PLANT January/February 2016

JANUARY/FEBRUARY 2016 | WWW.PLANT.CA | $12

PM 40065710

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Canadian-made vehicles for the toughest terrains on Earth and beyond Global trade: what you need to know IIOT requires a focused security plan Handling Specialty’s Amazing Race debut AMPCO president ponders Ontario’s energy enigma Manufacturing News Daily www.plant.ca

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CONTENTS

January/February 2016 Vol. 75, No. 01

FEATURES 13 TRAINING Process issues on the plant floor could be driving behaviours that need to change.

16 MANAGEMENT A Fraser Institute study says increasing corporate tax rates lowers average wages.

18 MACHINERY Adopt a duty/standby operating philosophy to achieve asset management goals.

10 INNOVATION

ARGO innovations are taking the manufacturer into new markets as it challenges frontiers, including the moon.

CCOHS SAFETY TIPS Practices that will keep new workers safe.

20 MAINTENANCE How Union Gas manages change and improves performance at its Sarnia site.

21 THINK LEAN This Step Diagnostic brings together KPIs and enablers that will drive a lean implementation.

26 SUSTAINABILITY Make your plant greener by focusing energy management efforts on process lines.

27 FINANCE EDC’s new US$300 million green bond supports Canadian technologies.

VIRTUAL POWER Veridian Connections taps Tesla to power Ontario microgrids.

13 EXPORTING The OECD offers useful guidelines that cover conduct, transparency and cultural issues.

15 SECURITY Cyber attackers pose a risk for manufacturers that are adopting IIoT strategies.

29 TECHNOLOGY Rugged tablets withstand rough environments while delivering important data across the organization.

DEPARTMENTS

17 ELECTRICITY AMPCO president Adam White has major concerns about the impact Ontario’s surging electricity prices will have on manufacturers.

22 MATERIAL HANDLING Handling Specialty’s stage craft was on display at China’s City of Dreams Theatre for an episode of Amazing Race.

4 Editorial 6 News 7 Careers 9 PLANT Pulse 30 Product Focus: Sensors 32 Products and Equipment 37 Plantware Events 38 Postscript COVER IMAGE: STEPHEN UHRANEY

PLANT—established 1941, is published 8 times per year by Annex Business Media. Publications Mail Agreement #40065710. Circulation email: blao@annexwexbizmedia.com Tel: 416-442-5600 ext 3552 Fax: 416-510-5170 Mail: 80 Valleybrook Drive, Toronto, ON M3B 2S9. Occasionally, PLANT will mail information on behalf of industry-related groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above. Annex Privacy Officer: privacy@annexbizmedia.com Tel: 800-668-2374.No part of the editorial content of this publication may be reprinted without the publisher’s written permission. ©2016 Annex Publishing & Printing Inc. All rights reserved. Performance claims for products listed in this issue are made by contributing manufacturers and agencies. 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. Printed in Canada. ISSN: 1929-6606 (Print), 1929-6614 (Online)

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PLANT 3

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EDITORIAL

A diamond in the rough

W

elcome to 2016, and what a year it’s shaping up to be for manufacturing and PLANT, which has been serving Canadian industry for 75 years. During that time manufacturing has experienced many changes, as has this magazine.

Indeed, you’ll notice the issue size is different. We have switched to a nine by 12-inch format from the tabloid size (11 by 16 inches) that was adopted in 1988 as a way to stand out among the various industrial magazines. We are looking to stand out again with this new size, which is shorter than a tabloid but bigger than a standard magazine. We like to call it “management size” for PLANT’s busy readers and inside you’ll find the same mix of news, features and opinion that reflects what’s important to Canada’s manufacturing community.

There have been many ups and downs over the past 75 years, but it was the darkest period of the 20th century that shifted Canada’s industrial power into high gear. With the outbreak of the Second World War in 1939, Canada was challenged to create a strong industrial base almost from scratch to produce weapons and war materials for the Allied cause. It did so and then some. Safe from German bombing, Canada became an arsenal for the war effort, with production topping $10 billion by 1945.

Britain lost 75,000 of its 80,000 military vehicles at Dunkirk, and Canada’s automotive industry more than replaced them. In fact, during the war years manufacturers rolled 800,000 transport vehicles off their lines, plus 50,000 tanks, field guns, small arms, and ammo, plus much more.

When the war began, the aerospace industry was eight small plants employing 4,000 people, producing 40 planes a year. By war’s end, it employed 116,000 people and had topped 4,000 planes a year.

Not bad for a country of 11.3 million.

When Maclean Hunter began publishing PLANT Administration and Engineering in 1941, manufacturing employed close to 802,000 men and women. By the height of the war in 1943, employment topped 1 million, women accounting for 285,000, which is more than double the number employed prior to the war.

In 1941, the average manufacturing wage was $1,220 a year, or based on a 40-hour workweek, about 59 cents an hour. By 1945, the average annual wage was $1,538.

Today, the average weekly wage is close to $1,100.

PLANT’s objectives in 1941 were to address the key concerns of industry, which included: finding new ways to do things faster and better; develop better relationships with labour; pay more attention to the health and morale of workers; raise effectiveness to points never thought possible; and cut operating costs to the lowest “consistent” point.

Much has changed in the intervening years, but the objectives are remarkably similar today.

The world is a safer place than it was during the war years, although experts polled by the World Economic Forum warn us of the many risks we face today, from natural disasters related to climate change to the rise of terrorists, and hacking. The global economy isn’t looking too hot either, as Canada endures a commodities downturn that’s crippling the energy industry. And the dollar is low again, making investments more expensive. You could say PLANT’s 75th anniversary year is a diamond in the rough.

On the other hand, a low loonie is good for exports, especially to the US, our biggest customer. And the conditions are in place to broaden access to markets outside North America, despite the pokey economy.

Canada’s manufacturers have demonstrated 75 years worth of creativity and resilience, and will continue to do so, with PLANT doing what it has done since 1941, delivering information that will help your companies succeed, while celebrating your successes.

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

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Publisher Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com Editor Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca Associate Editor Matt Powell 416-510-5145 mpowell@plant.ca Art Director Kathy Smith 416-442-5600 ext. 3215 ksmith@annexbizmedia.com National Account Manager Ilana Fawcett 416-510-5202 ifawcett@plant.ca Account Coordinator Barb Vowles 416-510-5103 bvowles@annexbizmedia.co Editorial Advisory Board Robert Hattin, ProVantage Automation | Ron Harper, Cogent Power | Greg MacDonald, Wentworth International Services | Roy Verstraete, Anchor Danly Annex Business Media Vice President Tim Dimopoulos (416) 510-5100 tdimopoulos@annexbizmedia.com President & CEO Mike Fredericks Circulation Manager Beata Olechnowicz 416-442-5600 ext. 3543 bolechnowicz@annexbizmedia.com Subscription Price Canada $70.95 per year, Outside Canada $146.95 per year, Single Copy Canada $12.00. Add applicable taxes to all rates.

Combined, expanded or premium issues, which count as two subscription issues.

Mailing Address Annex Business Media 80 Valleybrook Dr., Toronto, ON M3B 2S9 plant.ca Tel: 416-442-5600, Fax: 416-510-5140

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

January/February 2016

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NEWS BULLETINS MacDonald, Dettwiler and Associates Ltd. in Richmond, BC has secured a contract worth more than $20 million with Thales Alenia Space. MDA, a global communications and information company, is to provide 96 communication antenna subsystems to the prime contractor for the O3b constellation.

The subsystems will be used for medium Earth orbit satellites designed and built for O3b Networks.

BioAmber Inc., a developer of renewable materials, reports its Sarnia, Ont. production plant, jointly owned with Mitsui & Co., has received ISO 9001 (quality management), ISO 14001 (environmental management), OHSAS 18001 (health and safety) and FSSC 22000 (food safety management) certifications. “This integrated management system is the foundation of our ambitious operational excellence plan driven by lean manufacturing principles,” said Fabrice Orecchioni, BioAmber’s chief operations officer.

NAPEC Inc., a provider of services to the energy sector based in Drummondville, Que., has secured contracts worth $245 million. The company’s US-based Riggs Distler & Co. Inc. accounts for most of the business at $232 million. The Canadian subsidiary Thirau Inc.’s share involving Hydro-Quebec and and a distribution company in Ontario is worth $12.9 million.

Amsted Rail, a manufacturer of railway wheel equipment in Winnipeg, will produce one million wheels using recycled steel for use at CN’s Transcona mechanical facility. Production will take place over the next 10 years at Griffin Wheel Co. in Winnipeg, one of five manufacturing plants in North America and the only one in Canada. CN’s Transcona Shops mount wheels on axles that become wheelsets installed on freight cars moving on CN’s rail lines.

Enerplus Corp. is selling some of its natural gas properties in Alberta for $193 million. The Calgary-based energy producer says it will use the money to reduce outstanding debt. The assets, located around the Ansell, Minehead and Hanlan-Robb areas, were expected to produce 5,400 BOE per day (98% natural gas)

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PyroGenesis ships first Drosrite system Reduces energy use while recovering metal from dross

military consortium.

MONTREAL — Clean tech The contract, supported innovator PyroGenesis Canby the US Army Research ada Inc.’s Drosrite furnace Office, is to demonstrate system passed inspection the viability of the plasma by an un-named automotive destruction platform with manufacturer and has been locally available materials, shipped for installation. without creating hazardous The Montreal manufacturer by-products. of plasma waste-to-energy The US Department of systems and plasma torch Defense program identifies products said a milestone technology companies capayment of $203,700 was Drosrite aluminum recovery system ready for shipmade for Drosrite’s first sale. ment.

PHOTO: PYROGENESIS pable of developing a onesize-fits-all transportable PyroGenesis filed a patent for disposal system that converts ed a US$299,886 contract by the the system in 2012. dangerous chemical warfare US Department of Defense as The salt-free furnace system agents into a safe end-products, part of its ongoing project to derecovers aluminum from dross such as soil. The goal is to destroy chemical warfare agents. while reducing energy constroy chemical agents without The first of its kind plasma sumption and it produces no requiring water or generating arc destruction system was hazardous by-products. waste for post-processing. developed for a multi-national PyroGenesis was also award-

SNC-Lavalin to clean Romanian nuclear steam generator tubes MONTREAL — SNC-Lavalin has been awarded a contract by BWXT Canada Ltd. for the primary side cleaning of the steam generator tubes at a Romanian nuclear power facility.

BWXT Canada, a supplier to the nuclear industry based in Cambridge, Ont., is the original manufacturer of the steam generators at Cernavoda Unit 1 of Societatea Nationala Nuclearelectrica S.A. It’s also the project’s lead contractor.

Montreal-based SNC-La-

valin, a global engineering and construction firm, says its CANDUclean system uses a special blasting material to loosen and remove deposits that build up inside steam generators, while ensuring adjoining areas are not contaminated.

Primary side cleaning can be performed in parallel on multiple generators, handling up to four tubes simultaneously.

The CANDU 6 reactor at Cernavoda Unit 1 has been in service since 1996.

Magna completes GETRAG deal AURORA, Ont. — Automotive systems manufacturer Magna International Inc. has completed its acquisition of the German GETRAG Group of Companies, independent suppliers of automotive transmissions.

Magna identifies GETRAG as a leader in the market for dual-clutch transmissions, a segment expected to experience high growth globally over the next decade.

“Expanding our business to provide complete powertrain solutions has been a strategic priority for us,” said Jake Hirsch, Magna Powertrain president. “We believe that GETRAG is an excellent fit in terms of product, technology, footprint, customers and people.”

Financial details were not disclosed.

Electrovaya’s Litacell-LC40 lithium ion cell.

PHOTO: ELECTROVAYA

$23M order for new Litacell-LC40 TORONTO — Electrovaya Inc.’s wholly owned Litarion GmbH subsidiary has received a $23 million purchase order for 40 Litacell-LC40 lithium ion cells that will go to an American-based company.

The Mississauga, Ont.-based battery power innovator said the order received through Targray, an advanced materials supplier in the alternate power and energy space based in Kirkland, Que., is for 14 months (until January 2017).

The US customer was not identified.

The new 40Ah Litacell, available worldwide since October, delivers nearly 9,000 cycles at 1C/1C and 100% DoD).

“This is the first major order for our Litacell-LC40,” said Raj Das Gupta, Electrovaya’s vice-president of business development, who noted rising demand from the energy storage and e-mobility segments of the industry.

January/February 2016

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Sheridan nabs first YuMi in Canada

Collaborative ABB robot goes to Brampton, Ont. campus

CAREERS

enhance the value and BRAMPTON, Ont. — Shercontributions they bring to idan College’s Centre for their future employers,” said Advanced Manufacturing and Farzad Rayegani, director of Design Technologies (CAMDT) CAMDT and associate dean has become the first facility in of the School of Mechanical Canada to acquire ABB’s YuMi and Electrical Engineering collaborative robot for small Technology. “It’s also an imparts assembly. portant asset in our ongoing YuMi, which has flexible work with SMEs on indushands, parts feeding systems, try projects and applied camera-based part location and research.” state-of-the-art robot control, YuMi will be integrated works side-by-side on the same ABB Canada general manager Casey DiBattista into Sheridan’s engineering tasks as humans. and Sheridan College president Jeff Zabudsky curriculum to teach students, It will reside at the college’s (right) with ABB’s YuMi collaborative robot.

Brampton, Ont. campus.

PHOTO: SHERIDAN COLLEGE industry and community SME

partners about human-robot “This acquisition expands interaction. Students will work closely with ABB the capabilities of our state-of-the-art ABB and interact with YuMi as part of their research Robotics Centre, and will provide our students and projects with industry partners. with hands-on experience that will greatly

International measurement and automation equipment firm Endress+Hauser has appointed Anthony Varga as CEO and general manager Anthony Varga of its Canadian operations based in Burlington, Ont. He replaces Richard Lewandowski, who is retiring. Varga joins Endress+Hauser from Rittal Systems, most recently serving as president of Rittal Canada and senior vice-president of Rittal’s North American Sales.

Orbite to pursue patent for gold recovery from fly ash MONTREAL — Orbite Technologies Inc. has conducted preliminary research indicating the potential feasibility of gold recovery from fly ash using its waste technology and has filed a provisional patent application.

The cleantech company based in Saint-Laurent, Que. has developed a process that extracts constituents such as scandium, gallium, rare earths, rare metals, alumina, magnesium oxide and titanium dioxide from wastes such as fly ash, red mud and mine tailings.

Its analysis of several feedstocks identified gold concentrations that, if extractable,

could increase the potential value of fly ash.

“We intend to include gold recovery in the workflow for the conversion to the chloride process of the extraction section at our Cap-Chat facility,” said Glenn Kelly, Orbite’s CEO. “We currently estimate average value for typical fly ash at around US$200 to $250 per tonne,” said Kelly. “Even at observed average concentrations of 7.5 ppm of gold in fly ash, a 50% recovery would increase this value to $350 to $400 per tonne, while 100% recovery would increase this to around $500 to $550 per tonne.”

Orbite anticipates other met-

Ballard gets order for 40 Power Managers VANCOUVER — Ballard Power Systems’ Protonex subsidiary has received a $2.8 million follow-on purchase order from the US Army for more than 400 Squad Power Manager (SPM-622) special operations kits.

SPM-622 units will be deployed with Special Operations Forces for battlefield use. The lightweight (less than a pound) portable power management devices, allow five to nine soldiers to power all portable radios, computers and other electronic equipment from any available battery, plus recharge the battery from solar, vehicle, AC or scavenged energy sources.

This significantly lightens the load carried by personel, while keeping their gear powered regardless of changing battlefield conditions.

The SPM-622 is made in Southborough, Mass.

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als such as platinum, iridium and palladium could also be of value if they’re extractable.

Measurement instruments for Lambton PHOTO: ENDRESS+HAUSER College.

$263K for student control engineers BURLINGTON, Ont. — Endress+Hauser Canada has donated $263,000 to the Instrumentation & Control Engineering Technology program at Lambton College in Sarnia, Ont. The donation includes a wide range of industrial measurement devices for flow, level, pressure and temperature that will give students hands-on experience with technology used in manufacturing.

Endress+Hauser Canada, based in Burlington, Ont., is a provider of industrial measuring technology and automation.

CARLO GAVAZZI, an automation company based in Mississauga, Ont., has appointed Bob Fahrni as account manager for the Greater Bob Fahrni Toronto Area and Northern Ontario. He was previously drives and MCC product manager at Gerrie Electric Wholesale Ltd. in Burlington, Ont. 5N Plus Inc., a Montreal-based producer of specialty metal and chemical products, has appointed Arjang Roshan president and CEO. He comes to 5N Plus from Umicore, a global materials technology and recycling group, where he was senior vice-president of Umicore’s Electro-Optic materials business unit.

Cincinnati Inc., a manufacturer of laser cutting, automation and metal fabrication equipment based in Harrison, Ohio, has appointed Alejandro Alejandro Chavez Chavez regional sales engineer for all Canadian provinces except BC, which is covered by the direct sales representative in Seattle, Wash.

Brick Brewing Co. Ltd. in Kitchener-Waterloo has appointed Gary Matthews brewmaster of the company’s new state of the art brewhouse. He’s done brewmaster duty with both Molson Coors and Muskoka Brewery.

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NEWS

Brick adds LandShark to its brand lineup brands, both in the KITCHENER, Ont. US and interna— Brick Brewing has tionally, gives us a added LandShark wonderful opportuand Margaritaville nity to expand their beer, cider and malt reach into Canada,” based cooler brands said George Croft, to its beverage lineBrick Brewing presup with a 10-year ident and CEO.“This deal for exclusive agreement fits Canadian rights. perfectly with our The Kitchener, strategic direction, Ont.-based brewery allowing us to said the agreement further utilize our includes a further leading edge manu10-year renewal at facturing capability Brick’s option.

LandShark Lager, Tropical style lager. and available capaccreated in collabo- PHOTO: BRICK ity, while building our branded volume ration with Jimmy business.”

Buffett’s Margaritaville, is Brick anticipates Canadia gold medal winner at this an product launches under year’s North American Beer both the Landshark and Awards in the tropical style Margaritaville brands in lager category. spring of 2016.

“The strength of these

TSO3 expanding to meet sterilizer demand QUÉBEC CITY — TSO3 Inc. is accelerating plans to expand its manufacturing and assembly workforce for its FDA-cleared Sterizone VP4 Sterilizer.

The Quebec City manufacturer of sterilization technology for medical devices said the expan-

sion was prompted by recent orders for shipments to the US placed by its new, exclusive global distribution partner, Getinge Infection Control.

It said the level of orders requires an immediate expansion of the company’s assem-

bly, quality control and workforces at its Canadian and US facilities.

The sterilizer is a low-temperature (41 degree C) system that uses vaporized hydrogen peroxide (H2O2) and ozone (O3) to sterilize heat and moisture sensitive medical devices.

EHT to supply modular refugee housing TORONTO — EnerDynamic Hybrid Technologies Inc. is supplying its modular hotel units to Property Inventor AB in Sweden to house refugees and immigrants.

The supply deal requires the delivery of 1,000 units at $32,000 each for a total value of $32 million.

The hotel units are constructed using the technology and products made by EVIA, a global manufacturer and installer of proprietary modular housing, container and truck/ trailer units.

EHT, a manufacturer of solar PV, wind and battery storage solutions, with a 90,000 square-foot facility in Toronto, acquired EVIA last year for $46.7 million.

The Luxembourg-based company will make the units for the housing program supported by the Swedish government.

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CEOs expect lower growth

But exporters see higher sales TORONTO — We’re barely into 2016 and business leaders have shifted from being somewhat optimistic about the year ahead as 2015 wrapped up to being a bit on the grim side, but there is light with the dark.

PwC’s 19th annual Global CEO Survey of 1,400 executives found 66% (76% in Canada) see more serious threats facing their businesses today than three years ago. China’s economic rebalancing, falling oil prices and geopolitical uncertainties are weakening their confidence.

Thirty-one per cent of Canadian CEOs believe global economic growth will fall over the next 12 months, versus 24% who see it improving and 31% who are very confident about their prospects.

Increased tax burdens top the list of threats to growth for 80% of Canadian companies (68% in 2015, up 18%).

Geopolitical uncertainty is ranked second by 71% and currency volatility is an issue for 65%, tied with concerns around the government response to fiscal deficit and high debt burden.

Over-regulation follows for 63% – up 10% from 2015.

The EDC’s semi-annual Trade Confidence Index survey of exporters found overall confidence fell from 75.1 in the spring to 72.8 in late fall, yet remained in line with average confidence levels for the past 10 years.

But they remain optimistic sales will increase over the next six months, although more than 25% believe world economic conditions will worsen over the same period.

HSBC’s Global Trade Forecast says the US and Europe will lead a tentative recovery in world trade and notes a resurging US economy will deliver an additional boost to Canada’s export market.

Despite low oil prices weighing heavily on the economy, the lower-value loonie should boost Canadian competitiveness, particularly for manufacturers.

Get a copy of the PwC report at www.pwc.com/ca/ceosurvey. The EDC report is available at www.edc. ca. Visit https://globalconnections. hsbc.com/canada/en for HSBC’s semi-annual Global Trade Forecast.

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MANUFACTURING ADDS JOBS IN 2015

thousands 16,800 16,800

Seasonally ajusted Trend-cycle

16,800 17,600 17,400 17,200 17,000 16,800 Dec. 2010

2011

2012

2013

Dec. 2015

2014

Canadian employment registered an increase of 158,000 people in 2015, a 0.9% gain over the previous year and slightly above the growth rate of 0.7% in 2013 and 2014. In the goods producing sector, manufacturing showed a gain of 35,900, for a total of 1,735,800 people employed. Agriculture, natural resources, utilities and construction all posted declines. Provincially, employment rose only in Ontario.

Statistics Canada

21 MILLION + The number of automotive units forecast to be sold in North America this year. The US will be the main growth driver, expected to top 18 million units. Canada’s forecast is flat at 1.9 million units.

Scotiabank Global Auto Report

226,620 The number of full-time R&D personnel in Canada in 2013, down 2% from 2012. The business enterprise sector accounts for 58.4%, and is mostly responsible for the decline, as were Ontario and Quebec. Alberta, Saskatchewan and Manitoba posted gains.

56%

Statistics Canada

62% Percentage of 365 manufacturing executives who see sales and orders increasing in 2016. Only 29% see their pricing increasing, 53% say it will stay the same. And 40% predict higher profits compared to 27% who expect a decrease and 33% who say they will remain the same.

Percentage of surveyed exporters who believe their international sales will increase over the next six months.

PLANT Manufacturers’ Outlook Survey 2016

EDC Trade Confidence Index

500 MILLION

The amount Canada’s merchandise trade deficit with the world declined in November from $2.5 billion in October. Statistics Canada reports imports were down 0.7% and prices up 0.9%.

Exports were up 0.7% but prices declined 0.4%. Trade with the US grew 1.3% to $32.5 billion, while imports slipped 0.1%, widening the gap from $1.7 billion to $2.1 billion.

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INNOVATION

ARGO’s

UTVs

NO TERRAIN IS TOO TOUGH, NOT EVEN THE MOON The Ontario manufacturer places a premium on technology development as it looks for new territory to conquer.

BY MATT POWELL, ASSOCIATE EDITOR

T

here aren’t many places the amphibious vehicles rolling off a production line in New Hamburgh, Ont. can’t go.

The Made in Canada, all-terrain ARGO has crawled its way through any water, mud or brush in its path and is currently revving up to celebrate its 50th anniversary next year. Meanwhile the company owned by Ontario Drive & Gear has a lot on the go for 2016. It’s releasing a number of new all-terrain recreational, commercial and even unmanned vehicles equipped with a slew of innovations that have helped the company set itself apart from its competition.

In August, ARGO announced a series of nine new vehicles targeting military, fire and rescue, and commercial applications for the oil and gas, mining and utilities sectors. These are in addition to a history of keeping avid outdoorsman equipped for virtually any environment, perhaps including the moon by 2020.

the six-and eight-wheeled ARGO vehicles have become a $65 million business that sells vehicles in more than 70 countries. It has a dealer network of more 300 distributors, 250 of them in North America. Major export markets include Eastern Europe, Russia and Asia, including China and Indonesia.

“The company is creating a number of purpose-built vehicles that are more target market specific to serve the utility task vehicle (UTV) segment, which helps expand ARGO’s abilities,” says Bernhard Wagenknect, ARGO’s vice-president of sales and marketing.

Highlighting the 2016 line-up is the ARGO LX, a luxury model that represents the company’s first foray into the higher end of the recreational market.

“Think of it as the ultimate toy for folks with properties in Muskoka,” says Matt Chandler, one of the company’s project development managers.

For firefighters and first responders, the ARGO Responder MD and FF models are equipped with tools such as interchangeable stretchers, water cannons

High-tech, ultimate toys

(L-R) Jesse Paeden, assembly line worker, sets up a steering column and brakes to be bled before they’re installed on the production line; lead hand Steve Schira welds an PHOTOS: STEPHEN UHRANEY ARGO frame.

Founded in 1967 as an offshoot of Ontario Drive & Gear, a well-established manufacturer of power transmission and gears,

ARGO’s Responder FF model handles remote and dangerous firefighting scenarios.

PHOTO: ARGO

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January/February 2016

16-01-29 6:11 AM

Assembly worker Sharon Dixon wires an ARGO engine before testing.

PHOTO: STEPHEN UHRANEY

and spray and foaming equipment for fire suppression.

There’s also a “Duckmaster” model in the works for hunters, the result of a brand ambassador partnership between ARGO and Willie and Jase Robertson, the stars of A&E’s “Duck Dynasty.”

The company employs 230 people across two plants. New Hamburgh is about a 15 minute drive from Waterloo, one of Canada’s key technology hubs and home to major innovators including Google, drone manufacturer Aeryon Labs and robot-maker Clearpath Robotics.

ARGO’s proximity to Waterloo is a blessing, allowing it to tap young, fresh-thinking engineers right out of university. The company has also worked with students at Waterloo’s Connestoga College on product development.

They have helped develop this year’s new vehicles featuring heated handle bars, USB ports, improved suspensions, dual bilge pumps for marine environments and mounted gun racks.

An anti-corrosion paint, which enhances the vehicle’s longevity, was developed with partner Henkel, a global paint and coatings manufacturer.

ARGOs on steroids Alan Wood leads ARGO’s manufacturing operations, which includes two production lines pumping out 2,000 vehicles annually, almost all of which are customized to individual customer requests. One line is dedicated to ARGOs while the other produces ARGO XTs, which Wood describes as ARGOs on steroids.

The 66,000 square-foot plant operates a push-pull delivery system in which workers operate in pairs to assemble the vehicles as Continued on page 12

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PLANT 11

16-01-29 6:11 AM

INNOVATION

Continued from page 11

they travel down a roller system, which Wood compares to that of luxury automaker, Rolls Royce.

“Our guys hand-build the units and push them into the next station, and then pull the next one in from behind,” he says.

“The biggest advantage is that it boosts process control and helps us to better maintain quality.”

Meanwhile, any custom orders for commercial clients, such as firefighting units, are pulled off the line once they’re completed and loaded into one of four service bays, where specific features are added.

There’s also an advantage to being housed in the same complex as a major transmission and gear manufacturer: about 85% of an ARGO’s components are produced in-house.

There’s a press and welding shop, which produces components pulled into a Kanban twobin system. Wood describes the system as a one-piece flow: workers will request parts, have them made, send them over to the paint shop, and then a complete ARGO’s worth of components are loaded onto a dolly and sent to the production line.

Equipment is upgraded regularly. Wood notes the recent addition of a robotic welder for smaller, more intricate assemblies. A new rapid prototype shop brings new ideas to life quickly, and a sustainable green roof heats and cools the building, cutting energy costs and emissions.

No driver needed Wagenknect and his team are also focusing on the development of robotic and unmanned vehicles for commercial and industrial settings.

The New Hamburgh compound is home to Ontario Drive & Gear’s space and robotics division, led by chief technology officer Peter Visscher.

“There’s a lot of stuff happening behind the scenes,” he says, adding that ARGO’s partnership with the Canadian Space Agency

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Alan Wood (left), ARGO’s plant manager, and Bernhard Wagenknecht, vice-president of sales and marketing.

has taught the company a new way of developing technology.

In 2008, Ontario Drive & Gear was tasked with helping the Canadian Space Agency create a Lunar rover and has since emerged as the program’s go-to designer. The work led the company to further develop robotic rovers for defence, commercial and agricultural applications.

One project for the Space and Robotics Group is the Artemis Jr., a rover that could go on a planned NASA expedition to the moon in 2020. It’s the product of a collaboration between Ottawa-based COM DEV International and Neptec Design Group, Sudbury, Ont.-based Deltion Innovations and Sherbrooke, Que.-based NGC Aerospace.

ARGO’s team designed and produced the rover’s chassis, and is currently testing a new collection of gears and bearings to see how they will withstand moondust

(similar to ground glass) and the harsh lunar environment. The company spent $5,000 to bring in simulated moon dust to create more realistic test conditions.

Several lessons were learned in the robotics department that have gone into production vehicles. Visscher cites the new XT models with a new wheel design based on the lunar rover that produces a softer ride for occupants.

“Designing vehicles for the lunar program has forced us to operate in a more disciplined manner and through some thorough engineering forced us to think outside the box and re-examine why and how we’re doing things,” says Visscher.

There’s a number of prototypes underway, including one for military services that would tether to a solider and cart around 30 kilogram packs for up to 10 soldiers while they’re on patrol. If the platoon comes under fire, the

PHOTO: STEPHEN UHRANEY

soldier detaches the tether and the vehicle will find a safe place to park itself.

Unmanned vehicles would also serve industrial clients in the utility and mining sectors.

The J5 amphibious mobility platform, derived from ARGO’s lunar rover work, would be useful in firefighting scenarios when the environment is too hot for firefighters, and for tunnel inspection in mines to enhance worker safety.

“We’re trying to integrate as many of these robotics technologies as we can into our target markets to add value to our product offerings,” says Wagenknect.

The strategy is to make faster, cheaper and better vehicles, and take ARGO deeper into territory where the competition can’t follow.

Comments?

E-mail mpowell@plant.ca.

January/February 2016

16-01-29 6:11 AM

EXPORTING Recommendations cover the important issues related to conduct from the need for transparency to handling specific cultural challenges.

How to deal with cultural challenges in PHOTO: THINKSTOCK international markets.

provide training to handlers.

Combating bribery. This is perhaps the most direct and important of the recommendations.

Do not “directly or indirectly offer, promise, give or demand a bribe or other undue advantage to obtain or retain business.”

BY MARK DRAKE

Q

uiz question: what do the initials OECD stand for? It’s short for the Organization for Economic Co-operation and Development, one of the more useful acronyms for exporters.

Founded in 1961, and sometimes referred to pejoratively as a club for rich countries, the OECD includes 39 nations from Australia to the US – and of course Canada. It’s a forum where “governments work together to address the economic, social and environmental challenges of globalization.”

Some of these are covered specifically in an interesting and important document for exporters from OECD – the Guidelines for Multi-National Enterprises (MNEs). It’s absolutely not necessary to be a multi-national organization to benefit from these recommendations – they were updated and expanded in 2011 and apply in varying degrees to everyone in business and especially to those working internationally.

Some recommendations are generic (and pretty obvious) such as “MNEs should obey the laws in countries where they operate and be transparent in their undertakings,” but others are helpful in dealing with specific cultural challenges in international markets.

Here’s a brief overview.

Human rights (HR). Have a policy commitment to respect HR and deal with adverse impacts whenever and wherever these arise, to the extent that domestic laws allow. This recommendation fits in with the United Nations’ framework to “protect, respect and – where necessary – remedy [abuses].”

The environment. Be on top of the environmental situation

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Anti-bribery stance

Operating

GLOBALLY? OECD GUIDELINES COVER WHAT YOU NEED TO KNOW where you operate and aim for sustainable development. Keep track of the environmental effects of your activities, set objectives for improvement and have systems in place for regular verification and measurement.

Put contingency plans in place for emergencies, adopt new and environmentally friendly technologies, and strive for emissions reduction, efficient resource utilization and recycling. If hazardous materials are involved,

The recommendation applies particularly to foreign public officials, where Canadian law – and specifically the 1999 Anti Bribery Convention – applies. Don’t use agents, distributors or any third party to get around these laws, and have adequate internal controls to ensure compliance (see www.mneguidelines.oecd. org). The guidelines recommend discouraging facilitation payments (paying a “fee” to someone to carry out a task that is part of his/her normal responsibilities), even if such payments are technically permitted under the law. Take special care recruiting agents or distributors to ensure reliable partners. Make the enterprise’s policy regarding bribery Continued on page 14

TRAINING

Performance issues?

Be clear about what drives the behaviour

BY HUGH ALLEY

T

here are situations that aren’t fixable with training alone. When faced Be clear about what needs to be accomplished. with a performance issue, check out these four factors. Any one or PHOTO: THINKSTOCK

more of them could be driving behaviour you don’t want. Fix them before you begin any training.

1. No clear vision of how things will be better. If you take apart an engine, it matters whether the problem is poor fuel efficiency or backfiring. You look for different things. Be clear about the the problem that needs to be solved.

2. Big obstacles. Are you sure people are creating the problem? If there are fundamental flaws with a machine (it can’t meet required tolerances), no amount of training will address the issue. Remove the obstacles.

3. Incompetent managers or supervisors. People led by incompetent or tyrannical managers will be 100% focused on not attracting attention. They’ll see training as time away from a troubled work environment, but when they return, nothing will have changed, so there will be no change in behaviour.

4. Measurement systems don’t match desired results. Training people on a new procedure to improve quality without shifting the incentive system is bound to have limited impact. Incentives and measurements must match what you’re trying to achieve.

Hugh Alley is a consultant based in Port Coquitlam, BC who helps companies quickly achieve significant performance gains. Contact (604) 866-1502 or e-mail hughralley@gmail.com.

PLANT 13

16-01-28 1:28 PM

EXPORTING Continued from page 13

public and ensure employees are made fully aware of it.

Consumer interests. Much of this is “boiler plate” stuff, such as: act in accordance with fair business, marketing and advertising practices; and goods or services should be reliable and at the targeted level of quality.

Supply appropriate support or technical information to customers, put a dispute resolu-

tion mechanism in place, and there should be no deceptive or fraudulent practices. Customers’ privacy and personal data should be respected.

transfer where appropriate is encouraged, provided intellectual property (IP) rights are respected. As far as possible, perform S&T in the host country to

Canada will only apply its “economic diplomacy” in support of “companies that adopt the guidelines and deal with the NCP... ”

Science and technology (S&T). Ensure S&T activities are compatible with policies in the local country, and technology

address local (job or technology) needs, and licences for patented technology should be agreed to on reasonable terms. Enterprises

are also encouraged to work with local universities and technical institutes.

Competition. Comply with local competition law (no price-fixing, rigged bids or divided markets). Co-operate with investigating authorities, and promote employee compliance with local competition laws and regulations.

Taxation. Comply with the letter and the spirit of local tax laws. Treat compliance as an important part of general oversight and “broader risk management.”

Troubleshooting Implementation. To help enterprises deal with potential or actual problems in following these guidelines, the OECD arranged in 2000 to have national contact points (NCPs) in participating countries. Their job is to make the guidelines available, raise awareness about them and respond to enquiries from other NCPs, the business community, worker organizations, NGOs and the public. Reach Canada’s NCP in Ottawa at www.ncp-pcn. gc.ca. It has been proactively involved in establishing guidelines for the extractive industries, (dealing with community engagement and environmental impacts) and also for supply chains, calling on other government departments for technical and logistical support. Canada will only apply its “economic diplomacy” in support of companies that adopt the guidelines and deal with the NCP. More information. The latest (2011) edition of the guidelines is available from the NCP, or from the OECD library www.oecd-library.org. The guidelines make for sensible and practical (if stodgy) reading, and companies of all sizes are well advised to follow them.

OUR DV SYSTEMS AIR COMPRESSOR IS POWERFUL, EFFICIENT & DEPENDABLE. GLENN SINKE, OWNER & PRESIDENT, CAN AMERICAN STONE SPREADERS INC. When we asked Glenn Sinke, Owner & President of Can American Stone Spreaders Ltd, an innovative manufacturer of stone spreaders in St. Catherines, Ontario, what he thought of their DV Systems rotary screw air compressor, he was pleased to say it’s extremely powerful, dependable and efficient, always allowing his team to deliver and meet the demands of his growing production workload.

DVCO M P R E SS O R S.CO M

BUILT BETTER

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Mark Drake is former president of Electrovert Ltd. and the Canadian Exporters’ Association.

E-mail corsley@videotron.ca.

Comments?

E-mail jterrett@plant.ca.

January/February 2016

16-01-28 1:28 PM

SECURITY Incorporate a cybersecurity plan into every phase of industrial development, infrastructure, manufacturing and design.

Cyber attackers display detailed knowledge of IC and production processes.

PHOTO: THINKSTOCK

BY IMRAN AHMAD

W

ith the arrival of the Industrial Internet of Things (IIoT) in modern manufacturing, the threat of sabotage comes from distant hackers who can infiltrate a plant’s network and severely damage processes with a mouse click.

Increasingly, industrial control (IC) systems are relied upon to ensure the smooth operation of plants. Historically, they operated separately from the corporate IT network, but with the evolution of the internet and network connectivity, manufacturers see the advantages of an interconnected network model.

While IC systems were built for sustainability, they weren’t necessarily designed with cybersecurity in mind. A GE New Technology Magazine article notes in 2014, the US Department of Homeland Security’s Industrial Control Systems Computer Emergency Response Team responded to 256 specific cyber incidents related to critical infrastructure (including certain key industrial facilities).

A Honeywell whitepaper warns a cybersecurity breach to an IIoT-enabled industrial facility can result in: communication and connection failure; unauthorized access, theft, or misuse of information; equipment damage; environmental damage; lengthy periods of downtime; violations of legal and regulatory requirements; financial loss; and threats to public safety.

Cyber threats to manufacturers are not hypothetical. A The Security Ledger article describes a German steel factory that fell victim to a targeted attack that caused severe physical damage to the facility. Attackers gained unauthorized access into the

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Secure your

PLANT

MANAGING RISK POSED BY HACKERS THAT TARGET IIOT factory’s computerized operational controls and production networks, and disrupted the control system components of a blast furnace. They increased the pressure of the crude oil inside the factory’s pipeline, which caused an explosion and massive damage to the system. They also erased more than 60 hours of surveillance video in an effort to cover their tracks. Operators didn’t learn of the explosion until 40 minutes after the incident.

Managing cyber risk Although there is no “one size fits all” to secure manufacturing processes and assets, businesses can take steps to effectively manage IIoT cybersecurity issues by incorporating a risk-based plan into every phase of industrial development, infrastructure, manufacturing and design. The following steps provide a starting point: • Protect the network.

Ensure there are no unprotected or unsecured points of entry.

Install critical software patches as quickly as possible and use commercial grade anti-virus/ malware services. Ensure remote

connections and outbound traffic are filtered through firewalls and use them to separate different layers of the IC systems network, which can be further segregated into security zones.

• Strengthen passwords.

Change passwords frequently and ensure they’re sufficiently complex. Where appropriate, consider implementing multi-level authentication (including passwords generated by third-party authenticators).

• Protect the Crown Jewels.

Identify the most critical and sensitive information and ensure the most vital assets and systems storing it have appropriate security. Consider encrypting any critical data when in transit and/ or storage.

• War gaming. Assume the worst-case scenario. Conduct risk analyses, vulnerability assessments, drills, equipment maintenance and testing. Consider retaining a third party to conduct a security audit.

• Prepare the front line.

Ongoing employee training and awareness is critical. It will reduce exposure to cyber threats,

such as spear phishing and social engineering. Focus training on fostering a culture of procedural compliance, a questioning attitude and having the knowledge needed to identify potential threats.

• Think mobile. Assess the security level of remote devices such as tablets and smartphones and how they are allowed to connect to networks. Remote access through a virtual private network should only be granted to the minimum set of hosts and users, and to parts of the networks necessary for the users to complete their tasks.

• Look critically at your IC systems. Consider redesigning them to use the fewest communication channels. Restrict physical access and user privileges. Consider implementing a network typology that has multiple layers with the most critical communications occurring in the most secure and reliable layer.

• Have a cyber monitoring team. Communication and coordination between different departments is critical. The team should consist of knowledgeable managers and professionals (internal and external) who will meet regularly to assess threat levels, discuss how to address gaps and make recommendations to management on how to protect digital assets.

As cyber threats continue to evolve at a rapid rate, security countermeasures must adapt and take the lead. Constant re-evaluation and re-thinking of traditional approaches will help manage incidents before they become operational crises.

Imran Ahmad, a lawyer at the Toronto law firm Cassels Brock & Blackwell LLP, develops strategies related to cyber threats and data breaches. E-mail iahmad@ casselsbrock.com.

Comments?

E-mail jterrett@plant.ca.

PLANT 15

16-01-29 6:12 AM

MANAGEMENT

Corporate tax hikes reduce wages: study

Fraser Institute says 1% cuts hourly wage up to 0.24%

I

ncreasing corporate tax rates, rather than having no effect on average Canadians, results in lower average wages for workers, according to a study by the Fraser Institute.

The Effect of Corporate Income and Payroll Taxes on the Wages of Canadian Workers uses Statistics Canada data from 1998 and 2013 and looks only at the impact on wages. It shows that after accounting for other factors (such as a worker's age, education, occupation, and industry), a 1% increase in the corporate income tax rate reduces the average hourly wage rate of Canadian workers by between 0.15% and 0.24% in the following year.

For example, if the 2012 average combined federal-provincial corporate income-tax rate (27.3%) was increased by one-percentage point, the study says the average national hourly wage would decrease between $0.13 and $0.20, which translates into a reduction of $254 to $390 in a worker's annual wage.

The Fraser Institute explains the decrease in wages occurs through adjustments to the growth rate of wages. The think-tank con-

Corporate tax hikes cost workers.

ILLUSTRATION: FRASER INSTITUTE

tends over the longer term, higher corporate taxes reduce investment, hindering productivity growth, which ultimately impedes growth in wages and the standard of living of workers more broadly.

The study also examines the effect of an increase in the employer portion of payroll taxes-contributions made on behalf of employees to such government programs as CPP and EI.

For every 1% increase in the employer portion of the combined federal-provincial payroll tax, wages decrease between 0.03% and 0.14% in the following year.

In dollar terms, the study suggests a one percentage point increase in the 2012 average combined payroll tax rate (10.5%) would result in lower annual wages of between $137 and $605.

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@PLANT_Magazine January/February 2016

16-01-28 1:28 PM

ELECTRICITY Power users’ association president places a premium on power pricing to enhance efficiency and bring the province’s energy costs down.

Adam White, president of the Association of Major Power Consumers in Ontario.

PHOTO: AMPCO

BY MATT POWELL, ASSOCIATE EDITOR

A

dam White has some major concerns about the impact Ontario’s surging electricity prices will have on manufacturers. He believes costs are placing a too-high financial burden on industry and allowing competing jurisdictions, such as Mexico, to capitalize from Ontario’s monstrous megawatt rates.

The president of the Toronto-based Association of Major Power Consumers in Ontario (AMPCO), which represents companies that account for half of the province’s industrial power consumption, is also concerned more companies will find Ontario to be uncompetitive and won’t invest in the province.

Nor is he confident that current conditions will lead to an easing in electricity rates.

What are the most pressing issues for industrial power users right now?

AW: The issues we’re working on is cap and trade and carbon pricing and the implications of those initiatives across the supply chain for electricity pricing and markets.

It’s not so much whether or not there should be carbon pricing.

There’s a broad consensus of support for it. The concerns we have are about uncertainty and risk related to prices. Theoretically cap and trade is supposed to be subject to market outcomes, but there’s no experience with it.

We compete with a lot of jurisdictions that won’t have anything like this for a long time to come.

It’s going to be important to find a way to move forward in a practical way and not strand capital, while ensuring we’re able to attract investment to Ontario. There is so much political involvement that costs have gone

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The Ontario energy

ENIGMA A Q&A WITH AMPCO’s ADAM WHITE

up as a matter of policy.

How did Ontario get to this point?

AW: I’ve been along for the march over the past 25 years in Ontario, where there have been successive restructurings of the assets. There’s going to be more to come. There’s a risk of asset stranding, which is what happened in the 1990s in similar circumstances. The economy was flat, demand was flat. Successive years of double-digit price increases precipitated a crisis of policy and governance. We don’t want that history to repeat. We also don’t see the potential for demand growth in this market, which means we’re going to be chronically over-supplied. That’s going to increase prices.

How should Ontario ease the burden?

AW: The only way to reduce costs is by not committing to more costs. Committing to nuclear expenditures will place a lot of cost on the rate base for a long time and that’s a significant

increment on current costs. It’s of special concern if demand were to continue to shrink, and there’s a lot of potential for that to happen because of an increase in renewable energy use. The only way to reduce costs in a world where demand is shrinking is to decommission unproductive assets.

How can industrial power users reduce their costs?

AW: There is a range of solutions and some are rooted in policy. We try to work with the government to promote energy efficiency in market pricing and price signals by using rates, because those are motivators. If everything is averaged out, then no one has any incentive to do anything. By using off-and-on peak rates and if the difference is significant enough to drive differences in consumption, then there are substantial efficiencies.

Doing something significantly different will require customer engagement and the best way

to motivate them is to provide economic incentives. There is potential for off-grid solutions to provide superior reliability and support better power quality. It’s not behind-the-fence generation or about getting yourself off the grid to balance costs, it’s about making your plant better and more resilient so you can lock in your costs if you have your own on-site energy system. Whether that is going to work is really going to depend on scale.

There are opportunities such as combined heat and power, engines, natural gas – energy sources with quite high efficiencies, but they’re being used in small scale applications. There are many ways for customers to self-manage energy requirements and a lot of those solutions are getting cheaper. That makes things interesting because it provides customers with a choice.

If it works on a systemic basis the energy system as a whole can change.

Embedded energy managers are incredibly interesting, because those costs are supported through subsidies. There’s a practicality to it. It’s great that IESO has a program that’s focused on efficiency, because efficiency is what the focus should be right now.

With the links between the federal and Ontario government, is there a chance policy support might come sooner rather than later?

AW: We’d rather see systemic incentives instead of capital granting funds, which is why we like policy leaders that deal with electricity rates. That way you’re able to move levers from a utility rate-making incentive, and provide customers with a greater incentive to use power in more efficient ways. Everyone is rewarded and, systemically, you boost efficiency.

This interview has been edited.

Comments?

E-mail mpowell@plant.ca.

PLANT 17

16-01-28 1:28 PM

MACHINERY Redundancy philosophies address risks, safety and the optimum lifecycle costs of failures.

Alternating duty and standby cuts total run PHOTO: THINKSTOCK time by 50%.

E

practice? The answer depends on five important factors: • Are there hidden failures of the standby equipment?

• What are the inspection and testing intervals?

• What are the established start-up and shutdown procedures?

• What’s the process fluid or material residence?

• What are the scheduled maintenance tasks?

Adopt a duty/standby philosophy that works for you; apply it consistently; track equipment deficiencies; and optimize the switching ratio to yield significant benefits.

quipment, machinery and other physical assets are primary revenue generators, which is why there are standard practices for minimizing the exposure to risk associated with equipment or system failure.

This is especially important for rotating equipment.

Christopher Gaspard, the reliability practices lead of the Asset Performance Group – a consultancy based in Burlington, Ont. (with an office in Calgary) covered redundancy in a presentation to maintenance professionals.

“A duty/standby operating philosophy is integral to achieving a plant’s asset management goals.

It specifies operational modes for plant equipment in redundant configurations,” he explained.

There are essentially two philosophies: 100:0 (with variances of different ratios) and the 50:50. In this context, “duty” means the main operating unit (motor, pump, fan) and “standby” means the redundant, or second replacement unit.

Gaspard noted rotating equipment is designed for long, uninterrupted service. Nevertheless, the following factors influence effectiveness when running duty and standby machines: • Switching equipment “on” introduces more failure modes.

• Shafts and seals undergo increased wear during start and stop phases.

• There’s an increased likelihood for multiple failures when duty and standby run parallel.

• Start-up procedures are often complicated, therefore it’s deemed convenient to keep a standby running once it’s started.

• Human intervention introduces more failure modes.

The 100:0 philosophy means that the duty machine is run 100% on run-to-failure and that the standby is only switched on after failure occurs. The rationale is often “that’s what we have

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What’s your standby

PHILOSOPHY? ADOPT ONE THAT DELIVERS MAXIMUM RELIABILITY always done.” The spare is a guarantee only in the event that the duty machine fails.

The 50:50 philosophy provides an alternative: half of the time the duty is run, and half of the time the standby is run. Alternating the two means that assets accumulate only 50% of total

system run time, and it’s good to know both duty and standby work when needed. Also, wear and tear is distributed over both machines, multiplying the effective system lifetime; plus defects are worked out during the warranty period.

Is there an ideal duty/standby

This article is a synopsis of a presentation made at the MainTrain maintenance, reliability and asset management conference, convened by the Plant Engineering and Maintenance Association of Canada (PEMAC).

Comments?

E-mail jterrett@plant.ca.

CCOHS SAFETY TIPS

work environment, and how to protect themselves starting day one.

• Encourage them to ask questions and to alert supervisors immediately Keeping young and new if they see something that could enworkers safe danger themselves or others. Address oung and new workers are particuhealth and safety concerns promptly. larly vulnerable to workplace injuries, • Don’t assign tasks that are critical, New workers are eager to tackle new many of which occur in the first month require a high degree of skill or responPHOTO: THINKSTOCK sibility, or are risky, such as handling challenges. on the job. The reasons vary. These workers may not fully understand their dangerous chemicals. rights. Or they accept risky assignments for which they are • Demonstrate how to do each task the safe way, and not prepared. They might be reluctant to ask questions. do so more than once. Be accessible. Watch how the task And they often lack training and experience so they don’t is performed, correct mistakes and monitor the worker understand hazards in the workplace. until you are confident he/she knows how to do the work Keep them safe by taking care of the following: safely.

• Ensure safety measures and procedures that protect • Ensure all necessary personal protective equipment all workers are in place and followed. Ensure equipment, (PPE) such as safety shoes, hardhat or gloves are providmaterials and protective devices comply with health and ed and used. safety laws. Train workers on these protective measures, which must be applied at all times.

This article was provided by the Canadian Centre for Oc• Provide comprehensive health and safety orientation cupational Health and Safety (CCOHS). The not-for-profit and training before they start work. Include information federal corporation provides workplace health and safety about policy, personal responsibilities, hazards in the resources. Visit www. ccohs.ca.

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January/February 2016

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MAINTENANCE The energy company’s storage and transportation operations put a structure in place to manage change, improve performance and achieve a successful transformation of its processes.

BY STEVE GAHBAUER

A

A BETTER way to manage ASSETS

UNION GAS ACHIEVES EXCELLENCE IN SARNIA implementation tested its suitability for extension through the rest of the organization.

On-site coaching and technical training was provided to all of the key stakeholders, followed by on-the-job training and coaching. IDCON recorded observations and capitalized on some key coaching opportunities with maintenance coordinators and supervisors to illustrate the key principles of work management.

Next up were new planning and scheduling processes, which began with one crew of

chieving excellence in maintenance is a journey. It begins with a soul-searching look at practices, setting goals for improvement and forming a team to carry out the transformation from having few documented processes and a heavy reliance on “tribal” knowledge to structured management processes.

A description of such a journey was presented at a MainTrain conference, convened by the Plant An aerial view of the Union Gas storage and transmission facility near Sarnia, Ont. Engineering and Maintenance Asso- PHOTO: UNION GAS ciation of Canada (PEMAC). management (EAM) system – SAP Plant six mechanics.

Mike Hildebrand, manager of storage and Maintenance. Significant work was anticipated The top three most critical facilities across transmission operations, process improvebecause documentation was weak, resulting in STO were tackled first. Cross-functional ment and planning at Ontario’s Union Gas a heavy reliance on historical knowledge to get teams of mechanics, technicians and enLtd., and Terry Taylor, a senior maintenance work done. gineers were brought together to develop and reliability management consultant with optimized maintenance programs. Full-day IDCON Inc., in Raleigh, NC, gave an account sessions held as close to the site as possible of what Union Gas experienced during its Managing change provided easy access to equipment and the journey to excellence.

A detailed action plan addressed the higher review of specifics related to accessibility for Over several years the maintenance group priority issues with a project charter to ensure inspection and maintenance. at Union Gas Storage and Transmission Opdeliverables and timelines was created and a Continuous review and monitoring has erations (STO) near Sarnia, Ont. experienced project manager was assigned to ensure the been a critical component of the rollout. many challenges while completing annual team stayed focused on them.

Through the first year, several basic meamaintenance plans. The maintenance culture A lead was assigned to each major track, sures were tracked, including hours charged was mostly reactive. There was little to no and regular team meetings were held to to work orders and weekly schedule comcoordination among the various crafts as they maintain contact. The project manager also pliance, two important behaviours that are completed their work; more focus was needhandled change management and communileading indicators for reliability. ed on the management and lifecycle of assets; cations to all levels of the organization.

Among the final deliverables was a roadmap and there were disparate applications used by Documentation of business processes for developed and assembled by a group of frontdifferent groups throughout the company to planning and scheduling followed the basic line workers and managers that prioritized all rationalize. These factors led to the launch of “identify-plan-schedule-execute-close and of the initiatives. the Maintenance Excellence Project, which analyze” (IPSECA) process. The starting point Union Gas demonstrated that significant became the foundation for a corporate-wide was “Best Practice Processes” provided by benefits result from gathering diverse opinasset management strategy.

IDCON. From these, the standard Union Gas ions from all levels of an organization, and In early 2012, IDCON conducted a current process methodology was adopted, using that clear, realistic and measurable objectives best practices assessment, a rigorous and swim lane-type maps to clearly identify roles are ensure goals are accomplished. lengthy evaluation process. Interviews were and responsibilities. held with 30 to 40 workers from various IDCON identified a lack of maintenance maintenance, operations and other support Steve Gahbauer is an engineer, a Toronplanning and scheduling functions. Individual groups, such as supply chain, warehousing to-based business writer and a regular consupervisors managed them, working in isolaand engineering. tributing editor to PLANT. E-mail gahbaution from the other crews and crafts. A mainThe other significant driver for change was er@rogers.com. tenance coordinator was needed, starting with the anticipated rationalization of all asset-reone role planning and scheduling work for lated applications into one enterprise asset Comments? E-mail jterrett@plant.ca. three mechanical maintenance crews. A pilot

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January/February 2016

16-01-28 1:29 PM

THINK LEAN A Step Diagnostic brings together KPIs and enablers that will drive a lean implementation.

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Key performance indicators

I

mplementing lean is not a destination but rather a journey, and in most cases putting a basic infrastructure in place takes up to five years, the first two being the most difficult.

A Step Diagnostic greatly aids this transformation. It provides the following: a planning tool with time increments; an organizational roadmap, showing which methodologies an organization will be implementing and the potential impact on the upper KPIs; an organizational lexicon that defines KPIs and enablers; and a diagnostic that quickly assesses how the organization is doing.

Along the top of the diagnostic Kunst Solutions has created are KPIs with improvements gradually included along the five steps. Additional KPIs are added as more sophisticated metrics are needed to identify waste as the journey progresses. Enablers along the bottom of the diagnostic drive improvement in the metrics. Tabs with definitions support the enablers because people are seldom on the same page when it comes to definitions and how the desired future state should look.

Normally each step takes about a year to complete but some senior managers believe their organizations are smarter than everyone else and with their capable leadership, implementation will be faster.

Great! So make each step a quarter, month, week or day but be aware that it’s easy to install enablers. Managing culture speed is quite another matter. Indeed, it’s the greatest inhibitor of change.

Each diagnostic must be specific to the operation and the KPIs aligned to accounting budgets to ensure they’ll deliver the numbers in the time allowed. You now have a roadmap.

PART 1

TIME LINE

PART 2

60%-80%

80%-100%

0%-20%

Step one

Enabling attributes, processes, tools

BY RICHARD KUNST

20%-40%

40%-60%

Step two

Step three

Step four

40%-60%

60%-80%

Step five

0%-20%

20%-40%

80%-100%

How the diagnostic works: the upper portion contains KPIs that typically get more aggressive as the journey progresses. Each year additional KPI’s may be added as the low hanging fruit is harvested. Below the line is a series of enablers that will be deployed.

ILLUSTRATION: KUNST SOLUTIONS

Diagnosing

LEAN Aligning plants, managers and continuous improvement people is like herding cats into a cardboard box. Normally head office wants everyone to work on the same initiative (enabler) and then move to the next one. Each plant has a different priority, so they’ll want to work on different enablers, which is acceptable because eventually all the sites will converge.

Common goals And don’t ignore the cultural difference between sites. For example turnover is a big issue for one plant, so it’s very focused on standardized work, creating visual standard work instructions (VSWI) and rapid training models. On the other hand, another plant needs formal problem solving to eliminate disturbances to flow. The diagnostic brings them

A JOURNEY IN FIVE STEPS

together on one page and each site sets its own priority and they work towards a common goal.

Posting the diagnostic shows everyone all of the enablers, which eliminates the feeling of “flavour of the month” as people see how they all tie together.

A simple self-diagnostic is conducted annually and is included in an annual review.

Performance is noted with colour. For example, KPIs could be red=not met, green=you met plan. For the enablers, red=not planned or started, yellow=planned or started but not yet effective, green=implemented and working successfully, blue= able to train others.

Blue is also used to denote the centre of excellence (COE) within a division. All plants must conform to the COE, which must conduct at least an

annual audit to ensure the best practice is used. The COE owns the VSWIs and this ensures all sites will eventually deliver similar numbers. A 5% gap will generate a visit by the COE. Experience suggests plants will lag meeting their KPIs after implementing the enablers by one year. If the first two years of enablers are green, the year one KPI will turn green.

Richard Kunst is president and CEO of Cambridge, Ont.-based Kunst Solutions Corp., which helps companies become more agile, develop evolutionary management and implement lean solutions. Visit www.kunstsolutions.com. E-mail rkunst@ kunstartofsolutions.com.

Comments?

E-mail jterrett@plant.ca.

PLANT 21

16-01-28 1:29 PM

MATERIAL HANDLING Contestants had to jump from a mast on an elevated stage that the Grimsby manufacturer engineered and installed in China’s City of Dreams Theatre.

F

ans of the Amazing Race television program will have seen innovative Canadian lifting technology in action during the Dec. 4 episode when contestants participated in the world’s largest water show at the City of Dreams Theatre in Macau, China.

Macau is located on the western bank of the Pearl River Delta in southern Guangdong, and lies about 60 kilometres west of Hong Kong. It’s one of the richest cities in the world with an economy heavily dependent on gambling and tourism. A big attraction for tourists is the House of Dancing Water, an extravaganza with elaborate staging and, of course, plenty of water in a 270-degree theatre in the round where the top price for a single ticket on a Saturday night is $275.

The theatre features a massive pool 160 feet in diameter and 26 feet deep that holds 3.7 million gallons of water.

The Amazing Race contestants were to join the cast and jump into the pool from the elevated stage. Made up and dressed in dramatic costumes, they had to leap from a ship mast that had risen 30 feet in the air, find a golden fish underwater and deliver it to a raft before the music stopped to get the next clue.

That’s where the Canadian lifting technology came into play.

The stage under construction.

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Amazing Race contestants lept from these masts.

PHOTO: CITY OF DREAMS

AMAZING RACE gets a LIFT

HANDLING SPECIALTY’S STAGECRAFT FEATURED

Handling Specialty Manufacturing Ltd., a Whiting Company based in Grimsby, Ont., which engineers customized material handling solutions, was responsible for the amazing installation that lifts the stage.

Achieving lift It involves eight platform stage lifts to 27 feet (of which one foot is above water) to create a solid, dry floor. The total platform area is 6,441 square feet with a dynamic capacity of 322,000 pounds, and a static capacity 805,000 pounds.

Three lifts descend 3.3 feet

PHOTO: HANDLING SPECIALTY

A view of the lifting system.

below water and rise 3.3 feet to accommodate props and performers. The total area is 1,056 square feet, with dynamic capacity 52,800 pounds, and static capacity of 132,000 pounds. Six hydraulic power units are used to actuate the lifts.

They move at a maximum speed of 20 feet per minute and an electronic controls system synchronizes or moves them independently.

The company, which employs about 65 people at the plants in Grimsby (28,000 square-feet) and Hamilton (40,000 square feet), has other big projects to its credit.

PHOTO: HANDLING SPECIALTY

It also supplied the underwater lifts for the Las Vegas “O” show; wing assembly platforms for the F-35 Joint Strike Fighter at Lockheed Martin; jet engine test cell lifts for several global aerospace companies; and automotive assembly lifts, carriers and platforms for several big-name automotive companies.

Handling Specialty maintains the City of Dreams installation and reports a lucrative first five years of operation.

Comments?

E-mail jterrett@plant.ca

Lighting up the House of Dancing Water.

PHOTO: CITY OF DREAMS

January/February 2016

16-01-29 6:14 AM

AUTOMATION The Swedish robotics manufacturer picked up the automaker’s gold excellence award for a system that assembles multiple cylinder heads simultaneously.

A

BB Robotics has been recognized for its technical innovation of the jointly-developed flexible cylinder head assembly (FCHA) system that’s now being deployed to Ford Motor Co. engine plants, including the Essex facility in Windsor, Ont. The Swedish robotics manufacturer received Ford’s Global Powertrain Manufacturing Excellence award for the joint effort between Ford Powertrain Manufacturing Engineering and ABB Robotics Powertrain Robot Systems.

The system assembles multiple cylinder head architectures simultaneously, without changeovers. The modular and flexible platform based on parallel processing minimizes, and in many instances eliminates the use of dedicated stations. This incorporates redundancy for critical operations, and allows production volumes to be easily adjusted as required.

A complete FCHA system features 15 ABB robots comprised of four different medium and high payload 6-axis models. Certain modules within the system

ABB’s FCHA system is a WINNER …AND IT’S BOUND FOR FORD’S ESSEX ENGINE PLANT

The modular platform minimizes or eliminates the use of dedicated solutions.

integrate into existing, traditional cylinder head assembly stations, such as plug installation, sealer dispensing, valve train assembly and testing.

Additional features include: • force and distance monitoring for valve assembly and key up processes that prevent the damage of delicate components; • integrated key-up checks at point of assembly;

LUBRICATION

OQSx senses oil condition There are alternatives to sending oil samples to laboratories.

The OQSx sensor from Tan Delta Systems Ltd., a supplier of oil condition monitoring systems based in Sheffield, UK, is small and installs easily on any equipment. It’s configurable to any oil type and monitors in real time.

This allows more timely gauging of changes caused by wear and contaminants, allowing operators to reduce down time and increase

www.plant.ca

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Configurable to any oil type.

PHOTO: TAN DELTA

service intervals without risking equipment failure.

Tan Delta claims typical payback on the systems in as low as six months. www.tandeltasystems.com

PHOTO: ABB

• loctite/sealer dispensing single nozzle for any size holes; and • integrated quality checks throughout the assembly process.

ABB began working on the FCHA technology in 2008 for a formal design competition that Ford initiated to develop a more flexible and cost effective system for the assembly of cylinder heads at its engine manufacturing facilities.

After reviewing designs from six manufacturers, Ford selected ABB as the sole development partner.

For the last five years the ABB R&D team at the Auburn Hills facility has collaborated with the Ford powertrain group to refine the technology. In 2014, ABB won a competitive bid to deliver four complete FCHA systems.

The first will be used at the Ford Cleveland engine plant, with additional systems soon bound for Essex; Lima, Ohio; and Chihuahua, Mexico.

Comments?

E-mail jterrett@plant.ca.

COMPETITION

First Robotics declares war

Six student teams sponsored by Siemens

S

ix high school teams sponsored

by Siemens Canada will compete in this year’s First Robotics competition, which features a tower defense game that will test their robotics know-how.

The competition presents a real world engineering challenge to the teams of 25 or so students who must contend with strict rules, limited resources and time limits.

They have to raise funds, design a team brand, hone teamwork skills, and build and program robots to perform prescribed tasks against a field of competitors. And the robots have to be built from scratch in just six weeks.

The robots then compete in a series of high intensity “robo-sports” at events organized throughout Ontario and Quebec.

This year’s challenge is called “First Stronghold”, a medieval-themed tower defense game in which two alliances of three teams each compete to score points by breaching the opponent’s outer works and capturing the opponent’s tower.

Siemens Canada is putting up $30,000 for the teams, plus an in-kind grant of laptops to some of the schools, which have been refurbished by employee volunteers as part of the company’s Corporate Social Responsibility program.

Here are this year’s teams: • Knight Vision from Holy Names Catholic School, Windsor, Ont. • Chargers from Garth Webb Secondary School, Oakville, Ont. • Wildebots from Robert Bateman High School, Burlington, Ont. • The Red Devils from Oakville Trafalgar High School, Oakville, Ont. • Spartans from Craig Kielburger Secondary School, Milton, Ont. • Les aigles d’or from École secondaire Honoré-Mercier, Montréal, Que.

PLANT 23

16-03-09 7:27 AM

SPECIAL ADVERTISING FEATURE

Manufacturing: the Italian way Plenty of opportunities for Canadian manufacturers The third-largest economy in the Eurozone has a history of producing some of the world’s finest machine tools and production equipment.

M

anufacturing isn’t likely the first thing that comes to mind when thinking of Italy. More likely it’s the country’s penchant for high fashion, fancy cars (Ferrari, Lamborghini anyone?) historic architecture and incredible food.

But the third-largest economy in the Eurozone, so rich with tradition that a meal without pasta is considered blasphemy, is a place serious about its ability to produce highquality manufactured goods. It’s especially proud of its reputation as a world leader in the production of machine tools for a number of process industries ranging from packaging to metalworking.

A significant portion of Italy’s economic strength comes from manufacturing, ranking it fourth in Europe for production and third globally in the export of manufacturing technologies, behind Japan and Germany.

The Canadian and Italian manufacturing

sectors have much in common. While Italy’s population of 60 million is a little less than double that of Canada, both countries’ manufacturing sectors are well aligned for collaboration and face similar challenges.

They’re home to a significant cluster of small and medium-sized companies, many of which are focused on high-technology and foster cultures of innovation.

There are 320 companies in Italy that employ more than 29,000 workers producing industrial machinery and other manufacturing technologies, exporting about 71% of what they make, according to UCIMI, the country’s association for producers of machine tools, robots and automation systems. The business group is part of Federmacchine, Italy’s national association of manufacturers that represents 15 industrial sectors such as metalworking, woodworking, plastics and rubber, machine tools, robotics and automation.

Machine tools were of specific focus in a late-November delegation hosted by the Italian Trade Agency (ITA), which brought media members and university students from around the world to Italy’s manufacturing heartland in the northern province of Lombardy, more specifically the country’s economic engine in Milan, and the small town of Castellanza about a half hour’s drive away. Varese, the capital of the province of Varese, also played host.

Nestled along the feet of the beautiful Campo dei Fiori mountain range close to the northern border between Italy and Switzerland, the Varese region is driven by industry. It’s home to a number of well-known manufacturers such as appliance-maker Inglis (owned by Whirlpool), motorcycle manufacturer AgustaWestland and auto parts supplier Cobra Automotive.

The delegation was highlighted by the ITA’s Italian Technology Awards at Varese’s Centro Congressi Ville Ponti, which celebrates innovative student thesis projects related to machine tools and manufacturing technologies (see sidebar).

The event also saw the release of an Italian

ITALY AT A GLANCE AMONG THE

ONE OF

COMPETITIVENESS

WORLD’S

COUNTRIES WITH A

OF TOTAL INDUSTRIAL

IN MACHINERY

PRODUCERS OF

MANUFACTURING SURPLUS

PRODUCTION

MACHINED PARTS

TOPPING $100 BILLION

TOP 3

JUST 5

75%

#2 IN GLOBAL

EXPORTS

INDUSTRIAL PRODUCTION TOPPED

$46 BILLION IN 2014

Source: Italian Trade Agency/ FEDERMACCHINE

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16-01-28 1:30 PM

manufacturing awareness survey completed by the Society of Manufacturing Engineers (SME), based in Dearborn, Mich. For the first time ever, the usually US-focused survey includes data from manufacturers in Canada and Mexico, which gauged the level of knowledge producers in each country have about the Italian manufacturing sector to identify export opportunities.

The survey is part of a greater effort by the ITA to boost the presence of Italian-made machines within NAFTA, which the agency has identified as a region ripe with opportunities.

Mexico’s automotive manufacturing sector is booming as global automakers take advantage of significant government incentives to open plants there. Canada, which is facing its own set of manufacturing challenges, is also ripe for investment. The low-dollar may make capital investments more difficult for manufacturers, but increasing exports to the US would mitigate the impact.

According to Allesandro Sinatra, a professor in the engineering management faculty at the Università Carlo Cattaneo in Castallenza, Varesse, Italy’s industrial cluster is home to more than half a million SMEs, which employ more than 2 million people.

“The leaders of these companies have a strong technical background and an enormous ability to innovate,” he said during a lecture to students involved in the Italian Technology Awards titled, The Italian Way of Doing Business.

These companies represent more than

35% of the country’s export capacity, with most of them exporting up to 90% of their production. More than 150 industrial districts dotting Italy’s northern-most regions employ more than 22 million people, of which about 25% are dedicated to mechanics manufacturing, including machine tools and automation technologies.

Textiles, furniture and footwear also make up a significant portion of Italy’s manufacturing mix.

Many companies are family run and deal with similar challenges related to exporting and grappling global opportunities.

Historically, Canada has depended on the US market to drive exports, and Italy is in a similar situation within the European Union.

The country’s largest trade partners include Germany, France and Spain. China is also a large importer of Italian-made production equipment.

The Italian Trade Agency, with its Canadian headquarters in Toronto, via the Machines Italia project, is working hard to help manufacturers across North America identify opportunities in the Italian marketplace by providing information and assistance in establishing relationships with Italian companies.

The agency’s 2016 awareness survey has identified North America as a bright spot in an increasingly challenging global marketplace.

Although Mexico is a promising prospect for future growth, the US and Canada will also continue to play vital roles in the global environment. Imports from Italy to Canada have continued to grow steadily from 2.64% (of total imports) in 2012 to 3.12% in 2014, and that trend is expected to continue.

Leveraging the Italian Trade Agency’s services will help Canadian manufacturers expand their abilities as players in the global marketplace, and help them take advantage of Italy’s historical ability to produce some of the world’s finest manufacturing production equipment.

To explore manufacturing opportunities in Italy, contact the Italian Trade Commission’s Toronto office at info@italtradecanada.com or 416-598-1566.

Italian Technology Awards Students from around the world solve manufacturing problems VARESE, Italy — The Italian Trade Agency welcomed more than 30 university students from around the world to northern Italy in November to take part in the Italian Technology Awards, which identifies solutions to mechanical engineering and manufacturing related issues.

The international coalition of students, from countries including the US, Russia, Mexico, Iran and Brazil, also took part in seminars focused on lean manufacturing at the LIUC – Universita Cattaneo, an independent university in Castallenza, a small town in the province of Varese that is home to a Mechanical Engineering Management masters degree program.

Projects focused on a number of industries, including machinery related issues in the ceramics, plastics, rubber, machine tools, textiles and packaging sectors. The papers were based on actual case histories developed around mechatronics and the role of mechanical engineers while exploring topics such as the use of geometric dimensioning and tolerancing (GD&T) to lower manufacturing costs.

24-25_PLNT_JanFeb_2016.indd 25

The winners of the 2015 Italian Technology Awards.

PHOTO: ITALIAN TRADE AGENCY

The program aims to enrich the education of students in engineering and to advance their knowledge of important issues within industry.

16-01-28 1:30 PM

SUSTAINABILITY Well-planned energy management is key to reducing your facility’s carbon footprint and reducing costs.

BY THULASI NARAYAN

26 PLANT

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PHOTO: THINKSTOCK

I

ndustrial buildings still lag in the application of green building strategies. One reason is the great diversity of industrial facilities and their processes.

With such variation, it’s much more difficult to establish the best practices, standardized design approaches and uniform operating procedures that have accelerated green building adoption rates in other sectors.

Yet manufacturers have a tremendous opportunity to optimize their buildings’ performance and capture the many benefits of green design, technologies and operating practices.

Commercial office buildings and multifamily projects focus primarily on how the building itself uses energy through systems such as HVAC, ventilation and lighting, as well as plug loads from signage, computers and other devices.

Plants consume a small percentage of energy compared to process equipment, so focus management efforts on properly designed, efficient process lines operated and maintained for the life of the equipment.

Because there are so many moving parts in a plant, periodic commissioning of process equipment ensures operating schedules are correct, equipment is rightsized for the work and nothing is malfunctioning or wearing out the equipment too quickly.

Many plants, especially those processing food, operate on razor-thin margins; thus, energy use per product can contribute greatly to the operator’s profit margin. A food processing facility can ring up to $15 million in energy bills per year, so even a modest energy reduction of 20% contributes a substantial cut to the product cost.

Energy management can be as

GREENING your PLANT FOUR BASICS FOR BEST ENERGY PERFORMANCE simple or complex as a plant’s budget and systems allow, but the basics are the same.

Green benefits Here are the four common elements: 1. Energy assessment.

Understand which pieces of equipment or systems are using the most energy. A cold storage facility will draw a lot of energy through its refrigeration equipment, while the major end users at a coffee manufacturing facility will be the roaster and packaging lines. Technologies such as energy meters and heat sensors provide the data, and diagnostic tools map the facility’s energy use profile, including anomalies and consumption patterns that may signal opportunities to reduce energy use. A complete operating profile allows operators to identify the equipment that uses the most energy, which improvements are likely to provide the fastest payback, and which processes or equipment to prioritize for improvement.

2. Optimization analysis.

Explore how the system can be tuned for optimal performance.

This step often involves system modelling by specialists. Analysis identifies whether temperature reset points are properly refined or if equipment is switching on in the middle of the night when no one is using it. Equipment may be designed to support three lines when only one is running, or undersized and getting overloaded. Optimization also identifies low cost adjustments and more extensive modifications that extend equipment life, reduce risk of failure and avoid unexpected capital expenditures.

3. Energy management plan. Document the optimal performance settings for individual pieces of equipment and the overall system. The plan provides a roadmap for facility operators and guides the implementation phase. Typically, it also outlines a re-commissioning process for transitioning a plant from current state to a more optimal operating state.

Include a monitoring and control

plan that provides the information and protocols for operators to measure performance over time and keep the system optimized.

4. Implementation. Good leadership and project management processes are needed to make the changes. Involve facility and plant managers in the process, starting in the assessment phase. Their detailed knowledge of system requirements, equipment idiosyncrasies and other quirks is key.

These four steps will reap cost savings and the other benefits of green buildings. The process is flexible and can be used on individual pieces of equipment, a subsystem, and across an entire plant or several plants in different geographies.

Thulasi Narayan is a senior consultant at Paladino and Co., a green building and sustainability consulting firm based in Seattle, Wash. Visit www. paladinoandco.com.

Comments?

E-mail jterrett@plant.ca.

January/February 2016

16-01-29 6:16 AM

FINANCE The market offering will support the deployment of Canadian technologies domestically and abroad.

BY MATT POWELL, ASSOCIATE EDITOR

E

xport Development Canada (EDC) has issued a new US$300 million, 1.25% fixed-rate green bond to support Canadian companies in the budding clean tech and renewable energy sectors that are deploying their technologies at home and abroad.

The support will include loans to companies developing air, water and soil remediation, biofuels and bioenergy, smart grid infrastructure, alternative energy transportation, and climate change mitigation technologies, and industrial process improvements.

“This [green bond] ... is important to further the development of renewable and clean technologies in Canada, and to bring those technologies abroad,” says Susan Love, EDC’s vice-president and treasurer.

Toronto-based energy developer Northland Power Inc. used more than $147 million in financing to develop Project Gemini, a 600-megawatt offshore wind farm in the Dutch North Sea. When completed in 2017, it will be the second largest offshore wind energy installation in the world.

EDC boosts GREEN bonds $300M SUPPORTS CLEANTECH DEVELOPMENT

Innovative technology

BioAmber’s succinic acid plant in Sarnia, Ont.

In Sarnia, Ont., biofuels and biochemicals developer BioAmber Inc., used part of the capital raised from EDC’s initial green bond in 2014 to construct its $140 million plant, a joint-venture with Mitsui & Co. The facility uses an innovative biotechnology and employs 60 workers to produce succinic acid from various forms of sugar. The acid, typically derived from fossil fuels, is a building block material added to plastics, polyurethane,

paints, lubricants and personal care products.

When the CO2 emissions-free facility is running at full capacity by mid year, it will produce 30,000 tonnes of succinic acid annually. Another, much larger $500 million facility is planned for Sarnia or Louisiana.

EDC’s green bond program (led by underwriters BofA Merrill Lynch, Crédit Agricole CIB and Morgan Stanley) includes more than

PHOTO:BIOAMBER

40 projects in Canada and abroad.

The $300 million issue is a fraction of the burgeoning green bond markets, which topped $36.5 billion in 2014, according to Moody’s Canada Inc. The credit rating agency anticipated green bond volumes to reach more than $40 billion globally by the end of 2015.

Comments? E-mail mpowellt@plant.ca.

VIRTUAL POWER

Powerwalling the microgrid

Tesla technology makes its Canadian debut

A

n Ontario utility is launching a project that will utilize Tesla’s Powerwall energy storage unit coupled with residential solar power to create two residential microgrids in Ajax, Ont. using a Canadian software firm.

Veridian Connections, which services 119,000 customers in Ontario, will launch the program in the second quarter of 2016. The microgrids, to be installed and aggregated at Veridian’s Ajax headquarters, will be operated as a “virtual power plant,” the company said.

One will employ 10 kilowatt-hours of solar power generation, 14 kilowatt-hours of lithium-ion battery storage as well as an electric vehicle charging station. The other will utilize a seven kilowatt-hour Tesla Powerwall storage unit connected to a residential solar system.

www.plant.ca

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Tesla’s Model S sedan and Powerwall energy storage unit.

PHOTO:TESLA

Veridian’s project will integrate several clean energy sources to maximize load efficiencies and energy use

PLANT 27

16-01-29 6:16 AM

PARTNERS IN PREVENTION 2016 HEALTH & SAFETY CONFERENCE & TRADE SHOW

New Frontiers in Health & Safety KEYNOTE SPEAKERS

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Ziya Tong

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Daily Planet Co-Host

Rise of the Robots:

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Technology & the Threat

One Engineer, 112 Little Robots, Toys,

The Animal Kingdom

of a Jobless Future

Insects & Star Wars Movies

April 26 – 27, 2016

Par tnersinPreventionConference.com

The International Centre 6900 Airport Road, Mississauga • Ontario

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2016-01-28 9:02 AM

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CIEN EQUIPMENT NEWS CANADIAN INDUSTRIAL

TECHNOLOGY

SUPPLY LINES

A Primax auto-prime pump.

PHOTO: PRIMAX

WAJAX OFFERS PRIMAX

Using rugged tablets improves visibility into plant operations.

PHOTO: XPLORE TECHNOLOGIES

MOBILIZE your PLANT Designed to operate in tough environments such as plants, they deliver important data accessed from across the organization directly to workers.

BY SCOTT BALL

G

lobalization is creating many new competitive pressures for manufacturers that are responding by making new technology investments to improve agility, meet customized product requests, and optimize new product introduction cycles. Pressure on pricing is increasing, but margins need to be maintained and costs managed without sacrificing

www.plant.ca

INCREASE PRODUCTIVITY WITH RUGGED TABLETS

quality. How can manufacturers do more for less?

Many firms are turning to mobile tablets to simplify internal business operations and help employees perform process-based tasks more efficiently by connecting them wirelessly to on-premises systems or the cloud. Information quality is improved across the organization while delivering important data to the point of performance where workers access and record information. This gives companies more visibility into their operations, and allows them to excel in a number of identified, key operational areas, such as inventory control, materials management, and shipping and receiving.

Improving productivity is the number one reason

Industrial distributor Wajax Industrial Components in Montreal is adding Primax auto-prime pumps and support equipment for harsh operating conditions, including dewatering applications, to its product portfolio.

Primax pumps use advanced hydraulics, which improve fluid handling efficiencies and reduce maintenance needs. Their auto-priming system allows the pumps to run dry for extended periods of time without being damaged.

Flow rates are to 17,899 US gal./ min. and generate pressures up to 814 ft. of differential head, or 352 psi.

LIFT TRUCK ROBOTICS DEAL Hyster-Yale Group has entered into a preferred vendor cooperation agreement with robotics specialist Balyo Inc. to market self-guided trucks in North America.

Balyo, its North American headquarters based in New York, makes autonomous driving forklifts that navigate without reflectors, wires or magnets. The technology selects structural elements of the facility to build a map. Once the map is created, each self-guided truck compares, in real time, what its navigation module sees against the stored map. The truck self-locates and moves along its intended path.

Hyster-Yale, manufacturer of Hyster and Yale lift trucks, is based in Greenville, NC.

Continued on page 30

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16-01-29 6:35 AM

PRODUCT FOCUS

TECHNOLOGY Continued from page 29

driving mobile adoption in manufacturing, where companies are more receptive to embracing the technology because of growing familiarity with consumer tablets, the presence of a more robust application ecosystem, and recent improvements in wireless infrastructure.

Chip giant Intel has studied manufacturing productivity extensively, and research at its factories shows a 17% increase in productivity, based on completed work orders. When setting up thousands of tool parameters, accuracy was far greater than using print versions, saving 300 pages per tool with a 30% reduction in time.

While it’s appealing to purchase commercial tablets, you can’t put one in a plastic or rubber case and assume the device is ready to use in a plant. A VDC Research study shows a much higher average failure rate for commercial-grade tablet PCs at 16.7% compared with an 8.5% failure rate for rugged units, which are generally certified for the military standard MIL-STD – 810G. The certification requires at least a four-foot drop rating, and addresses resistance to heavy vibrations and extreme temperature fluctuations. Intrinsically safe tablets are certified for hazardous locations with potentially explosive atmospheres.

More accurate information using tablets.

Tablets are often subjected to dust and grime in industrial environments, and could also be exposed to water. Look for Ingress Protection certification of IP54 and higher when selecting a device.

Synchronization with backend systems is also taking place in real-time, providing better quality information. For instance, production line managers are receiving immediate updates from the shop floor and monitoring production workflows so resources can be reallocated where needed; and financial managers are running data mining applications that analyze shop floor data for the latest costing information.

A mobile computing solution should include a vision on how mobility is to be deployed within the existing technology infrastructure. Mobility success is heavily depen-

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dent on upfront planning and framework.

The first step in a mobile strategy is analyzing business processes, finding ways to improve productivity and removing waste – key principles from the ‘lean’ playbook. Identifying use cases for mobility and segmenting targeted users must also be done in the early stages.

This is followed by developing a technology architecture foundation that includes security and performance requirements. The last step is examining digital assets and delivering the right information, at the right time, to the right device.

Specific needs must be considered. For example, a large aerospace manufacturer needed a wide-screen for technicians viewing schematic drawings, along with the capability to access multiple application windows, running simultaneously.

SENSORS

Specific requirements At a food manufacturing plant, where warehouse workers receiving inventory move perishable items onto forklift trucks from the dock to cold storage, a tablet must be viewable when taken outdoors in potentially bright sunlight. It must also be dock-mountable on a forklift and withstand extreme temperature fluctuations when the vehicle moves in and out of refrigeration.

Other considerations include ergonomics, size and weight, and battery life. Will workers be wearing gloves when inputting data?

Do they need a special tablet harness when climbing ladders? The size and weight of a tablet has bearing on the model selected. Feel the difference between holding a two-pound versus four-pound bag of sugar after one hour. And finally, when it comes to battery life, a tablet must last a full shift, as much as eight hours, and offer hot-swap capabilities.

Study existing pain points in workflows, so more customized mobile applications can be designed for specific roles or tasks within manufacturing processes.

Choose one functional area that offers the fastest ROI for productivity gains – such as automating paper-based processes – and expand slowly from there with small, measurable wins.

Finally, enlist senior management support and keep user training at the forefront for best possible results in your mobile innovation journey.

Scott Ball is the Canadian director, sales at Xplore Technologies, a global provider of rugged tablets for manufacturers. E-mail sball@xploretech.com.

Comments? E-mail jterrett@plant.ca.

Handles up to six pumps in 12 zones.

SENSORLESS CONTROL FOR PUMPING SYSTEMS Armstrong Fluid Technology’s IPS 4000, an integrated pumping system multi-zone control, optimizes energy performance, system handling and installation.

The control has a “sensor within” so it doesn’t rely on remote sensors to optimize the control of any variable flow HVAC system.

With patented Best-Efficiency staging in a headered configuration, the IPS 4000 operates in either a stand-alone mode or networked through the BMS to maximize the performance profile of up to six pumps in 12 zones.

Key features and benefits include: • Performance efficiency exceeding ASHRAE 90.1 2010, MEI 2015 compliant and achieves IE3.

• Easy installation and integration with existing HVAC systems.

• Field configurable by the user interface.

• Parallel sensorless technology.

• Enhanced performance data for optimized staging of pumps.

• Multi-zone control.

• Control of the by-pass valve in the de-coupler line, ensuring minimum flow rate requirements.

• Automates variable primary pump stations in response to changing number of chillers/boilers.

• Reads the flow from pumps, a flow meter or both.

Armstrong Fluid Technology, based in Toronto, makes intelligent fluid flow equipment. http://armstrongfluidtechnology.com

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MEASURE HIGH LASER POWERS WITHOUT WATER COOLING gy from 100 mJ to 4,000 J; Ophir Photonics Group and up to or 8,000 J with has four new thermal laa pulse of 0.5 sec. The ser sensors that measure sensor has a large 50-mm high-pulse energies, but aperture and spectral without large, warange of 0.25 to 2.2 µm, ter-cooled devices. and 2.94 µm.

The compact sensors The L30C-LP1-26-SH is measure energies up a conduction-cooled to 8,000 J. The laser laser sensor with a high irradiates the sensor for damage threshold LP1 a short time, from 0.1 to coating for measuring 1 s, and the energy of the high pulse energy and pulse is used to calculate intermittent power. The the power. sensor measures up to 10 The L40(150)A and W of continuous power L50(150)A measure from (100 W for two minutes) 100 mW to 150 W and and energy to 2,000 J; up laser energy from 100 mJ Measure energies up to 8,000 J. to 4,000 J with a pulse of to 4,000 J; and up to 8,000 0.5 sec. It features a spectral response of J with a pulse of 0.5 sec. Each sensor has 0.25 to 2.2 µm. a large 50-mm aperture and broad spectral Ophir Photonics is a provider of instruresponse of 0.19 to 20 µm. mentation based in North Logan, Utah.

The L40(150)A-LP1 measures laser www.ophiropt.com/photonics power from 100 mW to 150 W and ener-

Three-wire NPN or PNP styles.

PHOTOELECTRICS SET FOR TOUGH ENVIRONMENTS AutomationDirect FM photoelectric sensors handle harsh duty. They come in three-wire NPN or PNP styles and 27 washdown models.

The 10-30 VDC rectangular sensors are fitted with 316L stainless steel housings for food and beverage applications and come in diffuse, diffuse with background suppression and polarized retroreflective styles.

The sensors have an attached two-meter output cable, or an M8 or M12 quick-disconnect.

All models have a selectable light-on/dark-on output setting. Sensing ranges are up to 10 m.

AutomationDirect is a distributor of industrial automation products based in Cumming, Ga. www.automationdirect.com/photoelectric

HOLD

Made for speed monitoring.

MORE

WITH CREFORM 42mm PIPE.

PROXSWITCH’S PULSE OUTPUT TO 120 VAC/VDC 4B Components Ltd. has developed two new versions of its P800 line of proximity sensors.

The P8003V10C and P8004V10C with solid state relays for speed monitor applications requiring a pulse output up to 120 VAC/VDC for PLC integrations. Both sensors also detect shaft, gate or slide position as well as object presence.

For speed monitoring applications, P800s are used with 4B’s patented Whirligig guarded target and sensor mount. The Whirligig has 1, 2, 4 or 8 pulse targets and attaches to the rotating shaft by either a ½-in. tapped hole, or magnetically using a Mag-Con adapter.

P800s are fully encapsulated in a polycarbonate body that’s corrosion and abrasion resistant, dust-tight and waterproof (IP67); and they’re approved for CSA class II division 1 groups E, F and G hazardous dust environments. No contact is made between the sensor and the object being monitored.

SpeedMaster works with both models to test functionality after the initial installation, and during routine maintenance procedures.

4B, a subsidiary of The Braime Group based in Morton, Ill., makes material handling components for the industrial sectors. www.go4b.com

Simplify and strengthen structures. Creform unique 42mm pipe is 2-1/2 times stronger than standard 28mm pipe so structures can be built in less time using less material. Build wide-span, heavy-duty, high-capacity structures as simple, open designs using less bracing and joints. And structure possibilities are virtually limitless because 42mm/28mm transition joints give you access to all of Creform’s 700-plus 28mm components and accessories.

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

w w w. c r e f o r m . c o m • 8 0 0 - 8 3 9 - 8 8 2 3

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PRODUCTS AND EQUIPMENT SENSORS

For wall or tube installation

MEASUREMENT WITH REMOTE SENSOR Baumer’s CombiLyz AFI5 conductivity meter separates the inductive sensing element from the CombiView display/transmitter, which allows the two components to be installed separately and connect via a cable.

This places the sensor where it best measures the process, while the display/transmitter is mounted in a safer or more convenient location.

Use it for wall or tube installation, adjusting optimally for any angle. The rugged sensor works in ambient temperatures of up to 85 degrees C. A stainless steel hygienic version meets tough CIP & SIP processes with its IP 69 K protection class. There are 14 selectable measurement ranges from 500 µS/ cm to 1,000 mS/cm. This includes the concentration, temperature, current output, switching states and device status.

The sensor’s accuracy is better than 1% of full scale, with a response time of less than 0.3 sec. for conductivity measurements and less than 15 sec. for temperature measurements.

Backlighting of the display sets to change colour automatically based on the measurement result. Display settings are changed easily using the touchscreen display even while the process is running.

The Baumer Group, a manufacturer and developer of sensors, encoders, measuring instruments and components for automated image-processing, has Canadian offices in Burlington, Ont. www.baumer.com/combilyz

LONG DISTANCE SENSING, COMPACT THREAD Carlo Gavazzi compact ultrasonic sensors provide long sensing distances up to 800 mm, in spite of a compact thread length of 38.3 mm.

Their M18 housings are constructed of thermoplastic (UA18CSD) and stainless steel (UA18ESD).

Digital NPN or PNP versions are either NO or NC, and support two different set‑points, providing a detection “window.”

Analogue output versions include 4‑20mA or 0‑10 VDC, with positive or negative slope.

A “teach-by-wire” function eas-

VALVES VUVGs HANDLE MULTIPLE FUNCTIONS Festo’s VUVG valves for direct-wired directional control cover a range of applications. They include cost/space saving dual 3/2 functions, flow rates from 100 to 1,380 l/min. with threaded connections M3 to ¼ in., and inline or manifold mounted configurations.

Manifold valves feature multiple pressure zones, and they’re easy to assemble, or come assembled. The high flow rate to size ratio makes the VUVG compact.

Multiple voltages (5 V, 12 V and 24 VDC) are available in IP40 or IP65, with various electrical connection options including M8, and large LED indicators viewable from any angle.

Festo is a German industrial control and automation company with offices in Mississauga, Ont. High flow rate to size. www.festo.com

Thermoplastic and stainless steel housings.

ily sets up the sensor parameters.

Standard connection options include a 2-m PVC cable or M12 connector.

All UA18CSD and UA18ESD sensors are IP67, have cULus UL508 approval, and can be operated with 10 to 30 VDC. Carlo Gavazzi is an automation company based in Mississauga, Ont. www.gavazzionline.com

NOZZLES

DISPLACEMENT AND POSITION FOR CONFINED SPACES

NOZZLES STOP LIQUID FLOW

Inelta IZAL sensors with differential sensing technology from Hoffmann + Krippner Inc. deliver precise path length measurements in applications with highly confined spaces.

Although the 4-mm diameter housing of these linear variable differential transformer sensors are barely larger than a matchstick, the interior provides a complete and powerful measuring system with a core and coils.

These contactless, wear-free sensors for displacement and position detection achieve a linearity tolerance of ± 0.5% (optionally 0.25%) and are designed for extremely small measuring ranges (1, 2.5 and 5 mm).

The housing is made of chemically nickel-plated steel (IP65) and they have a temperature range of -25 to 85 degrees C, which can be extended for use in harsh and demanding environments.

Protected from harsh environments.

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The actuation takes place via an unguided core, with the sensors connecting via a 1-mm cable (other lengths optional). Custom versions are available.

The Hoffmann + Krippner Group, its North American base in Alpharetta, Ga., specializes in input and output systems as well as sensors. www.hoffmann-krippner.com

For liquids up to 800 centipose.

Exair’s no drop external mix atomizing spray nozzles stop liquid flow when compressed air is shut off to eliminate drips and problems on sealing or mating surfaces.

The nozzles, in round, narrow angle flat fan and wide angle flat fan configurations, are used for pressure fed applications, such as painting, coating, rinsing, wetting, dust control and humidification.

Interchangeable liquid and air caps adjust to minimize air and liquid consumption.

The CE-compliant nozzles are conflict mineral free and used on liquids up to 800 centipose.

Exair is a manufacturer of compressed air products based in Cincinnati. www.exair.com

LIGHTING BRIGHTER LIGHT WITH L41LEDS Lind Equipment has redesigned the L41LED dock light, making it brighter.

Indeed, it’s more than twice as bright, incorporating high efficiency, high-quality LEDs that light up all the way to the back of a trailer.

It’s built on the same rugged

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PRODUCTS AND EQUIPMENT

Rated for more than 50,000 hours.

platform and housing as the L41 quartz halogen dock light but with the extra bright LED chips inside. It doesn’t heat up, the LEDs are rated for more than 50,000 hours, and the light uses just 38 W of power, compared to 500 W for a quartz halogen dock light.

Lind Equipment is a manufacturer of LED lighting and industrial lighting based in Markham, Ont. www.lindequipment.net

AUTOMATION EASES AUDIT TRAIL FUNCTIONS B&R has added an audit trail component to its mapp technology for applications subject to the FDA’s Title 21 CFR Part 11 requirements and to accelerate machine process development and reduce investment risk.

Retracing actions performed on a machine is also a service to

its manufacturer in the event of warranty claims, specifically for companies that require operational logs. mapp handles recurring programming tasks by preconfiguring basic functions that are easy to use and have already been extensively tested, allowing programmers to focus on implementing machine processes in the application software.

Preconfigures basic functions.

The automation software retrieves operator information from the user component system using the client-server principle without writing a program for the audit trail function.

Data is stored in memory with a checksum mechanism that enhances tampering resistance. The data is outputted via encrypted file or viewed on an HMI using the integrated mapp audit visualization function.

B&R is a developer of industrial automation technologies based in Atlanta. www.br-automation.com

MACHINING PALLET SYSTEM OPTIMIZES MACHINE LOADING The NSA plus module for Schunk’s VEROS quick change pallet system maximizes precision in automated machine loading applications.

The palletizing module achieves pull-in forces up to 20,000 N, while holding forces are higher than 100,000 N. In demanding volume cutting applications, extreme shear forces are absorbed without changing the workpiece’s position and is directly integrated in the machine table to enhance process reliability.

To prevent the access of chips and dirt into the automatic changing process, a forced air flow cleans the faces during pallet change and keeps the contact face of the pallet chip-free. Centering rings ensure precise positioning and clamping slides for a form-fit, self-locking fix, making

the repeat accuracy amounts to less than 0.005 mm.

A system monitors the dynamic pressure of every process step, including module open, module closed, and presence of the pallet.

For pick-up purposes, the pins lift the pallet to simplify changes.

Schunk is a manufacturer of clamping and machining tools based in Lauffen am Neckar, Germany. www.schunk.com

SUCCESS GUARANTEED Find out the advantages of our QUALITY GUARANTEE when you work with us!

CUTTING TOOLS

Concentric Clamping Elements

CUTTERS ENHANCE REMOVAL RATES

Swing Clamps

Walter’s BLAXX M3024 heptagon milling cutter boasts the line’s wear-protected black tool body, plus indexable inserts with 14 cutting edges.

The cutters, in diameters from 40 to 160 mm, are formed using Walter’s advanced cutting tool Diameters from 40 to 160 mm. material, Tiger·tec Silver to increase productivity.

There are two CVD coated grades (WKP25S, WKP35S) for machining steel and cast iron, and three PVD coated grades (WSM35S, WKK25S and WSP45S) for steel, stainless steel, cast iron and difficult to cut materials.

The inserts are secured by Torx Plus screws to improve stability and process reliability. A screw-secured solid carbide shim enhances support and high feed per tooth, plus optimal contact in the pocket.

They come in three geometries, including the F27, F57 and F67, which optimize stability, universal application and easy cutting action.

Walter is a manufacturer of metalworking tools based in Waukesha, Wis. www.walter-tools.com

Valves

Carr Lane Roemheld knows your power workholding system needs to be of the highest quality. That’s why, if you work with us, you’ll get the best system, and top quality results.

We stand behind our products, and provide you with the excellent service you need to remain competitive in today’s manufacturing environment.

Block Cylinders Extending Clamps

Fittings & Accessories

Locking Piston Cylinders

Push Clamps

Work Supports Power Sources

Vises

View our CNC machining section at:

www.clrh.com

Fenton, MO 63026 (636) 386-8022

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Repeat accuracy of 0.005 mm.

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PRODUCTS AND EQUIPMENT FASTENERS STUDS INSTALL IN METAL SHEETS AS THIN AS 1 MM PennEngineering’s PEM X-Press self-clinching flush-head studs quickly mate with push-on plastic nuts, wire tie products or other plastic fasteners in thin metal assemblies.

A coarse thread reduces assembly time and enhances

Five- and 6-mm threads.

retention force of the stud once it’s installed; and it also accommodates paints and coatings.

The studs, manufactured from hardened carbon steel, install permanently in metal sheets as thin as 1 mm, pressing easily into place using any standard press. They’re also installed automatically during the stamping process using an automated Pemserter press equipped with in-die technology.

The head of the stud mounts flush in the metal sheet for a clean and more attractive finished appearance compared

with alternative methods, such as welding.

The studs are finished with zinc and clear chromate to enhance rust prevention.

They come with 5- and 6-mm threads, in lengths from 10 to 25 mm.

PennEngineering is a fastener manufacturer based in Danboro, Pa. www.pemnet.com

MOTION CONTROL

PLANT EXPO

September 27 2016 Bingemans Centre, Kitchener, Ontario

PLANT

Optimized for high-quantity production.

E P

NUTS ENHANCE BACKLASH COMPENSATION

PLANT OPERATIONS PRODUCTION AND AUTOMATION

This one-day tabletop show will bring together buyers and specifiers from the industries your company is trying to reach…

Automotive  Food Processing  Plastics  Chemical Processing  Mining  Oil & Gas  Utilities Aerospace  Custom Fabricators  And more…

Put your products in front of hundreds of potential buyers including…

Plant Managers  Engineers Technologists Plant Operations  Production Managers  Designers Maintenance Managers  Safety Managers Purchasing Managers  And more…

Don’t miss out – Reserve your table today!

To view more information go to www.PLANTExpo.ca

EXHIBIT SALES HAVE STARTED AND SPACE IS FILLING QUICKLY! To discuss sponsor and exhibitor options, contact Mike King, Publisher

Presented by:

416-510-5107  mking@plant.ca

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Haydon Kerk Motion Solutions has added an anti-backlash lead screw assembly to its line of two mm Micro Series screws.

The ZBM nut technology is customized for specific applications that require unique geometry and custom materials, such as Kerkite composite polymers.

A special nut thread system combines with a radial force to provide simple backlash compensation. The nut performs well in applications that require precise, smooth motion and where space is at a premium.

They fall within the current dimensional envelope of standard freewheeling nuts, making a transition to an anti-backlash system easier. They’re optimized for high-quantity production and high-production efficiencies.

Kerkite engineered polymers or customer-specified materials (including PEEK) deliver smooth, efficient rotary-to-linear motion conversion. A Kerkote TFE coating reduces torque requirements to produce the same amount of force, leading to a longer assembly life and possible motor size reduction.

Haydon Kerk Motion Solutions is a developer of actuator and motor assemblies based in Hollis, NH. www.haydonkerk.com

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PRODUCTS AND EQUIPMENT MATERIAL HANDLING

Sizes from 10 to 110 mm.

SUCTION CUPS IMPROVE PRODUCTIVITY Piab’s dual durometer Duraflex suction cups speed up robots and improve productivity for the high-speed unloading of parts with textured surfaces, such as moulded plastic components.

Sizes are from 10 to 110 mm. A single bellow stays more stable when in motion, allowing robots or production lines to run at higher speeds, while maintaining accuracy and precision.

Soft, flexible lips made from a material with the elasticity of rubber and wear resistance of polyurethane suit uneven and porous surfaces. The mark-free material’s durability and elastic memory increase their longevity.

Improved stability enhances part placement when the cups are used in holding fixtures to improve the quality of finished products and reduce scrapped components.

Piab is a developer of vacuum components based in Täby, Sweden. www.piab.com

INDUSTRIAL OVENS

Reaches 343 degrees C.

HIGH-TEMPERATURE OVENS EASE WELDING Grieve’s 812 high-temperature top-loading oven reaches temperature up to 343 degrees C to heat stainless steel and ease welding applications.

The 72 x 36 x 36 in. oven is equipped with 40 kW in Incoloy-sheathed tubular elements to heat the workspace. A 3,300 CFM, 2 hp recirculating blower

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provides horizontal airflow to the workload.

Durability is enhanced by 5-in. thick insulated walls, an aluminized steel interior and exterior and reinforced 1/4-in. steel plate top. There’s also an air-operated rear hinged door and wear bars at the sides of the workspace.

The floor of the workspace is reinforced for 3,000 lb. loading at removable subway grate.

Controls include a digital indicating temperature controller, manual reset excess temperature controller with separate heating element control contactors and recirculating blower airflow safety switch.

Grieve is a manufacturer of industrial ovens based in Round Lake, Ill. www.grievecorp.com

STORAGE

6.5 cu. ft. of storage space.

CARTS KEEP SHOP VALUABLES SECURE Akro-Mils has expanded its line of louvered carts and mobile workstations with a model that includes locking doors.

The carts, available in small (37 x 18 x 36 in.) and large (49 x 24 x 37.5 in.) offer a variety of AkroDrawer configurations, and three metal colours.

They’re built with a welded steel frame, tubular steel push handle, steel-reinforced butcher block work surface and locking doors that protect 6.5 cu.-ft. of storage space to secure valuables.

The carts are used with both 12- and 18-in. AkroDrawer lengths, which come in nine sizes and five colours.

Akro-Mils is a manufacturer of storage equipment based in Akron, Ohio. www.akro-mils.com

NETWORKING

This function also works in conjunction with Moxa’s MX-AOPC UA cloud server to DATA ACQUISITION minimize network bandwidth IN INDUSTRY 4.0 and latency. WPA2/802.11i secuMoxa’s ioLogik 2542-WL1 and rity protects data with advanced 2512-WL1 data acquisition encryption and authentication. modules bring manufacturing Both models, which networking applications into the withstand temperatures Industry 4.0 world with greater between -30 to 70 degrees versatility for the Industrial InterC, have a 4-port unmannet of Things (IIoT). aged ethernet switch and Both models two serial ports, which are equipped with support data polling from 802.11a/b/g Wi-Fi devices using the Modconnectivity capabus RTU protocol. Users bilities to serve a convert data into Modbus growing number of TCP or AOPC tag format devices and M2M before sending it out over applications that the ethernet network. The require wireless units also support comcommunication. The munication with multiple 2542-WL1 supports remote I/O devices under a analogue I/O connecsingle IP address. tions over Wi-Fi, while The slave ethernet port the 2512-WL1 supports 802.11a/b/g Wi-Fi links up to eight daidigital I/O connections connectivity. sy-chained expansion modover Wi-Fi. ules and converts more than 100 There’s automatic tag generachannels to one IP address. tion and reporting for connected Moxa is a manufacturer of sensors and devices to enable industrial networking equipment operators to monitor a large based in Brea, Calif. number of field devices with www.moxa.com better efficiency.

TEST AND MEASUREMENT UNCOVER UNDIAGNOSED LOOP PROBLEMS Saelig Co. Inc.’s PIE 850 Multifunction Calibrator instrument combines eight single function calibrators, legacy 10 to 50 mA capabilities, and advanced troubleshooting tools to diagnose common loop control problems that are hard to find, including current, voltage and resistance.

The handheld device is compatible with all common instruments, smart transmitters and PLCs with 14 types Accuracy of thermocouple and nine types of RTD temperature of +/ 0.02%. sensors.

The all-in-one instrument includes milliamp current, voltage, thermocouple, an RTD resistance, frequency, pH simulator, continuity checker and a calibrator used with accessory pressure modules.

Advanced troubleshooting tools uncover undiagnosed loop problems that create dangerous operating conditions or poor quality products.

A backlit display makes the unit easy to use in dark environments, and an internal power supply drives the loop while finding ground faults and leakage current caused by corrosion or condensation in conduits and junction boxes. A continuity beeper locates problems in loop wiring without an additional multimeter.

An intuitive EZ-Dial double click menu makes set up easy with accuracy of +/- 0.02%.

Saelig is a supplier of test and measurement equipment based in Rochester, NY. www.saelig.com

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PRODUCTS AND EQUIPMENT PUMPS PUMPS ENHANCE ENERGY SAVINGS Looking for a way to boost energy savings from industrial HVAC equipment?

Armstrong Fluid Technology Generation Three envelope pumps come in 33 advanced energy savings models in sizes from one to 75 hp.

The pumps, which exceed the

230, 460 or 575 V options.

ASHRAE 90.1 energy standard, are equipped with TEFC motors as standard to 25 hp and come in 230, 460 or 575 V options.

They’re built around four core

competencies including heat transfer, fluid flow, variable speed and demand based control.

The envelope technology optimizes building performance by modelling equipment and system behaviour, monitoring authentic system conditions and adjusting equipment operation to match system demand.

Armstrong is a pump and fluid flow equipment manufacturer based in Toronto, Ont. www.armstrongfluidtechnology.com

SWITCHES STOP SWITCHES REDUCE MACHINERY DAMAGE

Relax, tomorrow has already been tested.

Say goodbye to hardwiring with HARTING connectors.

Prevent damage to machinery, equipment and control systems with EAO Corp.’s Series 45 emergency stop switches, equipped with a forced opening contact.

The switches, which meet EN IEC 60947-5-5 specifications, are fitted with 22.5-mm mounting actuators that illuminate and are impact, vibration and shock resistant.

They meet the IP69K requirements and have a long service life of up to 300,000 switching styles. Once actuated, re-setting is performed by either a twist, key, or new pull-to-release action.

Options in actuator dimensions are available in 33.8-, 40- and 60mm diameters along with plastic, metal, and a combination of metal and plastic variants.

IP69K-rated.

EAO is a manufacturer of switches and HMI interfaces based in Switzerland. www.eao.com

ROBOTICS ROBOT IS FAST, CUTS CYCLE TIMES ABB Robotics’ IRB 8700 industrial roboto handles heavy payloads up to 800 kg with a reach of 3.5 m to boost uptime and reliability in industrial applications.

The robot, which ABB says is 25% faster than competing models, has only one motor and one gear per robot axis rather than more typical dual motors and/or gears.

There are no gas springs, only a reliable counterweight and mechanOne gear per ical springs for robot axis. counter balancing to deliver shorter cycle times and improve accuracy.

ABB is a robotics manufacturer based in Zurich, Switzerland. www.abb.com

EXCHANGERS REDUCE FILM BUILD UP

Reduce the number of wiring errors, save time and headache.

HARTING, first established in 1945, delivers unrivaled reliability, efficiency, innovation and performance in connectors.

With HARTING you have a partner who ensures you dependable connections that stand the test of time.

HARTING.ca

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Kenics heat exchangers from Chemineer streamline static mixer elements to boost performance.

The mixer elements in each tube reduce film build up on the internal walls that would occur in straight, empty tube models. Process fluid is continuously pushed from the centre of each tube to the wall and back to eliminate thermal gradients. This boosts the inside film coefficient.

The units provide a more uniform, consistent transfer process, up to seven times more than empty tubes, and mixer elements create a self cleaning, wiping action.

Surface renewal at the tube wall reduces thermal degradation and plug flow characteristics produce uniform heat history.

Chemineer is a manufacturer of fluid dispensing equipment based in Dayton, Consistent transfer Ohio. process. www.chemineer.com

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PLANTWARE

Industrial Literature Reviews

FILTER HARMFUL HARMONICS

POWERFUL STATIC ELIMINATORS

ECOsine 60 Hz active and passive harmonic filters from Schaffner EMC extend the service life of downstream data centre components by removing harmful Up to five units in parallel. harmonics and increasing the reliability of supplied power.

Passive compact plug-and-play filters are easily installed and commissioned for use with non-linear loads such as chillers, VFDs, UPS, standby generators, flywheel UPS, equipment with front-end 6-pulse rectifiers, fans, pumps, HVAC equipment, and DC fast chargers.

They operate at 99% efficiency, installed at the typical three-phase 480 VAC (+/- 10%), at 60 Hz (+/- 1 Hz), to meet IEEE-519 (2014).

Filters are available in two model types (FN3412) <5% THDi and (FN3418) 7-10% THDi. Standard products are panel-mounted (to 250 hp) and open type (to 500 hp).

Digital technology monitors and dynamically corrects harmonics up to the 50th order in less than 300 µs eliminating disturbances before they cause problems. Active filters compensate for individual disturbance patterns in a targeted manner and automatically adapts to changing network loads.

Open type or cabinet options come in NEMA 1, NEMA 3R and other protection ratings.

Schaffner EMC, based in Edison, NJ, makes electro-magnetic compatibility, power quality and engineered transformer products. www.schaffnerusa.com

EXAIR’s Super Ion Air Knife removes static electricity from webs, sheet stock and plastic surfaces where dust, tearing, jamming or hazardous shocks are a problem. Its balanced laminar airflow of the Super Ion Air Knife effectively eliminates static up to 20 feet. Other styles include Ion Air Cannon, Ion Air Gun, Ion Air Jet, Ionizing Bars and Ionizing Point. Applications include web cleaning, pre-paint blowoff, bag opening and neutralizing plastic parts. www.exair.com/18/176.htm EXAIR Corporation

AUTOMATED SYSTEMS FOR CONVEYING This brochure offers a detailed overview of the VAC-U-MAX range of pneumatic conveying components and automated systems for conveying, weighing and batching of powders and bulk materials in food, pharmaceutical, chemical and petrochemical processes. www.vac-u-max.com/ landingPneumatic.cfm

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DUST COLLECTORS FULL LINE LITERATURE GUIDE This impressive guide outlines dozens of N.R. Murphy dust collectors, installations, capacities, styles and models. A must for any reference library. N.R. Murphy Limited has been in business for 65 years and has thousands of satisfied customers.

“Dust Collectors are all we do, so get it done right the first time. Just Ask the Experts.” www.nrmurphy.com NR Murphy

HIGH PRECISION TIMING BELTS WITH BACK COVERS BRECOflex offers high precision polyurethane timing belts with a wide variety of backings.

A heated chemical bonding process assures a strong seal. All backings provide excellent wear resistance and resilience. They come with a full range of accessories including pulleys, clamps, tensioners and slider beds. Visit www.brecoflex. com for your FREE copy, samples and technical support or call (732) 460-9500.

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MEASURE SURFACES IN 3D Mitutoyo’s MCubeMap 3D surface analysis software for form measurement provides clear imaging of analyzed data and creates graphic reports.

It conforms with the most recent ISO 25178-2 3D surface texture specifications for parameter analysis such as height, functional, spatial, hybrid and volume.

The software is compatible with CNC Surface Roughness Measuring System and CNC Surface Roughness/Contour Measuring System models SV-3000CNC, SV-C4500CNC and SV-M3000CNC; CNC Surface Texture Measuring Instruments models CS-5000 and CS-H5000CNC ; and Hyper QV WLI Non-contact 3D Measuring System.

Mitutoyo Corp., with offices in Mississauga, Ont., supplies measurement and inspection solutions. www.mitutoyo.ca

www.plant.ca

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EVENTS CCOHS Forum 2016 CCOHS Feb. 29 -March 1, Vancouver A two-day national event presented by the Canadian Centre for Occupational Health and Safety covering emerging health and safety issues. Visit www.ccohs.ca.

FABTECH Canada SME March 22-24, Toronto For businesses that specialize in fabricating, metal forming, welding, and/or finishing. Visit http:// fabtechcanada.com.

Reliability 2.0 ReliabilityWeb April 11-15, Las Vegas An educational and networking conference and exhibition for maintenance reliability and asset management professionals.

Visit www.reliabilityconference. com.

Energy Summit 2016 EMC/NRCAN May 17-18, Niagara Falls, Ont. Canada’s leading energy subject-matter-experts share best practices in industrial energy efficiency. Visit www.emccanada. org.

RAPID SME May 16-19, Orlando, Fla. The conference and exhibition covers 3D printing, scanning, and additive manufacturing.

Visit www.rapid3devent.com.

EASA 2016 Convention and Exhibition EASA June 12-14, Toronto This Electrical Apparatus Service Association (EASA) event covers technical, sales, marketing and management in environment and waste management industries.

Visit www.easa.com/convention.

PLANT 37

16-01-28 1:37 PM

POSTSCRIPT

Several reasons to oppose CPP expansion

BY CHARLES LAMMAM AND NIELS VELDHUIS

N

ews reports following the meeting of Canada’s finance ministers suggest that the brakes will be put on the federal government’s plan to expand the Canada Pension Plan (CPP). As Saskatchewan finance Minister Kevin Doherty noted, “the last thing we need to do right now is impose an additional payroll tax on our business community.”

But this is only one reason to oppose CPP expansion. There are several others.

1. An expansion of the CPP is a solution looking for a problem. In 2009, the federal and provincial/territorial finance ministers created a research working group to explore whether Canadians were adequately prepared for retirement.

The group’s summary report found that overall, the Canadian retirement income system is performing well, providing retirees with an adequate standard of living.

Similarly, an examination by Philip Cross, former chief economic analyst for Statistics Canada, concluded that proponents of an expanded CPP “stoke fears of a looming crisis by claiming that Canadians aren’t saving enough for retirement. These claims blatantly ignore the ample resources available to Canadians when they retire.”

2. Expanding the CPP will lead to reduced private savings in RRSPs, TFSAs, etc. Research led by University of Montreal economics professor François Vaillancourt shows that past expansion of the CPP resulted in reduced private savings by households. Indeed, when governments increase mandatory savings (through CPP contributions), Canadian households reduce other forms of voluntary savings such as RRSPs and TFSAs. The end result is not a boost in savings but rather a reallocation from flexible, privately held savings to mandatory government savings.

3. CPP expansion is a bad deal for young Canadians. The narrative that CPP provides strong returns for all Canadians is false. Unlike a private pension or RRSP account, the returns to the CPPIB are not directly shared with beneficiaries in the form of higher benefits or with contributors through lower contribution rates. Young Canadians receive particularly modest returns. According to the Office of the Chief Actuary, someone born in 1980 could expect a 2.3% annual real rate of return on their CPP contributions. For someone born in 1950, the rate of return is 4.2%.

According to an academic study published in Canadian Public Policy, a key reason the rate of

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return is so much lower for younger generations is that contribution rates have increased without an equivalent increase in benefits. In 1986, the total contribution rate was 3.6%, growing steadily to the current rate of 9.9% in 2003. A report from an interprovincial committee of government ministers noted the current contribution rate would only need to be 6% if a higher rate was not required to correct the under-funding left by the low rates of older cohorts.

4. Expanded CPP will lead to a major tax increase on middle-income Canadians. While no specific proposal is currently being publicly debated, expanding CPP will necessitate higher payroll taxes today to fund increased payouts in the future.

The existing rules for CPP contributions already require $4,960 annually in employer and employee contributions for a single working Canadian making $53,600. An expanded CPP could produce a marked increase in the average Canadian family’s total tax bill, which already accounts for 42.1% of income, leaving less money available for families to allocate as they wish.

An expanded CPP could produce a marked “ increase in the average Canadian family’s total tax bill… ” 5. CPP is not an especially low cost way to invest. Advocates of CPP expansion tout its supposed low costs. But a recent study found that the operating expenses cited by the CPPIB, which manages the CPP’s investments, cover only a select subset of the total costs involved in running the CPP. A fuller accounting of all the costs, including external management fees and the transaction costs of executing its investment strategy, paints a different picture. The total costs are approximately four times higher than the narrowly defined operating expenses ratio touted by the CPPIB. In fact, the total costs of the CPP now exceed many low-cost mutual funds and ETFs offered in the financial markets for RRSPs and TFSAs. When you consider these factors, expanding the CPP would be a poor deal all around.

Charles Lammam is director of fiscal studies and Niels Veldhuis is president at the Fraser Institute, a public policy think tank with offices across Canada. Visit https://www.fraserinstitute.org. © 2016 Distributed by Troy Media.

Comments? E-mail jterrett@plant.ca.

January/February 2016

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