Plant July/August 2013

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Volume 72, No. 05 July/August 2013

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GREEN CHEMISTRY EcoSynthetix is putting the sustainable in manufacturing

PM 40069240

NEW NEW TECHNOLOGY TECHNOLOGY SECTION SECTION

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HIGHLIGHTS Auto parts sales are great, but…

D-Wave makes a quantum leap Ontario’s industrial exception gets a reprieve Connecting people with productivity Innovation strategy needs a global focus 13-08-12 9:49 AM

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Quality – Innovation – Trust www.plantmagazine.ca/rsc/ www.plantmagazine.ca/rsc/ 101

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Our innovation challenge

M

anufacturers have a volatile love affair with the Canadian dollar. When it was low, it was really good for business in the prime US market. When it eclipsed the American buck, the love – and a lot of business – were lost.

With the loonie seemingly on the decline there are probably companies out there hoping to see it sink to a more traditional (as in much lower) level against the greenback and rekindle the old relationship. Sadly, reruns with the ex seldom work out. It’s time to move on.

Canadian companies, mostly smaller niche players, are having a tough time keeping their heads up since the 2008/09 recession and when it comes to growth strategies, most aren’t looking too far ahead, but that’s precisely what’s needed.

One area requiring attention is innovation. It’s deemed by the Canada 2020 Panel on Increasing Innovation and Productivity as key to competitive advantage and productivity growth. Yet Canada has a reputation for being a laggard, earning a D from the Conference Board of Canada and is near the bottom of its peer group (13th among 16 countries) based on a list of 21 indicators.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) notes that R&D spending has decreased 8% from 2007 to 2011.

But enough finger wagging. Both the Conference Board and KPMG observe in separate reports that Canadian firms have trouble finding the funding for R&D. In an economic environment that does not encourage risky behaviour, KPMG says it’s especially difficult for the hard chargers who would like to engage in the kind of “disruptive” R&D that would grow their businesses. Canada has great R&D tax incentives, but other countries focus more on direct funding, which provides a more supportive environment for smaller manufacturers. The Canadian government is addressing this issue but KPMG notes in its 2013 manufacturing outlook report that other countries such as the US, UK and Australia recognize the impact such activities have on their economies and are doing a better job. Indeed, Canadian subsidiaries of US firms are seeing their R&D moving to more accommodating and lower-cost jurisdictions in America or Mexico, much like a lot of production investment.

The Conference Board’s State of Firm Level Innovation in Canada report identifies another problem: few companies are focusing on the most effective innovation strategies. The Ottawa research firm says Canadian companies that focus on expanding and orienting innovation efforts to competitive global markets outside of North America reap the best bottom-line results, but only about 14% of businesses do so. More than half pursued a user needs-driven innovation strategy and about one-third adopted a technology-driven strategy to gain a competitive edge.

Although a more robust recovery of the North American market will be good for business, Canadian companies must be mindful of the opportunities that exist exploring highgrowth markets such as China and India and calibrate their innovation efforts accordingly.

The Conference Board observes there is a strong correlation between the intensity of innovation efforts and company performance – but only if innovation activities are well managed. So address the weakest links, which are categorized as lacking ideas, poor implementation and difficulty commercializing innovations. Financing difficulties are best addressed by demonstrating the soundness of R&D spending and commercialization to investors and lenders, which requires proper indicators and metrics for measuring innovation.

The federal government would help things along by more aggressively addressing direct funding needs and developing creative incentives for attracting R&D investment to Canada. But all stakeholders must turn their attention from the short-term challenges that bedevil growth and focus on the longer view. Maintaining poor innovation marks just hands the advantage to global competitors.

Joe Terrett, Editor Comments? E-mail JTerrett@plant.ca.

Publisher: Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com

District Sales Managers: Amanda Bottomley 416-859-4527 abottomley@canadianmanufacturing.com Catherine Martineau (Quebec) 647-988-5559 cmartineau@bizinfogroup.ca Deborah St. Lawrence 416-510-6844 dstLawrence@canadianmanufacturing.com Derek Morrison 416-510-5224 dmorrison@canadianmanufacturing.com Ilana Fawcett 416-510-5202 ifawcett@canadianmanufacturing.com

Group Editorial Director: Lisa Wichmann 416-510-5101 lwichmann@canadianmanufacturing.com

Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca

Editor: Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca

Circulation Manager: Diane Rakoff 416-510-5216 drakoff@bizinfogroup.ca

Assistant Editor: Matt Powell 416-510-5145 mpowell@plant.ca

Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly

Vol. 72, No. 05, July/August, 2013 Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca

Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 ksmith@plant.ca

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BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton

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COVER IMAGE: THINKSTOCK/DIGITAL VISION

Editorial

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19

Features

>> SUSTAINABILITY

10 GREEN CHEMISTRY EcoSynthetix uses biomaterials to replace petrochemical-based plastics.

>> MANAGEMENT

12 PRODUCTIVITY Connect your people with productivity improvement.

TRAINING Harness internal resources to alleviate skill shortages.

14 EXPORTING Mexico is where the action is.

ASIA-PACIFIC A national poll finds Canadians are cautious about deeper engagement.

>> OPERATIONS

15 THINK LEAN Get more efficiency from maintenance with 5S+1.

SAFETY Make forklift operations accident-free.

16 REGULATIONS Ontario cancels the repeal of its Industrial Exception.

17 ENERGY EFFICIENCY Twin Rivers Paper saves with a biomass boiler.

MUST READING Jardine and Tang’s maintenance bible gets a second edition overhaul.

>> INNOVATION

18 PROGRESS REPORT Canadian firms need to rethink how they apply their innovation efforts.

>> TRENDS

19 APMA CONFERENCE REPORT Sales are good but auto parts suppliers need to look ahead and expand globally.

20 A Q&A with APMA president Steve Rodgers.

>> TECHNOLOGY

21 OPTIMIZATION D-Wave takes super computing to the next level.

22 PRODUCT FOCUS Pumps and valves 24 PRODUCTS AND EQUIPMENT What’s new in industrial products and machinery.

28 PLANTWARE Hardware and software for managing plant operations.

Departments 4 Industry View 5 Careers 6 Events

8 9 29 30

Labour Relations PLANT Pulse Plantware Postscript

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protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement #40069240. Performance claims for products listed in this issue are made by contributing manufacturers and agencies. No responsibility for the accuracy of these performance claims can be assumed on the part of PLANT or BIG Magazines LP. Contents copyright© 2013 BIG Magazines LP, may not be reprinted without permission.

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Departments

>> Industry View

>> Bulletins Eco-Tek Group Inc., a developer of green lube products based in Woodbridge, Ont., has formed Eko-Tek Group Canada Inc. to oversee the company’s national sales operations. The company is also planning expansion into South American and European markets.

Quadrant, a manufacturer of high-performance thermoplastic materials that includes Quadrant Plastic Composites Canada Inc. in Toronto, has become a fully owned subsidiary of the MPI Group of Companies. It will continue operating under its current name and logo. Mitsubishi Plastics Inc. is a global manufacturer of plastics based in Tokyo.

LNG Energy Ltd., a Vancouverbased oil and gas exploration company, has entered into a $4.7 million share exchange transaction to acquire Enterprise Energy Resources Ltd., also a Canadian exploration and development company.

Environmental Waste International Inc., an Ajax, Ont. company specializing in eco-friendly technology for the breakdown of organic materials, has completed a two-day continuous run of its TR 900 waste tire pilot plant in Sault Sainte Marie, Ont. Engineers looked for mechanical improvements that would move the system toward full-time operation.

Bri-Chem Corp., an Edmontonbased manufacturer of oil and gas drilling fluids and steel pipe said Bri-Steel Manufacturing, its Thermal Pipe Expansion division, has successfully produced 36inch diameter seamless carbon steel pipe, the largest manufactured to date in North America.

Belt-Tech has invested $2 million to update the production line at its Granby, Que. plant, which produces the webbing for the manufacture of seatbelts used in the automotive and aerospace industries. The company, which employs 135 people, says it can now add about 30 new full-time jobs.

BRP is celebrating 30 years of its Rotax kart engines by bringing the Rotax MAX Challenge Grand Finals for kids 13 years and older to North America for the first time. The Valcourt, Que.-based manufacturer of power sports vehicles such as the Ski-Doo, Sea-Doo and the Spyder, said the finals will take place in New Orleans this November.

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Toyota supplier fined $5M for bid-rigging

Compass Compression opens third Calgary plant

International cartel involves wheel hub unit bearings OTTAWA: JTEKT Corp., a Japanese bearings manufacturer, pleaded guilty to two counts of bid rigging under the Competition Act and was fined $5 million by the Superior Court of Quebec in Gatineau for its participation in an international bid-rigging cartel.

JTEKT’s plea relates to automotive wheel hub unit bearings supplied to Toyota Motor Manufacturing Canada Inc. between 2007 and 2013.

The Competition Bureau said evidence shows JTEKT secretly conspired with another (unnamed) Japanese bearings manufacturer to submit bids or tenders in response to requests for quotations to supply Toyota.

The bearings supplier is the first company to plead guilty in the automotive bearings investigation.

The cartel came to light under the Bureau’s Immunity Pro-

Assembling Toyota’s RAV4s in Woodstock, Ont.

gram, where the first party to disclose an undetected offence or provide evidence leading to a referral of evidence to the Public Prosecution Service of Canada (PPSC) may receive immunity from the PPSC, provided it fully cooperates with the Bureau’s investigation and any ensuing prosecution. Subsequent cooperating parties may

PHOTO: TOYOTA

also receive lenient treatment for saving costs associated with the investigation and prosecution.

Canada is Toyota’s seventhlargest global sales market, and approximately 50% of the vehicles it sells are made in Ontario. In 2008 and 2009, it produced 271,193 Corollas, 119,908 Matrixes and 81,929 RAV4s.

Integran awarded a US patent for self-cleaning surfaces TORONTO: Integran Technologies Inc. has secured a US patent for its Nanovate NP nanoplating technology covering the imprinting of polymer surfaces to render them super-hydrophobic and/or self-cleaning.

The Toronto developer of advanced metallurgical nanotechnologies co-developed the water-repellent surfaces innovation with the University of Toronto.

The company says the new technology application forms durable metal dies for imprinting a variety of polymer surfaces to achieve “superior” water repellent properties without applying a release agent.

It can be used in high volume production processes such as injection moulding by applying

the Nanovate coating to the moulds, processing the coating to form the desired surface features and forming polymer parts with super-hydrophobic surfaces, or formed polymer parts can be embossed with the

Nanovate dies.

Basic research was funded by the Natural Sciences and Engineering Research Council of Canada (NSERC) and the Ontario Research Fund-Research Excellence (ORF-RE)

ProSep awarded $3M Malaysia contract MONTREAL: ProSep Inc. was awarded a contract for the supply of a seawater treatment package to Malaysia worth more than $3 million.

The Montreal-based process solutions provider for the upstream oil and gas industry said the equipment will be delivered during the first half of 2014 and installed offshore from Malaysia.

The water treatment equipment injects water into an oil reservoir, usually to increase or maintain reservoir pressure, but it also sweeps or displaces oil from the reservoir and pushes it toward the production well.

ProSep’s seawater package consists of multimedia backwashable fine filters used to reduce suspended solids in the water. The vessels are packed with various layers of media, providing 100% removal of particles sized 10 microns and larger, and of fine sediments.

Fireflex gets $750,000 for R&D upgrade MONTREAL: Fireflex Systems Inc., a manufacturer of fire protection systems, has received $750,000 from a federal government program to upgrade its research and development facilities.

The company, based in Boisbriand, Que., will use the repayable contribution to develop a test-bed for its integrated fire protection products, which include automatic sprinklers, and clean agent and compressed air foam systems that are used in server rooms, aircraft hangars, bank vaults, electrical and oil installations.

The project is the result of the development, jointly coordinated with the National Research Council Canada (NRCC), of a comprehensive fire protection system called ICAF. The NRCC has granted Fireflex the exclusive right to manufacture and market this product.

Improvements include an expansion of the plant, the installation of a foam recovery unit and handling and testing equipment.

The funding comes through Canada Economic Development’s Quebec Economic Development Program.

CALGARY: Compass Compression Services Ltd. has opened its third manufacturing facility in Calgary, which will provide the company with an additional 62,000 square-foot of shop space, increasing capacity by up to 5%.

The company has introduced two new fabrication groups: structural skids and vessel, spooling and piping. The new shop will handle vessel, spooling and piping, while an existing 12,000 square-foot shop has been allocated to skids.

The new facility and re-allocation of space provides Compass Compression with additional assembly space at its main facility.

The company produces custom screw, reciprocating and vane compressor packages, and provides custom oil-field services for oil sands customers.

Cable logistics now online ELGIN, Ill.: Helukabel’s recently expanded global logistics centre near Stuttgart, Germany is now online, which means greater stock availability from its Mississauga, Ont. warehouse.

The $50 million logistics centre project more than doubled warehousing capacity to 1.85 million square feet. The fully automated warehouse adds 23,900 pallet locations to the existing 16,600 stock locations in the high-bay racks that store a 33,000-plus product line.

“With the logistics network that we have in place, items can arrive from Germany in a time frame comparable to shipments from Chicago or Toronto,” said Helmut Luksch, managing director of Helukabel GmbH.

Biofuel pilot plant gets $800,000 SARNIA, Ont.: Woodland Biofuels Inc. is getting $800,000 in funding from a federal government program to operate a plant that will produce low-cost biofuel from waste.

Under FedDev Ontario’s Investing in Business Innovation initiative, the Mississauga, Ont. developer of clean fuels will use the repayable contribution to demonstrate the efficiency and scalability of cellulosic ethanol production.

The company’s patented technology uses a series of chemical reaction steps to produce

cellulosic ethanol biofuel from waste plant materials.

The plan is to construct commercial plants and licence others to build plants that use the technology.

The funding has helped the company attract up to $2 million in additional venture capital financing.

Woodland Biofuels says the project will create up to 18 fulltime jobs during the implementation phase, and up to 1,120 jobs with the construction of commercial plants when the project is complete.

July/August 2013

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Industry View << Departments

$4.8M US water services deal for Pure Technologies

>> Careers

CALGARY: Pure Technologies US Inc. has been awarded a $4.8 million contract to provide water and wastewater inspection

Mitutoyo Canada Inc., a supplier of precision measuring equipment, has appointed John Dewar sales manager. This is a move up for the former sales and application specialist. He now covers the Southern Ontario region

and monitoring services for the Miami-Dade Water and Sewer Department.

A subsidiary of Calgarybased Pure Technologies

Domtar sells US Ariva business MONTREAL: Domtar Corp. has sold its Ariva business in the US to privately-held Central National-Gottesman Inc. The business will be integrated into Lindenmeyr Munroe, a division of Central National-Gottesman.

Financial details of the transaction were not disclosed.

In a subsequent transaction, Central NationalGottesman Inc. agreed to sell the US Midwest portion of the Ariva business to The Millcraft Paper Co., a familyrun paper merchant based in Cleveland.

Ariva has approximately 400 employees in the US. Headquartered in Covington, Ky., it operates from 15 locations across eight states in the Northeast and Midwest regions.

Ariva’s Canadian operations are not affected by the transaction. They will be consolidated into Domtar’s Pulp and Paper Division.

Domtar Corp. is a manu-

facturer of fibre-based products including communication papers, specialty and packaging papers and absorbent hygiene products.

The company employs more than 9,800 people and had sales of $5.5 billion from 50 countries in 2012.

Ltd., an international asset management technology and services company, Pure US will inspect and monitor a portion of the county’s water and wastewater system that consists of pre-stressed concrete cylinder pipes.

Pure will deploy its patented leak detection and condition assessment technologies, which include PipeDiver, SmartBall and SoundPrint acoustic fibreoptic monitoring.

Work will begin in the fourth quarter and continue for a year.

Enbridge buys into Quebec EDF EN wind project

Pinkwood Ltd., a Calgary-based manufacturer of I-joists, has a new president. Bradley Parsons, a registered professional engineer, moves up from vice-president of sales and marketing.

John Dewar

HARTING Canada Inc., a supplier of the German company’s connectivity products, has appointed Randolph Froude area sales manager for Ontario and Western Canada. Froude was previously employed by a machine builder. His hiring adds to the company’s efforts to establish a strong sales presence in Canada.

Linda Davachi has joined Arctic Glacier Holdings Inc., a provider of packaged ice based in Winnipeg, as CFO. Previously she was CFO of Northstar Travel Media, a private-equity owned information and marketing solutions provider to the travel industry.

Randolph Froude

Walter USA, a manufacturer of cutting tools based in Waukesha, Wis., has appointed Kim Seidelman managing director and Jeff Kraez national sales director for Region Americas, which includes Canada. Seidelman joined Walter through the Valenite integration Kim Seidelman in 2010 as the director of sales for key accounts. Kraez, current sales director for distribution, will now lead the entire sales force.

CALGARY: Enbridge Inc. is acquiring a 50% interest in the 80-megawatt Saint-Robert-Bellarmin Wind Project in Quebec from EDF EN Canada.

No financial details were provided.

Located in Saint-Robert-Bellarmin, about 300 kilometres east of Montreal, the project reached commercial operation in October 2012 and delivers energy to Hydro-Quebec Distribution that powers 18,000 homes under a 20-year power purchase agreement.

Built by Borea Construction and comprised of 40 REpower 2-megawatt turbines, Saint-Robert-Bellarmin created up to 150 jobs during the construction phase and includes a significant portion of regionally manufactured components.

EDF EN Canada Inc.’s operation and maintenance affiliate EDF Renewable Services Inc. in Montreal will continue to provide longterm operations and maintenance (O&M) services.

EDF EN is an EDF Energies Nouvelles company, a Paris-based developer of renewable energy.

Innovative Composites International Inc., a Toronto producer of proprietary engineered composite products, has appointed Mark Rivers, currently a director of the company, vice-chairman and interim CEO. He replaces Terry Ball, who has been appointed president and COO. Sam Greiss has resigned as CFO and as a director.

Jeff Kraez SEW-Plant-Half-island-0615.pdf 2 7/19/2013 4:25:06 PM

$22.1B in “corporate welfare” since 1961 Fraser Institute report identifies the top 25 recipients CALGARY: The federal government, through one department, has dished out to business $22.1 billion worth of what the Fraser Institute describes as “corporate welfare” over the past 50 years.

The public policy think tank with offices across Canada says in a new report Industry Canada and its predecessors distributed $8.8 billion to companies as grants and $13.3 billion in loans.

Mark Milke, Fraser Institute senior fellow and author of Corporate Welfare at Industry Canada since John Diefenbaker, notes most of the handouts occurred in the 1980s ($9 billion) compared to $1.8 billion in the 1970s, $5.4 billion in the 1990s, $5.5 billion in the 2000s, and $49.5 million in the 1960s.

The data, which excludes all other federal departments and provincial/municipal sub-

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Industry Canada delivered $8.8 billion as grants and $13.3 billion as loans.

PHOTO: THINKSTOCK

sidies to business, as well as the 2009 automotive bailout to General Motors and Chrysler, shows several aerospace companies among the top 25 recipients, which accounted for almost $11 billion of the total.

Montreal aerospace manufacturer Pratt & Whitney Canada Corp. received the most money at just under

$3.3 billion spread over 75 payments between 1970 and 2012; Bombardier Inc. was second with more than $1.1 billion across 48 payouts since 1966; and de Havilland was third with $1.1 billion over a 24-year period.

Visit www.plant.ca and search “Canada handed out $22.1B in business subsidies since 1961” for the list. www.plantmagazine.ca/rsc/ 102

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Departments

>> Industry View

Karman acquires Ohio Gear EASTLAKE, Ohio: Kaman Corp. has acquired Ohio Gear & Transmission.

The Eastlake, Ohio company distributes mechanical power transmission equipment, bearings and electric automation systems.

It also designs and fabricates specialized gearing products for the food, packaging, material handling and general machinery sectors.

Kaman, based in Bloomfield, Conn., sold its six Canadian locations to Wajax Industrial Components in January.

Renewable Energy acquires Ontario wind project Up to nine wind turbine generators in southwest Grey County TORONTO: Renewable Energy Developers Inc. has entered into a binding agreement with Natenco LLC to acquire the Grey Highlands Clean Energy wind project.

The Toronto-based renewable energy developer, owner and operator, said the 18.5-megawatt project, located in Grey County, Ont., has a 20-year power purchase agreement with the Ontario Power Authority.

Natenco is a limited-liability company based in Delaware.

No financial details were

provided.

Renewable Energy Developers has actively participated in

the development of the project that consists of up to nine wind turbine generators since

The project consists of up to nine wind turbine generators. PHOTO: THINKSTOCK

January and will be providing additional funding prior to closing the deal.

It expects to complete the acquisition and build and own the project with a financial partner.

The company also announced it’s entering into a definitive agreement with Capstone Infrastructure Corp., which will acquire all the outstanding shares of Renewable Energy Developers through a share exchange. This will result in a larger infrastructure company with power generation facilities across Canada for about 465 megawatts of installed capacity.

>> Events Lasers for Manufacturing LIA Sept. 11-12, Schaumburg, Ill. A one-stop event for companies interested in integrating laser technology into their production presented by the Laser Institute of America (LIA). Visit http://www. lia.org.

CMTS SME Sept.30-Oct. 3, Toronto The Canadian Manufacturing Technology Show (CMTS) features the latest technologies and solutions in machine tool, tooling, metal forming and fabricating; automation; design engineering; and plant management.

Presented by SME (Society of Manufacturing Engineers). Visit http://cmts.ca.

NDT in Canada 2013 CINDE/CANSMART/IZFP Oct. 7-10, Calgary Presented by the Canadian Institute for NDE (CINDE), The Cansmart Group (CANSMART), and the Fraunhofer Institute for Nondestructive Testing (IZFP). The latest developments in NDT, smart materials, and structural health monitoring will be discussed. Visit http://events.cinde.ca.

25th National Robot Safety Conference RIA Oct. 14-16, Indianapolis The Robotic Industries Association’s (RIA’s) conference will focus on the new American National Robot Safety Standard (ANSI/RIA R15.06-2012), the first update since 1999, which now harmonizes with the International ISO 10218:2011 standard for robot manufacturers and integrators.

Visit www.robotics.org/safety13.

PTDA Industry Summit.

AME Toronto 2013 AME Oct. 21-25, Toronto Association for Manufacturing Excellence (AME) presents the Breakthrough to Your Leading Edge lean conference. Four of the world’s top lean thought leaders are featured: Jim Womack, Dan Jones, John Shook and Mike Rother, plus best practices sessions and plant tours. Visit http:// www.ameconference.org/2013-toronto.

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July/August 2013

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How To Keep Your Electronics Cool When hot weather causes the electronics inside a control cabinet to fail, there is a panic to get the machinery up and running again. There are several cooling options out there and it’s important to know the facts.

Line up of cooLers that are prone to bad behavior $$$$$$ $$$$$ $$$$ $$$ $$ $ ¢

These coolers are prone to failure in dirty, industrial environments when dust and dirt clogs the filter.

Opening the panel door and aiming a fan at the circuit boards is a bad idea.

• It is an OSHA violation that presents a shock hazard to personnel

• It takes almost a day to install

• The fan blows hot, humid, dirty air at the electronics • The cooling effect is minimal • It is likely to fail again since the environment is still hot

These have serious limitations.

On hot summer days when the temperatures of the room and inside of the enclosure are about equal, there’s not enough difference for exchange.

• Vibration from machinery causes refrigerant leaks and component failures

• They fail when dust and dirt clogs the filter

• Compressor life expectancy is typically 2.5 years of continuous operation

• The cooling capacity is limited due to ambient conditions

• It runs far longer than necessary before shutting off

• Average cost to replace a bad compressor is $750

free!

85% more to operate than ® EXAIR’s ETC Cabinet Cooler System with the same SCFM rating and Btu/hr. output.

• Electronics can overheat before it turns on

• It requires a floor drain for the condensation

Reliable and maintenance

The “plastic box cooler” from a competitor uses an inaccurate mechanical thermostat that’s designed for liquids. This thermostat has a poor ability to react quickly to changes in air temperature. It costs up to

• Increased cycle time wastes compressed air

EXAIR Cabinet Cooler ® Systems EXAIR has a complete line of Cabinet Cooler Systems to dependably cool and purge your electrical enclosures.

They convert an ordinary supply of compressed air into clean, cold 20ºF air. They mount in minutes through an ordinary electrical knockout and have no moving parts to wear out. The compressed air filtration that is provided keeps water, oil and other contaminants out of the enclosure.

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• There is no room air filter to clog • An accurate electrical thermostat control minimizes compressed air use • All Cabinet Coolers are UL Listed to US and Canadian safety standards • They are the only compressed air powered coolers that are CE compliant www.exair.com/18/440.htm Manufacturing intelligent Compressed air® Products Since 1983

If you would like to discuss an application, contact an Application Engineer at:

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@exair

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Departments

>> Labour Relations

A new, stronger union for changing times

BY KEN LEWENZA AND DAVE COLES

M

ay 30 will be a date to remember. It was the day thousands tuned in – some in person, many online – to learn the much-anticipated name of Canada’s new union at a spectacular public event in Toronto. When the “Unifor” logo appeared on screen featuring a shield housing a stylized letter “U” in the middle, 200 people broke into uproarious applause.

The most anticipated union renewal project in Canadian labour history

no question Unifor has people talking and “notThere’s just members, which is a good thing… ” reflecting the joining together of the Canadian Auto Workers (CAW) and the Communications, Energy and Paperworkers Union of Canada (CEP) finally had a name and an identity.

There’s no question Unifor has people talking and not just members. Major television, radio and print news outlets across Canada and around the world carried the story. Online polls sprang up, asking people to weigh in on the name.

Alternative media outlets also provided extensive coverage. Marketing experts attempted to dissect it. And social media sites lit up with conversation (“Unifor” was actually a top trending topic on Twitter across Canada).

Unifor is attention-grabbing, hard to ignore and intentionally ambiguous. We want it to mean different and personal

CANADIAN MANUFACTURING TECHNOLOGY SHOW

THE INTERNATIONAL CENTRE – MISSISSAUGA, ONTARIO SEPTEMBER 30 – OCTOBER 3, 2013

things to our increasingly diverse membership.

This will be a union built for workers, the unemployed and self-employed, for women and young workers. .

For too long, wellresourced opponents have defined the image of our unions. Although always bringing forward new, progressive ideas for a better society, we have been tarnished by claims that we are constantly fighting “against” the decisions of others. Unifor will push “for” positive and progressive ideas. Our goal is to help set a progressive agenda.

As a national Canadian union, it’s essential that our name be bilingual. In French it combines the words ‘unis’ (united) and ‘fort’ (strong). Unifor reflects, in both languages, its core values: unity and solidarity, strength and determination, and a modern, forward-looking perspective.

Unifor is a dynamic and versatile name with applications as diverse as the membership. It reflects the hard work our union will do to improve the lives of all Canadians. Unifor is inclusive. New membership approaches will redefine who can join and radically change the trade union landscape.

Protection and strength

Looking for new manufacturing opportunities?

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A strong union protects and defends its members. It stands for safer workplaces, and secure employment, wages and benefits. The shield reflects this sense of protection and strength, and the bold red and blue were chosen to make Unifor instantly recognized.

All that said, it’s difficult to part with the past. Each of our unions have long, proud histories defined as much by struggles as successes. We will carry those memories with us in our hearts as we bear down and face the challenging road ahead.

Change can be unsettling, but if we don’t change, the movement dies and working people suffer. Canada becomes a more unequal, unfair and less inclusive society, which would betray those who came before us.

We have faced major change before, when the CAW in 1985 broke from its US-based parent to form a daring new organization; and when Canadian communications, energy and paper workers united to form a diverse and potent new union in 1993. Change saved our unions, and made a better Canada. It has served our unions well in the past. It will serve us well in the future, through Unifor.

Ken Lewenza is the president of the Canadian Auto Workers union, which represents 225,000 workers. Dave Coles is the national president of the Communications, Energy and Paperworkers Union of Canada (CEP), which represents 110,000 members. E-mail cawcomm@caw.ca.

Comments? E-mail jterrett@plant.ca.

8 PLANT

July/August 2013

13-07-26 6:50 AM

Economy << Departments SUBDUED PROVINCIAL GROWTH annual % change Alberta Manitoba Sask.

SOURCE: TD ECONOMICS

Canada BC Ontario Québec

2013-14F 2012E

Atlantic -2.0

-1.0

0.0

1.0

2.0

3.0

5.0

5.0

Manufacturing waits on the US

TD Economics forecasts Newfoundland and Labrador will be ahead of the provincial pack with a 2.8% advance in GDP this year. Next year, eight of the 10 provinces will record stronger growth as exports are propelled forward by a resurgent US economy and a weaker loonie.

S

EXPORTS DECLINE IN MAY $ billions of dollars, seasonally adjusted 45 43 41

35 33 31 Exports Imports

20 27

M

J 2008

J 2009

J 2010

J 2011

SOURCE: STATISTICS CANADA

39 37

JM 2012 2013

Canada’s imports fell 3.2% (to $39.6 billion) in May while exports declined by 1.6% (to $39.3 billion). Export prices were down 1% and volumes slipped 0.7%. As a result, Statistics Canada reports the trade deficit with the world decreased from $951 million to $303 million.

JOB LEVELS HOLD

thousands 17,900 17,700 17,500

SOURCE: STATISTICS CANADA

17,300 17,100 16,900 16,700 16,500

J

J 2008

J 2009

J 2010

J 2011

J 2012

J 2013

72

tatistics Canada reports Canada’s manufacturing sector saw a 0.7% increase in sales over May from 11 of 21 industries, following two months of declines. It was the second gain in five months, but only the fifth in 17 months.

Helping to make up lost ground were chemicals driven by fertilizer sales (thanks to a late start to the planting season), up 5.1% or $195 million for a $4 billion total. Other gains came from primary metals (4%), fabricated metals (3.4%), and machinery (3.8%), which were offset by declines in wood products (down 4.8%), food (1.3%), and petroleum and coal products (1%).

Inventories slipped for the first time in five months by 0.2%, with inventory-to-sales ratio down a peg from 1.43 to 1.42. But there were advances in unfilled orders (up 0.6%) and new orders (1.8%).

Despite the positive tone of the Statistics Canada data, Nathan Janzen an economist with RBC Economics, noted sales are running 3.3% below the year-ago level, and the pullback in inventories suggests the gain came mostly from existing inventories rather than new production.

Francis Fong, an economist with TD Economics, said the broader trend for manufacturing is still quite negative. Sales remain 3.7% down from their December 2011 level and 8.7% from their pre-recession peak in July 2008.

“Looking ahead, the prevailing theme for the manufacturing sector continues to be waiting on the US economic recovery to regain momentum,” said Fong in a bulletin.

“Second quarter growth in the US is expected to be modest due to the impact of the sequester, but the sec-

ond half of 2013 and 2014 are looking significantly more rosy.” But Canadian manufacturers will see improvements as demand in the US picks up, Fong added.

Job growth holds Statistics Canada’s labour report showed June employment virtually unchanged from May’s 95,000 jobs gain and unemployment remained at 7.1%. Manufacturing was up slightly (4,200 jobs) but the level of employment is down 4.9% from a year ago.

Job gains over the first six months were 14,000, which TD Economics describes as a more modest pace compared to the second half of 2012.

TD economist Leslie Preston said the economy is expected to continue to add jobs at a 10,000- and 15,000-permonth pace in the second half of the year, holding the unemployment rate roughly constant around its current levels.

Exports decline May’s export numbers slipped 1.6% to $39.3 billion, the decline led by metal and non-metallic mineral products (down 15% to $4.2 billion). The main contributor was unwrought precious metals and precious metal alloys, down 34.9% to $1.4 billion. Vehicles and parts also contributed. They were down 3.8% to $5.4 billion, led by a dip in passenger cars and trucks.

However, TD Economics sees signs that the export sector is ready to take the lead across most provincial economies. Over the first four months, nominal exports are up across seven of 10 provinces. It says Ontario, Quebec and BC can rely on healthy demand in key export sectors to lift growth heading in 2014.

Profit from the Synergy of two great products ...

Employment was status quo in June, with growth averaging 14,000 per month in the first half of the year, while unemployment remained at 7.1%. Manufacturing employment has stabilized following a 71,000 decline in the first three months of the year.

$ billions 80

ECONOMIC DE VELOPMENTS AND TRENDS

Venanzetti Vibrators

UNFILLED ORDERS RISE Total, unfilled orders Total, excluding aerospace

64 SOURCE: STATISTICS CANADA

56 48 40 32 24

M

J 2008

J 2009

J 2010

J 2011

2012

ROSTA Screen Mounts

J M 2013

A 1.2% advance in aerospace parts and products with orders hitting a record $39 billion contributed to a 0.6% increase in unfilled orders totalling $71.2 billion. Primary metals saw a 8.3% increase to $1.3 billion but a 1.9% decline in machinery offset the gains.

Make an impact on your bulk processing!

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PLANT 9 04/10/2007 01:02:59 PM

13-07-26 11:33 AM

Sustainability

>> Green Chemistry

Biolatex binders and adhesives derived from corn, potato and tapioca starches replace petrochemical-based plastics.

By Matt Powell, assistant editor

A

lot has changed since John van Leeuwen and Steven Bloembergen founded EcoSynthetix Inc. in 1996.

Bio-based plastics, a material in its infancy that didn’t excite financiers that were more comfortable with cheaper petrochemical-based plastics, weren’t on the radar. But since then, EcoSynthetix has continued to develop environmentally friendly alternatives to petrochemicals by applying green chemistry and sustainable manufacturing methods.

The renewable chemicals company is now taking off thanks to the growing success of its biopolymers made from crop-based starches for paper and paperboard products, architectural coatings and adhesives, which EcoSynthetix says have performance capabilities superior to those of traditional petroleum-based products, while significantly reducing the user’s carbon footprint.

“If you use raw materials that are cropbased, that crop will have captured the CO2 in the season it grew in,” explains van Leeuwen, the company’s CEO. “If you grow a field of corn, it captures CO2. The sunlight and the CO2 form the starch, and if you now use the starch you basically have used a raw material that has sequestered CO2. It has captured CO2 which you then use in your product. That in itself is a more sustainable approach to making these industrial materials.”

And the company’s fortunes are helped along by high oil prices that are hovering around $100 per barrel.

EcoSphere, its first product patented in 2001, is a biolatex binder that’s used as an alternative to styrene butadiene latex in the coated paper and paperboard industry. It’s manufactured at two plants in Tennessee and in Oosterhout, the Netherlands, which produce more than 235 million pounds a year. A pilot plant at the company’s Burlington, Ont. headquarters lets the company carry out rapid prototype and scaling activities to drive new product development.

In 2011, the company issued the largest clean-tech IPO to date on the Toronto Stock Exchange, putting approximately $100 million in the company’s coffers,

which has helped EcoSynthetix refine its catalogue of bio-based coatings and binders. It has since expanded market applications to building products, paints, adehsives and carpet backing.

Van Leeuwen and Bloembergen met in the Netherlands as kids before coming to Canada in the mid-1970’s to attend the University of Waterloo, where both studied chemistry. Bloembergen completed a PhD in bioplastics, while Van Leeuwen opted for industry experience, working for venture capital firm Tech Inspirations Inc., and next within the chemicals industry for Monsanto and Shell Chemicals.

Bloembergen spent time working for Polysar Rubber, the Xerox Research Centre of Canada and the Michigan Biotechnology Institute before reuninting with van Leeuwen in 1996. “Stephen [Bloembergen, who is executive vicepresident] approached me about doing his own thing in the area of biobased adhesives in late 1995. I liked the idea and said, ‘why don’t we start a company?,’” says van Leeuwen. “We wrote everything out on a napkin and came to the conclusion that we could make industrial materials that were environmentally friendly.”

The early days They spent their first four years in the lab, developing and refining new chemistries, trying to make them commercially viable. By 2001, they’d developed EcoSphere bioadhesives and sealants and had acquired the necessary process patents to take the product to market, which went commercial in 2003.

Van Leeuwen, who had provided the seed money to get the operation off the ground, secured a second round of financing from Minneapolis-based chemical giant Cargill in 2004 to fund EcoSphere production. He was named CEO while the company moved forward to replace petroleum-based polyvinyl acetate in Cargill’s paperboard packaging laminating applications.

EcoSynthetix acquired its first major customer in 2007. Suzano, which is based in Brazil, adopted EcoShere into its coated paper and paperboard production. Now the product is supplied to more than 25 mills in eight countries.

13

235,000,000

Mfg. ecosphere eCosynthetix’s BioMaterials alCheMy Puts the Green into ManufaCturinG

1. Inside the EcoSynthetix pilot plant with (L-R) Craig Turner, director of process innovation; Geoff Hoover, director of manufacturing and fulfillment; and John van Leeuwen, CEO. 2. EcoSynthetix uses green chemistry to formulate its biolatex binders using natural crop starches.

3. Smaller particles enhance strength, creating an open coating structure with lower paper grades.

4. The pilot plant produces an additional 80 million pounds of biomaterials annually.

5. Packaging options range from 25-kg bags, supersacks or bulk delivery via train or truck.

PHOTOS: STePHen UHraney

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2 July/August 2013

13-07-26 11:34 AM

1 In 2012, the company reported revenues of more than $20 million and added nine new mills to its customer base. It also increased its production capacity to 235 million pounds after installing its fourth production line, compared to just 35 million pounds in 2010.

Upgraded product offerings include the first new monomer in the chemical industry in 20 years called EcoMer, a bio-based building block for developing waterborne sugar-acrylic adhesives and resins. The sugar used to produce the product is derived from the glucose or dextrose found in cornstarch. EcoStix, a pressure sensitive adhesive product, can be customized to wash-off at specific temperatures so the adhesive doesn’t interfere with paper or plastic recycling processes.

Two-thirds of the company’s 60 employees work at its innovation centre in Burlington. Ten per cent of them hold PhDs in chemistry or chemical engineering. They drive new product innovation.

EcoSynthentix has signed an industrial partnership with the University of Waterloo’s Institute of Nanotechnology to explore new applications for Ecosphere, which is made from starches derived from renewable crop resources such as corn, potatoes and tapioca. The institute focuses on science and engineering at the atomic scale, which entails the design, fabrication and exploitation of materials where dimensions are mea-

3 www.plant.ca

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sured in the billionths of a metre.

The five-year agreement is jointly funded through an EcoSynthetix and NSERC (National Sciences and Engineering Research Council) Collaborative Research and Development Grant.

EcoSphere is commercially utilized as bio-based latex products providing alternatives to petroleum binders in the coated paper and paperboard market.

EcoSynthetix says the project’s goal is to generate a greater understanding of the EcoSphere’s properties. The project team will be chemically modifying the nanoparticles and characterizing how their properties are affected by any changes.

This collaboration may not have happened had the company not moved its R&D headquarters from Michigan to Ontario in 2010. Funding from the federal Sustainable Development Technology Canada program and Ontario’s Innovation Development Fund supported the move and the development of EcoSynthetix’s Centre of Innovation, which includes the scaled down pilot plant to prove new technologies and their scalability to ensure they’re commercially viable.

Van Leeuwen says lower corporate taxation rates, higher research and development tax credits and improved federal and provincial funding made the move an easy decision. Its Burlington headquarters is also about an hour’s drive to the University of Waterloo, one of Canada’s top engineering faculties.

Indeed, van Leeuwen attributes much of the company’s growth to a low-cost, flexible manufacturing process that al-

lows it to build capacity easily. Rather than using different machines to make each of the products, the chemistry is managed in Burlington for use in a single manufacturing process at facilities in the US and the Netherlands.

Manufacturing green chemistry “We’re unique in the sense that we own the assets and the infrastructure to manufacture our product, but we contract someone else to actually run the equipment,” says Ted Van Egdom, senior vice-president of market realization and product manufacturing. “There’s lots we can leverage from someone else so we don’t have the burden of every day functions, so we teach those people how to make our products while we focus on R&D.” He describes the process as toll manufacturing, a unique model to scale up technology. It also allows the company’s contract manufacturers to diversify from traditional products and open up new revenue streams in new sectors, such as cleantech.

Van Leeuwen says the process was also adopted out of necessity back in 2004, when venture capital for clean-tech startups was harder to find. But that’s changing. The company’s state-of-theart pilot plant is a good example of how far clean-tech investment has come in a short period of time.

“One of the big hurdles in green chemistry is the issue of scalability. Lots of guys can do it on a small scale, but building a full commercial-scale plant is hard.

The toll manufacturing route is working very well for us, and we’ve broken that

5

4

ISO CerfTIfIed in april 2013, ecosynthetix received separate certifications for quality management and environmental management systems from sai global in accordance with international standards from the international organization for standardization (iso) 9001:2001 and iso 14001:2004. the company was also named third on the 2013 Profit 500 ranking of Canada’s fastest growing companies by PROFIT magazine.

scale-up bottleneck that has traditionally slowed the growth of materials,” says van Leeuwen.

Its annual production of 235 million pounds is shipped as a dry polymer to six satelite dispersion facilities, where liquid is added. This makes it easier for the customer to use the product, says Van Egdom.

“But shipping the product as a dry, lighter biolatex initially takes significant freight costs out of the equation, which is in line with our efforts to be as sustainable a company as we can be.”

The process also allows EcoSynthetix to focus on R&D in Burlington and leverage the strong academic talent pool in nearby Waterloo. The company’s four-year collaboration agreement with the Institute of Nanotechnology includes four professors and eight PhD and graduate students.

“We started as an R&D company, which was necessary to develop and patent the products we sell,” says Van Leeuwen. “As we started commercializing more products, we recognized the value in tying back to the academic community. Speed to market is essential to our business because the world is consuming oil at an alarming rate…We’re training people that we may hire later on to feed our scientist pool, which can turn into new products.”

The heavily automated pilot line delivers an additional 80 million pounds of product per year and is equipped with the capability of handling multiple types of raw material feedstocks and extracts a sample every five seconds, enabling product quality data cataloguing on a lotto-lot basis, and bag-to-bag basis.

The downstream portion of the extrusion facility is equally sophisticated with very stringent package weight control and ultrasonic bag sealing to eliminate any potential ingress of moisture. Packaging options range from 25-kilogram bags to super-sacks and bulk delivery via rail car or tank truck.

“The pilot plant allows us to take an idea and scale it up once its proven to make production quantities, which we can then roll out to our manufacturing plants,” says van Leeuwen. “We’re trying to collapse the evaluation cycle that the customer normally has from something that takes years to something that’s less than a year.”

That speed in an industry worth $60 billion, van Leeuwen says, will take EcoSynthetix to the next level.

Comments? E-mail mpowell@plant.ca.

PLANT 11

13-07-26 9:01 AM

Management

>> Productivity

Improve the performance of your manufacturing operation by engaging employees to drive productivity improvements.

By AlAn RogeRs

M

anufacturers are facing unprecedented competition. As raw materials and other costs rise, company owners are feeling the pressure to lower costs and increase productivity.

There are ways to improve business without breaking the bank. Almost every plant can improve operational performance by at least 10%. Indeed, in some cases efficiency can be improved by as much as 50%, but employees must be engaged.

People drive productivity. Working with front-line staff will identify the best ways to increase profits. One plant that pursued this ‘people and productivity’ agenda continues to reap the benefits.

The supplier of household products harvested significant savings at its powdered laundry detergent packaging plant by addressing issues that affected productivity and material yield.

The plant was having trouble keeping up with production demands and cost overruns were significant, including annual material losses of $2.4 million from product overfill. Equipment was not used efficiently and downtime was an issue.

There was also a lack of standardized training on the shop floor, which made it difficult to maintain consistent performance.

The plant’s employees were brought into the transformation process from the beginning. The plant manager, supervisors and those who worked on the shop floor were shown that the operation was not performing to its potential because of three related issues: equipment was running below target speed, the amount of downtime on the packaging lines and

Bring plant employees into the transformation process from the beginning to focus on how operations could improve.

PHOTO: THINKSTOCK

PeoPle and Productivity How to mAke tHe connectIon

material waste. They learned the solution to these issues required engagement and accountability.

Key personnel were coached and several workshops were held to show them: • How to identify the biggest opportunities for change within the plant.

• How to quantify performance and prioritize the problems causing lost time and money.

• Advanced problem solving techniques.

• Principles of continuous improvement and what’s required to continue a process of focusing, prioritizing and problem solving.

To sustain results and accelerate

internal improvements the project team worked with employees to determine what they were doing on an hourly basis, built tracking mechanisms and then developed accountability structures. All levels of management were empowered to review performance every hour.

Sustaining improvements The result was improvements worth $1.36 million annually from a 39% reduction in material overfills and a 19% improvement in equipment efficiency and workforce engagement, training and accountability structures at all levels of the organization helped to sustain the improvements.

>> training

Addressing skill shortages

look inside your organization for the solution

By HugH Alley

W

e have all heard about skill shortages but many manufacturers find conventional solutions aren’t adequate.

Degrees, diplomas or apprenticeships take too long to deliver the skills, and for niche manufacturers (most canadian firms qualify here) there isn’t enough demand for needed skills to justify a program. the last time we ran into this problem was during wwII when women with no experience in manufacturing streamed into new plants producing new products.

In the us, the solution was an initiative called training within Industry (twI), developed initially to alleviate a shortage of lens grinders. In 1940, it took five years to train one,

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but because lenses were essential for most armaments, manufacturers couldn’t wait that long.

By looking carefully at the task, they were able to break it down into 19 teachable skills. within months they had training time down to five months. At the end of a year, a new lens grinder could be trained in five weeks. By 1944, one plant could take a green labourer and have that person grinding lenses at normal production rates within five days! you can address training needs in a similar way without waiting for governments to step in or by making huge investments in curriculum development. And learning how how to instruct – at least at a basic level – takes about 20 hours over a few weeks.

Here are six steps to get you there:

A woman spray paints the landing gear of a De Havilland Mosquito airplane.

Here are some tips that will help you improve productivity: • Follow the money. Prioritize and examine the areas that represent the largest annual cost to the business and prioritize the ones that represent the best opportunities for improvement.

• Compare plant IT data from the last six to 12 months with an on-theground assessment. What does the data say should actually be happening?

Are there discrepancies with what is observed on the shop floor?

• Interview as many people as possible about their perceptions of the data. After observation and analysis, circle back to the shop floor, supervisors and management to get a sense of how issues and challenges are perceived.

These insights are crucial when it comes to implementing recommended changes.

• Challenge processes and solutions. If the problems were simple to solve they wouldn’t exist. Take the perspective that “this machine can run better, let’s figure out how” rather than “this is as good as it gets” or “it has always been that way.”

• Measure and prioritize problems.

Always base prioritization and action on evidence and facts.

• Provide training and facilitate buy-in from those who will drive the change. Determine who can best drive the change and train them. Train staff on process changes and implement accountability structures.

Most importantly, show people the results they have achieved, which will help position the plant for long-term success.

Alan Rogers is business manager at Newton North America, an operational and financial improvement firm with offices in Canada, Europe and the US. E-mail alan.rogers@newton-na.com. To access Newton’s whitepaper on worldclass manufacturing go to http://bit.ly/ Vy9ROu. Comments? E-mail jterrett@plant.ca.

• Figure out which tasks will free up the skilled operator fastest.

• Train junior people to do offloaded tasks for an an immediate capacity gain.

• Specify tasks for the operator’s freed-up time, such as reviewing upcoming work orders to ensure that all the required information is present.

• Train juniors to do more complex portions of the task over time. there are several advantages to this approach: you’re training someone motivated to work and willing to learn; it demonstrates there are opportunities to progress; and people only train for skills that are actually needed. But the most important benefit is training responds to your current needs.

PHOTO: RONNY JAQUES/NFB

• Train leads or supervisors in TWI Job Instruction.

• Have your best operator (who works fastest and with fewest errors) divide jobs into learnable tasks.

Hugh Alley is president of First Line Training Inc. in Burnaby, BC, which focuses on increasing productivity by improving the skills of front line managers and supervisors. E-mail halley@firstlinetraining.ca. Visit http://firstlinetraining.ca.

July/August 2013

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13-07-26 9:04 AM

Management

>> exporting

mexico is growing faster than Brazil and exports as many finished goods as the rest of latin Ammerica.

By mARk DRAke

P

iña coladas and watching the sunset? Mariachi music in the local taverna? Endless beaches in Baja California? Or drug violence, kidnappings, corruption and massive emigration to el norte? Whatever your first impressions of Mexico, these stereotypes are rapidly becoming out of date. It’s changing, and Canadian exporters should take advantage of the many opportunities that are becoming available.

Our NAFTA partner since 1994 has signed international trade agreements with 43 other countries, including Japan and the European Union, and is very much “open for business.” In fact in terms of per capita GDP at around US$10,000 it’s ahead of the South Korean economy (surprised?), is growing faster than Brazil, and exports as many finished goods as the rest of Latin America combined. As the eleventh largest economy worldwide (GDP), and the second in Latin America with relatively low inflation (4.2%), a competitive wage structure, a population of 114 million and an increasingly open economy, Mexico is looking exciting as a country with which to trade and invest.

This change is due to a number of factors. First, China’s position as the “world’s manufacturer” is being eroded by wage and transport cost increases, and international corporations are even looking at moving facilities from China to a more competitive environment closer to the huge North American markets. Already, according to The Economist Mexico has the “world’s biggest exports of flat screen TVs, Blackberries, and fridge/freezers, and is rapidly climbing up the rankings in cars, aerospace and more.” Check out their report at www.economist.com.

Another change is the movement of people. As the economy improves, northward emigration has dropped significantly, and there are now as many people returning as moving to the US (helped of course by tight US border controls and a faltering economy there). Over the period 2005-2010 returns to Mexico matched those moving north, and whereas in 2000 there were 1.6 million failed (intercepted) border crossings, these had fallen to 286,000 by 2010.

Security is still an issue especially in some areas of the country. The Canadian government has no general advisory except to “exercise a high degree of caution” but has some area-related “avoid travel to” recommendations, particularly for the northern states. Check them out at www. travel.gc.ca. Most of the violence is drug gang related and the government’s steps to combat this are having some effect.

Other concerns are corruption levels and excessive red tape, especially for small businesses. The World Bank reviews countries in terms of ease of doing

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Mexico’s exports are climbing up the rankings.

PHOTO: THINKSTOCK

NAFtA’s other

PArtNer

excItIng economIc cHAnges aFooT In MexIco

business at www.doingbusiness.org. Its most recent report noted that Mexico’s bureaucratic challenges varied from state to state, and that if current best practices in individual states were introduced throughout the whole country, its ranking would improve dramatically. As it is, in terms of ease of doing business it ranks 53rd out of 183 countries and 75th for start-ups. This compares interestingly with the US (4th ), Japan (20th), Chile (91st), Argentina (113th ) and India (132nd). The World Bank expects Mexico to improve to level 36 in 2013 as modifications to red tape and simpler

bureaucratic procedures are put in to effect. Their new one-stop shop for startups (www.tuempresa.gob.mx) should help – provided you can read Spanish!

Special partnership Canada has had close relations with Mexico for many years, and bilateral business has increased significantly since NAFTA was signed in the mid nineties. Apart from that special partnership, Canada and Mexico get together regularly at the North America leaders summit, and the new president-elect Peña Nieto was welcomed in Ottawa by Prime

Minister Harper last November, following which a Canadian government and business mission visited Mexico taking in the inauguration of the new president.

Export Development Canada (www.edc. ca) notes that bilateral trade was US$33 billion in 2011, and that Mexico was Canada’s fifth largest market. Main exports (and opportunities) are in aerospace, automotive, agriculture, mining, oil/gas, plastics/chemicals, power generation and ICT. Mexico is more open than it was to imports and foreign investors in all markets except energy (where Pemex reigns supreme) and telecoms, but relatively inefficient private sector monopolies control many of the main industrial sectors including bread, TVs and cement.

The new president says he has plans to break them up. Veremos!

In terms of Foreign Direct Investment (FDI), Canadian companies have invested more than US$11 billion in Mexico during the past decade. According to EDC, Canada is Mexico’s fourth largest investor and has 2,500 Canadian affiliates operating in the country.

The Canadian Chamber of Commerce in Mexico (www.canchammx.com) helps with networking and advocacy for Canadian companies, and hosted a visit by EDC’s chief economist Peter Hall in January. It has 400 members and representation in Mexico City, Monterrey, Guadalajara and Matamoros. Other useful business organizations in Mexico can be found at www.canada.gc.ca under the Trade Commissioner Service.

EDC has a report on “Doing Business in Mexico,” which is free upon registration at their website. PWC has 280 pages on the same subject at www.pwc.com.

Canadians can still enjoy piña coladas and mariachi music in Mexico, but there is now much more to tempt the international trader to take another look at this growing and closeby market.

Mark Drake is former president of Electrovert Ltd. and the Canadian Exporters’ Association. E-mail corsley@ videotron.ca.

Comments? E-mail jterrett@plant.ca.

>> Asia Pacific

Canadians are uneasy about Asia’s rise aPF canada reveals caution about deeper engagement

W

hile acknowledging the importance of Asia for canada’s prosperity, canadians have limited enthusiasm for pursuing opportunities in the Asia Pacific region, according to the results of a poll by the Asia Pacific Foundation of canada (aPF canada). the annual poll shows fewer people see canada as part of the Asia Pacific region – down 11 points from last year at 18%. And they are especially cooler towards china with unfavourable or ‘cool’ feelings exceeding those with favourable views by a factor of three.

However, the aPF, a Vancouver-based think tank focusing on canada’s relations with Asia, said china tops the list of Asian countries canadians believe should receive greater emphasis in terms of foreign relations (54%). they also view china as the most important Asian country for canada’s prosperity (45%).

Here are some highlights: • Fewer canadians are enthusiastic about canada entering into free trade deals with Japan (60%, down 3% from 2012) or china (42%, down

6% from 2012).

• While 50% believe canada would benefit from more asian investment, support has fallen seven points from 12 months ago. most respondents remain opposed to direct investment from Asian stateowned enterprises, particularly from china (76%), India (72%) and Japan (58%).

• 54% support building pipelines to export natural gas to ports on canada’s west coast for export to Asia. However, fewer people now feel a sense of urgency to take advantage of Asian countries’ need for energy resources (53% in 2013 versus 61% in 2012).

• 70% are in favour of building ties with asia through cultural exchanges, increasing student exchanges and university agreements (59%) or providing development assistance to Asian countries that demonstrate progress in fostering democratic norms (64%).

The poll was conducted online in March among 3,474 canadian adults with a margin of error of +/- 1.7%.

July/August 2013

13-07-26 9:04 AM

Increase maintenance value GettinG oRGanized with 5s+1 Providing maintenance with a focus on basic lean principles will lead to immediate general productivity improvements.

By RichaRd Kunst

A

potentially working with this supplier and eager to explore the factory floor to examine its processes. The plant did look clean and organized, but then it happened. Two maintenance technicians passed our group with their super-large rolling toolboxes in tow. One of the senior leaders in the group spoke with the technicians and introduced us to them.

Our Sensei then asked to see the drawers and to empty the contents.

After a very brief review, he advised the president the tour was over. He had seen enough and was ready to conduct a debriefing session with the supplier lead team.

One of the first things he noticed was the contents of the drawers were disorganized, a key indicator the mechanics probably spent too much time searching for the proper tools while adding to the unscheduled downtime.

t the risk of making a sweeping generalization, I’m convinced most manufacturers are not optimizing their maintenance groups.

Based on years of manufacturing experience and many, many tours checking out the way companies manage their various processes, I have observed that maintenance folks tend to have the following common traits: a highly valued skill set; they’re always busy; like paramedics, they never travel alone when they administer first aid to equipment and machinery; and they like to keep a supply of everything.

Easy remedies So how can we make the department more proactive and In several cases standard tools had been modified for a increase its value? specific purpose, indicating a lack of robust processes and Get them organized through the application of 5S+1. This a strong preventive maintenance program. Upon further is a difficult task to accomplish broadly within the plant, but inquiry, the mechanics confessed certain pieces of equipment getting the maintenance team organized can be 100 times were constantly breaking down and this was an easy remedy. more so: remember, they’re always busy. Yet if a machine The toolbox had a huge chain and lock attached. This was suddenly breaks down, how much an indicator of a problem culture, despite search time is consumed walking the supplier team’s pontificating about back to the maintenance cave to respect for people. search for replacement parts?

Spare components the company All of those fittings, fastenproduced were stored in the ers and other gadgets used tool-chest to help operations for equipment first aid will meet numbers while the machine quickly consume cash. And was being repaired or adjusted. when equipment breaks, the A kaisen event will sort out accountability of expense these types of issues. Here controls is put aside to are some tips: get equipment up and • Get the team running. organized, but think To get better before you act. Sort value, categorize by commodity and MRO supplies and then machine type. place them on a kanban system or • Maintenance will be reluctant to cull vendor managed inventory (VMI) anything initially. Use an outside resource program. for the initial sort and hold a Red and YelMost companies remain focused on low tag event. just getting employees to complete • Date stamp everything and return anydaily total productive maintenance thing not used within a year for credit.

An organized toolbox eleminates time wasted on (TPM) tasks. Encourage your me• Measure reactive versus preventive searching.

PHOTO: THINKSTOCK chanics to become pro-active. If you maintenance. already have a TPM program in place, have them conduct • Train your technicians in formal problem solving to help daily audits of specific machines and operations. This is also them identify root causes faster. a great opportunity for enhancing the training of team mem• Leverage your quality department to monitor machine bers who run the equipment. Have them schedule the running repair logs. Using the standard array of tools will show reof a machine or operation for an extended period of time occurring defects and breakdowns, plus act as a bridge to during the week to find areas of opportunity, then determine engineering to solve the problem. how to enhance and improve the process.

As for the supplier company, the president was initially You should also audit your maintenance department to upset by the Sensei’s evaluation, but a return trip 12 months uncover process sins. later revealed dramatic improvements at the plant.

One of the most powerful supplier audits I participated in lasted less than 10 minutes yet provided a wealth of informaRichard Kunst is president and CEO of Cambridge, Ont.tion. When we arrived at the potential supplier’s plant, we based Kunst Solutions Corp., which publishes the “Lean were warmly greeted and escorted to a very ornate boardThoughts” e-newsletter and helps companies become more room where we were offered refreshments, and the leaderagile, develop evolutionary management and implement ship team bombarded us with information about how great lean solutions. Visit www.kunstsolutions.com. E-mail the company was. They emphasized their technology, comrkunst@kunstartofsolutions.com. mitment to people and how robust their processes were.

After a two-hour session I was feeling very good about Comments? E-mail jterrett@plant.ca.

www.plant.ca

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think Lean << Operations

>> safety

Travel with forks low.

PHOTO:THINKSTOCK

Don’t lose the load

how to avoid injuries while operating forklifts

F

orklifts can move large loads quickly with minimal personnel, but losing one highlights the importance of having safe work practices and ensuring they’re followed. a forklift operator in a metal fabricating shop in Bc who was moving a load of metal plates on a customized load-handling rack illustrates the point. the steel rack weighed 299 kilograms – large enough to affect safe operation of the forklift. the 2,794-kilogram load, over 1½ metres wide, was elevated about 2 metres as it travelled to clear a welding shield set up near a metal fabricator’s workstation. the forklift approached the workstation where a welder, back to the vehicle, was welding, wearing a helmet and hearing protection, and unable to hear the forklift operator’s attempts to get his attention. the welder turned toward the forklift as the operator applied the brakes, which sent the metal plates sliding off, tipping the forklift forward and causing the load rack to slide off the forks. the welder, pinned underneath the rack with its remaining metal plates, suffered broken bones. avoid accidents with these safe work practices: • consult the forklift manufacturer or a professional engineer before using any custommade load-handling attachments, racks or pallets that may affect stability.

• determine the load weight, centre and combined centre of gravity for each situation.

• do not exceed the recommended load limit.

• Position the load according to the recommended centre.

• do not add extra weight to counterbalance an overload.

• Keep loads close to the front wheels.

• use an effective means of communication to alert nearby workers.

• ensure there’s a clear view of the work area.

• ensure approved custom-made attachments and loads are properly secured before moving.

• do not travel with an elevated load.

• tilt loads backwards.

• travel with forks as low to the floor as possible and tilted back.

• Match speed to driving, load and workplace conditions.

• decrease speed at all corners, sound horn and watch the swing of the rear and load.

• watch for pedestrians.

• avoid sudden stops.

• Keep forklift routes clear.

This article was provided by the Canadian Centre for Occupational Health and Safety (CCOHS), a not-for-profit federal corporation that provides information, training, education and management systems. Visit www.ccohs.ca.

PLANT 15

13-07-25 11:29 AM

Operations

>> Regulations

REPRIEVED REPEAL OF ONTARIO’S INDUSTRIAL EXCEPTION SCRAPPED

Regulation would have directly impacted the way manufacturers customize their machinery.

BY MATT POWELL, ASSISTANT EDITOR

T

he repeal of Ontario’s Industrial Exception has been scrapped by the provincial government, much to the chagrin of Professional Engineers Ontario (PEO) but the move is applauded by Canadian Manufacturers & Exporters (CME).

Eliminating the “exception” would have directly impacted the way manufacturers personalize and make modifications to machinery and industrial equipment. “…The repeal would have had a detrimental impact [on] both the sector and the provincial economy, as manufacturers would be faced with increased costs, production delays and further skills shortages associated with new rules requiring the formal certification of engineers in the workplace,” CME wrote in a release.

The exception allowed some professional engineering work to be done on machinery or equipment by employees who don’t have an engineering licence. Had the regulation come into effect as planned Sept. 1, any customization or design changes to production equipment or machinery would have to be performed by an engineer or employee licensed by PEO. “This is an Ontario-unique situation. Repealing this section in the act puts Ontario’s regulation on par with the rest of the country, which we hope will make it easier for manufacturers to move across the country,” Marisa Sterling, an enforcement officer at PEO, told PLANT in an interview in April.

PEO says it’s disappointed in the government’s decision,

Repealing the exception would have meant any design change or customization would require an engineer or employee licensed by PEO.

citing grave concerns about the Ontario government’s decision to reverse a three-year legislative commitment that it says would have helped to ensure a healthier and safer workplace in Ontario’s manufacturing sector.

Numbers battle “Manufacturing accident and fatality rates in Ontario remain significantly higher than other provinces and the government had the opportunity to enhance workplace health and safety,” says Michael Price, acting CEO and registrar of PEO. “The repeal would have been implemented without any expense to taxpayers and little cost to employers, since PEO had committed to offsetting almost half of the licensing fee of anyone required to be newly licensed as a result of the repeal, and would have taken many manufacturing workers out of harm’s way.”

Ian Howcroft, vice-president of CME Ontario, says the PEO was never able to prove how the legislation would boost health and safety.

“They could never say how that would work to the best of my knowledge to boost health and safety,” he says. “In our meetings, the PEO made nothing but bald statements about fatalities, citing wrong information and unsupported arguments.”

PHOTO: THINKSTOCK

Price says the PEO pulled its statistics from the Workers Compensation Board, which claims that more than 50% (2011) of Canada’s manufacturing fatalities occur in Ontario.

CME has always claimed PEO’s numbers are highly inaccurate, instead citing the Workplace Safety Insurance Board (WSIB), which suggests there was only 78 on-the-job fatalities in 2011 out of the 3.9 million workers it represents in Ontario.

Howcroft says the regulation would have added unnecessary regulatory barriers and impairments, including impediments to attracting investment in Ontario while having companies spend huge amounts of money on process and regulatory requirements that weren’t going to reap any improvements in operational health and safety.

“Much of the success that Ontario manufacturers have had over the years can be attributed to nurturing a culture where safety is everyone’s business,” says Howcroft. “The repeal of the Industrial Exception would have shifted accountability to a single profession, and regressively affected the significance of that culture. This was – above all else – a thoughtful and sound decision.”

Comments? E-mail mpowell@plant.ca.

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13-07-26 9:05 AM

Energy Efficiency << Twin Rivers Paper eliminated the use of bunker oil and recovered its $17.5 million investment in less than four years.

T

win Rivers Paper Co.’s lumber division in Plaster Rock, NB, has tallied significant savings by replacing two oil-fired boilers with a new high-efficiency unit and Dutch oven biomass boilers that run on mill waste, mostly composed of bark.

The division employs 200 people and specializes in supplying softwood dimension lumber and studs for residential and commercial markets. The company operates year-round, except for a one-week annual maintenance shutdown; however, the boiler and kilns run 24/7 all year.

In 2008, the company approved the purchase of a $10.5 million biomass boiler with an additional $4 million for two new kilns and sawmill line upgrades, because the existing biomass boilers were undersized, at the end of their life and unlikely to meet new licensing requirements. Oil-fired boilers were needed to supply additional steam, which required more than 5.5 million litres of bunker C oil each year. Oil costs were reaching $3 million annually.

Maintenance superintendent Earle Fawcett said the 350-green-tonne capacity fuel bin feeds bark into the combustor with a step-grate design, whereby the biomass is conditioned or dried and then gasified and leftover carbon burned.

“This design allows for maximum efficiency, because it limits the air intake at the critical burning stage and adds air later to reduce emissions,” said Fawcett.

The gasification system eliminates the need for an electrostatic precipitator to control emissions, which means additional savings and the production of only 1.5% ash from combustion.

The flue gases heat water and gener-

OL CONTROL

Full

STEAM ahead LUMBER MILL SAVES WITH BIOMASS BOILER ate steam, while an economizer preheats the boiler feed water. A recovery system channels heat normally rejected from the boiler grate cooling system to infloor tubes in the fuel bins that dry and

>> Must Reading

Reliability revisited Jardine/Tsang book gets an overhaul

M

aintenance guru Andrew Jardine and co-author Albert Tsang have overhauled Maintenance, Replacement, and Reliability: Theory and Applications, with a second edition that revises and updates the original published in 2006.

This New Testament of maintenance application published by CRC Press covers the latest developments in the profession, including challenging data management issues, using a jack-knife diagram to prioritize component replacement, optimizing management assets with PAS 55 and maintenance’s role in sustainability.

The authors are both internationally recognized reliability experts. Jardine, a professor and director of the Centre for Maintenance Optimization and Reliability Engineering (CMORE) in the Department of Mechanical and Industrial Engineering at the University of Toronto, as well as the

IT INFRASTRUCTURE IT INFRASTRUCTURE www.plantmagazine.ca/rsc/ 108

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preheat the biomass, further increasing overall boiler efficiency.

The door is open for future power generation of five to seven megawatts because the new boiler is designed for expansion

The company specializes in lumber and studs for commercial markets.

PHOTO: THINKSTOCK

from the current 600 pounds of pressure, and a superheater could be added inside to accommodate a steam turbine.

“Less than four years later, the project has already reached its payback period goal, and the biomass boiler is operating smoothly; we have barely used the backup oil boiler since 2008,” says Fawcett.

The kilns were extremely inefficient, but he said the company worked with a manufacturer who integrated a recovery system that takes heat from kiln exhaust with an exchanger to treat incoming air, reducing the amount of steam required and lowering related biomass requirements of the boiler.

A weight scale system helps to drive optimal kiln performance, and variable frequency drive fan motors are used in many parts of the drying process. With the new kilns, the mill now heat-treats all of its lumber, saving the company additional money.

Source: Natural Resources Canada

author of several books and many papers on maintenance and data management, has also authored software widely used in industry.

Tsang, retired from the Department of Industrial & Systems Engineering at The Hong Kong Polytechnic University but currently a senior teaching fellow there, is an international speaker on matters of quality and reliability. He holds four patents, is the author of WeibullSoft, a computer-aided self-learning package on Weibull analysis, and is the author/co-author of several books.

They’ve based the book’s content on the results of real-world research in physical asset management with a focus on data-driven tools for decision-making. Case histories show the mathematical models at work in a variety of settings, such as food processing, petrochemical, steel, pharmaceutical, military, mining, and transportation sectors.

Downloadable PowerPoint slides lead you through the book material and there are problem sets with answers at the end of each chapter.

Software for many of the tools download from the book’s CRC Press webpage, some of them educational versions developed by Jardine.

The suite also includes e-learning materials developed by Tsang.

Visit www.crcpress.com/browse/series/crcdekmeceng.

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13-07-26 9:05 AM

Innovation

>> Progress Report

WHY Canada lags

Only one in six companies adopt the most successful strategy: territorial expansion.

T

WE’RE NOT APPLYING THE BEST STRATEGIES Successful firms orient innovation efforts to compete globally.

PHOTO: THINKSTOCK

here’s a reason Canadian firms are innovation laggards globally. A new report from the Conference Board of Canada shows few of them focus on the most effective innovation strategies.

The Ottawa research firm says Canadian companies that focus on expanding into competitive markets outside of North America – and orient their innovation efforts to compete globally – reap the best bottom-line results, but only about one-sixth of businesses do so, according to its report, The State of Firm-Level Innovation in Canada.

Published by the Conference Board’s Centre for Business Innovation, the

report is based on 2012 survey findings from 628 leaders representing small to large firms in many industry sectors.

“Few companies pick the most successful innovation strategy of expanding to provide products and services to new international markets, even though these firms earn between 10% and 30% more net income than their counterparts using other approaches,” said Bruce Good, executive director of the Centre for Business Innovation. “Most Canadian firms prefer to operate within provincial or national borders – or in North America.”

The report notes their lower performance than companies targeting global markets reinforces the observation that Canada doesn’t suffer from an innovation gap, but from a commercialization gap and the marketing that goes with it.

The Conference Board’s 2012 CEO Challenges Survey shows innovation slipping a point in the priority list to seventh place, noting the link to Canada’s poor 14th place showing in the World Economic Forum’s 2012-2013 Global Competitive Report.

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The types of innovations pursued the most are product (by 18%) and customer experience-oriented (17.6%), followed by service (14.5%), technology platform (13.6%) and process (10.8%).

Here are some survey highlights: • Fewer than 15% of companies adopt a strategy to expand their territory-market even though firms that do often show better financial performance than the companies pursuing other innovation strategies.

• Most prevalent innovation challenges include a lack of funding, organizational culture, poor innovation training, fear of risk, lack of executive focus and a lack of innovation measurement.

• Most Canadian firms use internal cash.

Government financing is second, ahead of private equity and bank financing.

• There is a strong correlation between the intensity of innovation efforts and company performance, but only if innovation activities are well managed.

• More than half of the companies pursue a user needs-driven innovation strategy to obtain new ideas that form the basis for developing products and services.

• About one-third of firms adopted a technology-driven strategy that relies on exploiting advances in technology to gain a competitive edge.

• 14% made territorial expansion the focus of their innovation strategy.

The Conference Board says firms that look to expand the size of their markets/ territory make more use of internal financing and less use of government funding or private equity than firms with user- or technology-driven innovation strategies.

This report is the second in a series that provides insight into the status of firmlevel innovation in Canadian industry.

For a copy visit www.conferenceboard.ca and go to the e-library.

6/5/13 2:23 PM

July/August 2013

13-07-26 11:41 AM

APMA Conference Report << Trends AUTO SALES 2013 OUTLOOK Global vehicle sales: 85 million units North American sales: 16-16.5 million units North American production: 17.5-18 million units Canadian production: 2.5 million units Canadian sales: 1.72 million units (record year) US production: 12.5 million units US sales outlook: 15.6 million units Mexico production: 3 million units Mexico sales: 1.10 million units Annual growth of 300,000 units until 2018 (17.6 million units) Detroit Three (GM, Ford, Chrysler) growth until 2018: 1.9% “New domestics” growth until 2018: 2.9% Average industry growth of 2.4% annually until 2018 Source: Kim Korth, IRN Automotive Inc.; Jenny Lin, Ford Motor Co. Chrysler Canada CEO Reid Bigland, discusses the importance of product development and enhancing customer experience with the media.

PHOTO: APMA

BEST of times, WORST of times

AUTOMOTIVE SALES ARE GREAT, BUT INVESTMENT IS GOING SOUTH

Industry leaders continue to urge auto parts manufacturers to leverage opportunities away from home and innovate.

BY MATT POWELL, ASSISTANT EDITOR

C

anadian auto parts suppliers are feeling pretty good these days but they shouldn’t get too comfortable.

The message at this year’s Automotive Parts Manufacturers’ Association (APMA) conference in Windsor (June 5-6) was clear: seek opportunities outside Canada to ease pressure from fast-growing players abroad; yes, an inflated currency is inflating labour costs – quit complaining about it; and be more innovative.

On the bright side, Canadian auto sales are on track for a second-consecutive record year. Industry analysts expect sales of 1.72 million units in 2013, the sector’s best since 2002. North American sales are expected to top 16.5 million units, while production will top 18 million units, according to IRN Automotive Inc. Although strong sales numbers are a sign business has picked up, it’s the “what’s next” that has people scratching their heads. The Canadian auto sector is growing, just at a much slower pace than its competitors around the world.

“We hate to say it, but this really is a tale of two cities [as in ‘best of times, worst of times’],” says Steve Rodgers, APMA’s president. “Volumes are great and suppliers are running at or near capacity, but they’re going to have to expand. Luckily this is a good time and most of our members are profitable, and that’s likely to continue for the next two years. The downside, however, is the huge focus on logistics and pressure to move operations stateside.”

The automotive landscape in Canada is certainly changing. Automakers are diversifying production to cheaper labour markets such as China, India and particularly Mexico, where the Detroit Three, Mazda and Nissan

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are either setting up shop or expanding existing facilities.

Parts makers, including Denso and Magna, are also beefing up their Mexican operations, where the sector’s share of employment has ballooned to 500,000 jobs. As those facilities continue to pop-up, OEMs will likely seek out local suppliers to cuts costs.

“OEMs and Tier 1s want their suppliers close, and their message has been very clear: if suppliers don’t localize, they will not get their contracts renewed,” says Carl Marcotte, vice-president of transportation at Export Development Canada (EDC).

Meanwhile, OEMs such as Chrysler, are responding to their own challenges.

NA LIGHT DUTY VEHICLE PRODUCTION (R-12) Units (in millions) 18 17 16 15 14 13 12 11 10 9 8 7 Jan Jan Jan Jan Jan Jan 02 04 06 08 10 12 Source: IRN’s Automotive 02 (May) 2013 Forecast

Forecast Units M 2013 15.6 2014 16.4 2015 16.7 2016 17.1 2017 17.4 2018 17.6

Jan 14

Jan 16

Jan 18

Luncheon keynote speaker Reid Bigland, CEO of Chrysler Canada, focused on the rejuvenation of the brand, emphasizing the importance of rethinking product development to enhance customer experience.

“It’s more than product because it’s becoming increasingly hard to differentiate from the number of players in the market,” he said. “But we’ve done that by redefining the culture and values of our business.”

Chrysler, saved by a Canada/US government bailout in 2009, saw its sales on the North American side jump 26% to more than 1.35 million units in 2011 and another 21% in 2012 to 1.65 million. Bigland attributes the company’s comeback to the North American introduction

of the Fiat 500 compact and some clever “hometown” marketing for its Chrysler 200 sedan.

The “Imported from Detroit” series of commercials featuring rapper Eminem that aired during the 2011 Super Bowl represented a significant milestone in the company’s resurgence, he said.

“We had sold 8,000 Chrysler 200s before the Eminem ad. After the Super Bowl, we ended 2011 selling more than 47,000 units, and in 2012, more than 72,000,” he said. The commercials got people to dealerships, where they were able to see how the company had improved.

“They’re all about value driven, hands on, making decisions quickly, moving quickly and designing quickly.

That’s what saved Chrysler,” said Rodgers.

The evening keynote was a similar tune. The GAZ Group, a Russian manufacturer of almost everything automotive from compact cars to buses, was billions of dollars in the hole when Bo Andersson, a Swede, took over the company as CEO in 2009. By 2012, the company had turned out revenues exceeding $860 million and is once again profitable.

The company’s headquarters in Nizhny Novgorod, Russia houses a 3 million square-metre manufacturing plant that employs more than 52,000 people, and there are 12 more plants across 10 regions in Russia.

“We’ve sold more vehicles in the last two years than we did 30 years before,” said Andersson. “And it’s because we focused on building the best vehicles we could through design and R&D and on the people that work for us.”

GAZ is now the fifth largest bus maker in the world, and Andersson expects more than 75% of the company’s lineup to be refreshed in the next three years.

Known for his brazen and brutally honest management style, Andersson only fired the company’s management team. By 2011, GAZ’s rebirth earned him the Automotive Executive of the Year award at the International Russian Automotive Forum.

Rodgers is a big fan.

“Bo looked after his people. He gave them raises. He hasn’t asked for wage cutbacks and he made it about productivity. He got everyone to buy into the program,” said Rodgers. “He made sure he was producing a good product by being involved in all functions of the organization.”

The future, now brighter for Chrysler and GAZ, is also looking positive for the global sector, with the exception of Europe, where sales aren’t expected to top more than 13 million units. That’s more than 4 million shy of 2008’s total sales across the 27-nation European Union, which has been in recession for the better part of two-years.

A full European recovery isn’t expected until at least 2018, said Kim Korth, president of IRN Automotive Inc., a Grand Rapids, Mich.-based automotive consulting group.

In terms of production, Korth projects an increase in production of more than 1.3 million units globally in 2013, and another 2 million units between 2014 and 2018.

Most suppliers are also having issues keeping up with Continued on page 20

PLANT 19

13-07-26 11:41 AM

& QA

Winds of change Continued from page 19

current demand, while OEMs are operating close to 100% capacity. She does, however, anticipate periodic production disruptions worldwide due to material shortages, quality issues, and troubled suppliers, but she is confident both suppliers and OEMs will add capacity in the next one to three years by expanding existing facilities or gaining capacity through acquisition.

“It’s a great time to be in the automotive industry,” she said. “But suppliers need to focus on maximizing the profitability of the manufacturing footprint they have and add capacity when there is no alternative.”

Korth also expects there to be a 50/50 split between sales of passenger cars and light-duty trucks, led by a healthier market for housing starts in the US. Industrial expansion in Western Canada is also creating a healthy appetite for pick-ups.

Sales of passenger cars will be led by crossovers at more than 5 million units. Compact cars are expected to top 4 million, while mid-size cars won’t surpass 3.2 million in sales.

Detroit Three New Domestics

10.0 7.5 5.0 2.5 0.0 2005 05

07

08

CAGR

09

10

11 12 13F 14F 15F 16F 17F 2018F

2005-2013F

2013F-2018F

Detroit 3

-3.1%

1.9%

New Domestics

4.9%

2.9%

Total Industry

-0.0%

2.4%

Source: IRN’s Automotive 02 (May) 2013 Forecast

She anticipates more than 120 global launches annually between 2013 and 2020, while 70% of current global vehicle offerings will be refreshed or brand new within the next five years, which OEMs and suppliers will have a hard time supporting. By 2020, only 20% of vehicles will be launched in North America.

With such drastic change coming, she advises auto parts suppliers to prepare for the future.

“Examine your product and customer mix because this is the kind of business environment that can really improve your company’s sustainability,” said Korth.

“There’s no excuse for not diversifying your customer base – it’s just lazy not too.”

Marcotte agrees, suggesting that with the uncertainty in the global economy, emerging markets are outpacing the developed world, averaging about 5% annual growth compared to 2% in developed nations.

Some of that growth is led by what Marcotte calls “south-south” trade: trade between emerging markets, which include China, Mexico, Brazil and India. Business between these countries could double to 25% of global commerce by 2030. Consequently, the share of trade between developed countries and southern markets is expected to fall from 50% to 30% in the same time frame.

“This should be a signal to us all: the centre of gravity of the world economy is shifting faster than you would have believed five years ago, and this trend will accelerate,” said Marcotte.

For auto parts manufacturers, the message is clear: explore opportunities abroad and leverage them by investing strategically in capacity at home to ensure you’ve got the cash handy when your customers come calling.

Comments? E-mail mpowell@plant.ca.

20 PLANT

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APMA PRESIDENT IS CONFIDENT, BUT COGNIZANT OF THE CHANGING MARKETPLACE PLANT’s assistant editor, Matt Powell, sat down with APMA president Steve Rodgers to discuss the Canadian auto parts business and what lies ahead.

NORTH AMERICAN PRODUCTION Detroit Three VS New Domestics Units (in millions) 12.5

with Steve Rodgers

PHOTO: APMA

>> APMA Conference Report

Trends

D

escribe the current state of affairs in auto parts manufacturing.

Volumes are great, suppliers are running at or near capacity, and they’re going to have to expand. This is a good time and most of our members are profitable. That is likely to continue for the next two years. The downside is the huge focus on logistics and huge pressure to move operations stateside. The US recovery is also playing a role and as it continues, they’re offering huge incentives to encourage onshoring. Factors in Canada such as the big exchange rate and high power costs will continue to leave us a little bit less competitive and there are no new investments in assembly or powertrain facilities coming, so that’s a concern over the next few years. ow are environmental challenges going to hit the sector? What needs to happen?

In the short term, it’s much more about meeting OEM requirements. We’re starting again to see, with more and more global platforms, companies sourcing off big chunks of business. But it’s not just business in NAFTA, it’s also a vehicle that’s being build in Europe and China, therefore only the biggest suppliers with global capabilities are able to compete for that kind of business. Some Tier 1 suppliers will have to become Tier 2 suppliers to support those activities. hat kind of future do you see in automotive investment in Canada?

We lose the Camaro in 2015, and I wouldn’t say that the North American OEMs are trying to move out because the facilities we have are stable. It’s more about what we need to do to attract investment. It’s something we’re focused on, something that Industry Canada is focused on, and there are a number of activities underway to see what we can do to leverage free trade deals to get investment in Canada. hat does the government need to do to attract automotive investment?

There needs to be some funding available to support investment. There are also some infrastructure issues that need to be cleared up. Companies look at things as minute as how many steps it will take to get a building permit. It even comes down to looking at school absenteeism in a particular community. In Mexico right now, getting a building permit is a single step process, which is not the case in Canada. That’s not to say there’s any less steps, but they have organizations that will make that happen. We need to look at power costs, and harmonize federal and provincial regulations. It comes down to an attitude dedicated to being productive and ensuring we’re able to handle potential investment

H

W

W

when companies come calling. ow about the new union, Unifor: do you foresee any issues with their restructuring in the near future?

We don’t see any issues in the short term. The CAW has a very good idea of what the automotive situation is in Canada. But over the longer term, our fear is that they may be willing to sacrifice the automotive side of the house because they see that as the least future opportunity. So if they want to demonstrate a hardline stance, they’d go that route because automotive represents a small percentage of overall membership. Obviously we’re worried about those kinds of situations in the long term because they could become more political and not so much focused on specific automotive jobs and opportunities. o Andersson (CEO, GAZ Group) made a massive Russian auto manufacturer that was billion of dollars in the hole profitable again in less than five years. Would his militant, abrasive leadership style work in a Canadian automotive environment?

It would. Bo looked after his people. He gave them raises. He hasn’t asked for wage cut backs and he made it about productivity. He got everyone to buy into the program. Everybody from the dealer body to the employees had to be on board to make it work. He took a facility that was losing massive amounts of money and made it profitable because he focused on the people and making sure he was producing a good product by being involved in all functions of the organization. That’s the kind of situation we need here. eid Bigland (CEO, Chrysler Canada) focused on the rebranding and rejuvenation of Chrysler in his keynote speech. What led to Chrysler’s comeback, including their doubled sales figures in the last four years?

It’s very simple: hands on, value driven. When (CEO Sergio) Marchionne came in, the company was built on more of a hierarchal structure. Management was up on higher floors, not driving the vehicles themselves. They didn’t understand the vehicles and that’s why they performed so badly. But when Marchionne moved downstairs and became more accessible, things started to happen. The same thing happened at GM with Bob Lutz.

These guys got right in there and when they needed to make a decision they could do it quickly. s flattening the organization the kind of advice you’d give to any business in this industry?

Absolutely.

H

B

R

I

July/August 2013

13-07-26 9:39 AM

Optimization << technology

The world’s first commercially viable quantum computer is helping Lockheed Martin, Google and NASA solve complex optimization problems.

BY MATT POWELL, ASSISTANT EDITOR

I

n the good old days of computing, it took a roomful of metal cabinets and blinking lights to perform functions that your desktop or laptop can do in seconds with a chip the size of a coin and some smarty-pants software.

Indeed, we have become quite blasé about the technology we use everyday at home or work, but an advanced technology company in BC has successfully executed a quantum leap in the computing universe that has the potential to solve problems far beyond the capabilities of digital systems.

D-Wave Systems Inc. makes “quantum” computers: 10 square-metre super computers that perform mindboggling (to non physicists) computing in a fraction of the time a conventional system would.

The Burnaby, BC-based company’s list of clients include Lockheed Martin, Google and NASA, and they’re producing results showing the D-Wave technology does the math at an incredible speed. Lockheed is using it to speed up complex computation tests.

The technology is based on quantum physics, a theory that’s difficult to describe (but responsible for the study of semiconductors, which led to the invention of the diode and the transistor, both key technologies in modern electronics).

D-Wave’s innovative computer makes direct use of quantum mechanical phenomena, such as superpositioning and entanglement, to perform operations on data. It’s different from a digital computer that’s based on transistors requiring data to be encoded in binary digits (1 and 0).

The quantum unit employs qubits, which exist in two states – on and off (simultaneously) – to speed up calculations, but also operates outside of the normal “gate” model of computing. It’s actually an adibiatic computer that reads out the ground state of its qubits to find a solution. The model is well-suited to solving optimization problems where any number of criteria can be examined simultaneously.

To put things into perspective, such a super computer would figure out all the factors of a 2,000-bit number in about 16 hours, while a conventional computer could do the job in about 10 years. The systems can also be taught to do things such as recognizing specific objects in images.

“Compared with conventional computing…the fundamental idea is that you

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SUPER

>> Supply Lines

computing

D-WAVE’S QUANTUM LEAP

KUKA robots operate along the automated production line at the KTPO plant in Ohio.

PHOTO: KUKA

1M wranglers asseMBled

D-Wave’s superconductivity 512-qubit processor chip is used inside a cryogenics system within a 11 x 7-foot shielded room.

PHOTO: D-WAVE SYSTEMS INC.

reach into the depths of physics and pull out these strange new things that could happen,” says Jeremy Hilton, D-Wave’s vice-president of processor development.

Solving problems D-Wave was founded in 1999 by Haig Farris, Bob Weins, Alexandre Zagoskin and Geordie Rose, the company’s current chief technology officer. The company originally operated as an offshoot of the University of British Columbia, maintaining ties with the Department of Physics and Astronomy, and funding academic research in quantum computing. With only a handful of employees, all PhDs and theoretical physicists, the company was set on studying the notion that quantum computers could solve the unsolvable.

Until 2004, D-Wave focused on uncovering the best applications for the technology, says Hilton.

“That’s when we had a breakthrough.”

The team committed to an application specific processor technology that would solve one particular problem. The D-Wave One system came equipped with a 128-qubit processor that performed discrete optimization operations using quantum annealing.

The first processors were so complicated and ahead of their time, they were manufactured at NASA’s Jet Propulsion Lab where semiconductor fabrication capabilities are the best. But by 2006, D-Wave had

partnered with a Silicon Valley semiconductor producer with enough capability to handle the complex parts. Manufacturing is still performed in California, but the testing and qualification of the processors is performed at D-Wave’s Burnaby headquarters, which keeps 70 employees busy.

“The chips in conventional computers are based on transistors, but ours are like tunnel junctions. By the time we got to the 128-qubit processor, it housed 24,000 tunnel junctions – that’s a huge jump in the manufacturing and production of these things,” says Hilton. “At the end of the day, these processors are mixed analogue and digital circuits which present exceptional production challenges.”

Quantum annealing is a mathematical operation that determines the extreme points of a function from a given set of discrete candidate solutions, a process that’s similar to quantum fluctuations, which is a phenomenon predicted by the Heisenberg Uncertainty Principle.

“Most people wanted to build a universal machine that solved every issue, but that made us a little nervous,” says Hilton. “Once we started researching optimization, we realized that a lot of the problems in business we were looking at are ubiquitous. These are problems that are difficult to solve – impossible to solve – so people make approximations which render the solution meaningless, making

The KUKA Systems manufacturing operation in Toledo, Ohio produced its one millionth body-in-white Jeep Wrangler in May. The wholly owned subsidiary of KUKA Systems North America LLC builds all the body-in-white two- and four-door Wranglers sold in the world and has done so since it began operations in 2006.

Body-in-white is the first shop in the assembly process that welds the vehicle together.

KTPO is one of four plants comprising the Toledo Supplier Park, the only venture of its type in North America. Two suppliers, each in its own building located at Chrysler Group LLC’s Toledo Assembly Complex, perform separate assembly functions.

KUKA Robotics Canada Ltd. operates a sales office in Mississuaga, Ont.

sales and training Partners Benchmark PdM, a Pickering, Ont.-based maintenance services and machinery installation company, has entered into a sales and training partnership with BHD Instrumentation Ltd. to complement laser sales.

BHD, a supplier of condition monitoring, process instrumentation and test equipment, provides rental, calibration and sales through its offices in Edmonton, Calgary, Vancouver and Brampton, Ont.

faBriC Buildings for tHe eu Norseman Structures is expanding its reach in Europe through a strategic business agreement with Lindab, a ventilation and building products company in Sweden.

Norseman, a division of Norseman Inc. based in Saskatoon, manufactures fabriccovered buildings and drilling rig enclosures.

BlaCKline distriBution deal GfG Europe Ltd., a distributor of safety products based in Essex, England, is distributing wireless employee safety monitoring and business tracking products from Calgarybased Blackline GPS to several European business sectors, including manufacturing.

Blackline’s Loner brand of devices provides instant, automated and real-time safety alerts to monitoring personnel.

Continued on page 22

Plant 21

13-07-25 11:32 AM

Cien

Validating software Continued from page 21

it impossible to impact a business at a normal scale.”

Such problems are exactly what Lockheed Martin is using D-Wave’s quantum computers to solve.

In 2011, the Bethesda, Md.-based aerospace and defence giant signed a multi-year contract with D-Wave to uncover the benefits of such advanced computing using the D-Wave One 128-qubit system.

“We’re trying to address the verification of validation.

When you design a system that has millions of lines of code, it takes an incredible amount of time to validate it,” says Brad Pietras, vice-president of corporate engineering and technology at Lockheed Martin. “Testing can take years or decades on the best system, but if you can test them simultaneously, it cuts that time significantly.”

In April, Lockheed upgraded its D-Wave One system to a 512-qubit D-Wave Two, comprised of a shielded room (that houses the actual fridge component, quantum processor, and peripheral electronics for controlling the processor), along with three 19-inch racks that support the data server and fridge control infrastructure. Said to be 500,000 times faster than its predecessor, the computer was reportedly purchased for $10 million (although this number is not confirmed

by Lockheed or D-Wave), and will be installed at the aerospace giant’s new Quantum Computation Centre at the University of Southern California in Los Angeles.

Infinite possibilites The processor is made from a lattice of minute superconducting wires that are chilled close to absolute zero, then programmed by loading a set of mathematical equations. The processor speeds through a near-infinite number of possibilities to determine the lowest energy required to form a relationship that produces an optimal outcome, and you have your answer.

“Building a new plane, which is almost completely driven by software processes and interacting with automated mechanical systems [involves a tremendous] amount of code, so having the ability to validate that code in a shorter amount of time not only speeds up testing, but also makes those systems safer and gets new products to market faster,” says Hilton.

Although Pietras won’t divulge specific applications, Ray Johnson, Lockheed’s chief technical officer, told the New York Times the company is exploring ways the technology could create and test complex radar, space and aerospace systems.

One extreme example involves the ability to tell how the millions of lines of software running a network of satellites react to a sudden solar burst or a pulse from a nuclear explosion in a matter of hours, instead of days.

So far, Pietras says the computer has perfomed as it’s supposed too.

“We fed the computer some code that we knew had bugs in it, and the computer caught the issue,” he says.

“The challenge now is understanding how the computer works and the boundaries of its performance, but DWave’s done a good job with its 512-qubit processors at identifying that trajectory of performance.”

Hilton is confident Lockheed won’t be D-Wave’s only manufacturing customer, suggesting the system is able to solve more than super-complex back-end code issues.

Indeed, logistics is an activity that suffers from fundamental optimization problems. And manufacturers that use robots could use the technology to enhance efficiency, network analysis and optimization Hilton adds.

“If you can solve optimization problems, you can uncover problems at the baseline for things like energy savings and boosting productivity.”

That suggests there is potential for manufacturers to make a quantum leap of their own that will unleash hidden value in their operations.

Comments? E-mail mpowell@plant.ca.

22 Plant

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Pumps & Valves lower tHe noise leVel

are ATEX-certified for use in hazardous environments. They’re explosion-proof The CXS160 and CXS250 dry pumps and pump corrosive gases from Edwards Group Ltd. have a novel without corroding to tapered screw for handling liquids ensure safe handling of and solids that lowers the noise flammables. output to a conversational 64 dB. They’re available as The manufacturer with US standalone units or headquarters in Sanborn, NY says complete systems with the pumps deliver deep and flexaccessories such as flame ible vacuum down to 103 mbar arrestors, knockout pots without contaminating the proand filters. cess stream or cooling water with Linde Canada Ltd. in Missisno effluent generation and are sauga, Ont. handles Canadian capable of continuous pumping of Continuous pumping. distribution. up to 1 lpm or a single 25-l slug. www.edwardsvacuum.com Flooded air-gap potted motors are up to 15% more efficient than standard and both pumps www.plantmagazine.ca/rsc/ 1

MoViteC oPtiMizes laser-welded HydrauliCs KSB Canada has widened its portfolio of small centrifugal pumps with the latest generation of Movitecs. The high-pressure 2013 series with a range of material and seal options features optimized laser welded hydraulics.

Applications range from fluid transfer to instant pressure boost. With seal variants rated for temperatures from -30 to 140 degrees C, these standardized centrifugal pumps handle everything from water (including acidic and alkaline solutions), alcohol and vegetable oils to petroleum products and condensates, liquid CO2 and LPG.

Flow rate up to 400 gpm.

PuMP seMi-dry or HigH solids sludges The Moyno 2000 Model G2 progressing cavity pump easily handles semidry or high solids sludges with its open throat hopper and auger.

Its crown gear-type universal joint is the heaviest-duty drive train configuration available in the industry capable of accommodating exceptionally high torsional and thrust loads at flow rates to 400 gpm and pressure up to 350 psi.

Patented joint seals protect the gear joints from contamination and the pump can pass particles up to 1.5 in. in diameter as well as handle fluid viscosities up to 1 million cps unassisted.

Varying hopper sizes are available.

Moyno Inc. is a unit of Robbins & Myers Inc., a pump manufacturer based in Springfied, Ohio. www.moyno.com www.plantmagazine.ca/rsc/ 3

Handle stringy fluids and slurries

A new addition to the line is a triclamp coupling is the connection of choice for pharmaceutical and hygienic food or beverage applications.

The pumps come in different sizes (up to 90 mm pipe diameter). Inlet and outlet nozzles are the same size and in line so the pumps are easily installed in piping systems. They’re rated for volumes of up to 113 m3/h (498 gpm) and discharge pressure of up to 2,496 kPA (362 psi).

KSB Pumps Inc., based in Mississauga, Ont., is a member of the KSB Group, manufacturers of pumps, valves and systems. www.ksb.ca

A new SGV Vortex head for Vanton’s SUMP-GARD vertical thermoplastic pumps handles fluids and slurries containing stringy materials or solids to 2 in. (51 mm) in diameter.

Solid thermoplastic construction of all wetted components allows corrosion-free, abrasion-resistant pumping of acids, caustics and a wide range of solids-laden wastes at temperatures to 135 degrees C. The SGV Vortex pump head’s recessed, dynamically balanced, clog-free impeller allows solids to pass through the pump without blockage. It’s offered on Vanton SG Series sump pumps for depths to 6.1 m, and SGK cantilevered bearingless run-dry pumps for depths to 1.2 m.

All fluid-contact components come in abrasion-resistant polypropylene (PP), polyvinyl chloride (PVC), chlorinated polyvinyl chloride (CPVC) or polyvinylidene fluoride (PVDF), which are chemically inert to the corrosive fluids they are specified to handle. And the heavy duty stainless steel shaft is isolated from the fluid by a thick-sectioned thermoplastic sleeve.

Vanton Pump & Equipment Corp. is a pump manufacturer based in Hillside, NJ. www.vanton.com Abrasion-resistant

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90 mm pipe diameter.

pumping.

July/August 2013

13-07-26 11:27 AM

Product Focus << technology It’s not the brush dissipating static. It’s safety improved. no leaKs or wear

Seal-less design.

Maag Industrial Pumps has added the EnviroGear seal-less internal gear pump line to its product portfolio.

The pump’s seal-less design with patented between-the-bearing support system eliminates leaks and mechanical wear. Magnets mounted directly to the rotor eliminate the adapter plate, which allows for a single-fluid chamber. The result is a much shorter, simpler flow path that easily handles fluids with high viscosities up to 50,000 cSt. Pumps made with ductile-iron provide pressures

from 1.4 to 13.8 bar (20 to 200 psi). Carbon- and stainless-steel are 1.4 to 10.3 bar (20 to 150 psi). Both handle temperatures from -40 to 260 degrees C. Maag is a Oakbrook Terrace, Ill. manufacturer of gear pumps, pelletizing and filtration systems. www.maag.com

Problem solved.

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torQue wrenCH PuMP oPtiMizes flow

A new hand-operated pump from Kurt Workholding provides constant pressure to hydraulic workholding setups with hydraulic vises, cluster towers and swing clamps.

The compact, portable and lightweight 5,000 psi air hydraulic pump provides constant pressure and holding power for a wide range of precision clamping applications. It’s driven by a high efficiency, 1 hp pneumatic motor and operated with a hand-operated switch lever.

The pump maintains constant pressure when the lever is actuated regardless of system pressure for accurate and repeatable clamping with every cycle.

Designed for single acting systems, the hand- and foot-operated pumps, each weighing 22 lb., are easily moved and reconnected from one clamping station to another.

When shop air is not available, Kurt as a 5,000 psi pump with a dump feature that shuttles pallets in and out of a CNC without the attached pressure lines. It has an adjustable pressure range of 580 to 5,000 psi.

Kurt Manufacturing Co. is a manufacturer of pumps based in Minneapolis. www.kurtworkholding.com

Enerpac’s TQ700 lightweight torque wrench pump with what the company describes as “optimized flow technology” delivers up to 50% faster bolting than traditional torque wrench pumps of equal size.

Three separate oil flow stages are maximized for a distinct portion of the bolt tightening process.

The first stage flow allows more oil to be used when free-turning the nut onto a stud, instead of depositing it to the tank.

Stage two begins when a stud starts to elongate and the rotation of the nut decreases, permitting the TQ700 to get the same amount of work out of less flow, while reducing the heat. This cooler operation results in longer pump life.

As the rotation of the elongated bolt slows further, the pump enters the third stage flow until the nut tightens and the proper torque level is achieved.

Less oil and heat are wasted throughout the bolting process and the job is completed faster.

Built off a Z-class platform, the TQ700 is engineered to meet the torque Faster bolting. applications in the wind turbine industry, in addition to general bolting applications.

The structural components of the pump incorporate lightweight and durable aluminum with a compact footprint that easily fits through wind turbine door hatches or other small spaces.

Use it for torque applications in remote, low-powered or generatorpowered erection sites, as well as on the factory floor.

Enerpac, based in Menomonee Falls, Wis., makes high-pressure hydraulics. http://www.enerpac.com

www.plantmagazine.ca/rsc/ 6

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Easily moved and reconnected.

Maintain Constant Pressure

Our experienced Sales Representatives, in-house engineering staff and design experts work with you to develop the most appropriate brush-based solution for your application.

Get the answers you need.

Call us today.

For more than 25 years, Sealeze has helped design and manufacturing engineers form solutions.

800.787.7325 e-mail: industrial@sealeze.com 800.787.7325 www.sealeze.com ISO 9001 Certified e-mail: industrial@sealeze.com

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www.plantmagazine.ca/rsc/ 113

HEARD FROM YOUR VISES LATELY? Ours Tells You How Well It’s Working Our NC vise is available with an integrated force gauge which tells you how much holding force is being applied to your workpiece. Minimal effort on the crank handle results in extremely high holding force because of the built-in hydraulic power of the vise. Now you’ll know if your part is being held properly.

• Reduced tool breakage • Better clamping quality • Workpiece deformation reduced • Correct clamping force • Ideal for roughing and finishing every time • Consistent process control • Reduced operator fatigue View all of our machining vises at:

www.clrh.com

Ellisville, MO 63021 (636) 386-8022

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13-07-25 11:32 AM

cieN PumPs And VALVes

accessory.

The discrete switch is a solid state circuit (1-A maximum) that opens and closes based on a user configurable trip point based on valve travel anywhere within the calibrated range or on a device alert.

The position transmitter is independent from the digital valve controller with the power coming from the control system analogue input channel like a standard 2-wire transmitter.

The DVC6200 communicates with the latest HART 7 standard. It may also be field configured to the earlier HART 5 standard to match any control system requirement.

For wastewater treatment.

sAve oN cHemicAL use Watson-Marlow’s 620 sodium hypochlorite pump for wastewater treatment applications runs dry so off-gassing chemicals will not cause vapour lock.

The pump reduces chemical use by maintaining +/- 0.1% accuracy in hypo metering.

It delivers 50% more flow with one tube compared to other peristaltics with a performance control ratio of a million to one.

The pump handles harsh chemicals in the water and wastewater treatment industry, including sodium hypochlorite, ferric chloride, sodium bisulphate, aluminum, fluoride, carbon and lime slurries, polymers, aqueous ammonia, potassium permanganate and caustic slurries.

With no valves or seals to clog, it requires minimal maintenance for reduced downtime.

Watson-Marlow is a manufacturer of peristaltic pumps based in Wilmington, Ma. www.wmpg.com

Peristalic pumping.

controls are easily user-accessible and allows the pump to be hung.

It pumps low to high viscosity liquids from source to destination from 0 to 300 rpm, with a flow range of 0-5,000 ml/min.

(1/2-in. tubing).

Aalborg Instruments and Controls Inc. in Orangeburg, NY makes flow measurement instruments. www.aalborg.com

gpm (91 lpm) to 12 gpm (45.5 lpm) per operator, and weighs just 15 kg.

The MGV24-1200 not only allows two operators to independently control the loading and dumping of pressure to their own lances, the modular design accommodates additional bodies to supply more lances.

And a quick-change, stainless steel cartridge means field repairs can be completed within five minutes. A camlock pressure adjuster locks the pressure without tools.

NLB Corp. is a manufacturer of water jetting pump units and accessories based in Wixom, Mich. www.nlbcorp.com www.plantmagazine.ca/rsc/ 11

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muLTi-GuN vALve rebuiLds iN miNuTes Discrete switching.

The series has CSA, IECEx, and FM hazardous and other certifications/approvals.

Emerson Process Management is a manufacturer of automation technology based in St. Louis. www.FIELDVUE.com

NLB Corp.’s MGV24-1200 multi-gun valve with two or more high-pressure water jet lances (or other accessories) operates from the same 24,000 psi pump unit and can be rebuilt in the field in just five minutes.

Use it with any dump-style lance with nozzles of different sizes.

The valve operates at pressures up to 24,000 psi (1,680 bar) and flows up to 24

www.plantmagazine.ca/rsc/ 9

seveN iNTervAL disPeNsiNG Aalborg Instruments’ TPV RP peristaltic pumps are timer-relay set to start and stop dispensing liquids up to seven time intervals.

Easily accessible controls enable priming, dynamic braking, rpm setting and flow direction reversing.

The adjustable pump handle makes carrying easy, serves as a base to lift and angle the pump face, ensures that the

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vALve coNTroL wiTHouT THe Add-oNs Emerson’s Fisher FIELDVUE DVC6200 digital valve controller series incorporates a 4-20mA position transmitter that also configures as a discrete switch, eliminating the expense, bracketry and maintenance requirements of an add-on

Pressures up to 24,000 psi.

Maximum 300 gph capacity.

coNfroNT cHALLeNGiNG wAsTewATer APPs Neptune Chemical Pump Co.’s Series 7000 mechanically actuated diaphragm metering pump takes on challenging water and wastewater applications.

It eliminates contour plates on the liquid side of the diaphragm, while the simple, straight-through valve and head improve flow characteristics.

The self-priming pump has a maximum capacity of up to 300 gph (1,135 l/h) at 150 psi.

Neptune, based in North Wales, Pa., manufactures chemical metering pumps. www.psgdover.com www.plantmagazine.ca/rsc/ 12

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July/August 2013

13-07-26 7:00 AM

Products and equipment << Technology AutomAtion

A range of 3 and 5 hp models.

GeN2.0 moTor reduces eNerGy use NovaTorque Inc.’s Gen2.0 PremiumPlus+ motors reduce energy use between 30% and 50% in air handling applications that operate up to 3,600 rpm.

The electronically commutated permanent magnet (ECPM) motors come in 3 and 5 hp, 1,800 rpm models (maximum speed 2,700 rpm), as well as high speed 3 and 5 hp, 2,400 rpm (maximum speed 3,600 rpm) models.

NovaTorque, a Freemont, Calif. manufacturer of motors, uses low-cost ferrite magnets in a flux-focusing design to deliver the same efficiency as rare-earth permanent magnet motors.

Driven by variable frequency drives, Gen2.0 exceeds induction motors with rated point efficiencies of 93% and 92% for 3 and 5 hp versions. www.novatorque.com

drum dumper units.

A 750 lb.-capacity, hydraulic carriage lifts the drum 14 ft. to the discharge point and rotates 180 degrees for a precise, dust-free seal of the 304-2b stainless steel discharge hood to the receiving surge hopper.

A pneumatically actuated slide gate valve controls material discharge from the drum into the hopper to ensure uninterrupted supply to the volumetric feeder.

Automated controlling of the feeder’s variable frequency drive gearmotor and pneumatically actuated diverter valve ensures blended material is supplied at the correct volume to the specified downstream packaging operation.

NBE is a Holland, Mich. supplier of automated bulk processing systems. http://nbe-inc.com www.plantmagazine.ca/rsc/ 14

test And meAsurement

Paddle wheel handles liquid flow measurement applications.

iNTerfAce mAkes mANiPuLATioN eAsy

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HANdLe buLk mATeriAL wiTH PrecisioN National Bulk Equipment Inc.’s fully automated, self-contained bulk material mixing system aids in process GMP validation; provides precise, automated performance; and improves operator safety.

The base ingredient is automatically introduced into the system from a single, 64 -ft.3 surge hopper that feeds either of two horizontal screw conveyors. The caustic, free-flowing additives are fed into the system by five, NBE lift-and-seal

LigHting imProves LiGHTiNG coNTroL for commerciAL APPLicATioNs

Easily programmable for fixed attenuation.

RF step units with calibrated operation up to 6 GHz that require no additional DC supply voltage because they’re powered by a USB connection.

They’re easily programmable for fixed attenuation or swept attenuation ramps directly from the included GUI. The API DLL and LabVIEW- compatible drivers are also available for custom programming applications.

Vaunix, a manufacturer of USB controlled and powered test equipment based in Haverhill, Mass., recommends the attenuators for engineering and production test laboratories and integration into high speed automatic-testequipment (ATE) systems.

They can also be used in development of low-cost fading simulators for multiple input, multiple output and single input, multiple output communication systems such as WiMAX, 3G and LTE. www.vaunix.com

eaton’s Cooper Wiring devices has expanded its lighting control solutions with a range of 0 to 10 V dimmers for commercial applications that are compatible with light-emitting diode (Led) and fluroscent 0 to 10 V ballasts. the 0-10 V dimmers are compatible with any decorator wall plate and Compatible with can be wired in either LED and fluorescent single-pole or three-way ballasts. applications. An easy-touse preset feature quickly returns lights to a previously desired setting, a full-slide control delivers seamless, precise operation and an adjustable output range increases dimming flexibility. they meet uL 94 requirements and include a V2 rating for temperatures ranging from -20 to 70 degrees C. Cooper Wiring devices is a subsidiary of eaton, which manufactures power distribution products. it’s based in Peachtree City, ga. www.cooperwiringdevices.com www.plantmagazine.ca/rsc/ 18

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The DPW digital paddle wheel from Dwyer Instruments handles tough applications requiring liquid flow measurement.

It’s powered by a user-friendly interface for easy manipulation of the programmable features, which include high/low flow and temperature alarms, totalizer and flow pulse outputs.

Rugged, chemical resistant lower block material ensures high reliability for use in harsh environments. It supports up to 29 engineering units, including those that are user defined.

Dwyer Instruments, based in Michigan City, Ind., manufactures control and instrumentation products. www.dwyer-inst.com www.plantmagazine.ca/rsc/ 15

No dc suPPLy Needed Here Aids process GMP validation.

Vaunix Technology Corp.’s LDA lab brick digital attenuators include 50 Ohm

mixers uLTrATAb boosTs mixiNG efficieNcy Chemineer inc.’s Kenics ultratab static mixers handle turbulent flow applications where a high degree of mixing in tight spaces is required.

An integral wall injector upstream of the mixing element forces flow stream additives through a high-energy dissipation region created by the mixing element, which boosts mixing efficiency. A low pressure drop enhances process energy efficiency.

Minimizes pipe lengths.

A compact design and short mixing length minimizes pipe lengths and optimizes the efficiency of the plant layout. the mixers come in sizes ranging from 2 to 60 in. with nPt or flanged injectors. they’re made from either carbon steel, stainless steel, coated carbon/316 stainless steel, FrP or high alloy metals. Housing options include flange tabs or spool piece designs.

Chemineer, based in dayton, ohio, manufactures fluid agitation equipment. www.chemineer.com www.plantmagazine.ca/rsc/ 17 www.plantmagazine.ca/rsc/ 116

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PLANT 25

13-07-26 11:28 AM

cien CouPlings & ConneCtors splitters are tough on caustic chemicals Pepperl+Fuchs’s g10 as-interface splitters, available with stainless steel coupling nuts and a one-piece housing rated to iP67, iP68 and iP69K, handle tough processing conditions. they mount quickly and easily in tight spaces and are immune to vibration. gold-plated and machined contacts extend product lifetime and operational reliability in food and beverage processes, and other applications where caustic chemicals are used and high-pressure washdowns are frequent. the company, a manufacturer of automation products based in twinsburgh, ohio, describes the as-interface as an open, multi-vendor technology meant to reduce the complexity and costs of connecting conventional inputs and outputs, analogue transducers and safety devices to PlCs. www.pepperl-fuchs.us www.plantmagazine.ca/rsc/ 19

Hose and tubing this hose lowers material costs

Reduces installation times.

Parker Hannifin Parflex HLB hose is lightweight and highly flexible, making it an easy to handle alternative to traditional industrial hose. The tubing bundles reduce installation times and material costs, eliminating gallons of unnecessary “in-line” grease.

The company, a manufacturer of motion and control technologies based in Fort Worth, Tex., says the HLB hose saves up to $20 per line in reduced components and installation labour costs. A unique GK Bulkhead hose fitting, with an integrated nipple, saves an additional $10 per zerk connection.

Automating the lubrication process is also relatively simple and inexpensive. A jacketed tube simplifies routings and reduces start time while metering the necessary amounts of grease to the system.

Parflex HLB hose handles temperatures from -40 to 105 degrees C and bundle tubing assemblies operate from -53 to 90 degrees C. Diameter sizes range from 1/8 in. to 1/2 in. www.parker.com www.plantmagazine.ca/rsc/ 20

Voltage and current combinations cover a range of applications between 60 V/20 A and 20 V/50 A, and there’s a linear output stage within the regulator for output noise of less than 3 mV rms. Transient recovery time is 10 times better than conventional switch mode units.

The system is digitally controlled using instrumentation-quality 16 bit DACs. Front-panel adjustment is by numeric keypad or spin wheel, and analogue, RS-232, USB and LAN (ethernet) remote control interfaces are standard.

The LAN interface conforms to the familiar LXI standard (LAN eXtensions for Instrumentation), with an optional GPIB interface.

Added flexibility in voltage and current options.

The QPX1200SP operates on 110 V to 240 VAC ±10%, 50/60 Hz input and is silent thanks to convection cooling. Weighing 20 lb., its 3U case is 13.8 x 5.1 x 16.3 in. and is equally suited to bench or rack-mount applications since output and sense terminals are provided on both the front and the rear panels. Up to 10 power set-ups can be saved and recalled via the keyboard or remote interfaces and a built-in power limiter includes over-voltage, over-current, and temperature trips.

A large dot-matrix backlit LCD provides a 5-digit voltage and a 4-digit current display, as well as indicating limit values, memory contents, and a range of alpha-numeric messages. Limits settings display simultaneously with measurements.

Aim-TTi, a European test equipment manufacturer, distributes the unit through Saelig Co. based in Fairport, NY. www.saelig.com www.plantmagazine.ca/rsc/ 22

converters power i/o in mobile manuFacturing

Exceeds burst strength of PEEK tubing.

Fittings rated to 5,000 psi.

VICI Valco’s Cheminert high pressure PEEK Fittings are rated at 5,000 psi with finger-tight nuts, beyond the burst strength of most PEEK tubing, with a taper angle and detail design that conforms to industry standards.

They connect directly to 360 micron OD fused silica, PEEK, stainless, or electroformed nickel tubing without troublesome liners thanks to a compact size, fine 2-56 threads, and a leak-free connection that seals at pressures of more than 20,000 psi.

The 360 µm fittings come with a PEEK nut and a glass-filled PEEK ferrule, or the stainless nut using a 316 SS ferrule. The ferrule snaps into the nut to make one-piece, but it’s free to rotate and does not twist the tube during tightening. A range of micron bore sizes are also available.

VICI Valco is a manufacturer of valves and fittings based in Houston. www.vici.com www.plantmagazine.ca/rsc/ 21

Power suPPly power up From your bench-top

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26 plant

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The QPX1200SP 1.2 kW DC bench-top power supply from Aim-TTi adds flexibility in voltage and current options with PowerFlex regulation.

WAGO Corp.’s High-Current 789 Series DC-DC converters power I/O within mobile manufacturing, remote energy production and material handling applications.

Three DC-DC converters run 24 VDC controls from Measuring just 17.5 mm.

12 VDC batteries or chargers. Wide input ranges (8−16 VDC or 19.2−28.8 VDC) support complete I/O nodes in automated guided vehicles, solar arrays, 5 V barcode scanners and emergency response vehicles.

Measuring just 17.5 mm wide, the converters save space and provide efficiency up to 90% (24 V DC in, full load) to minimize draw for mobile I/O applications.

Input polarity safeguards electronics. The devices suit widely varying remote I/O applications and operating range of -25 to 70 degrees C. They’re also vibration-resistant and maintenance-free thanks to CAGE CLAMP spring pressure terminations. Inverting input and +/ -15 V output capability provide additional flexibility.

They tune output range from 3.3 to 48 V to suit specific requests.

WAGO is a manufacturer of industrial connectors based in Germantown, Wisc. www.wago.us www.plantmagazine.ca/rsc/ 23

July/August 2013

13-07-25 11:39 AM

Products and Equipment << Technology CABLES

LogiMat® Vertical Lift Module

VISION LASER DETECTORS MEASURE POWER, POSITION

SRX assemblies are available in seven options.

CABLE ASSEMBLIES SERVE PIM-SENSITIVE ENVIRONMENTS Santron Inc. has enhanced its low-PIM cable assemblies to improve stability and repeatability.

The SRXTM cable assemblies serve PIM-sensitive environments through 6 GHz and military/avionics environments through 20 GHz, meeting requirements for robust survivability in high- frequency applications.

The cable assemblies combine the company’s low-distortion eSeries coaxial connectors with high-quality SRX coaxial cables to support systems integrators.

SRX cable assemblies are now available in seven options, depending on deployment scenario: in-cabinet, plenum-rated, short runs and jumper applications, longhaul cable runs, indoor use, outdoor use, and riser, with interconnect options for SMA, Type N, 7/16 and TNC mating.

For long-haul run deployments requiring robust, low-loss performance, Santron implemented similar techniques for the larger TCOM-400 series to achieve extremely low and stable PIM levels, while allowing for continuous bending and flex. These cable assemblies support power levels that range from 310 W at 2.5 GHz through 180 W at 6 GHz. Santron is a manufacturer of RF and microwave coaxial connectors and cable assemblies based in Ipswich, Ma. www.santron.com www.plantmagazine.ca/rsc/ 24

BeamTrack thermal detectors from Ophir Photonics combine multiple functions in one device, including laser power, energy, beam position and beam size. The sensors also provide information on beam centring and wander. The FL250A-BB-50-PP measures power, position and sizes up to 250 W. Aperture sizes cover 12 to 50 mm, and the broadband absorbers measure a spectral range from 150 nm to 20 µm.

Laser power is measured from 150 mW to 250 W, and energy from 80 mJ to 300 J. Beam position is accurate to 0.2 mm. A patented beam size detector embedded in the sensor is accurate to +/-5% for a Gaussian beam.

AUTOMATE & INCREASE YOUR STORAGE CAPACITY

BENEFITS UP TO 80% REDUCTION IN SPACE UTILIZATION 50% REDUCTION IN STORAGE & OPERATIONAL COSTS PROTECTION AGAINST LOSS, FULL TRACEABILITY RACK & PINION ELEVATOR, REDUCED MAINTENANCE ONLY TRULY ERGONOMIC STORAGE SOLUTION ON THE MARKET SOFTWARE OPTIONS INCLUDE WMS/ERP INTEGRATION SOF

Beam position accurate to 0.2 mm.

SEW-Plant-Half-island-0615.pdf 1 7/19/2013 4:25:05 PM

www.plantmagazine.ca/rsc/ 118

A “Smart Connector” interface operates with Ophir’s StarLite, Nova II, and Vega smart displays, and Juno PC interface. The display is automatically configured and calibrated when plugged into one of the company’s laser measurement heads.

Ophir Photonics is a producer of power and energy instrumentation based in North Logan, Utah. www.ophiropt.com www.plantmagazine.ca/rsc/ 25

C

WORKSTATIONS

M

SCISSOR LIFT MANOEUVRES EASILY

Y

CM

EnKon Systems’ “off-the-shelf” electric belt drive scissor lift table provides users enhances efficiencies in manufacturing and automation applications with its high duty cycle, static positioning and repeatability to.

The LSBD04, powered with a mechatronics drive system, requires little maintenance thanks to its a single belt, multi-pulley design. The 40- x 59-in. lift Static positioning, holds a static position to +/- .06 in. indefinitely, repeatability fulfills 120,000-plus duty cycles in a year and has a enhance efficiency. capacity of up to 2,000 lb.

It integrates well with conveyors and robotics within advance manufacturing systems, and is suitable for clean room applications since there is no need for hydraulic fluid.

EnKon Systems is a manufacturer of hydraulic and air powered scissor lift table systems based in Walled Lake, Mich. www.enkon.pro

MY

CY

CMY

K

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www.plant.ca

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PLANT 27

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13-07-26 11:32 AM

CIEN ADHESIVES

Seal pumps, filter systems and agitators.

tives and the waste associated with poorly fitting, or the improper aligning of die-cut gaskets.

It bonds with metals, glass and PC, and is typically used in sealing fuel cell plates and stacks, automotive door handles, appliance housings, and critical electronic assembly and device applications. It’s highly resistant to high-temperature and high-moisture environments while maintaining superior adhesion and flexibility.

It exhibits low shrinkage, resulting in reduced stress.

MAGNETIC COUPLINGS OPTIMIZE FLOW CONCENTRATION Ringfeder Power Transmission’s magnetic synchronous couplings reduce costs and cut installation space.

The permanent couplings are sealing elements for their pumps, filter systems and agitators, especially when critical media such as acids and alkaline solutions are involved.

Ringfeder Power Transmission GMBH is a connector manufacturer based in Krefeld, Germany. www.ringfeder.com

Cures on demand.

Dymax Corp. is a producer of adhesives and coatings based in Torrington, Conn. www.dymax.com www.plantmagazine.ca/rsc/ 28

Open construction eases inspection.

gussets and external crevices where product can become trapped but allowing external polishing.

An open construction scheme also allows for easier inspection and cleaning of the separator’s underside. Angled support springs minimize aggressive vibration that typically occurs during shutdown and conical construction instead of flat plates create a more rigid geometric structure.

SWECO is a manufacturer of separation and milling equipment based in Florence, Ky. www.sweco.com

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SAFETY

www.plantmagazine.ca/rsc/ 29

GASKET ELIMINATES ADHESION LOSS FAILURES

WEIGHT GUARDS PREVENT REACH-IN INJURIES

MONITOR PROTECTS AGAINST STATIC ELECTRICITY

Dymax’s Ultra Light-Weld GA-145 UV visible, light-curable form- and cure-inplace gasket for sealing applications is chemical and moisture resistant, and tack free, but soft and flexible with low outgassing after cure.

The material cures on demand, eliminating for racking long-curing alterna-

SWECO’s MX Vibro-Energy Round Separator is a completely enclosed weight guard that prevents reach-in injuries in material handling and equipment processes.

The open base construction allows for cleaning underneath the unit, preventing dirt and product build-up, but eliminates

A portable static monitoring system from Lind Equipment delivers a bright visible warning if operators are not properly draining static electricity while transferring flammables.

>> Robotics

Collaborative robots come to NA

They work safely with people, mostly with no shielding

U

niversal Robots is expanding its collaborative robotic arms across North America through 16 distributors, two of which will handle the Canadian market.

The Danish manufacturer’s lightweight, six-axis UR5 and UR10 (named after their payloads in kilos) work safely beside personnel, 80% of the time without shielding. If the arms come into contact with an employee, they stop operating automatically, but the force delivered in a collision won’t cause injury.

With a reach of up to 51 in. (129.5 cm), speed of 39 in./s (99 cm/s) and repeatability of +/- .004 in. (+/- 0.010 cm), the robots will handle chores ranging from small CNC lathe production to large automobile assembly lines.

They’re easily moved around the production area and a tablet interface makes them easy to operate, even for those with no programming experience.

Average ROI is six to eight months.

Advanced Motion & Controls Ltd., a distributor of factory automation products based in Barrie, Ont., will cover most of Canada. Olympus Controls, an automation specialist based in Beaverton, Ore., will take care of the lower half of BC through its Vancouver office. www.advancedmotion.com www.olympus-controls.com Easily moved, easily operated.

28 PLANT

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Use is when draining static electricity.

StaticSure uses an intrinsically safe set of electronics to monitor the entire connection from clamp to ground point, and will provide warning if for any reason the connection is not good enough to drain static electricity. It flashes a very bright red LED light and keeps flashing until the problem is resolved.

The system is cULus approved for Class I, Division 1, Groups ABCD and Class II, Division 1, Groups FG hazardous locations. The small form factor, modular unit is portable or mounted to a wall or vehicle. It uses standard industrial static grounding clamps that are quickly disconnected and reconnected.

Lind Equipment is a Markham, Ont.based manufacturer of hazardous location, industrial work lighting and portable power products. www.staticsure.com

The ratio reducers are available with projecting, quill or coupling input options, and hollow and solid (projecting) output options. The internal worm is specially ground for enhanced efficiency and lower heat generation to prolong product life.

700 Series reducers are contained in rugged cast iron or stainless steel housings with high-strength bronze worm gears mounted between heavy duty tapered roller bearings to enhance strength and durability. Large oil reservoirs also provide efficient heat dissipation and lubrication for longer operating life.

Lower heat generation.

Boston Gear is a manufacturer of power transmission products based in Minneapolis. www.bostongear.com www.plantmagazine.ca/rsc/ 31

BEARINGS BEARINGS HANDLE HIGH LOADS EDT Corp.’s Type E bearing are made for locations where the environment compromises the grease of standard roller bearings or more corrosion resistance is needed.

The greaseless bearings have high load capacity and the same dimensional footprint of industry-standard Type E tapered roller bearings, but are noncorrosive.

They’re made with a 304 stainless housing, a Poly-Sphere plane bearing that’s made from a high performance polymer, plus a 316 stainless locking sleeve.

Plane bearings work without rolling elements, so grease is unnecessary and seals are eliminated. The design also makes it possible to split inserts in addition to housings.

www.plantmagazine.ca/rsc/ 30

Non-corrosive and greaseless.

GEARS

Bearings are available in one-piece or split styles of pillow blocks, four bolts and piloted housings for shaft sizes from 1-3/16 in. to 5 in. Split units are drop-in replacements for popular RPB, RFB and RFP spherical roller bearings with added options of split bearings and split sleeves.

EDT Corp. is a bearing manufacturer based in Vancouver, Wash. www.edtcorp.com

SPEED REDUCERS FOR LOW-TORQUE APPLICATIONS Boston Gear is now offering its 700 series worm gear speed reducers in 80:1 and 100:1 ratios that are backwards compatible with all 700 series industry standard mounting dimensions and designed for low-torque, light-duty material handling food processing and packaging applications.

www.plantmagazine.ca/rsc/ 32

July/August 2013

13-07-25 2:40 PM

Industrial Literature Reviews CIEN

>> Plantware ImProvE mAChINE rELIAbILITy SKF’s Multilog IMx on-line monitoring systems provide 24/7 simultaneous measurements of various operating parameters.

The systems detect faults early, integrate automatic recognition Detects faults early. to correct existing or impending conditions and ultimately contribute to condition-based maintenance program objectives. Users can also convert and upgrade outdated systems and interface with compatible SKF @ptitude Analyst and Observer software for higher-level condition monitoring.

There are units for extremely tough industrial environments and models designed specifically for turbo machinery, wind turbine, vehicle, or railway applications, as well as portable versions for temporary installations and troubleshooting.

The various models incorporate 16, 32, or 64 analogue signal inputs configurable for a variety of sensors to determine parameters such as acceleration, velocity and displacement.

Individual warning and alarm levels controlled by machine speed or load are set for each measurement point and built-in auto-diagnosis checks all sensors, cabling and electronics for any faults, signal interruption, shorts, or power failures and then automatically alerts when problems are found.

IMx systems will run on an existing LAN or WAN, and network with computers, printers and servers, or over the internet.

SKF is a global supplier of bearings, seals, mechatronics, lubrication systems and services. SKF Canada Ltd. is based in Toronto. www.skf.com/ca www.plantmagazine.ca/rsc/ 33

SofTwArE ENSurES rELIAbLE TooL dATA TDM Systems software eliminates issues arising from missing or unreliable data in the management of tools, tool assemblies, fixtures and set-up equipment.

As a single source for all tool-related information, the software slashes tool selection and location times while reducing presetting and set-up times.

Because the software interfaces with all major CAD/ CAM programs, accurate tool data, 2D graphics and 3D models are quickly available for Comprehensive data management. realistic simulations, without lengthy and error-prone data entry. Acquiring all of the needed tool-related data with just a few clicks of the mouse also reduces programming time.

Tool data is housed in a transparent, unified format so users can standardize inventory and lower costs. Tool procurement and logistics are streamlined and simplified as well. Production planning is enhanced through an interface with ERP systems.

The software integrates with an array of other IT solutions within manufacturing, and has numerous standard interfaces for most common upstream and downstream systems. It’s easily scalable and available in a variety of configurations.

TDM Systems, its US operation based in Schaumburg, Ill., develops software for the management of tool data and plant resources. www.tdmsystems.com www.plantmagazine.ca/rsc/ 34

www.plant.ca

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AIR OPERATED CONVEYORS

COmPlETE hOSE REEl CATAlOguE

Line Vac™ air operated conveyors transport complex shapes, bulk solids and waste with no moving parts or electricity. Units eject a small amount of compressed air to produce a vacuum on one end and high output flows on the other.

Construction is aluminum, Type 303 or Type 316 stainless steel.

New wear resistant models with high conveying rates are also available. www.exair.com/18/164.htm EXAIR Corporation www.plantmagazine.ca/rsc/ 120

Hannay Reels provides thousands of standard hose reel models, custom design and manufacturing for virtually limitless applications, including: air hoses for pneumatic tools and machinery; water hoses for washdown, power washing, potable water, or in-plant fire protection; dual hoses for oxygen/acetylene welding; and hydraulic hoses for powering tools and machinery. www.hannay.com Hannay Reels www.plantmagazine.ca/rsc/ 123

OVERhEAD lIfTINg EVAluATOR

INDuSTRIAl VACuum ClEANINg SYSTEmS fROm VAC-u-mAX

G-Force Intelligent Lifting Devices provide the responsiveness and flexibility of a human operator with the power of a machine. Capable of lifting up to 1,320 lb., Gorbel’s ILDs increase productivity, reduce product damage and create a safer workplace. Find what lifting system is ideal for your company with Gorbel’s FREE Overhead Lifting Evaluator. www.gorbel.com/precision Gorbel www.plantmagazine.ca/rsc/ 121

VAC-U-MAX is a premier manufacturer of industrial vacuum cleaning systems for production lines and other dust-intensive areas. With a VAC-U-MAX heavy-duty industrial vacuum cleaning system on site, both your capital equipment and your employees will be safer and cleaner. www.vac-u-max.com VAC-U-MAX www.plantmagazine.ca/rsc/ 124

AffORDAblE ThERmAl ImAgINg

mOST POPulAR VACuum CuPE

The FLIR i-Series Pointand-Shoot Thermal Imaging Cameras brochure introduces the newly redesigned i3, i5, and i7. The brochure covers affordable entry-level infrared cameras ideal for equipping front-line plant technicians. www.flir.ca Flir www.plantmagazine.ca/rsc/ 122

Vi-Cas Manufacturing’s new 16-page, full colour brochure details the company’s most popular vacuum cups.

In addition to dimensional information (including lip diameter, height and mounting holes), the new literature shows photos of each cup to guarantee accuracy. Vacuum cups and accessories are used extensively in all types of packaging and labeling operations. www.vi-cas.com Vi-Cas Manufacturing www.plantmagazine.ca/rsc/ 125

Index of Advertisers RS#

Advertiser

Page #

126 ........................................................... AME ..............................................................................................30 128 ........................................................... Automation Direct ........................................................................ OBC 107,112 ................................................... Carr Lane ..................................................................................13,23 111 ........................................................... CoxReels ........................................................................................23 116 ........................................................... DV Systems ....................................................................................25 115 ........................................................... Ellsworth ........................................................................................24 104 ........................................................... Exair ............................................................................................... 7 101 ........................................................... Flir ............................................................................................... IFC 114 ........................................................... Gordon R Williams...........................................................................24 109 ........................................................... Motion Industries ............................................................................18 127 ........................................................... Petro Canada ................................................................................IBC 108 ........................................................... Rittal ........................................................................................16,17 106 ........................................................... Rosta .............................................................................................. 9 113 ........................................................... Sealeze ..........................................................................................23 103 ........................................................... Spraying Systems ............................................................................ 6 102,119 .................................................... SEW Eurodrive .............................................................................5,27 105 ........................................................... SME - CMTS Show ........................................................................... 8 118 ........................................................... SST Scheafer .................................................................................27 117 ........................................................... UE Systems ....................................................................................26 110 ........................................................... Vi-Cas ...........................................................................................23

PLANT 29

13-07-26 10:42 AM

Departments

>> Postscript

Taxing the rich more doesn’t work

BY BRIAN LEE CROWLEY

W

ametoronto.org

hen asked why he robbed banks, notorious gangster Willie Sutton is alleged to have replied, “Because that’s where the money is.”

Some of the debaters at the recent Munk Debate sponsored by Canadian businessman and philanthropist Peter Munk made me feel like they were channelling Willie.

Nobel Laureate Paul Krugman, former Greek Prime Minister George Papandreou, former Speaker of the US House of Representatives Newt Gingrich and famed

issue: “How do we get the best value for society “outTheof central our scarce resources? ” economist Arthur Laffer debated the motion, “we should tax the rich more.”

Surprisingly, given the ideological gulf between the debaters and their impressive intellectual firepower, the debate failed to tackle the central issue: “How do we get the best value for society out of our scarce resources?”

It’s not as if the rich had no plans for the money. They were going to use it to buy goods and services or to save and

invest. All of those things are good for everyone, creating growth and jobs. But if you take their money through taxation, society does not get that benefit.

Instead it gets the very different benefit of increased public spending.

Which of these is more valuable? Any benefit from public spending is a gain for society. But if private spending also creates public benefits such as growth and jobs, we must subtract the lost benefits

Unleash private investment

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LET’S GET REAL...

I mean that’s what the Gemba is all about, right? Getting real. And that’s exactly what

Dan Jim Womack Jones

John Shook

of the private spending from the benefits of the new public spending. The decision is not whether the dollar is to be spent, but by whom and on what.

For a lot of reasons, including that we spend our own money more carefully than we spend other people’s money, a dollar raised in taxes costs more than a dollar in lost economic activity. A very conservative estimate of this so-called deadweight loss is about 20%. In other words, a dollar taken out of private hands and spent by government doesn’t just mean a dollar less in private activity, but $1.20 less.

That would be fine if we got $1.20 in value from a dollar spent in the public sector but governments are notoriously wasteful and inefficient. Decisions are slow, cumbersome and often taken for reasons of political expediency rather than economic impact, so a dollar in public spending produces less than a dollar in actual economic benefit. The net public benefit of shifting that dollar by taxation is starting to look pretty skimpy.

Mike Rother

5

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That brings us to the other great undefended assumption of the debate, namely that larger government is the best friend of the most vulnerable. If you accept that premise, then resisting higher taxes for the rich sounds like mean-spirited denial of benefits to the needy.

Put aside the fact that government does many things that leave the most vulnerable worse off, such as agricultural supply management that makes their food more expensive, and that much public spending goes to comfortable civil servants, not the poor. Is more public spending what the poorest need?

Not if Canada’s experience of the 1990s is any guide. In the decade that followed the Chrétien government’s great fiscal reforms reduced the size of government from 53% of GDP to 39%.

We balanced the books and cut taxes to boot, as the number of people living in poverty fell dramatically.

Why? Because we unleashed a torrent of private investment and economic growth that pulled previously unemployed people into work and the very best escape route from poverty is more family members able to work more hours. We made government smaller while generating a tide of growth that lifted all boats.

In Willie Sutton’s terms, the rich may be where the money is, but that doesn’t mean substituting government’s decisions for theirs about how to spend it produces the best outcomes, even for the poorest among us.

Brian Lee Crowley is the managing director of the Macdonald-Laurier Institute, an independent, non-partisan public policy think tank in Ottawa E-mail www.macdonaldlaurier.ca.

Distributed by Troy Media.

Comments? E-mail jterrett@plant.ca.

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30 PLANT

July/August 2013

13-07-26 9:46 AM

Advanced Science.

Advanced Grease Lubrication.

At Petro-Canada we designed our line of PRECISION Greases to deliver 3-in-1 TM

Protection. With Precision Greases you get longer life, less water wash-out and better surface protection. Petro-Canada grease crafters combine our ultra pure base oils together with other selected oils and specific performance additives. Then we process them using the advanced science of our distinctive two stage manufacturing process. The results speak for themselves: less wear on equipment and improved productivity for your operation.

Put the Advanced Science of PRECISION to work in your plant.

Contact 1-866-335-3369 or lubricants.petro-canada.ca

Petro-Canada is a Suncor Energy business

Trademark of Suncor Energy Inc. Used under licence.

TM

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2/15/1210:42 4:55AM PM 13-07-26

GET YOUR MESSAGE ACROSS with Viewmarq® industrial displays

Built-in Ethernet {all models}

Industrial LED message displays keep your plant personnel in the know The new ViewMarq LED message boards can display preformatted and real-time factory floor data messages sent by a PLC, PC, or other master device.

The text message displays can be controlled by:

®

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• ASCII strings through the RS232 or RS485 port • Modbus RTU messsages through the RS232 or RS485 port • Modbus TCP messages through the Ethernet port

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One-, two-, and four-line displays Viewing distances up to 400 feet and 140 degree viewing angle (1) RS232, (1) RS485 and (1) Ethernet port standard on all models Scrolling, blinking capability NEMA 4 / NEMA 12 extruded aluminumhousings suitable for harsh environments

$759 $1,099 $1,900

Use the FREE Viewmarq configuration software (online download) to configure the display; create, preview and send messages from a PC; or create ASCII strings that can be transferred to PLC instructions to control the Viewmarq.

Research, price, buy at: www.automationdirect.com/viewmarq Our shipping policies make it easier than ever to order direct from the U.S.!

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