Plant

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Volume 71, No. 05 July/August 2012

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AUTOMATION MISSION

Plugging into improved productivity ProVantage focuses on expanding advanced manufacturing

PM 40069240

NEW TECHNOLOGY SECTION

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HIGHLIGHTS Auto parts makers urged to “go global” Samco Machinery’s new ERP drives growth How to cope with labour pains Ignore the sluggish economy: spend!

Take a waste walk for low-cost improvements Monitoring and security technology heats up 12-08-13 7:03 AM

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Editorial

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Dividing the nation’s energy pie

COVER PHOTO: STEPHEN UHRANEY

Features

>> OPERATIONS

13 THINK LEAN Take a waste walk through your plant to identify low-cost improvements.

S

ince Alison Redford plucked the petals off the Wild Rose party in Alberta’s recent election, she has focused on the need for a national energy strategy. Canada contains a wealth of energy resources that are integral to the economy and central to environmental and quality of life issues, so a national strategy makes sense. But if the hubbub that broke out over the Northern Gateway project is an indication, discussions are off to a rough start.

Redford’s national view is more Alberta-bound. She would like to see provincial support for the province’s oil sands production, with pipelines carrying black gold to the east and west coasts where it will be sent off to markets other than the US. BC premier Christy Clark has announced five conditions that must be met for the Northern Gateway project before it gets approval to pass through the province, and one of those is a bigger piece of the royalty pie from Alberta. She points out BC is subject to all the environmental risk, but it’s coming up short on the benefits.

Naturally Redford has nixed that notion, correctly pointing out that Clark’s bid to share royalty revenues would change the nature of Confederation. She and other experts contend that if BC wants more than the $6.7 billion tax revenue that will come its way, the correct place to look is at the folks who own the stuff in the pipelines.

Warren Mabee, policy director at the Institute for Energy and Environmental Policy at Queens University suggests, for example, an export or port tax paid by the oil company, say a per-barrel fee for oil moved through the terminal in Kitimat, BC. But it appears Clark is not interested in exercising tax options and indicated during the Premiers’ conference in Halifax that she intended to pursue the royalty bounty, even calling for involvement from the federal government. Redford has a job ahead of her seeing the Northern Gateway through to completion, and it won’t be made easier if BC switches to an NDP government. Leader Adrian Dix is dead against the project. And imagine the fun if all the provinces east of Alberta and the various Aboriginal groups decide to demand a cut of the royalty pie from future projects.

A national energy strategy should encompass more than Alberta’s desire to break out of the North American energy market. Environmental considerations – not the Harper government’s strong suit – must also be a cornerstone.

Canada’s Senators have released a three-year study of the issue and have some recommendations of their own that cover many key points. Their report calls for 13 priority items, including improved environmental performance of non-renewable resources, support for the nuclear industry, nation building through energy infrastructure, more natural gas and hydro development, expansion of renewable fuel development, the promotion of energy efficiency and conservation, an employment strategy, more innovation, regulatory reform to streamline environmental reviews while ensuring rigorous oversight, guiding responsible Northern and Arctic energy exploration and development and the federal government communicating Canada’s energy story to the world.

There’s another key point. Collaborative energy leadership. The Senators make the obvious suggestion that all levels of government, Aboriginal leaders and other stakeholders need to chart the course together.

If the Clark-Redford skirmishes at the Premiers’ conference are an indication, getting consensus on a national strategy will make Meech Lake look like a church picnic.

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. 71, No. 05, July/August, 2012 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

OEE Eliminate waste with an asset optimization strategy.

14 PRODUCTIVITY ProVantage is helping companies automate to improve productivity and competitiveness.

>> TRENDS

16 CAPITAL INVESTMENT Don’t let the gloomy economic news stop you from spending until you can’t sleep.

17 COSTS How to cope with high labour costs and develop a competitive advantage.

18 AUTOMOTIVE The message at this year’s APMA conference for auto parts makers is “go global.”

>> INNOVATION

21 R&D GM is investing $850 million in Oshawa to boost R&D, but the investment won’t do much in the short term for new jobs.

CONNECTEDNESS Auto 21 and its partners are making the connection between applied and pure research.

>> MANAGEMENT

19 TAX CREDITS A streamlined SR&ED program supports business-driven applied research.

LEADERSHIP Why your employees aren’t engaged and what to do about it.

20 EXPORTING The outlook in Brazil is positive but there are some challenges for exporters.

GREEN MANUFACTURING How to embed sustainability gains.

>> TECHNOLOGY

23 INDUSTRIAL IT Samco Machinery upgrades its ERP technology to diversify sales.

24 PRODUCT FOCUS Energy management.

25 PRODUCTS AND EQUIPMENT What’s new in industrial products, machinery and equipment.

30 INFRARED TECHNOLOGY FLIR’s A310pt and A310f combine infrared technology and security.

32 PLANTWARE Hardware and software for managing plant operations.

Departments

4 Industry View 10 Labour Relations 12 PLANT Pulse

33 Events 34 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© 2012 BIG Magazines LP, may not be reprinted without permission.

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PLANT 3

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Departments

>> Industry View

>> Bulletins MacDonald, Dettwiler and Associates Ltd. (MDA) will be supplying satellite communications technology to Israel Aerospace Industries Ltd. for its AMOS-6 satellite. The advanced data processing provider based in Richmond, BC said the contract is worth $90-million.

Rockwell Automation will be working with Terepac Corp., a Waterloo, Ont. advanced manufacturer of tiny digital electronics, to produce large volumes of microcircuits for the “Internet of Things.” Terepac miniaturizes electronics that print onto flexible substrates to create entire devices with microprocessors, memory and sensors, all of it measuring less than a millimetre square.

Beta Pharma Canada Inc. will manufacture an initial batch of the Adva-27a cancer drug compound for Sunshine Biopharma Inc., a Montreal-based pharmaceutical firm. Beta Pharma, also in Montreal, is to provide “synthesis parameters” for future scale-up and large scale manufacturing of the drug.

Canadian Solar Inc. in Guelph, Ont. is delivering one megawatt of high efficiency ELPS solar modules for use in a research and testing plant in Germany.

The installation by Nordwest Solar in the Emsland region will test different characteristics of the modules in various zones throughout the three-hectare park located in Werlte. The photovoltaic plant is one of the first projects in Germany where Canadian Solar’s ELPS technology will be installed.

Steelcraft is discontinuing production and sale of singlewall utility tanks sold under its Clemmer Division brand. The Waterloo, Ont. manufacturer of custom-engineered steel products, components, tanks and systems, said a double-wall version will continue to be manufactured and sold under the Steelcraft Clemmer Division name.

Hydro-Québec and France’s CNRS have signed a licensing agreement with Bathium Canada in Montreal (a subsidiary of the Bolloré industrial group in France), for the use of patents related to their lithium-metalpolymer (LMP) solid-electrolyte batteries. The batteries power the Bluecar electric vehicle used by Autolib, the world’s first electric car-sharing service.

4 PLANT

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Toyota expands Lexus production in Cambridge Capacity in Canada to reach 500,000 units, 400 new jobs

CAMBRIDGE, Ont.: Toyota Motor Manufacturing Canada Inc. is investing more than $100 million to increase Lexus RX production at its plant in Cambridge, Ont. The expansion will add about 400 jobs and increase capacity by 30,000 vehicles to 104,000 units, including 15,000 RX450h vehicles, the hybrid electric version of the popular Lexus, raising Toyota’s annual production capacity in Canada to 500,000 units.

In March, Toyota announced an $80 million investment in its Woodstock, Ont. plant, also addToyota’s hybrid RX 450h.

PHOTO: TOYOTA ing 400 jobs for a total of 7,300. said Toyota president Brian Krinock. “Our team For almost nine years, Canada has been the only members have demonstrated time and time again country aside from Japan to make the Lexus. that they thrive on these kinds of challenges.”

“This is a big and ambitious project with new techToyota is targeting the expansion for early 2014. nology, exacting standards and tight timelines,”

D-Box sending movie-motion tech to Russia LONGUEUIL, Que.: D-BoxTechnologies Inc. has its first agreement with Luxor Cinema Chain, the fourth largest theatre circuit in Russia, to install its seat-motion systems in six theatres.

The Longueuil, Que.-based entertainment-tech manufacturer will put in 141 of its D-Box MFX Systems by October.

This is the company’s first sale for commercial theatre use in Russia and will generate licensing fees based on the use of the system.

No financial information was released.

The patented D-Box Motion Code technology uses motion specifically programmed for each film, TV series or video game. The effects are sent to a motion generating system integrated within a platform or seat and are synchronized with all onscreen action.

CAE sells three simulators: $50M MONTREAL: CAE Inc. sold three full-flight simulators in deals worth more than $50 million to Air Canada, Aeroflot and Kunming Aviation Safety Training Centre in China.

Air Canada will get a Boeing 787 FFS Airbus, Aeroflot a A330 FFS, and the Kunming Aviation Safety Training Centre a Boeing 737NG FFS. The Montreal aerospace company also sold two integrated procedures trainers and two virtual maintenance trainers to Air Canada.

Deliveries are set for 2013.

CCL acquires Aussie label business TORONTO: CCL Industries Inc. has acquired the pharmaceutical division assets of Graphitype Printing Services, a privately owned printing company based near Sydney, Australia, for $7.3 million.

CCL Industries, a Torontobased specialty packaging manufacturer, said the business, which will operate under CCL Label, produces labels and patient instructional leaflets for pharmaceutical customers in Australia and will complement the existing CCL Label Health-

care operation in Melbourne.

Graphitype’s pharmaceutical division sales were $7.6 million for the 12-months ending on June 30.

Geoffrey Martin, president and CEO of CCL Industries, said the acquisition strengthens the company’s position in Australia “with sites now located in both of the key pharmaceutical manufacturing centres in the country.”

CCL Industries employs 6,400 people and operates 72 production facilities globally.

New Flyer’s XD40 Xcelsior diesel-electric hybrid.

PHOTO: NEW FLYER

New Flyer wins $28M bus deal

Order for Xcelsior diesel-electrics could grow WINNIPEG: New Flyer Industries Inc. has won an order worth $28 million for 42 Xcelsior diesel-electric hybrid buses from Vancouver’s TransLink to support growing ridership.

The Winnipeg bus manufacturer said the initial order for 25 XDE60 articulated buses for West Vancouver and 17 XD 40 buses for Richmond could grow to 87 units.

The 60-foot XDEs will be delivered in the fourth quarter while the 40-foot XDs are to be delivered in the first quarter of 2013.

“This is our first order from Vancouver since 2008, and we are extremely proud to once again be selected to support TransLink,” said Paul Soubry, New Flyer’s president and CEO. New Flyer, with plants in Winnipeg, St. Cloud, Minn. and Crookston, Minn., employs 2,200 people.

CVTech to build power lines DRUMMONDVILLE, Que.: CVTech Group Inc.’s Thirau ltée subsidiary has been awarded two new contracts for the construction of electricity transmission and distribution lines by HydroQuébec valued at $14.1 million.

The $6.3 million contract is part of the Romaine hydroelectric complex on Quebec’s North Shore. Thirau will build a 34.5-kV, 33-kilometre overhead distribution network to supply electricity to the Romaine III camp.

Work should extend until the end of October.

The $7.8 million contract will involve the construction of a 230kV, double-circuit steel line for the addition of a second power supply to the Francheville substation and the dismantling of two circuits.

Thirau ltée and its subsidiaries Riggs Distler Inc. and Thirau LLC, provide services to the electric power industry for the maintenance of transmission and distribution lines, primarily in Quebec, Ontario and the eastern US. The J.J.L. Déboisement inc. subsidiary controls vegetation surrounding power lines and clears rights of way.

Cytec invests $100M in Niagara expansion NIAGARA FALLS, Ont.: Cytec Canada Inc. is investing $100 million to expand its Niagara Falls, Ont. operation where it produces phosphine and phosphine derivatives.

The chemical producer, a subsidiary of Cytec Industries Inc. in West Paterson, NJ, will build a new plant beside its existing facility in Niagara Falls.

It’s the only facility in North America and the largest of only three in the world producing phosphine (PH3) and phosphine derivatives used in a range of materials, such as electronics for LEDs, mineral processing, solvent extraction and fumigation, durable textile flame retardants and intermediates for catalysts, phosphonium salts and UV photo initiators.

The project is getting a $10 million repayable contribution from the Government of Canada’s FedDev Ontario program.

The company says it will create 30 new jobs and help maintain 105 existing positions.

Research staff at the Niagara facility will also develops new products.

Construction is underway and is to be completed by March 31, 2014.

July/August 2012

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Departments

>> Industry View

Years of lean honoured by the Queen Dave Hogg is awarded a Diamond Jubilee Medal

W

to accelerate the knowledge hen Dave Hogg atthey would need to become tended the 2012 CME more competitive. It was Lean Manufacturing during that time the consorConference in June, he wasn’t tia idea began to germinate, expecting to become the centre where companies would form of attention at the Winnipeg groups to share experience, event. But before the confertechniques and knowledge. ence’s opening address got unThe High Performance derway, Canadian ManufacturManufacturing (or HPM) ers & Exporters president and Consortium of companies he CEO Jayson Myers called him founded evolved from what up to accept a Queen Elizabeth was the Allan Bradley SuppliII Diamond Jubilee Medal for er Network in the Kitchener, his efforts to make lean part of Ont. area, followed by similar the DNA of manufacturing. consortia in BC and Manitoba.

He was recognized, in parThe operational model has ticular, for his work in devel- Dave Hogg with his Diamond Jubilee Medal. oping a popular operational PHOTO: NOELLE STAPINSKY since spread across North America and Australia. model for lean consortia.

In 2000, Hogg and business partner Bob Kerr “I am delighted to reward David’s lifelong founded High Performance Solutions, a consultdedication to the manufacturing community in ing practice established to set up lean consortia Canada,” said Myers. “His commitment to conthroughout North America. He retired in 2008. tinuous improvement has transcended the shop Hogg was honoured by the recognition in Winnifloor, and has truly made a difference for both orpeg and admits to being somewhat overwhelmed ganizations and the people working within those by the number of people who came up to congratorganizations across the country.” ulate him. He was approached by a UK delegate “I didn’t have any idea it was coming,” said the who remarked, “Dave, my Queen does not award 71-year-old Hogg, who has been helping to lead medals unless they are well-deserved. Is there Canadian manufacturers on the lean journey for anything I can do for you?” more than 30 years.

“I told him I was going to Scotland and he said, ‘I The medal commemorates the 60th anniversary can get you the keys to any castle,’” laughed Hogg.

Queen Elizabeth II’s accession to the Throne and In 1998, the movement he helped launch was honours significant contributions and achievedescribed by the Sloan Management Review as a ments by a select group of Canadians. “leveraged learning network.”

Prior to establishing his first company in 1987, “In all my years doing this, I’ve never been able Hogg held engineering, educational and manato get a manufacturer to say, ‘leveraged learning gerial positions in the public and private secnetwork,’” says Hogg, who describes the chartors where he acquired expertise in continuous acteristics of a consortium as being open with a improvement. After the recession in 1981-82, he trust base and a lot of exchange. served as the manager of educational programs That attracts companies that tend to be successand services for the Ontario CAD/CAM Centre ful, he noted. And they prefer to call it a “consorunder the Ontario Centre for Advanced Manutium.” facturing, where he brought companies together

>> Careers

Can-Eng Furnaces International Ltd., a manufacturer of industrial heat treating equipment in Niagara Falls, Ont., has made some organizational changes. Alan Van Geyn has been promoted from president to vicechairman; Michael Klauck, previously vice-president, is now president; and Gregory Stanley is now sales manager for North America, steel products.

Bert Clark has been appointed president and CEO of Infrastructure Ontario, a Crown corporation that delivers the province’s larger, more complex infrastructure renewal projects. For the past four years, Clarke was managing director of Scotia Capital’s Global Infrastructure Finance Group.

Fred Stipkovits has joined Titan Logix Corp., an Edmonton-based fluid management manufacturer, as sales manager. He was previously employed in sales at a large aircraft refuelling manufacturer. He will be based out of Titan’s Kansas City, Mo. office.

ZCL Composites Inc., a supplier of environmentally friendly liquid storage, fluid handling and corrosion resistant industrial products based in Edmonton, has appointed Kapul Gill to the position of COO. Kapul was previously group vice-president of operations for a large Southern Ontario company.

Pacific Safety Products Inc. has appointed Fraser Campbell the interim chairman of the Arnprior, Ont. body armour manufacturer following the resignation of Douglas Lucky. Brad Field, who founded the company in 1984, has been appointed to the board. Field will likely be appointed CEO as well.

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Ontario tops for foreign investment TORONTO: Ontario has landed the most renewable energy projects in Canada’s provinces or the US states, according to a recent report by fDi Intelligence.

The report by the foreign direct investment intelligence division of the London, UK-based publisher of the Financial Times notes Ontario landed 11 contracts in the sector.

Energy was a major area of capital investment in North America, with renewable energy, coal, oil and natural gas accounting for 34% of FDI dollars in 2011, with renewable energy attracting US$12 billion.

Ontario, California, New York and Texas attracted 33% of FDI projects that came to North America in 2011. California captured 229 projects followed by New York with 150.

The US was the largest source of FDI projects in Ontario, providing 52% of them. Germany, China, France, the UK and Japan accounted for 25%.

Ontario attracted more foreign capital investment last year than any North American state or province except Alberta, according to the report.

Windsor shifts out of reverse: BMO WINDSOR, Ont.: A decline in the fortunes of North America’s automotive industry hit Canada’s motor city pretty hard, but Windsor, Ont.’s economy is shifting out of reverse, according to a report by BMO Capital Markets Economics.

It forecasts 2,000 new jobs over the next four years and a decline in the unemployment rate of just over 8%, about 2% points above the Ontario average and near prerecession levels.

An obvious bright spot is the automotive industry with production up 12% year-over-year in the first four months, which brings it back to pre-recession levels. Indeed, BMO notes Ford recently announced it will

undergo a shorter-than-normal summer shutdown at a number of its plants to meet improved demand.

Non-residential construction is another bright spot with construction beginning on the $1.4 billion Windsor-Essex Parkway. It’s to be open to traffic in late-2014. This will improve truck traffic through the major Canada-US border crossing.

Go-ahead is pending on construction of a $1 billion international bridge between Windsor and Detroit and existing home sales are running at long-run norms. Average prices in April were up 10% year-over-year.

BMO said Windsor’s demographics remain a challenge, with recent population declines, but there have been gains in March and April for the first time since 2006, “a trend worth watching in the year ahead.”

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Héroux-Devtek sells two product lines for $300M Aerospace supplier will focus on landing gear operations

LONGUEUIL Que.: HérouxDevtek Inc. is selling its aerostructure and industrial products operations to Precision Castparts Corp. for $300 million in cash.

The Longueuil Que. aerospace manufacturer expects the sale to net approximately $230 million after taxes and expenses.

The company said it will focus on the growth of its core landing gear operations.

Precision Castparts, a diversified global manufacturer of complex metal components and products Aersostructure and industrial products operations are sold.

PHOTO: HEROUX-DEVTEK based in Portland, Ore., will for the proceeds, including “a significant distribuacquire in the transaction Héroux-Devtek’s Dorval, tion to shareholders” and debt repayment.

Que., Querétaro, Mexico and Arlington, Tex. aeroIt has also renewed a contract with the US Air structure manufacturing sites, plus the Cincinnati Force to provide landing gear repair and overhaul industrial products manufacturing sites. services for C-130, E-3 and KC-135R aircraft, plus Héroux-Devtek said these assets generated aftermarket components in a four-year deal worth sales of approximately $130 million for the fiscal $90 million. year that ended March 31.

Héroux-Devtek, with revenues of about $250 The company, which will retain all of its landing million, employs more than 1,000 people in gear design engineering and manufacturing capaCanada and the US. bilities, said it’s evaluating “various alternatives”

July/August 2012

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If y an Ap

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 $$$$$$ $$$$$ $$$$ $$$ $$ $ ¢

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

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

• 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

• Vibration from machinery causes refrigerant leaks and component failures • Compressor life expectancy is typically 2.5 years of continuous operation • It requires a floor drain for the condensation

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 effective heat exchange.

• They fail when dust and dirt clogs the filter • The cooling capacity is limited due to ambient conditions

• Average cost to replace a bad compressor is $750

Reliable and mainten

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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 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 runs far longer than necessary before shutting off • Increased cycle time wastes compressed air

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fax: (513) 671-3363 • E-mail: techelp@exair.com • www.exair.com www.plantmagazine.ca/rsc/ 103

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Departments

>> Industry View

Climate

CHANGE

COMING SOONER THAN YOU THINK

A University of Waterloo report says Canada will warm up to 2˚C by 2020, 4˚C by 2050.

C

anada can expect the temperature to increase by 2 degrees C by 2020 and 4 degrees C by 2050 as a result of climate change, according to a roadmap from the University of Waterloo and experts from across Canada.

The research project, funded by Intact Financial Corp., a Toronto-based insurance company, was conducted by the Waterloo, Ont. university and more than 80 Canadian experts.

Called the Climate Change Adaptation Project, it predicts rising temperatures across the country and substantial fluctuations in precipitation levels, leaving cities and rural regions in Canada vulnerable.

The report says warming will have the most significant impact on the Arctic, where temperatures will rise up to 4 degrees C by 2020 and 8 degrees C by 2050, with precipitation increasing up to 20% by 2020 and 40% by 2050.

The impact across Canada will vary, according to the report: less summer precipitation for Vancouver, more

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Expect rising temperatures across Canada.

PHOTO: THINKSTOCK/ STOCKBYTE

snow for Winnipeg and milder winters for Toronto and Montreal.

The report targets city infrastructure, biodiversity, freshwater resources, Aboriginal communities and agriculture as the most vulnerable areas where adaptive solutions to address climate change are most urgently required.

“If there is one take-away from this project, it’s that climate change needs to be an important consideration in all planning processes, whether you work for industry, government, an NGO or within an Aboriginal community,” said Professor Blair Feltmate, director of sustainable practice of the School of Environment, Enterprise and Development (SEED), based at Waterloo’s Faculty of Environment.

The report outlines 20 recommendations that include: • City infrastructure. Conduct climate change vulnerability and risk assessments to evaluate storm water run-off systems for capacity and resilience to future climate extremes and incorporate climate change adaptation into city planning.

• Biodiversity. Model climate change to help inform solutions, creating habitat corridors in humandominated areas to better manage migration of invasive species.

• Freshwater resources. Protect and restore wetlands and natural drainage systems; change the design of human infrastructure to conserve water quality and quantity; and locate new communities and water-intensive industry where water will be plentiful.

• Aboriginal communities. Provide community capital planning and integrate resiliency into community access and energy capacity.

• Agriculture. Provide agriculture-relevant information on climate change, incorporate it into planning decisions and develop industry specific adaptation recommendations.

• Insurance. Update the National Building Code, incorporating these changes for new builds and modifications on current structures and launch a public campaign to inform Canadians about home and building improvements that lessen risk.

Visit www.adaptnowcanada.com for a copy of the report.

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Departments

>> Labour Relations

Operate EI like a true insurance system

BY CHARLES LAMMAM AND AMELA KARABEGOVIC

I

magine a world where your car insurance company charges everybody the same premium; it doesn’t depend on your driving record or the number of claims you make. Nor does it depend on your age or other characteristics that increase your risk of getting into an accident.

Such a system seems absurd because it benefits bad drivers at the expense of good drivers, but this is exactly how Canada’s employment insurance (EI) program operates.

In an attempt to make “Employment Insurance work better for Canadians,” the federal government recently proposed some changes to EI – a program that cost more

is prone to misuse, since it provides an incentive “forEIseasonal employers to game the system… ” than $16 billion last year. Unfortunately, the changes do not address fundamental problems with the system.

To truly reform EI, the system needs to operate like a true insurance system where premiums are adjusted for the risk of making a claim. Employers and workers pay the same premium rate ($2.56 and $1.83 per $100 of insurable earnings, respectively) regardless of claim history or occupation.

EI is prone to misuse, since it provides an incentive for seasonal employers to game the system by offering

workers enough hours to qualify for EI, laying them off, and then rehiring them next season when they are needed again.

After all, no penalties are levied either in the form of higher premiums or lower benefits for workers.

Not surprisingly, some workers structure their work life around the EI system. A study by economists David Card and Craig Riddell found that, over time, there was an increase in the number of Canadians who became unemployed after working the exact number of weeks needed to qualify for EI. The federal government recently proposed reforms that clarify what constitutes “suitable employment.” It will depend on a recipient’s claim history and how many weeks that person has been on the program. Compared to infrequent EI users, frequent users will have to accept employment that pays a lower percentage of their previous wage (as low as 70%). All EI recipients will generally have to accept jobs that are within a one-hour commute from home.

While the proposed rules are intended to get EI recipients “back to work” sooner, they do not address underlying problems with the program.

Experience rating The practice of “experience rating” would significantly improve EI because premiums would vary depending on one’s risk of making a claim. Employers who regularly lay off and rehire workers pay higher premiums, as would workers who use the system more often.

The federal government briefly experimented with a form of experience rating in the 1990s; the reforms were implemented in 1996 but ultimately repealed in 2001. Despite being in effect for only a short period, research by professors Alice Nakamura and Erwin Diewert suggests experience rating successfully reduced EI expenditures.

A study by Professor Stephen Woodbury examined employment insurance systems in Missouri, Washington and Pennsylvania and found that “increased experience rating significantly reduces layoffs.” A 1998 study published in the Journal of Labor Research also examined the impact of state policies on county and metropolitan unemployment rates and found greater experience rating is associated with lower jobless rates.

EI should provide temporary assistance to Canadians who unexpectedly lose their jobs through no fault of their own. If Canadians want a system that achieves that goal while limiting opportunities for it to be abused, then experience rating is a must.

Charles Lammam and Amela Karabegovic are economists with the Fraser Institute, a think tank based in Vancouver. This column is distributed by Calgary-based Troy Media. Visit www. troymedia.com.

Comments? E-mail jterrett@plant.ca.

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Departments

>> Economy EMPLOYMENT LEVELS UNCHANGED

thousands 17,600

SOURCE: STATISTICS CANADA

17,400 17,200 17,000 16,800 16,600

J

J

J

2008

ECONOMIC DE VELOPMENTS AND TRENDS

J

2010

J 2012

2011

There wasn’t much month-to-month change in employment levels in June. While unemployment was down 0.1% to 7.2%, on a yearly basis, it's up 1% to 181,000. Manufacturing jobs were down 0.8% for the month but up 3% year-over-year.

Manufacturers are optimistic about the future: KPMG Globalization and strong dollar call for at-home innovation

TRADE DEFICIT WIDENS

$ billions

seasonally adjusted

45

ing markets become key business targets. Manufacturers plan to spend relatively less on risk management than their global counterparts in 2012. Only 5% use scenario/simulation planning to address aspects of risk management and 17% don’t know how they’re going to identify risk in their supply chains over the next 12 to 24 months.

Visit www.kpmg.com/ca for a copy of KPMG’s Canadian Manufacturing Outlook 2012: Push and Pull - Reducing Costs and Investing in Innovation.

Q1 PRODUCTIVITY GROWTH WAS SLUGGISH Canada is not setting the world on fire with its productivity gains. A Statistics Canada report shows a slight gain of 0.1% in Q1 following increases of 0.7% in the two previous quarters.

Statistics Canada said this “slight gain” coming mostly from services reflected the recovery of hours worked after a quarter of decline.

Goods producers showed a drop of 1%. Gains in manufacturing (0.8%) and construction (0.4%) did not offset declines in mining and oil and gas extraction (0.9%) and agriculture, forestry, fishing and hunting (0.3%).

Labour costs per unit of production were up 0.4% after rising 0.8% in the previous quarter. Hourly compensation, up 1.5% in Q4 of 2011, rose 0.5% in Q1, the second successive quarter in which hourly compensation in Canada grew faster than productivity.

The productivity growth pause didn’t widen the gap with the US, where business productivity declined 0.2%.

43

Exports

41

SOURCE: STATISTICS CANADA

anadian manufacturers continue to be undisturbed by sluggish economic conditions, according to a report by KPMG. The consulting firm’s third annual outlook survey found 85% of Canadian manufacturers are more optimistic than last year (by 9%) and share a more positive outlook than that of their global counterparts.

“Our survey tells us that Canadian manufacturers are confident in their business strategies, but investing in innovation, increasing efficiencies and managing risk are top-of-mind moving forward,” said Laurent Giguère, KPMG’s industrial markets leader. “As smaller, niche players operating with a strong dollar, Canadian companies realize they need to innovate in order to compete with lower-cost global producers.”

Canada has not seen disruptive, game-changing innovation, nor has it experienced process innovation that can revolutionize and drastically improve productivity in the manufacturing sector. Despite the lack of recent transformation, KPMG says manufacturers do realize the impact innovation can have on their business and, more specifically, their bottom lines. More than 60% of the 150 manufacturers surveyed say the next wave of transformational innovation is underway or will be within the next 12 to 24 months.

Labour costs continue to be a priority for companies – half of the respondents intend to reduce them over the next 12 to 24 months. Coming in at number two for 46% of respondents is exiting unprofitable product lines and/ or geographies.

Companies continue to skimp on risk management strategies, despite their growing importance as emerg-

39 37 35 33

Imports

31 20 27

M

J

J

2007

2008

J

J

2009

2010

2011

J M 2012

Canada’s merchandise imports rose a modest 0.4% in May but exports stayed about the same, widening the trade deficit from $623 million to $793 million. Machinery and equipment exports were up 8.7% to $7.3 billion, heading off an outright decline in exports.

MANUFACTURING SALES DECREASED seasonally adjusted

$ billions 56 54 52 50 48 46 44 42 40 38 36 34 32 30 M J 2007

Current dollars 2002 constant dollars J 2008

J 2009

J 2010

2011

SOURCE: STATISTICS CANADA

C

J

2009

J M 2012

Manufacturing sales in 13 of 21 industries declined 0.4% to $48.7 billion in May. Petroleum and coal product sales dropped 9.6%, reflecting temporary shutdowns at some refineries. The decline was largely offset by gains of 65.8% in the aerospace product and parts industry.

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Think Lean << Operations

>> OEE

Get the most from your equipment Eliminate waste with an asset optimization strategy

M

Take a

WASTE walk LOOK FOR OPPORTUNITIES TO OPTIMIZE TIME AND TALENT Walk the line and observe how team members transfer information, communications and materials. You'll see how your operations really work.

BY RICHARD KUNST

C

urrent economic uncertainties are forcing manufacturers to focus more on optimizing time and talent. Taking a walk through your plant’s value stream (a “waste walk”) may uncover some depressing truths about your operations, but it will also be rich in opportunity.

People are wired to seek the easiest path and will find innovative shortcuts, so how do you leverage the most effective “techniques” for others to apply?

People want to do a good job. Look in drawers, cabinets and toolboxes. What do you see? Are there opportunities to reduce inventory through improved processes? Bet on finding a complete hidden “stores” facility of tools or parts in personal storage locations.

How are you getting the materials into the hands of your team members without invading their work areas? We are social creatures. Interrupting the employee in his/her work area creates an opportunity for conversation. Studies show that every time an employee is distracted it takes 20 minutes to regain focus on the task at hand – a big productivity waster that’s often overlooked.

When you walk through the processes, what do you immediately observe?

Is process flow evident? Can you see the status of each operation? Are the employees safe, clean, comfortable and well-informed?

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We tend to look at the process within a specific task to insure performance has been optimized, but how often do we look at the transfer of information, communication and materials? Do they operate to a specific cadence or have we allowed one to be informally adopted within the value stream? Team members will find their own pace to do work unless performance targets or takt time have been established.

Observe your conveyance methodologies, which are – at best – 50% efficient.

Are the aisles clear and uncluttered or have you designed an obstacle course?

The floors should be telling you what kind of stuff is located where and in what quantity. If an open space appears, material conveyance employees will pounce on the opportunity to “optimize” it. If you don’t have “talking floors” a non-value add core competency will spring to life called “moving stuff around,” something customers are not willing to pay for.

Fear of review Where are parts and supplies located?

Are employees exercising excessive motion to retrieve parts, forms and information or can you do a simple layout adjustment to make access easier? In many cases, we store items in part number sequences rather than based on consumption rate. Once an area is organized there’s a tendency to fear a return for review and potential re-adjustment.

Inventory levels at point of use are often established by default based on the size of the storage container. Hopefully, your plant employs a Plan For Every Part (PFEP) database. It will allow you to calculate with accuracy the size of your supermarkets and determine the quantity

How are inventory levels at a point of use determined?

PHOTO: THINKSTOCK/JUPITERIMAGES

required at your point of use (POU) locations based on replenishment rates.

Sometimes conducting your waste walk near the end of a shift will reveal some additional opportunities. Most companies allow employees time to clean their workstations and areas.

Has “clean” been defined? Often it’s the employee’s definition. Cleaning should support the company view and the criteria of your total productive maintenance program to insure processes must remain predictable, reliable and robust.

Do employees use compressed air to clean? Compressed air just moves debris to other locations that could cause problems for processes later. The only benefit is that dust will settle on parts and machines, creating a visual indicator of how stagnant your inventory flow may be.

Finally, observe how employees are leaving their workstations at the end of shift. Are their stations clean and devoid of parts rather than populated and ready for immediate engagement on the incoming shift? This is a productivity robber.

Do the math: five minutes to clean the area and then five to 15 minutes to get ready for production equals a daily productivity loss of 2% to 5% or 10 to 25 minutes. Since break-even for a plant is seven hours and 56 minutes out of an eight-hour shift, those wasted minutes count.

Have fun with your observations and remember, sometimes it’s better to slow down to go faster.

Richard Kunst is president and CEO of Kunst Solutions Corp., which publishes the “Lean Thoughts” e-newsletter. Email rkunst@kunstartofsolutions.com.

any manufacturers and processors have established initiatives that focus on maximizing equipment performance while lowering maintenance costs.

As a result, executing an effective asset optimization strategy while leveraging available data has become essential, says Ben Venter, regional service director for Western Canada of global automation company ABB. The reason for optimizing equipment reliability is compelling. More than $20 billion of North American production is lost every year to unscheduled downtime. Improvements are needed to prevent production yield losses and quality losses.

The challenge is to ensure maximum capacity; properly manage the workforce; perform preventive maintenance; modernize existing equipment; reduce labour, repairs and stores budgets; and ensure conformance.

No interruptions That’s what overall equipment efficiency (OEE) is about. It’s defined as availability x performance rate x quality rate, and the tools to achieve it are just-in-time, lean maintenance, six sigma, total productive maintenance and reliability-centred maintenance.

The goal is to maintain production with no interruptions, says Venter. To achieve it you need to: • expedite implementation; • increase overall benefits; • eliminate degradation; and • aim at continuous improvement.

Management, operations and maintenance must work together to deliver a reliability-integrated solution through condition-based monitoring; comprehensive equipment condition reporting; a reliability dashboard; and a calibrated CMMS. Venter says the power of integration lies in promoting collaboration through plant systems and applications; improving operator efficiency using integrated information; and achieving seamless control via an integrated fieldbus.

The advantages gained are: increased operating effectiveness and reduced repair time through streamlined work processes; elimination of paperwork; and a single electronic audit trail.

High equipment availability translates into sustainable, profitable growth, a higher return on asset investment, reduced costs, and increased competitiveness.

Information for this article came from the MainTrain maintenance conference in Toronto, convened by Plant Engineering and Maintenance Association of Canada.

Comments? E-mail jterrett@plant.ca.

Comments? E-mail jterrett@plant.ca.

PLANT 13

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Operations

>> Productivity

Operation AUTOMATION PROVANTAGE’S MISSION: BOOST PRODUCTIVITY It specializes in sophisticated machine and process control, and supply chain optimization.

BY MATT POWELL, ASSISTANT EDITOR

A

utomation is touted as an industry game-changer, yet Canada’s manufacturers have been slow to update their processes with the technology.

They’ve been getting an earful from various industry experts who declare automation would boost Canada’s lagging productivity, but buy-in has been slow thanks in part to a high-value loonie, hard-to-find investment money and sluggish export growth; and the European economic crisis hasn’t helped either.

The paradox is automation requires capital investment, and Canadian manu-

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facturers are spending only 71% of what their US counterparts do on machinery and equipment, says a recent TD Economics report. It suggests this is contributing to the productivity gap, but manufacturers are starting to see the light.

Canadian companies have boosted investments by 6.6% this year, according to TD Economics economist Dina Cover, which has also boosted output by between 3% to 4%. Manufacturing sales are also up by 5.6% this year, while new orders have grown by 6%, according to Statistics Canada.

In her report, Cover concedes manufacturers are sitting on more cash these days because they’re not hiring as quickly, which suggests there is money to spend.

Indeed, manufacturing has only recovered 30% of the 500,000 jobs it lost during the recession, which is also contributing to

Canada’s productivity gap.

Rob Hattin has seen enough. He’s sick of manufacturing’s dark days and the sector’s continued, yet slow recovery.

And he sees a business opportunity.

Call to action “All the demographics suggest prosperity is dependent on replacing our aging workers with capital investments, and if I’m going to preach about automation, I have to do something about it,” says Hattin, one of three principals of the new ProVantage Automation and vice-chair of Canadian Manufacturers & Exporters (CME).

He sold his stake in Hamilton’s Edson Packaging, Canada’s largest advanced packaging equipment manufacturer, 18 months ago and started looking for new ventures.

“I’ve been in the manufacturing and

industrial world since college. It’s what I know. It’s the world I’ve lived in for 30 years,” he says.

Hattin, along with partners Peter Graham and Alex Shalamov, launched the Ancaster, Ont.-based automation and mechatronics services provider earlier this year. The company currently employs a team of seven, but Hattin says that number will jump to 20 by the end of the year as operations and revenues ramp up.

Between them, Hattin says the team has designed and built more than 600 systems over a combined 50 years of industry experience, which he sees as the company’s competitive advantage.

“We know how machines run, we know the touch and feel and mechatronic elements of a system,” he says. “Most automation companies and programmers haven’t had the benefit of running a line and understanding how it operates.”

Specifically, ProVantage specializes in sophisticated machine and process control operations for advanced manufacturing,

July/August 2012

12-07-31 1:33 PM

ProVantage builds panels for suppliers who can’t do it themselves.

which increases user output by 30% to 40%, he adds.

“In most cases, existing machines are good mechanically, they just need to be controlled better. Doing so, we can help operators control lines, which increases supply chain flexibility.”

Number cruncher

Productivity power producers – the ProVantage team (L-R): partners Peter Graham and Alex Shalamov; controls specialist Scott Prieur, and Rob Hattin.

PHOTOS: STEPHEN UHRANEY

packaging and material handling companies. Those “sophisticated” things Hattin refers to include services related to lean manufacturing, line efficiency and safety, and data analytics. The company also offers design and programming services to local panel builders that want engineered, documented panels, but may not have the resources to engineer them. And the partners also help optimize entire supply chains, from the IT level to production.

Hattin says that focus and systems designed by Graham and Shalamov have helped ProVantage reduce changeover times by 80%.

“If you can change a line over in 10% of the time it used to take, that’s a huge benefit for companies looking to get more out of their production lines,” says Hattin.

“Companies want to optimize their lean techniques and the benefit of that is pushing all the information up to IT. Production needs to marry all aspects of the supply chain to improve efficiencies.”

More efficient machines last longer,

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There’s another part of the automation equation Hattin’s trying to solve: measuring the efforts and benefits of boosting automated activities on the shop floor.

To do so, the partners have designed a quantitative analytics and simulation service to provide manufactures with real-time production data on a sku by sku basis to demonstrate that a line has been fully optimized.

“We’re taking these huge amounts of data and analyzing it to death,” he says.

“This way we can optimize inventory for a feeding line and give the customer numbers that can be expected for output based on simulation.”

The activity is almost impossible without connecting legacy machines so they communicate with each other, another way the partners are bringing the supply chain together from the top down, boosting automation without spending a lot of money on new equipment.

“Most lines are made up of different machines from different vendors, so you have this jambalaya of machine control,” he says. “We’re trying to demonstrate that old legacy equipment from different companies can communicate through a system that’s optimized to enhance productivity.”

That’s where ProVantage’s automation lab comes into the mix.

This is the playground where they try out new things and tinker with solutions.

It’s designed to solve connectivity issues Continued on page 16

Scott Prieur troubleshoots a SERCOS communication system.

PLANT 15

12-07-31 1:33 PM

>> Productivity

Trends

Automation playground

Manufacturers urged to

between various OEM components and devices, and keeps the company and its clients current on new equipment. This helps when it comes to developing complex programs for a client’s machines, and the entire supply chain. It also gives Hattin and his team the chance to demonstrate customized systems before installation.

INVEST NOW

GOOD NEWS FOR CANADIAN COMPANIES: US MANUFACTURING IS ON THE ASCENT

The bigger picture “We’re trying to show clients they can come in and have a look at the lab and let us show them how we can enhance their operations, while putting the onus on the equipment supplier to make sure their stuff works the way it should,” says Hattin.

They didn’t have to wait long for customers. Before the company was even 48 hours old, it closed it’s first deal – one that Hattin says has exceeded 2012 revenue expectations.

The identity of that customer is confidential, but the scope of the project involved boosting production times using automation for multiple high-speed production lines to meet a final capacity of 120 parts per minute.

The “part”, a low-cost, environmentally sensitive packaging product, had a number of variants, adding to the complexity of the project.

ProVantage was tasked with optimizing the production lines in six weeks, providing parts inspection and rejection, robotic stacking and re-orientation applications to ensure there was a low grouping tolerance so parts made it to different processes more efficiently.

To do so, ProVantage developed a customized pass/ fail vision program, “fuzzy” electronic line shafting, a visual line-tracking system and a lean-based project management system.

The outcome: a system that was provided in seven weeks, now operating at 110% efficiency.

To Hattin, ProVantage is another cog in the manufacturing wheel, one that he hopes has an effect on the efforts needed to help manufacturers excel.

“I met with [Bank of Canada governor] Mark Carney last year and expressed to him very candidly the necessity for Canadian businesses to automate if they want to be relevant, to play a part in global markets,” says Hattin. “They have to get off that comfortable pew. We’ve got a low tax regime and it’s my belief the government has created market conditions we need to compete.”

Now it’s industry’s turn to step up.

Comments? E-mail mpowell@plant.ca.

Rely on Reelcraft Made in USA

BY JOE TERRETT, EDITOR

A

sombre USA Today headline for a front-page story outlining the Federal Reserve’s latest prognostications proclaims, “Economy expected to limp longer.”

The article reports Europe’s debt crisis is creating uncertainty while factory output and retail sales have slowed and by year’s end there will be little change in America’s 8.2% jobless rate.

Closer to home, the Bank of Canada has lowered its growth projections and has declared Canada’s economy is struggling amid “mounting difficulties from abroad” that have weakened commodity prices, adding to existing home-grown problems.

It’s hard to remain steady when the news is so bleak.

But that’s just the kind of gloomy messaging manufacturers should ignore, according to Alan Beaulieu, president of ITR Economics, who was speaking to a room full of them at a conference in Plymouth, Mich.

The “Fast Forward” event, presented by the Italian Trade Commission, Machines Italia, Federmacchine and Industry Week magazine, offered its US audience strategies for solving their most challenging problems, one of them being the timing for investment.

Beaulieu’s advice? Invest in your business. Pay too much attention to what the media says and you’ll hold back. “You can’t afford to do that,” he said, because the conditions are ripe to take advantage of the growth anticipated over the next six years.

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Indeed, he contends the US is experiencing a good recovery, especially industrial production, and it’s picking up speed.

The good news for Canadian manufacturers supplying US customers is that leading indicators are pointing up. He said manufacturing is on the ascent as a percentage of GDP; consumers are spending; banks are flush with cash ($1.5 trillion) and are lending; businesses have $2 trillion in cash; and the government is providing stimulus to the economy.

But what about the unemployment numbers that are such a worry? They are useless, he said. They aren’t an indicator of what will happen in the future.

And companies should not worry about the trouble in the EU. He said US exposure TO KS N I is limited and even if the Euro Zone failed, the H O: T PHOT US economy would weather the fallout. Not that Europe is going to spin out of control.

“The world doesn’t want to see the Euro Zone fail. There are mechanisms in place to ensure it won’t happen,” he said.

CK

Continued from page 15

>> Capital Investment

Invest until you can’t sleep ITR, a forecasting outfit based in Boscawen, NH that boasts forecasting accuracy of 94.7%, predicts a steady 18 months or so through 2013 with a mild downturn in 2014 followed by a healthy recovery from 2015 to 2017.

Beaulieu advised manufacturers to invest in their businesses now. Rates are low (below 2% and projected to be as low as 0.25% by year-end 2014).

“Borrow until you can’t sleep,” he advised noting rates and taxes will eventually rise.

And a good place to invest? Canada, he said, where the economy is stable; the budget will be balanced by 2015 and debt paid down by 2016; the banking system is the best; and immigration policies positive.

Mexico’s economy is “doing great” but he wryly suggested kidnapping insurance for those doing business there. And avoid Russia. “Very dangerous,” he said, noting partners have wound up murdered and businesses told to sell, and to whom.

He also offered the following objectives to pursue: • Positive leadership modelling • Add sales staff and hire top people • Training programs • Lock in costs • Invest in customer market research (know what they value) • Judiciously expand credit • Check distributions systems for readiness to accommodate increased activity • Review and uncover competitive advantages • Improve efficiencies with investment in technology and software • Spend on new products, marketing and advertising • Work on “what’s next” “All kinds of economic trends analysis says the economy is expanding,” he said. “…If you are waiting for something better to come along, you’ll be disappointed: this is it!”

Comments? E-mail jterrett@plant.ca.

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Costs<< Trends Manufacturers need to focus on improving productivity and diversifying export markets.

There are about 1.6 million people employed in manufacturing, accounting for 10% of all jobs.

PHOTO: THINKSTOCK/STOCKBYTE

BY MATT POWELL, ASSISTANT EDITOR

tional gap by having those jobs around,” he says. “Nowadays, high-paying jobs require education and we no longer have the shop floor jobs to bridge the gap.”

Investing in education and training creates jobs and provides opportunities for existing employees to improve, he adds.

• Improve productivity and add value. There have been productivity gains but Canada is not keeping up with other G7 nations. Productivity output grew by 5% between 2000 and 2007, says Cover. Gains in other nations, such as Japan, grew by 30%.

“You don’t have to send people out the door to cut labour costs to improve productivity, but much depends on streamlining your processes to ensure your company is as productive per man hour of work as it can be,” says James Milway, executive director at the University of Toronto’s Institute for Competitiveness and Prosperity. “Lowering labour costs and improving productivity comes down to better processes.”

D

espite slight productivity gains and a more stable economic performance as the rest of the world wobbles, Canada’s job creation is lacklustre, while high labour costs are becoming a perpetual competitive handicap to manufacturers.

Labour costs are driven by a number of factors, including slower gains in productivity, investments in innovation and R&D and the high-value loonie. KPMG Canada estimates 55% of manufacturers’ spending goes to labour costs. That’s up from 14.1% in 2008, according to Statistics Canada. Labour costs for companies in emerging markets such as China, India and Mexico represent about 30% of overall expenditures.

Closer to home, Canada’s wage advantage over the US has disappeared. The average per hour wage is $35.76, compared to $34.74 in the US. And Canadian manufacturing salaries have increased by 3.1% in 2012, topping $896 per week, according to Statistics Canada.

“Gains in output haven’t been matched by gains in jobs because the economic outlook is pretty uncertain (thanks in part to turmoil in the EU) and the US was recovering at a slower rate, so companies have been overly cautious,” says Dina Cover, a TD Economics economist.

“Manufacturing will recover, but its share of the economy is unlikely to gain much ground.”

Today, manufacturing accounts for 10% of Canadian employment, or about 1.6 million jobs, according to Cover, who says it’s unlikely manufacturing will pass 12% in the near future. That’s down from its peak of 16% in 2000, and because labour productivity is a key determinant of GDP per capita, it adds to Canada’s labour cost problem.

So what’s a company to do?

Martin Lavoie, director of manufacturing policy at Canadian Manufacturers & Exporters (CME), says improving the country’s labour challenges will also come down to bridging a disconnect between industry and education. How we make things in Canada will become more advanced.

“Advanced manufacturing means more automation and more advanced production processes to increase productivity, so now the trend is to have fewer people on the shop floor and more in support positions,” he says. “Those kind of positions require people with higher education levels to develop those processes, technology and automation applications.”

It comes down to a refined mix of process improvement, investment, innovation and entering new markets.

Here are some of the ways successful companies are driving down labour costs, although not all of them are pretty.

• Automate. Brian Smith, Ontario and

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Bridging the gap

Labour PAINS HOW TO COPE WITH THE HIGH COSTS Atlantic lead of supply chain management at KPMG Canada, is a big fan of automation, but concedes this usually means getting rid of shop floor jobs, although that’s not always the case.

“Canada needs to learn to get ahead by competing based on superior design, manufacturing processes and, ultimately, automation,” he says. “Almost by definition, being more automated means some jobs are lost. Some [companies] are still finding ways to create jobs, but that means being really smart about automation.”

Improving automation also allows producers to team with sister operations for shared applications that increase output volumes in specialized manufacturing operations. Doing so spreads out fixed costs.

Lavoie agrees automation and improved design will help improve Canada’s labour costs, but much will depend on manufacturers recognizing the need to become more advanced.

Some companies are getting it. Statistics Canada says manufacturers are increasing spending on capital equipment and machinery by 6.6% this year, and

Cover says more automation levels will lead to greater opportunities, crucial to improving competitiveness, increase cash levels, and improve job growth prospects.

“Diversifying export markets improves business position,” she says. “The US is doing this by creating new trade agreements, which also suggests there’s already more competition by default for Canadian firms looking to diversify.”

More Canadian businesses are looking beyond the US. In 2000, 88% of Canada’s manufacturing exports went to the US. Today, it’s 77%, while exports to Asia and other booming economies are up by 150%.

• Education and training. “It’s trendy to blame natural resources for what’s going on in manufacturing... but there’s a major gap in the bridge between education and industry that’s slowing growth and productivity,” says Lavoie.

More skilled workers will be required to operate more specialized equipment.

“The challenge when you have 30% of the population in manufacturing positions that don’t require high education is that you were offsetting the educa-

Milway believes improving productivity requires top-down management.

“Plants need to become more than just plants,” he says. “There needs to be more designers and creative workers.

You can’t look at a plant as a job-shop if you want to improve productivity, keep people employed and lower your costs.”

Improving those factors will make value-added an important competitive advantage, he adds.

“Canadian firms need to focus on ensuring customers understand that they’re not just getting a product, but a service as well,” he says. “Getting costs lower means putting in some good work to your company’s revenue line,” says Milway. “You need to get more value to your customers, understand how you’re going to deliver that value and support those ambitions.

It’s not about slashing and burning labour costs, it’s about getting better.”

• Overtime doesn’t cut it. A lot of companies are asking employees to work more instead of creating new jobs or adding shifts. “But this is a short-term strategy that’s usually used when companies are uncertain about the stability of the global economy and the export markets they serve,” says Lavoie.

It’s actually an expensive solution, he says, but it may explain slight productivity increases. The problem is that there’s no correlation between productivity and employment.

• There’s always the CAT solution.

Not happy with union demands, then offering a take-it-or-leave-it contract that would have slashed wages and benefits at its London, Ont. Electro-Motive locomotive plant, Caterpillar finally shut the doors, putting more than 500 unionized and non-unionized Canadians out of work.

Production was sent to a plant in IlContinued on page 18

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Trends

>> Costs

Dealing with the dollar Continued from page 17

linois where the less union-friendly state offered generous incentives to attract investments.

• Learn to cope with the expensive loonie. A high Canadian dollar makes our products look more expensive, but it also increases our cost of labour.

Cover notes the loonie, hovering just above or below the US greenback since 2009, is not going down anytime soon; and increased demand generating higher prices for resources underpins a stronger currency, which leaves other exports less competitive.

Export Development Canada (EDC) in its report, The Canadian Dollar, How Canadian businesses are adapting to a strong Canadian dollar (www.edc.ca), offers some advice for coping with the loonie, including: diversifying markets; refocusing on other strengths such as quality, service and innovation; be unique; and deal in US or other currencies.

The German formula • Higher wages, not so bad. Higher wages certainly contribute to higher labour costs, but they’re not necessarily an impediment to a strong manufacturing sector, certainly not in Germany. It’s a leading world economy with low unemployment and a manufacturing sector that’s a powerful driver of growth.

Labour costs there grew by 19.4% between 2001 and 2011, according to the German Federal Statistics Office. That’s half what France’s labour costs grew (32.9%), and well below the European Union of 36.1%. Yet, Germany’s manufacturing wages average $42.36, 48% higher than the EU average.

So how is it that Germany’s been able to thrive and even weather the current economic upheaval in the EU? One answer is exports. Although 40% of them go to other EU countries, they represent 50% of Germany’s overall GDP, according to the World Bank. Canada’s exports represent 29% of its overall GDP. Also of note are the strategic clusters of firms that specialize in niche areas of manufacturing, giving labour a say in management decisions and having an apprenticeship and vocational training system in place that keeps skill levels high and youth unemployment low.

Germans also enjoy twice as much vacation time as Canadians, at least 20 days annually.

Canadian manufacturers have some work to do to catch up with their German counterparts. Improvement will depend on investing in automation, improving processes, skills development and coping with a higher value dollar.

The pay-off will be a stronger manufacturing sector, stronger companies competing successfully in world markets and like the Germans, perhaps more vacation time.

Comments? E-mail mpowell@plant.ca.

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>> Automotive

TIME to hit the ROAD

AUTOMAKERS MUST LOOK BEYOND NORTH AMERICA Auto parts suppliers need to be aware of where their customers are going.

PHOTO: FORD

of its Lexus RH350 and RH450 luxury SUVs by 30,000 units.

It’s clear Canada’s auto sector has an ally in Toyota, and despite the potential of a new Lexus product eventually coming to Canada and the benefits it would provide the industry, there’s still a number of roadblocks the industry needs to overcome, Rodgers says.

“We’re still coming from behind, we’re still fighting a difficult situation with respect to the overall competitiveness of Canadian manufacturing,” said Rodgers in an interview, citing ballooning labour costs, coming up short on innovation There’s major growth in Asia-Pacific markets. Canadian and looming labour shortages that acautomotive parts manufacturers need to be there. count for the sub-par investment profile Canada’s sector currently presents.

BY MATT POWELL, ASSISTANT EDITOR There’s also upcoming labour negotiations with the Canadian Auto Workers (CAW) union that could have a major impact on o global.

Canadian competitiveness. Rodgers says prosperity will depend That’s the call from Canada’s auto parts industry experts on the union’s willingness to make concessions. and key players as the sector continues its recovery.

“The union needs to respond with a package that meets the Keynotes from Toyota’s Ray Tanguay, chairman of the needs of the industry,” he said. automaker’s Canadian manufacturing operations and Magna Industry success will come down to whether or not the CAW International CEO Don Walker at this year’s Automotive Parts understands that auto workers are the roadblock between proManufacturers’ Association (APMA) conference were similar, duction going up in Canada or slipping further, he adds. calling on the country’s parts manufacturers to boost opera“If they’re responsive, production will go up,” he said. “If not, tions abroad and leverage Canada’s strong manufacturing we can count on production continuing to leave Canada.” labour force to boost competitive advantage.

Robinet says two more Canadian plants will close if negotia“It won’t do to stick in Canada,” said Tanguay, at the annual tions go sour. conference in Windsor, Ont. “To succeed today, you have to go “The CAW negotiations will be a major driver in what hapglobal.” pens in Canada in the next five years,” he said.

APMA president Steve Rodgers concurs. “Competitive opporIndeed, General Motors (GM) recently announced the clostunities lie outside the NAFTA region,” he said. ing of one of its Oshawa, Ont. plants, potentially cutting 2,000 For an industry in recovery devastated by recession, globalCanadian jobs and moving Chevrolet Impala production to ization would boost lucrative opportunities for companies hopHamtramck, Mich. ing to diversify operations. Walker said Magna will have more The automaker has cut 10,000 Canadian jobs since the than 45 facilities in China and Brazil operational by 2014. By recession, shuttering two plants in Oshawa and Windsor after then, North American production will represent less than 50% Canadian governments invested $10.5 billion keep the company of the Aurora, Ont.-based manufacturer’s total output. on its feet.

This year, the North American automotive industry is exMeanwhile, investments in the BRIC countries and Mexico are pected to produce 14.7 million vehicles, according to Michael a-plenty, thanks in part to cheap labour and inflated R&D budgets.

Robinet, managing director at Colorado-based automotive But Rodgers is reluctant to throw in the towel. consultancy, IHS. In terms of growth, he expects sales of light “There’s a ton of opportunities in Canada,” he said. “We’re still vehicles to skyrocket, making up 39% of total sales between producing 2.3 million vehicles here. Logistically, it makes sense 2010 to 2017. From 2002 to 2007, that segment represented only to be here and we’ve got an incredibly talented labour force.”

23% of output.

Indeed, most of Canadian vehicle production is confined to OEMs are also expected to lower production costs and speed an area so small, it can be driven in less than five hours. up supplier cycles by boosting cross-segment modularity tech“Canadian auto production is contained to the area between niques to handle several vehicle segments on single platforms.

Windsor and Oshawa. It’s a tight range compared to other areas “Tightening emissions regulations have tightened platform like China and India, which may have more producers, but development,” said Robinet. “Economies of scale are no longer they’re spread out across massive distances,” he said. vertical.”

Canadian suppliers would benefit from expanding their scope Perhaps most telling about this industry in transition, however, to emerging markets. Rodgers expects the global automotive is Tanguay’s concession that Toyota will slow production in its sector to produce about 80 million vehicles this year, up from native Japan, which could be a good thing for Canada consider50 million in 2002. There’s obviously growth, but he estimates ing the automaker’s already prominent presence in Ontario.

60% of that is coming from Asia-Pacific markets.

Tanguay says 60% of Toyota’s overall production will come “Canadian firms need to go there,” he said. “It’s not just about from outside of Japan. He also hinted a new Lexus product could going to every country in Asia, it’s about realizing where your be on its way to the company’s Woodstock, Ont. facility, where it customer is going. But that doesn’t mean you have to leave produces the Toyota RAV4 SUV. In April, the automaker invested Canada.” $80 million to boost the plant’s RAV4 production by 50,000 units a year. More recently, it pumped $100 million into its Cambridge, Comments? E-mail mpowell@plant.ca.

Ont. facility creating up for to 400 jobs and boosting production

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July/August 2012

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Tax Credits << Management

>> Leadership

The Harper government has streamlined the SR&ED program, but, there is support for business-driven applied research.

Are your employees truly engaged?

Why they may not be and what to do about it.

BY GLENN FRASER AND RYAN CRESSMAN

T

he federal budget may have cut the Scientific Research and Experimental Development (SR&ED) pie into smaller pieces, but it’s also offering small and mid-sized processors and manufacturers some fresh slices that are certainly appetizing.

In an attempt to address Canada’s growing innovation gap by boosting R&D investment, Finance Minister Jim Flaherty announced several changes to the program, among them lower tax credits and more direct grants. The focus is shifting from pure research to “businessdriven, industry-relevant applied research.” The National Research Council’s Industrial Research Assistance Program will get an additional $110 million added annually to support R&D projects by smaller businesses. And businesses in the western provinces will have access to a new Western Innovation Program.

The government is also supporting collaborations between companies and universities to better target research based on needs that delivers clear economic advantages. Small and mid-size businesses will have access to university level researchers and receive SR&ED credits on funds paid to support this. To achieve economies of scale, companies will form consortiums to pursue common research, share results and receive SR&ED credits for the funds they contribute.

Evolving consumer expectations and food retailer requirements present some particularly tempting propositions for food and beverage processors, including the following: • Creating new recipe formulations to address emerging consumer preferences (such as reduced sodium, natural ingredients, sugar substitutes) while maintaining acceptable flavour profiles, product presentation and shelf life.

• The rising popularity of functional foods that deliver health benefits requires testing nutritional benefits.

• As interest in anti-allergenic foods (gluten-free, peanut-free) increases, there’s a need to test products and prove claims.

• The push for environmental sustainability is impacting packaging (biodegradable, recyclable) as well as storage and delivery systems.

• There’s growing interest in tracking food products and ingredients throughout the supply chain.

• Pressure on margins and retailer consolidation continue to drive the need for production efficiencies to deliver products at a lower cost.

• Technological advances, demand for web-based interactive services and cost concerns also require processors to develop more productive IT systems and processes to support their businesses.

The government made changes to the

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BY CHRIS BART

E

The focus is shifting to businessdriven R&D

PHOTO: THINKSTOCK/ HOBY FINN

FOOD for THOUGHT

GET YOUR SLICE OF THE CALORIE-REDUCED SR&ED PIE

program to save costs. They could affect your company.

Simplified tax credits Expenditures that qualify for SR&ED tax credits currently include wages, subcontractor fees, overhead, materials and capital equipment. To simplify the tax credit base, the government will eliminate capital expenditures from eligibility for SR&ED deductions and investment tax credits by the end of 2013. With this deadline approaching and the current strength of the loonie, consider purchasing new equipment that qualifies for SR&ED credits, prior to the cessation of eligibility.

There are two federal input tax credit (ITC) rates for SR&ED: a general rate and an enhanced rate of 35% on expenditures up to $3 million for qualified Canadian-controlled private corporations (those with prior-year taxable income below $500,000 and prior-year taxable capital below $10 million). To improve the cost effectiveness of the program, the government is reducing the general rate from 20% to 15% beginning Jan. 1, 2014. The 35% enhanced rate remains the same. Companies that qualify for the general rate should evaluate SR&ED potential and factor this into your return on investment calculations.

There are two ways to claim SR&ED overhead expenses: identifying each

item individually or claiming overhead expenses for 65% of the total salary and wages of employees engaged in SR&ED. Most companies find the latter method simpler.

The government has reduced the prescribed proxy rate to 55%. When claiming expenses, carefully evaluate which option may be most beneficial.

Only 80% of sub-contract payments are eligible to claim as expenditures. If you have contractors who are working almost full-time on SR&ED work, it may make sense to convert them to employees so the company can claim associated overhead expenses.

Despite these cutbacks, the value of SR&ED tax credits for most participating Canadian businesses will only be reduced by approximately 7%, depending on the province of residency.

Consider how SR&ED will make your company more competitive and profitable, then serve yourself a slice of that pie and enjoy.

Glenn Fraser (glenn.fraser@mnp.ca) is a partner and leader of MNP’s GTA region Food & Ag processing team. Ryan Cressman (ryan.cressman@mnp.ca) is a partner, SR&ED Consulting, who works in MNP’s Waterloo, Ont. office.

ngaged employees who give more than what their jobs require contribute to better business performance. But that can be an elusive achievement, especially when employees, like 55% of those responding to a Conference Board survey in 2010, are not satisfied with their jobs.

Human resources firm Aon Hewitt, based in Lake Forest, Ill., found in its annual global survey of client firms that since the onset of the economic recession in 2008, companies with less than 40% of their workers engaged saw returns that were 44% lower than average. In contrast, when 65% or more were engaged, shareholder returns were 19% higher than average.

Here are three typical impediments to employee engagement and what to do about them: • Ignoring the corporate mission statement. A well-crafted mission statement provides specific guidance regarding the actions and behaviours of employees. Be clear about organizational goals and show employees how their work contributes to success. It’s the nearest leader’s responsibility to help them understand why their work matters and that customers measure the company based on every activity, big or small.

• Failing to perform simple acts of gratitude. Publicly acknowledging exceptional work is important, but rewarding the routine and commonplace such as good attendance is also encouraged. Consider giving each of team leader $100 per week for undefined team building activities outside normal working hours. Strengthening the personal bond between team members during off-hours will make asking for jobrelated favours less of an imposition.

• Not taking an active interest in employee goals. Most team members want to know there are avenues for advancement.

Make career development and training opportunities available at every level and have supervisors initiate regular discussions about how the company can help employees achieve their goals. This is especially important for the lowest-ranked employees.

Creating an inspired and engaged workplace requires a leadership team – from the shop floor supervisor to the top boss – that understands and values employee engagement and is prepared to work diligently to achieve it.

Chris Bart is the author of the mission implementation and leadership book, “A Tale of two employees and the person who wanted to lead them,” one of the top 10 best selling business books in Canada for nine consecutive years. Visit www.corporatemissionsinc.com.

Comments? E-mail jterrett@plant.ca.

Comments? E-mail jterrett@plant.ca.

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Management

>> Exporting

Business

in BRAZIL OPPORTUNITY IN THE LAND OF THE BOSSA NOVA

It’s one of the world’s largest economies and the outlook is positive, but there are some challenges.

or as co-investors. The local Canadian Embassy with its trade offices across the country can help (www.tradecommissioner.gc.ca).

Exporters and investors need to understand the competition, import tariff legislation, tax and regulatory systems, labour supply and challenges related to (weak) infrastructure.

BY MARK DRAKE They also need to appreciate the Brazilian culture where – as in much of Asia and the Middle East – trivia question: What major international events are taking relationships are of prime importance, and the famplace in Brazil within the next four years? If you are focused on ily is the centre of social structure. Personal introductions sport you’ll know Brazil is hosting the World Cup in 2014 and can be highly beneficial, and then taking time to get to know and the Olympics in 2016. Both events present challenges and opportunitrust the local partner will be critical for success. ties for this vibrant nation of some 200 million people.

Deals take longer to consummate than in the West, so it’s Although economic activity is in slight decline, Brazil remains one of important not to rush things (more at www.communicaid. the largest economies in the world, and the outlook under the recently com, search for Brazil). Although some English is spoken, elected president Dilma Rousseff is generally positive, with anticiparticularly in business circles, knowledge of Portuguese is pated annual growth of around 3.1%. Unemployment is – by present enormously helpful. worldwide standards – a reasonable 6.7% with inflation of around 7.2% The Canada-Brazil Chamber of Commerce (www.brazcanper annum. Per capita GDP is almost $11,000, consumer spending is Christ the Redeemer in Rio de Janeiro, Brazil, chamber.org) has a list of members on its site (under buoyant and the appreciation of the Brazilian real over the past few considered the world’s largest Art Deco statue. years (now 1.5 per US dollar) has led to an expansion of imports.

PHOTO: THINKSTOCK development) which includes Canadian companies active in the country (SNC Lavalin, Bombardier), plus banks and lawyers.

The sporting events will provide excellent opportunities for Canadian Major accounting firms can also give advice. exporters and investors, with expenditures on facilities, infrastructure and security Boundless opportunities indeed – and potential attendance at the Olympics and estimated to be US$11.3 billion. Investors should also be able to take advantage of World Cup to boot. the government’s growth acceleration program (PAC 11), which stresses the need for public-private partnerships, with an emphasis on energy, houses, schools, ports, water Mark Drake is former president of Electrovert Ltd. and the Canadian Exporters’ supply, power generation, security and urban mobility.

Association. E-mail corsley@videotron.ca.

Some challenges remain, notably the requirement to balance the promotion of business with the social agenda, the improvement of the country’s creaky infrastructure and Comments? E-mail jterrett@plant.ca. on-going attempts to reduce and eventually eliminate corruption (five ministers resigned last year following charges). Crime is still a factor in the major cities and 25% of the population live in the notorious favelas, or shanty towns. Export Development Canada (www.edc.ca) notes that international traders and investors also face “foreign exchange controls, weak regulations and cumbersome bureaucracy.”

The World Bank estimates it takes 120 days for permission to start up a business, which is worse than in Burkino Faso or Nigeria, although in fairness it must be said the governHow to make them part of the company DNA ment is trying to improve this with a new “sole business owner” program (known as Eirelis). In terms of general “ease of doing business” the country ranks 126th out of 183

BY BRETT WILLS countries. It rates better than average on the availability of electricity and the protection of investors, but worse in the obtaining of construction permits. anufacturers that embark on the journey to greater sustainability must embed it in the

A

>> Green Manufacturing Embedding sustainability gains

Canada’s market plan Brazil has a highly diversified industrial economy and in some ways is similar to Canada with an emphasis on resource industries (with rising prices), mining and agriculture as well as manufacturing. It also has strong and expanding technical and service industries, and arguably the most sophisticated science and technological innovation systems in Latin America. Recent Canadian exports to Brazil were about $2.6 billion, and foreign direct investment currently totals about $9.7 billion.

Canada has a market plan for Brazil (find details on www.international.gc.ca) concentrating on these key sectors: ICT (largest Latin American market after Mexico); clean technologies ($90 billion market in 2009); aerospace (Canada seen as cost-effective equipment supplier); infrastructure (World Cup and Olympics again); life sciences (among the largest in the world); and mining, oil and gas. Reports are available on most of these sectors.

Canada and Brazil have a framework agreement for cooperation in science, technology and innovation, with special concentration on renewable energy, ICT and biotech.

Brazil, a member of the WTO, OECD and OAS, and Mercosur, has agreements with many countries to facilitate trade. However, The Economist describes it as potentially “the world’s most creative economy” (good or bad?) and held a major conference on the subject in Rio in May. They report on a discussion with former president Cardoso who said that Brazilians cherish flexibility (jeitinho) and create institutions only to disobey them; and they generally believe in a sharing of “goodies” which contributes to embedded corruption (more at www.economist.com).

As always, Canadians who wish to be successful need to establish a strong local presence with trustworthy and knowledgeable partners, whether for a trading relationship

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company DNA, but doing so is a challenge. Typically there are there are three “stages” that organizations will experience: • Centralized. One or a few advocates lead the way. As measurable benefits in cost savings are realized through areas such as energy conservation and waste diversion, others take notice. This sets the stage for spreading the word to other departments and divisions.

• Integrated. Leaders are developed outside of the sustainability core and departments or divisions begin to track and report progress towards measurable goals. Employee awareness and engagement begins to increase as sustainability measures and practices find their way into policies and procedures. Measurable benefits increase and senior executives begin to realize sustainability is not simply an initiative, but a strategy for success.

• Embedded. Sustainability becomes synonomous with the organization’s vision. Everyone has a role to play as sustainability becomes the way things are done each day.

Although this seems like a logical progression, getting through these stages requires some focused effort. Here are some tips: • Assign responsibility for sustainability at the highest level of the organization.

• Ensure a sound framework and longer term strategy is in place and well communicated.

• Develop a set of KPI’s that measure progress and begin to tie performance to executive compensation.

• Add sustainability to existing policies and procedures and to performance management programs.

• Align sustainability to existing business objectives.

• Engage stakeholders to ensure efforts are properly focused, prioritized and aligned.

• Publicly disclose goals and report on progress.

Brett Wills is the director of the Green Enterprise Movement and a senior consultant with High Performance Solutions in Cambridge, Ont. E-mail bwills@hpsinc.ca.

July/August 2012

12-07-31 1:35 PM

R&D << Innovations

>> Connectedness

Making the innovation connection Blending applied and pure R&D A new balance between the two is necessary to protect Canada’s standard of living.

BY PETER FRISE

GM's 2013 1LE Camaro, assemled in Oshawa, Ont. PHOTO: GM

GM invests

$850M in Oshawa R&D GETS A BOOST BUT FEW SHORT-TERM JOB BENEFITS GM cites long-term benefits to the company and the Canadian automotive sector.

BY DAN ILIKA

G

M Canada’s $850-million research and development (R&D) investment looks good on paper but lacks the punch that will have an immediate impact on the industry, according to analysts.

The reworked Oshawa, Ont.-based manufacturer announced the investment in light-weighting materials, mechatronics, software and communications R&D, which it says will provide long-term benefits not only to GM, but the Canadian auto sector.

Coming on the heels of Toyota’s planned $100-million investment in expanding Lexus production at the company’s Cambridge, Ont. assembly plant and creating approximately 400 jobs, GM’s announcement delivers on bailout promises but lacks the tangible content of its Japanese rival’s announcement, according to one industry expert. “[Toyota] said that they were spending $100-million at their facility to create an additional 400 jobs, so it’s much more tangible in that sense,” says Carlos Gomes, senior economist with Scotiabank. “The funds are obviously much greater that are being invested by General Motors but it’s all in terms of

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future research.”

The investment – set to roll out through at least 2016 – follows the Canadian and Ontario governments’ more than $10-billion auto sector bailout in 2009 as GM struggled to keep its head above water during the recession.

Although the auto industry appears to be on the rebound, Canada is coming up short on new investment and jobs, another analyst says she doesn’t anticipate an immediate impact on the working man in the short term.

Act of kindness “It’s good for GM in Canada from a white collar perspective because at this point the announcement doesn’t have anything to do with the manufacturing processes that are going on in Canada right now,” says Tracy Handler, senior analyst specializing in North American auto production with IHS. She suggests the investment can be viewed as an act of kindliness, in a sense, as GM looks to continue its restructuring and figure out how much of a role Canada will play in the company’s future.

“Right now I think that this announcement of at least putting some money into Canada in R&D is partially for goodwill. GM definitely needs Canada long-term but probably in a smaller footprint than they’ve had over the past few years.”

Looking to the future, the investment does boast benefits, but Gomes said it lacks the palpable

results to make a big splash.

“I think longer-term it does bring some advantages because they’re continuing to develop their expertise in technology [such as] lightweight materials,” says Gomes.

“There will be benefits but the only issue is that there isn’t anything that’s concrete in terms of possible implications for the industry.”

The biggest problem facing the automaker, according to Handler, is its storied history of building big vehicles for a market looking to get smaller.

“The cars sold here are getting smaller and it has always been hard for GM to build small cars in North America,” she says. “As that footprint in their car size gets smaller they really have to look at where they can build the small car profitably.”

But with government mandates on fuel efficiency coming into play, Gomes says the investment is a step in the right direction for GM and the Canadian industry. “The reality is that with the new mandates that are being put on the industry by government to improve fuel efficiency, the additional use of light-weight products is going to become increasingly important as we go forward.”

Dan Ilika is an online reporter with CanadianManufacturing. com. E-mail dilika@canadianmanufacturing.com.

Comments? E-mail jterrett@ plant.ca.

M

ore innovation is needed in Canada’s auto sector. The industry can’t provide all of the new knowledge needed to remain competitive, particularly in the large domestically owned auto parts segment, which employs more than 100,000 Canadians.

Both applied and pure research, or connectedness is necessary. Countries such as the US, Germany and Scandinavia demonstrate how strong and sustained investment in economically strategic, applied research helps to keep their industries at the forefront of technology and product development, while helping to provide employment and a high quality of life for their citizens.

The latest competitiveness rankings by the World Economic Forum indicate that Canada has dropped two places to twelfth overall. Countries outperforming Canada include larger economies such as the US, UK, and Japan but also smaller ones such as Switzerland, Singapore and Finland. Successful countries invest in connected innovation programs, despite strengths or weaknesses and their endowments in natural resources.

Better decision-making Canada would benefit from connecting its innovation assets more closely to the needs of its traded economy, which has not been the norm. This has impaired Canada’s ability to further the innovation agenda. Connectedness encompasses both better decision-making concerning which projects to pursue and better procedures, including those involving human resource and intellectual property, and sustaining the infrastructure that is built.

In 2001, Canada founded the AUTO21 Network of Centres of Excellence (NCE), which launched a period of energetic growth in automotive-related research and connectedness in the university sector. AUTO21 has built a strong community of more than 500 university researchers and 1,900 graduate students. This community works with more than 300 companies and other organizations to help them meet their research needs and strengthen Canada’s economy.

This connectedness has engendered strong financial and moral support for the network. Industry has invested more than $51 million in AUTO21 beyond the federal grant of $63 million, plus countless hours of senior executive time serving on the board of directors and other committees – despite suffering through the worst recession in more than 75 years.

The result is more than 230 patents, licenses and copyright agreements between industry and academe for the products of the research program – in addition to young R&D experts whose skills will help secure the jobs of Canadians in product development and manufacturing.

Government and the academic leaders of the organizations that founded AUTO21 have found connectedness. It shows that the public research sector in Canada can interact efficiently with the traded economy in a transparent and highly effective fashion.

Peter Frise is the scientific director and CEO of the AUTO21 Network of Centres of Excellence. For more information, visit www.auto21.ca Comments? E-mail jterrett@plant.ca.

PLANT 21

12-07-31 1:35 PM

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Quality – Innovation – Trust www.plantmagazine.ca/rsc/ 112

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Industry IT << Technology

>> Supply Lines A NEW CONNECTION Harting Inc. and Digi-Key Corp. have created a new sales channel that makes it easier for Canadian engineers to acquire the parts they need.

Electronic connectors are being increasingly used in rugged applications, while requirements also demand smaller package sizes and more efficient assembly processes. Harting, a manufacturer of electronic connectors with a Canadian office in Markham, Ont., will have a stronger online presence worldwide with 24/7 access to its products through Digi-Key’s web foundation.

Digi-Key makes electronic components in Thief River Falls, Minn.

ENHANCING TTC SECURITY Samco's new ERP system will help it meet aggressive revenue targets.

New ERP drives

GROWTH

SAMCO UPGRADES TECHNOLOGY TO DIVERSIFY SALES AX 2012 is key to supporting the additional orders and expanding sales of rollforming dies, presses and machines beyond the US market.

BY REBECCA REID

W

hen the recession hit a few years ago, Samco Machinery Inc., a Toronto-based manufacturer of dies, presses and machinery for the roll forming industry, decided it had to adapt to changing business conditions and pursue markets beyond the US. At the time, the US accounted for 80% of its business. It needed to diversify, but the family owned company, which grew from a small start-up in 1972, was facing a major obstacle: outdated technology.

About three years ago, management decided to give the old ERP (enterprise resource planning) system the heave-ho.

“It’s done the job but it doesn’t have

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the capabilities like master scheduling or material requirements planning or capacity planning,” reflects Stephen Armstrong, Samco’s chief innovation officer.

“When you scale a business, you have to scale the systems and the processes. You can’t rely on word-of-mouth and throw specs over the wall.”

That meant replacing Infor’s ERP VISUAL with Microsoft Corp.’s Dynamics AX 2012 – an ERP software suite with all the nuts and bolts, such as integrated materials requirement planning (MRP) and customer relationship management (CRM).

Those tools are vital to supporting Samco’s engineer-to-order business.

Starting with 200 square-feet of rented office space 40 years ago, the company now employs 110 people, occupies an 80,000 square-foot facility with two assembly areas, a CNC shop and tool room, and has operations in India and Europe. It supplies such industries as building and construction, automotive and HVAC, and recently expanded in the solar power market with its new division, Samco Solar.

Looking ahead, Samco is working

PHOTO: SAMCO

on reaching $100 million in revenue, continuing to penetrate the solar power industry, and building a new rotary punch machine with speeds of 300 to 500 feet per minute.

The new ERP system is key to supporting all the additional orders and complexities, says Armstrong. It connects data from various departments such as sales, inventory and customer service, for better visibility and planning. It also integrates with Microsoft Office, creating a single system with reduced training costs.

Getting it done

The Toronto Transit Commission needed a bulletproof cashier’s booth at its Union subway station but the installation had to be done overnight to avoid disruptions.

Provincial Partitions Ltd., based in Mississauga, Ont., worked with TTC design staff and a glass supplier to customize its patented System 40 modular components to provide the necessary level of security.

Bulletproof glass.

AX-iom ERP Inc., an IT integration company with offices in Mississauga and Whitby, Ont., was brought in to guide the deployment of the new system.

AX-iom and Samco staff realized ERP systems couldn’t be implemented all at once. Each module had to be brought online incrementally to reduce the impact on day-to-day business.

AX-iom used Microsoft’s SureStep Methodology, a formal implementation procedure covering all the stages from initial analysis to go-live.

The CRM capabilities were implemented first because the materials planning and production modules require a lot of customization, fine-tuning and training.

Armstrong says problems with those modules at go-live could have shut the factory down.

When the CRM component launched in January, the company cancelled its subscription to Salesforce.com, a cloudbased CRM service, to take advantage of the benefits of having its client data tied in with its new ERP system.

Switching to Dynamics required Samco to bring its client data back in-house.

PHOTO: PROVINCIAL PARTITIONS

In addition to bulletproof panes, armour plate was installed and concealed within the wall cavities of the panels. Double door interlock access provided a secure entry, while drop safes were built into the stainless steel counters.

Pass-through service wickets with an electronic intercom and video surveillance provided the final level of security.

BENCHMARK PERFORMANCE Power transmission companies can gauge their performance against a new report from the Power Transmission Distributors Association (PTDA).

The Chicago-based group representing companies in the US and Canada has compiled operational, financial and productivity data from members for benchmarking against typical and high-profit firms within industry.

The 2012 PT Distributor Performance Report notes, for example, that high-profit companies had sales of $35.8 million in 2011 and a pre-tax profit of 6.8% compared to 3.4% for typical firms.

For price information visit www.ptda. org/PerformanceReport.

Continued on page 24

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CIEN

>> Product Focus

New software

Managing Energy

Continued from page 23

One of the most time consuming phases of the project was cleaning the data. Now the data resides on a Microsoft SQL Server, which integrates seamlessly with Dynamics.

From a change management point of view, Armstrong says the biggest challenge to the first module was convincing the employees to accept the new software.

“Overall implementation [of CRM module] was six months and that had to do with our readiness. We did not want to go live until the people were fully engaged.”

After initial user training, Samco ran half-day workshops each week and asked employees to provide critiques of the procedures that were written by AX-iom.

“We put the ownership of the use of the system in the people’s hands,” he says.

The next phase of the implementation involves the operations and production components, which include building materials, project management and materials requirement planning (MRP).

But Armstrong says they aren’t going to roll all the functionality out at once. One of the biggest benefits of Dynamics is it can be programmed to emulate what you’re already doing and then gradually add the extra functionality, making it easier for employees to adapt.

The operations and production components were expected to be up and running in June.

Overall, the project will have taken a year, but the benefits are already apparent. The CRM module includes estimating and quoting tools that reduce the manual effort required to respond to RFQs, helping the company win more business.

Customer and sales data is integrated with engineering and product development, leading to better visibility for planning and forecasting.

With the IT systems up to date, so is the company’s confidence. As orders come in from new markets and customers, managers know they’ve got a back end that will ensure they keep up – and continue to grow.

MAGNET MOTORS HIKE EFFICIENCY NovaTorque Inc.’s next generation 3 hp and 5 hp PremiumPlus+ brushless permanent magnet motors deliver high efficiency.

The Gen2.0, driven by variable frequency drives, boasts motor-only rated point efficiencies of 93% and 92% respectively, exceeding the levels that can be achieved with induction motors (88.5% and 90%).

The manufacturer, based in Freemont, Calif., says the moFlux-focusing design. tors maintain their high efficiency over a much wider speed and load range. For example, in a variable speed, variable torque application such as a fan or pump, it says a 50% reduction in speed results in a 75% reduction in load. At that reduced load, NovaTorque motors will maintain efficiency of approximately 91% compared to 80% for an induction motor.

Thanks to its patented flux-focusing stator and rotor hub geometry, the motor produces this performance with an all-ferrite (versus expensive rare earth) magnet design.

The motors are packaged in standard NEMA frame sizes and mounting dimensions for easy substitution and are compatible with variable frequency drives from most leading manufacturers. www.novatorque.com

APP CHECKS FORKLIFT EFFICIENCY Is your forklift fleet fuel-efficient?

Toyota Material Handling USA Inc. has an app that will provide the answer.

Its Toyota Forklift Fuel Efficiency Calculator is available for use on iPhones, smartphones, iPads and Android tablets.

Enter your detailed material handling specifications and the calculator measures fuel efficiency, run times per cycle and speed advantage per cycle. The Irvine, Calif.-based forklift manufacturer says the app then breaks out the user specs into the following options:

Comments? E-mail jterrett@plant.ca.

Rod diameter 30% larger to eliminate part deflection

Exclusive safety clutch design available to prevent damage to part, fixture, or operator

Viton wiper is standard (metal wiper optional)

Reinforced swivel mechanism with 2 or 3 helix paths depending on size for longer life

Over 1000 different standard sizes and styles available with clamping forces from 130 lb. to 8265 lb. stroke up to 2".

Special stroke and clamping forces available upon request.

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LUXADD’s Express T5 Retrofit Kit replaces standard T12 and T8 fluorescent light tubes to save up to 73% in lighting energy costs.

Lighting is the single largest user of electricity in buildings.

The Miami, Fla. lighting manufacturer says switching to T5 reduces a company’s carbon footprint up to 60%.

The company claims a oneyear ROI based on labour and energy savings followed by annual savings from reduce lighting energy bills of to 73%, plus a/c savings of up to 15%. www.luxadd.com www.plantmagazine.ca/rsc/ 3

www.plantmagazine.ca/rsc/ 1

Rebecca Reid is a writer and editor with the Business Information Group and a regular contributor to Canadian Manufacting.com. E-mail rreid@ canadianmanufacturing.com.

Why Carr Lane Roemheld Swing Clamps?

UPGRADE FLUORESCENTS FOR SAVINGS

Measures user-variables.

Fuel gallons per hour per unit • Fuel costs per hour, day, week and year per unit • Fuel efficiency improvement • Fuel cost savings per unit per year • Fleet fuel cost savings per year Run time improvement per LPG tank • Run time per tank • Run time per tank improvement (minutes) Speed advantage per cycle Average time per cycle • Performance advantage – each cycle • Average Cycles per work day (cycles) • Performance advantage (additional cycles per day) • Performance advantage per work day From there tally your potential fleet fuel savings, plus productivity and efficiency gains. www.toyotaforklift.com/calculator/

MORE INFO WITH NEW MULTI-DISPLAYS Matrox Graphics Inc. and Wyse Technology, the cloud technology firm based in San Jose, Calif., have teamed up to deliver a broader range of energy-efficient, multi-display configurations.

Matrox’s Epica TC20+ dual-monitor add-in boards and Epica graphics cards enhance functionality of the new Wyse Z90DE7 thin client.

Matrox, a Montreal manufacturer of graphics solutions for manufacturing, says the new co-validated product provides users with an optimal on-screen workspace experience for gains in productivity and More real-time data. workspace real estate.

The Matrox Epica graphics work well with thin clients based on their energy efficiency, low thermal properties, passive (fanless) cooling, and PCIe bus interface design.

The Epica TC20+ supports two displays at resolutions up to 1,920 x 1,200 (digital) and 2,048 x 1,536 (analogue) per output, and up to four VGA displays at resolutions of up to 1,920 x 1,200 via an optional quad upgrade cable.

Additionally, the Epica TC48 supports up to four DisplayPort monitors to achieve resolutions of up to 1,920 x 1,200 or 2,048 x 1,152 per display.

Combined with the Wyse Z90DE7, Epica boards deliver a multi-display, cloud client computing platform capable of presenting much more information across more displays for market applications such as process control that require larger volumes of real-time information. www.matrox.com www.plantmagazine.ca/rsc/ 4

MONITOR HIGH AC CURRENT LOADS handling blowers, pumps, NK Technologies’ one-piece ATS crushers and other current sensing switch large loads with a single and transducer combines self-contained current a limit alarm with an switch. A built-in anaanalogue output signal logue signal helps users transducer to monitor identify bearing wear produced or consumed and other mechanical AC current up to 1,200 A, problems before they while magnetically isoresult in unplanned lating outputs and inputs and costly downtime. to maximize safety.

NK Technologies A patent-pending rotary is a manufacturer switch makes it easy to set the trip point. DIN rail mount- Isolates between the primary of current sensing technologies based in ing simplifies installation and circuit and controls.

San Jose, Calif. provides a secure mount that’s www.nktechnologies.com resistant to conductor movement.

Use the ATS series to monitor air www.plantmagazine.ca/rsc/ 5

www.plantmagazine.ca/rsc/ 2

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July/August 2012

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Products and Equipment << Technology MATERIAL HANDLING

Optimizes throughput.

FEEDER OPTIMIZES BULK DENSITY The BT blow-through feeder and airlock from ACS Valves optimize bulk density and throughput of hard-to-convey materials such as fine powders and flakes that, in high-pressure pneumatic conveying applications, can over-aerate and reduce material feed efficiency.

The product decreases excess aeration during conveying with an integrated vent port on the return side of the valve housing that automatically vents air leakage.

The BT eight-vane rotary valve reduces air leakage, maximizing flow through the rotor pocket to improve material pocket release. The minimal air leakage, and resulting low, effective pressure drop optimizes material-flow density, improves material conveying efficiency, and reduces total compressed air consumption.

The strength of the valve housing optimizes service in high temperature applications and those requiring pressure differentials up to 20 psig. Available in cast iron or stainless steel in 8- or 10-in. round flange sizes, the housings are CNC-machined to extend duty cycles by eliminating axial shaft movement, seal leakage and shortened bearing life.

ACS Valves, based in Caledonia, Ont., is a manufacturer of rotary valves. www.acsvalves.com www.plantmagazine.ca/rsc/ 6

FILLER SEALS DUST-TIGHT Dispense bulk solid materials into boxes, drums and bulk bags by weight with Flexicon’s multi-purpose filler, which includes a fill head that seals dust-tight

against the inlet spout of bulk bags or connects to transition adapters that seal against open boxes or drums.

The manufacturer of bulk handling equipment based in Bethlehem, Pa. says its Twin-Centerpost frame maximizes strength and improves accessibility to the fill head. It’s mounted on load cells tied into a PLC that controls upstream devices to fill containers at a high rate, and then at dribble-feed rate to maximize the number of containers filled per hour.

An automated vibratory system raises and vibrates the deck to de-aerate and densify material, stabilizing the container.

Galvanized chassis provides protection.

The chassis enhancements are suited for moving materials in and out of cold storage facilities; chemical and salt and brine industries; or in areas where frequent washdown is required to remove contaminants.

Toyota, based in Irvine, Calif., manufactures lift trucks, automated guided vehicles and tow tractors. www.toyotaforklift.ca

diameter. 55LT hose meets or exceeds SAE 100R7 specifications.

Parflex, a division of Parker Hannifin Corp. and a manufacturer of hose and tubing based in Ravenna, Ohio, says its 53DM, 55LT and H6 hoses are made with copolyester materials that allow for a -70 degree F low temperature rating. It maintains chemical compatibility with hydraulic fluids so they can be used in cold storage or refrigerated areas.

www.plantmagazine.ca/rsc/ 8

HOSE & TUBING

Speeds up bulk material handling.

Features include a manual fill head height adjustment that accommodates all popular bag sizes, pneumatically retractable bag hooks, an inflatable connector to seal the bag inlet spout, and a feed chute outlet port for dust-free air displacement during filling. www.flexicon.com

HOSES FOR HARSH ENVIRONMENTS

3,000 psi constant pressure.

Parflex thermoplastic hose is built with a high level of contact strength between the layers of core, braid and jacket for continuous flexing and use in harsh environments.

53DM Duramax exceeds SAE 100R18 with a 3,000 psi constant working pressure and features a smaller outside

The strength member, or braid, is made of high tensile fibres or high tensile brass plated steel wire, while the jacket is produced from a specially formulated material with UV protection for improved weather resistance and wear resistance. www.parker.com www.plantmagazine.ca/rsc/ 9

VIBRATION MOUNTINGS DAMPEN LOAD SHOCK

www.plantmagazine.ca/rsc/ 7

FORKLIFTS HANDLE WET WORK A galvanized chassis protects Toyota Material Handling’s three new 8-Series AC electric pallet (6,000 lb.) and (6,000-8,000 lb.) walkie models, and 7-Series (4,500 lb.) in wet environments.

The pallet trucks have been outfitted with Teflon coated polylube that don’t require lubrication and add strength.

Splashguards deflect debris and moisture from entering the traction motor controller area.

Bell-shaped rubber mountings from Advanced Antivibration Components (AAC) dampen shock and vibration for loads up to 887 kgf (1,956 lbf). The V12Z55M062M mountings are made from natural rubber and styrenePliable and elastic. butadiene rubber compound for pliability and elasticity.

Two of the 12 isolators in the series have a four-hole mounting. The others have a two-hole mount configuration, but all include a welded steel plated nut at the top of the housing.

The company, a distributor of antivibration and shock isolation products based in New Hyde Park, NY, recommends the mountings for applications that include controllers, large pumps, fans, motors, compressors, and other medium load equipment. Durometer hardness ranges are 45 and 60 ±5, with static loads ranging from 196 to 887 kgf (432 to 1,956 lbf). www.vibrationmounts.com www.plantmagazine.ca/rsc/ 10

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with patented technology like EZ-Coil® controlled retraction that safely recoils up to 80% slower than conventional spring driven reels.

Safety Makes $ense

Epoxy Resists Acids, Chlorinated Solvents and Alcohols

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and largest selection of high quality, professional grade hose, cable and safety reels for air, water, oil and electricity in the industry.

Two Component EP41S-1HT • Adhesive/Sealant/Coating/ Potting Compound • 100% reactive • Low viscosity • High bond strength • Electrically insulative

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www.masterbond.com www.plantmagazine.ca/rsc/ 114

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Bleed Trim Starshot_AxiomAD_printready_TEST.pdf 1 7/4/2012 11:55:54 AM

Live

CIEN MATERIAL HANDLING

Optional dolly makes it mobile.

function for text, or a continuous function for graphics.

The motion package also includes a variety of standard homing options for programming in absolute or relative units with linear stage travel lengths ranging from 6 to 18 in.

Miyachi Unitek is a Monrovia, Calif. manufacturer of equipment and systems for resistance welding, laser marking, laser cutting and hot bar reflow soldering and bonding applications. www.miyachiunitek.com

for motorized bases is 1,000 lb. and 500 lb. for the hand-crank base.

A variety of work surfaces includes butcher block, plastic laminate and static dissipative. www.listaintl.com www.plantmagazine.ca/rsc/ 13

www.plantmagazine.ca/rsc/ 12

CABINET ORGANIZES, SECURES TOOLS AND PARTS The AkroBin cabinet from AkroMils is manufactured from 18-gauge steel and includes a three-point lock and powder coated finish to keep tools and parts organized on secure four 100-lb. shelves with a louvered back panel.

The cabinet includes a flushmount handle, while an optional rooftop prevents hazardous items from being stored on top of the cabinet. An optional dolly is available to make the cabinet mobile for various shop floor applications.

The AkroBin measures 36 x 24 x 78 in. and is big enough to hold 138 standard storage bins.

Akro-Mils, a subsidiary of Myers Industries Inc., is a manufacturer of plastic and metal storage products based in Akron, Ohio. www.akro-mils.com www.plantmagazine.ca/rsc/ 11

Linear or rotary motion.

www.plantmagazine.ca/rsc/ 117

Leading Supplier of Dispensing Consumables Ellsworth Adhesives is a full-service distributor and value-added supplier of disposable dispensing components.

• Syringes/Barrels • Tips/Needles • Nozzles

• Bottles • Cups

Adhesives ● Sealants ● Coatings ● Encapsulants ● Tapes ● Dispensing Equipment

1-800-888-0698 www.ellsworth.com

Contact us directly to request a free catalog.

Ask The Glue Doctor™ Live Chats Online.

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LASER MARK TEXT, GRAPHICS ON CYLINDERS MiyachiUnitek Corp.’s LMC1 laser marker motion package enables linear or rotary motion control in up to four axes for cylinder banding and marking text and graphics on cylinders.

Automated serialization, step-andrepeat, or laser marking around a cylinder are programmed using the automation build function. Standard stage sizes for single linear or combined xyz axes range from 6 to 18 in.

Two rotary options are available, while the precision rotary stage is recommended for high-resolution laser marking.

Fully integrated with standard marker software, the LMC1 uses Miyachi Unitek’s automation build list to create customized motion profiles, establish serial communication and set input/output. Event run order is easily adjustable, while rotary marking a cylinder is achieved using a step and repeat

26 PLANT

WORKSTATIONS

Comfortable work environment.

WORKSURFACE RATED AT 750 LB.

For testing and calibration applications.

WORKSTATION OPTIMIZES PRODUCTIVITY Lista International Corp.’s Align adjustable-height workstations raise productivity for applications involving repair, testing, calibration and R&D. The company, a manufacturer of workspace technology based in Burlington, Ont., says the workstations optimize the “reach zone” to reduce fatigue, stress and injuries.

With an adjustable height ranging from 27 to 42 in. (excluding worksurface), the workstations adjust using either a motorized, hand crank or slide-leg base. The motorized base is preset with three height positions. All uprights and components move in relation to the worksurface height. Load capacity

Creform Corp.’s adjustable, heavyduty workstation maintains the ergonomics, flexibility and efficiency necessary to ensure a comfortable work environment.

The unit is made of 42-mm pipe and joints, making it 2 1/2 times stronger than 28-mm pipe while a powered height adjustment system optimizes flexibility and ergonomics.

The workstation base has a 1-in. thick, heavy-duty plastic worksurface rated at 750 lb. and measures 42 x 36 x 30 in. to 42 in.

An electro-hydraulic system lifts up to 1,000 lb. and has a 12-in. stroke that positions the work surface to match an operator’s stature.

An optional 3-memory position switch box allows pre-set surface working height.

The overall height of the base and structure is adjustable between 72 and 84 in.

Creform is a manufacturer of material handling and industrial storage products based in Greer, SC. www.creform.com www.plantmagazine.ca/rsc/ 14

CLAMPS MORE FORCE IN A ONE-TOUCH CLAMP Fixtureworks has expanded its lineup of Imao one-touch clamps by adding compact and mini-sized units with greater clamping force.

They include clamps with rotational or cam handles, swing clamps with torque control, plus retractable clamps with cam or adjustable handles.

Mini swing clamps with a rotating handle provide clamping forces ranging from 247 to 787 lb.; cam handle from 180 to 629 lb.; torque control from 517 to 1,686 lb.; retractable with cam handle, from 150 and 247 lb.; and the swing clamp with adjustable handle, from 449 or 1,348 lb.

These miniature clamps swing into position and clamp straight down onto the workpiece for direct downward pressure. The arm swings completely out of the way to allow for easy loading and unloading and the adjustable handle allows for greater clamping stroke and force, and tightening in limited space.

The components (except handle knobs) are produced from high quality steel, quenched, tempered Swings into position. and finished with black oxide.

Fixtureworks is a Fraser, Mich. supplier of working holding technologies. www.fixtureworks.net www.plantmagazine.ca/rsc/ 15

July/August 2012

12-08-02 11:43 AM

FOR BUSINESS

“Thanks to the new system upgrades, we’re seeing significant savings in energy use.”

Douglas Dittburner Energy Manager, Cadbury

Saving energy makes sense – business sense.

Get up to 70% off project costs, including: • Engineering studies • On-site energy manager • Key system upgrades • Monitoring and targeting

Energy efficiency incentives from your local electric utility are available for industrial plants like yours. Whether you’re in the food and beverage, automotive or plastics and packaging industry, you may be covered for up to 70% of your project costs, including engineering studies and process and systems upgrades to help lower operating costs. Big or small, every Ontario business can benefit from energy efficiency.

Contact your local electric utility or visit saveonenergy.ca/industrial

Subject to additional terms and conditions found at saveonenergy.ca. Subject to change without notice.

A mark of the Province of Ontario protected under Canadian trade-mark law. Used under licence.

OM Official Marks of the Ontario Power Authority.

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CIEN ADHESIVES VALVE DISPENSES ADHESIVES, SEALANTS Sealant Equipment & Engineering Inc. has come up with new mix-dispense valves that provide lowflow mixing and dispensing of two-component adhesives and sealants such as silicones, epoxies, urethanes and acrylics.

The 2600-093 Micro-Kis MicroKiss valves, which mount to robot tooling, automaHandles two tion fixtures and electric or components. pneumatic valve handles, apply two-part adhesives and sealants for bonding, gasketing, potting and filling processes.

A no-drip design feature integrates carbide ball-end needles with carbide seats for long life dispensing of viscous and abrasive materials.

On-off actuation controls the flow of each fluid component into the mixer providing a more accurate on-ratio mixing of the low-flow materials, especially mix ratios wider than 1 to1.

The valves weigh 1.5 lb., are 1- x 1.8- x 4.9-in. long and rated for high pressure.

They’re double air actuated for four-way pneumatic valve connections and the divorced-design fluid body has fluid inlet ports for Part A and B materials.

Sealant Equipment & Engineering is a Plymouth, Mich. manufacturer of precision fluid dispensing systems and valves. www.sealantequipment.com www.plantmagazine.ca/rsc/ 16

Cures under ultraviolet and visible light.

RAPID BONDING FOR METAL AND PLASTIC SUBSTRATES Dymax Corp.’s Ultra Light-Weld 3013 adhesive bonds rapidly to a wide variety of plastic and metal substrates in appliance

assembly, bond joint and sealing, plastic window bonding and plastic assembly.

The resilient, low-viscosity, moistureresistant adhesive dispenses easily for precise quantity and placement, and fluoresces blue under low-intensity “black” light (365 nm), allowing for in-line quality control using optical scanners. This solvent-free adhesive cures in seconds upon exposure to ultraviolet and visible light to increase production speed and lower processing costs.

Dymax, a developer of adhesive, coating and light-curing systems for industrial applications based in Torrington, Conn., recommends the adhesive for applications that require the bonding of dissimilar materials, such as transparent or translucent acrylic, metal, polycarbonate, PVC alloys, ABS, polyurethane and polystyrene. www.dymax.com www.plantmagazine.ca/rsc/ 17

Festo’s VUVG valves enable vacuum operations, high flow rates and extended pressure ranges of up to 10 bar.

Two-pressure operation.

The cartridge principle enables a separated two-pressure operation to avoid overlapping between air ducts. A variable electrical connection reduces the complexity of ordering and warehousing for users that require valves with variable electrics.

Festo, a developer of automation technologies with Canadian operations in Mississauga, Ont., says the valves install easily, while multiple pressure zones can be set up in the valve manifold.

VUVG valves are available with flow rates of 100, 220, 380 and 750 l/min. www.festo.ca/vuvg www.plantmagazine.ca/rsc/ 23

develops a tensile strength of 1,500 psi and an elongation exceeding 150% at 75 degrees F once it’s cured. It bonds to a variety of substrates including, metals, wood, concrete, glass, vulcanized rubbers and many plastics, without any solvents or diluents. www.masterbond.com

MACHINING

Cures at room temperature.

ADHESIVE RESISTS THERMAL CYCLING Master Bond’s EP30D-10 elastomer system delivers the strength, flexibility, performance and adhesive qualities associated with epoxies, but with the toughness and abrasion resistance of polyurethanes.

Used for cryogenic applications, the twocomponent adhesive is resistant to thermal cycling and chemicals including water, inorganic salts, acids and alkalis.

With a temperature range of up to 220 degrees F, EP30D-10 cures at room temperature, or more rapidly at elevated temperatures. Parts more than an inch thick can be cast and cured without undue exothermic development. Electrical insulation properties and optical clarity make the adhesive ideal for casting and encapsulation applications in the electronic, aerospace, OEM, MRO and optical industries.

The company, a developer of adhesive and sealants for industrial applications based in Hackensack, NJ, says the system

STEAM TRAPS BOOST EFFICIENCY TLV Corp.’s PowerDyne P46SRN thermodynamic stainless steel steam traps handle the same capacity, pressure and temperature specs as cast steel versions, but boost efficiency, keep maintenance costs low and are durable enough to handle installation in steam mains, tracers and coils.

It has a replaceable module for servicing without removing the trap body from the installation. The traps also include a large, built-in screen and optional BD2 blowdown valve to simplify maintenance.

TLV, a manufacturer of steam engineering components based in Charlotte, NC, says an air jacket insulates the pressure chamber to reduce no-load cycling, and minimizes the wear of the disc and valve seat.

Better uptime reliability increases steam tolerance, and a lapped disc provides a steam-tight seal without air binding.

Handles the www.tlv.com same capacity as cast versions. www.plantmagazine.ca/rsc/ 22

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VALVES AVOID AIR-DUCT OVERLAPPING

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STEAM TRAPS

28 PLANT

VALVES

Cuts materials to light depth.

INSERTS HANDLES CHALLENGING MATERIALS Walter USA’s RF8 profiling insert’s chip control and precision-ground sharp cutting edge eases handling with difficult to machine materials where a light depth of cut is required.

They also reduce cutting forces on thin or unstable components, undercutting up to 230 degrees with a high level of surface quality.

The CF6 cutting tool insert geometry also has light cutting forces and is suitable for small parts and thin wall tubes.

A 1.5-mm insert is combined with a 10-degree lead angle to reduce pip and burr formation.

Additional toolholders in the grooving system include the G1011 grooving and cutoff toolholders with 1/2-in. or 5/8-in. shanks, and 1 in. shank tools with increased depth of cut up to 1.26 in.; the G1111 face grooving tool holders for face groove diameters from 1.3-in. to 19.7-in.; and G1511 and G1521 tools for snap-ring and O-ring grooves, capable of radial and face grooving operations for depths up to 0.236 in.

Walter USA is a supplier of cutting tools based in Waukesha, Wis. www.walter-tools.com www.plantmagazine.ca/rsc/ 19

LUBRICANT EASES STEEL MACHINING MAG’s CYCLO COOL 4000 and 4100 metalworking fluids are formulated for machining proprietary stainless and heat-treated steels used in forgings for hydraulic fracturing (fracking) pump parts and similar equipment for the oil and gas industry.

Fracking pumps have to handle intense pressures of 10,000 to 30,000 psi, so they

Handles extreme heat.

are machined from heavy blocks of stainless and alloy steels.

The metalworking fluids are formulated for extreme high-heat applications, such as deep-hole drilling, tapping and hogging of these tough-to-cut metals.

The lubricants can also be used on aluminum, bronze, brass and copper.

The lubricant contains a combination of extreme pressure additives, esters and mineral oil for physical lubricity needed in severe-duty applications. It’s made from a blend of sulphurized and chlorinated extreme pressure additives for heavy machining and grinding of ferrous and non-ferrous material, including titanium. It’s also low foaming and has high stability for applications where hard water build-up is an issue.

MAG is a manufacturer of machine tools and systems with Canadian operations based in Mississauga, Ont. www.mag-ias.com www.plantmagazine.ca/rsc/ 20

NOZZLES SPRAY NOZZLES EASE GAS COOLING Lechler Inc.’s 403 and 405 nozzles handle jobs such as chemical reactor cleaning, gas cooling and desuperheating where high- and medium-capacity spray- Keeps spray pattern ing power is needed. uniform.

Use the 405 nozzles with a range from 30 to 95 gpm at 40 psi for medium capacity spraying, and the 403 nozzles for higher capacity spraying, ranging from 120 to 375 gpm at 40 psi.

The internal vane design creates a uniform spray pattern over a wide pressure range.

Both models are made with 316 stainless steel; 405 nozzles are also available in brass.

Lechler is a manufacturer of spray nozzles based in St. Charles, Ill. www.lechlerusa.com

26

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July/August 2012

12-07-31 1:37 PM

Keep How your about eye our on the menu finish, not onofthe choices: clock. Our rent,products lease are deliveredoron purchase? time, every time.

Our microfibre Clean is always towels six times withinabsorb reach with our as much reusable shop towels. as cotton.

Underneath the coveralls, our industrial shirts keep you clean and comfortable, so you can keep your mind on the clear coat.

Quality, performance How about our menu and of protection.

Everything choices: rent, lease you need in aorcar... and a uniform. purchase?

You’re in clean Custom floor mats – hands with our light the view from down and heavy-duty here is clean too. disposable gloves.

Custom floor mats – Our comfortable the view from downdo twill-blend coveralls herethat: is clean just covertoo. all.

Clean is in the Details For a clean you can count on, from people you can count on, go to Canadianuniform.com or even better, call us at 1-855-780-0922.

People You Can Count On.

www.plantmagazine.ca/rsc/ 120

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CIEN >> Infrared Technology

Remote double-duty monitoring

New FLIR IR cameras cover inspection and security

T

he world of industrial monitoring is about to feel some heat. Two new remote, automated infrared camera systems from FLIR Systems do double duty: they cover thermal events and perimeter security.

The company, which designs, manufactures and supports thermal imaging systems and subsystems for industrial and other uses, says its A310f and A310pt products are the first to plug and play into existing CCTV networks and IPTV security networks.

“It’s a pretty big thing in the sense you don’t have to buy two different systems to work on a single site,” says Rob Milner, automation manager at FLIR Systems in Burlington, Ont. While providing ongoing security monitoring, the inspection intervals can be set as required and at optimum times. Milner cites as an example electrical substations, where inspections would typically be done at night.

“Getting a crew out to do it at each location would be costly and a logistical challenge. The new cameras and system eliminate the issue entirely.”

On the security side, Milner says with the cost of infrared cameras coming down, high-value areas (such as nuclear plants) are switching to them, but they would also be useful in other environments.

“They eliminate lighting, which lowers energy use; they don’t interfere with animal migration; and they work in low visibility conditions (such as fog),” says Milner.

The cameras, deployed singly or in multiple configurations, use standard ethernet hardware and software protocols, and are capable of covering vast areas.

Say a Toronto operator is monitoring several electrical substations. At one site, in Northern Ontario, cameras are deployed and programmed to perform step-by-step inspections of up to 20 pieces of equipment within a particular field view and set off an alarm when temperatures exceed set levels. When the inspection is done, the cameras monitor the substation perimeter. Specific algorithms allow operators to tell if a person is walk-

Uptime, all the time

ing toward or away from a fence.

Or the cameras could detect a fence rattle, and if need be, the operator could dispatch security personnel.

The A310pt pan/tilt unit is designed for catastrophic event prevention in applications that include electrical substation monitoring, fire prevention for coal or wood chip piles, and flare stack monitoring.

The units allow operators to hone in on FLIR’s A310pt, thermal image of a smoke stack (left) and wood chips PHOTO: FLIR specific points of interest, and they provide fully programmable scan patterns, radar slew-to-cue, and slew-to-alarm functionality.

The A310f is a fix-mounted version of the A310 camera that’s protected by an IP66 environmental housing.

Measurements, alarming and user acknowledgements are time-stamped and stored for easy data sharing. And operators receive analysis results, IR images plus other info as a scheduled or alarm-triggered e-mail.

Milner says the cameras are also useful for indoor applications such as in a large warehouse where materials that could spontaneously combust are an issue, or monitoring large conveyor systems used in steel mills, or wood chips at lumber, pulp and paper mills. There’s also “significant potential” for use in oil fields monitoring drill rigs for hot bearings during operation.

The 310pt is priced at about $30,000; the 310f at $12,000. www.FLIR.com

STONE TUCKER INSTRUMENTS INC.

®

SKINTOP cable glands can stop electrical failures before they stop your production lines.

PosiTector®6000 COATING THICKNESS GAGES

Keep Running with LAPP SKINTOP ® glands protect your cables.

• • • •

Seals from liquid and dust Vibration and impact resistant High pull-out strength Effective EMC options

View our SKINTOP ® installation video on our automotive resource center at www.lappusa.com/canada/automotive.

Scan, click, or call.

877-799-5277

www.plantmagazine.ca/rsc/ 121

30 PLANT

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• Universal gauge body – all PosiTector 6000 SPG and DPM probes, easily converts from a dew point meter to a coating thickness gauge or surface profile gauge • No software required - Browse gauge readings and charts using your computer's file explorer, or upload to PosiTector.net • Two models - Standard and Advanced. Standard models now have more features • An ergonomic design that's rugged and weatherproof

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July/August 2012

12-07-31 1:39 PM

Products and Equipment << Technology

WAGO Corp.’s DIN-rail mount 288 signal noise filter removes Removes power disturbances from disturbances. incoming power for industrial control panels.

The 288-2003 pairs a 10 A/120 VAC receptacle, common mode choke and WAGO 740 Series PCB terminal blocks on a 1.75 in.-wide open assembly.

Integrated in a cabinet, the unit provides EMI suppression to clean power signals for sensitive controllers or electronics such as data recorders.

CAGE CLAMP spring pressure connection technology and 740 terminal blocks ensure reliability within a 0- to 40-degree C operation range. All terminations are maintenance-free, resisting both vibrations and current-induced thermal cycling.

WAGO, based in Germantown, Wis., is a manufacturer of spring pressure connection technologies. www.wago.us www.plantmagazine.ca/rsc/ 24

www.plantmagazine.ca/rsc/ 25

HEATSINKS KEEP EQUIPMENT COOL Ohmite Manufacturing Co.’s C-Series heatsinks deliver high power density for small (1U or 2U) electronic packaging with forced convection cooling. Assembly operation is tool and fixture free, it covers a large surface area and supports most resistor package sizes from TO-126 to TO-264.

The company, a provider of thermal so-

CONDITIONING BELTS RESIST LOADING CGW-Camel surface conditioning belts work clean, finish, blend and debur in wet or dry applications.

The belts are made with a wide-open structure that resists loading and run coolly. They also provide a linear grain scratch pattern for blending stainless steel welds to prevent gouging and undercutting.

The grinding wheels are available in two styles of backings, X-flex and low stretch. X-flex belts, for hand held tools, feature greater flexibility to reduce cracking. Low-stretch belts for stationary machines are made for reliable dimension holding.

CGW-Camel, a manufacturer of grinding wheels based in Niles, Ill., offers the belts in brown (coarse) 120, maroon (medium) 180 and blue (very fine) 320 grits. www.cgwcamel.com Linear scratch pattern blends welds. www.plantmagazine.ca/rsc/ 30

Handles 50 amps.

TAKE POWER ON THE ROAD The 91000 portable power distribution unit from Lind Equipment temporarily distributes power on a job site during construction, shut down or maintenance work.

It accepts 50 A of power through six 5-20R 20 A outlets and one L6-30R 30 A outlet that are GFCI and circuit breaker protected. The unit also daisy-chains to multiply power availability.

Lind Equipment, based in Markham, Ont., is a manufacturer of industrial work lighting, portable power, and GFCI products. www.lindequipment.net www.plantmagazine.ca/rsc/ 26

Supports most resistor package sizes.

GRINDING & FINISHING

CONVERTERS BOOST OVER-VOLTAGE PROTECTION MicroPower Direct’s C6000RU family of 60W DC/DC converters have an ultra-wide 4:1 input range with high efficiency and wide temperature operation for use in industrial process equipment, automated test and measurement instrumentation and board level power distribution systems.

Eight models operate from 9 to 36 or 18 to 75 VDC, providing single outputs of 3.3, 5, 12, or 15 VDC. Efficiency is up to 90%, with line/load regulation of ±0.5%, I/O isolation of 1,500 VDC and an output

Manages industrial power systems.

trim capability.

All models have output over voltage protection and continuous short circuit protection (with auto-recovery), each specified for full power operation over -40 to 40 degrees C with the optional heatsink attached (15 VDC output models operate to 50 degrees C).

MicroPower Direct is a provider of power conversion products based in Stoughton, Ma. www.micropowerdirect.com www.plantmagazine.ca/rsc/ 27

PUMPS

Off-gassing prevents vapour lock.

REMOTE TEMPERATURE ALERTWIRELESS

POWER AND CONTROL FOR WASTEWATER

www.plantmagazine.ca/rsc/ 29

• Over 200 systems in-stock for •

Watson-Marlow’s 620 pump for sodium hypochlorites and other harsh chemicals combines power and control for wastewater applications with off-gassing that prevents vapour lock.

It maintains +/- 0.1% accuracy with a control ratio of 1,000,000:1 in hypo metering and flow rates at pumphead speeds that don’t compromise tube life, delivering 50% more flow.

The 620 handles harsh chemicals, such as sodium hypochlorite, ferric chloride, sodium bisulfate and aluminum.

Watson-Marlow is a manufacturer of peristaltic pumping solutions based in Cornwall, UK. www.watson-marlow.com

expedited delivery from 10 kW to 1 MW Mobile platform with theft protection and GPS available on some units PMG excitation ±1% voltage regulation Continuous-duty ratings Remote start contacts Sound attenuated enclosures User friendly controls Service and PM Contracts are also available

If you need optional power cables, electrical distribution panels, or insurance coverage, we have that too.

For more information about getting the power you need so it’s always “Business as Usual”, visit us online at sommersgen.com.

Sommers, Canada’s Power House in Generator Systems

Call us today.

1.800.690.2396 sales@sommersgen.com sommersgen.com Authorized

Distributor

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Prev

Non

Links Somme CMYK; 8 iStock_

www.plantmagazine.ca/rsc/ 28

www.plant.ca

File

Last M

Fonts Myriad Extende

…Get the power you need when you need it NOW!

• • • • • •

SENSORS Type K Thermocouple Transmitters (PST-TCK) from Predictive Sensor Technology alert users via text or e-mail when pre-set targets are reached in temperature-sensitive manufacturing operations.

The PST TC-K, with its four magnetic mounting feet easily attached to monitored equipment, reads and transmits up to three thermocouple inputs. A miniature flat two-pin connector joins a variety of thermocouple sensors that detect a temperature range of -328 to 2,462 degrees F (-200 to 1,350 degrees C). The transmitter’s resolution is 1.8 degrees F (1 degree C) with accuracy of +/- 1%.

A 900 MHz transmitter uses a clear channel assessment approach, so the system works in noisy areas or heavy RF traffic areas with a range of 600 to 1,200 ft. possible without disrupting other communications. Data is typically An e-mail or text is sent transmitted once every 20 seconds, but custom update rates are available. when targets are reached.

Battery voltage and signal strength are reported with every transmission.

Predictive Sensor Technology is a developer of sensor and software applications for plant asset maintenance based in Lynchburg, Ohio. www.psensortech.com

With reliable standby power from Sommers…

Setup

EMI SUPPRESSION CLEANS SIGNALS

lutions and high-current resistors based in Arlington Heights, Ill., says the heatsinks include modified clips to attach smaller devices (TO-126). Additional fins improve cooling.

The integrated camming clip eliminates hand tools or screw holes with maximum repeatability, providing a constant spring force even after repeated assembly/disassembly. www.ohmite.com

Notes

POWER

PLANT 31

12-07-31 1:39 PM

CIEN >> Plantware

as wavelength or end-detection algorithms, reducing set-up time and troubleshooting.

SIMPLIFY DATACENTRE TESTING Tests connectors and patch cords are The first handheld optical time-domain as short as 0.5 m, critical in reflectometer (OTDR) for enterprise fibre testing from virtualized server environments where connections are often Fluke Networks enhances less than 1 m. productivity and improves The Optifiber Pro also fanetwork reliability. cilitates assignment and fibre The OptiFiber Pro OTDR uses testing tracking projects for a smartphone interface that supmultiple users, which improves ports gesture-based commands efficiency and enhances the visand technology that simplifies ibility of project tracking. testing in datacentre environIt comes with Fluke’s Linkments.

Ware management software to Fluke says it also minimizes ease workflow management, the learning curve associated integrate test results and autowith older OTDRs because the matically update units with new simplified datacentre mode Easy-to-use smartsoftware. automates test parameters, such phone interface.

Fluke Canada, based in Mississauga, Ont., is a supplier of network test and monitoring technologies. www.flukecanada.ca

Improve conveyor operation with industrial brush for sealing, guiding, positioning and static control

• Conveyor and material handling • Packaging lines • Machine tooling • Protecting hydraulic mechanisms

Custom industrial brushes in a variety of sizes and configurations For more than 25 years, Sealeze has manufactured the widest variety of custom brush products designed to meet your application needs. Our experienced Sales Representatives, in-house engineering staff and design services are available to help you find the right brush solution for your application.

800.787.7325

e-mail: industrial@sealeze.com www.sealeze.com

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Program manages inventory.

STAY ON TOP OF COUPLING MAINTENANCE A repair and maintenance program from Emerson Automation for its KOP-FLEX couplings, gear spindles and universal joints cuts replacement costs and turnaround time by 50%.

Developed for production-critical applications in paper mills, petrochemical plants and timber processing, the program includes repair, maintenance and custom-tailored inventory management.

The inventory management program includes a usage profile and maintenance of safety-stock inventory at KOP-FLEX service ceneres in the US, Canada and Europe. KOP-FLEX bears the inventory carrying cost and monitors inventory usage and requirements. It also reduces unscheduled downtime by optimizing a change-out schedule based on production needs.

Custom maintenance management programs are based on RMR tracking history of spindles and couplings as they are returned for service. The history includes the number of times a spindle has been returned for inspection/repair and repairs.

Emerson Industrial Automation is a St. Louis, Mo.-based supplier of automation products. www.emersonindustrial.com www.plantmagazine.ca/rsc/ 32

SELF-HEALING FOR WIRELESS NETWORKS Weidmuller’s wireless WI-I/O-9-U2 combines multi I/O gateway functionality with secure and scalable mesh distance communications. Using IPbased addressing, it provides mesh/ self-healing network communications,

32 PLANT

multi-hop repeating and remote over the air re-configuration and diagnostics that integrate easily into an existing wireless or wired network.

The 900 Mhz FHSS device’s one-watt transmit/receive power pushes through many obstacles and covers greater distances than traditional transceivers. Its self-healing network allows for redundancy and distance capabilities, providing a rugged and reliable wireless network, regardless of size.

The gateway combines 128-bit AES encryption with a unique algorithm to provide secure communications and diminishes the chances of potential signal hacking or jamming.

An onboard combination of digital, analogue and pulse IOs easily expand with the standard Wireless mesh WI-I/O-EX modules. multi I/O. A software key upgrades the device for applications that require a Modbus TCP/RTU gateway without rewiring or taking the system out of commission. All programming, updates and upgrades are done over the air or remotely, which eliminates the need for a physical connection to the device.

Thermocouple inputs feed directly into the unit via a simple plug-in adaptor, making an external analogue converter unnecessary.

Weidmuller is a Richmond, Va. manufacturer of power, data and control signals for industrial environments. www.weidmuller.com www.plantmagazine.ca/rsc/ 33

COMPUTER GOES WITH THE DIGITAL FLOW Krohne Inc.’s Summit 8800 digital flow computer supports the latest developments in metering, data handling and system maintenance for a wide variety of custody and process applications.

The modular unit contains a dedicated microprocessor with a quarter-second processing cycle for each of up to six input/output (I/O) board rather than using one shared processor. A removable multi-gigabyte memory card stores data with enough capacity for several years of flow information.

Scroll-and-click navigation and touchscreen control makes operation simple and straightforward. A large, easy to

Enhanced network security.

read colour display with multicolour traffic-light guidance simplifies operations and system maintenance. Network security is enhanced with multiple, redundant ethernet ports while wide-area communication is possible using a range of common protocols.

Security features include configurable multi-level access and authorization, and an optional personalized electronic proximity key. It also separates fiscal and maintenance data to permit remote maintenance without compromising security and data integrity. A full audit trail is provided with personalized login identification information.

Krohne is a manufacturer of measurement instruments based in Peabody, Ma. www.us.krohne.com www.plantmagazine.ca/rsc/ 34

IPC-7220: quiet computing.

COMPUTER LOWERS THE NOISE LEVEL Advantech has lowered the noise level with its 4U IPC-7220 (wallmount) and ACP-4320 (rackmount) quiet industrial computers.

A smart fan adjusts rotation speed while addressing both cooling and noise issues. Complying with the ISO 7779 standard, noise level is dialled down to as low as 35 dBA. The industrial technology company based in Irvine, Calif. says its computers support Intel 2nd generation Core i7 processors and DDR3 memory modules.

Both form factors support Advantech’s industrial-grade ATX and MicroATX motherboards. www.advantech.com www.plantmagazine.ca/rsc/ 35

IPAD APP PROVIDES MOBILE CONTROL Automation is going mobile and GE Intelligent Platforms is too with its ProficyHMI/SCADA iFIX and CIMPLICITY visualization applications.

The industrial tech company based in Charlottesville, Va. has extended the visibility of the control room to just about anywhere you can use an Apple iPad with a new “app.”

Instantly connect to HMI/SCADA runtime projects with full functionality, including third-party application support. GE’s advanced server-based technolo- Extended control insibility. gies provide full operation over the web, and now on the iPad, with no screen conversions. The app, which incorporates the easy-to-use iPad interface, can limit functions via standard runtime project security features.

Visit www.itunes.apple.com and search for “Proficy.”

July/August 2012

12-08-13 7:16 AM

Industrial Literature Reviews CIEN POWER WORKHOLDING

AIR OPERATED CONVEYORS

MOST POPULAR VACUUM CUPS

This 180-page catalogue features state-of-the-art, leakfree hydraulic and pneumatic workholding, including clamps, work supports, cylinders, hydraulic lifting devices, valves, power units, fittings, machine vises, concentric clamping elements, zero point mounting systems and more.

Fully illustrated, with dimensions and specifications. www.clrh.com.

Carr Lane Roemheld Mfg. Co. www.plantmagazine.ca/rsc/ 125

Line Vac™ air operated conveyors are the low cost way to transport complex shapes, bulk solids and waste – with no moving parts or electricity.

The aluminum or Type 303 and 316 stainless steel units produce a vacuum on one end and high output flows on the other with instant response.

New wear resistant models with high conveying rates are also available. www.exair.com/16/164.htm EXAIR Corp. www.plantmagazine.ca/rsc/ 128

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/ 131

Industrial Vacuum Cleaning Systems from VAC-U-MAX

ATN® CONVERTIBLE PROFILE TIMING BELT DESIGN

Dust Collectors Full Line Literature Guide

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/ 126

BRECOflex CO., L.L.C. has developed a patented timing belt concept that allows the customer to rapidly and easily attach, interchange, or reconfigure timing belts in house or in the field with a multitude of profiles using simple hand tools. BRECOflex also offers a full range of accessories including pulleys, clamps, tensioners and slider beds. www.brecoflex.com BRECOflex CO., L.L.C. www.plantmagazine.ca/rsc/ 129

This impressive guide outlines dozens of N.R. Murphy dust collectors, installations, capacities, styles and models. A must for any reference library.

N.R. Murphy Limited has been in business over 65 years and has thousands of satisfied customers. “Dust Collectors are all we do; so get it done right the first time.

Just Ask the Experts.” www. nrmurphy.com N.R. Murphy Ltd. www.plantmagazine.ca/rsc/ 132

Hannay Reels Publishes Complete Stainless Steel Catalogue

NEW EXPANDED LINE OF TANK CLEANING EQUIPMENT

updated catalogue adds hoses and assemblies

Additions to the TankJet® line from Spraying Systems Co. include several high-impact tank cleaners for removal of stubborn residues, motorized units that provide a targeted directional spray and compact nozzles for cleaning small containers. Request Catalogue 15 for complete details on dozens of solutions for tanks up to 100 ft. (30 m) in diameter. www.tankjet.com Spraying Systems Co. www.plantmagazine.ca/rsc/ 130

Reelcraft Industries’ updated Condensed Reel Catalogue showes high quality, industrial grade hose, cord and cable reels. It includes new ratchet latch reels, low profile hose reels, hand crank pressure wash reels, LED light cord reels and triple tap receptacle power cord reels. Hose assemblies and other reel accessories are also featured. www.reelcraft.com Reelcraft Industries www.plantmagazine.ca/rsc/ 133

Hannay Reels offers a fourcolor catalogue featuring information and specifications on its stainless steel models designed for washdown, chemical transfer, potable water, food ingredient transfer and fuel and fire protection. www.hannay.com Hannay Reels www.plantmagazine.ca/rsc/ 127

>> Events IMTS AMT Sept. 10-15, Chicago The International Manufacturing Technology Show (IMTS) sponsored by the Association For Manufacturing Technology (AMT) will feature more than 1,100 exhibitors. Visit www.imts.com/show/info.html.

Best Practices Exchange Mission to Minnesota CME Sept. 23-27, St. Paul and Minneapolis This Innovation Insights event presented by Canadian Manufacturers & Exporters (CME) provides participants with an inside look at best practices, presented by manufacturers. Visit www.cme-mec.ca/english/events/events.html.

Advanced Manufacturing Expo 2012 SME Sept. 25-26, Mississauga, Ont. AmExpo 2012, co-located with AmCon Toronto and presented by the Society of Manufacturing Engineers (SME), showcases advanced technology solutions. Visit www. sme.org.

www.plant.ca

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Index of Advertisers COM 2012 MetSoc Sept.30-Oct. 3, Niagara Falls, Ont. The 51st Annual Conference of Metallurgists hosted by the Metallurgy & Materials Society of CIM (MetSoc) examines how today’s technology achievements answer society’s future aspirations. Symposiums and technical papers will be presented. Visit www.cim.org/ COM2012/index.cfm.

AME Chicago 2012 AME Oct. 15-19, Chicago The Association for Manufacturing Excellence (AME) presents its international lean conference featuring best practices from the world’s best lean practitioners. Visit www. ameconference.org.

FABTECH 2012 SME Nov. 12-14, Las Vegas, Nev. The society of Manufacturing Engineers (SME) showcases metal forming, fabricating, welding and finishing technologies. Visit www.fabtechexpo.com.

RS# Advertiser Page # 117................................... Axium............................................................. 26 120................................... Canadian linen................................................ 29 105, 113........................... Carr lane.................................................. 9 & 24 114................................... Cox Reels....................................................... 25 118................................... Ellsworth Adhesives......................................... 26 103................................... Exair................................................................. 7 112................................... Flir Systems.................................................... 22 108................................... Gordon R Williams........................................... 12 135................................... IPEX.............................................................. IBC 111................................... Kunst............................................................. 16 121................................... Lapp............................................................... 30 109,116............................ MasterBond............................................... 12,25 134................................... National Buyer Seller Forum.............................. 34 101................................... Omega.......................................................... IFC 119................................... OPA................................................................ 27 110................................... Reelcraft......................................................... 16 106................................... Rousseau........................................................ 10 102................................... Schneider Electric.............................................. 5 124................................... Sealeze........................................................... 32 107................................... SEW............................................................... 11 123................................... Sommers........................................................ 31 136-138............................ Spraying Systems..........................................OBC 122................................... Stone Tucker................................................... 30 104................................... UBM Canon....................................................... 8 115................................... Vi-Cas............................................................ 25 PLANT 33

12-08-13 7:16 AM

ad industria

Departments

>> Postscript

Products get better, services get worse Replacing ‘good enough’ tolerances with loss functions “helped drive the quality revolution… ”

BY ROBERT GERST

R

emember when getting a 100,000 miles (161,000 kilometres) out of your car was considered a miracle?

Lemons were the norm and avoiding them took all the skill of purchasing a winning lottery ticket.

Today 100,000 miles doesn’t excite anyone. Cars are built better. So are most engineered products. And airplanes are not only safer, they’re way more comfortable than they were 40 years ago.

But is booking your flight and getting on

or off a plane easier or harder?

What about services generally? Do you spend more time waiting in line? Is the service staff friendlier? Do help-lines and service centres actually provide any help or service, or do you just spend more time on the phone pushing buttons?

The reason products improved even as services declined is attributable to a small man with an unusual name – Genichi Taguchi, an engineer (born Jan.

1, 1924), who applied statistics to improve the quality of manufactured goods.

Prior to the 1980s, specifications and tolerances guided manufacturing. The specified diameter of a drive shaft may be 3.5 inches, but because nothing can be made to perfection, engineers would also specify a level of looseness that could be tolerated by the design; say 3.5 inches plus or minus 0.1 inch. A drive shaft of 3.4 to 3.6 inches, therefore, was considered

good enough. By the time all this ‘good enough’ was tolerated in 30,000 parts, you had a car that would shake, rattle and barely roll after 48,000 kilometres.

Enter the diminutive Taguchi. He refused to accept good enough. Specifications and tolerances were tossed and replaced with loss functions, which identified the loss to society for any variation from the ideal.

Suddenly, engineers at Toyota (an early adopter) had a way of determining the economic and social loss of producing drive shafts at anything other than precisely 3.5 inches. Perfection became the goal, with Taguchi giving us a way of calculating the cost of falling short.

Using loss functions helped drive the quality revolution. Japanese automobiles, once considered junk, became the icons of quality. American and European manufacturers followed suit, yielding massive improvements in build quality. Other industries adopted Taguchi methods, giving rise to “the new manufacturing.”

But all this has passed by service industries. Specifications or performance standards remain ubiquitous, guaranteeing, at best, stagnation in quality.

Avoiding accountability

OctOber 23–25, 2012

|

edmOntOn, AlbertA

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Consider an emergency medical services (EMS) department with a performance standard or specification of arriving within eight minutes of a call, 90% of the time. Taking more than six hours for the remaining 10% of calls meets their performance standard. No reason to improve despite the body count.

This is why service standards are really a means of avoiding accountability. They tolerate a looseness, characteristic of poorly managed or incompetent operations, just as engineering specifications tolerated a looseness in the manufacture of cars.

In spite of this, or perhaps because of it, performance standards are promoted as “best practices” in the management of service industries. Healthcare is obsessed with them (ask any doctor or nurse). Governments are tripping over themselves defining them. Airlines, IT departments and repair services are committed to meeting them, but they’re all exercises in excusing poor performance.

Taguchi would be appalled. So should the rest of us.

Taguchi, who died June 2, changed our world. Almost everything manufactured is made better because of him. Sometimes the smallest of men are giants.

Robert Gerst is a partner in charge of Operational Excellence and Research & Statistical Methods at Converge Consulting Group Inc., based in Toronto, and the author of The Performance Improvement Toolkit: The Guide to Knowledge-Based Improvement. This column is distributed by Calgary-based Troy Media. Visit www.troymedia.com.

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Comments? E-mail jterrett@plant.ca.

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