Plant September 2012

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Volume 71, No. 06 September 2012

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Closing the loop on plastic water bottles

Blue Mountain Plastics dips into blue bins to produce RPET

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Dilbert © United Feature Syndicate, Inc.

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Editorial

Let’s talk about building refineries

W

ith all the debate about pipelines running south and west, it took a media guy in BC to give the refinery issue a poke to see if there’s any life in it.

Canada has enormous energy deposits, second to the Middle East. The world wants our product, yet the popular default position is to dig the stuff out of the ground and ship it somewhere else to be processed.

Why can’t we process it here? It should at least be part of the discussion and BC newspaper big wheel David Black is kick-starting the chat with a proposal for a $13 billion refinery to process Alberta bitumen in BC. There is much debate about Enbridge’s Northern Gateway project running through BC to the coast, plus more of the same related to TransCanada Pipeline’s Keystone XL project that, if approved, would send upgraded bitumen from Alberta’s oil sands to Texas for refining.

Billions of dollars in development and construction, plus jobs are at stake but these proposed mega-projects are running into political opposition and enviro-flak from all kinds of stakeholders that could stymie both deals.

Black is interested in the Northern Gateway pipeline, which would transport the bitumen from Alberta across BC to the coast, where it would be loaded onto tankers destined for Asia-Pacific markets.

He wonders why we are taking a pass on the higher value refining work, worth billions of dollars, that will pay off long into the future. And he is not alone. Former Alberta premier Peter Lougheed is not in favour of the Keystone project. Rather than shipping all that value to Texas, he believes the bitumen should be processed in Alberta where it would generate jobs and “activity.” This, he says, should be a matter of public policy.

Black has no investors yet, but he’s offering to pay for the environmental assessment of a 10-square-kilometre facility in Kitimat on BC’s northern coast near the Queen Charlotte Islands for a refinery that would process bitumen from Alberta into gasoline, kerosene and diesel. Doing so would eliminate the need to transport the sandy oil sands goo along the coast, and create 6,000 jobs during construction plus another 3,000 when the refinery is built.

Predictably, his proposal is getting a cool reception from critics who say Canada has adequate refining capacity for its domestic needs. In fact, refineries have been closing.

The number of facilities has dropped from 40 in the 1970s to 20 today, and several of those are destined for shutdown. The newest refinery was built in 1984 and in the US the last ones were built in the 1970s.

Why so disinterested in refining at home? The facilities are devilishly costly and it takes a long time to bring a project to fruition: maybe as long as a decade. And energy companies are not warm to the idea because there’s plenty of refinery capacity elsewhere, such as the US and China.

But this is an issue that transcends the preferences of energy companies.

Emerging markets, particularly in Asia, have a growing hunger for fossil fuels. This hunger will not abate. Demand for oil sands crude is expected to double by 2035.

Governments will never get away with helping energy companies finance construction, but why not find ways to streamline approvals, as the Harper regime is doing to accelerate the pipeline projects? How about tapping foreign investment partners to provide some of the cash? At least demonstrate some imagination, as Black has done.

We need to focus on ways to manufacture energy products that are higher up the value chain, not acquiesce to what appears to be our default position; diggers, hewers and drawers of natural resources.

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. 06, September, 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

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COVER PHOTO: STEPHEN UHRANEY

Features

>> SUSTAINABILITY

12 PLASTIC RECYCLING Blue Mountain Plastics closes the loop on plastic water bottles by producing RPET for new ones filled by parent company Ice River Springs.

14 GREEN MANUFACTURING How to rack up enviro-points by cutting back on inbound and outbound packaging.

>> TRENDS

14 MANUFACTURING The Made in Italy brand is thriving thanks to innovation, exports and providing value.

15 TRADE ISSUES The Fraser Institute says border issues threaten economic growth.

ASSETS A study by the CD Howe Institute reports business investment is picking up.

>> MANAGEMENT

16 RISK Fill in the gaps in your product safety plan with a framework that maintains productivity and customer comfort.

FINANCE Export Development Canada shares five strategies exporters are applying to survive a high-value loonie.

>> OPERATIONS

17 INSIDE MAINTENANCE Make the implementation and best practices of smart maintenance your business.

18 THINK LEAN Planning a major project? Follow the 10 steps to an effective failure modes and effects analysis (FMEA).

19 PROACTIVE MANAGEMENT Vale applies RCM to optimize its Copper Cliff refinery for significant savings.

>> INNOVATION

20 COMMERIALIZATION A hot-selling sex appliance that’s contributing to sexual wellness to couples on a global scale is a Canadian innovation.

21 AUTOMOTIVE R&D Researchers are working on systems that will protect vehicle passengers from rear-enders and side impacts with trucks.

>> TECHNOLOGY

23 MATERIALS HANDLING Kiva Systems mini-bots handle the heavy lifting.

24 PRODUCT FOCUS Air systems.

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

28 PLANTWARE Hardware and software for managing plant operations.

Departments

4 Industry View 7 PLANT Pulse 8 Labour Relations

29 Events 30 Postscript

PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. Tel: 416-442-5600, Fax: 416-510-5140 80 Valleybrook Dr., Toronto, ON M3B 2S9 PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: privacyofficer@businessinformationgroup.ca. Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9 SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information contact us at 1-800-387-0273.

SUBSCRIPTION PRICE: Canada $69.95 per year, Outside Canada $143.95 per year, Single Copy Canada $12.00. Plant is published 8 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Contents of this publication are

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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.

PLANT receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. PLANT, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. This statement does not apply to materials/pitches submitted by freelance writers, photographers or illustrators in accordance with known industry practices.

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ISSN: 1929-6606 (Print), 1929-6614 (Online)

PLANT 3

12-09-06 11:27 AM

Departments

>> Industry View

>> Bulletins Ballard Power Systems, the Vancouver-based developer of hydrogen fuel-cell products, has received purchase orders for 102 fuel cell power generation systems to be delivered to Cascadiant Inc., the company’s southeast Asian distributor. The systems going to two Indonesian telecom providers will produce backup power during grid outages.

Labelink, a label converter based in Montreal, has acquired Labelad, Markham, Ont.-based producer of labels and packaging. The acquisition will help Labelink cut its manufacturing costs. The deal also introduces new products to Labelink’s portfolio, and increases its flexo and digital print capacity.

Iracore International Inc. has completed a three-year agreement with Shell Canada Energy for the supply of Iracore lined pipe and fittings for the energy company's Muskeg River and Jackpine projects in the Alberta oil sands.

Iracore, based in Hibbing, Minn., manufactures corrosion- and abrasion-resistant elastromeric pipe.

The Intelsat 21 satellite is in orbit as of Aug. 19 with COM DEV-built multiplexer equipment onboard.

The company, a Cambridge, Ont. manufacturer of space hardware subsystems, said the replacement satellite will be part of Intelsat’s Ku-band global broadband mobility platform.

Empire Industries Ltd.’s Dynamic Attractions business unit in Winnipeg has finalized a $10-million contract to design, fabricate and export two flying theatre attractions to a Chinese theme park.

Grafoid Inc., an Ottawa-based company that develops graphene applications, and CVD Equipment Corp., a Ronkonkoma, NY manufacturer of advanced electronic components, have signed a joint IP development agreement for NanoToMacro catalyst materials to speed up commercialization of graphene. The nano-material is used in a variety of applications.

Southmedic Inc., a Barrie, Ont. manufacturer of medical devices, will use a $900,000 investment from the federal government FedDev program to automate the assembly process of its patented OxyMask and add finishing processes that were outsourced, plus centralize scalpel blade manufacturing.

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Manufacturers are less confident in Q2: PwC

X-Change closes in on Guardian Telecom

TORONTO: Canadian manufacturers were not so optimistic about the economy in the second quarter, although they expect revenue to be strong, according to a PwC Canada Barometer survey.

The quarterly report resulting from the survey of 43 Canadian panellists at large manufacturing companies shows a 22 point drop from 76% in Q1, thanks to uncertainty in export markets such as Asia, the US and Europe.

Barriers to growth are concerns over energy prices (54%), lack of demand (42%), the monetary exchange rate (37%, which is down 7% from Q1) and a lack of qualified workers (30%).

Despite their lower confidence, PwC says 93% of the senior executives expect positive revenue growth, with 7% forecasting double-digit advances.

Gross margins are expected to increase overall, as will costs on a much narrower margin, while prices will stay the same.

“Sustained interest in international markets is a contributing factor to the confidence manufacturers have with their revenue forecast for next year,”

CALGARY: Energy company X-Change Corp. is closing its acquisition of Guardian Telecom, a manufacturer of industrial communications equipment for the energy sector, in a $3 million deal.

The Dallas-based global energy company said the purchase will expand its product line and services in the developmental and operation of wells on leases, and the servicing of drilling and workover rigs.

Calgary-based Guardian Telecom serves worldwide customers, designing and manufacturing industrial communication equipment, such as hazardous area telephones for on and offshore rigs, oil refineries, mining, and nuclear and power facilities. It recently expanded into petrochemical, chemical and manufacturing facilities.

The company, with 100 employees and revenues expected to top $8 million this year, has manufacturing facilities in Calgary, plus sales and tech-support offices in the US, UAE and Dubai.

Foreign markets and energy investments key to growth

Cascades invests $750,000 in Michigan plant KINGSEY FALLS, Que.: Cascades is investing up to $750,000 to modernize its Cascades Enviropac plant in Grand Rapids, Mich.

The Kinsey Falls, Que.-based manufacturer of green paper products said new equipment will be installed in the plant by the end of this year and beginning of 2013.

The investment will help Cascades “strengthen its market share in the Central and Midwest regions,” it said in a release.

The company intends to increase its industrial product offerings such as Technicomb and Flexicomb flexible protective packaging systems, and its ThermaFresh recyclable therma-insulator. Made of recyclable honeycomb paperboard and fibre composites. They are described as alternatives to traditional packaging.

Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The company employs more than 12,000 in North America and Europe.

International markets are inspiring manufacturers’ confidence.

says Calum Semple, PwC’s industrial manufacturing leader.

Companies that intend to hire over the next 12 months dropped to 23% from 34% in Q1. Only 7% intend to cut jobs, while 70% are maintaining current workforce levels.

Manufacturers who plan to expand to new markets abroad and establish new strategic alliances and joint ventures increased. More than half of the respondents selling abroad anticipate international sales to contribute to their total revenue over the next 12 months.

There is acknowledgement

PHOTO: THINKSTOCK

among 63% of the panellists of a need to increase investment in their operations and they are most interested in information technology (IT). That said, spending is only 3% of revenue compared to an industry average of 3.6%.

“In the sea of an unstable global economy, organizations must view technology as an essential part of their entire business plan and not just part an IT department consigned to mundane functions such as keeping e-mail flowing,” says Richard Jhang, PwC’s technology advisory leader.

Geomega joins IMC’s rare earth consortium

Will supply Innovation Metals processing facility

Rare earth elements are used in high performance magnets.

PHOTO: ARS

MONTREAL: Geomega Resources Inc. has signed a letter of intent to join a consortium of producers supplying Innovation Metals Corp. with a rare earth element (REE) for processing into a neodymium concentrate for use in high-performance magnetic materials.

The materials wind up in a wide variety of electrical machines such as hybrid and electric vehicles, and direct-drive wind turbines.

Geomega, a Saint-Lambert, Que. mining exploration company, said the rare-earth material will come from its Montviel project located in Quebec’s north, to be processed at a separation facility Innovation Metals intends to build in Bécancour, Que. Montviel is one of the largest total rare earth oxide (TREO) resources outside China.

Construction of the $300-million plant, projected to create 300 jobs, could begin by 2014 pending the successful outcome of a feasibility study.

Innovation Metals, a Toronto-based company founded last year, is building a consortium of producers to supply the separation facility and alleviate the bottleneck in the rare-earth supply chain created by export restrictions imposed by China. It will focus on REE concentrates rich in critical REEs such as neodymium, europium, terbium, dysprosium and yttrium.

The Quebec government recently notified the company it would not have to undertake an environmental assessment.

Aecon to head Vale Clean AER construction SUDBURY, Ont.: Aecon Group Inc. has been awarded an $85 million contract for site preparation and foundation construction of the Vale Clean AER (Atmospheric Emissions Reduction) Project in Sudbury, Ont. The construction and infrastructure development company based in Cambridge, Ont. said the contract is the first phase of the project, and includes construction of reinforced concrete foundations, pipe rack foundation and site preparation work for the process plant. Work also includes detailed excavation and backfill for these structures.

The project, to be complete by the end of 2015, involves a complete retrofit of Vale’s nickel smelter converter aisle, the construction of a new secondary baghouse and wet gas cleaning plant, a second acid plant, and new material handling facilities to better prevent dust from entering the community.

The smelter will continue to operate for the duration of the project, which will result in a 70% reduction of sulphur dioxide emissions, and a reduction of dust and metals emissions by 35% to 40%.

September 2012

12-09-06 6:38 AM

Industry View << Departments

Globalization drives skills demand: Carney Labour, business, governments need to build on advantages

TORONTO: Globalization is changing the nature of production and driving up the demand for skilled workers in advanced economies, including Canada, according to Bank of Canada governor Mark Carney.

Competitive advantage will increasingly be concentrated in specific stages of production rather than specific sectors, he added.

For Canada to prosper, labour, business and governments need to build on the Canada needs to raise its game: Mark Carney. PHOTO: WORLD ECONOMIC FORUM 2010 country’s advantages, which advanced and emerging economies, recesinclude sound fiscal and monetary policy; a sion worries in the euro zone and modest resilient financial sector; domestic inefficiengrowth south of the border, which is recies that can be eliminated for employment strained by ongoing deleveraging and uncerand profit; under-exploited opportunities in tainty surrounding the situation in Europe. the most dynamic economies in the world; Carney does believe, however, that ecoand, most importantly, a highly trained worknomic growth will pick up through 2013, force eager to learn new skills. suggesting current challenges restraining “Canada learned during the last crisis that Canadian activity are short-term factors that having our own house in order is not enough. weigh on growth and underlying momentum We need others to raise their game,” he said. that’s at a pace in line with the economy’s The global economic environment remains production potential. challenging thanks to slowed activity across

CAE tool speeds up EV battery design

Code includes latest techniques for modeling performance MELVILLE, NY: CD-adapco has launched an engineering tool that will help automotive and battery manufacturers design electric power systems faster.

The STAR-CCM + Battery Simulation Module CAE tool simulates the flow, thermal and electrochemistry phenomena of spirally wound lithium-ion battery cells in one environment.

The project started in August 2011 and is co-sponsored by the US Department of Energy’s (DOE’s) National Renewable Energy Laboratory.

This computer simulation technology project was chosen to support the DOE’s ComputerAided Engineering for Electric Drive Vehicle Batteries (CAEBAT) initiative.

DOE’s Office of Energy Efficiency and Renewable Energy provided the $7 million in funding to three teams, including one from EC Power, Penn State University, Johnson Controls Inc. and Ford; and another from General Motors, ANSYS, and ESim. The teams contribute 50% of the costs over three years for a project budget of $14 million.

Project goals are to develop battery engineering tools to design cells and battery packs; validate the accuracy of those tools; shorten prototyping and manufacturing processes; improve overall battery performance, safety, and life; and reduce battery costs.

CD-adapco is a Melville, NY-based developer of engineering simulation software.

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STONE TUCKER INSTRUMENTS INC. PosiTector®6000 COATING THICKNESS GAGES

>> Careers Westbridge Energy Corp., a Calgary-based oil and gas exploration and development company, has made some changes to its board. Mark Frewin, a partner with law firm McCarthy Tetrauly, is now chairman.

Joining as director is Kevin Everingham, a corporate finance advisor. Both were members of the advisory board. Tosan Omatsola, an exploration and development geoscientist, and the company’s technical advisor, joins the advisory board.

Richard Winterich has been named COO of Calgary-based Ridgeline Energy Services. Previously he was the CFO of Mobility Electronics, a start-up technology company. Ridgeline Energy applies proprietary technology to treat water generated from industrial and commercial wastewater markets.

Molly Moroni has joined RotoMetrics as sales director for Canada and the US. She will be responsible for supporting new business development initiatives for the company, which produces rotary and flexible cutting die technologies for industrial customers. Karen Moreland moves to the newly created role of vice-president of global marketing and business development. She joined the company in 1989 and in 2010 helped develop the company’s first manufacturing operation in Thailand.

Enablence Technologies Inc., a Toronto-based manufacturer of optical components and subsystems, has appointed Dan Hilton to its board. He has been a director on a number of public, private and not for profit companies. He worked previously with Enablence in several roles, including senior vice-president of corporate development. CFO David Toews has left the company for a new opportunity.

www.plant.ca

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12-09-06 6:38 AM

Departments

>> Industry View

Five-year forecast: overcast but profitable Six industries look past economic upsets

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OTTAWA: Despite iffy global economic conditions, manufacturers in six industrial sectors will count on the US economy and demand from emerging markets to sustain production increases and bolster profitability, according to an industrial report.

The Canadian Industrial Profile-Summer 2012, published by the Conference Board of Canada in association with the Business Development Bank of Canada, says the continuing financial crisis in Europe is the primary risk to some high-profile manufacturing industries. It warns turmoil in the euro zone could further undermine business and consumer confidence in the US and emerging economies.

Here is a summary of six industrial group’s prospects: • Auto parts production.

The strong Canadian dollar will limit price growth resulting in modest profit increases from $1.2 billion this year to $1.5 billion in 2016.

• Aerospace. Strong demand for aircraft in emerging countries along with expectations for a sustained

Manufacturers face risks from ongoing economic turmoil in Europe.

PHOTO: THINKSTOCK

recovery in the US will help to boost production more than 3% annually over the next four years. However, weak price growth will limit profitability to about $500 million annually over the next couple of years.

• Wood and furniture.

A long-awaited rebound in the US housing market will support the outlook with a production increase of 3.3% for furniture products and almost 8% for wood products.

Prices will increase only modestly over the next four years. Wood industry profits will more than triple next year to $673 million. Furni-

ture products are forecast to stabilize at about $400 million annually through 2016.

• Paper products and printing services. Printing services firms are expecting profits of $254 million this year, while the paper products industry is forecasting $229 million. Paper products is looking at modest growth in 2013 with demand in emerging markets boosting production and profitability.

The industry is also exploring new uses for forest resources. Markets for products such as green chemicals and alcohols are potentially worth billions of dollars.

Global car sales up 6%: Scotiabank TORONTO: Global car sales advanced 6% in the first half of 2012, despite the debt problems in Western Europe and the moderate pace of economic activity, according to a Global Auto Report by Scotiabank Economics.

Japan at 52% and Russia at 29% are leading the gains.

Western Europe continues to lag, with sales set to decline to 12.2 million units in 2012 – the fifth consecutive slide and the lowest level since 1996.

“We expect continued gains in the second half supported by record low shortand long-term interest rates in most nations,” said Carlos Gomes, senior economist and auto industry specialist at Scotiabank Economics.

North America is posting a double-digit increases, lifting purchases to the highest level since 2007. Light vehicle sales in North America have jumped 13% so far this year, led by a 21% jump in purchases by US businesses, governments and rental car agencies.

The improvement in Japan reflects a bounce back from last year’s tsunami-induced

6 PLANT

slump, which slashed purchases to only 3.5 million units – the lowest level since 1986 – as well as government incentives for eco-friendly vehicles.

Sales in China and Brazil have accelerated to doubledigit gains in recent months,

bolstered by government stimulus. In China, the government created a US$952 billion subsidy program for purchases of fuel-efficient cars with engines of less than 1.6 litres. Car sales there have jumped 14% year over year.

>> Feedback EI NOT ONE SIZE FITS ALL I just read the article, Operate EI like a true insurance system, in PLANT magazine (July/August 2012).

The EI system was put in place to assist those who lost their jobs suddenly until they could find new employment. EI and the seasonal worker is a completely different situation.

Prince Edward Island has two lobster fishing seasons: May and June, then August and September. The majority of workers are paid minimum wage. Paying them 70% of that wage would be illegal wouldn’t it?

There are no other jobs to go to between seasons and absolutely no jobs for people to go to during the winter months, even if they have to drive an hour to get there.

Maybe using separate rules for seasonal minimum wage workers living in a one-industry location needs to be treated differently than others that earn a higher wage in an area where jobs are plentiful.

Just a thought.

S. Gaudet PEI We’d like to hear from you. Send letters to jterrett@plant.ca with your name, address and phone number. Letters will be edited.

September 2012

12-09-06 9:14 AM

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12-09-06 6:38 AM

Departments

>> Labour Relations

Autoworkers deserve to share the recovery

BY KEN LEWENZA

W

e all have painful memories of the 2008-09 financial crisis. The auto industry was on the brink of collapse but Canadian autoworkers did their part, and then some, to help the automakers survive and recover. Now all three – GM, Ford, and Chrysler – are profitable, especially their North American divisions.

They’re also doing very well in Canada, both in manufacturing and retail sales.

The Canadian Auto Workers (CAW) union expects an incredibly difficult

Even with an overvalued dollar, Canada’s all-in active hourly “costs are not much higher than those in the US… ” round of bargaining with the three companies. My core message to them is simple: Workers made sacrifices to help the automakers survive. They deserve to share in the benefits of the recovery.

Production costs do appear to be much higher than they were, but that’s solely attributable to an over-valued dollar (driven 25% above its fair value by oil prices and financial speculators). And Canadian autoworkers are not the “most

expensive in the world,” as auto executives and spin-doctors claim, although they appear to be because of the financial markets and federal government policies that have reinforced Canada’s evolution into a petro-exporter, while downplaying manufacturing. In fact, real compensation (relative to Canadian consumer prices) is now lower. Moreover, real costs (again, relative to domestic prices) are lower than those in the US

Auto policy needed

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and other advanced auto-exporting countries (including Japan and Germany).

CAW labour costs are just 5% of the total cost of an automobile.

Even with an overvalued dollar, all-in active hourly costs are not much higher than those in the US. Across the three companies, autoworkers average less than 5% more. That’s not a significant gap – especially considering Canadian plants, on average, are more productive.

On the retail side, companies are helped by the strong loonie. They charge Canadians more for the same products – even cars made in Canada.

Canada is a good place for auto companies to invest. Productivity, infrastructure, the quality of the workforce and public health care all help to offset the strong currency. But the companies also have a responsibility to maintain their manufacturing footprints here and to give something back to the workers contributing so much to their profits.

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Yet the three companies are threatening the future job security of CAW members unless their demands for more concessions are accepted.

Canada needs a strong auto policy to protect the industry: the union can’t defend the whole sector at the bargaining table single-handedly. It’s not possible, based on past rounds of bargaining, to win iron-clad guarantees of new investment. Only governments can do that, which is why the CAW launched a major auto policy campaign in the spring featuring a 50-page policy paper, “Rethinking Canada’s Auto Industry” (www.rethinktheeconomy.ca) with its 10-point program for strengthening the industry well into the future.

Notably, the CAW wants the government to extend its manufacturing footprint agreements with GM and Chrysler. These agreements were crucial to maintain Canada’s share of North American production through the crisis, but they expire at the end of 2016. We also think the government should negotiate similar provisions with other OEMs (including Ford).

The CAW will be walking a tightrope at the bargaining table. We’ll find a way for Canadian workers to share in the companies’ success, and we’ll do whatever we can to secure future investments and job security. The level of the dollar and overall cost issues will be relevant factors in the bargaining process. But there’s no possibility these very profitable companies will get more concessions from the workers who have already given so much to help them survive.

SM

Ken Lewenza is the president of the Canadian Auto Workers Union, which represents 225,000 workers across the country in 17 different sectors of the economy. E-mail cawcomm@caw.ca.

Visit www.SEreply.com Key Code p969v

Comments? E-mail jterrett@plant.ca. ©2012 Schneider Electric. All Rights Reserved. Schneider Electric, PlantStruxure, and Make the most of your energy are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. • www.schneider-electric.com/us • 998-3623_CA

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September 2012

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Bleed Trim

>> Economy

Live

EMPLOYMENT DECLINES IN JULY

thousands 17,600

Canada’s still adding full-time jobs despite economic concerns Ontario bucked the job loss trend as the only province to make significant gains with 10,600 new jobs.

Wage gains were also healthy. The average hourly rate increased by 3.9% year-on-year. TD Economics noted growth has outpaced inflation for four months, “a welcome development after lagging through much of last year.”

Hours worked were up 0.2% in July, consistent with the average pace over the past six months.

16,800 16,600

J

J 2007

J 2008

J 2009

J

J

2010

2011

J 2012

There were 30,000 fewer jobs in July because of losses in part-time work. The unemployment rate rose 0.1% to 7.3%. Employment in manufacturing was down 1% from June, but up 1.6% year-over-year.

VEHICLES LEAD WHOLESALE SALES

$ billions 52 50 48 46 44 42

EMPLOYERS SAY SALARIES TO RISE 2.6% Canadian employers expect salaries to rise by an average of 2.6% in 2013, according to Morneau Shepell's annual Trends and Projections compensation survey.

This is a 0.2% drop from last year’s survey. The 2.6% average (roughly double the inflation rate during the survey period), includes expected salary freezes, but excludes promotional or special salary adjustments, and represents a 0.2% drop from last year’s survey.

Respondents say that projected base salary increases for 2013 are within last year’s 2% to 3.5% range.

Overall, Morneau Shepell, a Toronto-based workforce programs firm, said respondents appear to be less optimistic than last year in terms of growth and profitability, especially those in Alberta.

The survey was conducted between June and August with input from more 250 organizations in the manufacturing (28%), services (24%) and finance (14%) sectors.

40 38 36

Chained (2002) dollars Current dollars

34 32

J

J 2007

J 2008

J 2009

J

J

2010

2011

J 2012

After four consecutive monthly increases, wholesale sales took a wee 0.1% dip in June to $49.9 billion. Vehicles and parts were up 2.2%, while machinery and equipment rose 1.3%. Food and beverages continued its streak running from 2009, rising 0.3%.

STRONG GAINS IN EXPORTS AND IMPORT $ billions of dollars, seasonally adjusted 45 43 Exports

41

SOURCE: STATISTICS CANADA

A

lthough job creation in Canada slid to a halt in July, shedding 30,400 jobs and pushing the national unemployment rate up by one-tenth of a point to 7.3%, the news isn’t as bad as it seems, according to a TD Economics analyst.

Economist Leslie Preston said in a bulletin that month-to-month employment numbers “are notoriously volatile,” so the job losses need to be viewed in the context of past six-month trend.

Canada has added an average of 20,000 new jobs per month over the past six months, but TD Economics is expecting a trending down to 15,000 in the second half of the year.

Pearson said it’s a pace that’s becoming more consistent with 2% real GDP growth.

Statistics Canada’s labour report for the month showed a loss of more than 30,000 jobs, but TD Economics notes a silver lining: most of those losses (52,000) were concentrated in part-time positions in contrast to a 21,000 increase in full-time jobs. That continues a trend that has seen Canada add full-time jobs but lose an average of 8,000 part-time jobs.

There were significant losses (30,000) in the wholesale and retail trade sector, and employment in the professional, scientific and technical services (22,000), while public administration declined by 17,000.

Manufacturing saw a loss of 18,000 jobs while construction was up by 11,000.

Offsetting the declines were gains in information, culture and recreation, up 24,000, and finance, insurance, real estate and leasing, which increased by 19,000.

17,000

39 37 35 33

Imports

31 20 27

J

J 2007

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www.plantmagazine.ca/rsc/ 109

SOURCE: STATISTICS CANADA

Bright spots in July’s dim jobs report: TD

17,200

SOURCE: STATISTICS CANADA

ECONOMIC DE VELOPMENTS AND TRENDS

17,400

J 2008

J 2009

J 2010

J 2011

J 2012

Merchandise imports rose 2.3% in June while exports were a bit sluggish at 0.2%, bringing Canada’s trade deficit to $18 billion from $954 million in May. Automotive products were up 13.9%, offsetting declines in five of seven sectors.

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

MANUFACTURING SALES FALL seasonally adjusted

Current dollars 2002 constant dollars J 2008

J 2009

J 2010

J 2011

SOURCE: STATISTICS CANADA

Departments

J 2012

There was a 0.4% dip in manufacturing sales in June, mostly attributable to a 10.6% drop in petroleum and coal products. Take them out of the mix and sales were actually up 1.1%., with 12 of 21 industries reporting increases, representing about 60% of Canadian manufacturing.

September 2012

12-09-06 1:48 PM

SOURCE: STATISTICS CANADA

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12-09-05 11:44 AM

Sustainability

>> Plastic Recycling

Water bottles:

Ryan L’Abbe with a discarded clear plastic bottle that will be transformed into 100% recycled clear plastic bottle.

100% Recycled

PHOTOS: STEPHEN URHANEY

Blue MountaIn PlaStIcS cloSeS the looP Plastic collected from Blue Bin initiatives is processed into food-grade bottles for Ice River Springs water.

12 PLANT

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By Matt Powell, aSSIStant edItoR

P

lain or fizzy, people like their bottled water. In Canada, its share of the beverage market almost doubled from 5% to 9.1% between 2000 and 2006. Of course, there are a lot of regular folks and vocal environmentalists who don’t care much for the bottles. They see the plastic containers as a blight on the landscape or a waste of space in landfills.

The thing is, water bottles and other plastic beverage containers are recyclable and according to the Canadian Bottled Water Association. 70% of them (2010 data) are recycled and account for 0.02% of the total waste stream.

Thanks to more advanced recycling technology and municipalities ramping up residential recycling initiatives, plastic bottles have been good for Ice River Springs, a bottled water producer

based in Feversham, Ont. It has closed the loop, becoming the first company in North America to manufacture it’s own polyethylene terephthalate (PET) resin from re-purposed plastic to produce 100% recycled bottles.

Located about two and a half hours north-west of Toronto, the company has been serving up its fresh spring water from a protected source for 15 years, growing into seven bottling facilities in

September 2012

12-09-04 9:56 AM

Canada – including two in Ontario – and the US. To lessen its environmental impact in an industry where carbon footprint has been historically high, the company has set up a closed-loop recycling and manufacturing subsidiary at a 110,000 square-foot facility in Shelburne, Ont. Called Blue Mountain Plastics, it handles more than 80% of Ontario’s Blue Bin recyclables.

“Customers offered feedback on how to reduce the environmental impact of our products and make the whole operation more sustainable,” says Ryan L’Abbe, Blue Mountain’s vice-president and general manager.

This led to a couple of options: purchase recycled material, or make its own. The choice was option B.

After cleaning, two streams of materials are left: one blue and clear; the other green. The green materials are baled and sold to reproducers like Signode Packaging Systems, which has a facility in Markham, Ont. It uses the green waste to manufacture strapping for palletizing and bundling applications.

Blue and clear plastic goes to a wet grinder and turned into flake, then it's sent to a tank where the RPET sinks.

Unwanted organics float to the top and are skimmed off.

A friction washer removes the remaining organics, then the RPET goes to a rinsing chamber. Dry flake is sent along an Eriez magnetic conveyor that removes metal materials, such as aluminium. The flake is sorted again for transparency, bagged and sent to Feversham where it’s melted and formed into bottles that weigh less than 10 grams.

This operation is in motion 24 hours a day, five days a week, handling more than 4.7 tonnes an hour.

Such a capacity requires a lot of materials, which in the early days didn’t come easily for the Blue Mountain crew.

“The recycling industry has changed a lot since we started,” says Gott. “There’s a lot of partnerships nowadays, but the big thing with municipalities is that they generate material that needs to be sold quickly; they need someone who can pick up a load every day.”

He says getting Blue Mountain’s line up to speed was a challenge.

Plastics are dumped into a conveyor for shredding.

A sophisticated supply chain Blue Mountain buys its materials from Ontario’s municipalities and manufactures a resin called recycled PET (or RPET), a process encompassing a sophisticated supply chain operation that wasn’t easy to put together.

The concept became a finalized business plan by 2009 and trips to Europe followed during which the company’s key players met with Amut, an Italian manufacturer of plastic extrusion systems, and Starlinger, an Austrian manufacturer of complete extrusion lines for recycling plants. After examining different wash and extrusion options, the Canadians committed to one that involved washing the bottles, then grinding them. L’Abbe says this achieves a higher quality grind.

“It was a really expensive venture and we wanted it to be as automated as possible, so we started looking at the whole supply chain: how material is recycled, what kind of technology we need, and how we would source our materials to get them into a food-grade form.”

And it was imperative the entire operation was completely closed-loop.

“We sent trucks to Toronto almost everyday,” says L’Abbe. “Now, we use those trucks to backhaul a load of recycled materials for the plant in Shelburne.”

That one change closed the production loop. Not only did Blue Mountain cut its environmental footprint by recycling household plastic waste from Canada’s largest municipality, it racked up a bit of a profit.

Today, the entire Ice River Springs operation starts in Shelburne, where trucks deliver up to 50 million pounds of recycled materials a year. It’s sorted, washed, ground and bagged, then sent to Feversham where a team of eight workers use self-manufactured preforms and Starlinger purification equipment to blow the 100% recycled, food-grade water bottles. They’re filled, labelled, capped and delivered.

Blue Mountain’s operation, which handles 8,000 pounds of PET an hour, is automated, making it efficient while en-

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The material heads into the grinder.

Major material handlers

Shredded plastic for processing.

suring a higher degree of quality control.

“When you need a clear container, [TiTech] optical sorters are more reliable because there’s so many different kinds of plastics; human sorters can’t tell the difference,” he says. “This operation has such a high capacity that it needs to be as efficient as possible to achieve the required level of purity to meet food-grade standards.”

Baled recyclables are sent through the sorters, which separate clear and blue plastics from green.

“We can’t take the colours out of

plastic, and we want clear materials for water bottles,” says maintenance lead Justin Gott. “Blue blends in with the clear and helps with the rest of the process because it acts like a dye. When we reheat the preform, it takes heat better, requires less energy and keeps the bottle from yellowing.”

The bottles go through an Amut-powered wash line where they’re sanitized and cleansed of labels and glue. Typical recycling lines use up to 10 litres of water to clean one kilogram of flake. Blue Mountain’s lines operate at a 1:1 ratio.

“We couldn’t handle the [amount of] material we’d hoped in the beginning and that was an issue with the municipalities – they were selling elsewhere because they were skeptical we could buy as much as they wanted to sell,” he says.

Although they weren’t sure about the mechanical capabilities of the line, a few open houses showing off the material recycling facilities helped to convince the municipalities and secure the supply.

These days, the company handles up to 80% of Ontario’s blue-bin materials.

Gott concedes that the RPET production line consumes a significant amount of energy, but the company is examining ways of becoming more energy efficient.

“We’ve got 50,000 square feet of equipment running here. We can’t say the line doesn’t consume a lot of energy because it does,” he says. “But we’ve placed a fair bit of focus on solar power, which is already on at the bottling facility in Feversham.”

Gott considers Blue Mountain to be a work in process. The learning curve has been long, but the company is always looking for ways to be better at what it does. And there may be another business opportunity creating a new market for the unusable by-products that are so plentiful, making the world even greener, one bottle at a time.

Comments? E-mail mpowell@plant.ca.

PLANT 13

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Trends

>> Green Manufacturing

Waste reduction Put your plant on a packaging diet

>> Manufacturing

Made in

Italy ManuFaCTurInG suCCess desPITe eConoMIC TurMoIl

seven opportunities to cut costs and reduce environmental impact.

The “Fabbricazione Italia” brand is succeeding thanks to a mix of innovation, exports and value-added.

By BreTT wIlls

By MaTT Powell, assIsTanT edITor

R

C

educing incoming and outgoing packaging is a great way to cut costs (sometimes significantly), but it also shows a commitment to reducing waste. savings will come from using fewer materials as well as cutting disposal and transportation costs.

Get things started by setting up a structure that drives the initiative and develop a metric that measures progress. one used by world-class organizations measures the amount of packaging per unit or quantity of goods shipped (3 lb. per unit shipped). next set a light-weighting goal to improve the metric (reduce packaging to 2 lb. per unit shipped). Then assign accountability for the goal to a specific individual, department or team and hold them accountable.

Here are some reduction opportunities: 1. eliminate unnecessary packaging such as dividers, fillers or putting a box inside a box, etc.

2. Talk to suppliers and customers about sending instructions, warranties and other documents electronically.

3. Packaging is often much larger and thicker than required. reducing its size may also reduce the need for space fillers.

4. Consolidate items into a single package.

5. Go for re-usable packaging such as plastic totes.

6. re-use boxes, wooden crates and pallets.

7. reuse metal or plastic drums, boxes and barrels with plastic liners.

8. Minimize stickers, labels and markings on packaging. when using hundreds or thousands of them, the costs add up.

Be sure to identify the cost savings. This helps drive new initiatives and reinforces the idea that thinking green is good for the environment, and for business.

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.

Comments? E-mail jterrett@plant.ca.

14 PLANT

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anadians likely think of Italy more as a romantic vacation destination and are more aware of its cultural characteristics than its many industrial qualities.

Indeed, the country is beautiful and the food so magnificent, so deliziouso, yet there’s much more to appreciate than its fascinating history, ancient and elegant architecture, some of the world’s most beautiful artistic treasures and many fabulous wines.

Much of the recognition Italy is getting these days has more to do with its precarious economic condition and its contribution to the potential unravelling of the euro zone, thanks to a debt that is 120% of its economy and the likelihood of remedies that will involve steep spending cuts and tax increases.

Export or die Yet, despite the ongoing economic turmoil in Italy and the 17-country euro zone, Italian manufacturers are weathering the storm and enjoying growth; a victory most companies attribute to a refined mix of innovation and R&D, added value and healthy export markets.

PLANT took part in a media delegation to Milan and Bologna hosted by the Italian Trade Commission (ITC) and Machines Italia in May to get an upclose look at Italian manufacturing. The delegation was also hosted by Federmachine, a governing body for more than a dozen specialized, sector-based industry associations that develop individual components of Italy’s manufacturing economy.

The trip focused on all sectors of Italian manufacturing, from metal forming machinery and equipment to fluid power and plastics. Despite their differences, most companies seem to follow a similar formula.

“When you have a population of 60 million, you can only go so far in a domestic market because it’s too small to support growth,” said Bart Pascoli, project coordinator at the Italian Trade Commission.

Sales of Italian-made machinery and equipment are expected to top $6.2 billion this year, up 3.5% from 2011.

He notes exports also alleviate pressure on the bottom line because downturns in local economies aren’t felt as harshly.

As a percentage of GDP, Italian exports represent 29%, matching Canada’s performance. The notable difference is that Italian manufacturing’s percentage of total merchandise exports topped 82% in 2010, while Canada’s manufacturers exported 49%, according to the World Bank.

PHOTO: MATT POWELL

Italian manufacturing.

“Italians are champions of specialized machines,” he said. “We are showing what automation of the future looks like and how connectivity will continue to change the way machine shops operate.”

As a smaller company, Caesare Galdabini’s approach to R&D responds to Europe’s troubled economy: focus on personalization and applied innovation for individual customer needs. And

“exports allow Italian producers to innovate

”

because they know they need to export to survive...

Italy is also the second largest (after Germany) OEM producer in Europe.

Ironically, Germany purchased more than $1.3 billion worth of Italian metal machinery and equipment, according to Federmachinne’s UCIMI – Sistemi per produrre, Italy’s association for machine tools, robotics and automation companies.

Sales of Italian-made metal machinery and equipment are expected to top $6.2 billion this year, a 13.5% increase over 2011, said newly-appointed association president Luigi Galdabini during a press conference at the Bologna-based Lamiera metalworking trade show, where 42% of its 400 exhibitors were from abroad. Galdabini said the industry expects exports to jump by 25% this year, reaching a value of more than $4.2 billion – almost 70% of total sales.

The recently appointed president of UCIMI – Sistemi per produrre also owns local manufacturer Caesare Galdabini, which specializes in material testing instruments. It exports 83% of its production.

Galdabini is an unabashed booster of

value-added is key, even more so than boosting productivity.

“Enhancing productivity is still crucial, but we’re starting to move away from emphazing it to focus on personalization and customization to boost efficiencies, which eventually boosts productivity,” he said.

He contends doing so has helped boost Italy’s competitive advantage over competitors such as Germany, China and Japan, and combined with growing exports, is also crucial to innovation.

“Exports allow the Italian producers to innovate because they know they need to export to survive,” said Pascoli.

Saes Getters Spa., a Milanese innovation company, specializes in producing components for ultra-high vacuum and gas purification applications for industrial customers. It once provided vacuum sealants and ultra-pure gases for liquid crystal display (LCD) televisions, until that business tanked when electronics manufacturers moved to light emitting diode (LED) displays. The lost business amounted to $115 million.

September 2012

12-09-04 10:04 AM

Despite the massive loss, the company continued to innovate, devoting at least 10% of revenues to R&D. “We’re still here because of our continuous R&D and innovation practices,” said Giulio Canale, Saes Getters’ managing director.

The investment is paying off. In 2011, the company rebounded from its worst sales year ($164 million in 2010) to earn more than $190 million thanks to its recent focus on developing shape memory alloy technologies.

Shape memory alloy actuators replace the need for bulky DC and electronic motors. The alloys, in ultra-thin wire grades, recover their shape with the application of heat, making them ideal for compact, powerful and silent actuators, replacing traditional technologies made of wax.

>> Trade Issues

Border issues pose threat to economic growth Fraser Institute says annual costs since 9-11 top $19.1 billion

Harnessing hydrogen The company, which employs 1,000 people at 10 facilities worldwide, has also developed a way to harness hydrogen in lithium-ion batteries for electric vehicles that allows automakers to use larger units without worrying about overheating. Chevrolet fell victim to this when some of its Volt hybrid electric cars experienced dangerous engine fires late last year.

Saes Getters says automakers are currently using what essentially comes down to a few laptop batteries packed together, something the company hopes to change to make electric vehicles more efficient and boost range.

Novamont, a Torino-based commercial and consumer bioplastics producer, also takes innovation very seriously. It employs 150 people, 30% of whom are dedicated to R&D and innovation.

“Sustainability” and “environmentally friendly” are not words easily associated with the plastics industry. Bioplastics are helping to change that.

Novamont, founded in 1989 as Fertec, is one of Italy’s largest producers of commercial and consumer products focused on innovation through sustainability. It produces more than 80,000 tonnes of biodegradable, compostable bioplastics annually, which are used in garbage and shopping bags, toys, hygiene products and car tires.

The Italian firm also has a Canadian presence. W. Ralston Inc., a Brampton, Ont.-based producer of polyethylene film and plastic garbage bags, uses Novamont’s vegetable resin-based Mater-Bi products in its BIOSAK compostable bags.

For Canadian manufacturers struggling in a global market where they must contend with a high-value dollar, high costs, rising global competitive forces and less than ideal economic conditions, Italian manufacturers demonstrate that it is possible to thrive even when circumstances are not ideal with the right combination of R&D and innovation investment, exporting, focusing on specialization, and adding plenty of value.

Comments? E-mail mpowell@plant.ca.

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14-15-PLNT.indd 15

The Ambassador Bridge, spanning the Detroit River.

C

anada-US border maintenance costs Canadians up to $19.1 billion annually, says a report from the Fraser Institute.

Measuring the Costs of the Canada-US Border looks at expenditures since 9-11 plus reductions in trade and tourism and calculates the annual cost at $19.1 billion, or about 1.5% of Canada’s GDP. “The current system of border thickening constitutes a serious threat to long-term economic growth in Canada. Moreover, the time has come to link specific border improvement proposals to cost estimates so that the public can obtain performancebased data.” said Alexander Moens, Fraser Institute senior fellow and co-author of the report.

Since 2001, Canadian exports destined for the US fell to 74.9%, down from 86% in 2000. US-bound merchandise exports fell to 17.2% as of 2010, down from 31% in 2000.

The Vancouver think-tank notes even when adjusted for fluctuations in economic activity, border costs appear to impede trade.

Tourism has also been affected. Statistics Canada reports the number of overnight trips by US residents fell 23% over the past decade, from 15.2 million in 2000 to 11.7 million in 2009, the lowest number since 1985. Same-day return trips fell from 28.8 million to 8.8 million, a decline of 69%. The combined decline is 53%.

Boosting border flow The report suggests that the 2011 Beyond the Border Declaration between Canada and the US, in which both governments agreed on creating an “integrated, multi-modal customs and transportation security regime,” could strengthen North American trade and reduce border costs. A one- to three-year timeframe for most initiatives is possible, but at a potential cost to Canada of $1 billion.

Harmonized border programs would involve criteria outlining how goods are to enter or leave the trade zone. For example, offshore cargo bound for either the US or Canada would be inspected and cleared once for both countries; more cooperation on passenger pre-screening for visitors to either country; updated technology for a complete arrival and departure regime for travellers; updated baggage-inspection technology to harmonize Canada’s screening with US standards; and use of radio frequency identification technology on the Canada side to speed vehicle crossings at border points.

Harmonized regulations would include various “trusted traders” programs such as the Canadian supply-chain security program, Partners in Protection (PIP), and its American equivalent, Customs-Trade Partnership Against Terrorism (C-TPAT).

One important proposal is the construction of a new bridge

PHOTO: THINKSTOCK

between Windsor and Detroit. The report notes frictionless flow of commercial traffic between Southern Ontario and Michigan is vital for an integrated and thriving North American automotive industry.

Since 9-11, long wait times at border crossings in the Windsor-Detroit corridor have threatened the integrity of “just-intime” manufacturing processes and have added extra production costs to automobile manufacturing.

“Canadians and Americans are at a crossroads: either we continue with incremental and uncoordinated border programs as we have often done since 9-11, or we begin to create a new border regime,” said Moens.

>> assets Business investment is picking up More per worker in 2012 than oeCd average

B

usiness investment in Canada is picking up relative to its international peers, but underlying problems remain, according to a report by the C.d. Howe Institute.

Canadian investment per worker in plants and equipment is compared to members of the organisation for economic Co-operation and development (oeCd) and the us. Projections for 2012 show that Canadian businesses are set to invest more per worker than the oeCd average – 105 cents per dollar across the group. report authors Benjamin dachis and william robson calculate that in 2012, Canadian business investment per worker will rise to 91 cents per dollar invested in the us, up from 85 cents during the previous decade.

But they note Canada’s relative improvement owes much to performances by resource-rich provinces, while Central Canada and the atlantic provinces struggle. another troubling trend, according to the report, is residential construction’s share of total business capital spending has risen almost two-fifths (37%) since 2009, while non-residential investment in factories and equipment has declined. “while residential construction has been a welcome support to Canadian demand and output since the crisis, policies that favour it may exact a longer-term cost by crowding out non-residential capital investment,” robson said. download From Living Well to Working Well: Raising Canada’s Performance in Non-residential Investment at www.cdhowe.org.

PLANT 15

12-09-04 10:04 AM

Management

>> risk

Protect your business with an integrated, risk-based framework that maintains productivity and customer confidence.

By Glenn Fraser and CliFF TrolloPe

A

food product supplier lost 24 hours as a result of a contamination incident. During this critical period of time when a problem is either contained or escalates, customers called, employees worried and operations slowed.

The management team later determined there were serious gaps in the product safety program. While they knew how to recall a problem product, there weren’t sufficient tools and processes in place to communicate with stakeholders, manage the crisis and maintain operations. The result was lost revenue and productivity along with damaged customer confidence.

Like many other manufacturers and processors, the company had a number of product safety measures in place but lacked a formal framework to link them.

What the company needed was an integrated risk-based product safety program covering seven components: • Product safety management. This includes systems and management of recognized standards and certifications such as traceability, ISO, CSA and GFSI. • Product recall. Procedures are needed for removing or correcting products that may be a health hazard to users. Ineffective recalls can have extreme consequences for a company’s finances, operations and brand.

• Crisis management. Procedures and processes provide operational and strategic level command and coordination from senior management.

• Business continuity. Strategies and procedures ensure continuation of timecritical business processes following an incident or disruption.

• Information technology. Communication, supply chain operations, document management and tracking, and recall procedures require ongoing support.

• Security and defence. This includes protection of products, facilities, people, processes and data.

• Supply chain. Identify the points in the chain that pose the greatest risks to product safety.

Most companies already have some of these components in place but need to identify gaps based on the operation’s size and requirements to determine the most practical strategies, then link them.

Once this protective umbrella is in place, managers and employees devote significantly less time to managing risks.

Moreover, an integrated program delivers benefits beyond solving problems. It also improves operational effectiveness, protects the core business and secures an important competitive advantage: reassurance for prospects and customers.

Stakeholders want to know if you have a problem. How will they be affected?

Having a few components of a risk

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Ready for a Recall

?

Fill The GaPs in your ProduCT saFeTy Plan

>> Finance

Balancing the loonie and the greenback.

PHOTO: THINKSTOCK

Surviving the loonie exporters offer five strategies

C

Link product safety measures with a formal framework.

based product safety program is not sufficient to protect a business – all must be in place for each component to work on its own and with others. An inclusive, effective program comes in three steps: 1: Identify and manage enterprise risk. Determine all of the risks that may affect your company’s ability to achieve its objectives, then select appropriate responses and controls to minimize them.

Start by assessing the status of riskbased programs. When gaps and weaknesses are identified and appropriate strategies are in place, create a risk register. This central repository includes descriptions of key risks, the probability of their occurrence and the potential impact should they occur. The register also describes the actions your company will take to reduce the likelihood of an event and the response should one occur.

When you complete this step, test procedures, monitor risk and review the risk register annually to ensure it continues to meet the organization’s needs.

2: Ensure compliance. When it comes to product safety regulations, most organizations are compliant with government and industry requirements since they’re generally mandatory. However, it’s also necessary to stay abreast of changes. Include updates to ensure relevant business practices remain compatible.

Documenting clear goals and operating in accordance with them is also impor-

PHOTO: THINKSTOCK

tant. Ensure internal policies, procedures and stakeholder commitments align with risk procedures.

3: Direct with effective governance. Leadership must come from the executive team. Align organizational objectives with the product safety program, set appropriate policies, assign accountability, communicate the importance of the program and monitor performance.

Engage key internal and external stakeholders when developing policies to ensure they are relevant and inclusive.

From this point, the executive team reviews the program annually, updating it as required, and encourages everyone to follow policies.

An integrated framework for a risk based product safety program anticipates opportunities and responds quickly to problems. Management will win the first 24 hours by executing a program that protects the core of the business and meets the needs of stakeholders.

Play it safe – check the status of your company’s product safety strategies.

Glenn Fraser (glenn.fraser@mnp.ca) is the leader of the GTA region food and ag processing practice of MNP (www.MNP. ca) and Cliff Trollope (cliff.trollope@ mnp.ca), leader of the firm’s business resilience practice.

anadian exporters are finding the high value of the loonie (about par with the us dollar) to be a bit of a worry, but they’re finding ways to adapt, according to a study by export development Canada (edC).

The ottawa-based export credit agency polled its research panel to gain some insight into how exporters are coping.

The report, …How Canadian businesses are adapting to a strong Canadian dollar (www.edc.ca), includes comments from some of the respondents describing what they are doing to get ahead of the loonie: 1. Lie low or go with the flow. some exporters are waiting for calmer or lower currency rates. They’ve slowed their export businesses to concentrate on domestic markets, or they’re trying to stay afloat until currency conditions are calmer.

2. Diversify markets. The strong dollar has been an incentive for some to break into new markets, which has helped to grow and strengthen their businesses.

Companies are also in foreign markets to meet supply chain, labour and manufacturing needs.

3. Re-consider your focus. When price is no longer an advantage, exporters are focusing more on quality, customer service and innovation. even when price competitiveness is not affected, lower profit margins mean less money for r&d, encouraging companies to become more lean, green and efficient.

4. Be unique, find a niche. adapting to currency fluctuations is easier for those who offer a very high-end, high-quality product line, or a unique product that appeals to a niche market.

5. Deal in US dollars or other currencies.

Pricing or paying suppliers in other currencies is helpful, but it can eat into profit margins. a similar strategy is to price export products on par with us currency rates. another is locking in currency rates by purchasing forward or foreign exchange contracts. other recommendations include: adding at least a 3% margin for currency fluctuation; consider more collaborative, open source approaches; look at new technologies; switch to third-party sales agents; upgrade software to the latest quality standard; or hire experts at managing currency risk.

Comments? E-mail jterrett@plant.ca.

Comments? E-mail jterrett@plant.ca.

September 2012

12-09-04 10:09 AM

Inside Maintenance << How to make smart maintenance best practices part of your business.

• Poor quality and inconsistent data recording. Steps to correct this include training data collectors; assigning time on the work order; assigning responsibility for data collection and quality checking; and tracking through the backlog management and performance management process.

CBM is not a silver bullet, there is too much collateral damage. As with all maintenance tasks, apply the standard test: does it add value? If the answer is “no,” don’t do it.

By Steve GaHBauer

A

Steve Gahbauer is an engineer and Toronto-based freelance writer, the former engineering editor of PLANT and a regular contributing editor. E-mail gahbauer@rogers.com.

Comments? E-mail jterrett@plant.ca.

PHOTO: THINKSTOCK

Playing it

Non-critical equipment takes up a significant portion of the maintenance effort.

Priority is lower than critical equipment and should be treated as such. Best practices include: periodic reviews of criticality and preventive maintenance work orders to optimize tasks; frequent and accurate work orders; and periodic reviews of any high-cost repair work to see see if lower-cost tactics are effective.

Stevens’ concluding thoughts are on condition-based maintenance (CBM): a simple concept fraught with many practical complexities and a few drawbacks. His basic tenet is, “If the equipment condition requires it, do maintenance; if it doesn’t

17-PLNT.indd 17

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require it, do nothing.”

Here are the key steps for a successful CBM regime: • Do an inspection to uncover the equipment's condition.

• Identify measurable conditions for major failure types.

• Decide what measurement levels identify a normal operating range from an alert stage to an alarm stage.

Each alert should determine the kind of preventive maintenance needed to forestall further deterioration. For each alarm choose the required corrective, repair or emergency action, investigate the root cause and determine necessary action. Sounds simple enough, but there are some problems with CBM that Stevens summarizes as follows: • Too much data. Automation allows us to collect more data than we can analyse, which can mask trends and obscure problems. Tie data to a functional failure and failure mode.

• Preventive maintenance systems automatically performing tasks that aren’t necessary.

• Capturing condition data as “okay” or “not okay.” This prevents trend analysis so failures appear to be sudden since gradual degradation is not apparent.

• Not recognizing the alert status early enough to plan and execute PM tasks before a failure occurs.

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SwItcH tHe focuS froM coSt to value

Equipment is critical

Prev. Us

Sc

smart

order and roll up total cost to the equipment, system and plant levels. With small adjustments, the CMMS also tracks the cost of failure. These best practices identify where costs were incurred: • Include manpower and contractor rates in the CMMS set-up.

• Do the same for materials, consumables and spare parts costs.

• Charge special tools to the work orders.

• Prepare monthly reports showing expenditures for each type of maintenance activity applied to major equipment, the system, plant or site. Such reports identify variances from the budget.

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major tenet of Japanese maintenance thinking is that a machine’s performance is worst when it’s new. The maintenance team’s task is to improve it. And an American maintenance guru once said the best maintenance is no maintenance, but that’s not the world we live in, so the next best thing next is to play it smart. Fortunately, we have experts who guide and encourage us to implement and practise smart maintenance.

One of these is Ben Stevens, the former president of OMDEC (Optimal Maintenance Decisions Inc.) who now focuses on training and consulting in maintenance management and reliability. He believes maintenance professionals have to be business managers who switch the focus from cost to a value.

Backlog management, for example, is an effective way of ensuring that work done keeps up with work required. It consists of work started and on schedule, but not yet completed; not completed and behind schedule; planned and scheduled, but not started; and waiting to be started, but not planned or scheduled.

Best practices include: reviewing work weekly based on priority; examining reasons for delays; changing priorities for work that requires more timely response; and initiating action for a top priority but delayed work orders.

A lack of spare parts interrupts the smooth execution of maintenance tasks and is one of the main reasons for time and cost overruns, unexpected failures, and below par equipment operation.

Stevens says spare parts management should be applied differently to parts that are commonly used and relatively lowcost, and slow-moving, high-cost parts.

The first category is best managed using the spare parts module of a CMMS. Key data for each stocked part (part number, description, preferred vendor, cost and delivery terms) should be recorded. Establish minimum and maximum inventory levels, along with an economic order quantity. Record receipts, issues and returns to maintain current levels. When issues reduce the levels below minimum, the CMMS automatically issues purchasing requisitions.

Reserve parts for high priority orders so they won’t be used for other jobs.

High-cost, critical parts require a different approach. Lead times are typically long and the high cost of spares suggests it’s not cost-effective to keep too many on hand. The best practice is to establish the level of reliability needed from the equipment and the spare part, factor in failure frequency, lead times and replacement cost, and calculate the number of spares needed to meet the desired reliability.

Maintenance cost control is another of Stevens’ favourite subjects. He says the CMMS work order process is capable of accumulating costs against each work

PLANT 17

12-09-06 8:48 AM

Operations

>> think Lean

Project

fail-safe

10 stEps to EFFEctivE FMEA

Deploy the failure modes and effects analysis (FMEA) tool when your plant is about to introduce a major new project or process.

By RichARD Kunst

D

uring an “extreme plant makeover assignment,” the client company was presented with a potentially huge opportunity to expand its business. There were many meetings and much discussion about capabilities and the viability of accepting the challenge, but the president was tiring of talk that wasn’t resulting in traction. Meanwhile, the customer needed confirmation that the transition could be accomplished seamlessly since the project would include transferring some critical equipment.

The team was advised a failure modes and effects analysis (FMEA) was needed.

It’s a powerful tool that should be employed whenever a significant new project or process is to be introduced. The team’s reaction? Blank stares.

For those of you who are also unfamiliar with the tool, there are three main types.

Capture the voice of the customer using the tools of a CT Tree (Critical To … Quality, Delivery, Cost). Transferred into a SIPOC (supplier, input, process, outputs, customer), A system FMEA analyzes complete your objective should be outputs, which is then validated through the process map, or even better, the value stream map. systems and/or sub-systems during the concept or design stage.

The design version analyzes a product design before it’s released to manufacturing.

And the process/project FMEA, probably the most commonly used, analyzes manufacturing and/or assembly processes.

Creating a FMEA It’s not a new tool. The aerospace industry used it during the Apollo missions in the 1960s, and in 1974 the US Navy developed MIL-STD-1629, which discussed the proper use of FMEA. It was also adopted at about the same time by the automotive industry. Today it’s used by many industries. Here are 10 steps to creating one: List the key process steps in the first column. These may come from the highest ranked items of your cause and effect (C&E) matrix.

Figure out how the process steps or inputs that could go wrong and list the potential failure mode for each one.

List the effects of this failure mode. What does it mean to the company and the customer?

Rate the severity of the effect on a scale of one to 10. Don’t bother trying to copy it out of a book – make it your own. Ensure the team understands and agrees with it before you start.

Identify the causes of the failure mode/effect and rank it as you did the effects in the occurrence column. Score based on how likely the cause will occur.

One means it’s highly unlikely to ever occur and 10 means expect it to happen all the time.

Identify the controls that will detect the issue, and rank their effectiveness in the detection column. One means excellent controls and 10 means no or extremely weak controls. If a SOP (standard

1.

2.

3.

4.

5.

6.

18 PLANT

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Build your cause and effect matrix using the process map to identify all inputs and outputs and defining vulnerability.

Your advanced contingency plan, embedded within our FMEA.

severe), occurrence of 10 (happens all the time) and detection of 10 (can’t detect it), the RPN is 1,000, which means “serious issue, all hands on deck.”

Sort by RPN number and identify the most critical issues. The team must decide where to focus first.

Assign specific actions to responsible persons.

Include a completion date.

Once actions have been completed, re-score the occurrence and detection. In most cases, the severity score won’t change unless the customer decides it’s not an important issue.

Of course, the most avoidable failure mode is completing the FMEA document, then storing it in a file cabinet. Use this tool!

8.

9.

10.

Build your FMEA by ranking each potential cause to the entire process and giving it a vulnerability rating along with potential alternatives or solutions.

operating procedure) is noted (a weak control), jot down the number.

Multiply the severity, occurrence, and detection numbers, then store this value in the RPN (risk priority number) column. It will identify where the team should focus first. In the event of a severity of 10 (very

7.

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

Comments? E-mail jterrett@plant.ca.

September 2012

12-09-04 10:14 AM

Proactive Management << Operations

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power and light eliability-centred maintenance (RCM) and DP7000 cord reels plays an important role at Vale’s (formerly Inco’s) Copper Cliff, Ont. nickel refinery in the development of the right proactive work. The refinery eliminated www.reelcraft.com | 800-444-3134 mechanical breakdowns at its pellet decomwww.plantmagazine.ca/rsc/ 113 poser and extended the operating period between overhauls from one week to three.

Vale S.A., based in Brazil, is one of the Vale’s Copper Cliff south mine.

PHOTO: P199 world’s premier mining and metals compaRCM2 facilitators. The groups defined optimal proactive nies and the second-largest producer of nickel, delivermaintenance programs, identified critical spare parts, ing 20% of the global supply. Its main strategies are to validated equipment modifications and documented pursue profitable growth, enhance its marketing posistandard operating practices. tion and maintain low-cost operations focused on highWITH CREFORM 42mm PIPE. The reactor ball mill RCM2 analysis resulted in the margin production and minimal maintenance expenses. creation of new condition-based preventive mainteFor these strategies to work, Vale’s management recognance tasks to replace previous PM programs that were nized optimizing asset performance is critical. predominantly time-based and reactive. The groups also The nickel refinery needed to address failures on two pinpointed equipment modifications deemed necessary critical pieces of refining equipment: the reactor ball to increase reliability of the reactor ball mill. These mill and the pellet decomposers. were not costly and included installation of: The reactor ball mill is used at the end of the second • an automatic pre-lube system to the babbitt bearings; stage of the refining process and removes trapped gases Simplify and strengthen structures. Creform unique 42mm • a new oil spray system on the bull gear; and from the ore. Frequent breakdowns of this crucial pipe is 2-1/2 times stronger than standard 28mm pipe so • infrared temperature indicators to monitor bearing piece of equipment occurred when throughput had to structures can be built in less time using less material. Build temperature. be increased to meet market demand while reducing wide-span, heavy-duty, high-capacity structures as simple, open designs using less bracing and joints. And structure Vale’s Copper Cliff nickel refinery achieved its goal operating and maintenance costs. Vale concluded that possibilities are virtually limitless because 42mm/28mm of reduced maintenance costs while meeting increased a substantial portion of this increase could be achieved transition joints give you access to all of Creform’s 700-plus production demands by employing RCM2 to develop an by improving the reliability of key assets, thus raising 28mm components and accessories. understanding of failure potential and by implementing production capacity.

Let Creform show you how to hold more using our 42mm pipe the right proactive work. and joint system.

A change in approach was needed. Despite all the The refinery also changed its related procurement and money being invested in maintenance, the equipment spares management strategies, revamped PM programs performance was unsatisfactory and the prevailing and involved operators to conduct condition-based strategy was inadequate. More of the same would not w w w. c r e f o r m . c o m • 8 0 0 - 8 3 9 - 8 8 2 3 maintenance inspections. As a result, the Copper Cliff bridge the performance gap. www.plantmagazine.ca/rsc/ 114 refinery has experienced no unscheduled downtime of The solution was a comprehensive RCM2 analysis on the reactor ball mill since implementing the findings of CRE-393 3.375x4.875.indd 1 the reactor ball mill and the pellet decomposers to de3/27/12 PReMIuM PRoduCtS And SeRVICeS thAt the analysis. velop a strategy that would ensure the execution of the delIVeR effeCtIVe And fASt ReSultS These findings changed the company’s maintenance right work at the right time. Analysis was ably assisted program, and the process helped maintenance, operaby Ivara Corp., an international asset management softKunst Solutions Corp. is a holistic professional firm dedicated to helping our client partners change their business from the inside out. tors and management better understand production ware and consulting services provider headquartered in Partnering with business leaders, we drive transformational change equipment, capture employee knowledge before key Burlington, Ont. across all parts of the enterprise - Lean Practices in Production, Supply Chain Management, Financial Operations, Information individuals would retire, and avoid the risk of crippling The RCM2 work involved workshops with the mainManagement, Human Resources, Strategic Planning, Administration. and expensive equipment failures.—Steve Gahbauer tenance and operations personnel, led by Ivara-trained

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PLANT 19

12-09-04 11:07 AM

Innovation

>> Commercialization

Good

VIBRATIONS Intense R&D is responsible for making a Canadian “sexual wellness” product dominate the competition.

BY: MATT POWELL, ASSISTANT EDITOR

C

anada has a lot to be proud of when it comes to innovation. We’re still responsible for some pretty famous technologies, including Jacques Plante’s famed goalie mask, the Canadarm, and those little hand-helds known as the Blackberry. Now we can add a revolutionary sex appliance that has sold more than two million units worldwide.

Standard Innovation introduced the We-Vibe, a C-shaped stimulator for two, in 2008. Inventor Bruce Murison, an ex-Nortel engineer, spent five years of intense R&D developing the dual-stimulator for middle-class couples looking to spice things up in the bedroom or elsewhere. Today, the company’s revenues top $40 million.

“It’s the first of its kind,” says Grant Beckthold, Standard’s vice-president of product development. “Bruce [Murison] wanted to develop a device that stimulated both the G-spot and the C-spot for a woman, but also stimulate a man because there was a gap in that market.”

Unlike the typical phallic-like options considered the industry norm found in typical sex stores or online, Standard has taken the mass market approach as sexuality and the use of appliances becomes a more open subject of social dialogue. The We-Vibe is now carried in major retail chains such as London Drugs and Rexall in Canada, and Walgreens in the US, marketed as a sexual wellness product that enhances intimacy without the kink.

And it’s outselling competitors threeto-one.

Mass marketing sex Sarah Bobas, Standard’s marketing manager, says the We-Vibe has had companies such as Trojan and Durex, market leaders in sexual protection and enhancement products, to thank for its acceptance into the mass market.

“Those kind of companies have developed products with vibratory technologies and they’re sold in typical drug store-type retail outlets,” she says. “That definitely opened up shelf-space for our product because it has nothing to do with the stigma that’s typical with other products in our space.”

We-Vibe also made it to The Dr. Oz Show, and was included in swag-bags at the Oscars and the Super Bowl.

The latest generation is waterproof and has a remote control, two features the

20 PLANT

20-21-newPLNT.indd 20

company says were installed thanks to customer feedback. It sells for between $80 and $150, depending on the model.

“People are more open about sex as a part of regular day-to-day life, and they’re more comfortable with it in mainstream forums and mainstream conversations,” adds Bobas. “They don’t need those adult stores as much anymore because of that, and now that we’ve done it, more companies are moving towards the sexual wellness position to meet that mainstream requirement.”

Exposure, if you will, has definitely helped boost We-Vibe’s sales, but Beckthold says the innovation behind it is the real selling point, making the device a “game-changer”.

“There hasn’t been this kind of innovation in the sex industry in 20 years,” he says. “The We-Vibe’s gone viral because of the science behind it. I don’t know another time you’d see Dr. Oz showing off a sex toy on national TV.” In-house expertise is what sets Standard apart from the competition. Most of his staff are

ex-tech sector workers with at least 20 years experience in the space, creating products that break traditional perceptions.

“We are challenging moulding techniques, we are challenging the materials that are traditional with this industry,” he says. “The companies in our industry space don’t do what we do.

The We-Vibe, which is manufactured at two plants in China, uses medical-grade silicon, which is another breakthrough from traditional products often made of cheap plastics and latex. The silicon, which is produced in Belgium, is the same stuff used to make nipples for baby bottles and medical implants.

“We’re definitely not using the silicon as an intended supplier use,” jokes Beckthold.

Those silicons also present engineering challenges when it comes to moulding.

“The silicon has to be over moulded to less than one milimetre all over the (C-shaped) piece, so that process alone

INNOVATION GETS SEXY

is one that’s highly complex and requires some pretty intense engineering,” he says.

The We-Vibe’s internals are also extremely complex. Because of restrictions when it comes to size (the unit has to be small enough to fit inside the woman’s pelvic area without becoming an impediment to stimulation), miniturization is key to the tiny motors used.

Although many of the specifics when it comes to the guts of the unit’s operation are under wraps, Murison designed the original using a nylon product to encase the spine that provided necessary flex and strength requirements to

a steady rumble, whereas competitor products simply buzz, which don’t resonate throughout the body as well.”

Beckthold says it’s about more than just about throwing a motor into the unit: it’s about understanding the engineering necessary to transmit weight inside to meet desired frequencies.

“It’s not just a transmitter of mechanical parts. We’re developing an understanding of transmission requirements and direction properties to move vibration around the unit as we need it to,” he says.

Before all of this, however, Standard puts in motion a rigorous testing and prototyping phase using 3D printing and 3D mannequin technologies that analyze

Two million of these We-Vibes are helping couples worldwide maintain their “sexual wellness.”

variables in the design to make sure everything fits.

Beckthold believes this high-intensity engineering has turned Standard into more than just the Canadian company that’s producing the world’s most popular sexual wellness product. It is also developing an impressive R&D portfolio that’s opening other market spaces.

While the details are under wraps, Beckthold says the company has already developed a portfolio of more than 60 projects – some of which will explore sensory feedback.

“We have a three-year strategic R&D plan and in there, there’s some technologies that are not that far-fetched,” he says. “I’ve got more potential projects than I have people to do them.”

And that’s also part of the plan. The company is set to boost it’s global headquarters by 14,000 square-feet, enough room to double its engineering team and target revenues of more than $100 million. That amps up the sex appeal considerably.

PHOTO: STANDARD INNOVATION

avoid internal fractures. Engineering the motors is difficult because they need to be small, but also strong enough to support the internal weights. Those weights that react to different situations thanks to an on-board microprocessor that’s loaded with a big chunk of software and encryption.

Complex engineering “A lot of the motors in other devices remind me of toy car motors, which aren’t engineered,” says Beckthold.

“Ours are engineered to meet frequency requirements, which is why there’s an on-board computer in this thing. We’ve got complex little sensors in the units so they can sense certain things and take action as a result.”

“The We-Vibe is as good as it is because of the type of power and vibration levels it can hit,” says Bobas. “It achieves

Comments? E-mail mpowell@plant.ca

September 2012

12-09-06 8:46 AM

CIEN ad 06_12_2_Layout 1 12-06-08 12:12 PM Page 1

automotive r&d >>

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built better

AUTO21 researchers are looking at ways to better protect occupants from side collisions with tractor-trailers.

PHOTO: THINKSTOCK

Under-ride protection

MaKing tHe roads saFer For sMaller Cars

BY MoUstaFa el-gindY

W

ith the rising price of gasoline and the demand for lower fuel consumption, automotive OEMs are designing smaller, more efficient vehicles that also pose a danger to occupants. In a collision, smaller cars wedge or under-ride trucks or trailers, intruding into the passenger compartment causing serious injuries and fatalities.

Rear under-ride guards enhance safety and have saved many lives. But regulations have ignored side collisions that occur at a comparable rate to rearenders, yet pose far greater risks for car occupants (plus environmental issues when tankers are involved).

Research in passive front and side underride guards is under way, with secondary protection coming from air bags and accurate relative lateral positioning of the car using wireless and sensing technologies.

A small car with both devices could brake prior to the collision and deploy airbags, which would be absorbed by the guards and prevent under-ride and intrusion.

A new project funded by the AUTO21 Network of Centres of Excellence is developing lightweight guards for tractor-

trailers with enhanced energy absorption properties to diminish the impact.

A range of scenarios will be explored through designs and test-crashes followed by performance analysis using an advanced, finite element-analysis software called LS-DYNA. The team is also exploring wireless proximity sensing techniques and preemptive airbag deployment algorithms. The test program adds guards to the transport and new safety features to cars and their performance. Dummies demonstrate how the occupants would be affected.

Researchers from Concordia University, the University of Ontario Institute of Technology and the University of Regina are working on the project, funded in part by Volvo Group Trucks Technology.

Results of their work could lead to new devices that will make North American roads much safer for smaller cars.

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www.dvsystems.ca sales@dvsystems.ca 1-800-668-8558 www.plantmagazine.ca/rsc/ 118

Moustafa El-Gindy is a professor at the University of Ontario Institute of Technology and a project leader with the AUTO21 Network of Centres of Excellence. Visit www.auto21.ca.

Comments? E-mail jterrett@plant.ca.

Pneutrans Systems Ltd has created a Wet portable vac to pick up large quantities of water or oils from a variety of Industrial applications, such as electrical Transformers.

Itâ&#x20AC;&#x2122;s versatility and ability to accommodate a variety of hose sizes allows it to remove moisture from wet tennis courts, ice rinks, processes and floors.

With a 250 imp gallon capacity 15HP exhauster 12in.Hg.Vac. 75dba sound level. Forklift pockets on coasters, MegaVac complete itâ&#x20AC;&#x2122;s tasks quietly and efficiently.

For more information on MegaVac, contact Pneutrans at:

1-800-461-6180 (732)-460-9500

www.thornegrouptech.com/pneutranssystems www.plantmagazine.ca/rsc/ 116

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PLANT 21

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Materials Handling << Technology

>> Supply Lines

Contouring gimbal head machining the ports on the diesel engine block.

PHOTO: MAG

PHOTO: THINKSTOCK

mAG’s GIANT u6 rEAdy To mILL

bots boost

PRODUCTIVITY

Kiva mini-bots (inset) at work instead of moving stuff with a forklift.

PHOTO: KIVA SYSTEMS

NO HUMAN HANDS NEEDED

Kiva Systems automates inventory management and order fulfillment with minirobots.

BY: MATT POWELL, ASSISTANT EDITOR

M

anufacturers are always looking for ways to cut costs while enhancing productivity.

For those with lots of materials that need to be moved on shop floors and in distribution centres (DC), a Boston company’s footstool-sized mini-robots (or “bots”) will get the job done.

Kiva Systems, a material handling technology outfit founded in 2003 with revenues of more than $100 million and a workforce of 240, has developed ubercool, Roomba-like Kiva bots that scoot around shop floors and DCs to pick and place materials and fulfill orders for heavy-hitting customers such as the Gap, Staples and Crate and Barrell.

The bots apply “distributed intelligence” using material handling equipment and software to complete a goodsto-man warehouse automation system.

Now on the third generation, Kiva’s little helpers have had such an impact

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on the market that they attracted the attention of Amazon.com, which acquired Kiva Systems for $775 million. The deal has ruffled the feathers of a few supply chain experts, though. They suggest Amazon acquired Kiva to keep the technology out of its competition’s hands, according to an article by PLANT’s sister magazine, MM&D (Materials Management & Distribution – www. canadianmanufacturing.com/distribution-and-transportation/news/ amazon-buys-kiva-systems-58550).

Working wirelessly The little orange robots, which are assembled in the US, are offered in two models, and named according to their lift capacity – DU1000 and DU3000 – each outfitted with wireless communication to accept orders on the floor without any physical human interaction. The bots, however, aren’t the only pieces in the system.

Shelving units called pods collaborate with the bots along individually designed materials supply chains, coordinated by a pathway system of bi-directional bar code stickers on the floor that tell the robots where to go when they’re fed an order. Bringing them all together is a collection of workstations, wireless networks and a server-based back-end that

communicates between the software and the robots roaming the floor. The benefit, aside from the streamlined pick and grab process, is the elimination of bulky and expensive conveyor systems, and fewer human material handlers.

Kiva says the system doubles the output per worker over other solutions and cuts order cycle times to as low as 15 minutes. Amazon credits the Kiva system with doubling productivity and cutting energy consumption in half at its Zappos distribution centre, an online apparel retailer it acquired in 2009.

But this ease of use comes with a fairly hefty price-tag. A system that requires a fleet of more than a thousand robots can cost up to $20 million, which includes the six months of planning, simulated modelling, testing and logistics manager training required to run it all smoothly.

A start-up kit sells for about $2 million.

The company has focused more on e-commerce and retail customers, but now has eyes on manufacturers looking to better manage inventory processes and order fulfillment operations.

Check out this link for a video of the bots in action: http://www.kivasystems.com/solutions/vertical-storage.

One of MAG’s newest product developments, the giant 6-axis U6 bridge-type portal mill, is completing its runoff in Hebron, Ky., prior to shipping later this year.

The global machine tool and system company with offices in Mississauga, Ont., says the 154-tonne machine is outfitted with five interchangeable cutting heads, including two custom designs to allow five-sided machining on oversized diesel engine blocks and industrial components.

It’s also energy-efficient. An all-electric design eliminates hydraulic noise and maintenance issues and replaceable low-friction linear guideways improve axis responsiveness to reduce energy consumption.

Delivering up to 74.5 kW (100 hp) into the cut, the machine can complete all six sides of a 5,900 kg (13,000 lb.), 16- or 20-cylinder diesel engine block in 30 hours using just three setups.

$80m Add-oN dEAL for AvCorP Avcorp Industries Inc. has signed a fiveyear contract extension to provide the wheel well for the Boeing’s 737 aircraft.

The contract is worth close to $80 million over five years and also covers assemblies and components that support the next generation 737, 747-8, 767 and 777.

The company said the parts and assemblies will be manufactured at Avcorp’s facility in Delta, BC.

INTELLIGrATEd ACQuIsITIoN Is ComPLETE Permira’s $500 million acquisition of Intelligrated, a manufacturer of automated material handling products, is complete.

The European private equity firm will support Intelligrated’s growth within North America and emerging markets, invest in new products and expand the company’s global capabilities.

Intelligrated will remain headquartered in Mason, Ohio, with operations throughout the US and in Canada, Mexico and Brazil.

Comments? E-mail mpowell@plant.ca.

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CIEN >> Product Focus

Air Systems AIr hosE kEEPs IT CLEAN

CAPTurE CoNTAmINANTs AT ThE sourCE

The smooth interior of Flexaust’s Flexadux T-7 white clean room hose minimizes friction loss to deliver efficient air flow for fume extraction, dust control and light material handling applications.

Capable of operating over a -40 to 121 degrees C range, this mediumweight thermoplastic hose is reinforced with a spring steel helix for chemical, moisture and abrasion-resistance.

It comes in standard 2 to 12 in. (ID) sizes, with wall thickness of .030 in. (.025 in. for 2 in.) and custom sizes to 24 in. supplied in 25- (7.6 m) and 50-ft. (15.2 m) lengths.

Flexaust is a Warsaw, Ind.-based manufacturer of industrial hose. www.flexaust.com

Airflow Systems Inc.’s PCH portable systems collect airborne contaminants, preventing them from migrating through your plant.

The patented E-Z Arm High Flow Extractor external arm support eliminates airflow resistance to produce higher levels with lower power requirements.

Powered by a dynamically balanced, non-sparking, all-aluminum motor, the PCH unit collects contaminants directly at the source without the risk of igniting volatile dusts.

Airflow Systems, a manufacturer of industrial air filtration systems based in Dallas, recommends the system is suitable for a wide range of particulate types, including: chemical, pharmaceutical, and food processing dusts and powders; buffing, polishing, and grinding dusts; weld smoke; fumes and odours; and oil mists.

Interior minimizes friction.

www.plantmagazine.ca/rsc/ 1

APPLy morE INdusTrIAL vACuum musCLE Nilfisk CFM T Plus three-phase vacuums deliver the cleaning muscle needed for continuous applications in plants.

The Pluses include T26, T48 and T63 models, which are loaded with advanced features. Cleaning and improved sanitation come easily thanks to a heavy-duty steel frame, polypropylene lid and 26-gallon stainless steel collection bin. Nilfisk Industrial Vacuums, a manufacturer of industrial vacuums based in Morgantown, Pa., says the high efficiency main filter and upstream HEPA filter ensure 99.995% of hazardous or toxic particles are retained, down to and including 0.18 microns.

Next-generation vacuuming.

For added safety, a phase indicator prevents the machine from starting if the electrical input signal is out-of-phase.

Options include: an optional downstream exhaust ULPA filter or activated carbon filter; a dust bag or Longopac for safe disposal of toxic and hazardous material; and upgraded automatic filter cleaning, wet or dry level sensors and remote start/stop. www.nilfiskindustrialvacuums.com

GAs ANALysIs for 50 mbAr Pfeiffer Vacuum’s SPM 220 sputter process monitor and HPA 220 high pressure gas analysis systems monitor and document vacuum processes.

The SPM 220’s ion source makes a direct connection between the analyzer and the process chamber. Vacuum conditions of sputter processes and similar applications are monitored without the time delays of an inlet system, at a pressure up to 10-2 mbar. An additional orifice system expands the pressure range up to 10 mbar.

The HPA 220 offers inlet valves that are manually and electro-pneumatically operated, and it handles a pressure range from high vacuum to 50 mbar.

Digital and analogue inlets and outlets connect to process control systems. Operating software features a clearly laid out user interface and simple documentation of measurement results.

Pfeiffer Vacuum North American is a manufacturer of vacuum solutions based in Nashua, NH. www.pfeiffer-vacuum.com www.plantmagazine.ca/rsc/ 4

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Controls temperatures.

LowEr your PLANT’s ThErmosTAT

Rosler dust collectors (RDCs) capture and filter dry dust and fumes in tough environments.

Filters use patented UniClean Technology for efficient capture of particulates and extend cartridge life.

The units are made of galvanized sheet metal to eliminate corrosion issues. A wide pleat cartridge handles difficult dust applications while the vertical avoids excessive dust build-up.

Rosler is a Battle Creek, Mich.-based manufacturer of surface finishing equipment. www.rosler.us

Serco’s high volume low speed (HVLS) fans cut energy costs thanks to the laws of physics and aerodynamics.

It moves a massive column of air slowly to create a deep horizontal floor jet that circulates the air in large spaces. The gentle, non-disruptive breeze breaks the moisture-saturated boundary layer on the skin, providing an 8- to 10-degree cooling sensation. In colder months, fans run in reverse to circulate the hot air trapped at ceiling level.

In extreme or humid environments, the fans exhaust air to prevent moisture buildup.

The Velocity series comes in a variety of sizes and motor horsepower for various applications.

Serco is a Carrollton, Tex. manufacturer of specialty hydraulic dock levellers, safety products and programmable control systems. www.sercocompany.com

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Filtering in tough environments.

CoLLECT dusT IN TouGh ENvIroNmENTs

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Minimal energy consumption.

The PCH-1 comes with a 0.5-, 1.0- or 1.5-hp motor capable of airflow rates up to 800 cfm. The PCH-2 has a 1.0, 1.5- or 3-hp motor with air flow rates of up to 1,200 cfm. airflowsystems.com www.plantmagazine.ca/rsc/ 6

dusT CoLLECTING for CoNTINuous oPErATIoNs Nederman Canada Ltd.’s FMC reverse cartridge dust collector handles process filtration and dust collection during continuous operations in industrial process filtration and dust collection applications.

The cartridge, employing UniClean technology, is compact with side removal for easy maintenance. It accommodates two sizes of filter elements (standard and long) to fit into spaces where there are height and/or footprint constraints.

Air volume range is 3.100 to 21.000 m3/hr. (1,825 to 12,300 cfm).

Made of galvanized steel and weatherproofed, the cartridge includes an integral pre-separation chamber, and efficient cross flow/down flow inlet air pattern and a wide range of integral or remote fans.

Nederman is a manufacturer of industrial air filtration systems with a Canadian office in Mississauga, Ont. www.nederman.com www.plantmagazine.ca/rsc/ 7

Efficient air cross/down flow.

September 2012

12-09-05 12:05 PM

Products and Equipment << Technology MOTION CONTROL PrECIsE moTIoN IN A smALL fooTPrINT

CIrCuLATE your PLANT's AIr sTrEAms FHRV fibreglass hooded roof ventilators from Continental Fan Manufacturing Inc. keeps air moving in corrosive environments and contaminated air stream applications.

An FRP airfoil axial impeller has factory set blade pitch for precise performance matching. The rugged fan housing with hood is constructed of UV inhibited Hetron 99 P polyester resin, with a Class I flame spread of 25 or less.

The roof ventilators are available in diameters from 12 to 60 in. in either direct drive or belt drive versions, with capacities up to 60,000 cfm.

Continental Fan Manufacturing is a manufacturer of ventilation equipment based in Buffalo, NY. www.continentalfan.com www.plantmagazine.ca/rsc/ 8

Engineered air nozzle.

ChIP shIELds ProTECT durING bLowoff Plant blowoff, drying and cleaning is now safer. EXAIR Corp.’s safety air guns come with chip shields that operate with or without an extension pipe.

The polycarbonate shield protects operators from flying debris or keeping coolant from splashing everywhere during drying operations and they’ll fit safety air guns you currently use.

The guns use engineered air nozzles that maximize entrainment of room air while minimizing compressed air consumption. The lightweight Precision Safety model is the most comfortable to operate during periods of extended use.

The Heavy Duty and Soft Grip Safety guns have a durable cast aluminum body for rugged industrial use.

EXAIR, based in Cincinnati, is a manufacturer of compressed air-operated products for industrial plants. www.exair.com/cs.htm

www.plantmagazine.ca/rsc/ 10

ametoronto.org

Precise impelling.

Haydon Kerk Motion Solutions’ microslide linear actuator delivers precision motion in a small footprint for applications such as microfluidics and optical positioning.

It has a resolution of 15 microns/step and a maximum load of 13 N. The microslide is approximately 22 x 25.2 mm and is capable of up to a 64 mm maximum stroke length.

A lightweight anodized aluminum base plate houses the lead screw bushing and is rigidly attached to the aluminum motor mounting plate.

At the heart of the slide is a 15000 Series 15-mm can-stack motor. The LS15 stepper motor requires no complicated controls and is commanded using a simple pulse and direction signal.

The slide load carriage is made from self-lubricating polyacetal and

features a built-in clearance take-up mechanism for load rigidity during motion.

The carriage is supported by stainless steel guide rods coated with Black Ice TFE coating.

A Kerk lead screw is 303 stainless steel and comes in five different leads including 0.3, 0.4, 0.5, 1 and 2 mm. When combined with the LS15 stepper motor, very fine positioning resolution is Commanded by achieved with the microscrew. a simple pulse.

The microslide is easily configured for application-specific requirements including custom mounting, different stroke lengths up to 64 mm, magnetic or optical position sensors, and custom wire harnesses.

Haydon Kerk Motion Solutions in Waterbury, Conn. is a unit of AMETEK Inc., a global manufacturer of electronic instruments and electromechanical devices. www.haydonkerk.com

Share•Learn•Grow OCTOBER 21-25, 2013

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Some of these walks will drive home the challenge of making horizontal thinking work in a vertically managed world. They will teach you how to walk the Gemba and look for the real value that accelerates throughput velocity improvement. Other walks apply powerful Kata thinking that advance you to the next target state.

These valuable “real” walks will be coached and taught by world-renowned Gemba and Kata experts. Plus, all our plant tours will be conducted as Gemba walks that showcase our hosts’ best practices along their value stream. Accelerate your journey—walk with us and learn how to break through to your leading edge.

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22-25-CIEN PGS.1.indd 25

PLANT 25

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Note: This is an exclusive offer only available to AME Members, Alliance Partners and Plant Magazine subscribers during the limited time noted above.

12-09-05 12:05 PM

Only one reel increases workplace safety and efficiency.

cieN EnErgy ModuLe eLiMiNATes MoNiToriNg coMPoNeNTs WAGO Corp.’s 750-493 3-phase power measurement module carries UL 508. The dropin unit eliminates stand-alone monitoring components and supplies UL 508A industrial control panels with energy consumption and machine health data.

A fieldbus-independent 750-493 also simplifies data integration into ethernetbased energy optimization plans via FTP technology.

3-phase power The module measures voltmeasurement. age and current to calculate energy consumption and power factor at the incoming power source. Programmable via WAGO-I/O-PRO CAA software, it performs data logging (down to a minuteby-minute basis per machine) and time-stamping. The module also supports trending analysis using Microsoft Excel, correlating usage data with utility prices. This creates opportunities to economize operations by aligning one production line with off-peak rates.

The 750-493 also economizes building automation by monitoring loading, balance and phase loss of lighting circuits and HVAC power lines.

WAGO is a Germantown, Wis. manufacturer of spring pressure connection technology. www.wago.us

without an earth ground connection.

All models are approved to EN 60950 and are compliant to the Energy Star specification and ErP directive 2009/125/EC. The series is certified to CE and is RoHS compliant.

Each model is specified for operation over the wide operating temperature range of Functions without an -25 to 60 degrees C. earthbound connection.

MicroPower Direct is a supplier of power and power conversion products based in Stoughton, Ma. www.micropowerdirect.com www.plantmagazine.ca/rsc/ 12

METALworKIng

www.plantmagazine.ca/rsc/ 11 Made in U.S.A.

You demand a productive, efficient workplace that’s compliant with safety regulations.

Hannay Reels delivers.

• Protect hoses and cables from damage • Rugged durability for lifetime value • All reels built to spec • Most reels ship within a week Our dedicated dealers know your business and get it right the first time.

Improves lubricity.

PowEr

BoosT TuBe ANd PiPe uP-TiMe

BoosT BoArd-LeveL Power APPs The MPM-04E single and dual output 4 W AC/DC power supplies from MicroPower Direct meets “Green Power” requirements and provides small size, robust performance for board-level applications.

Ten standard models operate from a universal input of 85 to 264 VAC and provide tightly regulated outputs of 3.3, 5, 9, 12, 14, 15, 24, +5/+3.3, +12/+5, ±12 or ±15 VDC; filtering to EN55022 Class B; I/O isolation of 3k VAC; and tight line/load regulation.

All models are protected for overload, overvoltage, and short circuit faults. The MTBF of the MPM-04E series is greater than 330 k hours.

The MPM-04E has a Class II input (IEC61140) for use

Increase productivity in tube and pipe operations with CIMMILL Fluids from CIMCOOL Fluid Technology to improve lubricity, rust protection and sump life.

Formulated to increase productivity by up to 20%, they boost foam control, improve tool life and increase up-time during roll forming, cut off and threading operations.

Ten variants cater to applications such as boundary lubricity in roll-forming progressions, precision threading, cutoff and scarfing materials that include culvert pipe, stainless steel and aluminum.

CIMCOOL Fluid Technology is a manufacturer of metalworking fluids based in Cincinnati. www.cimcool.com www.plantmagazine.ca/rsc/ 13

You manage expenditures to get the best value so when evaluating chilling systems consider that Berg Chilling ranked number 1 against its competitors in all criteria in an independent survey*.

• Product Quality • Environmental Impact • Reliability

• Installed Costs

• System Design

• Capital Costs

• Delivery

• Operating Costs

• Warranty

• Most Likely to be Recommended

Trust Berg to make every dollar count.

Find your local dealer: hannay.com or 877-467-3357

Hard earned, wisely spent.

Eco-positive, thermal management solutions

www.berg-group.com System Design | Installation | Service * Independent study: Rogers BPPG, Research Group

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26 PLANT

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Products and Equipment << Technology CABLIng

Panel mount connectors are available with four, five and eight gold-plated contacts in male and female versions that accept a maximum wire gauge of 16 AWG and transmit currents of up to 8 A. Four and five-pin panel mounts position in 4 x 90 degree steps. When fully mated, the connectors are IP67 rated for protection against liquids and debris.

Binder-USA, based in Camarillo, Calif., is a subsidiary of Franz Binder GmbH & Co., a German manufacturer of circular connectors and cordsets for use in industry. www.binder-usa.com

an on.

Eliminates drift.

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Split looms manage and conceal wires.

coLour-codiNg siMPLiFies cABLiNg Simplify cable organization and management with colour-coded polyethylene and nylon wire routing split looms from Micro Plastics.

The company, a Flippin, Ark. manufacturer of plastic fasteners, makes all sizes of nylon split looms in orange for applications where identification is critical to safety.

Polyethylene units are also available in red, yellow and green in six standard sizes, 1/4 in., 3/8 in., 1/2 in., 5/8 in., 3/4 in., and 1 in.

They conceal and protect wires from abrasion, puncture, vibration and corrosive fluids.

Flexible and kink-resistant, they also have an easy opening seam, which simplifies insertion and the removal of wires. www.microplastics.com www.plantmagazine.ca/rsc/ 14

ConnECTorS & FITTIngS

stroke-reversal points.

Servo-accurate performance maintains consistency over time, eliminating the drift inherent to hydraulic machines. Automatic geometry correction straightens blind bores and vertical spindle orientation allows the machine to make interrupted bores, where the weight of the tool and drive shaft on a horizontal hone increase the potential for washout around ports.

Sunnen is a manufacturer of bore sizing and finishing equipment based in St. Louis, Mo. www.sunnen.com

Improves EMI performance.

MAKe A LigHTer coNNecTioN TE Connectivity’s AMPLIMITE Ultra-Lite D-Subminiature connector, which is 15% to 20% lighter than its brass counterparts, is ready for blast-off in satellites and launch vehicles.

The non-magnetic connector, made of a one-piece, lightweight aluminum shell and mateable with other DSubminiature units, delivers a 10-20 dB improvement in EMI performance and meets M24308 requirements.

It has a temperature range of -55 to 125 degrees C and comes in vertical or right angle PCB mount versions.

TE Connectivity is a manufacturer of power and data flow components based in Schaffhausen, Switzerland. www.te.com

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get to the

finish line

Epoxy Adhesive Cures Rapidly in Thick or Thin Sections Two Part System EP30-4 •

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Low viscosity

•

Excellent optical clarity

•

Rigid bonds

MACHInIng AccurATe MAcHiNiNg For oiL ANd gAs coMPoNeNTs

SEnSorS seNsors reduce iNsPecTioN TiMes

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• • • • •

Hackensack, NJ 07601 USA +1.201.343.8983 main@masterbond.com

www.masterbond.com

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Transfer Carts

Industrial Maintenance Manufacturing Mining Nuclear

Heavy Load Movers www.transfercart.com

Use with fork lifts & overhead cranes for material handling.

Capacities up to 60 tons

Proudly Canadian

On-Rail ed

lifting systems

wIZprobe laser-scanning sensors from nextec Laser Metrology reduce component inspection time and collect thousands of data points, applying vision and laser technologies for accurate scanning and geometric measurements.

The wIZprobe also automatically self-calibrates on-the-fly via realtime closed loop adaptive control. nextec, a developer of laser and quality control technologies based in East Lake, ohio, offers the wIZprobe Vision and laser as a stand-alone product kit with custechnologies. tomized software packages and motion control for integration into process control operations, or easy integration with a CMM system. www.nextec-laser.com

ineer

Binder-USA’s 713 and 763 M12 connectors include screw terminations, making it possible to attach wires in the field without tooling or soldering.

The SV-560 vertical CNC honing system from Sunnen Products combines an oil-patch-sized 60-in. stroke and 20-hp spindle for bores up to 12 in. in diameter or larger for applications where low to mid-volume machining of oil and gas industry components, such as compressors, valves and pump liners, is required.

The system produces high accuracy and surface finish specs for whole-bore, constant crosshatch applications, using three-axis servo control of spindle rotation, stroke and tool feed. Synchronized servo axes eliminate the “flattening” of the crosshatch angle inherent at the

ELS

ng

ATTAcH wiTHouT TooLiNg, soLderiNg

E

Accepts up to 16 AWG.

Steerable Manufactured by:

Towable

Engineered Lifting Systems & Equipment Inc.

Manual

Custom

1-800-263-9823 Overhead Material Handling & Related Equipment

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PLANT 27

12-09-06 6:42 AM

CIEN PLANTWARE SMART AUTOMATION FOR DRIVES Sprint Electric and US partner Bardac Corp. have come up with a new concept for drives and systems control called drive. web. It’s a web-based distributed control for optimized high performance direct current and alternating current drive systems that integrates human machine interfaces, controllers and input/ SavvyPanel touch screen. output in systems of any size and complexity.

A process controller called Smarty and a drive interface controller called Speedy fit into the drive, giving it ethernet capability. Both units are configured and integrated into systems using an intuitive system design tool called Savvy, which is platform independent.

There’s no need for a PLC or supervisory computer to run drive.web. It’s capable of controlling all the components in a network such as the drive, temperature controller, logic controller and process controller. An infinite number of nodes such as drives and operator stations can be added to the network without losing the bandwidth of the total system.

Sprint Electric is a UK-based provider of DC motor control. In Canada, its products are available through MDA Controls Inc. in Oakville, Ont. Bardac is a manufacturer of drives technology based in Stevensville, Md. www.mdacontrols.com

Other upgrades include two more USB ports (six total) and operating system options Windows XP Professional 32-bit, Windows 7 Professional 32-bit, and Windows 7 Ultimate 64-bit.

Nematron is an Ann Arbor, Mich. producer of industrial automation products. www.nematron.com www.plantmagazine.ca/rsc/ 20

WIRELESS GATEWAY PLAYS IT SMART Emerson Process Management is making it easier for manufacturers who require EtherNet/IP to set-up and run a wireless field network.

Currently, PLC users must purchase a converter from a third party to add wireless. There’s no For field networks. converter in the Smart Wireless Gateway, which provides a simple integration that natively speaks to your PLC through the connection.

Enhanced security features for industrial automation and control systems are designed to IEC 62443 (ISA99) standards and are intended to fully comply with NERC CIP requirements. A customized user account feature allows a manager to easily set-up and configure gateway access privileges for various members of their operation.

Automation firm Emerson Process Management is based in Chanhassen, Minn. www.emersonprocess.com www.plantmagazine.ca/rsc/ 21

DATA LOG AT SUPER SPEED

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INDUSTRIAL PCS POWER UP Nematron Corp. has tuned up its line of industrial computers with processing options and features added to the iPC-Series.

New Intel CPU options include: i7 Dual Core, i5 Dual Core, and Dual Core Celeron P4500, which deliver perforPowerful processing. mance with lower power processing.

The PCs come in 12-, 15-, 17- and 19-in. LCD versions with new LED backlighting and 5-wire analogue resistive touch screens. They’re ultra-thin with a panel-mount depth of less than 3.2 in. (81.3 mm) for installation in harsh or hazardous locations.

They also come in non-display node (nPC300) for space-constrained applications.

The LogMessage 4000 Data Logger from CAS DataLoggers and Delphin Technology supports sampling speeds of up to 10,000 measurements per second for use in PCindependent machine monitoring. It captures pressure spikes and other high-speed sampling tasks, product testing, temperature data acquisition and other applications.

Eight differential analogue inputs record mV, mA, and thermocouple signals, with galvanic isolation of up to 100 VDC to minimize noise and 28 digital inputs for frequency measurements. Pre-installed reference points allow users to connect with any thermocouple type and log data.

The system includes four serial interfaces, up to 16 GB of local memory and an ethernet interface.

Software switches to function with any type 10,000 measurements per second.

of sensor.

You measure mA or mV signals from the analogue inputs and use a 4-wire connection to feed Pt100 and Pt1000 sensors directly from the LogMessage device.

Scaling is performed immediately according to the required measurement unit. Data is sent online to a PC using the LogMessage LAN interface, which is galvanically isolated up to 100 VDC along with its power supply and all other interfaces.

Standard data storage capacity is up to 250 million measurements, but expandable to 1 billion. Records are recorded with a timestamp and date stamp. ProfiSignal Go software is included for measurement analysis of any type of data and online/offline monitoring.

CAS DataLoggers is a provider of data logging technology based in Chesterland, Ohio. Delphin Technology is a supplier of hardware and software for industrial measurement. www.dataloggerinc.com www.plantmagazine.ca/rsc/ 22

FLEX I/O MAKES THE IT CONNECTION The Allen-Bradley FLEX I/O dual-port EtherNet/IP adapter from Rockwell Automation helps OEMs connect machines to their end customers’ IT infrastructures using a single network.

Dual ports leverage it to display diagnostics via a simple web browser, which helps to reduce troubleshooting and downtime.

The global automation company based in Milwaukee, Wis. says the FLEX I/O provides robust network infrastructure and extremely fast recovery time. DLR infrastructures are connected at the Single network. end device versus the switch, which reduces design time and simplifies implementation. The ring also adds a measure of redundancy that’s effective when a connection fails so a single network failure, such as a cable break, won’t lead to the failure of the other devices in the ring. A DLR network recovers in less than 3 milliseconds for a 50-node system. During this time, the connection between the programmable automation controller and the I/O device is not interrupted.

The adapters (1794-AENTR and 1794-AENTRXT for extreme environments) also support the daisy-chain topology for applications that involve devices located far from CPU subsystems. http://ab.rockwellautomation.com www.plantmagazine.ca/rsc/ 23

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Industrial Literature Reviews CIEN ReduCe ComPRessed aiR use in dRying oPeRations Learn how to dramatically reduce compressed air use in drying and blow-off applications with WindJet® Air Products from Spraying Systems Co. New catalogue features a wide range of energy-efficient compressed air nozzles, air amplifiers and air knives and air knife packages that use blower air instead of compressed air. www.spray.com Spraying Systems Co www.plantmagazine.ca/rsc/ 127

Canadian distRiButoR Wanted foR imada foRCe and toRque instRuments Products include: mechanical and digital force gauges, manual and motorized test stands, special attachments, digital torque screwdrivers, wrenches, testers and calibrators, hardness testers for rubber and plastic, LED stroboscopes and handheld tachometer. www.imada.com Imada Force and Torque Instruments www.plantmagazine.ca/rsc/ 128

RefeRenCe foR Rotating unions An updated catalogue for designers and users of coolant unions for machine tool, machining center, and transfer line applications.

This comprehensive reference guide offers detailed information for rotating union selection, installation, and maintenance, along with expanded product information. www.deublin.com/catrequest Deublin www.plantmagazine.ca/rsc/ 129

>> Events 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.

Hannay Reels WCR seRies aRC Welding Reel The Hannay Reels WCR Series arc welding reel is designed to handle cable current up to 400 amps, with a rotary electrical device that can be instantly used with any unwound cable length. www.hannay.com Hannay Reels www.plantmagazine.ca/rsc/ 130

most PoPulaR VaCuum CuPs 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

National Buyer/Seller Forum June Warren-Nickle’s Energy Group Oct. 22-25, Edmonton Strategies for buyers and sellers along the oil sands supply chain. Event partners include June Warren-Nickle’s Energy Group, Glacier Media Group (publisher of PLANT), Canadian Manufacturers & Exporters, and the Alberta government. Visit www.nationalbuyersellerforum.ca.

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.

Global Business Forum CME Oct. 17, Location TBA Leading Canadian thinkers will give attendees tips towards boosting export practices.

Presented by Canadian Manufacturers & Exporters (CME). Visit www.cme-mec.ca.

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

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The DILBERT™ CONTROLCAT NEW HORIZONS® in Temperature, Pressure, Flow and More Version No. 28 contains over 150 full colour pages of state-of-the-art products separated into seven sections: Automation, Sanitary, Temperature, Electric Heaters, Wireless/Data Acquisition, Pressure/Strain/Force, and Flow/Level/Environmental. www.omega.ca/literature/controlcat28/ OMEGA www.plantmagazine.ca/rsc/ 133

aCCessoRies – aiR and dust Handling systems This fully illustrated, 8-page catalogue features a wide variety of accessories including: stamped and rolled angle rings, blast gates, galvanized spiral duct, diverters, clean outs, nozzles, duct silencers, rotary air locks and exhaust fans. www.nrmurphy.com N.R. Murphy Ltd. www.plantmagazine.ca/rsc/ 134

affoRdaBle tHeRmal imaging

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/ 132

Physical Asset Management Certificate Program C-MORE Nov. 5-9, Toronto Nov. 12-14, Toronto Centre for Maintenance Optimization & Reliability presents this certificate course to help maintenance pros better manage their plant assets. Visit http://cmore.mie.utoronto.ca, Educational Programs.

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The FLIR i-Series Pointand-Shoot Thermal Imaging Cameras brochure introduces the newly redesigned i3, i5, and i7. The brochure covers affordable entry-level infrared cameras ideal for equipping front-line plant technicians. www.flir.ca Flir www.plantmagazine.ca/rsc/135

index of advertisers Rs# advertiser Page # 120 .................................. AME .............................................................. 25 122 .................................. Berg Chilling ................................................. 28 117 .................................. Breco-Flex .................................................... 21 136 .................................. Buyers/Sellers Forum ..................................... 30 125 .................................. Cox Reels ...................................................... 28 114 .................................. Creform ........................................................ 19 112 .................................. Dust Control .................................................. 19 118 .................................. DV Systems ................................................... 21 123 .................................. Engineered Lifting Systems .............................. 27 106 .................................. Exair ............................................................... 7 119 .................................. Flir Systems ................................................... 22 104 .................................. Gorbel ............................................................ 6 121 .................................. Hannay Reels ................................................. 26 109 .................................. Hoffman/Pentair ............................................ 10 137 .................................. IPEX ............................................................ IBC 115 .................................. Kunst............................................................. 19 105 .................................. Lapp Canada ................................................... 6 124 .................................. MasterBond ................................................... 27 101 .................................. Omega ........................................................ IFC 110 .................................. OPA .............................................................. 11 116 .................................. Pneutrans ...................................................... 21 113 .................................. Reelcraft ........................................................ 19 108 .................................. Rittal .............................................................. 9 107 .................................. Schneider ........................................................ 8 111 .................................. Sommers ....................................................... 17 138-140 ........................... Spraying Systems ........................................OBC 103 .................................. Stone Tucker ................................................... 5 102 .................................. Vac-U-Max ...................................................... 5 126 .................................. Vi-Cas ........................................................... 28 PLANT 29

12-09-06 8:54 AM

Departments

>> Postscript

Forecasting the flight path of the loonie

BY TODD HIRSCH

T

he loonie returned to parity with the US dollar in early August for the first time in months, but where can we expect the exchange rate to go in the fall? Look to the factors that determine exchange rate movements, starting with commodity prices.

Crude oil, wheat, base metals, gold and potash are priced and sold in US dollars, but sellers take those dollars and convert them back into loonies. Higher commodity prices raise the demand for Canadian

Canada is one of the best fiscal performers among the “G20Today, countries… ” dollars, which tends to increase their value.

Next comes Canada’s fiscal position.

One reason the loonie flew so low back in the 1980s and 1990s was the shockingly large deficits Ottawa carried. Investors don’t look favourably on countries in poor fiscal shape. Today, Canada is one of the best fiscal performers among the G20 countries. Although Ottawa is still running a deficit, it has a fighting chance

of returning to a balanced budget by 2017. Hardly any other developed country can say that – especially the US. The third factor is interest rates. Countries with higher interest rates attract foreign investment dollars. Granted, the country has to be stable and without risk of default (sorry Greece). Interest rates in Canada are extremely low, but the Bank of Canada will likely raise them in a year or more, before the US Federal Reserve

does, which won’t raise its rates until late 2014. Investors will be watching developments in Canada closely, waiting for signs that rates are going up. When they do, the Canadian dollar will get a lift.

Trader sentiment is the fourth factor.

Along with other countries such as Australia, Norway and New Zealand, Canada is stable and well run, but still considered risky by traders. Ours are relatively small currencies compared to the US dollar, the British pound, the yen or the euro. In times of global uncertainty, currencies in riskier countries tend to tumble.

Taking all of these factors into account, there are two scenarios that will set the loonie’s future value.

First is “sunny skies!”

Europe manages to avoid a major banking meltdown. The currency holds together. But Spain, Greece, Italy and Portugal are in for a difficult decade of slow growth and recession.

The US and China avoid major downturns and demand for commodities hold up. Investors lose some interest in the traditional safe havens such as the US dollar and gold.

If interest rates rise...

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The Bank of Canada signals that rates will be rising by next spring. Riskier currencies such as the loonie do well and appreciate against the US greenback.

Canada’s relatively good fiscal position attracts investment dollars, which could raise the loonie above par and trade in the $US1.02 to $1.07 range.

Scenario two is “stormy weather.”

Europe can’t squirm its way out of its mess, and Greece and Spain default.

The euro zone loses members and banks collapse. The US dollar soars as the only remaining safe haven for investors.

Recession grips Europe while the US and China are dragged down. Interest rates remain at rock bottom. A global recession pounds commodity prices. Oil hits $US50 per barrel. Base metals, potash and gold are also smacked down.

As a result, the Canadian dollar gets sideswiped in the wake of a strong “flight to safety” in the US dollar. The loonie is volatile and falls to the range of $US0.85 to $0.95 – possibly lower if it appears the global economy is headed for a prolonged recession.

So what is it going to be?

While uncertainty will remain high, the chance of scenario No. 1 is 25%. Scenario two is 10%, and somewhere in between makes up the difference. This means the loonie will stumble around its current range for a while longer, but chances are it will hover close to par in the fall and trade slightly above in 2013.

Todd Hirsch is senior economist with ATB Financial in Edmonton and Alberta business columnist with Calgary-based Troy Media. Visit www.troymedia.com.

Comments? E-mail jterrett@plant.ca.

30 PLANT

12-07-25 10:43 AM

September 2012

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