.

Sunil Hasabnis

under which our products work such as temperature, dust and humidity, salty atmosphere, etc.

■ “Just

enough machine” or ‘just enough features in the machine” is the trend talked about currently. Do you think that is catching up fast?

This is not completely true. What is ‘luxury’ today might

adoption, k nowledge enhancements & training, global collaborations, & changing customer needs? This can be highlighted in various steps in the Indian scenario. India has emerged as a major service provider riding into information technology. However, in the manufacturing segment, India is yet to earn its legitimate place in the world.

India surely has potential and capability to emerge as alternative manufacturing destination to China. In the first stage of globalisation, product manufacturing wa s moved around based on the development and design know-how from the developed economies. However, the second stage will be based on local design know-how and product development initiated/ emerging from local customer requirements. The question of cost-effective designs and innovation can only be addressed by local engineers who are very much part of the low cost economy and yet are part of international quality heritage.

■ What is your outlook on

the business growth and the demand scenario in the coming year?

Indian manufacturing industry has reached a certain plateau since 2010-11. Unlike in many other places this is not due to saturation of demand but more due to structural factors affecting our economy.

■

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MANAGEMENT

TRENDS

With With aa positive positive bent bent of of mind mind

The article deals with the changing landscape of the manufacturing industry with the adoption of the latest strategies by the industrial leaders aligned with emerging demand & technology trends. Excerpts from EMâ&#x20AC;&#x2122;s interactions with a few industry leaders.

he last decade has significantly altered the global landscape for manufacturing. Fundamentals that drive choice of manufacturing location have moved beyond mere low cost and proximity. Demand has slowed down considerably, across several sectors for example, the auto, home appliances

and building material industries and has witnessed contraction in major categories. With this, the machine tools sector has also been affected. To address this, industrial leaders have come up to offer the latest in manufacturing practices, strategic plans, emerging demand trends and environment-friendly techniques

to sustain in these uncertain economic times. These manufacturing giants are increasingly looking at these parameters to gain competitive advantages and simultaneously sustain profits in the long run. Sharing insights with EM on strategies for efficient manufacturing operations, on innovations, adoption EM EM KOMPENDIUM KOMPENDIUM || 2014 2014

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“We need to exploit resources available across the globe to create and implement a constant stream of new high value addition solutions” Jamshyd N Godrej, Chairman & Managing Director, Godrej & Boyce Mfg Co Ltd

“The stronger the leadership pipelines are and better the infrastructure for training people, faster will be the growth of the enterprise. Hiring well-trained people from other companies is not a solution” A K Taneja, Managing Director & CEO, Shriram Pistons & Rings Ltd

of advanced technologies, industry challenges and keeping at par with the demand trends are some of the thought leaders in the manufacturing sector. These thought leaders include Holger Nestler, Former Executive Director – Technical, Member of the Board, Volkswagen (VW) India Pvt Ltd; Jamshyd N Godrej, Chairman & MD, Godrej & Boyce Mfg Co Ltd; Pavel Hajman, Former President, Asia-Pacific & Senior VP, Business Development, Seco Tools; Pradeep Bhargava, MD, Cummins Generator Technologies India; A K Taneja, MD & CEO, Shriram Pistons & Rings Ltd; Dr K (Subbu) Subramanian, President of STIMS Institute and John Carey, Sr Vice President - Aviation, Industrial, Marine & Energy Lubricants, Castrol Ltd.

Efficient manufacturing practices Manufacturing processes are often treated as ‘black boxes’. According to Subramanian, there is a tendency to treat manufacturing as a collection of tasks, random (statistical) events and as parts of a jig-saw puzzle. “Every manufacturing process is an ‘input/ t r ansfor mat ion / output’ system . Such comprehensive view of every manufacturing process is called ‘system approach’. Here, every process has four EM EM KOMPENDIUM KOMPENDIUM || 2014 2014

input categories: investment / capital equipment / machine tool; expenses / variable cost resources / consumables / work being processed / job or part; constraints / process specifications / operational parameters and organised effort to bring these inputs together, to deploy the transformation (science behind the process) leading to the outputs we seek, is the ‘engineering’ behind the process.” “The outputs can be technical specification or their outcome i.e. the economic benefit. Distinction between these outputs (technical v/s economic) and ability to deliver both as required is called the ‘management’ of the process,” he added. Subramanian further discusses that system thinking for manufacturing processes is an ability to focus simultaneously on science, engineering and even the management aspects. According to him, this in turn leads to a large-scale improvement to the process outputs. “This is a parallel & alternative methodology to the current approaches for treating manufacturing processes as statistical events. It focuses on the big picture and understands the patterns through science, engineering and management, instead of just merely focusing on the tasks or pixels.” According to Nestler, the best manufacturing practices implemented

globally & in India include the core element of the system in a consistent and systematic processes achieved through a uniform group-wide production system. “Around the world, lean centres are currently being established under our brands with training centres at the plants. These offer training courses for employees, from skilled workers to top managers, thus broadening their fields of expertise. By making ergonomics a priority, we ensure an improvement in the quality of production employees’ workstations, resulting in shorter production cycles and a lower error rate,” says Nestler. “The use of an endto-end, software-based control matrix facilitates the capacity planning up to each individual workstation. Quality gates ensure that errors are systematically identified and then eliminated after each step,” he explains.

A global viewpoint Godrej believes that the economy has been ‘global’ for long and has two features - global capitalism and the ability to transport information across the globe through digital technology enabled business processes and global logistics. “These two enablers are conditioned by national economic policies as per the individual interests of different countries. Also, as the developing nations become emerging economies, outsourcing & offshoring are growing. This is a global economy,” he added. He further explains that any company, organisation or individual is rewarded the highest for his outputs. If they are better, it will be available everywhere. But, if the output is not unique, its value will be the lowest price at which it can be acquired from anywhere. This constant need to swim against the current is the ‘volatility’ in the global economy. Hence, to succeed in the global economy, one needs to understand this big picture in mind constantly. “We need to exploit resources available across the globe to create and implement a constant stream of new high value addition solutions. This should be in parallel to creating means and mechanisms to exploit a few such solutions at the largest possible

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volumes. Every level of an organisation needs to adapt to this bi-modal strategy,” he adds. Keeping sustainable development in mind, Hajman asserts that it is not only about energy but also about urbanisation. It is one of the biggest challenges India has been facing. Sustainable urban development is a combination of smart policies that minimise personal transport, energy use and encourages alternate means of transport such as walking and cycling. “With the rise of these economies, there is an expansion of Indian and Chinese multinational companies. Also, the same basic segments are driving the development in both the countries - a strong focus on automotive and power generation in the short-term and an emerging aerospace sector in the long-term. Hence, the growth potential is much more in India than China.”

Essentials of higher manufacturing outputs Taneja believes that the biggest challenge for rapidly scaling up is neither capital, nor customer demand, but management bandwidth. “The stronger the leadership pipelines are and better the infrastructure for training people, faster will be the growth of the enterprise. Hiring well-trained people from other companies is not a solution. This will increase the cost of manpower and also make it difficult to create a unique work culture. Instead, companies have to invest in the in-house development of efficient people. The first responsibility of top management has to be the building of a leadership pipeline.” He also believes that companies have to invest in developing more people than required, so that even a reduction in the manforce doesn’t effect the leadership pipeline. In addition to this, other challenges in the manufacturing sector include skills, flexibility and behaviour of people, developing innovative products and services while at the same time inventing business models. According to Nestler, the challenges are very motivating. “People working on the shop floor have skills but they have to be harnessed. So, we have established a training facility

“Our aim is to reduce the energy usage by 25 per cent over a 10-year period. We have another target of reducing the volume of waste by 2 per cent on an annual basis over a long period of time” Pavel Hajman, Former President, Asia-Pacific & Senior VP, Business Development, Seco Tools

“System thinking for manufacturing processes is an ability to focus simultaneously on science, engineering and even the management aspects” Dr K (Subbu) Subramanian, President of STIMS Institute

“Businesses, which are linked to global sectors will continue to show uncertain growth because the economies in North America and Europe are still fragile. However, the ‘India-India’ growth would continue to fare well due to the improved performance and efficiency compared to previous years” Pradeep Bhargava, Managing Director, Cummins Generator Technologies India in India which focuses on soft skill training and apprenticeship. We have special training sessions according to the demands of car manufacturing. In fact, we are investing in the apprentice project for the future,” adds Nestler. On the other hand, Godrej believes that the challenges in the manufacturing sector should add to human well-being and contribute to improving India’s miserable human development index. He opines that there has been a considerable pressure on the bottomline of companies when increase in price of imports and other commodities are galloping. There is an enormous scope in improving productivity and reducing production costs while remaining competitive. Companies can reduce cost through techniques such as energy efficiency investments and low cost automation.

Technology trends There has been major developments in technologies over the past few years. In coolants and lubricants the trend has been toward greater turbine thrust and improved efficiency. This has resulted in significantly higher temperatures within the engine core as observed by a corresponding increase in exhaust gas temperatures from around 900 to over 1100 degree C. “This increase has placed significant demands upon the heat management systems within the turbine as well as the lubrication system itself, necessitating a move towards greater use of aviation lubricants offering high thermal stability (HTS). BPTO 2197 has succeeded over the last 15 years in building a reputation as the leading HTS-class lubricant in service EM KOMPENDIUM | 2014

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TRENDS

today with nearly 250 million hours of successful operation. In future, we hope to go beyond even the thermal stability afforded by BPTO 2197, by researching improved synthetic ester base stocks offering greater inherent thermal stability and customised antioxidant systems to protect them under extreme temperature regimes found within newer and hotter turbine engine designs,” says Carey. On the other hand, in the automotive sector Nestler briefs about the Blue Motion technology. “It is a seal of quality for innovative, economical and low-emission products and technologies available from Volkswagen. It scans the environment with sensors and enables its driver to reach the desired destination safely. It constantly communicates with the other vehicles and helps prevent traffic jams too.”

Going green Looking specifically on the environmental management, one of the major objectives is to actively participate in a process for sustainable development. Suggesting the same, Hajman elaborates on the initiatives taken at these fronts. “We have been globally certified according to the ISO 14001 environmental management system since 2006 incorporating around 25 main facilities worldwide. Environmental activities in 2010 were steered by five environmental goals: more efficient energy usage, reduction in volume of waste, reducing environmental impact from chemicals, increasing the share of recycled raw materials and reducing environmental impact from transport. The aim is to reduce the energy usage by 25% over a 10-year period. We have another target of reducing the volume of waste by 2 per cent on an annual basis over a long period of time. Actively working in recycling, we are buying back carbide scrap from our customers, helping them improve their environmental performance.” “We have a project called – Blue Planet aimed toward a better environment. We also have a big energy project and aim to save more than 1 million Euro next year. Our experts come from Germany to implement these projects. For example,

“The technology trend has an unrelenting trend since 1960’s toward greater turbine thrust and improved efficiency” John Carey, CEO of Castrol B2B at BP (Aviation, Industrial, Marine and Energy)

“The use of an end-to-end, software-based control matrix facilitates the capacity planning up to each individual workstation. Quality gates ensure that errors are systematically identified and then eliminated after each step” Holger Nestler, Former Executive Director – Technical, Member of the Board, Volkswagen (VW) India Pvt Ltd

the most expensive consumption material is compressed air. There are special projects to see that compressed air is not wasted. The facility is also one of the few environment-friendly manufacturing plants around the area. For example, the exhaust of the paint shop is re-burnt and the resultant heat and energy is reused,” says Nestler. As per Godrej, buildings absorb around 40% of total energy. Green building can save up to 40% energy compared to non-green buildings. This concept encourages the use of daylight and provides a low CO2 environment. Studies have shown that these are significant enablers for office productivity, besides saving huge amounts in electricity bills.

Future outlook Taneja has a wide orientation on the spectrum of contemporary manufacturing subjects and the repercussions it will lead in the coming days. He believes that demand for automobiles and auto components will continue to grow at a double digit rate in the next ten years. “Of course, there will be hiccups on the way, but the trend line is positive and expected to stay that way in the foreseeable future. If we simply triangulate the data of domestic savings

rate, investment, consumption pattern, government spending on infrastructure, FDI, etc, it almost guarantees that India’s GDP will increase at 8 plus per cent per year. This will translate to more employment, more per capita income and hence more demand for automobiles.” He further says, “Exports too are growing in the manufacture of small cars and fuel efficient motorcycles in particular. Global OEMs are beginning to use India as a manufacturing base for modules like engines (Ford, Suzuki Powertrain, Volvo, etc) for exports to other countries. So, demand is expected to be strong for auto components,” adds Taneja. On the other hand, Bhargava opines two types of growth in India. “One is an ‘India-India’ growth, which is growth dependent on developments taking place locally. Second is an ‘India-Global’ growth, which is driven by demand and developments taking place elsewhere. Businesses which are linked to global sectors will continue to show uncertain growth because the economies in North America and Europe are still fragile. However, the ‘India-India’ growth would continue to fare well due to the improved performance and efficiency compared to previous years,” he concludes.

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Further information at

> www.efficientmanufacturing.in

EM KOMPENDIUM | 2014

INTERVIEW INDUSTRY

TECHNOLOGY & MARKET Developments & trends Showcasing the recent technology advancements in the manufacturing world, this article series brings the developments and trends in machine tools, cutting tools, coolants & lubricants, die & mould, industrial maintenance, sheet metal working, automation & robotics, material handling, and manufacturing IT

EM KOMPENDIUM I 2014

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MARKET TRENDS

Educating on used machines

In this era of rising input costs, pressure on margins, volatile exchange rates, manufacturing companies can be more competitive and efficient by having used machines in their portfolio. Sourcing costs are lower and payback period is also reduced. â&#x2013; Manoj Kumar

Manoj Kumar Director - Apex Group mkumar@apex-group.com

he market of used machines in India is highly fragmented and is unorganised. It is informally run with various stake holders such as dealers, resellers, retrofitters and consultants. Increasingly owing to demand from sellers and buyers specialist companies are being preferred as they bring in some semblance of order and process around the transactions. Auction is a good source to buy from a wide range of inventory. The best thing is that renowned manufacturers of machine tools are now organising themselves to cater to increasing demand for used equipment. They are establishing

distinct marketing channels to help their customers. A manufacturer who provides trade-ins or buy back has better chances of making a new sale, as customers today are concerned about what would be the resale value in future. This is a very healthy sign and will benefit the manufacturers as well as the end users. Customers can look forward to increased manufacturer support for their used equipment.

Condition of machines Condition and quality of the machine is a major consideration of any prospective EM KOMPENDIUM | 2014

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Turning machines

buyer. There are many assumed and perceived risks in buying used machines. This can be mitigated to a great extend if a buyer takes few precautions: always buy from a reputed seller, who has a clean track record which can be verified. The past transactions must be transparent. Get a reference check and ask around in the industry ask for written specifications and list of accessories which will be available go through the photographs and video of the plant and if possible do a physical inspection In case what you are buying is of high value, try to check machine with the power on and do a sample job work on the same at the time of inspection check out for the log book, maintenance records and enquire when the next overhaul is due. Check the number of hours the machine has run and what all will be required to upgrade the machine, if the requirement is different. Used machines are a great value for money, provided all due diligence has been done by the buyer.

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Refurbishing machines About half of the machines in the market are sold on ‘as is where is’ basis. There is an increase in trend for refurbished machines to be sold with a limited warranty of six months. If this is done obviously, the cost will be higher. The Indian market for refurbishment is growing exponentially. EM KOMPENDIUM | 2014

Fabricating machines

The talent we have in terms of good engineers and machine operators is the backbone on which this sector is poised to grow. Our engineering personnel/ professionals have a great talent to repair used machines and make them fit to work in a new environment at a very economical cost. Typically, between 10-25 per cent of the old machine cost can go into overhaul. Finding a reputed retrofitter is the key to customer satisfaction. It’s essential to discuss the scope of overhaul and insist on a performance guaranty. This sector has the potential to create a large number of jobs and India can emerge as a refurbishment processing base for machines globally. What we have been able to achieve in the IT sector in terms of a services model can be done in this segment of manufacturing space, where Indian engineering talent can be used for both onsite and off-site refurbishment. This can bring in valuable exchange as the hourly rate for machine refurbishment is very high in Europe, US and Japan.

Benefits to the customers The biggest benefit to the customer is reduced buying cost via-a-vis a new one. A smart buy of used machine can result in saving of 50 per cent. The ideal machine bought should be 4-5 years old and will have approximately15 years of its life remaining. Used machines have a zero waiting time. They are available exstock and in many cases come with all the manuals, installation drawings and

technical inputs at no extra cost. Buyers have multiple options of buying the same machine with different hours and condition. This is not possible in new machines. The customer is really the king in used machinery market.

Benefits to the economy If the Indian manufacturing set up has to become competitive and able to withstand vagaries of global competition, developing the secondary market for used machines is the need of the hour. For industrial growth, expansion of the installed production capacity is needed. If part of that expansion (capex) is from used machines, then the outlay cost of the industrial unit comes down drastically. This can be passed onto customers. This way industrial unit can price their products better and become more efficient and deploy their cash to spend on other areas such as employees, marketing and diversification. By making appropriate mix equipment in a company’s portfolio, the company becomes stronger to meet the global challenges from competing suppliers all over the world. Emphasis has to be on reusing and recycling of equipment for the maximum period so that the economic returns are high. The contribution to GDP from the manufacturing sector would be much higher than what it is today.

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COOLANTS & LUBRICANTS

T E C H N O LO G Y

Choosing the right lubricant

The need to improve productivity and lower costs has led to significant changes in hydraulic component technology and system design, creating systems that are more compact, yet more powerful than ever before. Choosing the right lubricant and a proper oil analysis program therefore, is the key to maximising hydraulic system performance.

â&#x2013; Dr Ian Davidson

Dr Ian Davidson Global Industrial Marketing Manager Mobil Industrial Lubricants

ydraulic systems are used in nearly all industrial and commercial market sectors, such as machine shops, general manufacturing, power plants, construction, forestry and mining, just to name a few. Compared to their predecessors, todayâ&#x20AC;&#x2122;s hydraulic units are far more sophisticated. In fact, modern hydraulic systems feature reservoirs that can range from

60 to 80 per cent smaller than those of older systems, operate with sophisticated computer controlled valves and use ever increasing system pressures. These smaller, more power-dense systems have limited residence time to reject contaminants, such as solid particles and air, and operate at higher temperatures, both of which stress the fluid and system components. Precision hydraulic components, especially servo and proportional valves, EM KOMPENDIUM | 2014

| 85 | are also sensitive to contamination and even a small amount of contamination or fluid degradation by product can quickly damage the equipment. So how can plant managers and equipment maintenance professionals ensure that they properly protect their company’s investment in a modern hydraulic system? Two important ways to help enhance the performance and durability of a company’s hydraulic systems are to use a high performance hydraulic fluid and institute a proactive maintenance and oil analysis plan. By following the tips below, plant managers, equipment maintenance professionals or purchasing agents can make informed decisions when it comes to selecting the right hydraulic oil and developing the right hydraulic system maintenance plan to help ensure their operations remain competitive and productive.

What to look for in a hydraulic fluid? Right specifications One starting point for selecting a hydraulic lubricant is the OEM’s recommendation. This may be specific to the machine manufacturer or the hydraulic component manufacturer, e.g. Eaton, Denison and Bosch. The OEM’s recommendation typically provides the appropriate viscosity grade for the expected operating temperature and pressure range, as well as a minimum level of specifications and performance, such as having Denison HF, Eaton M2950, CM P specifications, ISO11158, DIN 51524 HLP or HVLP, and JCMAS HK-1 qualifications. Right viscosity Above all, viscosity is the most critical factor when selecting a hydraulic fluid. It is important to match the appropriate viscosity grade to operating temperatures and load conditions that a hydraulic system may undergo on a daily basis. Without the proper viscosity, the system will not operate as designed and the system will likely never reach peak efficiency. In factoring in the conditions a hydraulic system will face, it’s equally important to realise that OEM-suggested guidelines may not always provide detailed EM KOMPENDIUM | 2014

One starting point for selecting a hydraulic lubricant is the OEM’s recommendation

recommendations if systems are subjected to extreme working conditions, such as high or low ambient temperatures. Also, for equipment that is used outside and subjected to both hot and cold extremes, a high viscosity, multigrade lubricant that features a balanced formulation may be recommended. In such cases, field application advice from one’s lubricant supplier can be valuable in helping them make the right choice. Right performance attributes Given the higher pressures, higher temperatures and smaller sizes of modern hydraulic systems, hydraulic fluids must do more than simply satisfy the correct viscosity and OEM specification. High temperatures and pressures require fluids that deliver oxidative and thermal stability, while preventing system deposits and providing a high degree of anti-wear protection under these extreme conditions. The fluids must also possess excellent air release properties, filterability and seal compatibility. The latest generation of hydraulic fluids can also help increase overall hydraulic system efficiency. Hydraulic efficiency benefits can translate to increased machine productivity or reduced energy consumption.

Best practices for maintenance Keep it clean

Keeping hydraulic systems clean is a must for all environments. The combination of high pressures, small reservoir size and tight tolerance control systems make the exclusion of contaminants crucial in all systems. To keep the system free of contamination, storing and handling oil properly is a good place to start. Hydraulic lubricants should be stored in a closed container in a controlled temperature environment with adequate spill containment. Transferring hydraulic lubricants should be done through the use of a filter cart and dedicated, sealed clean oil dispensing equipment. Finally, the hydraulic system reservoir should have a quality desiccant breather and system filter, as recommended in the manufacturer’s guidelines. Some systems utilise auxiliary filtration systems, sometimes known as a kidney loop, that continually ‘polish’ the hydraulic fluid to maintain system cleanliness. Oil analysis As part of routine maintenance, one should be rigorous in checking the ‘health’ of the hydraulic oil and the hydraulic system itself. Typically, it is advised that maintenance professionals perform quarterly oil analyses and annual system inspections. For systems that are most critical to a plant’s operation or are subjected to challenging conditions, more frequent oil analysis should be considered.

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T E C H N O LO G Y

Get Automated...

The latest generation of hydraulic fluids can also help increase overall hydraulic system efficiency

The oil analysis should include a measurement of fluid viscosity, water content, particle count and dissolved metals to determine how well the system is operating. Examining changes in the oil analysis data over time, also known as â&#x20AC;&#x2DC;trendingâ&#x20AC;&#x2122; is necessary to assess the condition of the hydraulic fluid. By trending oil analysis data it is possible to proactively address undesirable conditions before they become problems. Visual inspections Beyond oil analysis, visual system inspections should be conducted regularly to check and document the condition of the hydraulic systems. Inspection data can be used to establish the optimum time to perform maintenance on critical hydraulic components such as filters, breathers, valves, hoses, heat exchangers and pumps. Comprehensive leak detection should also be performed, especially if excessive hydraulic oil usage is noted during a routine system inspection.

To summarise

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The new, compact, high-pressure hydraulic systems must be protected with fundamental best practices such as using a high- performance hydraulic lubricant and implementing a proactive oil analysis program. The right lubricant and maintenance program can help improve productivity through efficiency benefits, more reliable equipment performance, and increased machine availability. By incorporating these key best practices and following the additional tips provided above, plant managers, equipment maintenance professionals and purchasing agents can make informed decisions that will help maximise the performance and life of their companyâ&#x20AC;&#x2122;s critical hydraulic systems.

â&#x2013;

For digital edition, visit:

> www.efficientmanufacturing.in

Tel: +91 (20) 64 51 57 52 Email: AandD.india@publish-industry.net

EM KOMPENDIUM | 2014 EM KOMPENDIUM | 2014

T E C H N O LO G Y

CUTTING TOOLS

Meeting developmental challenges

The process of developing new technology for cutting tools incorporates the analysis of characteristics of the materials being machined, demands for specific machining operations, and interactive communications between toolmakers and end users. Hereâ&#x20AC;&#x2122;s a look at the current and future trends within the cutting tool industry. â&#x2013; Moshe Goldberg

he growing number of challenges within the manufacturing industry and the ongoing developments in the field of material science has always provided an opportunity for engineers to take technology forward. The emergence of new materials and their associated machining deficiencies have continuously inspired the evolution of new cutting tool materials, new coating classifications and designed geometries, with an aim to provide competent machinability solutions. EM KOMPENDIUM | 2014

Titanium, Inconel and other high temperature alloy industrial applications have gone through a rapid evolution over the years, though machining these materials has always presented a difficult task on the shop floor. In the aerospace industry, a growth in popularity of these materials has been evidenced in the form of turbine blades, compressor parts, struts and framing elements for aircrafts. Due to their useful properties and the associated benefits to the industry, the use of these materials has

Moshe Goldberg Manager, Marketing Training and Engineering ISCAR Ltd headquarter@iscar.co.il

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CUTTING TOOLS T E C H N O LO G Y The evolution of geometries and coatings applied on tungsten carbide inserts, and t heir re lation to volumes of Metal Removal Rate (Q)

expanded towards the automotive, medical, chemical, miniature and other industries. The same trend is observed at the automotive industry with the introduction of new grades of cast iron, namely Compacted Graphite Iron (CGI) and Austempered Ductile Cast Iron (ADI). The new grades exhibit remarkable mechanical properties, which are extremely useful for automotive parts such as crankshafts, camshaft and axial rods. These enhanced properties, however, are traded off with poor machinability performances. Various machining solutions have been formulated in the past few years, aiming to defy these machining constraints, by incorporating the employment of ceramics, Cubic Boron Nitride (CBN), and tough sub-micron substrates with exclusive coatings and defined geometries. Moreover, Iscar, being a key participant in the efforts of developing these types of advanced media, took the challenge one step further and added extra features such as unique geometries and chipbreakers, resulting in the generation of high quality surface finish, which can easily eliminate the grinding process.

Machining hard materials The process of machining hard materials always represented a challenge of selecting a cutting tool insert that facilitates a durable cutting edge and satisfyingly performs, even in tough cutting conditions. The hard materials group comprises hardened steel

and chilled cast iron, with hardness ranging from 55 to 68 HRc. These materials are in constant use by the automotive industry for bearing production and for machining of die and moulds. The difficulty of machining hard material varies, depending on the parameter of hardness combined with its depth (in case hardened applications) and the microstructure of the work material. A successful machining practice is also a condition of the component rigidity and geometry, combining with the lathe rigidity and its vibration damping characteristics. In the last two decades, there have been considerable developments in advanced cutting tool materials for applications such as interrupted cutting (milling, parting and drilling) and continuous cutting operations (turning and threading) for hard materials, employing ceramics, Cubic Boron Nitride (CBN), and tough sub-micron substrates with exclusive coatings and defined geometries. Moreover, advanced wiper technology has also been employed for generating high quality surface finish, which can easily eliminate the grinding process, a costly process associated with degrading the environment due to the use of coolant.

Other usages for machining hard materials If the hardness ranges between 50-68 HRc and the depth of hardness is greater than the depth of material to be removed,

then Cubic Boron Nitride (CBN) is the best medium for use. High CBN content inserts are recommended for high speed cutting of cast iron and interrupted/rough cutting of hardened steel. In contrast, the low CBN content are more appropriate for semi-finishing and finishing operations. Furthermore, the shape of the insert nose determines the surface finish achieved within the limits of machine and component rigidity. Ceramic grades, in comparison to CBN, have a high degree of hardness and low thermal conductivity, which allow the inserts to be used at faster cutting speeds with good tool life, even when machining hard materials. High hot-hardness combined with excellent chemical and thermal stability make the ceramic inserts suitable for machining difficult-to-cut materials, hardened steel and cast iron. Ceramic inserts composed from Al2O3 and TiCN are normally used in dry cutting, saving on costs involved in coolant purchase, handling and ecological disposal.

Machining titanium The limited heat conductivity of the titanium, during the cutting process generates considerable heat that remains at the vicinity of the cutting edge. This in turn causes a work hardening phenomenon that affects the surface integrity of the titanium and could lead to severe reduction in fatigue strength and geometrical inaccuracies EM KOMPENDIUM | 2014 | 2014 EM KOMPENDIUM

| 89 | These grades are available on ISO standard tools combined with unique chipformer designs. Milling titanium alloys and super alloys is recommended by using the IC907, a submicron substrate combined with a PVD TiAlN coating.

Multifunction tools for raising productivity

Super fast feed milling performing milling at up to 3.5 mm/tooth feed rate

of the part. In some extreme cases, the generated heat can cause ignition. The titaniumâ&#x20AC;&#x2122;s low modulus of elasticity also encourages deflection and vibration during heavy machining cuts. Furthermore, the titanium, by nature, tends to chemically interact with the cutting tool material, which in most cases results in accelerated cratering. The common types of tool wear for these materials are primarily recognised as flank wear, notching and built-up edge. The edge notching appears as a localised abrasive wear on both the flank and rake face, along the line corresponding with the depth of cut parameter. This wear is caused partially by the presence of a hardened layer that was previously formed by casting, forging, heat treating, or prior machining operations. Chemical reaction between the cutting tool material and the workpiece could also lead to a notching wear mechanism, where temperatures often exceed 800Â° C, inducing diffusion between the tool and the workpiece. In contrast, during the machining process, deposits of the work material tend to mount on the rake face of the insert. The high pressure developed in this area, normally contributes to the weld of these particles to the cutting edge, forming a built-up edge phenomenon. These particles, over successively short intervals, are inclined to be peeled off the cutting edge, pulling EM KOMPENDIUM | 2014 | 2014 EM KOMPENDIUM

some carbide content away from it, and consequently causing rapid tool wear.

Submicron solid carbide grades The solution for these machining deficiencies emerges from application of an adequate machining strategy. This strategy is comprised of the use of positive cutting geometries that ultimately minimise the cutting forces and heat generation, as well as minimising part deflections. A constant feed is also required in order to prevent any conditions of work hardening from being applied to the workpiece surface. Another important consideration when machining these materials is the copious use of coolants. The coolant preserves the thermal stability, preventing temperature buildup which could lead to subsurface irregularities or possible tool failure. Intensifying the coolant concentration or alternatively improving the coolant direction could be other useful measures, due to the fact that the coolant serves as a barrier between the tool and chip. Furthermore, altering the position of the lead angle and applying round insert geometries combined with a tough substrate, can also lead to a reduction of notch wear. IC907, IC3028, IC6025 are some grades that are specifically suitable for machining applications made of nickel based alloys, high temperature alloys and titanium.

Multifunction tools have always been preferred over the single function tools. The never-ending efforts to customise and design tools that will increase efficiency while providing accelerated metal removal have pushed multifunction tools into the forefront of metalworking technologies. The objectives behind the design of these tools are to shorten production lead times, to cut down the number of tools in the turret/magazine and to reduce the chip to chip time with as little turret movement as possible. One of the most popular tools in this category, the PICCO MF/MFT, is a single solid carbide tool capable of carrying out 7 different machining operations in a sequence, including drilling, face turning, internal chamfering, boring, internal profiling, external chamfering and external turning. These tools have been favourably adopted by the miniature and mass production industries, and thus created lots of demand.

Conclusion The development of new cutting tools, in terms of material compositions, grain size, geometries, edge preparations and coatings is directly influenced by the introduction of new types of materials into the market. The industry is constantly seeking for new materials, with improved mechanical properties in order to enhance the performances of its existing products or applications. The constant drive to adopt new materials by the industry encourages research engineers to develop competent machining solutions that could combat any deficiencies. That reciprocal action is therefore, responsible for all the latest innovations in the field of cutting tool technologies. For digital edition, visit:

â&#x2013;

> www.efficientmanufacturing.in

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M E TA L F O R M I N G T E C H N O L O G Y

A systematic tryout

Download the PDF file from www.efficientmanufacturing.in

An improvement in the effectiveness in tryout automatically increases competitiveness. This is hardly possible using today’s trial and error principle. Success is assured through a systematic approach, which is based on reliable simulation results that are evaluated in a well-thought out manner and lead to a considerably reduced number of correction loops. ■ Ajay Gupta

Ajay Gupta Application Engineer AutoForm Engineering India ajay.gupta@autoform.in

he fine tuning of a forming tool during tryout is a cost and time intensive step on the path to a functioning tool. Correction work and modifications are inevitable. Every correction loop saved therefore offers an immediate advantage in terms of both time and money. It is engineering, which among other things that is responsible for stamping simulation, and tryouts are separate operational departments in the tool shop in terms of not only different facilities but also the point in time of application during the development of a tool. When the release for milling of the tool is issued, engineering generally addresses new projects while

the tryout team is just getting to work. In fact, both departments actually look into the same questions: Where are the critical areas in the part, which measures resolve effectively and what happens to the other areas as a result?

Simulation-based tryout support For an effective tryout, both operational departments have to bundle activities together. Generally, the tryout team must carry out several correction loops on the tool until it can be used to produce a part in the quality required. Each of these correction loops cost time and money. EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

| 91 | Furthermore, the effectiveness of these correction measures is often only evident afterwards. This is where engineering applies simulation-based tryout support. All the theoretically possible correction measures, which can be taken in real tryout, are copied in a simulation model. Their calculation – a sensitivity analysis – takes place parallel to tool manufacturing. Before altering the tool, the results are available thereby allowing for the simulation-based tryout support. Should a problem arise in tryout, the cause can be identified on the computer. It becomes quickly and simply evident which measures have a positive influence on the forming result. The sensitivity analysis is based on the engineering department’s final simulation, through which the tool is produced. All of the required criteria with regard to material failure, wrinkling, etc., are thereby fulfilled. This simulation set-up is now extended. Correction measures, such as for example the modification of die radius, are defined in the form of scatter ranges. The originally planned 10mm die radius in the tool can thereby be assigned a value from 8 to 15 mm. In the same way, the positioning of the blank and the blank shape, as well as the restraining force and the binder force are variable. Numerous other correction measures, such as for example the position and size of holes for relief can also be considered. Moreover, company-specific adjustments to standard correction measures are also possible. The simulation for tryout support is carried out based on all this input.

An example of tryout support Should a problem arise in tryout, engineering refers to previously calculated simulation results in AutoForm-Sigma. The software provides support for users in determining suitable correction measures. By means of a tryout map, a concrete recommended action for the next correction loop is worked out and an action plan is developed. Should the tryout team, for example, identify two problem areas, a tear in the base of an embossment as well as a 23 per cent thinned spot in the wall which has a maximum stretch tolerance of 20 per cent, engineering examines these two areas more closely on the computer. EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

Examination of action plan

AutoForm-Sigma leads the user in logical steps through the analysis. A comparison of the sensitivities shows at a glance, which correction measures have no effect whatsoever and which measures offer a real chance of resolving the particular problem. Coloured circles in varying sizes show that the problem area can generally be influenced. The circle colour indicates whether a drawbead, for example, is to be increased or reduced. The larger the circle, the more effective the correction measure is. An action plan can then be quickly derived which in practice is often made up of a combination of correction measures. The correction measures are implemented in sequential steps, or according to the most efficient way to realise them. Before the action plan can be realised in steel and iron, it is recommended to check on the computer the effect each individual correction measure has on the entire part. Should, for example, a radius be made larger, in order to prevent a tear, wrinkles can quickly appear in other part areas. The correction measure applied resolves the original problem but at the same time creates a new one as a result. This makes a compromise necessary, which guarantees that neither wrinkles nor tears occur. By means of sliders, AutoForm-Sigma is able to progressively adjust the strength of each of the individual correction measures and simultaneously follows the effects on the entire part on the computer screen. The action plan is carried out on the tool only

when the appropriate adjustments have been determined.

The systematic way The procedure described along with the collaboration of operating departments ensures high process transparency and is the basis for systematic tool tryout. The effects of correction measures are first calculated on the computer. At the same time, company-specific standards are taken into consideration in the calculation of tool tryout. Should problems occur in tryout, counteractive measures can be quickly and easily identified. The sum of all the individual measures ultimately leads to an action plan. Finally, the examination of the planned correction measures guarantees that all the original faults have been eliminated and that no new ones have been created.

Conclusion With systematic tool tryout, the tool shop can successfully deal with complex part geometry, high-strength steel materials, tight deadline requirements for process engineering or tool manufacturing as well as high quality demands. One thing can be sure; tryout with system rather than trial and error saves time and money.

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AEROSPACE MACHINING T E C H N O LO G Y

Composite machining With the latest aircraft programmes dictating around 50 per cent composite material by weight, achieving competitive advantage in machining operations is becoming increasingly important.

he key to success in this area is the application of proven solutions to a wide range of challenges, which include the machining of both composite and composite/metallic stack materials using hand-held, power feed and fixed bed CNC machines. Innovative tool development, customised designs

and assured applications support, also have a vital role to play. This is where the combination of Precorpâ&#x20AC;&#x2122;s specialist technology and Sandvik Coromantâ&#x20AC;&#x2122;s tooling and Application Center expertise provide aerospace manufacturers with industry leading support for composite machining applications. Successfully

applied recent solutions include cemented carbide, diamond coated and PCD vein tools adapted for hole, edge and surface machining applications.

A helping hand Producing holes in CFRP using handEM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

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CoroDrill 452 range based on H10F uncoated carbide substrate offers great potential when drilling, reaming and countersinking CFRP

held machines is common practice in the aerospace sector. Aircraft structures such as the fuselage and wing spars are extremely large and it is often simply impractical to use a fixed bed machine tool. Tools for hand-held machines need special qualities to resist deflection and the presence of non-axial forces. Here the CoroDrill 452 range based on H10F uncoated carbide substrate offers great potential when drilling, reaming and countersinking CFRP, both unidirectional and woven types such as M21E and BMS8-276. The drills (CoroDrill 452.1-C), which are stocked as standard from 2.5 to 12.7 mm (other sizes made to order), offer low thrust force due to an innovative split point geometry design and smooth drill exit thanks to a left-hand helix on a righthand drill. Sharp cutting edges produce high quality holes offering tolerances of ±0.025mm using drill bushing. This can be improved further, to ±0.01mm, using the range of reamers (CoroDrill 452.R-C). The countersink tools (CoroDrill 452.C-C) offer a choice of 100° and 130° chamfer angles. When drilling composite/metallic stack materials a greater number of variables are introduced to the process due to presence of aluminium or titanium layers. But yet again, CoroDrill 452 can meet the challenge when using hand-held drilling machines. CoroDrill EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

CoroMill 390 is ideal for sculptured surfaces using sturtz milling techniques

452.1-CM utilises a double margin flute design and self-centring drill point to enable optimized accuracy. Both pilot and non-pilot versions are available depending on application and again, a low thrust force design reduces burr upon exit. Reamers (CoroDrill 452.R-CM) are also available for these operations. When drilling and reaming CFRP/aluminium stacks, cutting speed is typically around 60 m/min, although this should be reduced to around 15 m/min when producing holes in composite/titanium stack materials. A feed rate of 0.05 mm/rev can be maintained for both materials types.

Staying power Where possible, power feed drilling is preferred, to hand drilling as the drill is locked into a drill template that establishes both hole location and maintains the drill perpendicular to the workpiece. In addition, these units can be programmed to drill at a given speed and feed, and some offer peck cycles. Using power feed machines on CFRP materials, solutions such as the 85PT series PCD vein drill offers a shielded diamond design that is optimised for stable drilling processes. Available as made-to-order in diameters from 3-16 mm, through-coolant is also offered. Alternatively, 8F85 series drills (based on H10F or N20C, CVD diamond coated) feature a carbide drill point

that generates good hole exit quality in demanding unidirectional and woven CFRP. The eight-facet point geometry reduces common problems associated with these materials, such as splintering and delamination. Users can expect to achieve cutting speeds in the order of 60 m/min at feed rates of 0.06-0.15 mm/ rev, depending on application. When drilling composite/metallic stacks using power feed machines, 86PTA is recommended for CFRP/aluminium materials, while 86PTB is offered for CFRP/titanium stacks. Alternatively, the 40DH series (H10F or N20C) is a carbide tool with innovative flute design for optimised chip evacuation, while for improved roundness accuracy and stability in larger holes up to 25.4 mm diameter, PD – D2WM series (H10F or N20C) is recommended. Both PCD and carbide reamers can be made to order with flute design dependent upon material and application. Drilling and reaming CFRP aluminium stacks using power feed machines can typically be performed at 60 m/min with a feed rate of 0.13 mm/rev, however this should be reduced to around 18 m/min and 0.03 mm/rev when hole making in CFRP/titanium stacks.

In control Where drilling using CNC machine tools is possible, greater accuracy, security and

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AEROSPACE MACHINING T E C H N O LO G Y

CoroMill 390

productivity can generally be achieved due to enhanced machine dynamics and rigidity. The CoroDrill 859V vein PCD drill is designed purposely for the automated drilling of unidirectional CFRP materials such as M21E as well as epoxy and BMI resins. It has also demonstrated good performance on CFRPs with coatings such as fibre glass and copper. The unique double angle, sharp vein drill geometry helps improve quality and reduce delamination. Alternatively, the 85 series (N20C, H10F or CD10 PCD vein) are all-round drills with four-facet point geometry suitable for various CFRP materials such as BMS8276. It is available as carbide with diamond coating or vein PCD, in diameters from 3-16 mm. For unidirectional CFRP and composites with high epoxy resin content (including BMI resins), CoroDrill 856 (N20C) is recommended. Usually for CNC hole making process in composite/metallic stacks, CNC machine tools, 86A and 86B series (CD10) are the tools of choice for reduced burr and fibre breakout. Another option is the carbide 40DH series drills (N20C or H10F) – these offer stable tool life in high speed/ feed applications and offer excellent chip evacuation due to 40° helix.

Edging closer to perfection Cutting tools are put to the test when

CoroMill 329

edge milling CFRP materials. The heterogeneous combination of fibre and matrix resin means that a cutter encounters varying resistance due to the inter-layered hard abrasive fibres and softer resin, which puts stress on the tool drive mechanism. Furthermore, because the fibres are abrasive this can lead to rapid tool wear. The secret is having a range of tools offering different geometries and different grades to create applicationspecific solutions for edge milling. The CoroMill Plura S215 is one such range. CoroMill Plura S215 offers different geometries, such as a compression helix design for thicker CFRP or when equal geometry is needed for both sides of the composite sheet. There is also a low helix design of +5° when the bottom surface is the most important and -5° when the top side is most important and downforces are critical. The tools come in different grades, such as 1610 and 1630 to maintain sharp edges, or N20C diamond coated for longer tool life but where ultrasharp edges are not top priority. There is also a PCD brazed version for long tool life and optimum surface finish. CoroMill Plura S215 cutters are made to order in diameters from 8-16 mm and with 2-8 flutes. For edge milling of CFRP when the machine spindle is not in line with the component (for larger cut-off operations)

then CoroMill 329 is preferred. This standard product comes in diameters of 100-160 mm and widths of 2-5 mm.

Surface advantages Surface machining of composites brings a new set of criteria. Here, finish, accuracy and high integrity of primary surface structures are highly important to aerospace manufacturers. Cutting tool solutions for flat and curved surface machining of CFRP is served by the CoroMill 590 light cutting indexable insert face mill. Available in diameters above 40 mm, CoroMill 590 inserts come in PCD and uncoated H10 grades with high precision tip seats for enhanced accuracy. Machine shops should also look at CoroMill 390 for sculptured surfaces using sturtz milling techniques. Sturtz milling can replace machining with ball end mills in many areas. This innovative machining method involves tilting the tool relative to the component surface to create an elliptical cutter path. The resulting shallow ellipse allows greater step-over to be used without exceeding the maximum permissible cusp height.

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Courtesy: Sandvik Coromant For digital edition, visit:

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EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

T E C H N O LO G Y RAPID PROTOT YPING

Direct digital manufacturing

With freedom of design, direct digital manufacturing opens the door to previously impossible design concepts, strategies and innovations. Those that embrace this freedom will realise improved sales, lower costs and greater efficiencies, which translate to profit improvements. â&#x2013; Scott Crump

irect digital manufacturing is a process that employs additive fabrication technology (aka rapid prototyping) to produce end-use items. Directly from CAD data, components are manufactured without moulding, casting or machining. The impact of direct digital manufacturing is far-reaching, and the opportunities and advantages are extensive. In this article, the discussion highlights direct digital manufacturingâ&#x20AC;&#x2122;s elimination of design constraints imposed by conventional processes. The freedom of design that it offers is so significant that many associate it with a paradigm shift.

Status quo Every product manufactured is constrained EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

by capabilities of the process used to make it. Designers and engineers are not free to create perfect products, subassemblies and components. Instead, they must adhere to the design rules of the manufacturing process. Any breach of these rules will drive up production costs, diminish quality, degrade performance or impact visual appeal. Balancing design and manufacturability suppresses innovation and quashes great ideas. Product design is a collaborative effort that requires design concessions. Negotiations between design goals and manufacturing requirements consume much time and result in products that do not match the original vision and design intent. And while this collaboration is intended to improve quality and reduce costs, the process constraints can actually

Scott Crump CEO President & Director Stratasys joe.hiemenz@stratasys.com

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RAPID PROTOTYPING

T E C H N O LO G Y

cause the opposite effect by increasing the part count and number of operations. Seeking to align design and manufacturing, companies implement design for manufacturability (DFM) and design for assembly (DFA). Collectively DFMA (design for manufacturability and assembly) expresses the limitations and constraints of the manufacturing process. Combining the design vision with DFMA, the goal is to create parts that can be manufactured at a reasonable cost with acceptable quality. This practice requires that a manufacturing process be selected before design begins and that the constraints are addressed throughout the product’s design. It also dictates that designers have a keen understanding of all manufacturing processes used to make the company’s products. For example, DFM for injection moulded parts dictates that product design address tooling and process constraints, including: draft angles, parting line location, extraction (elimination of undercuts), constant wall thickness, aspect ratio, ejection and gating location, and radiused, filleted corners. There is also consideration of moulding constraints: knit lines, freeze off, sinks. While DFM defines the constraints, DFA promotes designs that are easily and affordably assembled. The key goals of DFA are minimising part count, fasteners and handling time while making assembly easy and error-proof. With DFA, significant improvements in cost, labour time and quality are achieved. However, like product design, DFA is constrained by the DFM guidelines for the manufacturing process. For instance, part consolidation may be unattainable because the resulting design cannot be manufactured. In light of the limitations of conventional manufacturing processes, DFMA is a critical methodology for improving product quality and reducing production costs. If designers and engineers were allowed to create parts solely for form, fit and function, inappropriate and unreasonable designs would negatively impact manufacturing processes and corporate profits. Adhering to the constraints and limiting design freedoms are necessary for conventional manufacturing processes.

Freedom of design Direct digital manufacturing eliminates all of the design constraints imposed by conventional manufacturing methods. It offers designers and engineers an unprecedented freedom to design a product and its components exclusively for the desired form, fit and function. Breaking the link between complexity and cost, innovative and sophisticated designs are released from DFM constraints. In effect, whatever the mind can conceive can now be manufactured practically and affordably. Leveraging the additive, layer-by-layer construction method and eliminating tooling, machining, moulding, casting and fabrication, direct digital manufacturing offers unprecedented freedom of design. Undercuts, variable wall thickness and deep channels can be part of the design with no effect on manufacturing cost or manufacturability. With conventional methods, each feature on a part adds time and cost, but with direct digital manufacturing, parts can be feature-laden without an increase in either. For example, a part with a thousand 0.05 inch holes can be produced as cheaply and quickly as the same part without holes. Parts can also assume previously unthinkable forms. They can flow, twist and contort into every nook and cranny in the design envelope or borrow from the organic shapes found in nature. Allowing limitless complexity, direct digital manufactured parts can be designed with extraordinary strength-to-weight ratios. This could be achieved by designing an internal lattice that is covered by solid outer surfaces. With few exceptions, direct digital manufacturing can replicate whatever is designed in 3D CAD. The freedom of design also diminishes the time from design to manufacturing. Since there is no tooling or machining, there is no investment of time in modifying a part for manufacturability or designing the necessary tooling, fixtures and tool paths. Eliminating DFM constraints also take DFA to new levels. No longer limited by the process, direct digital manufacturing allows complete assemblies, both staticand dynamic, to be constructed as a single part.

The air vent, constructed as a one-piece assembly, illustrates rapid manufacturing’s ability to consolidate parts

This degree of part consolidation eliminates assembly time, expense and errors while drastically reducing manufacturing costs and inventory part counts. For instance, an automobile air vent is assembled from many components, including the main housing, louvers and flow control mechanism. With direct digital manufacturing, the entire assembly can be produced as one piece, which eliminates all cost, time and quality problems that result from an assembly operation. Direct digital manufacturing will excel when parts are designed to capitalise on the capabilities of the technologies. The gains of the process will be marginal if existing parts are merely transitioned to direct digital manufacturing. The first, and easiest, step in this conversion is to unlearn all that has been taught about designing for conventional processes. The second step, which will yield tremendous benefits, will require new education. Perhaps it will be called DFDDM (design for direct digital manufacturing). Of course, direct digital manufacturing is not without limitations and considerations. DFDDM studies will also address aspects that are unique to direct digital manufacturing, and those that are unique to specific technologies. Support structures, stairstepping, surface finish and minimum wall thickness must be considered in acomponent’s design. An understanding of achievable accuracies and resultant mechanical, thermal and electrical properties — two aspects that are believed to be the biggestconstraints of direct digital manufacturing—will also be required. However, DFDDM will address design alternatives that overcome these limitations. For example, a multi-piece assembly with tight tolerances for its EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

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Throughput and efficiency

The caged ball illustrates that what was once impractical or impossible can be economically produced with rapid manufacturing

components can be consolidated into a single piece that has only loose tolerances at its attachment points. Two other barriers to direct digital manufacturing that require a new way of thinking are unit cost and production time. Using traditional thinking for process justification may dissuade the use of direct digital manufacturing where production time may be measured in hours, not minutes, and cost measured in dollars, not pennies. To understand all of the benefits and impact on an organisation, and to see the true justification, the full scope of the effects of direct digital manufacturing must be considered.

Return-on-investment As with the freedom to redesign, the value of the freedom of design is immeasurable. It goes well beyond the standard accounting metrics that justify anactivity or demonstrate a positive ROI (returnon-investment). This is because it delivers benefits that are difficult to measure, and it facilitates new business practices that benefit the company, its products and many design and manufacturing processes. However, even if evaluating only the measurable, tangible financial gains, the impact on the bottomline can be staggering. There is adirect effect on profitability that results from: Cost savings from the elimination of redesign for manufacturability, design of tooling and programming Expense reduction from decreased inventory levels and assembly operations due to part consolidation Decrease in time-to-market from the elimination of DFM and manufacturing programming

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On the manufacturing floor, the production process is a choreographed sequence of individual processes. Each step adds time and introduces complications. Since direct digital manufacturing can eliminate assembly through part consolidation and minimise secondary operations by incorporating all features in the part, the freedom of design can increase throughput and efficiency. This translates to faster production rates and lower costs. As illustrated in Eliyahu Goldratt’s “The Goal,” the production rate of a single operation will be the gating factor for a plant’s throughput. The bottleneck operation controls the throughput rate of all upstream and downstream processes. If, for example, a part is injection moulded at a rate of 90 units per minute and an ultrasonic welding operation has a rate of 10 units per hour, the effective throughput rate is only 10 units an hour. Unless excess work-in-progress inventory is desired, this means that the injection moulding process will be idle for seven hours of an eight-hour shift. In those cases where the freedom of design eliminates all downstream operations, the direct digital manufacturing machine can be run 24 hours a day because it is the only gating factor. As Goldratt notes, the bottleneck operation will vary from day-to-day and hour-to-hour. Downtime in any operation, due to equipment problems or part shortages, will have a ripple effect on the effective throughput rate. With each operation, there is also the increased possibility of creating scrap, which drives up costs. Managing this dynamicworkflow is challenging and balancing the work load at each process is difficult. When the design eliminates secondary operations and consolidates parts, the manufacturing flow is streamlined, which makes it easier to manage and much more efficient. With direct digital manufacturing, throughput and efficiencies can increase and production costs can fall.

Product enhancement It is impossible to place a dollar amount on the value derived from the ability to design products, assemblies and parts solely for

the purpose of form, fit and function. To do so would be akin to estimating the value of creativity or innovation. However, it is implicitly understood that better products translate to greater financial gain for a company. How many great ideas have been shelved because they were impossible or impractical to produce? If these ideas had become a reality, what would the impact be? These are no longer valid questions if the direct digital manufacturing process has been implemented. The new question that will arise is “what can we do now?” What potential it will have if the best attributes of various manufacturing processes can be combined? For example, imagine combining blow moulding’s ability to make hollow parts with injection moulding’s ability to make strengthening ribs. Imagine combining the capabilities of investment casting with those of die casting to achieve parts with freeform passages, fine features and thin walls. These thoughts become the new “what ifs” that direct digital manufacturing introduces. As the “what ifs” are asked and answered, product enhancement will naturally occur. The next generation of products can even capitalise and improve on structures found in nature. Due toarches at each end, the egg has great longitudinal strength. With the freedom of design, the outer structure of the egg can be combined with an internal lattice to give a product impressive longitudinal and latitudinal strength. Likewise, the inherent strength of a honeycomb can be contained within solid, bounding surfaces.

Conclusion Direct digital manufacturing can be justified solely on the freedom of design. However, there are many other advantages that the process offers. Direct digital manufacturing will be the next industrial revolution. With it, as with any revolution, there will be a total upheaval, a radical change and an overthrow of existing practices. Direct digital manufacturing will infiltrate all processes and every discipline within a company. It will change how manufacturing is done.

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MACHINING

T E C H N O LO G Y

Moulding challenges and opportunities into success Success formula for any technological development lies in the way a product fills the gap in the market, the accuracy in timing of launching and the quality of the product. It’s the tool room function here that plays a major role in deciding the quality and accuracy of the products.

■ Yogesh Hingane

Yogesh Hingane Product Manager, Mould & Die Seco Tools yogesh.hingane@secotools.com

he major challenge that faces the die & mould machining process is to manufacture the same with the least time without compromising on quality. Roughly, 30 per cent of machining time goes in rough machining and the balance 70 per cent into finish machining. Selecting the right machining strategy will be a key to achieve this target. The main deciding factors considered, while choosing the machining strategies are machine tool that are used to make die/mould, CAM software which defines the cutter path, die material, size of the die/mould and machining accuracies as per specifications. The process of selecting the appropriate machining strategy has three dimensions to it, which can be explained with a day-to-day practical example. If we want to travel from place A to place B in certain time frame, at first, the best route among all routes needs to be selected. This can be related to geometrical strategy then the best mode of transportation.

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This can be related to technological strategy. lastly, the speed at which the vehicle can travel on the selected route and this can be related to cutting parameters. Similarly, selections are done according to the sequence mentioned above. Geometrical strategy: Linear & non linear milling; circular/helical milling/ trochoidal milling/5-axis milling; radial & axial machining Technological strategy (tool features): High-speed machining Cutting parameters: Cutting speed/ feed/depth of cut, etc.

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General machining In the general machining strategy, depth of cut ratio, ae-ap ratio can vary depending on the operation. Rules for the same are: machine requirements: there are no special machine requirements needed. With basic CNC technology, difficult advanced EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

| 99 | machining methods are not possible. Average results will be reached on metal removal rate Q (cm3/min). The application area usually includes small batch sizes and a wide range of materials. Tool characteristics: tools have relatively long cutting lengths or bigger inserts and thin core diameters. There are no high requirements on the tolerances.

Micro machining This is a machining strategy where extremely small tool diameters are used. The machine requirements include high spindle accuracy, high RPM, CNC, thermal stability against spindle growth. The application area would be production of cavities like slots, pockets, holes or engravings in many types of material and the tool characteristics would consist of diameter range Ø 0.1 to 2.0 mm, small cutting lengths, a wide range of OD reductions, high accuracy, coating.

High performance machining High performance machining (HPM) is a machining strategy where very high metal removal rates can be achieved where radial depth of cut can be upto the diameter of the cutter ae – 100% & axial depth of cut can go upto 1 or 1.5 times of the diameter of the cutter ap – 1 to 1.5D, depending on the workpiece material. With HPM, one can achieve an extremely high metal removal rate by using a much higher chip load than in general machining. One’s machine requirements would be high stability, high power requirements, CNC control, rigid clamping system. The application area here is: operations in a mass production environment where production time / lead time is of great importance or on single products where a high metal removal rate Q (cm3/min) is required. The tool characteristics would enlist specially developed chip formers in the flute of the tool, tip protection with a small 450 face or corner radius, special smooth formed chip space and coating, with or without Weldon shank.

High-speed machining In high-speed machining (HSM) strategy, high cutting speed and table feeds are EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

Highfeed2 has a number of productivityincreasing features

used, but radial depth of cut will be less. Depending on the method a high metal removal and a good Ra value can be reached. Typical cutting behaviours for this strategy are low cutting forces, less heat build up in tool and workpiece, less burr formation and high dimensional accuracy on the workpiece. With HSM, one can achieve high metal removal rate and/or surface finish by using a much higher cutting speed compared to general machining. Machining requirements for this include quick CNC control, high RPM, quick transmission to the axis. The application areas are the mould & die industry on pre-finishing and finishing operations in hardened steel (48-62 HRc) in a short lead time. This technique can also be applied in most other materials when using the right tool and advanced machining method. Tool characteristics would include stable, (thick core diameter and a short cutting length) clear and well formed chip space for good chip evacuation, coating. This has the lowest runout.

High feed machining (HFM) Its a machining strategy where high feed rates can be reached with full tool diameter (ae) in engagement in combination with a small ap. Machine requirements here would include good stability, CNC, possibility for high table feed (vf). The application area is from soft to hardened steel, titanium and stainless steel and it is very good as a pre-operation before HSM is used. It can also be applied in deep pocket machining. Tool characteristics here include specially developed front teeth, very short cutting length and coating.

Minimaster Plus allows for shank lengths up to eight times the insert diameter

Tool characteristics for HFM HFM is especially suitable for roughing, high-feed machining, which began to develop about a decade ago. Few cutting tool companies were able to support this machining strategy. Seco was among the first tool manufacturers to catch on this trend. With high feed-per-tooth values and small cutting depths, the method offers high material removal rates with low cutting (feed) forces. The feed-pertooth value may be up to one millimetre per tooth with this method, compared to a value of 0.2 in conventional machining. The big advantage of this technology is that it is very user friendly, easy, safe and quick to program in CAM. By using the so called Z-levelling strategy, it is relatively easy to program complex forms without the necessity of having extensive experience in programming.

Summary Selecting the right machining strategy will be the key for moulding challenges and opportunities into success. However, there is no fixed thumb rule for strategy selection. Each strategy needs to be simulated and adapted by considering the tool characteristics and constraining factors like machine tool, CAM software, die material, size of the die/mould and machining accuracies. The correct understanding of various strategies and required tool characteristics will make the selection easier.

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DIE & MOULD

T E C H N O LO G Y

Manufacturing software solutions One critical component of working with the die & mould industry is the requirement of manufacturing quality tooling as quickly and efficiently as possible, while working with differing data from various customers. â&#x2013; Jeff Jaje

E Jeff Jaje Marketing & Business Development Manager Sescoi USA jeffj@sescoi.com

ventually, designs from a CAD system go into some form of manufacturing. For mass produced parts, this usually involves manufacturing tooling that is actually used to create the final needed part. This tooling can be quite wide ranging, from moulds that create a small plastic piece of a toy, or large pieces like the front fascia of a car to dies that may make simple stampings for a computer case, to complex hoods and fenders of automobiles. Plastic pieces from moulds and metal stampings

from dies are used in a huge percentage of assembled products. Tooling for the mould & die industry is often lumped together as one market segment, because there are many requirements that are shared between the two. Some of the key functionalities that are necessary to be as efficient as possible in tooling, with high quality are:

CAD for manufacturing Although many CAD systems have EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

| 101 | excellent design functionality, it sometimes lacks functions useful to manufacturing tooling. This can encompass more functions that are generic like filling holes or creating die run off data or it might include more specific CAD for manufacturing functions such as core/ cavity separation or automatic electrode extraction. CAD functions specific to manufacturing can save a considerable amount of time by automating a task that can be done in just a few minutes which may take considerably longer, manually. Automatic electrode extraction is a key example of this. With a simple curve, an electrode can automatically be extracted, tangent extensions can automatically be created, and the electrode can be placed on a fixture or clamping system. While all of these tasks could be done manually, it may take 10-20 times longer to do it manually versus using an automatic CAD for manufacturing routine.

Dynamic stock model Since CNC machining is a subtractive process, all CNC operations start with a piece of material, referred to as the stock. Sometimes the stock starts out as a solid block or cylinder, other times it may be a casting, or a complex 3D shape. Depending on the application, some people scan the initial stock, off of a casting or tool to be repaired, as the initial stock model. Utilising a digital version of the stock model allows for the CAM system to work as close to real life as possible. CAM systems that do not utilise a stock model for calculating machining operations are working only with theoretical milling conditions, and can be prone to errors or complications. One time saving and practical use of stock models is when milling multiple details of a stamping die. Often, each detail has its own stock size, yet a productive programmer will mill several of them together on some form of pallet. It is important to be able to handle a variety of initial stock conditions so that the roughing cutterpaths can be as efficiently as possible.

CAD functions for manufacturing streamline efficiency, such as electrode extraction

dynamic and static. Dynamic stock models allow the CAM software to work with the condition of the material during cutterpath calculations, just as if it were watching the machine mill the part every second. Static stock models allow the CAM system to know the condition of stock only at the beginning and end of a calculation, but not during. Advantages of utilising a dynamic stock model are: Safety: Since the condition of stock is known during all phases of roughing, it can create the most reliable cutterpaths that are safest on the cutter, without dangerous potential movements from systems that do not know the dynamic stock condition. Efficiency: Since the condition of stock is known at all times, where material exists, and where material has already been removed, the roughing clean out passes can maximise efficiency with little wasted movement of theoretical movements. Productivity: Automatic remachining cutterpaths based on the actual stock condition, from careful programming with various cutters, rather than theoretical corners, will not only be more efficient, but provide the most accurate milling scenario.

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Stock models

Feature recognition

There can be two types of stock models,

Mould and die components often can have

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many different holes. These holes may be through, reamed, tapped or something else. Feature recognition software allows for the fastest programming of holes in a part. Previous methods of drilling holes involved finding the centers, depths and creating a drilling or some type of canned cycle command. This task becomes tedious when there are many holes, and can become difficult when the holes are at various angles. Automatic feature recognition not only programs the holes based on the CAD design automatically faster than manually, but also the process eliminates many of the common human errors when performing hole operations. Again, the dynamic stock model becomes important when performing hole operations, as many people prefer to drill their holes, before milling the 3D shapes of the part. Thus, the hole needs to start and consider different heights when compared to the CAD design.

Efficient and automatic cutterpaths Design for aesthetics is becoming more and more common. Many 3D parts are designed for a commercial aesthetic property, rather than for a strictly functional reason. It has been observed that these shapes can sometimes become quite complex. When working with tooling, one often is milling hard materials, sometimes with a lot of steep slopes and complex 3D shapes. It is important to

DIE & MOULD

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T E C H N O LO G Y

Continuous finishing is suitable for high-speed mills. It takes a top down milling approach, including a Z-level component, suitable for hard materials

have a plethora of quality cutterpaths available for any shape. These cutterpath styles need to work equally well and just as easily in 3+2 axis machining as they do in 3 axis. Some cutterpaths which can make one more productive include: slope-based machining – utilising a Z-Level strategy, especially on hard materials, for less tool deflections, and an automatic option for machining the remainder of the part constant scallop machining – advanced cutterpaths can utilise a 3D stepover, such that the cutter load and cusp leftover remain constant. These types of cutterpaths are often ideal for high-speed milling machines. continuous finishing – this cutterpath combines the best of slope based machining and constant scallop to allow for high-speed machining in a continuous motion, while maintaining a high surface finish. re-machining to a 3D stock model – re-machining is removing material leftover by larger tools. Sescoi’s WorkNC was an innovator in this technology. Re-machining algorithms should look at the stock model of actual remaining material, rather than theoretical corners many systems use. maximum segment length – this option allows for uniform point density and distribution on all parts, regardless of the curvature. This

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Utilise dynamic stock models to accurately represent the stock, even when milling multiple components simultaneously

provides better finishes and works best on high speed controllers.

entire part, with short tools, quickly, automatically and safely.

5-axis machining

Speed

Utilising 5-axis machining, if it is available, can increase overall efficiency and productivity. Some of the benefits of 5-axis machining are: reducing or eliminating electrode milling – with 5-axis machining, it may be possible to machine areas where one may otherwise have made use of an electrical discharge machining (EDM) process. This saves the time of milling several electrodes and the time spent in the EDM process. reducing polishing – often one can use 5-axis machining to use a shorter cutter to mill the same areas milled in a 3-axis or 3+2-axis strategy. Utilising shorter cutters allows for more tool rigidity, allowing for better finishes at faster feed rates. Complex or large tools can often have CNC files with thousands and millions of points. Without good 5-axis programming algorithms, a CAM system may not be able to efficiently perform 5-axis machining. WorkNC has a module named Auto-5 which converts a 3-axis or 3+2-axis cutterpaths into a full simultaneous 5-axis cutterpath, while automatically avoiding collisions between the tool, tool holder and the part. This allows for milling the

Many tools can get quite large. Think of stamping dies for large trucks, or moulds for big aerospace pieces or a bumper fascia. Although these parts can be very large, they often have small radii designed into them and often require a dozen or more different sized tools to completely finish the part - tools down to 3mm diameter or smaller. Data, for these tools can become quite large, as can the calculation times for those cutterpaths. It is necessary the CAM system works in a 64 bit environment for these large parts. Also, since calculation time can be large, it is necessary that the CAM system utilises technology like multi-threading and parallel processing to reduce the calculation times as much as possible.

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Conclusion Machining tooling for moulds & dies is a rewarding career. CAM software products may contain functions to automate much of the machining, to make it as simple as possible in order to be efficient. Making use of these advanced functions will help to not only increase the productivity but also proficiency. For digital edition, visit:

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EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

T E C H N O LO G Y

INDUSTRIAL MAINTENANCE

Turning asset management into profit-centre

One of the most popular buzz-words in business today is ‘lean’. This article provides concrete suggestions and identifies specific areas within the maintenance process where companies and enterprises can reduce waste, increase reliability, and view the maintenance effort as an integral part of a lean business posture. ■ Souma Das

hen one discusses ways to improve maintenance practices, inevitably the discussion splits into compartmentalised topics. Parts inventory, preventive maintenance scheduling, trade and skill management, tool costs, breakdown management, and the like tend to dominate small parcels of the discussion. Top-down, bottom-up, sideways – the maintenance process requires much more than a single approach. An energetic, effective enterprise recognises the connectivity of issues that affect maintenance efficiency and ultimate success and include a broad spectrum of EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

solutions. In addition, effective leanness in maintenance – like all other areas of the enterprise – requires continuous review, evaluation, and improvement because a static maintenance process is one that is gathering new forms of waste and inefficiency.

Finding maintenance success factors When attempting to accomplish the goal of ‘getting lean’ in the maintenance arena, a company must gather all stakeholders together and open up an evaluation process that covers all aspects of maintenance.

Souma Das Former VP, Sales and MD, India Infor Global Solutions souma.das@infor.com

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INDUSTRIAL MAINTENANCE T E C H N O LO G Y

An energetic, effective enterprise recognises the connectivity of issues that affect maintenance efficiency and ultimate success and include a broad spectrum of solutions

This includes bringing in customers of the maintenance process – the assemblers, parts storeroom managers, shipping foremen, and even product designers and engineers. This is because each of these groups sees a different aspect of the maintenance picture. This may sound like a gathering of hundreds but not quite. Meetings of affected personnel should remain of manageable size while still gathering pertinent input. Discussion should be open and controlled – managed by a flexible moderator well versed in all aspects of the group. The general agenda for the discussions should be published well in advance so that participants come prepared rather than simply showing up for a free-for-all chat session. White boards and flip charts are musts – so that ideas can be recorded in clear view of participants. The overriding aim is to identify problems and suggest solutions.

Factors for success Note that, upper management participation is required here. Without upper management buy-in, the effort of organising for leanness is doomed to fail. In fact, Dr W Edwards Deming and Dr James Womack, Founder, The Lean Enterprise Institute go so far as to identify management as the number one barrier to successful process revision. Too often management lives in its own world – the world of quarterly performance, quickfix, and top-down directive that is not supported by an intimate knowledge of the in-the trenches processes upon which they depend. This isolates management from

Without energetic management participation in the ‘leaning’ of maintenance processes, improving the maintenance process becomes an up-hill battle

the core of the business and that is a recipe for failure. Without energetic management participation in the ‘leaning’ of maintenance processes, improving the maintenance process becomes an up-hill battle. Needless to say, successful meetings reveal weaknesses in processes. The most successful meetings also find viable remedies for weaknesses – and find ways of improving numerous processes whether they were identified as ‘weaknesses’ or not. With the full support of all levels of management, the results of these meetings can be organised into an overarching improvement plan and published to all stakeholders. In addition to setting directions, such publication provides invaluable feedback to participants – recognising and reinforcing their valuable contributions to the improvement process. Often this is the difference between blind following of orders and the flexible, alert, agile commitment to a team-oriented goal.

Areas most affected Realise that there is no concrete list of improvements that can be provided in the blind to revamp a typical business. That is because there is no such thing as a ‘typical business’. Each enterprise has its own superlatives and laggards. Specific areas within the maintenance arena do, however, lend themselves to generally similar examination. Spare parts inventory management: Most parts storerooms contain a substantial number of excess or obsolete parts. Often these parts add up to a 6 or 7

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figure investment that languishes within the maintenance budget. An enterprise must optimise its parts inventory so that parts are available for preventive and corrective maintenance without gathering dust worthlessly on shelves and in storage areas. Such optimisation requires communication between storeroom managers, purchasers, and maintenance personnel (foremen and technicians). Discussions center on parts usage, maintenance routines, anticipated demands, and historical usage data. In a multi-site enterprise, the discussion must include options to centralise expensive, critical, and seldom-used items. Although this is a parts issue, stakeholders must be open to suggestions for altering maintenance operations scheduling to permit more control and less waste in the parts inventory management regimen. Preventive maintenance management: A quality preventive maintenance program is the cornerstone of a quality maintenance program. For ages, the benchmark budget has been 90 per cent for PM activities and 10 for corrective/ breakdown maintenance. Anything less indicates urgent need for improvement because larger spending on corrective maintenance also means greater number of unplanned equipment shutdown, greater equipment wear, and lessened equipment useful life. In today’s stringently competitive business world, preventive maintenance must be further refined. Examine predictive EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

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maintenance, reliability-centered maintenance, and risk-based inspection management to tailor PM activities for critical assets. Use historical maintenance and breakdown data to facilitate this important tailoring. Cross-training personnel: Earlier it was emphasised that lean maintenance is a totality. This means that maintenance personnel must become more flexible in their skills. This does not mean a plumber must qualify as an electrician. It does mean that the plumber should become well versed in plumbing systems and potential associated problems in his/her areas of responsibility. The plumber learns about important switchboards, conduits, and power supplies; the electrician learns about important valves, piping, pumps, and reservoirs. The result: a much savvier workforce that is more prepared to recognise potential problems before those impede operations. Continuous improvement throughout the maintenance spectrum: Once lean methodology is initiated, all stakeholders must buy-in and contribute not just at the outset, when progress can be most visible, but as a part of daily routine. That is why cross-training personnel can provide the impetus for continued reduction in wasted time, effort, material, and production capacity. Continued upper-level management support and involvement is critical if only to apply on-going push toward greater successes in the leanness effort. Hand-in-hand with these improvements is refined purchasing methodology. Most storerooms employ computerised systems that govern parts ordering. Consider supplier consolidation within that scheme so that the power of volume purchasing can be brought to bear on supplier pricing. For multi-site enterprises, this can reap large rewards in the form of cost savings, better supplier service, and lower inventory holdings. In addition, facilitate much greater communication between line maintenance personnel and PM planners and managers to generate a flexible preventive maintenance program that is prepared to use any opportunity to accomplish

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Examine predictive maintenance, reliability-centered maintenance, and risk-based inspection management to tailor PM activities for critical assets

PM activities that may be coming due. Such opportunities include equipment breakdowns and equipment changeovers. By taking advantage of an unplanned shutdown, PM managers can save a planned shutdown, thus improving overall productivity. PM activities should be scheduled to coincide with equipment changeovers and other planned shutdowns when possible.

The role of technology Lean maintenance is not akin to acquisition of more and more technology. That is a conceptual error committed by far too many businesses in making huge investments in new equipment, software, and hardware, believing that they are solving problems by such purchases. Such a path is, of course, counterproductive to the lean model. That having been said, there is a need now to stress that technology does have a role in the progress toward greater leanness in the maintenance process. Recall grains of thought embedded in the above factors are affected by lean maintenance efforts. In each case, there is a need to call for the gathering of and analysis of data to support lean activities. Where does technology belong in this scheme? Nearly all successful business enterprises employ enterprise

asset management (EAM) software applications. Primarily these applications manage work assignment through various methods. Quality EAM offerings provide integration between the maintenance effort and spare parts inventory management. Excellent offerings include a variety of data requirements associated with maintenance activities so that each activity provides building-block information that leads to trend and event analysis. The very best EAM products integrate storeroom, repair, preventive maintenance planning, and purchasing functions with numerous additional lean-oriented technologies such as mobile connectivity, bar code technology, radio frequency identification (RFID) technology, and automated communications features such as email, pager, and operating screen notifications to key personnel. The inclusion of key performance measurements is a must to ensure that leanness goals are being accomplished. Businesses should also look for a separate analytical capability that is incorporated within the EAM umbrella. Clearly these capabilities contribute both to the streamlining of the maintenance work process and to the gathering of critical performance, cost, and productivity information. A business should seek technology only as it contributes to these corporate goals.

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SHEET METAL WORKING T E C H N O LO G Y

Trends in new & advanced materials

New materials, in the last couple of decades, have functioned as drivers of innovative processes and technologies overcoming the traditional barriers/ limitations of ‘conventional’ processes. Today, one is able to design and develop materials to suit a design brief, and develop technologies to process these innovative formulations. A look at how materials have advanced over the ages…

■ Prof P P Date

Prof P P Date Department of Mechanical Engineering IIT Mumbai, Powai ppdate@iitb.ac.in

heet metal as a form of raw material finds ever-expanding avenues of application. Products functioning in diverse service conditions place stringent demands on the quality of the material. To add to the often exacting service requirements, manufacturability is strongly dependent on the material characteristics. Sectors of industries using sheet metal in large volumes includes the transportation sector (vehicle manufacturing, in particular), electrical and electronics, white and brown goods, furniture, utensils, and heat exchangers, to name a few. The transportation sector itself includes ground and airborne vehicles, i.e. automobiles, coaches, wagons, containers, ships and aircraft. Properties of sheet metal interact with the forming variables. Not surprisingly, the transportation sector deploys the widest variety of manufacturing technologies and

faces a wide variety of quality related issues. This places demands on the material and manufacturing processes, which includes tools, machine tools and processing parameters like lubrication, blank holding force (as in deep drawing), etc. Hence, formability of sheet metal defines its processing and its final application. Developments in new technologies and equipment have been driven by new developments and availability of advanced sheet metal.

Developments through the ages For instance, the need for fuel efficiency fuelled research on light weight structuring of the autobody which in turn led to many varieties of steel being developed - bake hardening (BH) steel, interstitial free (IF), dual phase (DP), complex phase (CP), EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

transformation induced plasticity (TRIP), high strength low alloy (HSLA), to name a few. Where affordability by the consumer is not an issue, warm formed magnesium products which are lighter than those made by aluminium, are used. Use of high strength steels enabled the use of thinner sheet (and hence a lighter product) and enhanced dent resistance of an autobody. A high yield strength and lower thickness both favour springback. Besides, it became difficult to obtain fine details requiring sharp bend radii to be produced onto such sheets. Product design considerations to suit these new developments evolved and new technologies including springback compensation on tools were developed to deal with the menace of increased springback. New technologies were born to form the not-so-formable materials, with a view to reducing the overall material input, shaping of sheets with high strength (and lower formability) into complex shapes and reducing springback. For instance, variable blank holding technology (using segmented blank holder, for example) was developed to control the flow of material into dies for product shapes requiring different magnitudes of blank holding force at different locations. At every location, one can also vary the blank holder force with stroke (time). Hydroforming, which shapes the blanks into parts, was developed so as to obtain a more uniform strain distribution and hence a lower material input. This process virtually eliminates friction between the tool and the workpiece thereby eliminating the inhomogeneities in strain distribution arising out of friction. With spatially more uniform thinning of the deforming workpiece, the need to start with a thicker raw material (to obtain the desired minimum specified thickness in the formed product) was dispensed with, thereby contributing to weight reduction. Forms of raw material that could be used with hydroforming were sheets and tubes. Tailor welded blanks/ tubes (TWBs/TWTs), wherein the entire blank could be constructed out of welded blanks of different thicknesses and/or different materials further reduced the material input. The TWBs/TWTs were constructed such that thinner material was used in regions where less severe service conditions would be expected. Weldability EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

of the raw material together with advanced technology of welding, viz. laser welding, enabled the use of TWBs and TWTs together with hydroforming to enhance the weight reduction. Laser welding, despite being a thermally inefficient process, gives the smallest heat affected zone (HAZ) and large welding speeds. Such a process requires edges to be cut square and those to be welded fixtured to ensure a zero gap between them.

Welding Design of the contour of welding in a tailored blank is crucial. The weld must not occur in regions subjected to severe deformation. Welds can be avoided by rolling sheets to two different thicknesses (tailor rolled sheet metal - TRS) and blanks prepared from these. The TRBs would have a continuous grain flow and would be stronger than the TWBs, which are made from discontinuous entities. In either case, wide differences in sheet thicknesses (or widely differing strengths if different materials of the same thickness are welded) must be avoided. Large differences in the load bearing capabilities of the two sheets causes the weaker of the two to deform far too much (risking failure) thereby defeating the purpose of using a TWB/TWT.

High strength materials Apart from weight reduction, dent resistance is another desirable property of the material used in sheet metal products. Sheets strong enough to resist getting dented by normal forces/impact loads in service, handling, etc. and is therefore necessary. High strength materials like the DP, HSLA steels etc. create difficulties during in forming although their strength would be an advantage in service. A material like the BH steel that is soft while forming and hard in service therefore suits the needs of applications where dent resistance is important. A BH steel acquires the strength desired in service during the paint baking process, so that no additional effort is required to strengthen the material. If a high strength steel is deformed under hot conditions, and then cooled fast so as to impart hardness required in service, many of the drawbacks of such materials can be successfully overcome. For this, the sheet

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The new titanium-based material features a foamlike structure

must be heat treatable, and Boron steels have been formulated for such applications. The press is equipped with means to control the cooling rate of the product formed in the dies. Such hot forming presses have been developed. Also, there are softwares to simulate the process of cooling and hardening due to formation of martensitic structure to finally optimise the cooling rate made available to perform ‘press hardening’, which is synonymous with the above.

The road ahead In other words, the human desire to travel faster, and yet consume less fuel, pollute the environment less threw open a challenge to vehicle manufacturers to make the vehicle bodies lighter and engines more efficient, emitting less Nox, less greenhouse gases, and less NVH (noise, vibration and harshness). This further led to development of new materials, new processes and technologies to turn them into usable products, and new equipment to facilitate what was not possible to date. Innovations in materials for engines, alternate fuels (again materials in liquid form), efficient combustion, and plastics to absorb vibrations and ensure passenger safety have made matching contributions to make travel on the roads faster, safer and less polluting. Composites, which combine strengths of several materials, seem to be the material of the near future. Yet, sheet metal, which has a unique place as materials for manufacture, by virtue of their availability, manufacturability, reparability, durability and affordability face no threat whatsoever in decades to come.

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HIGHď&#x161;şSPEED MACHINING T E C H N O LO G Y

Aiding high-speed machining

It is a known fact that better finish is available with high-speed machined parts. However, this depends upon the material to be machined and how suitable it is with high-speed machining (HSM). Nevertheless, it can be safely conjectured that the materials that do suit HSM, tend to reduce machining cost by eliminating a separate finishing step. â&#x2013; M A K Babi

M A K Babi CEO Faleez Tech maxbabi@gmail.com

igh-speed machining is mostly needed in applications where one needs to cut down on time. Soft materials like many non-ferrous metals and alloys (aluminium, copper, brass, etc) suit HSM better than hard materials like cast iron or high alloy steels - where the chances of tool damage by excessive wear or accidental galling (overheating leading to cutting tool getting welded with the workpiece) would prevent HSM. Some tough materials like stainless steels that tend to produce elongated fibre-like shreds rather than the quickly breaking chips, also are not suited to HSM. In the cutting tool industry, modern cutting applications cannot be accomplished

without protecting the tools with a thin wear-resistant, diffusion barrier coating. These applications include high-speed cutting, hard machining of high hardness (>60 HRc) materials, dry cutting and cutting of materials such as Titanium, AlSi alloys or other nonferrous materials. They enhance wear resistance and hardness at the cutting edge and reduce diffusion and friction. Other applications include high toughness as in punching and piercing operations.

Current and future applications Advanced coatings for tooling have increased productivity during machining EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

| 109 | several-fold over the past decade. Modern PVD multilayer coatings for high performance cutting tools permit dry machining (without use of cutting fluids or lubricants) without reducing productivity. It was found long ago, that the nitrides of the group 4 transition metals (titanium, aluminium, etc) could readily be formed using PVD systems fitted with high efficiency ionisation sources and that these compounds demonstrated very high hardness combined with low coefficient of friction. These coatings applied to highspeed steel cutting tools produced dramatic reductions in tool wear and enabled plant to be run at much higher rates of production than had hitherto been possible while also providing an improved quality of finish on the product.

Technological upgradation During the past 10 years, the technology has developed rapidly with a wide range of new coating products being introduced into the market. The properties of coatings are better understood and compositions and microstructures can be tailored to particular applications resulting in further significant tooling budget savings for manufacturers. Coatings containing TiAlN, for example, offer high temperature oxidation resistance and can be used to coat tooling used in dry, or coolant-free machining. The resultant environmental benefits are a major driving force towards this technology. Hybrid systems in which arc evaporators are combined with sputter sources permit fabrication of multilayer coating systems. Therefore, with plants of this kind, it is possible to first apply hard coatings (eg: AlTiN) and then low-friction coatings (eg: a-C.H:Me) without interrupting the process. Users want higher-performance coatings that improve the dry machining process with hard steels at high cutting speeds. Sulzer Metco of Switzerland developed highperformance, micro-alloyed coatings, eg: the Mpower coating, that evidence thermal and mechanical resistances significantly greater than those of classic hard coatings.

Types of tool materials Following are the types of tool materials EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

used in HSM including coating materials: Ceramics - oxides, carbides, borides Hard PVD ceramic coatings – Single metal nitride PVD coatings eg: TiN, CrN, ZrN, etc. The first generation of hard PVD ceramic coatings were simple metal nitrides such as TiN, CrN and ZrN. These PVD coatings are still used extensively, however, their oxidation resistance is insufficient for applications such as high-speed machining. TiN, for example, oxidises and breaks down at 450 °C. Therefore, scientists and production engineers worked on improving the operating temperature range for applications such as high-speed machining and general high temperature wear protection. Alloyed elements improve oxidation resistance, eg: TiAlN The improvement in oxidation resistance was achieved by depositing other elements such as Cr, Al or Y at the same time as TiN. The addition of Al caused a stable aluminium oxide to form on the surface preventing further oxidation. Small levels of chromium increased the density of the oxide and yttrium tended to migrate to grain boundaries and prevented the substrate elements from diffusing up through the coating as the temperature rose. Development of superlattices Further developments increased the hardness and oxidation resistance of PVD coatings resulting in multilayers and superlattices. These are thin films formed by alternately depositing two different components resulting in a multi-layered structure. Multilayers are defined as superlattices when the period of the different layers is less than 100Å. Superlattice coatings of materials with similar crystal structures tend to form columnar crystals which extend through the whole coating, provided that the thickness of the individual lamellae is sufficiently thin, typically 5–25 nm. One of the first examples of superlattice coatings was obtained by combining TiN/VN and TiN/NbN. This type of multilayered coating structure can improve the hardness, corrosion resistance, oxidation resistance as well as the toughness, compared to single layers of the same materials.

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A metal forming die made with HSM

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Development of nanocomposite coatings: A nanocomposite coating consists of at least two distinct phases: a nanocrystalline phase and an amorphous phase, or two nanocrystalline phases. Tailor-made surface coatings: Cubic boron nitride (CBN), silicon nitride (SN), diamond (usually synthetic diamond in bulk form or diamond like coating as an engineered surface). DLC coatings are often used to prevent wear due to its excellent tribological properties. DLC is very resistant to abrasive and adhesive wear making it suitable for use in applications that experience extreme contact pressure, both in rolling and sliding contact. DLC is often used to prevent wear on razor blades and metal cutting tools, including lathe inserts and milling cutters. DLC is used in bearings, cams, cam followers, and shafts in the automobile industry. The coatings reduce wear during the ‘break-in’ period, where drive train components may be starved for lubrication. However, a word of caution is necessary here, because despite the favourable tribological properties of DLC it must be used with care on ferrous metals. If it is used at higher temperatures, the substrate or counter face may carburise, which could lead to loss of function due to a change in hardness. This phenomenon prevents the use of DLC coated machine tool on steel.

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AUTOMATION & ROBOTICS

T E C H N O LO G Y

Automation - a change enabler

In Indiaâ&#x20AC;&#x2122;s march toward cementing its position as a major contributor in shaping the global economy, key sectors have been projected to witness significant growth over the next 4 to 8 years. Giving an overview, this article focuses on the evolving challenges in Indian industries and the need for sophisticated automation solutions.

ngineering costs offers key advantages to the Indian manufacturing sector. Increasing demand for electricity, consistent growth in automotive sales and exports, sustained interest towards hydrocarbon production, refining, and increasing investment towards augmenting metal production capacity, among others, stand out as shining examples of the underlying potential of the Indian economy. Image courtesy: Automatica

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lobal economic challenges such as the Eurozone crisis, along with domestic political upheavals have had an unfavourable impact on the Indian economy this year. However, the current economic situation in India can be perceived as a temporary phenomenon, especially because of increasing domestic demand across different sectors. The availability of skilled workforce and significantly low

engineering costs offers key advantages to the Indian manufacturing sector. Increasing demand for electricity, consistent growth in automotive sales and exports, sustained interest towards hydrocarbon production, refining, and increasing investment towards augmenting metal production capacity, among others, stand out as shining examples of the underlying potential of the Indian economy.

Power sector, followed by oil and gas, and chemicals are the largest contributors to the distributed control system (DCS) market; while, auto and auto ancillary sector is the single-largest consumer of programmable logic controllers (PLCs) in India. Original equipment manufacturers (OEMs) of machine tools, material handling, packaging, printing, and textile machinery are other leading users of PLC, due to growing demand for their EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

| 111 | equipment from various end-user industries. Increasing number of Food and Drug Administration (FDA) approved plants in India and the need for conformance to international regulations are driving the adoption of automation solutions in pharmaceutical sector, while emphasis on food safety regulations and increasing demand for higher quality food and beverage (F&B) products have resulted in greater demand for automation in the F&B industry.

Growth drivers for automation products Considering the significant investments planned in power, and oil and gas segments, there is an increasing demand for automation and control solutions in these sectors. India accounts for nearly four per cent of global power generation capacity and is the fifth largest in the world in terms of overall installed capacity. Power generation in India has grown at an average of five per cent in the last five years, which lags far behind the current demand for power in India. The automation and control solutions market, including distributed control systems (DCS), supervisory control and data acquisition (SCADA), human machine interface (HMI), and PLC, which was worth $680 Million in 2011, is expected to grow at an average growth of 14 per cent over the next 5 years. The power sector faces major challenges in transmission and distribution (T&D) and incurs huge losses due to lack of stateof-the-art infrastructure. One way to improve plant productivity and also reduce T&D losses is using advanced automation and control solutions. Increased transmission network, development of smart grids, and need for a reliable and efficient transmission network, will continue to boost demand for measurement and control systems. With obsolescence of old facilities and increasing new investments in power infrastructure, there is pertinent need for integrated automation and control systems to ensure enhanced operational efficiency at par with global standards.

Leading energy consumer market India, one of the leading energy consumers in the world, imports over 70 per cent of its oil and gas requirements. Though majority of crude requirements are met through imports, Indiaâ&#x20AC;&#x2122;s refining segment has definitely charted a success story. Indiaâ&#x20AC;&#x2122;s augmented refining capacity and ability to meet international standards is expected to elevate its status as a refining hub in Asia. The other key contributor from the oil and gas stable will be pipelines. There is significant demand for efficient pipeline infrastructure to cater to gas requirements of the Indian industry as well as consumers. Pipelines, when implemented as planned, will also create exciting opportunities for automation and control systems, which include PLC, SCADA, HMI, and other pipeline management solutions. Efficient automation and control systems ensure appropriate flow and pressure through the length of the pipeline and provide control through the Remote Terminal Unit (RTU). PLCs, SCADA systems, HMIs, and safety control systems such as surge controllers help in pipeline monitoring and management. Integrated SCADA and pipeline management suite is an evolving trend focused on enhancing pipeline efficiency and management. EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

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AUTOMATION & ROBOTICS

T E C H N O LO G Y

Current automation trends and evolving practices In wake of the economic crisis and continued pressure on profitability, end users are looking to invest in solutions which will help them increase their productivity by utilising minimal assets, in turn focussing on improving return on investment (ROI), increasing reliability, and efficiency. Efficient asset utilisation and effective management reflects in better profitability and any economic slowdown is definitely a time for consolidation and efficient use of assets. Access to process data in real-time is a key requirement driving business profitability for end users. Seamless interfacing between the plant and enterprise also enables agility and faster decision making.

Image courtesy: Siemens

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There is a pertinent need for integrated automation and control systems to ensure enhanced operational efficiency at par with global standards

Real-time performance management Service-oriented architecture (SOA) has enabled integration of diverse solutions including manufacturing execution systems, manufacturing intelligence as well as quality and compliance systems to address the need for real-time performance management and business/market centricity. The advent of cloud computing and virtualisation technologies has also enabled efficient process management, while reducing the IT footprint. The Indian industrial landscape has matured in the last decade. Many global companies are setting up manufacturing facilities in India and there has also been an increase in the number of Indian manufacturing firms acquiring companies worldwide. Standardisation of processes across plants located in different regions is key for accurate manufacturing intelligence. This is driving adoption of manufacturing IT solutions in India. Transition towards dynamic demand-based and frugal operations and ability to deliver best with least are some of the advantages of realtime performance management.

equipment, control and safety systems, and other productivity/optimisation solutions through open industry accepted standards. There is also a need for reduced installation and engineering costs, as well as optimised operations right from initiation. This need has resulted in solution providers focusing on delivering total integrated solution and services. Honeywell’s integrated control, safety and software offering under Experion PKS platform, ABB’s offering under System 800 X A platform, Invensys Operations Management’s InFusion, and Emerson Process Management’s PlantWeb architecture, are examples of integrated offerings. Focus on providing complete solution on a single platform has also enabled integration of the automation layer with the business layer. Integrated control system with energy management is expected to have significant impact on the control system market. The focus towards enhanced operational excellence, while ensuring efficient energy management, necessitates integration of process control and power management.

Automation silos to integrated control

Safe operations leading to increased bottom line

Varying process requirements and dynamic challenges create a need for end users to efficiently integrate plant

Despite various preventive measures, it is impossible to completely eliminate all problems that might arise in the process

threatening safety of personnel and infrastructure. Safety systems, therefore, become a critical and integral part of the operations of power, oil and gas, and petrochemicals industry, among others. The impetus given to safety has led to integrated control and safety system (ICSS) gaining in prominence across several end users. As an extension of the above concept, there is an evolving trend towards integrated control, safety and security systems, thereby covering all aspects of safety and security in the entire facility.

Conclusion In order to position our nation as a global manufacturing powerhouse and compete with large economies, the key focus for the industrial sector should be enhancing operational excellence. This urgency is compounded by the increasing pace of globalisation, which calls for manufacturing practices to follow standard processes. It is automation that plays a pivotal role in helping users address evolving challenges.

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Courtesy: Frost & Sullivan For digital edition, visit:

> www.efficientmanufacturing.in

EM KOMPENDIUM | 2014

T E C H N O LO G Y MATERIAL HANDLING

Exploiting the Indian market

Various industries especially manufacturing, mining and construction require heavy loads to be lifted from the ground or lowered. Material handling equipment like hoist and cranes have greatly reduced the human efforts and also brought down the process timing, thereby increasing the output.. â&#x2013; Tushar Mehendale

aving started as simple machines used to carry up and bring down materials, cranes and hoists have come a long way. These devices have become more sophisticated with time and are simplifying processes in manufacturing, mining, infrastructure, automotive and construction industries. With India pulling out all the stops in building world-class infrastructure, crane manufacturers are looking at exploiting the huge market potential this presents. Witnessing the EMKOMPENDIUM KOMPENDIUM| 2014 | 2014 EM

boom in the manufacturing sector, crane manufacturing is the right place to be in. Despite slowdown, the crane industry was on the fast track because of the demand in power and infrastructure sectors. Thus, this segment is already on the mill to chart undaunted growth.

Market The Indian crane industry is split along the lines of organised and unorganised

Tushar Mehendale Managing Director ElectroMech tushar@emech.in

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Wall travell jib cranes

sector. Further, the competition is also split up geographically. Hence, there are only a handful of players in the organised sector, which are really active on a pan-India basis. With around 200 crane manufacturers in India, the industry is all set to grow at 30 per cent annually. The industrial cranes market in India is highly fragmented. In our estimate, we peg the industrial cranes market in India for 2010 at 2500 crore. Almost 30 per cent of the total market is captured by reputed names in the organised sector while the rest of the market is shared by almost 150 small crane companies. Interestingly, almost 30 per cent of the cranes are in the government-owned companies and the remaining 70 per cent in the private sector. The private sector is the most vibrant part of the Indian economy and growing at a huge pace and willing to adopt newer technologies much earlier. Western India contributes 50-55 per cent of the total requirement, southern India follows with 20-25 per cent, northern India with 15-20 per cent, and eastern with 5-10 per cent. Prior to recession, the projected growth rate of the crane industry in India was pegged at around 10-15 per cent per year. In the current scenario, the growth rates will naturally be a bit tempered.

Key drivers for growth The industrial crane sector has a strong positive correlation with basic economic indicators. Any fluctuations in the economic indicators reflect immediately on the sector.

Double girder cranes

Keeping in mind the current movements, India has a few key factors in its favour that will ensure the continuing growth of this segment. The resumption of a steady inflow of investments from foreign multinationals, increase in domestic spending on infrastructure, construction and power projects, robust domestic growth rates, strong internal fundamentals and a healthy banking system make India an extremely attractive destination for companies that are facing shrinking sales in other economies. Consequently, India is emerging as one of the best global investment options. And as long as industrial investments continue to be made, the demand for capital goods such as industrial cranes will grow. The key driver of the industrial cranes industry currently is primarily the infrastructure industry. The current state of Indian infrastructure is vastly under capacity. The infrastructure industry is closely followed by steel and then the automobile industry. Within the infrastructure industry, construction and power projects are the main drivers. There has always been a huge gap between the demand and supply of electricity across India. A lot of new power projects are being implemented, and ancillary industries are developing at an accelerated pace. In the next fiscal, the demand for construction equipment will necessarily be driven by road construction, irrigation projects, power and other construction projects. Demand for industrial cranes would on a stronger note be led by ongoing massive

investments in industrial and SEZ projects and would also grow from green and brown field expansion of refinery projects.

The Indian customer The Indian industrial cranes industry is definitely getting more and more customer oriented. The Indian customer is an ever evolving customer - from being exposed to shoddy equipment a decade ago, today the Indian customer is the king with a choice of high quality equipment at his beck and call. Hence, naturally, the demands of the customers are also evolving. Initially, the customer used to have a single line focus of only the pricing aspect without bothering a lot about the technical comparisons between different offerings. However, now, the customer takes pains to go through the complete technical specifications and ensures that the end product encompasses all the functional aspects as well as other aspects like reliability, safety, ease of maintenance, etc. In todayâ&#x20AC;&#x2122;s infrastructure projects, timelines are sacrosanct and delivery and commissioning schedules are closely monitored by the customer. Another remarkable trend in this sector is that with several international tieups happening, the industry has started to have considerable global influence in terms of quality and use of better technology. The industry is definitely getting more and more customer oriented. Apart from the competition and the plethora of products available in the market, there EM KOMPENDIUM | 2014

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Abus wall travelling crane

has also been a shift in the mindsets of the consumers as well as manufacturers towards the overall aspect of customer service. As a result, customers expect good and timely service by default and manufacturers have to put enabling structures in place to ensure that their customers have no cause for complain. Talking of the availability of high-end solutions, the Indian material handling equipment sector is at par with the global industry when it comes to the field of industrial cranes. Today, the latest and best technology is available in India and Indian industrialists are embracing these products with open arms. Price and cost efficiency is definitely important but the competitive advantage of cranes lies in technological superiority. India is following the international trend of consolidation in the industry; most Indian manufacturers are associating with international majors on the technological front. For international firms looking to enter the Indian market, the time is right with investments soaring up in each of the construction segments. Foreign investors can enter the domestic market by setting up marketing companies. This allows them to establish a brand and also, at a later stage, their own manufacturing units. Players with technological know-how can succeed, as technology is the major entry barrier. A foreign investor or manufacturer could have a joint venture with an Indian partner through technology transfer. Any product that has better installed technology has EM KOMPENDIUM | 2014

Gantry cranes

greater demand compared to its competition. Potential customers have to be made aware of technological advancements. A foreign investor could also associate with an Indian manufacturer whose processes are good by providing monetary support to establish more manufacturing units. He/she can also help Indian manufacturers in providing after-sales services. It has been noticed that the revenues earned by international players through services are high when compared to Indian players.

Potential for growth

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Focus on R&D and innovation: Manufacturers should provide customised solutions by providing additional accessories and specifications geared towards maximising the customers’ productivity. Innovation is possible by understanding the customer profile and R&D would be necessary for customisation; customer training and education should be done in parallel with product technology development. Forming industry associations: Manufacturers should strengthen industry associations. A good industry association provides a platform for technological discussions and will lead to consolidation of information.

Challenges While the Indian market provides a plethora of opportunities to crane

manufacturers, the challenges in this sector cannot be overlooked. Challenges are faced by manufacturers while undertaking business development in making the users understand the application and utility of the machinery. Skilled manpower development is yet another challenge which needs to be addressed intelligently to allow optimum utilisation of the equipment. Starting diploma courses for crane operators in the field of crane operations and safety is a good way to plug skill shortage. The possibility of a tie-up with institutions overseas can be a good business proposal in this regard. India has a vast technical talent base, an established component vendor base and low labour rates, all of which lend it the distinct advantage of becoming an export hub for the Middle East and South-east Asian markets. India can also be regarded as a future R&D hub for international giants because of low R&D manpower costs. Thus, to sum it up, with investments to the scale of ** US$ 700 billion to US$ 800 billion planned in all the relevant user industries of construction equipment, this is the best time for construction equipment manufacturers. India is an exciting market to be present in over the next 20 years. (** Sources: CII-KPMG Report, Indian Infrastructure Equipment Magazine, KPMG analysis, Construction Equipment - IBEF)

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MANUFACTURING IT

T E C H N O LO G Y

Revisiting engineering processes

Mahindra Vehicle Manufacturers Ltd (Mahindra Vehicles) used Siemens PLM Software Tecnomatix to establish a state-of-the-art automotive manufacturing plant at Chakan, Pune, India. A look at how Mahindra rose with its digitally planned new vehicle manufacturing facility.

ahindra Group (Mahindra) is among the biggest and most powerful publicly listed companies in the world. Mahindra Groupâ&#x20AC;&#x2122;s Automotive Sector manufactures and markets light commercial and utility vehicles, including auto rickshaws (threewheelers). The company decided to expand its lineup to include a new range of medium and heavy commercial vehicles, including SUVs, trucks and buses. This expansion required a new plant and hence Mahindra decided to establish a new

manufacturing facility in Chakan, Pune, India. Mahindraâ&#x20AC;&#x2122;s challenge was to learn how to assess, design and build the facility, plus get it running and produce vehicles according to the aggressive schedule that the management had defined. As of 2012, 1,500,000 cars are produced annually in the Chakan corridor by Mahindra, Volkswagen, General Motors, Mercedes Benz and other automotive manufacturers. Mahindra is one of the largest manufacturers in this area, producing light commercial vehicles

(LCV), pick-up trucks, SUVs and the Mahindra Navistar heavy duty trucks.

Establishing state-of-the-art plant Mahindra is a long-time customer of Siemens PLM Software. Designers, data administrators and some of its product assembly suppliers use Teamcenter software for product lifecycle management (PLM). The company also uses NX software for some of the powertrain product design, and a few years ago, EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

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Plant simulation model – routing with a cross-over for empty skids

Mahindra started using Tecnomatix software for digital manufacturing. “In 2007, we selected and introduced the Tecnomatix solution, because it offered the full range of digital manufacturing tools that served our needs, integrated smoothly with our existing product data management systems and clearly stood out in meeting the criteria we had defined,” says Nagesh Nidamaluri, Senior General Manager, Assembly Systems, MES and Digital Manufacturing, Chakan plant, Mahindra Vehicles. Mahindra uses manufacturing process planner solution in the Teamcenter portfolio for the planning of various production processes; as well as plant simulation, FactoryCAD software and FactoryFLOW software, all in the Tecnomatix portfolio, for plant design and optimisation; Process designer and process simulate and Jack software, also all in the Tecnomatix portfolio, for assembly planning and validation. The establishment of a new plant was a good opportunity to revisit Mahindra’s current engineering processes. “We have realised that in order to shorten a vehicle manufacturing project, we need to deploy concurrent engineering methods,” Nidamaluri asserts. “This means that manufacturing engineering needs to work concurrently with product design. Digital manufacturing tools provided by Siemens PLM Software facilitate this approach. This is a dramatic change to our current EM EMKOMPENDIUM KOMPENDIUM| 2014 | 2014

Plant simulation model – routing with no cross-over

engineering processes.” He further added, “we have a gate system, and one of the gates is the virtual validation gate. In the past, mostly the product design group was actually doing validations for this gate; but now, with the help of Tecnomatix digital manufacturing tools, the manufacturing engineering group is very active in preparations for this gate.” Mahindra decided to execute the digital manufacturing journey at the Chakan plant in a series of steps, deploying point solutions to address specific needs, followed by the manufacturing bill of materials (MBOM) and finally the bill of process (BOP). Mahindra plans to clone proven methodologies developed in the Chakan plant at other plants.

Laying out plant in 3D While constructing the new plant in Chakan, Mahindra decided to significantly upgrade the way it creates and manages plant layout data. There were a number of issues to deal with, including the fact that there was no uniform plant layout method across the enterprise. Each site was managing plant layout separately. Plant layout drawings were not maintained in a central repository, which made it very time-consuming to locate them when they were needed. There was no revision management system and only one engineer at a time could work on any given layout. Drawings provided by suppliers

were maintained in different layers in the same file, resulting in duplication of data and unnecessarily large files, which degrade visualisation performance. To resolve these issues, FactoryCAD was used to create 3D plant layouts for all of the plant’s production lines, including body and trim, chassis and final (TCF). “Providing the essentials needed to create detailed and intelligent factory models, FactoryCAD allowed our planners to use ‘smart objects’ to represent their factory resources,” says Anupam Patil, Senior Manager, IT and PLM, Chakan plant, Mahindra Vehicles. “This was especially advantageous because the objects provided the ability to snap a layout model together, instead of wasting time drawing the individual equipment. Using FactoryCAD, we were able to resolve many issues before erecting and commissioning of the factory, such as interferences of process and utility equipment with the civil structure. Also, a monorail system that caused interference with the supporting beams at a specific area and a robot that caused interference with the building column in another area.”

A virtually simulated production line Before building the production line, Mahindra completed a number of simulation projects. One of the projects addressed the inter-connections of

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T E C H N O LO G Y

Process simulate is used to simulate the doors opening while the truck is on a hanger

the body-in-white (BIW) welding shop, paint line and the TCF assembly line, where all the parts are assembled to form a completed vehicle. The goal of the simulation project was to find out the optimal buffer storage capacity in between these production lines. The challenge arose because there were three BIW planned production lines (for the Maxximo, Genio and XUV vehicles) going into a single paint line, which then goes into three separate TCF assembly lines. Tecnomatix plant simulation was used to conduct a ‘what-if ’ simulation to determine the best scenarios for the plant’s inter-shop conveyor system. Several scenarios of mixed-model production volumes were simulated and the optimal size of central painted body buffer storage and individual BIW shop storage was determined. This simulation project substantially reduces the lead time in designing the storage. Another project was to determine the optimal routing method of painted vehicle bodies from the single paint line to the three TCF assembly lines. “The simulation helped to identify bottlenecks, and verify the robustness of the selected option,” says Amit Jahagirdar, Digital Manufacturing Manager, Chakan plant, Mahindra Vehicles. “One simulated option was a clockwise flow of bodies with no cross-over. The simulation showed that in the event that one of the three TCF lines is shut-down, the respective bodies in the main line would create blockage in moving bodies to the other TCF lines. The

Engine docking station simulation created with Jack human simulation

second option was a counter-clockwise flow, with a cross-over for the empty skids to flow back to the paint shop. This is a more robust option because each TCF feeder line is practically independent of others. So, there is little or no impact on the overall performance of the line shutdowns.” Using plant simulation, Mahindra gained critical insight regarding its factory layout and installation processes across vehicle lines. Accurate and fast validation of processes enabled the company to achieve its goal of getting the implementation right the first time. Detailed throughput examination notably reduced bottlenecks, and what-if analysis capabilities substantially decreased unnecessary capital investment in machines and conveyors.

Enabling re-use Mahindra plans to use the resource classification capability of Teamcenter to manage its many production tools. According to Jahagirdar, “the objective of this initiative is to lower costs, reduce lead time and improve quality by helping the manufacturing engineer/planner select the proper resource, increasing the re-use of manufacturing tools, reducing tool inventory, maximising resource utilisation and delivering digital models for verification and simulation.” “We have defined simple categories for any tool we have in our production plants,

including a tool suitable to a specific part, such as fixtures or specific gauges. There are also more generic tools, such as robots and torque wrenches. Based on this, we are defining a workflow using Teamcenter to classify our existing and new tools by part number, so that eventually we will have a structured library of tools across the Mahindra automotive sector.” The next step is the development of the BOP using manufacturing process planner. Assembly operations and their duration are defined, and then linked to the parts that should be handled and to the specific tools required to carry out the work. This methodology enables Mahindra manufacturing engineers to re-use best practices and capture knowledge in planning or modifying a production line. “The digital manufacturing tools play a key role in the first steps of a car project,” says Nagesh Nidamaluri. “These tools are already used in the requirements definition phase of a new or modified production line. This enables us to provide more mature engineering information upfront to our system suppliers, and will therefore reduce lead time and the overall duration of a car project. I also expect that our production facilities and tools suppliers will interact with the system, and introduce their inputs.”

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Courtesy: Siemens Industry Software For digital edition, visit:

> www.efficientmanufacturing.in

EM KOMPENDIUM | 2014

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INNOVATION AT ITS PEAK This feature on the latest innovative products and breakthrough technologies sheds light on the latest themes of technological developments in the field of manufacturing. It focuses on the technical details, applicability, implementations, USP and advantages.

Vortex or otoelectric sens Smart reflect ph

Innovation: High-efficiency area-clearance Company: Delcam Technical Details: Fastest safe metal removal from solid carbide tooling, in particular designs that give deeper cuts by using the full flute length as the cutting surface. It can be used for two and three-axis roughing, three-plustwo-axis area clearance and for rest machining. Applicability: Vortex strategy has helped to achieve the biggest percentage savings in cutting a sample part in tool steel. The cycle time for the part is reduced from 121 minutes to 34 minutes, a reduction of 71%. Advantages: It gives benefits while machining all types of materials, including titanium, tool steel and alloys such as Inconel

Innovation: Smart reflect photoelectric sensor Company: Baumer Technical Details: These solutions consist of transmitter, which emits light and a receiver is used to evaluate the reflected light. Applicability: A reflector is used to reflect the light emitted from the transmitter. In high-speed production environments, it requires replacement, maintenance and cleaning, especially in industries such as food and beverage. Advantages: This solution is used to replace conventional solutions, address the aforementioned issues and is perfect for detecting objects independent of their shape, colour or surface in a cost-effective and reliable manner

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NOVO MASTER PLUS

Innovation: Digital tools for far-reaching improvements Company: Kennametal Technical Details: The vision for NOVO is to be integrated with major CAD/CAM packages and machine tool CNC controls, so designers or programmers will have instant access to the companyâ&#x20AC;&#x2DC;s knowledge at the touch of a button without having to leave their function. Applicability: It brings users into a community, harnessing all on going expertise, and provides fast access to best-in-class process knowledge. The result empowers users by providing the right solutions specifically tailored to their operations. Advantages: NOVO solves many challenges for process planners, manufacturing engineers, and those who want the most efficient machining strategies based on the features of their parts.

Industry catal yst series

EM EM KOMPENDIUM KOMPENDIUM || 2014 2014

Innovation: Diagnostic tool for grinding process monitoring Company: Micromatic Grinding Technologies Applicability: Opportunities for process optimisation can be found such as reduction in cycle time, more parts per dress, etc. Knowledge integration database (KID) by systematically storing the test data from various combinations of the grinding system components Advantages: Design of better machines i.e. by monitoring the behaviour of the machines. Solve process/machine problems as the tool is portable and easily deployable.

Innovation: Accelerating the time and value of each industry implementation Company: Siemens PLM Technical Details: Industry catalyst series accelerates the time and value of each industry implementation while providing an environment for swift adoption of new technology. Each catalyst delivers industry best practices which includes deployment accelerators and Open & configurable industry solution components that allow an implementation team to control the appearance and behavior of a Siemens PLM Software implementation. Applicability: It provides guidance on how PLM can have a dramatic impact on that lifecycle and breaks down the steps and resources needed to complete a specific complex business process within it. Advantages: It is designed to minimise disruption by delivering industrytailored, rapid deployments that enable companies to experience the full value of PLM quickly.

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Innovation: Reducing industrial automation applications Company: B&R Technical Details: reACTION technology allows extremely time-critical sub processes to be managed using standard hardware – all within the requirements of IEC 61131 – while cutting costs by reducing the load on the controller and optimising performance to match demands. The result is an immense increase in performance without added costs. Applicability: These libraries can then be executed locally on the I/O module like the command set for a microcontroller. Advantages: This technology ensures the fastest automation speed with response times as low as 1 µs. It not only reduces costs, but also reduces the load on the controller while increasing performance at the same time.

reACTION techn

ology

EM KOMPENDIUM | 2014

NEWS TECHNOLOGY

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Collet chuck

CNC rotary table

Seco’s new collet chuck EPB 5672 is perfect for high-performance, and high-speed machining. It offers a maximum run-out of three microns at a tool length that is three times the outer diameter. It is designed to maximise the clamping force and spread it equally over the tool shank along the full length of the collet, making highperformance cutting tool possible. It also reduces the risk of tools being pulled out of the chuck. There is a completely new type of functionality between the nut and body. The cylindrical shape of the nut and body without any asymmetric parts creates a well-balanced tool assembly for high-speed machining, where the The EPB 5672 is designed to slick round collet nut is tightened using maximise the clamping force a roller spanner. The front-end can and spread it equally over handle up to 80,000 rpm, but the the tool shank along the full actual maximum is often limited by the length of the collet type and size of back-end taper.

UCAM has designed large size CNC rotary table of size 2500 mm x 3000 mm with a load carrying capacity of 40 tonnes. This rotary table has an accuracy of ± 5 arc seconds and repeatability of ± 2 arc seconds with a linear axis positioning accuracy of ± 3µ. The technological features include the development, The CNC rotary table has an accuracy of ± 5 arc incorporation of hydrostatic seconds and repeatability of ± 2 arc seconds bearing technology and dual with a linear axis positioning accuracy of ± 3µ pinion gear drive with electronic backlash elimination. On this table, large workpiece can be drilled, bored and milled (including rotary milling). Application area includes machining of component for heavy engineering industries like power generation, wind turbine machining, aerospace, railways, pump & compressor industry, large valve manufacturing, capital goods, etc. The infrastructure industry is expected to benefit from this kind of product. The table has been tested and validated by Advanced Machine Tool Testing Facility (AMTTF) located at CMTI Campus, Bangaluru.

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Laser cutting machines

Chip breakers

Yamazaki Mazak’s OPTIPLEX 3015 Fiber II eliminates the laser gas used in conventional laser processing machines along with the gas for purging optical components. In addition, its users benefit from an 80% reduction in oscillator and chiller unit electrical power consumption when laser cutting. The machine is equipped with a 4.0 kW continuous rated output fibre laser oscillator, which makes it ideal for the high The OPTIPLEX 3015 Fiber II channels speed cutting of thin worksheets. increased beam density and laser energy In tandem with its sister into the cut makes it ideal for the high speed machine, the OPTIPLEX 3015, a cutting of thin worksheets CO2 laser cutting machine, it enables Mazak to offer energy efficient laser cutting solutions for both thick and thin materials. Typically, many laser users operate with CO2 machines cutting both thick and thin workpieces. However CO2 lasers are less efficient for the cutting of thin worksheets in comparison with a fibre laser cutting solution, which is able to perform high speed cutting with lower output. In addition, the new fibre laser cutter is capable of exceptional positioning accuracy of ±0.05 / 500 mm on the X- and Y-axis and ±0.01 / 100mm on the Z-axis. > www.efficientmanufacturing.in

E M KO M P E N D I U M | 2 0 1 4

> www.efficientmanufacturing.in

Walter has recently launched UD4 geometry that optimises grooving and recessing in mass production. Only finely tuned cutting edge geometry provides optimum chip breaking – a prerequisite for a high level of process reliability. For grooving and Equipped with special recessing, this is important chip breakers, the new UD4 geometry because chips that refuse to ensures increased process reliability when break are particularly grooving and recessing undesirable in narrow grooves. The specially shaped chip breakers ensure optimum chip breaking across the entire cutting edge. For longitudinal turning with machining depths of 1 to 4 mm, roughing chip breakers are effective, whereas for finishing using lower feeds in the range of 0.5 to 1 mm, appropriate finishing chip breakers should be used. For radial recesses, the indexable inserts have additional chip breakers behind the front cutting edge. The user benefits from increased tool life and reduced downtime. The unit costs are reduced accordingly. Tests using wheel hubs made from the material 16 MnCr5 carried out at an automotive supplier led to 80 per cent increases in tool life. > www.efficientmanufacturing.in

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TECHNOLOGY NEWS

Heavy duty incremental encoder

High performance drilling

Baumer has recently launched its EEx HOG 161, the latest HeavyDuty incremental encoder in explosion-proof design with IECEx certifcation in device category 2 G. The encapsulated, pressure-proof device for enhanced safety is compliant to both ATEX Directive 94/9/EG for potentially explosive atmospheres (II 2 G Ex d e IIC T6 Gb) and IECEx scheme (Ex d e IIC T6 Gb). This way it allows for deployment in any of the 30 countries worldwide that have Incremental Incremental HeavyDuty HeavyDuty encoder encoder EEx EEx adopted the IECEx standard. HOG HOG 161 161 with with ATEX ATEX and and IECEx IECEx approval approval Manufacturers of export-oriented equipment benefit from the international certification. The encoder operates on the optical sensing technique and depending on the product variant provides 250 to 2.500 impulses per turn. Inner through-hollow shaft diameters from 30 to 70 mm, high bearing load capacity of 650 N radial and 450 N axial ensure maximum service life. The robust housing protects the encoder against adverse ambient conditions and the large terminal box enabling four different mounting positions considerably ease electrical installation.

Dormer has launched a high performance drilling range. A key feature of the new range is its point geometry. This has been specifically developed to enhance all aspects of hole quality and positional accuracy. It is also particularly advantageous when drilling materials that resist cutting and generate high temperatures, such as stainless steel. The base material is a cobalt-based HSS-E (M35), a premium grade of high speed tool steel which has been heat treated to retain hardness at increased temperatures. Ricky Payling, Product Manager — Drilling, Dormer, said that the This This new new range range has has been been combination of material and geometry specifically specifically developed developed to to make the A620 an ideal choice for enhance enhance all all aspects aspects of of hole hole machining stainless steel and quality quality and and positional positional accuracy accuracy temperature resistant alloys. It is manufactured from a very strong, wear resistant grade of steel but the point design minimises thrust forces when drilling. This promotes both longer tool life and, due to reduced spindle forces, less wear and tear on the machine.

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5-axis vertical machining centre

Vibrant and temperature monitoring device

5-axis machining has reached maturity among machine tool builders in developed nations. Not so in India. Few machine tool builders here venture beyond producing run-of-the-mill machines due to various compulsions. BFW integrates a 5-axis vertical machining centre, Pentaxes. It has been specially designed considering conditions typical in most industries. Equipped with Fanuc, Siemens or Mitsubishi system, Pentaxes machine components are up to 450 kg in weight with 500 mm x 1,000 mm clamping area. The accuracy as per JIS is as ±0.005 mm positioning, ±0.003 mm repeatability on linear axes and ±20 arc sec positioning and ±15 arc sec repeatability on tilting axis. Combining dynamics with rigidity, Pentaxes Pentaxes machines machines components components are are Pentaxes is very effective on die and mould, up up to to 450 450 kg kg in in weight weight with with aerospace, medical implantation, power 500 500 mm mm xx 1,000 1,000 mm mm clamping clamping area area generation, automobile and general engineering components. The rigid cast iron structure of the Pentaxes houses a moving column. The chip and coolant management is under the cutting zone. BFW is also coming up with other product named Tej which is also specially built to machine power-train components of passenger cars and light commercial vehicles.

SKF presents the SKF machine condition indicator, a low-cost vibration and temperature monitoring device designed for rotating machinery with constant operating conditions. It provides the ability to track basic machine health on assets that are not currently being monitored on a regular basis. The device can be used indoors or outdoors, in almost any industry where rotating machines are used, such as pulp and paper, power, food and beverage, hydrocarbon processing industry (HPI), oil and gas industry, machine tool, as well as heating, ventilation, and air conditioning (HVAC). It also periodically makes two types of vibration measurement. Velocity measurements are made to The device device monitors monitors keep track of overall machine health and highlight The machine machine operating operating potential problems relating to misalignment and temperature temperature imbalance. Enveloped acceleration measurements are used to detect possible bearing degradation. In addition, the device monitors machine operating temperature. The indicator also features built-in intelligence for measurement evaluations and to avoid false alarms, with an alarm status visually indicated via three LEDs. The indicator is fixed to the machine and runs on battery.

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EEM M KO KOM MPPEEN ND DIIU UM M || 22001144

NEWS TECHNOLOGY

Magnetic rotary encoders

Automotive paint shop

Pepperl+Fuchs has recently introduced the single-turn absolute rotary encoders with magnetic detection principle that is based on two-axis hall sensors. These encoders can be turned into multi-turn absolute rotary encoders through the addition of a Wiegand sensor. An advantage of the magnetic functional principle is its compact installation dimensions and non-contact sampling system. Resolutions of 12 bits are currently possible with single-turn versions, while resolutions of up to 39 bits can The The magnetic magnetic absolute absolute rotary rotary theoretically be achieved with encoders encoders multi-turn versions. The standard resolution is 12, 16, or 18 bits. This design principle enables accuracies from 0.5° to 1° for magnetic absolute rotary encoders. Magnetic rotary encoders are characterised by their compact size, which makes them ideal for use in medical technology or laboratory automation. The magnetic detection principle is also extremely robust, which means that these encoders are an appropriate solution in areas where the ambient conditions are especially adverse, such as in commercial vehicles or wind farms.

Dürr has received the follow-on order of automotive paint shop from BMW Brilliance to increase production capacity in Shenyang, China. The extension of the installation to the full nominal capacity improves the low energy consumption of the system to achieve the optimum value of less than 500 kWh per vehicle. The energysaving measures of Dürr and BMW are already effective in pretreatment and electro-coating area where RoDip M rotational dip coating is used. The new second painting line uses the fully automated Integrated Paint Process (IPP), which eliminates the need for Ecopaint RoDip, RoDip, the the rotational rotational dip dip primer and thus, a drying phase as well. Ecopaint coating coating The spray booths are equipped with the EcoDryScrubber — the innovative dry separation system for overspray. This technology requires no water or chemicals. In the first line, the paint is applied using 32 Dürr EcoRP E033 and EcoRP L133 painting robots. The compact design of the newgeneration EcoBell3 atomiser enables painting both the exterior as well as the interior with a single rotating atomiser.

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Turning tools

Lightweight linear guide

TaeguTec has launched the RHINORUSH™, a range of turning tools to meet the manufacturing industry’s need of reduced machining costs and high efficiency. The 9 mm and 13 mm new line of inserts is as strong as the 12, 15 and 16 mm inserts available but at a fraction of the cost and size. The technology offers stable tool life even during high speed machining, The The RHINORUSH™ RHINORUSH™ aa series series of of mini mini interrupted cutting and old tuning tuning inserts inserts machine set-ups. The series includes holders with rigid clamping and five types of chip breaker inserts: FG, PC, MT, FM and FT. The FG chip breaker is used for finishing applications at a low cutting force on steel and stainless steel materials. For semi-finish to medium applications in steel machining, the PC chip breaker’s positive geometry has excellent chip control. The third chip breaker, MT, is ideal for medium to medium rough applications. The FM and FT type are the perfect solution on a wide range of semi-finishing to medium turning applications.

Igus GmbH has introduced the new drylin Q, a lightweight linear guide system. These include a lubricant-free guiding of a linear movement and the accommodation of pipes and cables. The new drylin Q system works like a traditional shaft guide. It is made up of a closed casing which can be moved linearly on a shaft. However, drylin Q does not have a round shaft, but rather a square aluminium profile with an edge length of 7.5 mm. This makes drylin Q absolutely torsion-proof compared with round systems. Since the aluminium profile is also drylin drylin Q, Q, aa lightweight lightweight linear linear guide guide hollow, it can accommodate system system is is compact compact and and suitable suitable protected compressed air, fluid, for for small small loads loads signal or energy pipes and cables. This hybrid solution allows additional design space to be saved easily for cable routing, particularly useful for applications in the miniature range such as in laboratory instruments. The drylin Q is available in two different versions: a spacesaving and favourably priced plastic solution, which can either be mounted using two threaded connections or be fixed in a bore hole with a diameter of 22 millimetres.

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TECHNOLOGY NEWS

Laser beam machine

Quick change block system

The PSM 400 BladeWelder from SCHUNK Laser Technology is a new laser beam machine for demanding materials. It can be used for crack-free, fast and cost effective processing even on high-temperature nickel or cobalt base alloys. With a maximum pulse power of 8 kW, the Lasag laser achieves a pulse energy of 110 J. Freely scalable pulse formation and modulation enable adaptation of the laser parameters to the specific characteristics of the materials. The pulse duration can be extended to a very impressive value of 200 ms. An adaptive closed-loop controller ensures precise and The The PSM PSM 400 400 BladeWelder BladeWelder is is stable operation of the lamp-pumped solid ideal ideal for for machining machining turbine turbine state laser. To prevent damage to the fibres blades blades and and high-alloy high-alloy tool tool steels steels by a reflected laser beam when used on highly reflective materials, the BladeWelder is equipped with high-performance fibres that absorb such reflections. The other SCHUNK laser beam machines of the PSM 400 series are also extremely flexible, with three, four or five axes. They enable fast and convenient machining of both small and large components. SCHUNK also provides peripheral devices for laser welding, such as the robotic interface VERO-S NSR.

Kennametal QC42Quick-Change Block System enables to reduce change time and maximise uptime. The new design features increase reliability and cuts block change time from 60 to 90 minutes down to 10 to 15 minutes, dramatically improving machine uptime. With many mines moving to a “no blasting, no drilling” mode, surface miner machines are encountering more severe cutting work. The QC42 system incorporates many new design features to make it more productive and reliable. A new 1070 spring steel retainer provides an added safety feature to keep rubber bumper bumper stops stops the the block block the unit together when not fully engaged AA rubber from from over-locking over-locking and and aa newly newly from a tapered press fit. A rubber designed designed hard hard faced faced block block face face bumper stops the block from overensures ensures better better conical conical rotation rotation locking and a newly designed hard faced and and minimises minimises wear wear block face ensures better conical rotation and minimises wear. For surface mining and trenching machines, the product reduces tool-change time and features a no-weld design for a safer work environment, taking machine uptime and productivity to a different level.

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Solid carbide tools

Ultra-precision switches

VARGUS Ltd has introduced high precision solutions for the medical and dental industries. Its advanced line of solid carbide threading tools is uniquely suited to the rigorous standards of today’s medical and dental applications. The VARDEX TM Solid line of solid carbide thread milling tools provide an excellent solution to the challenges of working with titanium and can produce the multi-start conical threads required in these demanding applications. The TM Solid Taper is a straight-fluted tool High High precision precision solutions solutions for for the the specifically designed to oo medical medical and and dental dental industries industries produce 20 C taper threads required by the surgical bone oo plate market. The TM Solid Taper is available at profile angles of 55 C oo and 60 C, producing pitches in the 0.3 – 0.6 mm range. The company has developed the Millipro Dental line as a dedicated solution for these challenging applications. The TM Solid Millipro Dental tools produce miniature thread mills for dental implant applications from M1.0x0.25 (No.0-80UNF).

Metrol Co Ltd provides various sensors for multiple applications. The sensors having up to IP67 protection are waterproof and dust-resistant and thereby, remain unaffected by ambient conditions. Its ultra-small PT-Touch sensor is the world’s smallest ultra-precision contact switch measuring M5x17 mm with a repetitive accuracy of 1 µm and 3 million contact lifetime. They are best suited for applications with Ultra-small Ultra-small PT-Touch PT-Touch sensor sensor constraints in installation space, and offers a stable output of high-precision signals as there is no drift due to voltage, temperature and overtime or any movement differential. They are available as threaded and non-threaded types. High-accuracy MT-Touch sensor offers up to 0.5 micron in repetitive accuracy and up to 10 million contact lifetime without an amplifier. Hence, it is available at approximately 1/10thth the cost of a sensor with an amplifier. The IP67 protection ensures that they are resistant to coolant oils, water & dust, and can be used for application in automotive production lines and harsh working environments.

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NEWS TECHNOLOGY

Coated cemented carbide grade

High-power servo motors

Sandvik Coromant has introduced GC4325 — a new-generation coated cemented carbide grade for steel turning. This latest innovation in tool material provides a new, higher potential for increasing cutting speeds and a longer, more predictable tool life with very high reliability, over an extended broad ISO P25 application area. Predictability has become increasingly important in today’s machining, especially where The The GC4325 GC4325 provides provides aa new, new, higher higher there is limited supervision in potential potential for for increasing increasing cutting cutting production. There are always a speeds speeds and and aa longer, longer, more more predictapredictanumber of threats to the edge line ble ble tool tool life life with with very very high high reliability reliability remaining intact long enough in steel turning. One challenge is the breadth of the ISO P25 application area, which includes several very different materials, from ductile low-carbon steels to high-alloy hard steels, bar material to forgings, castings to pre-machined parts. The advances with the new grade, GC4325, will help users resist holding back on cutting-data levels. The grade provides extremely high process security through its ability to retain an intact edge line.

B&R has expanded its product line to include servo motors with high torque and an extended range of speeds. The highly efficient motors in the 8KS series provide up to 140 kW of power and stall torque up to 555 Nm. Available in two sizes with speeds up to 3,000 rpm, 8KS motors open up new possibilities for applications in a wide range of industries that require high power. In addition, these servo motors are available with either axial or radial fans, water cooling or optional mounting feet. The series is also the perfect complement for implementing The The 8KS 8KS motor motor series series offer offer all all the the high-powered yet energy-efficient benefits benefits of of servo servo motor motor technology technology servo hydraulic drive solutions in in aa power power range range higher higher than than the the together with B&R’s servo pump 8LS 8LS and and 8JS 8JS series series control. The variant with reinforced bearings, makes it possible to set up high-torque belt feed axes for electric injection moulding machines. It comes equipped with a resolver interface, an optical encoder with EnDat interface and an embedded parameter chip.

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CVD & PVD coatings

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Rotary axis calibrator

Carboloy offers CVD coatings. The columnar nanoscale TiCN and the The applications flexibility has been further extended by the addition of controlled crystal growth of Alumina Oxide (Al22O33) used on Carboloy Renishaw’s new ‘Off axis rotary software‘. This allows the Renishaw’s products give far superior fracture and wear XR20-W to be used even when it cannot be positioned directly on the resistance compared to conventional coatings. rotary axis under test. Users can now test The special tough columnar structure of the more and different machine tools than was CVD-coating used for Carboloy makes it possible previously possible; giving a better return on to cover a wide application range and thus investment and offering a more attractive reduces the number of tools required. The service to their customers. The new cemented carbide used for turning has a Renishaw XR20-W rotary axis calibrator has controlled cobalt content varying from the centre transformed the way they calibrate rotary Nano-structural Nano-structural PVDPVD- to the surface (gradiant sintering), making the axes on machine tools. Before XR20-W, coatings coatings with with high high grade both tough and hard. The PVD-coatings, The The XR20-W XR20-W is is aa totally totally their technicians relied on a combination content content of of Al Al used for the Carboloy grades are built on wireless wireless accessory accessory for for use use with with of two devices; the old Renishaw RX10 Renishaw‘s Renishaw‘s XL-80 XL-80 and and ML10 ML10 laser laser state-of-the-art technology of nano-structural and their in-house designed measurement measurement systems systems PVD-coatings with high content of Al. The unique PVD-coatings in “Morleyometer” for applications where the combination with submicron substrates with optimised hardness and calibrator could not be mounted on the co-content makes the Carboloy PVD-products a secure and reliable centre of rotation. While these devices got the job done, they were choice for operations characterised by high mechanical stress on the heavy, cumbersome and slow. Set-up could be challenging, and the cutting edge. Also, the coated cemented carbide offers very good associated cables and fixturing meant that great care had to be taken characteristics for machining with or without coolant; and has a secure to ensure that the test proceeded smoothly. The new wireless XR20-W cutting edge that has a distinct advantage, the capability to machine has changed all that. Set-up is now quick and easy with the new from finishing cuts to roughing and to have even interruptions. RotaryXL software. >> www.efficientmanufacturing.in www.efficientmanufacturing.in

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HIGHLIGHTS CO M PA N Y I N D E X

EM Highlights - May 2014 IMPRINT Publisher / Chief Editor Shekhar Jitkar shekhar.jitkar@publish-industry.net Deputy Editor Sumedha Mahorey sumedha.mahorey@publish-industry.net Sub-editor & Correspondent Srimoyee Lahiri srimoyee.lahiri@publish-industry.net

» Composite machining Composite materials are bonded together to form complex structural sub-assemblies that must be either assembled together or attached to other structural components, such as aluminium or titanium. This presents a unique set of challenges that requires radical new technologies. The next issue will feature such challenges and trends.

» High-speed Machining High-speed machining enables manufacturers to shorten machining times and achieve a higher surface quality. The upcoming issue takes a look at the latest trends and innovations driving high speed machining. » Welding & Assembly Welding & assembly can predict the heat effects of welding processes by allowing cost-effective distortion engineering and weld quality & residual stress control. The next issue takes a sneak peak into the latest process development in welding & assembly and its virtual role in the manufacturing sector

» Milling Machining Milling is the machining process of using rotary cutters to remove material from a workpiece advancing in a direction at an angle with the axis of the tool. It covers a wide variety of different operations and machines, on scales from small individual parts to large, heavy-duty gang milling operations. The upcoming issue takes a boarder look at the latest trends and technology in the milling machining sector.

Features Writer Megha Roy megha.roy@publish-industry.net Advertising Sales Sagar Tamhane (Regional Head - North & East) Contact: +91 9820692293 sagar.tamhane@publish-industry.net Dhiraj Bhalerao (Regional Head - West & South) Contact: +91 9820211816 dhiraj.bhalerao@publish-industry.net Prabhugouda Patil Bengaluru Contact: +91 9980432663 prabhu.patil@publish-industry.net Advertising Sales (Germany) Caroline Häfner (+49 - 89 - 500 383 - 53) Doreen Haugk (+49 - 89 - 500 383 - 27) sales@publish-industry.net Overseas Partner Ringier Trade Media Ltd China, Taiwan & South-East Asia Tel: +852 2369 - 8788 mchhay@ringier.com.hk Design & Layout Sovan Lal Tudu (Senior Designer) sovan.tudu@publish-industry.net

COMPANY INDEX Name . . . . . . . . . . . . . . . . . . . . . . . . . Page Ace Micromatic Group . . . . . . . . . . . . . . . . 57

Name . . . . . . . . . . . . . . . . . . . . . . . . . Page Haas Automation . . . . . . . . . .Back Inside Cover

Name . . . . . . . . . . . . . . . . . . . . . . . . . Page Schunk Intec India . . . . . . . . .Front Inside Cover

AFM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Igus . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

SCHUNK . . . . . . . . . . . . . . . . . . . . . . . . . 126

AMT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Apex Group . . . . . . . . . . . . . . . . . . . . . . . . 82 AutoForm Engineering India . . . . . . . . . . . . . 90 B&R Automation . . . . . . . . . . . . .68,122, 127

IIT Mumbai . . . . . . . . . . . . . . . . . . . . . . . 106 IMTMA . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Infor Global Solutions . . . . . . . . . . . . . . . . 103 Ingersoll Rand . . . . . . . . . . . . . . . . . . . . . . . 9

Seco Tools. . . . . . . . . . . . . . . . . . . . . 98, 123 Sescoi USA . . . . . . . . . . . . . . . . . . . . . . . 100 Siemens Industry Software. . . . . . . . . . . . . 116 Siemens PLM . . . . . . Cover, 2, 15,29, 64, 121

Baumer India . . . . . . . . . . . 41, 75, 120, 124

ISCAR Ltd . . . . . . . . . . . . . . . . . . . . . . . . . 87

SKF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

BFW. . . . . . . . . . . . . . . . . . . . . . . . . 72, 124 Blaser Swisslube . . . . . . . . . . . 69, Back Cover Canalys. . . . . . . . . . . . . . . . . . . . . . . . . . . 10

JMTBA . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Kennametal India . . . . . . . . . . 1, 65, 121, 126 Kirloskar Brothers Limited . . . . . . . . . . . . . . . 8

Sonalika International Tractors. . . . . . . . . . . . . 6 STIMS Institute . . . . . . . . . . . . . . . . . . . . . . 24 Stratasys . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Carboloy . . . . . . . . . . . . . . . . . . . . . . . . . 127 CD-apapco . . . . . . . . . . . . . . . . . . . . . . . . . 8

KOMMA . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Marposs India . . . . . . . . . . . . . . . . . . . . . . 37

Stratmann Consulting . . . . . . . . . . . . . . . . . 22 Tague Tec . . . . . . . . . . . . . . . . . . . . . . . . 125

CECIMO . . . . . . . . . . . . . . . . . . . . . . . . . . 38 CMTBA. . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Cumberland Group . . . . . . . . . . . . . . . . . . . 18

Metrol Co Ltd. . . . . . . . . . . . . . . . . . . . . . 126 Micromatic Grinding Technologies . . . . . 73, 121 Mobil Industrial Lubricants . . . . . . . . . . . . . . 84

TMBA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 UCAM. . . . . . . . . . . . . . . . . . . . . . . . . . . 123 UCIMU-SISTEMI PER PRODURRE. . . . . . . . . 45

Delcam Plc . . . . . . . . . . . . . . . . . 10, 66, 120

MTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

United Grinding Group AG . . . . . . . . . . . . . . 53

Dormer Tools . . . . . . . . . . . . . . . . 61, 70, 124 Durr . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Eaton . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ElectroMech. . . . . . . . . . . . . . . . . . . . . . . 113 Faleez Tech . . . . . . . . . . . . . . . . . . . . . . . 108

Northern Iowa . . . . . . . . . . . . . . . . . . . . . . 20 Okuma . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Pepperl+Fuchs . . . . . . . . . . . . . . . . . . . . 125 Pluss Polymers. . . . . . . . . . . . . . . . . . . . . . . 6 Qimpro Consultants. . . . . . . . . . . . . . . . . . . 26

University of Michigan . . . . . . . . . . . . . . . . . 16 Vargus . . . . . . . . . . . . . . . . . . . . . . . . . . 126 VDMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 VDW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Walter. . . . . . . . . . . . . . . . . . . . . . . . . . . 123

FARO . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Fresmak Arnold . . . . . . . . . . . . . . . . . . . . . 33 Frost & Sullivan . . . . . . . . . . . . . . . . . . . . . 17

Renishaw . . . . . . . . . . . . . . . . . . . . . . 7, 127 Roland Berger Strategy Consultants India . . . . 27 Sandvik Coromant . . . . . . . . . . . . . . . . . . 127

Wohlhaupter India . . . . . . . . . . . . . . . . 67, 74 Yamazaki Mazak India . . . . . . . . . . . . 11, 123

Editorial & Business Office publish-industry India Pvt Ltd 302, Sarosh Bhavan, Dr Ambedkar Road, Camp, Pune 411 001, Maharashtra, India Ph: + 91 - 20 - 6451 5752 Board of Directors Kilian Müller (CEO - Worldwide) Hanno Hardt (Head - Marketing & Business Development) Frank Wiegand (COO - Worldwide) Shekhar Jitkar (Publisher / Chief Editor) Subscription Annual Subscription Price: Rs 600 includes shipping and VAT. em.india@publish-industry.net Ph: +91-20-6451 5754 Printing Kala Jyothi Process Pvt Ltd, S.No: 185, Kondapur, R R District, AP 500 133, INDIA Copyright/Reprinting The publishing company holds all publishing and usage rights. The reprinting, duplication and online publication of editorial contributions is only allowed with express written permission from the publishing company. The publishing company and editorial staff are not liable for any unsolicited manuscripts, photos and illustrations which have been submitted. Internet http://www.efficientmanufacturing.in

EM KOMPENDIUM | 2014

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