Asia Manufacturing News November/December

ASIA

Asia Manufacturing News

November/December 2014

MANUFACTURING NEWS Success Through Innovation

November/December 2014

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Hankook Delcam world’s biggest for CAM users

The Connected Industrial Enterprise The business of Neutraceuticals

The keys to succeeding in ASEAN

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ASIA

MANUFACTURING NEWS

EDITORIAL

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Let’s not follow the others If Peter Thiel, co- founder of PayPal and Palantir has it right the future needs to Doug Green change. It’s easier to copy a model than to make something new. Doing what we already know how to do keeps on adding more of something familiar. And it is easier to do.

Peter Thiel has a book out with Blake Masters, Zero to One. How about we just don’t keep on being a computer manufacturer amongst lots of other computer manufacturers and make something new? Because if we keep on being moderate and doing what we know amongst other similar companies – our competition – then sooner or later we, the competition, may not be around much longer because competition amongst equals brings with it company takeovers. Three computer manufacturers become two.

Why not make something brand new instead of copying what others are doing? Can we think of something that hasn’t been made before and not have to bother having competition. Get it?

In golf, we talk about our own authentic swing. That may be a swing not based on our golfing buddies, not copying anyone else to drive the ball down the fairway.

Because 2014 is rapidly coming to an end I think this is a good subject for all of us to look at for 2015. A great opportunity to dream and plan what might be next for our company that no one else is doing. Imagine that!

Get your company geniuses together and ask the question “How can our company make something new and not take the easy way by continuing to do just what we know?”

One upon a time someone invented the paper clip. Then someone else made another model, round, not silver, but in colours. It was still called a paper lip.

You may be thinking that if you the great individual idea you would be doing it? But would you…are you in the comfort zone and this is as good as (you want it) to get?

the

FactoryFloor

Magazine

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I am looking forward to lots of new, exclusive ideas coming my way in 2015.

Asia Manufacturing News

November/December 2014

CONTENTS 4 | THE INTERVIEW Michael Zink, head Citi’s regional office for ASEAN.

7 | DEVELOPMENTS Delcam’s Hankook Conference world’s biggest for CAM users.

8-9 | DEVELOPMENTS India grows in importance for Nasmyth.

10 - 15 | ANALYSIS A pocket guide to doing business in China.

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16-18 | CASE STUDY PLM helps automaker reduce product development cycle.

20 | EVENTS Manufacturing Myanmar well received.

22-24 | ANALYSIS Connected Enterprises need data unlocked.

25 | DEVELOPMENTS IN – House grinding keeps tight control on quality.

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26 - 30 | EVENTS Countdown begins for Labelexpo South China.

The business of Neutraceuticals.

30 – 33 | BUSINESS NEWS Hypertherm appoints new Asia Pacific director.

PwC and Google announce joint business relationship.

SATO to strengthen global presence.

34-37 | MANUFACTURING TECHNOLOGY Hypertherm introduces Centricut consumables.

Plasma system maintenance.

38 | THE INTERVIEW Veolia | CBB Post Show & Outlook

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39 | Dongbu Daewoo Electronics selects Seimens PLM system.

40-41 | AMN EDITORIAL CALENDAR 2015

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THE INTERVIEW

THE INTERVIEW

The keys to succeeding in ASEAN As the first head of Citi’s regional office for the Association of Southeast Asian Nations (ASEAN), Michael Zink leads the global banking giant’s effort to expand in one of the world’s most dynamic and diverse markets.

He sees enormous opportunities for companies such as Citi that learn to see ASEAN’s collective potential as larger than the sum of its parts. In an interview with Clay Chandler, Zink argues that ASEAN has demonstrated remarkable financial resilience since the Asian financial crisis of the 1990s and explains why Citi expects the region to play an increasingly prominent role in its own growth and that of the world economy.

McKinsey: Do you plan strategy for ASEAN as a single regional entity, or is it more practical for

distribution channels, have been able to take advantage of it.

Increasingly, we find the companies that are most successful [here] are thinking about connectivity across the ASEAN community.

McKinsey: Can ASEAN compete with China in manufacturing?

Michael Zink: China is no longer an

multinationals to see ASEAN as a collection of

inexpensive place to manufacture, with the cost

separate and very different markets?

of labor, the cost of water, the cost of operation.

Michael Zink: ASEAN is not an artificial

It’s much more expensive than it was a generation

thing. It’s not something that was created in the

ago. Southeast Asia still has some cost benefits.

imagination of an executive at some multinational

And there’s some serious manufacturing under

company. ASEAN is real. It’s 50 years old. It’s a

way here. Thailand is the automobile-manu-

willing gathering of ten nation-states—not just

facturing center of the region. And Indonesia

for economics but for security and for other

increasingly manufactures. So it’s a rising sector,

exchanges [and] political consultation. It’s been

manufacturing. But it’s the services sector that

intensified recently in the minds of business

looks like the real driver moving forward.

you, those ten countries remain nation-states,

China is no longer an inexpensive place to manufacture, with the cost of labor, the cost of water

and they each have their distinct nature. We have

McKinsey: What are the key drivers of growth

executives because the ASEAN Economic Community has been articulated very clearly, and it’s about to come into focus by 2015. Now, mind

to acknowledge that and treat them as different countries. But ASEAN is a real thing.

Increasingly, we find the companies that

in the region?

Michael Zink: One thing we talk about a lot is urbanization. Half the human population lives

are most successful [here] are thinking about

in a city today. By 2050, it’s probably going to

connectivity across the ASEAN community. Tariffs

be 75 percent. But in Southeast Asia, it’s still

have come down. The economic community is

only a quarter of the population. So this trend

coming into place. Companies that have worked

toward urbanization—people moving into cities,

out the logistics, that have thought through their

something we watched happen in China for the past 20 or 30 years—it’s going to accelerate here.

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What’s the impact and what’s the opportunity?

Affluence is rising and being concentrated in urban centers. Anybody who’s figured this

November/December 2014

to buy other companies. That’s a very, very, very good evolution.

If you look at the chart of the rising markets

out—that it’s about cities, urban centers, and

across that 2014–15 period, it’s as if the global

concentrating your distribution and your outreach

financial crisis of 2008–09 never occurred. It’s a

to your clients in the urban centers—is going to

straight line up.

win.

If you look around the rest of the world, Europe’s

There are efforts to link the exchanges. Today, they operate very distinctly. There are efforts

aging, Japan’s aging, and China’s aging more than

for trading links so that brokers can buy and sell

people realize. Not Southeast Asia. Half the people

stocks across them in an attempt to accumulate

in Indonesia—half the 200-plus million—are under

those pools of liquidity so that they aren’t

30. This is a very young place. It’s dynamic, it’s

fragmented, as they are today. That will take

vibrant, and there’s a lot of enthusiasm. [Indonesia

awhile.

is] growing at 6 percent a year, every year. They’re

McKinsey: And on the fixed-income side?

winning and they feel good about it.

Michael Zink: When we look at debt capital

McKinsey: What opportunities do you see in ASEAN financial markets?

Michael Zink: There’s a question of whether

markets, we’ve already done some very specific mechanical, unglamorous things to have standards that are harmonized across

we can develop the capital markets across

the ten countries of ASEAN. Under the ASEAN

ASEAN and do it regionally. It’s posed in a way

Disclosure Standards Scheme, if you issue debt

to suggest that we haven’t done so. But that’s

in one country, it has now been agreed that

not true. The capital markets here are evolving

the issuer needs to provide only a single set

very quickly. The ASEAN-5, they have big stock

of disclosure documents that comply with the

exchanges: Singapore, Kuala Lumpur, Jakarta,

ASEAN Disclosure Standards to investors in each

Bangkok, and Manila. The market capitalization

jurisdiction. This increases efficiency and reduces

of those exchanges has quintupled between 2000

costs. Suddenly, an issuer of a bond in one

and 2014. [The year] 2000, that’s the benchmark.

country has access not just to the people inside

The 1997–98 crisis, we came out of that. New

of his own nation-state but also to the whole 600

benchmark: a fivefold increase to $2.5 trillion.

million population across ASEAN.

That’s about 100 percent of GDP—a huge number.

But compared with what? Bank lending in the same region is $2 trillion.

Equity markets [are] now larger than the total

McKinsey: What are prospects for further integration in commercial and retail banking?

Michael Zink: Banking liberalization will take time because prudential regulators are still defined

stock of bank lending. The access to capital,

by countries. So you still need permission to enter

the accumulation of wealth, that’s moved into

Singapore or Thailand or Malaysia or Indonesia.

equities. And these are companies that are floated

We have a lot of work to do before there is such

on those exchanges. Terrific.

a thing as a unified ASEAN banking market.

The debt capital markets have seen a similar expansion, [growing] fivefold from $200 billion to $1 trillion. So the capital markets in ASEAN have critical mass. They’re giving companies currencies asiamanufacturingnewstoday.com

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That said, the banks in each of these countries

them feel secure about it—and so we come back

are increasingly strong, and you have national

to cybersecurity.

champions [such as] CIMB Bank and Maybank

On the other hand, people think, well, because I

in Malaysia. And, of course, the Big Three [in

can do it on my device and I don’t need a branch

Singapore]—DBS Bank, United Overseas Bank,

anymore, it is less expensive. That’s flawed. These

and OCBC Bank—are expanding across ASEAN

systems are breathtakingly expensive to build:

and across Asia. Indonesia’s banks are very strong

data centers, keeping the systems up 24/7. People

and very large.

are now very intolerant of systems going down.

McKinsey: Are there unique opportunities in ASEAN for multinational banks?

Michael Zink: The biggest issue that’s emerged

They want them up all the time, every day, no excuses.

A system that’s available 24 hours a day with

today is cybersecurity. We’ve seen it all around

lots of bandwidth that’s totally secure is a very

the world. [These days] bank robbers don’t use

expensive system to build. You need scale. That

guns, they use laptops. They try to hack into our

will be the defining competitive advantage in our

systems. Keeping these data secure is one of our

business going forward. The ability to finance,

biggest challenges and most important priorities.

design, build, and implement those big tech

If we can build these big data networks, we can make them more secure. Scale plays to our strengths. What do we need for that? We need

systems—that’s going to separate the winners from losers.

McKinsey: What about the prospect of a

the free flow of data across borders in a secure

common currency for ASEAN? Is monetary union

fashion. And that’s what we need when it comes

completely off the table?

to liberalization, not just for financial services

Michael Zink: Nobody is dreaming beyond

but for any company in services or logistics: the

their scope right now. We’re not talking about

free flow of data across borders, with strong

political union or monetary union or a single

cybersecurity around it.

currency for ASEAN. It’s simply not at that stage

Technology is a great opportunity. The devices

of evolution. It’s very focused today on the

in our hands—we sometimes take them for

commercial aspects of helping all the countries

granted. But they’re breathtakingly powerful, these

grow. Grow the economies, help small businesses

smartphones and tablets that we all carry around.

develop, create jobs for young people coming

In these big megacities that are now gumming

out of university: [the discussions are] very,

up, it’s hard to move. In Jakarta, Bangkok, or any

very practical. And that’s why ASEAN has been

big city today, traffic’s a challenge. So if you don’t

successful. It’s not only dealing with the practical

have to move the people from where they are to

but also dealing with the achievable.

your bank branch and you can deal with them

Country by country, each of these societies has

where they live, work, and play, you’ve won the

its own way of making decisions. Our approach is

battle.

to understand how it’s done. It’s most important

Can we do it? Of course. Because the devices

for us to understand how those decisions were

people hold in their hands are a mini bank branch.

made and appreciate that things are all moving

We have to build the data systems that can reach

forward.

them and give them what they need. Let them transact, let them get the information, and let 6

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McKinsey

DEVELOPMENTS

Asia Manufacturing News

November/December 2014

HANKOOK DELCAM HOLDS WORLD’S BIGGEST MEETING FOR CAM USERS Delcam’s South Korean joint venture, Hankook

continued expansion into manufacturing and

Delcam, held its 25th User Group Conference at

fabrication and beyond our roots in design,” he

the Hyundai Hotel in Kyeong-Ju on 26th and 27th

stated. “Together with Delcam, we look forward

September. The theme for this year’s meeting was

to accelerating the development of a more

‘Big Jump Up’, a reference to the large increases

comprehensive Digital Prototyping solution and

in productivity being seen by companies adopting

delivering a better manufacturing experience to

software and services from Hankook Delcam.

our customers.”

Over 1,300 attendees set a new record number for

The other presentations during the meeting

the event, reinforcing its position as the world’s

covered the latest developments across the range

largest meeting for CAM users.

of Delcam software for design, modelling for

The meeting was the first major event to be held for Korean users since the acquisition of

manufacture, machining and inspection.

New technology was also described from

Delcam by Autodesk in February. The audience

Hankook Delcam, in particular developments

was, therefore, especially interested in the

in the Hankook Delcam Automation Solution

presentations from Delcam President, Clive

(HDAS) that enables innovation across the entire

Martell, and Buzz Kross, senior vice president

manufacturing process. This novel technology is

for Design, Lifecycle and Simulation products at

attracting great interest from Korean companies

Autodesk.

wishing to improve their productivity by

Mr. Martell said that the acquisition represented Delcam’s own ‘Big Jump Up’. “Autodesk brings to

automating their processes.

The meeting also featured the awards ceremony

Delcam increased financial strength, unparalleled

for the winners of the Korean section of 3nd

expertise in design, and a long history of making

Global CAM Skill Competition, who have qualified

technology accessible to broad audiences.

for the World Championships to be held at

Through sharing our technology and expertise,

Delcam’s headquarters in Birmingham early next

this transaction will transform industries and

year. This competition, which was open to local

improve how the world is designed and made,” he

high school and college students, is held each

commented.

year as part of Hankook Delcam’s support for the

The significance of the deal was also emphasised by Mr. Kross. “The acquisition

development of CAM software skills to meet the needs of the country’s manufacturing industry.

of Delcam is an important step in Autodesk’s asiamanufacturingnewstoday.com

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DEVELOPMENTS

NASMYTH GROUP ATTACHES GROWING IMPORTANCE TO INDIA AS A MANUFACTURING LOCATION Founded at the end of 2003 when Chairman

Reflecting the importance of its contribution to

and CEO, Peter Smith, purchased the UK

the Group’s activities, and the growing demand

company, Bulwell Precision Engineers, Nasmyth

for its services, Nasmyth India relocated to

Group has grown to incorporate the collective

new premises in the Bangalore Millenia Centre

expertise, resources and technology of a portfolio

in the central business district of Bangalore

of specialist, customer-focused, precision

earlier this year. This is an ideal location for the

engineering and related businesses in the UK, the

company. Sometimes dubbed India’s ‘Silicon

US and India.

Valley’, Bangalore is the leading city for India’s IT

The structure of the Group means it is able to offer a wide range of integrated capabilities - design and reverse engineering, precision

industry and the hub for the country’s expanding Aerospace sector.

On June 26th, Nasmyth Group held an

machining, advanced welding and assembly,

inauguration ceremony to celebrate the opening

and leading edge metal surface treatments ‚ as

of these new offices at the ITC Windsor, Bengaluru

well as the facilities to work with a wide range of

hotel where the invited guests were served lunch

materials - from aluminium, titanium, inconel to

and addressed by the Deputy High Commissioner

steels, nimonics and super alloys. The breadth

Ian Felton, Nasmyth Group’s Chairman and

of these capabilities,supported by an ongoing

CEO, Peter Smith, and Nasmyth India’s General

programme of strategic investment, also enables

Manager, Stuart Etheridge. In keeping with local

the Group to serve a diversity of markets ‚

customs, there was a formal “Deep Prajwalan”

Aerospace, Defence, Energy, Marine, Medical,

(Lighting of Lamp) ceremony.

Space and Specialist Automotive.

Nasmyth Group has long recognised that,

Nasmyth India, supported by the Group, is now working closely with its customers on a number

in an increasingly globalised economy, its

of NPI (new product introduction) projects in the

long-term growth depends on having a strong

country. The company has been able to source

global presence. That’s why, in 2013, the Group

a wealth of available graduate engineers and,

established its Nasmyth India Liaison Office.

through its Indian partners, an increased machine

This facility has a key role to play in the Group’s

capacity with which to service the needs of

globalisation programme, providing a range of

aerospace customers globally.

engineering services on behalf of other Group

Talking of Nasmyth Group’s experience in India,

companies, as well as responding to the needs

Stuart Etheridge observed: “As a tier one supplier

of the region’s aerospace, energy, industrial

into the global aerospace supply chain, there are

gas turbine and related industries. In highly

requirements from the primes to expand their

competitive markets Nasmyth India provides

global footprint in to emerging economies.

its customers with the opportunity to achieve a

“Our India Supply Chain strategy is seen to

cost-effective manufacturing platform supported

be the correct approach for our customers’

by the Nasmyth Group’s proven global supply

requirements. Although positioning ourselves in

chain.

India was not an easy challenge operationally, the

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Asia Manufacturing News

November/December 2014

Nasmyth India’s General Manager, Stuart Etheridge.

benefit in having a common language alongside

attended a series of meetings and briefings at UK

legal and commercial sectors being based on UK

diplomatic and Indian Government facilities in

principles, contributed to our success through the

New Delhi and made a number of factory visits

learning curve of trading, import and export in

in Bangalore where Nick Clegg gave his keynote

India.

speech.

“We can confidently say, Nasmyth India has

This was the first UK trade delegation to

established a footprint and is ahead of the game.

India since the country’s elections in May and

With the office in Bangalore, we are able to

was viewed by the Deputy Prime Minister as

continuously improve on our communication with

an important step in forging a new special

customers in India, proving that Nasmyth Group

relationship between the two countries and

can be as responsive and proactive here as in the

opening up new business opportunities for UK

UK and USA.”

companies. In the words of Nasmyth Group’s

Shortly after the opening of the new Nasmyth

Chairman and CEO: “We were delighted to accept

India offices, Nasmyth Group was invited to join

the invitation from the Deputy Prime Minister to

the Aerospace delegation of the UKTI visit to India

join this important delegation. As our decision to

led by the UK Deputy Prime Minister, Nick Clegg.

establish Nasmyth India shows, We share Nick Clegg’s conviction that

During the course of the visit, which began officially on Monday 25th August, the delegation

the country represents a key area of future opportunity for UK businesses.” asiamanufacturingnewstoday.com

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ANALYSIS

A POCKET GUIDE TO DOING BUSINESS IN CHINA

By Gordon Orr

China, a $10 trillion economy growing at 7

land, and capital is having a major impact on the

percent annually, is a never-before-seen force

behaviour of business, leading to a new focus on

reshaping our global economy. Over the past

productivity, even within state-owned enterprises.

30 years, the Chinese government has at times

Progress in bringing more private capital into

opened the door wide for foreign companies to

state-owned enterprises is slow at the national

participate in its domestic economic growth. At

level, with few scale examples, such as the $30

other times, it has kept the door firmly closed.

billion partial privatization of Sinopec’s gas

While some global leaders, such as automotive

stations under way. At the city level, much more

original-equipment manufacturers, have turned

momentum is building, with local governments

China into their single largest source of profits,

selling out of noncore activities such as hotels and

others, especially in the service sectors, have

many manufacturing businesses.

been challenged to capture a meaningful share of revenue or profits.

This article summarises some of the trends

The anticorruption campaign continues aggressively throughout state-owned enterprises, and government has itself become a material

shaping the next phase of China’s economic

brake on growth. Officials and executives are

growth, which industries might benefit the most,

simply unwilling to make decisions that could

and what could potentially go wrong. It also lays

possibly be held against them later. President Xi

out what I believe it takes to build a successful,

has pursued anticorruption as a theme for more

large-scale, and profitable business in China today

than a decade; he is not going to back off.

as a foreign company.

The Chinese middle class—the people who are buying new homes, who today are buying 18

Trends shaping growth and creating new opportunities in China

million cars a year (delivering a third of the global

As the contribution of net exports and real

spend more on services—are critical. Only if they

auto industry’s profits), and who are starting to

estate to economic growth diminishes, the focus

remain confident in their personal economic future

on infrastructure and domestic consumption—as

will they continue to increase their spending and

traditional and new sources of growth for the

become a larger driver of economic growth. By

economy, respectively—rises. Whether or not

2022, more than 50 percent of urban households

the current growth of the Chinese economy is

should be in the middle class (in current US

sustainable depends on the evolution of several

dollars, that means an annual household income

trends.

of $20,000 to $40,000), an increase of more than

Government policy continues to be the critical shaping force. As the ministimulus delivered

100 million households over the coming decade.

China is now more than 50 percent urban, but

in the second quarter of 2014 demonstrates,

10 million to 15 million people a year will still

the government still possesses levers to push

be moving to cities from the countryside. Rural

GDP growth rates up and down quite rapidly.

migrants already in the cities need to be better

In other ongoing government initiatives, the

integrated. City governments need to make their

“marketisation” of prices for electricity, water,

cities more livable, more efficient, and better able

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and comparison of parts and compound structures within production and quality assurance processes.

Asia Manufacturing News

November/December 2014

The devices are used for inspecting components and assemblies, production planning, to integrate their migrants.

“Smart cities” inventory as is a documentation, clichéd term, but China’s cities need well aseverything for investigation and from more efficient mass transit reconstruction of accident sites to better water usage. Investment to deliver or crime scenes. They are also this will be massive, indicating how the employed to generate digital construction of China’s infrastructure is not scans of historic sites. yet complete.

With FARO, 3D measurement Many businesses are coming under a and documentation needs can be new level of cost margin pressure. fulfilled confidently. Asand a pioneer Margins of industrial state-owned and market leader in portable computer-aided enterprisesmeasurement, have fallen by a third over the FARO consistently applies theindustries they compete past four years.

Often the latest advances in technology to in, from steel production to telecom-network make its industry-leading product equipment, are simply growing much more offerings more accurate, reliable, slowly.

By the standards of China over the past and easy to use.

30 years, state-owned enterprises have become

The focus is on simplifying mature industries. This leads to three outcomes: workflow with tools that initiatives on productivity, empower customers, thereby diversification, and globalization.

Thethe latter two are more often dramatically reducing on-site measuring time and lowering conducted on the basis that prior success in overall one costs. industry in China will automatically lead to

causing major disruptions to many sectors in China. Perhaps because consumers are still new to our traditional ways of shopping or banking (only having had modern shopping malls for a decade in many cities), consumers are very willing to switch to buying online. When the experience of going into a Chinese bank branch is so poor, it’s not surprising that consumers would rather transact online.

Almost no consumer-facing business in China

can succeed without an online and offline strategy success in the next industry and country.

Worldwide, approximately today. Mall owners are struggling to find a new 15,000 customers are selling operating Multinationals to Chinese consumers more than of economic model. Retailers are trying to bring often30,000 continueinstallations to perform extremely well, using FARO’stheir systems.

The company’s order to their nationwide distribution chains to skills in consumer insights, branding, and global headquarters are located exert control over the price at which their products pricing to differentiate from local companies in Lake Mary, Florida, with its are sold online. Online wealth-management that, while large, are still developing world-class European head office in Stuttgart, products have been able to gather $100 billion functional Multinationals selling to Germany and itscapabilities.

Asia-Pacific dollars in less than 100 days, forcing traditional government, at the other end of the spectrum, find head office in Singapore.

FARO has branch locations in Japan, banks to increase rates on much of their deposit market access much more challenging.

China, India, Korea, base. The impact on employment is just starting ChinaSouth is home to some of the world’s largest, Thailand, Malaysia, Vietnam, to appear, but many millions of sought-after most successful, and innovative Internet-based Canada, Mexico, United white-collar jobs will be eliminated in the next few companies. The pace at which Chinese consumers Kingdom, France, Spain, Italy, years. embracing the Internetuis at the cusp of Poland,are and The Netherlands.

Joseph Arezone, Senior Vice-President, Managing Director for FARO Asia Pacific

Community Planning, Sustainable Business and Waste Minimisation Strategies www.envision-nz.com

asiamanufacturingnewstoday.com

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ANALYSIS

The risks This growth is not risk free. Perhaps most critically, Chinese consumers remain relatively

Industries with potential for faster growth in the next decade Many of the industries with the highest growth

unsophisticated. A loss of confidence as a result

potential in China over the next decade are in the

of a default in a wealth-management product, or

services sector, but not all. For example, energy

a decline in housing prices in a specific city, could

and agriculture will have segments with very rapid

easily become a nationwide contagion creating a

growth. Below is a very brief snapshot of where

vicious cycle of consumers who withdraw from

we see opportunities.

spending, thereby worsening market conditions.

E-tailing The online share of retail in China, at 8

One has to be over 40 to remember a recession in

percent in 2014, is higher than it is in the United

China.

States and is not close to reaching saturation.

Other risks to growth include geopolitics,

Increasingly, this is conducted through mobile

especially China’s relationship with Japan, where

devices. The payments system is in place, logistics

the government’s credibility depends on being

are improving, and online providers are trusted.

seen to do the right thing by the Internet classes.

Many retailers will adapt, often with far fewer

A final and rising risk is the underemployment of

physical locations. Malls will have to become

graduates. Of the seven million graduates each

destinations for services beyond retail.

year, maybe only three million find jobs that

Logistics. Modernization of supply chains is a

require a degree. The remainder discovers that

key enabler of increasing productivity in many

their aspiration of joining the middle class and

sectors in China today. Until recently, most goods

owning a home and a car is possibly out of reach

were carried by individual truck owner–operators.

permanently. They are a large, dissatisfied, and

As express parcels become a $100 billion

growing segment of society.

industry on the back of e-tailing, e-commerce companies themselves are investing billions in modern warehouses and trucks. Alibaba alone

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Asia Manufacturing News

is committed to spending billions of dollars on

November/December 2014

Wealth management. China represents more

its own logistics. Third-party carriers such as SF

than 50 percent of Asia ex-Japan growth, with

Express are rapidly becoming regional leaders on

high-net-worth assets expected to reach $16

the back of growth in China. Even in agriculture,

trillion by 2016. The more than one million

massive investment is under way in cold storage

high-net-worth individuals in China remain

and cold carriage to reduce waste and provide

generally unsophisticated as investors, seeking

higher-quality food products to China’s middle

advice on how to broaden their investment

class.

portfolio both onshore and offshore.

Education. Nearly two-thirds of registered

Entertainment. China is the second-largest

kindergartens in China are privately owned.

movie box office market in the world, despite the

Private universities are expanding. Traditional

fact that tickets cost upward of $10 and DVDs are

and online vocational learning schools are

still available for $1. In 2013, more than 1,000 new

publicly listed multibillion-dollar businesses.

theaters opened, yet admissions per capita are

Niche businesses, such as preparing children to

less than one-fifth of South Korea’s.

apply to US, UK, and Australian high schools and

IT Services. Finding the chief information officer

universities, are also flourishing. The amount

in a Chinese company is often hard, especially in

the Chinese are willing to spend on tutoring and

a state-owned enterprise. Historically regarded

support for their children is almost unlimited. As

as simply a support role for the business, CIOs

the middle class becomes wealthier, the increased

were pushed three to four levels down in the

ability to spend will drive market growth.

organization and attracted little talent (which

Healthcare. More than 1,500 new private

instead went to Internet start-ups). A typical

hospitals opened in China in 2013, a number

Chinese company spends only 2 percent of

of which are 100 percent foreign owned. The

revenue on IT versus international benchmarks of

shortcomings of the mainstream public healthcare

around 4 percent. As these companies struggle to

system in China are not likely to be overcome

bring technology into the core of their operations,

quickly. Patients are looking for solutions where

they need massive amounts of help to do so. The

both cost and quality are more certain, and private

cost of good IT talent is already soaring. Most

and foreign companies are being encouraged

Chinese companies will be unable to solve their

to deliver. There is a related boom in supplying

technology challenges for themselves.

equipment to these new facilities.

Tourism. Available hotel rooms in China have

Clean energy. China already produces 60 percent of solar panels and wind turbines. Increasingly,

tripled over the last decade. Four million mainland

it is consuming this output domestically. For

Chinese visited South Korea in 2013; four million

example, 11 gigawatts was installed in large-scale

visited Thailand. China’s middle class expects to

solar farms in 2013, and this will grow an

take three to four weeks of vacation each year

additional 30 percent in 2014. China is also

and no longer accepts visiting the overcrowded,

investing heavily to exploit its shale-gas assets

overexploited traditional domestic destinations.

and develop cleaner coal technologies.

Disneyland’s opening in Shanghai in 2015 could

Agriculture. China does not feed itself

trigger a new wave of investment to create

today—certainly not with the kind of quality

higher-caliber resorts.

and value-added products that the middle class seeks—but it will be challenged to do so in the asiamanufacturingnewstoday.com

13

ANALYSIS

future. Continual food-safety crises illustrate

sees international partners as little more than a

the challenge. For many successful technology

temporary accelerator of growth.

investors, such as Legend Holdings, agriculture is

• Increasingly, China’s mind-set is that there are

the new Internet. Chinese companies are investing

fewer and fewer things to learn from foreign

in agriculture outside of China at scale, from Chile

partners. China doesn’t need the capital, it

to the Ukraine, for China. They also invest in

can hire the skills, and it has the customer

China, especially in value-added products—such

relationships, insights, and, most critically, the

as fruit and the production of frozen ready meals.

government relationships. Even state-owned enterprises now hold this mind-set.

Doing business effectively in China Often in China, the fundamental barrier to

• Simply stating that “this is how we do it in America/Germany/Japan” will not win friends.

success is less about identifying the opportunity

What one can do today is make a long-term

and more about the inability to execute the

commitment to help a Chinese joint-venture

plan more effectively than others. One’s own

partner expand internationally. This may well be

management team, the team’s relationship

at a cost to the international partner’s existing

with corporate headquarters, the role of and

business and needs to be seen as part of the

relationship with joint-venture partners—all play

total China investment.

a key role. Joint ventures have been part of doing

• Establish from the outset a clear hierarchy of

business in China for more than 30 years. In many

who interacts with whom at the joint-venture

sectors, they remain the only way to participate,

partner and with relevant government officials.

often in a mandatory minority position. But there

Chinese partners like the certainty this provides.

are a number of clear lessons:

Ensure that the committed executive shows

Establish the right strategic positioning.

• If regulations require you to have a joint-venture partner and a minority position today, assume

up for board meetings and the like, and don’t delegate.

Place a trusted senior colleague in China with a

it will be that way forever in the core business

commitment to have him or her be there for the

activities. From automotive to financial services,

long term.

the lesson is that it won’t change. If that model

He or she is your go-to person when things get

is not attractive today, do not invest in the hope

volatile in China, someone whose viewpoint the

that it will change.

global management team will trust, and someone

• Follow the evolution of government policy

the head of your joint-venture partner will also

and align your stated intent with such policy

learn to trust. Usually, this person will be very

as far as possible. Using the words from

strong in people development, with skills almost

government statements in your own statements communicates your commitment to China.

• Be clear if you are in China for the opportunity in China, or if you are in China for the opportunity that China creates for you in the rest of the world. This can lead to a very different presence in China.

Many potential joint-venture partners are highly successful and very large within China, who 14

asiamanufacturingnewstoday.com

Asia Manufacturing News

November/December 2014

overlapping with a head of HR. And he or she

even while not bringing core IP into China.

will need to be 100 percent trusted to enforce

Secondly, consider if the cost of loss of IP could

compliance and to role model required behaviors.

be contained solely in China. Again, in technology,

Typically, make this person chairman of your Asia

multinationals have aggressively and successfully

or China operations, as senior a title as possible.

sued Chinese companies outside China that

Talent acquisition and development, at all

have taken IP from multinationals in China and

levels, remains highly time consuming and

used it outside China. China is evolving fast

often frustrating for multinationals. Loyalty to an

on IP protection, with more and more Chinese

employer is often low on an individual’s priority

companies suing other Chinese companies. It

list. Turnover will likely be high and should be

is becoming increasingly likely that a Chinese

planned for.

partner will recognize the value of IP and be

• Hiring midcareer executives is increasingly

willing to protect IP developed jointly with them.

common, and in almost all industries the

A practical means of making it harder for global

available talent pool is deepening. Both Chinese

IP to leak into China is to establish a stand-alone

and global search firms have rapidly growing

IT architecture for China that has no access to

businesses that serve local and international

servers at headquarters.

companies. It is imperative to complete

China is likely to be a more volatile economy.

thorough background checks. Getting people to

Taking a through-cycle viewpoint rather than a

leave quietly in China often involves being silent

“quarterly performance versus plan” mind-set

on the cause of separation.

is key to motivating your China team and to

• At the entry level, many graduates are available.

convincing them that you are committed to China

However, many lack workplace-relevant skills,

for the long term. Indeed, downturns in China

including even those with MBA qualifications,

have proved to be attractive moments to double

which are more often bought than earned

down. When partners or governments are under

and often come with a lack of self-awareness

stress, new partnerships and licenses can become

that can lead to a mentality of entitlement.

available to foreign partners that are willing

As a result, many corporations hire and then

to step up and invest. Even after 30 years, few

weed out aggressively during the initial

multinationals adopt this mind-set.

probation period. Once on board, retention

Don’t do anything to compromise your global

of high performers often depends on a highly

brand and reputation. If you can’t do business

variable compensation structure and dismissing

the way you want to, then don’t do it at all. There

underperformers.

may be opportunities to make money in the short

• While you will likely have to work with “sons

and medium term, but shortcuts will eventually

and daughters” of government officials

be made transparent. The Chinese government

as business partners, it does not mean

will be well aware of how you are operating,

that you have to employ them. Outside of

and the anticorruption campaign is not going

some companies in financial services, few

to go away. Don’t assume that because your

international firms do.

suppliers are international companies that they are

If protecting intellectual property (IP) in China

automatically operating to the global standards

is a concern, consider it very hard if that IP needs to actually come to China. Some companies in the technology sector have been very successful,

you expect; verify that they are. *Gordon Orr is a director in McKinsey’s Shanghai office. asiamanufacturingnewstoday.com

15

CASE STUDY

PLM HELPS AUTOMAKER REDUCE PRODUCT DEVELOPMENT CYCLE BY THIRTY PERCENT Aiming high with PLM

a year; and achieve an annualized sales revenue

Founded in 1996, Beiqi Foton Motor Co., Ltd.

of ¥500 billion ... thus ranking among the world’s

(Foton) is China’s largest commercial automaker

top 10 automakers and becoming an international

and features a complete range of products.

mainstream vehicle producer.

Currently, Foton possesses more than ¥30

In implementing its strategy, Foton is capitalising

billion worth of assets, employs a workforce

on the product lifecycle management (PLM)

of nearly 40,000 people, and has a brand value

technology.

of approximately ¥42.865 billion. (¥ = RMB.) In 2012, it was the top-selling commercial vehicle manufacturer worldwide.

Foton is a backbone enterprise in China’s auto

Coping with increasing amounts of data In the highly competitive automobile industry,

industry with regard to independent brands and

achieving faster time-to-market is crucial.

in-house innovation. Since its founding, Foton

This means accelerating innovation to make

has amazed the world with its rapid development

products that appeal to consumers, leading to

(at “Foton speed”), and accumulated an output

increasingly complex vehicles. The resulting

and sales of over five million vehicles, including

explosion of product data types and volume

ranking first in the international commercial

means that the classic management process is

vehicle market for two consecutive years. Today,

no longer adequate. Foton faced problems, such

Foton has ten prominent brands: Auman, AUV,

as long research and development (R&D) cycles,

Aumark, Ollin, Tunland, MP-X, Midi, SUP, View and

data errors and losses due to inconsistent data

Forland.

versioning, poor data communication between

According to the “Foton 2020” strategy, a “5+3+1” plan is now in full swing. Foton is building factories with an annual output of 100,000

departments and untimely changes and updates that seriously hindered development.

“In 1998, GM took the lead globally by

vehicles per factory in five countries: Russia, India,

appointing a chief information officer (CIO) for

Brazil, Mexico and Indonesia.

product development to compile PLM strategies

The company plans to expand its market share

and promote PLM in factories all around the

in the three most developed regional markets of

world,” says Lu Qinzhu, director of the R&D

North America, the European Union and Japan/

Engineering System Section in the information

South Korea, and is building a global headquarters

technology (IT) Department at Foton Motor. “As a

as well as innovation, business management and

result, the time consumed from design to launch

operations centre in China in order to maintain its

of a new vehicle at GM was cut from 42 months

leadership in the Chinese market.

to 12 months. This case inspired us. Being inno-

By 2020, Foton plans to become an international

vation-oriented at Foton, we realized that PLM

automaker that integrates fashion, science and

was a powerful and crucial tool that would enable

technology with environmental protection and

us to focus more on research, development and

humanity; manufacture and sell four million cars

design.”

16

asiamanufacturingnewstoday.com

Asia Manufacturing News

Eliminating departmental isolation and building design experience into the system “NX, widely recognized in the mold industry, enjoys incomparable advantages in modeling,

November/December 2014

to product design, helping the company stay ahead in introducing new products to the market.

Establishing a uniform platform “Switching from disparate product development

simulation and digital machining,” Qinzhu says.

systems to an integrated, digital approach is just

“The rich experience of Siemens PLM Software in

an early step in a PLM project. Without a uniform

the auto industry, and its great understanding of

platform to manage electronic data, it would be

future trends and engineering consulting services

impossible for an enterprise to hold on,” Qinzhu

provide the kind of support Foton needs to

says. “With our enterprise-level information

pursue international development. That, plus the

planning, we have developed a clear map of

advantages embedded in NX, led us to decide to

information steps. Our next includes establishing

work with Siemens PLM Software.”

a uniform platform to manage voluminous R&D

Using NX™ software, Foton eliminated

data, and to interface with enterprise resource

information isolation between departments, and

planning (ERP), supply chain management (SCM)

incorporated engineers’ design experience into

and other systems in later stages to smooth out

the system, saving time by reducing redundant

the whole process.”

data entry. This significantly reduced training time; enabling engineers to skillfully apply the software

Foton chose Teamcenter® software, also from Siemens PLM Software, to help the company asiamanufacturingnewstoday.com

17

CASE STUDY

create a uniform solution to manage its data

“Based on the deepening application of the

generated using NX and other systems. Foton

PLM technology, Foton has realized trans-regional

has formed a knowledge base comprising

management, collaborative design and

design and analysis databases. The company

production, data sharing, and uniform business

has also established a complete R&D process,

processes and standards between its headquarters

with standardized tasks and work templates,

and branches,” says Qinzhu. “This is in addition

incorporating knowledge into the R&D process.

to the systematic management of R&D data. By

This enables more convenient sharing and better

adopting two main vertical and horizontal lines

data retrieval.

to manage product data effectively, the whole

Foton owns such prominent brands as Auman,

process – from product concept, engineering

AUV, Aumark, Ollin, Tunland, MP-X, Midi, SUP,

R&D to resources releasing – is now effectively

View and Forland. Based on the uniform auto

under control in PLM. After releasing resources,

platform, with the establishment of different

R&D data is formally distributed to downstream

departments and sites that are able to effectively

production and sales systems, reducing the

share data and collaborate, the company is now

product development cycle by 30 percent and the

more agile. This improved flexibility enables

re-work load by 20 percent.”

Foton to more quickly respond to dynamic market preferences, as well as build greater quality into its products.

Supporting better decisions “We plan to introduce project management and knowledge management systems as our next

PLM delivers results Siemens PLM Software provided Foton with

step,” says Qinzhu. “As soon as suppliers are included in the project management system, we

a complete range of computer-aided design

will be better able to control mold development

(CAD), computer-aided engineering (CAE),

and review, as well as more effectively manage

computer-aided manufacturing (CAM) and product

costs and schedules. With design navigation,

data management (PDM) solutions. The software

designers can make inquiries through the

has enabled Foton to build a comprehensive PLM

database, helping improve the output of new

platform, allowing it to realize close integration

designers.

during all stages of the product lifecycle.

With Teamcenter, Foton is now effectively

“The transformation of the whole IT system to a knowledge management-based approach

managing its comprehensive product data. The

will enable us to make better decisions. With

use of Teamcenter has empowered workers to

the continuing development of Foton’s global

collaborate through the integration of upstream

business, attaining IT system support is also

and downstream systems. Qinzhu notes that this

a major goal. Finally, providing support for

leads to smooth and accurate data circulation

commercial vehicles, passenger vehicles and

in the company and shortens the product

financial systems is an important part of Foton’s

development cycle.

future. We plan to expand PLM from design to

In addition, Foton has implemented the welding process planning and simulation functions of Siemens PLM Software’s Tecnomatix® portfolio to construct a digital plant.

18

asiamanufacturingnewstoday.com

process, in both depth and breadth.”

Asia Manufacturing News

November/December 2014

asiamanufacturingnewstoday.com

19

EVENTS

INAUGURAL MANUFACTURING TRADE EVENT WELLManufacturing Myanmar 2014 concluded in

Department, Myanmar Industries Association

Yangon amid appreciative local and international

(MIA) and Myanmar Engineering Society

reception.

(MES). Together, they applauded the staging of

The newest edition to Singapore Exhibition

Manufacturing Myanmar as the ideal platform for

Services’ series manufacturing technology

Myanmar’s local manufacturing community to

events and the organiser’s first breakthrough

learn international best practices. “Manufacturing

into Myanmar, Manufacturing Myanmar 2014

Myanmar 2014 is tailored to meet the needs of

has made its mark as the only dedicated

local industries and manufacturers, which includes

manufacturing solutions trade event staged in the

good working systems and the correct technical

country that brings technologies from well-known

capabilities. The show presents viable options to

international brands as well as notable small

upgrade existing operations and processes, and

and medium sized enterprises. The trade event,

I am confident that it will bring new technologies

which concluded at the Myanmar Convention

to inspire not only our local SMEs, but the private

Centre (MCC) on Saturday 4 October 2014,

sector as a whole, helping to generate more

was well-received with over 2,200 attendees,

business opportunities. Manufacturing Myanmar

comprising special guests, trade visitors and

certainly serves as a baseline to boost the

members of the press. Aside from perusing the

development of partnerships and accelerate the

exhibits, local visitors could tap the knowledge

integration of Myanmar’s SMEs into global supply

of international manufacturers and suppliers

chains,” comments H.E. U Maung Myint, Union

on how to improve their current operations to

Minister, Ministry of Industry.

reach higher productivity. A Warm Opening

Contributing to Myanmar’s industrial

Reception The official opening ceremony of

transformation Manufacturing Myanmar 2014

Manufacturing Myanmar 2014 greeted many

provided a launch platform for companies

Myanmar’s senior Government officials, including

to promote manufacturing technology that

H.E. U Maung Myint, Union Minister, Ministry of

enables the local sector to automate operations.

Industry; H.E. U Soe Min, Minister for Ministry

TRUMPH’s TruMark 2130, Asia Masima’s CNC

of Agriculture and Livestock Breeding of Yangon

Vertical Turning Lathe Machine, YG-1’s Gold-Drills,

Regional Government; H.E. U Kyaw Soe, Minister

Cairnhill Metrology’s Surfcom Flex, and Optical

for Ministry of Forestry and Energy of Yangon

Gaging’s OGP(R) SmartScope(R) Zip Lite

Regional Government; H.E. U Than Myint,

Benchtop System are examples of the display

Minister for Ministry of Planning and Economic

of machines, test and measurement equipment,

Development of Yangon Regional Government;

cutting tools, and automation systems shown at

H.E. U Nyan Tun Oo, Minister for Ministry of

the event. These solutions are designed to help

Economic and Industry of Yangon Regional

local manufacturers achieve higher productivity,

Government; and U Zaw Maung, Minister for

raise standards of manufacturing, play a stronger

Ministry of Rakhine National Ethnic of Yangon

role in the acceleration of the country’s industrial

Regional Government. Also present at the

transformation. Exhibitors also met with

ceremony were senior officials from Ministry of

potential local agents and distributors, through

Commerce of Yangon Region, SMEs Development

their interactions with local buyers, they gained

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asiamanufacturingnewstoday.com

Asia Manufacturing News

November/December 2014

-RECEIVED acute insights into the local manufacturing landscape and current needs. On their participation at Manufacturing Myanmar 2014, Dr. Hans-Peter Laubscher, Managing Director-Asia Pacific, TRUMPF Pte Ltd says,

Mr. Myint Oo of Royal Marine Engineering Group

“TRUMPF joins Manufacturing Myanmar

said, “The show was excellent and I was glad

2014 to create brand awareness and promote

I made the trip here. I was able to see some of

our technological capabilities in this new and

the products that I was in need of and was able

upcoming market. We are also here to look for a

to meet the sellers personally to find out more

business partner to work with in reaching out to

and negotiate a business deal. I hope that the

the local manufacturing community.

next edition will feature more exhibitors and

“I am pleased with the quality of the visitors

products that can meet our needs.” “Making an

who came to Manufacturing Myanmar 2014 and

investment to automate operations with the use

we have received strong interest in our marking

of machines and various supporting equipment is

laser system TruMark 2130 as well as our laser

certainly a stride forward in unlocking Myanmar’s

cutting and punching technology. We will return

manufacturing potential. Creating a platform for

again for the next edition of Manufacturing

the sharing of knowledge and best practices, and

Myanmar.” For Myanmar, it is very important

presenting business opportunities for the local

to cultivate a productive workforce to drive

industry, and providing international companies

the economy forward. With skills development

a gateway into the country make up the essence

and the adoption of technologies in mind, local

of what Manufacturing Myanmar is all about,”

manufacturers were able to acquire knowledge on

says Ms. Lindy Wee, Deputy Chief Executive of

global best practices in operations and technology

organiser Singapore Exhibition Services. “We

applications, and tap expertise readily shared by

are heartened by the local community’s positive

their international counterparts. Commenting on

response toward the event, and very honoured to

his visit to Manufacturing Myanmar 2014, Mr. Win

play a part in the progression and prosperity of the

Naing, Engineer at Stream Engineering Group

country’s budding manufacturing industries,” she

said, “It was definitely a fruitful trip as I got to

adds. The next edition of Manufacturing Myanmar

see many manufacturing related machineries,

will be held from 14 - 16 October 2015 at the

technologies and products from so many foreign

Myanmar Event Park, Yangon.

exhibitors all in one place. I will definitely come

For more information, please visit

back again next year.” Sharing similar sentiments,

www.manufacturingmyanmar.com. asiamanufacturingnewstoday.com

21

SUBHEADING THE CONNECTED

INDUSTRIAL ENTERPRISE - John Watts, Unlocking data to enable a Connected Enterprise is vital to toda

Information is power. Globalisation and other competitive pressures are accelerating the need for m their enterprises. Better information sharing drives better decision making, exposes process ineffici

Seamlessly and securely enabling this type of information sharing across workers in a context

process by entering the phase most appropriate for their organisation’s needs.

that is meaningful for each role – regardless if they are located at a manufacturing site or are part of the supply chain – creates a ‘Connected Enterprise’.

Enabling-information innovations are burgeoning. The advances in evolutionary technologies – like the Industrial Internet of Things (IoT) and the proliferation of smarter field devices, big data and analytics, virtualisation, and mobility – are facilitating manufacturers in pursuit of the Connected Enterprise. By embracing

Achieving a Truly Connected Enterprise As operations move further into the information

these technologies, manufacturers are better

age, three components are vital to achieving a

able to harness the most underutilised asset they

truly Connected Enterprise:

have: their own data. This erstwhile intangible commodity is the key to better understanding operational performance for improved productivity, time to market, asset optimisation and quality control.

The information-enabled Connected Enterprise is a more competitive enterprise. This is the

1. Standards-based Industrial EtherNet/IP™ Network Infrastructure A Connected Enterprise is not truly ‘connected’ without a common network infrastructure that facilitates communications between control systems and the enterprise network.

next industrial revolution; creating tremendous

EtherNet/IP helps enable this network

opportunities for those willing to embrace it and

convergence through the use of standard

great risks for those not preparing a strategic

Ethernet and Internet Protocol (IP) technology and

response.

facilitates the following: • Convergence of multi-discipline application such

Steps towards Becoming a Connected Enterprise

as discrete, continuous process, batch, drive,

How can manufacturers move from discussing

supervisory information, asset configuration/

and theorising their Connected Enterprise to rationalising and operationalising it?

Building a Connected Enterprise involves people, decisions and processes. One question often posed is ‘how do I start on the journey

safety, motion, power, time synchronisation, diagnostics and energy management • A future-ready network design that is based on standard IT technology for increasing sustainability and reducing risk of deployment • Better asset utilisation and optimisation through

towards becoming a Connected Enterprise?’ The

a common network infrastructure — managing

answer to this can be found by understanding the

energy usage, equipment reliability and

Manufacturing Maturity Model, which is based

longevity, and expanded capacity from existing

on five stages – manufacturers may initiate the

assets

22

asiamanufacturingnewstoday.com

Asia Manufacturing News , Regional Marketing Director, Asia Pacific, Rockwell Automation

November/December 2014

ay’s manufacturers

manufacturers and industrial operators to improve how information is shared across iencies, facilitates collaboration and uncovers new competitive opportunities.

The information delivered by the network also

to reduce maintenance and energy costs. From

helps executives to plan strategically – scheduling

an operational standpoint, the cloud enables

production within their portfolio of facilities based

manufacturers to innovate ways to leverage

on performance trends, logistics patterns, market

their information – including managing remote

demands, etc.

assets with monitoring/alerting; observing process performance or energy expenditure;

2. Converting Big Data into Working Information Capital McKinsey & Company research highlights that

and collaborating with customers and supply-chain partners. IoT-enabled devices connected to a common converged network

manufacturing generates more data than any

can adjust automatically to changing operating

other sector, storing an estimated two exabytes (or

conditions and alert operators to maintenance

two quintillion bytes) of data, just in 2010 alone.

needs; therefore, avoiding costly unscheduled

Controllers, sensors and other devices generate

downtime.

data – from machinery performance and energy

• Mobility – Given most business employees

consumption to processing variables and material

have a smart mobile device, allowing

use – at every point in the production process.

plant workers and management to access manufacturing data on any tablet or smartphone promotes mobility; so all authorised personnel can tap into applications and information on-the-go.

Capturing data is fundamental, but data without

• Virtualisation – Untethering hardware from

context is not an asset. Converting data into

its operating system is increasingly being used

working information capital and putting it into

in manufacturing. This reduces dependency

context for workers requires expert guidance.

on physical servers and other hardware,

Furthermore, creating working information capital

and reduces energy costs at the plant sites.

across companies can assist manufacturers to

Virtualisation also increases machine reliability

optimise life-cycle processes, better respond to

with reduced downtime, offers lower-cost and

changing customer needs, and reduce inventory.

high-availability back-up solutions, and allows

It also can enhance work-flow management for

multiple instances of an operating system with

more demand-driven production lines and supply

independent applications to run on a single

chains.

piece of computer hardware.

There are disruptive technologies that can both capture data and share information to advance collaboration and operating efficiencies. The

3. Security With network convergence and the connection

following disruptive technologies are the most

of previously disparate systems, the attack surface

relevant to manufacturers:

increases. Therefore, security must be woven into

• Cloud Computing – Moving software

plant-floor operations – including the network

applications to an on-premise or off-site data

infrastructure, new and legacy control systems,

centre can free up a manufacturer’s IT footprint

machinery and devices – as well as across every asiamanufacturingnewstoday.com

23

SUBHEADING person, policy and procedure throughout the company. In addition, it is vital to include vendors or suppliers as part of the organisation’s security protocol, since the firm’s network security is dependent on their network security.

How Industrial IoT Can Help Manufacturers Compete Improving connectivity across the industrial enterprise’s operations delivers four significant benefits: 1. The ability to integrate information across IT

Conclusion The accelerated connection of operations technology (OT) to information technology (IT)

and control systems enables manufacturers

enables unprecedented collaboration across

to better coordinate their operations and

the business, linking processes and facilities to

communications from the plant floor to the

suppliers and customers in new ways. More and

corporation. By collecting and coordinating

more manufacturers, industrial operators and

large volumes of data and ubiquitously sharing

OEMs are taking advantage of real-time decision

it in the form of actionable information for

making as they become Connected Industrial

different contexts, employees can connect

Enterprises.

across functions – empowering them to

In a perfect world, manufacturers would be able

collaborate and make more effective data-driven

to identify up front all of the data that they want

decisions with greater agility, increased

to be mining from operations and the information

consistency and lower total cost of ownership.

that they want to deliver in reports. By doing

2. Supply-chain integration boosts

so, they would prevent retroactive changes or

communications with suppliers, whilst

refinements to the system after it is deployed.

providing greater insight into deliveries,

Though it is a goal worth striving for; keep in mind

scheduling changes, orders and other issues

the Connected Enterprise is a continuous-improve-

for optimised inventory management and faster

ment journey, so be prepared for it to continue to

time to market.

evolve.

3. A facility- and enterprise-wide view into asset performance, avoidance of unplanned shutdowns, and optimisation of maintenance resources can help plant managers to improve asset utilisation and increase production.

4. Synchronising business processes and work flow can produce the real-time and historical data needed to ensure compliance and improve sustainability metrics, and lower overall corporate risk.

24

asiamanufacturingnewstoday.com

John Watts, Regional Marketing Director, Asia Pacific is responsible for all regional marketing functions including commercial marketing, commercial engineering and product business management. John also has responsibility for sales operations and sales competency.

John has 18 years of experience in automation and process control sales and marketing. Apart from his time at Rockwell Automation, John has held sales and sales management positions with Yokogawa. He joined Rockwell Automation in 2006 as Manager, Process Solutions, Asia Pacific. From 2010 he held the position of Director, Integrated Architecture for Asia Pacific. In this role he had responsibility for business management and marketing of Integrated Architecture products including PLC / PAC controllers, motion control, software, operator interface and condition monitoring.

He holds a Masters in Business Administration from Melbourne Business School and a degree in Electrical and Electronic Engineering from the University of Melbourne. John is based in Singapore.

DEVELOPMENTS

Asia Manufacturing News

November/December 2014

IN-HOUSE GRINDING KEEPS TIGHT CONTROL ON QUALITY Samsung Machine Tools (SMEC) new production

with surface flatness and smoothness the prime

facility in Gimie city South Korea has the latest

considerations. Flatness and straightness of the

surface grinding technology in their large bridge

ground surface determines the final machine

type machine bed grinding machines. These

accuracy with usual values in the low micrometer

impressive machine precision grind the box

(um) range for CNC machine tools. Surface finish

slideways of the SMEC range of premium CNC

determines the smoothness in the motion of the

machine tools. Moving these large machines for

sliding components which has a direct effect of

the original Samsung factory to the new location

the traversing speed in feed and rapid motion.

took a considerable effort as each grinding

Smooth motion also effects machine tool accuracy

machine weight is over 60 tons. The machine are

with the acceleration and deceleration of axis

disassembled into smaller parts for road transport

components. If the initial start of the motion is not

then reassembled and bolted on to concrete

smooth then additional load is placed on the ball

foundations at the new factory. Once in position it

screw and jurking can occur as the ball screw load

can take up to 4 weeks to level the machines with

fluctuates at low axis traverse speed.

laser alignment.

The high level of surface grinding accuracy

With their own in house grinding capability

achieved by Samsung Machine Tools allow the

the surface grinding quality control can be kept

axis sliding components to move accurately and

to a consistant and repeatable level that can be

smoothly to provide their machine tools with a

difficult to obtain through out sourcing this work

high cutting precision and finish.

type of precision process. On large lathes and

For more information on the Samsung Machine

milling machines this grinding accuracy becomes

Tools range of precision machine tools contact

even more important as large machine tools are

Phil Robinson and Quentin Rowe at Revolution

expected to have the same accuracy as smaller

Precision Machinery

machines with less axis travel.

www.rpmcnc.co.nz

Surface grinding of the box slideways is an

Phone AKL 265 0380

Email: sales@rpmcnc.co.nz CH’CH 960 0892.

important part of machine tool manufacture

asiamanufacturingnewstoday.com

25

EVENTS

COUNTDOWN BEGINS TO LABELEXPO SOUTH CHINA

The countdown is on as Labelexpo South China prepares to return to the Pazhou Exhibition Center in Guangzhou between 3-5 December 2014.

Formerly known as the South China Label Show,

Soontomax Label Material Co, UPM Raflatac,

the new look expo is set to underline its position

Weifang Donghang Graphic Technology Inc,

as the region’s largest event for the label and

Xeikon, Zhe Jiang Wei Gang Machinery Co and

package printing industry with over 150 exhibitors.

Zhongtian Machinery.

Showcasing the very latest in new printing

John Davy, divisional director of Labelexpo

technologies and materials, Labelexpo South

South China commented: “It is no wonder that we

China will also offer a live Technology Clinic and

have decided to rebrand the event as Labelexpo

conference program that have been expertly

South China following the meteoric success of

designed to keep South Chinese printers/

our first two editions. The show has very quickly

converters ahead of their competitors. Show

and convincingly become the must see event for

visitors will be able to learn about how to add

printers looking to grow their business, contacts,

value to their business, create new opportunities

expertise and success. China is the world’s largest

for clients, boost efficiency and productivity,

and fastest growing emerging market and with

reduce costs and increase profits.

nearly 60% of China’s total printing output coming

Aimed at label, packaging and general printers,

out of Hong Kong and Guangdong Province,

brand owners and label and packaging designers,

Labelexpo South China is perfectly positioned to

it is expected to attract over 5,000 visitors. The

serve the specific needs of South Chinese printers

exhibition will again feature some of the industry’s

operating in this lucrative growth sector.”

leading Chinese and international press and

Entry to the show is free and visitors can

material manufacturers with exhibitors including:

pre-register by visiting www.labelexpo-south-

Brotech, Label Source, Nuova GIDUE, OMET,

china.com.

26

asiamanufacturingnewstoday.com

Asia Manufacturing News

November/December 2014

THE BUSINESS OF NUTRACEUTICALS

Vitafoods Asia Strengthens its Position in the Nutraceutical Industry

Singapore: Vitafoods Asia, the Pan-Asian event dedicated exclusively to the nutraceutical industry, recently concluded its fourth edition on

Blackmores, Korea Yakult, Tate and Lyle, and a number of leading distributors.

As the Asian nutraceutical market continues to

a high note, reinforcing its status as the definitive

gain strong interest on the international stage,

exhibition for the market.

industry players expect the region to increase in

More than 170 suppliers from all over the

dominance. Analysis by Frost & Sullivan confirms

world, including ADM, Chr. Hansen, Epax,

this, as the Asia Pacific region generated the

Huisong Pharmaceuticals and Malaysian Biotech

largest demand for the global nutraceuticals

Corporation, showcased the latest nutraceutical

market in 2013, contributing to 37% of total market

innovations in ingredients, raw materials, as well

revenue, which is valued at US$175 billion.

as functional food and drinks during the two-day event.

Chris Lee, Portfolio Director, Vitafoods, said, “The Asian nutraceutical market has performed

Held in Hong Kong’s AsiaWorld-Expo from 3

extremely well in the last decade and there is every

to 4 September 2014, Vitafoods Asia welcomed

indication, both empirical and anecdotal, that Asia

a total of 2,474 trade professionals from across

will continue to lead the global market in the years

the region, which represented an 11% increase in

ahead. The show is well poised to support the

visitor attendance. This year, a large proportion

region’s growth, and we look forward to bringing

of visitors were senior decision-makers, including

more of the industry together to help them realise

executives from companies such as Danone,

the full potential that the market possesses.” asiamanufacturingnewstoday.com

27

EVENTS

Professional and Specialised Trade Event Exhibitors at this year’s event were pleased with

Visitors echoed the exhibitors’ sentiments on how the show has continuously improved over the years, cementing its reputation as the Asian

their decision to participate, citing the show’s

hub where the finest suppliers of the nutraceutical

specialised audience, the focus on doing business,

industry gather. Frequent visitor to Vitafoods

and its level of professionalism as key benefits.

Europe, Srikanth IYENGAR, Assistant General

Some exhibiting companies selected Vitafoods

Manager – Marketing at Curatio Healthcare (I)

Asia specifically because it’s the only dedicated

Pvt. Ltd. (India), expressed, “This is our first time

platform to penetrate the Asian nutraceutical and

in Hong Kong for Vitafoods Asia and I find the

dietary supplement market. Moreover, returning

content to be rich and varied. We’ve obtained

exhibitors found the show had grown in stature,

many good contacts from the American and

not just in terms of attendance but also with

Malaysian Pavilions here, so it’s been a good trip.”

the addition of new visitor attractions and the Vitafoods Asia Conference.

“We first exhibited at Vitafoods Asia last year and gained plenty of new business as a result of

Valuable Education and Development Possibilities This edition of Vitafoods Asia was a

our participation,” shared Nori Shirai, General

truly holistic platform that catered to trade

Manager, International Marketing Department

professionals of varied job functions, including

of Daiwa Pharmaceutical Co. Ltd (Japan). “Our

business owners, product developers, marketers,

experience this year is even more fruitful than

food scientists, market analysts, as well as

our last. This is a show that we will definitely

academia. Receiving high praise at this edition

keep coming back to.” And Arnaud Anandane,

of Vitafoods Asia is the inaugural Vitafoods Asia

Business Consultant of Vidya Herbs (France),

Conference and Masterclass series, two knowl-

affirmed, “If you want to do business in Asia in

edge-sharing platforms that made their debut this

the nutraceutical foods sector, you’ve got to be

year.

here. This is the right place for us to meet Asian customers from all around the region.”

28

asiamanufacturingnewstoday.com

The Vitafoods Asia Conference featured 12 on-trend yet diverse topics, including commercial,

Asia Manufacturing News

marketing, and scientific subjects. Conducted in a

November/December 2014

When asked about his thoughts on

modular format, sessions on weight management,

the FourFactors® Masterclass, Mark

functional beverages, preventative health, and

CHRISTOFERSON, President of International

active ageing were the most popular topics with

Trade and Project Development (USA), responded,

delegates, in line with the leading health issues in

“This Masterclass was excellent – it was exactly

the region.

what I needed. The Healthy Marketing Team is an

The lively conference sessions were led by

experienced company that’s working on projects

an international line-up of speakers with varied

and with brands all over the world, so I really

backgrounds and expertise, including leading

value this learning opportunity and attended

academics of renowned institutes from the region,

Vitafoods Asia this year mainly to participate in

and industry experts from Blackmores, DSM,

this session.” The popularity of this Masterclass

Euromonitor, Frost and Sullivan, Mintel, and the

was evident, with delegates hailing from various

US-China Health Care Association.

countries, including China, Korea, Indonesia,

The show is well poised to support the region’s growth.

Malaysia, Philippines, and Taiwan.

Making Connections and Creating Opportunities Vitafoods Asia aims to bridge the gap between ingredients suppliers, food manufacturers, and

Delegates and speakers both appreciated the

distributors, as well as facilitate business and

wide selection of topics and speakers, as well as

learning opportunities that ultimately inspire

the interaction that took place in each session.

new product development. As part of its efforts

Conference delegate, Marco Antonio R. DANGO,

to connect businesses, the organisers held a

Senior Manager at Unilab Consumer Health

Hosted Buyer Programme in partnership with the

(Philippines), said, “I find the content interesting

China Health Care Association, where a carefully

and informative, and there is a good mix within

selected group of exhibitors presented their

each session. The speakers were generous in

products to senior buyers from China. Malaysian

sharing their expertise and I appreciate the

exhibitors also met with these buyers in a

speakers’ diverse backgrounds. The Q&A segment

‘Malaysia meets China’ closed-door session.

was fruitful with plenty of quality discussions taking place.”

Over at another part of the show floor,

Popular with attendees and providing further opportunities for business ideas included the New Products Zone and the Tasting Bar in the Finished

Masterclass sessions offered attendees a deeper

Products Pavilion. These visitor attractions help

understanding of topics key to launching products

visitors maximise their time at the show by

that use new ingredients and raw materials.

drawing their attention to the most innovative

Conducted on separate days, Lodaat Pharma

ingredients and applications available.

presented four sessions on different facets of

In that regard, Linda JEWITT, Product Director

Botanicals and Natural Extracts whilst the Healthy

of Buckets (USA), concurs, commenting that the

Marketing Team focused on the commercial

Tasting Bar helped narrow her search for suitable

aspects of growing a business in an emerging

suppliers. First-time visitor Cynthia LO, Marketing

economy.

Manager of Li Chung Shing Tong (Holdings) asiamanufacturingnewstoday.com

29

EVENTS

Limited (Hong Kong), said, “The New Products Zone is a focused showcase that allows visitors like myself to gain a better understanding of the

BUSINESS NEWS HYPERTHERM APPOINTS NEW ASIA PACIFIC REGIONAL DIRECTOR

latest trends and products in the market.”

Having received critical acclaims from attendees

SINGAPORE: Hypertherm, a U.S

all around, the next edition of Vitafoods Asia looks

based manufacturer of plasma,

set to be a bigger and stronger business platform

laser, and waterjet cutting systems,

as the organisers are committed to serve the

is pleased to announce that Israel

global nutraceutical industry with this dedicated

Gonzalez has been appointed the Regional

Pan-Asian event in the years ahead.

Director for the Asia Pacific Region, which consists

The fifth edition of Vitafoods Asia is on 2 to 3

of Australia, India, Japan, Indonesia, Malaysia,

September 2015 at the AsiaWorld-Expo, Hong

New Zealand, Philippines, Singapore, South

Kong. For more information, please visit www.

Korea, Taiwan, Thailand, and Vietnam.

vitafoodsasia.com.

Israel joined Hypertherm Mexico in 2008 as a Consumable Sales Manager. In 2010, he was

About Vitafoods

promoted to lead the Mexican team, where he

The Vitafoods portfolio is a group of events

demonstrated his impressive organizational skills,

devoted to ingredients and raw materials for the

excellent knowledge of Hypertherm’s products and

nutraceutical, dietary supplement and functional

their applications, and strong team management

food and drink industries.

capabilities. Prior to joining Hypertherm, he

The portfolio includes Vitafoods Europe,

was the Customer Solutions Manager for Festo

Geneva; Vitafoods Asia, Hong Kong; Vitafoods

Pneumatic S.A. and led a team of 16 Associates,

South America, São Paulo; Vitafoods Africa,

based throughout Mexico.

Johannesburg; the soon-to-launch Vitafoods

“Over the last 6 years, Israel has proven to be a

Russia, Moscow, as well as Finished Products

competent leader and has contributed significantly

Europe, Geneva.

to the expansion of the Mexico Team,” said Pete

For more information visit www.vitafoods-events.com.

Vickers, Vice President, Hypertherm International.

“With his expertise and years of experience, we are confident that Israel will bring new

About Informa

Informa Exhibitions organises over 150 business-to-business and business-to-consumer exhibitions annually, via a global network of

perspectives and a fresh approach to his new team, and take Hypertherm Asia Pacific to the next level of business success.”

Israel holds a Master’s Degree in Mechanical

offices in the UK, Brazil, UAE, China, USA, Canada,

Design and Robotics from the Universidad

France and Australia. Some of Informa Exhibitions’

Nacional Autonomá de México. He will be

leading brands include Arab Health, China Beauty

responsible for the continued development of the

Expo, Monaco Yacht Show, Vitafoods, Cityscape

full spectrum of sales, service, logistics, financial

and Anti-Aging Medicine World Congress.

administration and Hypertherm’s go-to-market strategy in Asia Pacific, a rapidly emerging and strategically important market.

30

asiamanufacturingnewstoday.com

BUSINESS NEWS

Asia Manufacturing News

November/December 2014

PWC AND GOOGLE ANNOUNCE JOINT BUSINESS RELATIONSHIP

PwC and Google Inc. have announced the launch

(2) Use the combined power of PwC’s analytical

of a joint business relationship to bring new and

acumen and Google Cloud Platform to help

innovative services to companies around the

businesses make the most of technology and

world. The rapid pace of innovation in technology

information and be better equipped to compete,

has fundamentally changed how and where work

creating new services to reinvent and optimize

gets done, driving organisations to transform

operations, connect with consumers and provide

their businesses for the future. Together, PwC and

an enhanced customer experience.

Google can help that transformation happen.

From Google, companies get unprecedented

(3) With the right tools and insight now driving decisions, PwC and Google will guide companies

innovation, technology platforms and Internet

seeking to break new ground in their businesses --

scale; while PwC brings deep industry experience,

not only to compete with new entrants and adapt

a broad range of business services and

to disruptive market forces -- but also to lead the

cutting-edge client insights, from strategy through

innovation themselves.

execution. Together, PwC and Google will help

“Ultimately, our collaboration is about helping

companies collaborate more effectively, better

clients to embrace their journey to the cloud,

use technology and information, and adapt to the

and transform their organizations to thrive and

disruptive forces shaping the world.

maintain relevance in a rapidly changing world,”

“For our clients, acquiring the knowledge most important to their operations, securing that information and using it optimally are critical -

said Tom Archer, PwC’s Google Strategic Alliance Leader.

“Millions of companies, large and small, look to

now more than ever before,” said Mike Burwell,

Google to help them launch, build and transform

PwC’s Vice Chairman - Transformation. “PwC is

their businesses,” said Amit Singh, President,

teaming with Google to offer our joint knowledge

Google for Work. “We’re delighted to enter into

and capabilities to clients - giving them one place

a relationship with PwC -- a leading advisor for

to go, maximizing experience and assets from

businesses around the world -- to bring the best

both organizations.”

of Google to work and help companies innovate.

Together, PwC and Google will help clients by

It’s great to see PwC lead by example, accelerating

collaborating on existing solutions and developing

their own journey to the cloud that will lead

new offerings in three areas:

to enhanced collaboration, greater speed and

(1) Help companies succeed by leveraging PwC’s business insights along with Google Apps, Google’s suite of cloud-enabled collaboration

ultimately, transform their business for the digital era.”

PwC has also begun to introduce Google for

and productivity tools. In doing so, we will

Work products to its own operations. PwC is

empower companies to be more productive, serve

transitioning 40,000 people in the United States

customers more efficiently and deliver a more

and 5,000 people in Australia to Google Apps,

connected employee experience.

transforming how those firms do business.

asiamanufacturingnewstoday.com

31

BUSINESS NEWS

SATO LOOKS TO YASUHIRO TANABE TO STRENGTHEN GLOBAL PRESENCE

Tokyo: SATO, a leader in barcode printing,

overseas markets. He will lead a team dedicated

labeling, and EPC/RFID solutions, announced

to business development, alliance building and

today the appointment of Mr. Yasuhiro Tanabe. Mr.

portfolio management focused on meeting the

Tanabe is tasked with facilitating SATO’s global

needs of SATO’s growing numbers of customers

expansion, and strengthening its presence in

and partners across the globe.

Prior to joining SATO, Mr. Tanabe spent close to 20 years at Sony, working in Japan, Singapore, and the United States. He spearheaded the launch of digital television in North America in the late 1990s, and later moved into a regional role leading Sony’s television unit for East Asia, doubling sales by pinpointing strategic growth areas and targeting China’s burgeoning provincial cities.

In 2005, Mr. Tanabe shifted gears from B2C to B2B, with an appointment to a management position and the board of directors at the Misumi Group, a Japanese manufacturer that supplies mechanical components to a range of industries including automotive, semi-conductor, medical and packaging.

At Misumi he rapidly increased overseas sales and restructured the company’s mold business, leading the company to achieve the top market share globally for standardized parts.

He shifted gears again in 2008, taking up an advisory role for a Tokyo-based private equity fund, where he provided strategic counsel on corporate revitalization of entities under the fund’s management.

32

asiamanufacturingnewstoday.com

BUSINESS NEWS

Asia Manufacturing News

November/December 2014

YPO: ASIAN CEO CONFIDENCE REMAINS SOLIDLY OPTIMISTIC

SINGAPORE: After reaching a three-year high in

YPO Global Pulse Confidence Index

the second quarter of the year, confidence among

The quarterly electronic survey, conducted in the

business leaders in Asia softened slightly over the

first two weeks of October, gathered answers from

third quarter. The YPO Global Pulse Confidence

2,431 chief executive officers around the world,

Index for Asia fell 1.8 points to 65.5 in the most

including 276 in Asia. Globally, the YPO Global

recent survey of CEOs. The regional reading,

Pulse Confidence Index edged down 0.8 point on

however, is firmly in optimistic territory and more

moderate declines in most regions, remaining

than 2.0 points higher than the global composite.

in optimistic territory at 63.2. Visitwww.ypo.org/

“While optimism in China and India was

globalpulse for more information about the survey

little changed versus the July survey, business

methodology and results from around the world.

sentiment suffered somewhat in other parts of

A more detailed version of this release may be

Asia, for example in Japan as the government

found atwww.ypo.org/news-media/press-releases/.

reiterated plans to further increase the consumption tax next year, as well as in Hong Kong amidst civil protests,” said Terry O’Connor,

About YPO YPO (Young Presidents’ Organisation) is a

regional chief executive officer of Courts Asia and

not-for-profit, global network of young chief

a member of YPO’s Southeast Asia regional board.

executives connected through the shared mission

“But the important thing is that on the whole,

of becoming Better Leaders Through Education

confidence levels across the region are robust,

and Idea Exchange(TM). Founded in 1950, YPO

indicating that CEOs expect economic expansion

today provides 22,000 peers and their families in

to continue.”

more than 125 countries with access to unique

The modest but broad-scale decrease in

experiences, extraordinary educational resources,

confidence erased two consecutive quarterly gains

access to alliances with leading institutions,

by the ASEAN economies, whose composite index

and participation in specialised networks to

dropped 4.6 points to 62.5. In Japan, confidence

support their business, community and personal

slipped 2.8 points to 57.1, setting it back to its

leadership. Altogether, YPO member-run

January level but still comfortably higher than

companies employ more than 15 million people

its five-year average. In China, confidence edged

around the world and generate US$6 trillion in

lower for the third consecutive quarter, with the

annual revenues. For more information, visit

index losing 0.5 point to register at a still-opti-

www.ypo.org.

mistic 62.9. Sentiment in India held steady after a post-election bump last quarter, inching down 0.6 point to a lofty 71.1. asiamanufacturingnewstoday.com

33

MANUFACTURING TECHNOLOGY

HYPERTHERM INTRODUCES CENTRICUT CONSUMABLES FOR ESAB PT-36 TORCHES Hypertherm, a U.S. based manufacturer of

Hypertherm engineers have extended their

plasma, laser, and waterjet cutting systems, has

consumable technology to competing plasma

announced new Centricut brand consumables for

brands so that owners of non-Hypertherm

use with ESAB PT-36 torches.

cutting systems can realise some of the life and

The Centricut consumables, which replace

performance benefits of genuine Hypertherm

ESAB XR consumables in the PT-36 torch,

consumables.In this case, ESAB customers can get

are guaranteed to perform as well as ESAB

outstanding cut quality and life, while reducing the

consumables. In field-testing, cut quality and

overall cost of operation.

consumable life were consistently equal to the

Centricut brand consumables, like all

OEM, delighting customers who were pleased

Hypertherm consumables, are designed with

to have a lower-priced alternative. The cost is

critical-to-function tolerances and are precision

20 to 30 percent lower, allowing customers to

manufactured by advanced machinists to deliver

save money without sacrificing cut quality or

the best quality product every time.

performance.

Hypertherm’s Centricut brand engineers

The performance is due in part to Hypertherm’s

and manufactures advanced plasma and laser

patented SilverLine electrode and CoolFlow nozzle

cutting consumables. Its product line includes

technologies. SilverLine technology features a

consumables that deliver increased value to

hybrid copper / silver weld joint that delivers

people who own most any non-Hypertherm

performance equal to a solid silver electrode for

cutting system including systems by ESAB,

a fraction of the cost. Advanced cooling features

Kjellberg, Kaliburn, and Trumpf.

reduce the operating temperature of the electrode,

All Centricut brand products are engineered

maximizing the hafnium pit depth and slowing

and manufactured to exacting standards and

its wear rate to extend electrode life. CoolFlow

incorporate the latest technological advances that

technology improves cooling to help maintain the

help to reduce operating costs, while delivering

size and shape of the nozzle orifice for longer life.

increased cut speed and quality. Centricut products include free technical support and come with same-day shipping.

34

asiamanufacturingnewstoday.com

Asia Manufacturing News

November/December 2014

PLASMA SYSTEM MAINTENANCE Proper plasma system maintenance can help prolong life and performance of system Clayton Gould, Marketing Manager, Aftersales, Hypertherm Inc. The list of items needing regular maintenance in

The other problem is when components in the machine fail, as troubleshooting and servicing can take days. This brings us to another old adage, “an ounce of prevention is worth a pound of cure.”

Fortunately, it doesn’t take much to keep a plasma

your shop is likely long. It probably seems there

system up and running. A small investment of

is always something to be done. Unfortunately,

your time is often all it takes to keep your system

while most shops are great at inspecting items

in good shape. The key though is to establish a

like cranes, forklifts, and air compressors, an item

regular preventive maintenance routine.

that tends to slip through the cracks is the plasma

Cleaning and inspection

cutting system. It might be the old adage “the

Your routine should contain two components:

squeaky wheel gets the grease” proves true here.

(1) routine cleaning and inspection, and (2)

Plasma systems, at least good quality systems,

replacement of common wear items. Part one of

don’t tend to be troublesome.

your program can be divided into daily, weekly,

The systems go about the job day in and day

and monthly tasks. Let’s start with the daily tasks.

out, slicing through whatever metal is thrown at it,

There are four things you’ll want to do for every

but while your plasma system may appear to work

single day your system is turned on.

just fine, failure to properly maintain it is quietly

First, verify inlet pressure of gases in both the

impacting its performance and life. Mechanical

“test pre-flow” and “cutflow” modes by making

parts will start to wear out, causing rough machine

sure your regulator dial reaches the recommended

motion. Part tolerances will deviate. Cut quality,

PSI.

particularly at higher speeds, will suffer.

It is kind of like the tires on your car. To get the

Second, inspect the air filters. You’re checking for moisture, oil, and particulates. If you see

best life and performance, you need to make sure

moisture, oil, or a lot of metal dust for example,

your tires have the right amount of air and are

you’ll need a new filter. If you only see a little dust

rotated regularly. If you don’t do those two things,

or dirt, try to lightly vacuum it off. All air filters

will your car still roll? Sure. Will the ride and gas

need eventual replacement, but if you’re going

mileage suffer? Will your tires last as long? No.

through more than your fair share, then you likely

Are you more apt to get a flat tire at the worst

have an issue with the quality of your air and

possible time? Yes. It’s the same thing with your

should check its purity.

plasma system. If you don’t take good care of it, it’s going to break down when you need it most.

Like when you’re in the middle of the largest

Figure 1: Inspect the air filter daily,

plate-cutting job you’ve ever had for your most

and do a replacement every six

lucrative customer. Not only have you just let

months

down an important customer, at up to USD$200 per hour fully burdened, you’ve just cost your shop a lot of money.

Step three is to check your coolant level and condition. If the level is below the neck of the tank, asiamanufacturingnewstoday.com

35

MANUFACTURING TECHNOLOGY

add more. If the coolant looks dirty, flush out your

problem, then you’ll need to perform the specific

tank and refill it with fresh coolant.

Coolant Flow tests found in your owner’s manual.

The final daily task it to inspect your torch.

Monthly tasks include cleaning the inside of your

Hypertherm strongly recommends taking your

power supply, inspecting electrical components,

torch into an office or other clean place to do this.

and checking your ground and table-to-work

Also, wash your hands. Typically, the two items

piece connections. First, turn off the power to

requiring careful inspection are the o-ring and

your power supply, then remove the top and side

coolant tube. Remove the o-rings from the torch

panels. You’ll likely see a lot of metal dust and

and check for damage. If all looks good, apply a

other particulates that you’ll want to either blow

very small amount of lubricant to your fingertips

out or vacuum. Don’t forget to vacuum build-up

and lightly rub this lubricant onto the o-ring. The

on the fan and fins. Next, gently remove dust and

o-ring should look shiny but you should not see

particulates from your circuit boards, taking extra

any lubricant. If you do, you’ve applied too much

care not to damage them.

and should wipe some off. Replace all o-rings

Figure 3: Clean the

so they fit snugly, then inspect all threaded

inside of your power

consumables and remove any dirt that you see.

supply by blowing out

You’ll also want to inspect the water tube to make

contaminants

sure it isn’t out of round, bent, or pitted. Inspect the nozzle and electrode mating surface for

The next step, with your power still off, is to check

damage, then take a clean cloth and wipe off the

the main contactor for excessive pitting, or a

torch, both inside and outside. Use a cotton swab

blackened or rough surface. If you see any of these

if needed to clean hard to reach areas.

things, replace your contactor

Figure 2: A cotton

Third, though you should check your coolant

swab can be used to

flow once a week, you’ll want to conduct a more

clean hard to reach

thorough test each month. Typically, this test is

areas

more comprehensive and should be conducted by a trained service technician or other specially

Next up are the weekly tasks. First step, inspect

trained resource. At the same time, you’ll want to

all air hoses, coolant hoses, and torch leads.

inspect all connection points—for example where

Look for scrapes and cuts, punctures, chemical

the hose connects to the ignition console, the

spills and burns, or any kinks or bends that would

torch body, and the power supply.

restrict flow.

Second, check for gas leaks by conducting

The fourth task you should do once each month is to inspect the pilot arc relay. Remove the cover,

the built-in leak and flow tests. Before doing

and inspect the contacts for excessive pitting.

this last test, make sure you are using the right

Again, if you see a lot of pitting, you’ll want to

consumables and have selected the correct

replace the relay.

plasma process for the test.

Finally, check your coolant flow. If you have an auto-gas console, this can be done right from your CNC. If you have a manual gas console, go to your console to read the flow rate. If the CNC detects a 36

asiamanufacturingnewstoday.com

Next, inspect your gas line connections by spraying them with soapy water. If bubbles appear on a gas line, tighten or replace it as necessary.

Lastly, inspect your ground and work lead connections. Verify that all system components

Asia Manufacturing News

November/December 2014

are individually grounded to a driven earth

www.hypertherm.com/preventivemaintenance

ground and that your work lead connection—

that offers customers the ability to download

particularly the connection at your cutting table—

a complete maintenance program from their

is clean and tight. There should be no paint or oil

system.

directly on the connection, as you need a clean metal-to-metal contact.

Like your forklift, crane and air compressor, your cutting system requires care to operate at

Replacement of common wear items

peak efficiency. Regular, ongoing maintenance is

With your routine maintenance out of the way,

the smartest and most efficient way to optimize

you’ll now want to focus on common wear items.

output, reduce unplanned downtime and minimize

Because plasma systems are precision machines

the operating costs of your cutting system. It’s an

with moving parts like torches, main contactors,

active approach as opposed to a costly reactive

relays, and such, these parts are going to wear

approach. This way, you’ll not only extend the life

out. The frequency of part replacement will vary

of consumables, but also, the life of your entire

depending on system usage, but typically you’ll

cutting machine.

want to replace items after a set number of months or arc hours. Recommendations are as follows: Every 6 months (or 500 arc hours) 1. Torch o-rings and bullet plugs 2. Air filter 3. Coolant filter Every 12 months (or 1,000 arc hours) 1. Torch main body 2. Pilot arc relay 3. Main contactor Every 2 years (or 2,000 arc hours) 1. Torch receptacle 2. Coolant pump 3. Torch leads Every 3 years (or 3,000 arc hours) 1. Check valves 2. Cooling fans 3. Coolant pump motor 4. Gas and pilot arc leads In order to make part replacement easy, some manufacturers have put together comprehensive preventive maintenance programs, along with annual replacement kits. Companies such as

Cleaning and inspection checklist Daily 1. Verify inlet pressure of gases 2. Inspect all air filters 3. Check coolant levels and condition 4. Inspect torch for leaks (o-rings and water tubes) Weekly 1. Inspect hoses and leads for cracks 2. Inspect gas fittings for leaks 3. Verify coolant flow Monthly 1. Clean inside of power supply 2. Check with main contactor 3. Conduct a more thorough coolant flow test 4. Inspect pilot arc relay 5. Inspect gas line connections 6. Inspect ground and table-to-work piece connections

Hypertherm have taken it a step further by providing this information with every system we sell and establishing a dedicated landing page asiamanufacturingnewstoday.com

37

MANUFACTURING TECHNOLOGY

VEOLIA | CBB POST SHOW & OUTLOOK INTERVIEW with Asia Manufacturing News

Spokesperson: Johnny Yu, Key Accounts Manager, Food & Beverage, China Solutions, Veolia Water Technologies

How did Veolia find China Brew Beverage 2014?

China Brew China Beverage (CBB) 2014 is one of the most influential events for the Food and Beverage (F&B) industry. It is an ideal exhibition that provides a quality platform for both manufacturers and end users to meet with their clients and to exhibit new and updated technologies.

We saw end-users maximising their time at CBB by learning about market information, and reaching out to vendors who can provide solutions to tackle their array of industrial problems. At CBB, we also met with many of our customers in the industry, and Veolia was able to recommend effective solutions for their process water systems and wastewater treatment needs.

Additionally, Veolia hosted a technical seminar on the second day of CBB where we showcased our array of sustainable water and wastewater solutions for the brew and beverage industry.

Led by Veolia’s technical experts, the seminar introduced customised solutions to meet process water, wastewater, and laboratory water requirements.

Overall, it was a successful participation for Veolia as we managed to spread awareness about our solutions, meet potential clients, and reconnect with existing customers. The beverage and brew industry is booming, and demand is growing for professional water solutions providers like Veolia to help manufacturers with their water and wastewater challenges.

Did new markets become available for Veolia?

At present, Veolia has an established presence in various sectors, including the F&B, Power, Chemicals, Pharmaceutical, Oil & Gas, Cosmetics, and even in the Microelectronics and Photovoltaic industries. We are always on the lookout for new markets that we can lend our expertise to, and this is a constant goal that our international development teams work towards.

In the past two years, Veolia has been successful in securing projects with beverage manufacturers 38

asiamanufacturingnewstoday.com

in China, as well as in Myanmar. Our activities in Myanmar have been a breakthrough for us in this emerging market. This market is slowly expanding, and we are excited to be a part of the process and to facilitate its growth with our top-of-the-line water and wastewater technologies.

Where are the current challenges in wastewater treatment?

Water and wastewater challenges exist across industries, and in addition to the growing water scarcity threats and increasing pressure from environmental bodies, we noticed that climate change, and water and wastewater infrastructure conditions are quickly becoming factors that manufacturers have to cope with.

Separately in Asia where water is an inexpensive resource, there is less incentive for Asian manufacturers to invest in water recycling technologies as compared to manufacturers in the West. Unnecessary water wastage and regulatory differences amongst Asian countries are common water and wastewater challenges that we see in this continent. As an environmentally-conscious company, Veolia actively encourages our clients to look beyond the capital investment and instead, to consider incorporating similar technologies that can benefit their business activities and the external environment in the long run.

There are many opportunities for companies who invest in water recycling activities. Recycled water can be used for irrigation purposes, truck washing, cooling towers, and even for washing manufacturers’ warehouses. Companies who embrace these types of water recycling efforts will be able to reduce fresh water demands and achieve cost savings.

How wide is Veolia’s reach in Asia to deal with wastewater challenges?

As a leading provider of water and wastewater solutions, Veolia possesses over 30 years of experience operating in Asia. We are capable of providing sustainable solutions for our long-time

THE INTERVIEW customers and potential clients across the different industries that Veolia serves. We are heavily invested in the Asian market and have local offices set up in several countries, including Singapore, Malaysia, China, Indonesia, and Thailand. When required, Veolia goes the extra mile by stationing qualified engineers and service teams onsite to provide on-going support to clients.

Over at Veolia, we regularly invest in research and development (R&D) activities and this has helped us retain our competitive edge as we continuously ensure that we are well-equipped to tackle water and wastewater challenges in Asia.

Can we have some confidence in these problems being fixed? Can you share with Asia Manufacturing News your success stories?

Veolia is an established brand name in the water and environmental industry. Our mission statement, Resourcing the World, is a reflection of our commitment to supporting companies in their business activities, while adopting an external perspective on the environment and zooming-in on social implications.

Asia Manufacturing News

November/December 2014

Aside from our numerous references, our technologies are also world-class. To-date, Veolia’s Actiflo® solution has over 900 references globally and we continue to work hard to develop solutions that will meet our clients’ expectations. This year, Veolia has had much success in the F&B industries, and we had several opportunities to work with global beverage manufacturers.

Besides these successes, Veolia also had valuable opportunities to support reputable manufacturers in the chemicals and power industries. Most recently, it was announced that Veolia would be working with 1 Malaysia Development Board (1MDB) for the highly anticipated Tun Razak Exchange (TRX) Project in Kuala Lumpur, Malaysia.

Contracted to implement a wastewater treatment plant, Veolia is also responsible for recovering at least 80% of generated sewage every year that will reduce site-wide fresh water demand by more than 50%. We get a rich sense of fulfilment whenever we are able to effectively integrate our technologies to help clients tackle their challenges.

Veolia had a great ride in 2014, and we look forward to more successes in 2015.

DONGBU DAEWOO ELECTRONICS SELECTS SIEMENS TO DEPLOY NEW PLM SOFTWARE South Korea: Dongbu Daewoo Electronics, a consumer electronics manufacturer in Korea, has selected Siemens’ product lifecycle management

access information instantly for informed decision making.

Teamcenter will also help the company increase

(PLM) business to deploy a new PLM system

productivity and reduce product development

based on its Teamcenter software.

costs by managing all active files, such as 3D and

Siemens was selected for its understanding of Dongbu Daewoo Electronics’ PLM objectives and business vision. The new system is expected to

2D product data and other general documents, more effectively.

Teamcenter received high scores in the

improve the manufacturer’s R&D process, increase

evaluation conducted by Dongbu Daewoo

product quality, reduce costs and enhance overall

Electronics for its rapid deployment and excellent

productivity throughout product development.

performance. It was also evaluated on its superior

Dongbu Daewoo Electronics will use Teamcenter

capabilities for project management, product

as the foundation of its new PLM platform. The

information integration and technological

company expects to improve its project-based

document management. Teamcenter is the world’s

R&D process management and design quality with

most widely used digital lifecycle management

a more structured system that makes it easy to

software. asiamanufacturingnewstoday.com

39

Editorial Calendar 2015

Deadline for all copy: 20th of the month prior.

January

February March -­‐ April February

May -­‐ June Additive Composites Manufacturing

CAD CAM

Advanced Materials

3D Manufacturing

CNC Tools

Plastics

Workshop Tools

Plastics

CNC Tools

Lean

Lean

Lean

Lean Tools

Lean

Supply Chain

Warehousing

Transport

Packaging

Materials Handling

Marine

Marine

Mining

Marine

Marine

Metal Castings

Agricultural Manufacturing

Metal Casting

Export Success

Food Processing

Fabrication

Lubricants

√

Food Manufacturing

√

√

√

Management

Finance

Patents

√

Insurance

Pollution Control

Remanufacturing

Automation & Control

Preventative Maintenance

Effluent Treatment

Indu

4th Asia Manufacturing Supply Chain Summit,

18-­‐19 February, Mumbai

Wind Power Asia, Beijing

IoT 8-­‐9 April, Singapore

Aviation

Contr

Plan

En T

Software

Recruitment

Smart Manufacturing

Education

Training

emerging technologies

IN ALL ISSUES: The Future of Manufacturing

Asia

Emerging Markets

Global Markets

ASIA MANUFACTURING NEWS ONLINE ADVERTISING 2015

40

Ind

Food

M

Develop

Robotics

Control & Automation Developments Opinion People The Institutions Export Success

W M

South America

ASIA MANUFACTURING NEWS

www.asiamanufacturingnewstoday.com

e

July -­‐ August September -­‐ October Additive Software Sensors CAD CAM Nano Technology Manufacturing

Nov -­‐December 3D Printing

Workshop Maintenance

Welding Equipment

Robotics

Contract Manufacturing

CNC Tools

Contract Manufacturing

Lean

Lean Software

Lean

Lean

Lean

Lean

Transport

Packaging

Logistics

Materials Handling

Mining

Marine

Mining

Marine

Marine

Marine

nvironmental Technology

Energy

Industrial Motors

Bearings

Environmental Technpology

Maintenance

dustrial Safety

Aviation

Fabrication

Forestry

Maintenance Conf.

Agricultural Manufacturing

√

√

√

√

√

Intellectual Property

√

Commercial Property

√

Investment

Adhesives

Automation

Preventative Maintenance

Industrial Coatings

Manufacturing

Management

ustrial Coatings

Safety & Security , Asia 19-­‐21 Aug.

I.C.S. Summit, 20-­‐22 Oct with JEC Asia

Oil & Gas Technology, Ind.

AMN

Succeed

rol Engineering Smart Manufacturing

Software

Recruitment

Aviation Training

Recruitment

emerging technologies

Europe

Australia

China

Japan

Australia

Emerging Markets

41

36

ASIA MANUFACTURING NEWS • FEBRUARY 2014

Better Business Throughout Asia www.asiamanufacturingnewstoday.com

www.asiamanufacturingnewstoday.com

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