PLANT March 2013

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Volume 72, No. 02 March 2013

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3M’s POWER PLAY

Tape plant cuts energy use 30% with ISO 50001

HIGHLIGHTS Workplace noise: Lower the volume Get proactive maintenance right Heavy duty flood light plays it cool Going global? Check out the tax implications Maximize the value of your inventory

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It pays to be green

C

anada is not perceived to be a great example of environmental stewardship. Critics will note that we bailed on the Kyoto Protocol, our national greenhouse gas reduction targets are soft, we pimp our “dirty oil” from the “tar sands” and want to build pipelines that would ship it south, threatening spills and environmental catastrophe.

When sustainability or anything smacking of “green” comes up in relation to manufacturing, eyes glaze over and the yawning begins. Company executives were asked in successive PLANT Business Outlook surveys about their priorities, and sustainability was way down the list, registering for only 16% of the respondents. The latest survey shows about half of the companies engaged in reducing their carbon footprints and of those, 32% have a formal or informal (30%) plan.

But some interesting research from the US might awaken more companies to their inner greenness. A survey of 2,600 executives and managers from around the world suggests embracing sustainability actually pays.

The Innovation Bottom Line by the MIT Sloan Management Review and The Boston Consulting Group shows companies reporting a profit from sustainability efforts rose 23% last year to 37% of the total. And nearly half of the companies changed their business models as a result of sustainability opportunities, a 20% jump over the previous year.

How lucrative is sustainability?

The more it’s worked into the business model, the higher the return. Half of the companies that changed three or four elements profited from their activities, compared with 37% who changed one element. The study shows profits climbed from 50% to 60% when innovations to target segments and value-chain processes were among the three or four changes.

The report identifies five practices that appear to lead to the money: • Be prepared to change business models.

• Lead from the top and integrate the effort.

• Measure and track sustainability goals and performance.

• Understand how your customers think about sustainability, and determine which sustainable products or services they are willing to pay for.

• Collaborate with individuals, customers, businesses and groups.

Although profits are enticing, there are other compelling reasons to be more alert to the importance of sustainability.

Markets outside Canada such as those within the EU, the US (where President Barack Obama is focusing on the need for greater environmental responsibility) and emerging markets are placing greater emphasis on sustainability. In fact, companies in emerging markets are well ahead of North American companies, which have the lowest rate of sustainability driven innovation and the fewest innovators.

Consumers around the world are also becoming more aware of products’ green characteristics and many are willing to pay more for them. There is even growing pressure from within companies to raise the environmental profile. The report notes that for some companies, it will be key to attracting talent.

A report by KPMG and Food & Consumer Products of Canada shows food, beverage and consumer products manufacturers are taking steps to curb water use, improve energy efficiency, reduce greenhouse gases and initiate sustainable packaging projects.

The results show 88% of the companies have an environmental strategy; almost all track and monitor energy, water use, and waste; more than 90% have energy and water reduction strategies; and 88% are working to reduce waste.

Other manufacturers are well advised to take more of an interest in how sustainability would give them a competitive advantage.

Visit www.bcg.com for a copy of The Innovation Bottom Line.

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

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

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

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

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

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

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

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

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

Vol. 72, No. 02, March 2013 Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca

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

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

10

COVER IMAGE: THINKSTOCK

Editorial

13

14

Features

>> SUSTAINABILITY

10 MANAGEMENT SYSTEMS 3M cuts energy use at its Brockville, Ont. plant by 30% with ISO 50001.

11 GREEN MANUFACTURING Cut paper use to be greener and save money.

>> MANAGEMENT

12 SUPPLY CHAIN What you need to know about third-party logistics suppliers.

TAX PLANNING Be aware of taxes, treaties and trade agreements.

13 PROFILE Karin Lindner campaigns for sophistication in Canadian plants.

COMPENSATION The energy industry sees the highest wage gains.

>> INNOVATION

14 AUTOMOTIVE R&D A radar sensor that's smaller and less costly to produce.

ENGAGEMENT Workers need structure and procedures to innovate.

>> OPERATIONS

15 HEALTH & SAFETY Excess noise is a hazard to hearing and overall heath.

TRAINING TIPS Invest in your maintenance staff.

16 MAINTENANCE Build cost-effective maintenance into equipment, machinery.

17 STRATEGY Reduce variations to get more value out of your inventory.

18 THINK LEAN A TPM station keeps a plant running the way it should.

>> TRENDS

20 CONFERENCE REPORT Develop relationships to build business opportunities in the oil sands.

GLOBAL BUSINESS Aggressive Asian companies are pursuing rapid growth and they are after your customers.

EMERGING MARKETS Manufacturers need to be more sophisticated about trade relationships.

>> TECHNOLOGY

21 LIGHTING Portable LED floodlight keeps things cool.

SUPPLYLINES Supplier news 22 PRODUCT FOCUS Safety 24 PRODUCTS AND EQUIPMENT What’s new in industrial products and machinery.

29 PLANTWARE Hardware and software for managing plant operations.

Departments 4 Industry View 5 Feedback 6 Events

8 Labour Relations 9 PLANT Pulse 30 Postscript

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

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

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

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Printed in Canada ISSN: 1929-6606 (Print), 1929-6614 (Online)

PLANT 3

13-02-28 7:53 AM

Departments

>> Industry View

>> Bulletins Fluor Corp., a global engineering and construction firm based in Irving, Tex., will provide preliminary engineering services for a proposed propane dehydrogenation project near Redwater, Alta. for Williams, a Tulsa, Okla. energy company. Financial details were not released.

The facility will use recovered propane at Williams’ fractionation facility and convert it into polymer-grade propylene, a petrochemical feedstock used in plastics manufacturing.

Vishay Precision Group Inc., a producer of sensors and systems, has completed its acquisition of Toronto-based George Kelk Corp. for $50 million. Kelk manufactures electronic measurement equipment for steel and aluminum rolling mills, paper mills and mining applications.

BioteQ Environmental Technologies Inc. has secured a testing contract for its mobile Sulf-IX pilot plant. The test will be carried out at a customer site in the US and will focus on the removal of sulphate from wastewater generated from flue gas treatment. The mobile pilot plant applies BioTeQ’s ion-exchangebased Sulf-IX technology.

Hammond Power Solutions Inc. (HPS) has completed its acquisition of Italian cast resin transformer producer Marnate Trasformatori s.r.l. The company will operate as Marnate Trasformatori s.r.l., a subsidiary of HPS. Hammond manufactures custom electrical engineered magnetics and cast resin transformers.

CVTech Group Inc., which serves the electrical energy sector in Quebec, Ontario and the eastern US, is acquiring Toronto-based B.G. High Voltage Systems Ltd. for $2.7 million.

Electrical services provider B.G. High Voltage installs and maintains substations, transformers, as well as overhead and underground electricity distribution systems.

CO2 Solutions Inc., a developer of enzyme-enabled carbon capture technology has won a contract by the CO2 Capture Project (CCP). The Quebec City company will contribute information about the pre-pilot phase of its Alberta oil sands project. The CCP is a partnership of several major energy companies working together to advance industrialscale CO2 capture and storage technology.

4 PLANT

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CAE military contracts worth $100M

Training devices, maintenance and support for three forces MONTREAL: CAE has landed more than $100 million in military contracts for the defence forces of 15 countries.

The Montreal-based aerospace manufacturer of flight simulation and training technologies said the contracts include one from Elbit Systems to provide M-346 training devices for the Israeli Air Force, contracts from the UK Ministry of Defence to support CAE’s Medium Support Helicopter Aircrew Training Facility (MSHATF), and a contract to provide maintenance and support services for the NATO E-3A training devices.

The Elbit Systems contract involves designing and manufacturing segments of a suite of Alenia Aermacchi M-346 simulators to support the Israeli Air Force future trainer aircraft program.

CAE USA will provide segments of the M-346 full-mission simulators and the operational flight simulators for delivery in the second half of 2014.

The UK Ministry of Defence has extended through 2017 both ground school and simulator aircrew training services at MSHATF for the Royal Air Force (RAF) on the Puma HC2 heli-

CAE USA will provide segments of the M-346 full-mission simulators. PHOTO: CAE

copter. CAE is currently upgrading the Puma dynamic mission simulator to the new Puma HC2 configuration, which is to be ready for training by the summer.

Another CH-47 Chinook dynamic mission simulators will get a major upgrade to ensure concurrency with the RAF CH-47 Mk4 standard. One of the other CH-47 Chinook simulators at MSHATF was ugraded to the Mk4 configuration.

And a three-year contract continues the supply of maintenance and support services for the NATO E-3A training devices located at NATO Airbase Geilenkirchen in Germany.

CAE employs 8,000 people at more than 100 sites and training locations in 30 countries.

Milacron, MoldMasters form plastics giant GEORGETOWN, Ont.: Milacron LLC, manufacturer of plastics processing machinery, is acquiring Mold-Masters Ltd., a Canadian hot-runner manufacturer, for $975 million to form a global entity.

Cincinnati-based Milacron said the transaction will create a world-class company comprised of Milacron’s plastics machinery; mold base technologies, aftermarket, and CIMCOOL metalworking fluids and services, and Mold-Masters’ hot runners.

Mold-Masters, based in Georgetown, Ont., designs and manufactures advanced hotrunner systems, temperature controllers and auxiliary equipment.

It has 900 granted and pending patents.

The company operates manufacturing facilities in North America, South America, Europe, India and Asia, and has sales and service support in 70 countries.

Focus needed on working capital TORONTO: While 80% of Canada’s financial executives remain focused on increasing operational efficiency and reducing costs in 2013, only 53% are looking at ways to improve working capital – the cheapest source of incremental cash flow – according to a Canadian Financial Executives Research Foundation (CFERF) study.

The Working capital optimization report sponsored by Ernst & Young found 48% of companies undertook a working capital improvement program and of those, 69% said they achieved a high success rate.

Businesses remain highly focused on cost reduction (80%), profitability improvement (75%) and system implementations (50%), but the findings suggest

that a balanced approach to managing competing priorities can generate significant returns.

“Anything from renegotiating supplier contracts to reducing manufacturing waste can have an impact on working capital performance,” says Simon Rockcliffe, senior manager, working capital advisory services at Ernst & Young.

Too often, working capital management becomes a reactive, month-end exercise, he said.

The results come from an online survey of Canadian financial executives in November 2012.

Further insights were gathered at executive roundtables in Toronto and Montreal. More than half (56%) of respondents were CFOs, and 17% held the title of vice-president of finance.

GE, CAW ratify Ontario labour contract TORONTO: The Canadian Auto Workers (CAW) union and General Electric Corp. (GE) have ratified a new three-year collective labour agreement that includes wage, benefit and pension improvements for 750 workers at five of the company’s Ontario facilities.

The workers are members of CAW Locals 524, 252 and 2228. Approximately 600 members work at GE’s motor facility in Peterborough, while the remainder work at GE Hitachi Nuclear facilities in Toronto, Peterborough and Arnprior, and at service facilities in Burlington and Stoney Creek.

Wage increases, including cost of living allowance, are 2% in the first year, 2.5% in the second and 3% in the final year.

Workers received a major gain with the extension of supplemental payments to bridge pensions until retiring workers qualify for the delayed Old Age Security announced by the Harper government.

There are also benefits improvements, such as a new vision care plan and dental programs.

We’re seventh amoung 17 countries.

PHOTO: THINKSTOCK

Canada gets a B as a place to live But we’ve failed to close the income gap OTTAWA: Canada is a solid B performer as a place to live, but low rankings on poverty and income inequality are holding it back from A territory, according to the Conference Board of Canada’s Society report card.

The Ottawa-based research organization notes Canada placed seventh among 17 countries, way ahead of Japan (16th) and the US (17th) but behind five Nordic countries (Denmark, Norway, Sweden, Netherlands, Finland) and Austria. It noted Canada has been unable to reverse the rise in income inequality and poverty rates that occurred in the 1990s.

“Rising poverty rates and greater income inequality can mean a weakening in labour force attachment and social cohesion,” said Daniel Muzyka, president and CEO of the Conference Board.

Income inequality jumped

in the 1990s before stabilizing in the early 2000s. Since 1990, the Conference Board said the richest 20% of Canadians has increased its share of total national income, while the poorest and middle-income groups lost share.

However, Canada surpasses most other countries in intergenerational income mobility, earning an A and a fifth place out of 13 countries.

A child and working-age poverty rate of 15.1% is higher than it was in the mid-1990s.

Because Canada had the third highest increase in the workingage poverty rate it’s grade slipped from a C to a D. On the upside, Canada ranks first in citizens’ acceptance of diversity and has top marks in: life satisfaction; elderly poverty rate; income gap between disabled and able-bodied workers; and suicide rate.

March 2013

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ve

Industry View << Departments

>> Feedback

Orbite, Veolia to process red mud

They’ll remediate a bi-product of alumina production

Re: PLANT, Jan./Feb. 2013, Lockouts: A common abuse of power

A REALITY CHECK ON EQUITY As a small business owner, I find myself biting my tongue every time I see Ken Lewenza (Canadian Auto Workers union president) bashing employers for a lack of equity. If it weren’t for the ‘fat cats’ prospering with their investments (as well as risking them) those who seek equity wouldn’t have jobs. And if equity is what we need, employees should be obligated to give back when the company has a bad week, month or year.

Last year, Forbes estimated that the Florida Panthers lost $7 million. Over the last nine seasons total losses were $68 million, an average deficit of $7.5 million per season. Are the players willing to provide some equity for their lack of performance? I think not.

The ‘Lockouts’ article is simply an argument for reaping the benefits in good times and bad. If this were the case, there wouldn’t be any successful corporations.

Fortunately we are not a big company, and we’re not unionized. Our employees are thankful they have a job. At the end of the day everybody is still a winner.

We should all learn to play fair, in the working world, and be satisfied instead of greedy.

Henry Kox Trident Technologies Inc. London, Ont.

STRIKES ALSO AN ABUSE OF POWER If lockouts are “a common abuse of power” then I would have to assume strikes are a “more common abuse of power.”

The use of the power that one has within the law cannot be called an abuse.

As for the NHL players’ union, maybe they should invest in the struggling teams to keep salaries up and share in the wealth they say is being created by all the owners.

Helmut Kroeker Pulse Fitness Systems Winnipeg

MONTREAL: Orbite Aluminae Inc. and Veolia Environmental Services have signed an exclusive worldwide collaborative agreement for the treatment and recycling of red mud generated by industrial alumina production using the Bayer process.

The terms of the partnership between Montreal-based Orbite, a developer of green alumina extraction technology, and Paris-based Veolia, a global waste management specialist, include the construction of the first plant to treat red mud using Orbite’s patented process.

The companies intend to treat and recycle the difficult to process red mud, a caustic waste that is often stored in situ and stockpiled around the world.

In the Bayer process, bauxite is washed with a hot solution of sodium hydroxide at 175 degrees C,

MONTREAL: EDF EN Canada Inc. has received regulatory approval from the Quebec government to build and operate the 350-megawatt Riviere-du-Moulin wind project.

The company has also placed an order with turbine supplier Repower Systems SE for the project. LM Wind Power will supply the blades from its Gaspé plant, and towers will be produced at Marmen’s Matane plant. SEG Woodward will assemble electrical converters in New Richmond.

The two-phase $800-million Rivière-du-Moulin project is expected to create 300 construction jobs, and 20 permanent operations and maintenance jobs. It will be the largest wind energy facility in Canada with a single power purchase agreement once it’s commissioned.

Construction on the first phase at 150 megawatts is to begin this year. A second phase at 200 megawatts is scheduled for commission in December 2015.

EDF EN Canada, an EDF Energies Nouvelles company, is a renewable energy developer headquartered in Montreal.

which converts the aluminium oxide in the ore to sodium aluminate. The other components do not dissolve.

The solid impurities, or red mud, are filtered off. The remaining alkaline solution is cooled, and aluminium hydroxide precipitates as a white, fluffy solid. When heated, it decomposes to aluminium oxide.

Orbite describes its patented process as crushing, then acid leaching aluminous claystone. By using various temperatures and pH levels, the process selectively isolates the aluminum component and removes iron and other impurities without producing red mud.

The process also has the potential to extract high-value elements and rare earths.

The company is currently commissioning a high-purity alumina production plant in Cap-Chat, Que.

>> Careers Pipe inspection equipment manufacturer Envirosight in Randolph, NJ has hired Christopher Helliwell as western regional sales manager. He will oversee a territory stretching from California to Vancouver and east to Idaho, Colorado and Texas. Previously, he was a regional and account manager with Orenco Systems Inc., a wastewater treatment company from Sutherlin, Ore. Christopher Helliwell

www.plantmagazine.ca/rsc/ 102

Rely on Reelcraft Made in USA

Bill Searle joins Canada Rubber Group Inc. in Bowmanville Ont., a supplier of die cut gaskets and moulded rubber products, as the territory manager for southwestern Ontario. He’ll specialize in elastomeric products for the automotive industry. He was previously with Garlock of Canada Ltd. Nemaska Lithium Inc. has hired Jean Francois Magnan as its technical manager. The lithium exploration and development company based in Quebec City is transitioning to lithium hydroxide/carbonate production. Magnan is a professional engineer with more than 20 years of experience in the metallurgical industry and the author/inventor of several patents in the lithium rechargeable batteries field.

BlackBerry (formerly RIM), the Waterloo, Ont.-based wireless developer and manufacturer, has appointed Richard Lynch, retired executive vice-president of Verizon Communications Inc., and Bert Nordberg, former CEO of Sony Ericsson Mobile Communications, to its board of directors.

Sellick Equipment Ltd., a Harrow, Ont.-based manufacturer of rough terrain and truck mounted forklifts, has appointed Dave Bristow eastern region sales manager. He will take over for Colin Sellick who has been appointed to the newly created factory position of process systems manager. Dan Denney has been appointed product specialist, TMFL.

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

Jerome Le Conte, president of Veolia Environmental Services and Richard Boudreault, president and CEO of Orbite Aluminae.

PHOTO: ORBITE

EDF gets go-ahead for $800M Quebec wind project

www.reelcraft.com | 800-444-3134 www.plantmagazine.ca/rsc/ 103

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PLANT 5

13-02-28 8:03 AM

Departments

>> Industry View

Motor software cuts energy use by up to 40% ARMONK, NY: AC Kinetics Inc. has developed a green technology that it says will reduce the electricity consumption of motors by 10% to 40%.

The Armonk, NY company, which develops control technologies for electromechanical devices, says its software, supported by real-time adaptive algorithms, runs on standard drive hardware for motorized equipment used in the consumer, industrial and transportation markets. It controls the torque at its most efficient level.

AC Kinetics’ motor control is compatible with existing AC induction motor drive hardware and is now available for licensing.

Automakers partner on hydrogen Will help define global specs and component YOKOHAMA, Japan: Daimler AG, Ford Motor Co. and Nissan Motor Co. Ltd. have signed a three-way agreement to accelerate the commercialization of fuel cell electric vehicle (FCEV) technology by developing a common hydrogen fuel cell.

The companies expect the collaboration across three continents and three companies will help define global specifications and component standards, plus reduce their investment costs.

Each company will invest equally towards the project. Their strategy is to focus on a common design, leverage volume and capitalize on efficiencies through economies of scale to come up with what they describe as the world’s first affordable, massmarket FCEVs. The battery would use hydrogen and oxygen to generate power but emit only water while in operation and could be available as early as 2017.

(L-R) Raj Nair, group vice-president of global product development, Ford; Thomas Weber, member of the board of management of Daimler AG; and Mitsuhiko Yamashita, member of the board of directors and executive vice-president of Nissan, supervising research and development.

The automakers intend to develop a common fuel cell stack and system that each company can use in separately branded vehicles that will generate no CO2 emissions. during driving.

>> Events Reliable Plant Conference and Exhibition 2013 Noria Corp.

April 16-18, Columbus, Ohio An annual conference and exhibition for machinery lubrication, oil analysis and reliability professionals presented by Noria Corp. Visit www.conference.reliableplant.com/Next.

Plant Visit: Decor Cabinet Company Innovation Insights/CME April 30, Morden, Man. Learn about the theory of constraints and the manufacturing of semi-custom cabinets in a small batch environment.

Presented by Innovations Insights and Canadian Manufacturers & Exporters (CME).

Visit www.tvp-ii.org/en/events.

PTDA Canadian Conference 2013 PTDA June 6-8, Toronto The Canadian Conference, hosted by the Power Transmission Distributors Association (PTDA), provides knowledge sessions about economic trends and markets. Visit www.ptda.org/canadianconference.

NDT in Canada 2013 CINDE/CANSMART/IZFP Oct. 7-10, Calgary The NDT in Canada 2013 conference is presented by the Canadian Institute for NDE (CINDE), The Cansmart Group (CANSMART), and the Fraunhofer Institute for Nondestructive Testing (IZFP). The latest developments in NDT, smart materials and structural health monitoring will be discussed with a special emphasis on topics relating to the energy industry. Visit http://events.cinde.ca.

it’s not just business – it’s personal As one of Canada’s original and largest cooperatives, Desjardins Group has been doing this for over a century and has gained international respect as one of the safest financial institutions in the world.

With almost 45,000 employees Canada-wide, we have the strength to get things done. From big to small, we give tailored solutions to our clients whether it’s in group benefits or pensions.

With Desjardins, you have more than a company, you have a partner you can trust and depend on. desjardinslifeinsurance.com

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Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. www.plantmagazine.ca/rsc/ 104

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

For more events visit www.plant.ca, go to Fabrication, and EVENTS.

6 PLANT

March 2013

13-02-28 8:03 AM

The Truth About Compressed Air! If you think compressed air is too expensive and noisy - read this. The facts will surprise you!

Compare these Blowoffs

Facts about Blowers Energy conscious plants might think a blower to be a better choice due to its slightly lower electrical consumption compared to a compressor. In reality, a blower is an expensive capital expenditure that requires frequent downtime and costly maintenance of filters, belts and bearings.

Here are some important facts:

method is best? To decide, we ran a comparison test on the same application using four different blowoff methods: drilled pipe, flat air nozzles, Super Air Knife (each using compressed air as a power source), and a blower supplied air knife (using an electric motor as a power source). Each EXAIR Super Air Knife is the best choice for your blowoff, cooling or drying application.

Filters must be replaced every one to three months.

Belts must be replaced every three to six months.

overall performance. Since your actual part may have an odd configuration, holes or sharp edges, we took sound level measurements in free air (no impinging surface).

Typical bearing replacement is at least once a year at a cost near $1000.

Drilled Pipe

Blower Air Knife

and easy to make. For this test, we used (2) drilled pipes, each with (25)

noisy option. As noted below, the purchase price is high. Operating cost was considerably lower than the drilled pipe and flat air nozzle, but was comparable to EXAIR’s Super

As shown in the test results below, the cost of the drilled pipe is overshadowed easily blocked and the noise level is excessive - both of which violate OSHA requirements. Velocity across the entire length was very inconsistent with spikes of air and numerous dead spots.

• Blower bearings wear out quickly due to the high speeds (17-20,000 RPM) required to generate effective airflows.

• Poorly designed seals that allow dirt and moisture infiltration and environments above 125°F decrease the one year bearing life.

significant mounting space compared to the others. Noise level was high

• Many bearings can not be replaced in the field, resulting in downtime to send the assembly back to the manufacturer.

cycling it on and off to conserve energy like the other blowoffs. Costly bearing and filter maintenance along with downtime were also negative factors.

Flat Air Nozzles

EXAIR Super Air Knife

As shown below, this inexpensive air nozzle was the worst performer. It is available in plastic, aluminum and stainless steel from several manufacturers.

job of removing the moisture on one pass due to the uniformity of the laminar

Blowers take up a lot of space and often produce sound levels that exceed OSHA noise level exposure requirements. Air volume and velocity are often difficult to control since mechanical adjustments are required.

low. For this application, energy use was slightly higher than the blower but can be less than the blower if cycling on and off is possible. Safe operation is not an issue since the Super Air Knife can not be deadended. Maintenance costs are low since there are no moving parts to wear out.

entrainment, but suffers from many of the same problems as the drilled pipe. Operating cost and noise level are both high. Some manufacturers offer flat air nozzles where the holes can be blocked - an OSHA violation. Velocity was inconsistent with spikes of air.

To discuss an application, contact:

EXAIR Corporation 11510 Goldcoast Drive Cincinnati, Ohio 45249-1621 (800) 903-9247 Fax: (513) 671-3363 email: techelp@exair.com www.exair.com/18/423.htm

The Super Air Knife is the low cost way to blowoff, dry, clean and cool.

See the Super Air Knife in action.

www.exair.com/18/akvideo.htm

Blowoff Comparison Comp. Air

Sound Level dBA

Annual Purchase Approx. Annual First Year Electrical Price Maintenance Cost Cost Cost*

Type of blowoff

PSIG

BAR

SCFM

SLPM

Horsepower Required

Drilled Pipes

60

4.1

174

4,924

35

91

$50

$4,508

$920

$5,478

Flat Air Nozzles

60

4.1

257

7,273

51

102

$208

$6,569

$1,450

$8,227

Blower Air Knife

3

0.2

N/A

N/A

10

90

$5,500

$1,288

$1,500

$8,288

Super Air Knife

60

4.1

55

1,557

11

69

$534

$1,417

$300

$2,251

Prices shown are U.S. Dollars.

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13-02-28 8:03 AM

Departments

>> Labour

Aerospace needs government support

By Ken Lewenza

M

any of the world’s economic powerhouses have governments that play a crucial role in the development of key industries. Canada’s governments need to do the same by being more engaged in the stimulation, promotion and building of key sectors, such as aerospace.

The Canadian Auto Workers (CAW) union has warned that the country’s aerospace industry could stall without renewed federal government leadership.

aerospace industry’s global success has been helped by “theThepro-active industrial policy from previous governments… ” Its global success has been helped by the pro-active industrial policy from previous governments, but the future is much less certain. More than 13,000 aerospace manufacturing jobs were lost during the last decade. That’s one out of every four Canadian aerospace jobs.

Equally troubling is the deteriorating performance of international trade. In 2003 Canada had a $9 billion aerospace trade surplus. By 2011, it was down 60%.

Meanwhile, other leading aerospace jurisdictions such as the EU, Japan and Brazil strengthen investments in the industry as governments in emerging markets such as Mexico and China work to capture a greater share of the global market.

With global commercial aerospace expected to grow strongly in the decades ahead, Canada needs to take a long-term look at the development of its industry to ensure we stay in the game. Last year,

the CAW provided a series of recommendations to the federal government’s Aerospace Review highlighting the need for stronger government involvement.

They include: • Maximizing Canadian content, spin-off benefits and production offsets arising from procurement of military and civilian aircraft. The CAW said F-35 jet fighter procurement was misguided and it called for any future contract to guarantee dollar-for-dollar investment in Canada. The CAW also wants the replacement contract for aging search and rescue aircraft to be awarded to a Canadian company.

• Using government support for R&D and investment to ensure key product development programs as well as production are undertaken in Canada.

• Addressing Canada’s trade imbalance by demanding reciprocity in foreign trade: Europe, Asia and Brazil must accept imports of our aerospace products in return for purchases of their products.

• Enhancing skills development in the aerospace sector and establishing a sustained aerospace development council.

Reinvigorating shipbuilding Government support in other strategic sectors of the Canadian economy has already helped to maintain and create jobs.

Federal support for Canadian shipbuilding is key to rebuilding and re-invigorating several shipyards and their surrounding communities. In October 2011, the federal government announced $35 billion in naval, coast guard and icebreaker contracts under the National Shipbuilding Procurement Strategy. Included in the program is $25 billion in federal shipbuilding contracts for the Irving Shipyard in Halifax, where CAW/Marine Workers Federation Local 1 represents workers.

In the automotive industry the federal and Ontario governments invested $10.6 billion in GM and $3.8 billion in Chrysler to support them following the 2008 global financial crisis. These companies have gone on to report strong financial results in North America. Without this support, many Canadian jobs would have been lost in auto assembly, auto parts and across the supplier chain.

Canada’s aerospace industry faces many hurdles: it needs the support of our elected officials.

The Aerospace Review has submitted its recommendations to government. The time has come to act.

To read Pulling Out of a Stall: Plotting a Renewed Course for Canada’s Aerospace Industry, visit www.caw.ca/ en/11312.htm.

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

Comments? E-mail jterrett@plant.ca.

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March 2013

13-02-28 7:05 AM

Economy << Departments INVENTORIES ARE DOWN $ billions 70 68 66 SOURCE: STATISTICS CANADA

64 62 60 58 56

DJ 2007

J

J

2008

J

2009

J

2010

D

2011

2012

Mid-sized firms in decline: BDC

Declines in transportation equipment, petroleum and coal products helped lop 1% off inventories in December to $64.5 billion. Lower inventory levels in aerospace, motor vehicle assembly, and parts were responsible for most of the decrease.

C

FEWER EI BENEFICIARIES

number 850,000 800,000 750,000 700,000

SOURCE: STATISTICS CANADA

650,000 600,000 550,000 500,000 450,000 400,000

DJ 2007

J 2008

J 2009

J 2010

J 2011

D 2012

The number of people receiving regular employment insurance benefits in December fell for the third time in four months, down 1.6% (8,300) to 517,000. Nationally, renewal claims totalled 226,700 in December, which were virtually unchanged from the previous month.

EMPLOYMENT DECLINES

thousands 17,600 17,400

SOURCE: STATISTICS CANADA

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

J

J 2008

J 2009

J

J

2010

2011

ECONOMIC DE VELOPMENTS AND TRENDS

anada’s mid-sized companies have declined by 17% – 9,370 to 7,814 – from 2006 to 2010, according to a new study by the Business Development Bank of Canada (BDC).

The study, based on Statistics Canada data and supported by survey results from market research firm Harris/Decima, shows the manufacturing sector as the hardest hit. More than half of 2,807 mid-sized firms (between 100 and 499 employees) vanished between 2001 and 2010.

“This decline should signal a call to action as midsized firms are vital to the Canadian economy,” says Pierre Cléroux, BDC’s vice-president, research, its chief economist and lead author of the study. “They’re few in numbers, yet their contribution to Canada’s economic prosperity cannot be overemphasized. They really do punch above their weight.”

Mid-sized firms represent 1% of the total number of companies, but contribute disproportionately to the Canadian economy, accounting for 16% of Canadian jobs, 12% of GDP and 17% of exports.

Over 80% of mid-sized firms are in the 100 to 249-employee category.

BDC notes a greater portion of mid-sized firms (90%) have head offices in Canada compared to large firms, (77%). Over a third (37%) have head offices in Ontario, followed by 27% in Quebec, 19% in the Prairies, 12% in BC and 6% in the Atlantic region.

“During the last 10 years, medium-sized firms have faced serious challenges from the rapidly appreciating Canadian dollar, financial crisis and recession,” added Cléroux.

The study also found that 14% of mid-sized firms became small firms (below 100 employees) or closed down each year from 2006 to 2010. Only 1.4% grew to become large corporations with 500 or more employees.

Ontario was hit worst, losing 25% of its 3,810 midsized firms between 2006 and 2010.

However, many CEOs are optimistic about their prospects during the economic recovery, with 64% of mid-sized firm leaders saying their annual sales will go up by 4.5% over the next three years.

Firm owners said the main obstacles to becoming large companies are fierce competition, availability of financing and employee acquisition and retention.

Mid-sized firms with boards of directors or advisory boards are most likely to say their sales will go up.

The government-owned BDC provides financing, venture capital and consulting services to Canadian businesses.

AUTO INDUSTRY REVVING FOR 2013

L

ook for solid growth from the Canadian and US automotive industries this year.

BMO Economics is predicting a strong finish in 2013 with a 7% increase to 17.5 million units sold, and with such a notable pick-up in consumer spending, manufacturing sales are expected to accelerate.

The momentum was building last year with Canadian auto sales increasing 5.5% in 2012 over sales in 2012. November sales were up 6.5%, adding to a yearly total of $98.6 billion compared to $92.6 billion in 2011.

US auto sales increased 15% from 2011 with year-end sales at dealerships and auto parts stores reaching US$891 billion in 2012 – an increase of 7.7%.

Investments on both sides of the border include a $250 million commitment from Prime Minister Stephen Harper and a US$600 million investment in a General Motors plant in Kansas City, Ka.

J 2012 2013

Delivering Quality Products for your HVAC Needs

After two months of gains, employment decreased in January by 22,000. A decline in the number of people looking for work pushed the unemployment rate down 0.1% to 7%. Compared with 12 months earlier, employment increased by 1.6% or 286,000, all in full-time work.

WHOLESALE SALES FALL

$ billions 52 50 48 46

SOURCE: STATISTICS CANADA

44 42 40 38 36

Chained (2002) dollars Current dollars

34 32

DJ 2007

J 2008

J 2009

J 2010

J 2011

D 2012

Wholesale sales fell 0.9% in December to $49 billion after rising 0.7% in November. The decrease was driven by lower sales in computer and communications equipment and supplies. The same industry was responsible for November’s increase. Volumes were down 0.9%.

www.plant.ca

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13-02-27 3:55 PM

Operations

>> Management Systems

Power

PLAY

3M rAiSeS tHe eNerGy eFFiCieNCy ANte

its Brockville tape plant uses iSO 50001 standard to cut energy consumption by 30%.

By NOelle StAPiNSKy

A

s manufacturers grapple with soaring energy costs and supplier demand to make supply chains tighter and more environmentally responsible, reducing power consumption is not only a way to improve the bottom line, it’s also a reputation booster.

Energy use is often seen as the cost to produce and supply a product with the focus on heating, cooling and lighting as opportunities to reduce costs.

That’s a good starting point, but it’s going to take a lot more than shutting off some lights and closing the dock doors to keep up with today’s energy efficiency demands.

The latest ISO international standard brings energy management to a new level.

ISO 50001 provides manufacturers with a framework that monitors real-time energy efficiency results and encourages continuous improvement strategies. The voluntary program has been implemented at a 3M Canada tape manufacturing plant in Brockville, Ont. where the company has reduced energy consumption by 30%. It’s also the world’s first plant to achieve ISO 50001 certification.

Based on a Do-Plan-Check-Act framework, ISO 50001 helps businesses reduce energy related operational costs, boost efficiencies, reduce greenhouse gas emissions and refine energy procurement practices. ISO says the key to compliancy is a company-wide culture around energy related best practices and develop a customized energy management system (EnMS).

While the standard was still being developed, 3M proactively launched two ISO 50001 and Superior Energy Performance (SEP) pilot programs (the other at a chemicals and adhesives facility in Cordova, Ill.) with $155,000 from the Natural Resources Canada Eco Energy Efficiency for Industry program and the US Department of Energy (DOE).

The SEP standard (or MSE 50021), a US program, is a roadmap for continuous improvement in energy efficiency that also accelerates performance and management practices to increase the

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adoption rate of ISO 50001.

Some of the bigger challenges at 3M’s 140,000-square-foot Brockville plant included rising electricity and natural gas costs – the facility’s two main sources of energy – and developing a way to maintain energy performance.

“With any management system, there has to be a commitment from upper management,” says Andrew Hejnar, 3M’s energy manager. “They must understand the benefits of improving energy efficiency, not just from a cost standpoint, but from an environmental one as well.”

The next step is to establish a team of management and energy-familiar employees that also understand the standard, he adds.

For many Canadian companies with management systems such as ISO 9001 (quality) or ISO 14001 (environmental) standards, that knowledge base helps form a team. ISO 50001 is also easily integrated with the other systems because it’s based on the same model.

These include common document management and approval systems, while operating practices and standards incorporate into operating procedures, according to Bob Fraser, chief of engineering support services at Natural Resources Canada.

Filling the gap “Improvement suggestion systems and corrective and preventive action systems can also be shared, and the energy elements of a company’s environmental management system link to the EnMS.” Fraser says Canada recognizes the value of the SEP system, and plans to develop a similar support system for ISO 50001.

3M’s Brockville team included Hejnar, plant engineering leader Earl Taylor, master technologist Tyler Blakely and internal auditor Alan Polk.

Once the team was assembled and everyone understood what was necessary to comply with the standard, it performed a Gap analysis to determine project costs and how ISO 50001 would integrate with other management systems already in place.

“The big difference with this standard is the energy part. You need to have a management system that covers quality, energy and environmental components, but there is also the energy portion that requires calculating energy, and develop-

1

2 ing targets and action plans,” says Hejnar.

The plant’s entire workforce must also be trained, educated and involved.

To engage the facility’s 170 employees, plant manager Rich Muir says management installed posters, bulletin boards and corkboards throughout the facility explaining where energy costs go. A TV in the cafeteria displays the plant’s energy use information and it’s a topic of conversation at team meetings.

“We try to treat the plant as we would our homes. If we leave a room, we turn off the lights and shut down equipment when it’s not being used,” says Muir. “We have the entire workforce focused on energy reduction. We found air compressors that weren’t working at peak efficiency, compressed air leaks in our piping, and chillers that weren’t working efficiently.”

The plant also has a web-based system in place that encourages employees to submit ideas for the energy team to work on. About 75% of the flagged opportunities came from employees on the production floor. 3M has also contracted Enbridge Gas Distribution, Hydro One and Energy Performance Services for third party opinions on further improvements.

Like most plants, the Brockville facility uses compressed air, but discovered that using such a powerful system to create a light breeze in its wrapping process was a big waste of energy.

“It works, but it can be a very inef-

1. 3M Canada manufactures pressure-sensitive tape at its 140,000 sq. ft. plant in Brockville, Ont. 2. Kevin Morrison, 3M process operator, and Earl Taylor, plant engineering leader, check out tape fresh off the line.

3. Rolls of 3M masking tape going through the boxing process, made specially for the automotive, marine and aerospace industries.

4. Earl Taylor with rolls of paper ready to be transformed into 3M specialty masking tape.

ficient process,” says Earl Taylor, 3M’s plant engineering leader. “We had a hot air blower using compressed air to shrink film around the tape. Now we’re using blowers to achieve the same air flow and using far less energy.”

This simple change to the wrapping process dropped the compressed air system’s energy use by almost 90%.

Through an internal audit, the team

March 2013

13-03-01 1:58 PM

>> Green Manufacturing

Go on a paper diet

Save some trees and thousands of dollars by cutting wasted pages

3

works,’” says Hejnar. “Now they report how efficiently the system is running.”

All of the plant’s gas and electrical use is metered and now reports into its EnMS, displaying real-time results and historical data for comparison.

“You can never have enough metering.

It can be expensive and difficult, but it’s not as expensive as not knowing where your energy is going,” says Taylor.

He describes ISO 50001 as a good way to formalize good practices and ongoing processes for improving energy.

“We didn’t need it to implement energy savings, but we found that without it, energy management is less focused and more vulnerable to personnel changes.”

To hold the system together, the team developed a roles and responsibilities matrix to identify workforce needs to support the system, which is also a part of the standard requirements.

“The plant manager is accountable for the entire system, I’m responsible for energy objectives and timelines, the energy management system coordinator takes care of the reporting system, and all operators and supervisors have defined roles to support the system and make sure it works,” says Hejnar.

Although the Brockville plant has been working on implementing energy efficiency practices for many years, Hejnar says the pilot project took about a year to complete and generate the data to show that the facility is 30% more efficient over the past three years. Such results recently landed the Brockville plant ISO 50001 designation and the SEP platinum certificate, the first Canadian operation to achieve both.

The Cordova, Ill. plant has also received ISO 50001 certification.

Achieving the platinum level SEP will certainly bode well with 3M’s North American customers, such as Walmart and Home Depot. Both demand stringent efficiency processes from their suppliers.

Thanks to the success of the Brockville pilot project, 3M will implement a system to meet ISO 50001 requirements in just six months, and it’s already scoping out two other facilities for the designation.

According to the US Department of Energy, the ISO 50001 standard could influence up to 60% of the world’s energy use, and since energy costs directly affect a manufacturer’s bottom line, early adopters will certainly gain a competitive advantage by decreasing operational costs and gaining favorable attention from customers.

However, as supply chains continue to turn up the heat on environmental responsibility, ISO 50001 might not be voluntary for long.

By Brett Wills

“G

reening” a manufacturing operation usually starts with the big-ticket items such as energy savings, but once the obvious wins have been tallied, how do you keep up the momentum?

Look at the smaller items that were missed or dismissed as being insignificant. Take paper: there are a lot of costs attached, including procurement, printing, filling, storage and disposal.

But a Sustainability Consortium run by Partners in Project Green, a GTA-based Eco Business Zone, came up with 10 tips for a practical paper reduction diet: 1. Establish a baseline. Measure paper use and expenditures. Establish a reduction goal and issue regular progress reports, preferably not on paper.

2. Centralize printing. Remove desktop units and set up stations.

3. Secure printing. Employees swipe a card or enter a personal code to retrieve print jobs.

This eliminates all those forgotten pages left at the printer.

4. Switch to e-Fax. Have documents sent directly to your e-mail system.

5. Conduct a kaizen on reports. Many of them are never read. Identify and eliminate the ones that aren’t worth printing.

6. Go digital. Convert manuals, books, forms and orientation packages to electronic versions.

7. Eliminate pay stubs. Create an electronic version of all that pay info.

8. Assign departmental budgets. Base them on historical use.

9. Whiteboards and chalkboards. They replace paper-based flip charts in meeting rooms.

10. Agendas/handouts/minutes. Distribute them electronically before or after meetings.

Cutting back on your paper waste will save some trees and some money: potentially thousands of dollars for small companies and hundreds of thousands for big ones.

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

Comments? E-mail jterrett@plant.ca.

5

4 also discovered the plant’s natural gas powered ovens used in the drying process would benefit from more circulation and decreased the amount of fresh air it used.

“We did some trials on increasing the internal circulation and found that we could still achieve the same results using less energy. We just had to adjust some dampers and air flow controls,” says Taylor.

The plant was retrofitted with high efficiency T8 florescent lighting and peripheral lighting was converted to LEDs to save energy used by its lighting system.

3M also verified efficiency specifications of its HVAC units and hired an external company to maintain them.

“Before, we’d say ‘just change the filters, clean the units and make sure everything

6

Noelle Stapinsky is a Toronto-based business writer and editor, and former features editor of PLANT. E-mail noellestapinsky@gmail.com.

Comments? E-mail jterrett@plant.ca. www.plantmagazine.ca/rsc/ 108

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13-03-01 1:58 PM

Management

>> Tax Planning

>> Suppy Chain

Third-party logistics

What you need to know

BY MARK BORKOWSKI

M

Mark Borkowski is president of Torontobased Mercantile Mergers & Acquisitions Corp., which specializes in the sale of privately held companies. Visit mercantilemergersacquisitions.com.

Comments? E-mail jterrett@plant.ca.

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WORLD...?

Where in the

PHOTO: THINKSTOCK

ore companies – large and small – are outsourcing all or part of their supply chain functions. Their need to improve productivity and do things “faster, cheaper and better” has created a growing market for third-party logistics services.

Benefits include reduced capital investment in real property, capital equipment and information technology infrastructure; access to specialized “best-in-class” expertise and new technology; better visibility for the customer on supply chain costs; and opportunities for process improvement and better risk management. However, negotiating pricing for a third party outsourcing arrangement can be a challenge.

There are two models. One is a base fee plus unit pricing. It’s charged by the service provider and includes a base fee (usually paid monthly) to cover fixed costs such as facility and capital equipment leases; and a variable fee (also usually paid monthly) to cover costs (such as labour) that flex with changes in product volume moving through the supply chain. An adaptation of this model is per unit pricing with minimum volume guarantees.

Base fees combine price certainty (for both customer and supplier) with the flexibility to adapt to changing market conditions, but there’s a lack of visibility on the supplier’s cost structure and profit margins.

Cost-plus transactions compensate the service provider for costs plus an agreed percentage (sometimes capped) margin and provide full visibility of the supplier’s costs and profits, but there are challenges, such as agreeing on the yearly budget and productivity measures; how to encourage the supplier to reduce costs (such as gain sharing); and how to allocate shared costs (such as the supplier’s IT platform).

Another important financial issue involves termination rights. Since outsourcing may require significant long-term investment by the supplier, there’s a risk early termination will result in substantial financial losses.

Suppliers will demand compensation for unamortized capital costs if the customer wants an early termination right. Understand the nature of these costs before agreeing to compensation.

Outsourcing supply chain functions offers many potential competitive advantages.

Ideally it’s a long-term relationship, so both parties have a vested interest in picking a pricing model that’s mutually beneficial.

PLAN YOUR ENTRY INTO GLOBAL MARKETS Be aware of taxes, treaties and trade agreements when building your business abroad.

BY GLENN FRASER AND TIM BLOOS

A

re you scouting global opportunities? If so, you’re part of a rapidly growing trend as Canada’s manufacturers seek new markets for their products. International business is no longer the purview of large companies.

More small, early-stage manufacturers are now selling into multiple countries.

In 2011 exports increased more than 12% over the previous year while trade to the US declined by more than 13% since 2002, continuing the diversification trend in Canada’s export destinations. After the US, the UK, China and Japan were the top export destinations.

Canada is well positioned to become a specialty manufacturing power. It has a diverse multi-cultural population that knows what products are in demand in many countries – and how to sell into them. Meanwhile, the federal government is paving the way for expanded global trade by initiating new treaties and free trade agreements. FTAs currently in negotiation include: the Andean countries (Bolivia, Colombia, Ecuador, Peru); Caribbean Community; Central America Four (Honduras, Guatemala, El Salvador, Nicaragua); Dominican Republic; EU; India; Japan; Korea; Morocco; Singapore; Trans-Pacific Partnership (Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, Vietnam); and Ukraine. Others are in exploratory discussions. These free trade agreements offer Canadian manufacturers unprecedented opportunities for expanded markets, diversification, resources – and tax planning.

In fact, tax and market planning are equally important when expanding overseas. The federal government is taking

further steps that would allow Canadian companies to earn their overseas profits more tax-effectively, but don’t believe cocktail banter about how you can virtually eliminate taxation by setting up a company in a low-tax offshore locale and running your contracts and profits through it. Now that governments are cooperating on a global basis, taxation is focused less on where a company’s legal entities are located and more on where business activities take place.

Keep more cash Establishing a company offshore does not enable income to be taxed offshore.

Governments and treaties generally impose tax on the basis of where profits are earned. While you may not have a legal entity in a particular country, this doesn’t mean your activities aren’t taxable there. If you have representatives in five countries selling products and entering into contracts in each of those countries, you could become taxable in five different jurisdictions, which is why advance tax planning is essential when expanding your business overseas. It allows you to keep more cash in your business while minimizing taxes payable on a worldwide basis.

Conducting business internationally has implications for income taxes, customs duties, commodity taxes, transfer pricing and sales taxes, which prove to be problematic for many globally expanding entrepreneurs. Why? The threshold is often significantly lower than it would be for income taxes because treaties don’t govern them.

Simply selling into other countries without proper tax planning will lead to notices of assessment from around the world. This can result in hefty penal-

ties, arrears interest on transactions and demands for tax returns. As well, with international rules around transfer pricing becoming standardized, more countries are investing in enforcement, making tax authorities increasingly sophisticated and aggressive.

The good news for ambitious manufacturers is a little advance tax planning will help you avoid such problems. Start by visualizing what you’d like your business model to look like a few years down the road. Do you want to sell into the Ukraine? Establish a joint venture in Abu Dhabi? Set up a manufacturing facility in Singapore?

Establish the most tax-efficient ways to structure your activities and the best ways to conduct day-to-day business (especially selling and signing contracts).

This is what one manufacturer did.

Within only three years of launching his company, and with just $4 million in sales, he is now selling tax-effectively and profitably into 15 countries. Planning ahead allowed this entrepreneur to use treaties and free trade agreements strategically to reduce risk, legitimately manage the allocation of profits between high and low-tax jurisdictions and to facilitate favourable tax treatment for the distribution of profits and redeployment of cash.

Ready to take on the world? Integrate international taxation into your plans and you’ll soon have the best of both worlds: new markets for your products and more cash for your expanding business.

Glenn Fraser is the leader of the GTA region Food & Ag Manufacturing practice of MNP and Tim Bloos, is an international tax advisor with MNP. Contact Fraser at Glenn.Fraser@MNP. ca and Bloos at Tim.Bloos@MNP.ca.

Visit www.MNP.ca.

Comments? E-mail jterrett@plant.ca.

March 2013

13-03-01 1:59 PM

Profile <<

Guess who needs a

makeover?

How to MakE Manufacturing sExiEr Enhancing creativity on the shop floor will heighten manufacturing’s desirability as a career choice.

By Matt PowEll, assistant Editor

“S

Within two weeks, she’d received 450 responses and had a title for her book.

“I learned a lot from those LinkedIn discussions. I chatted with a lot of small manufacturers and asked them what it would take to get manufacturing back,” she says.

Surprisingly, more than 80% of the people she talked to didn’t want their own children to go into manufacturing.

“Manufacturing isn’t interesting to young people because we rarely talk positively about it,” says Lindner. “When I wrote my book, I wanted to outline some issues within the industry, but I also wanted to inspire people to think in a new way about manufacturing and make them truly consider careers for their kids.”

As for the makeover, Lindner thinks the sector has got a lot of work to do.

exy” is not a word used to describe Canadian manufacturing. In terms of hotness, it’s way down the list for young people who are not into what they perceive to be “factory work,” preferring instead to pursue more “cerebral” or professional pursuits through a post secondary degree or diploma.

Manufacturing is gathering some momentum after the 200809 recession, but many companies remain slow to innovate and suffer from lacklustre productivity. Meanwhile, a looming skills Create creativity shortage also threatens to impede their ability to improve.

Canada will continue its struggle to compete at a cost level, Karin Lindner believes manufacturing needs a makeover but manufacturing can improve its fortunes by creating a and she is doing something about it. She heads Richmond Hill, culture that’s dedicated to creativity.

Ont.-based Karico Performance Solutions, a consultancy that’s “I go to plants, and sometimes it feels like the shop dedicated to uncovering human potential in manufacturing, floor is staffed by zombies.” and she has also authored a book that shows manufacturers Leveraging talent on the shop floor alleviates comhow to unlock sophistication within Canadian plants. petitive pressures once an environment is created Written in April 2012, How we can make manufacturwhere people will want to go to work. ing sexy: A mindset of passion and purpose from Some suggestions for achieving a sexier the production floor to the executive suite, is availsector include: able in nine countries, including Canada, the • Provide workers with a proactive enviUS, Switzerland, Germany, Belgium and the ronment that inspires creativity.

Netherlands. Because it’s self-published, • Utilize technology.

Lindner controlled where it was printed, • Provide necessary tools for training and so it’s also “Made in Canada.” education.

The book takes aim at nonbeliev• Encourage departments to work toers who are skeptical about the future gether instead of against each other. of manufacturing, and stokes parental • Encourage greater work-life balance. excitement about getting their children • Place an emphasis on employee wellness. interested in it as a career choice; but Lindner • Make windows and natural light in the also addresses plant culture and how to inspire plant mandatory. confidence that creates ideas on the shop floor.

Companies must create a culture “To me, ‘sexy’ is demonstrating confidence, being where respect between employees at all attractive and attracting attention,” says Lindner. levels comes first, she says.

“None of this is the case with Canadian industry.”

Few of the companies she visits that Originally from Austria, she began her manufacclaim to practice lean can name the turing career at automotive components giant Magna second pillar of TPS: respect for people, she International in Aurora, Ont. says. “Most supervisors and managers shut A one-year permit became a three-year stay, during people down with ideas because it’s a pain to which Lindner awakened a passion for working with think about implementing them.” employees at plant-level. This led to a discovery there It’s less painful to teach employees the was a major communications gap between the shop process of implementing an idea. floor and upper management, and it was severely Lindner notes that the average Amerihampering morale as well as productivity. can worker generates 1.1 ideas a year.

Karin Lindner unlocks “The company was missing a major opportunity.

The Japanese workforce comes up with the sophistication in Brain power on the shop floor was being underused 167 annually. manufacturing. because management and supervisors didn’t know “What’s the difference? It’s not the PHOTO: Karl ScHrOTTer how to tap into that knowledge and bring out the full intelligence of the people in Japan, it’s potential of their employees,” she says. because managers intend to impleBy the end of 2006, she was a casualty of restrucment as many ideas as possible (or turing, yet continued to work in manufacturing and at least part of an idea).” share lessons learned. Friends urged her to get out of the busiSomething else has to change. Employees are still considered ness. Better to focus her expertise on employee engagement in a liability on the balance sheet. the services sector, they suggested.

“We are in the age of the knowledge worker,” she warns.

But Lindner stayed the course. “We can’t make the economy “People have more options.” go around by making coffee and cutting each other’s hair.”

Lindner’s book, How we can make manufacturing sexy...is She turned to social media, and asked a simple discussion available at www.karicosolution.com. question on a LinkedIn forum: how can we make manufacturing sexy?

Comments? E-mail mpowell@plant.ca.

www.plant.ca

13-PLNT.indd 13

>> compensation

Salary increases in the West top the East conference Board salary outlook pegs the national average at 3%

T

he oil and gas sector is pushing up compensation gains in alberta and saskatchewan past the national average, ontario is below and the percentage increase for non-union salaries will exceed what unionized employees received in 2012, says the conference Board of canada. salary gains in alberta and saskatchewan will be about 4% this year, compared to 3% nationally, according to the conference Board’s Mid-year Pulse check. “salaries in oil and gas this year are rising slightly faster than we projected, and labour markets in western canada are tightening. we have heard from natural resources firms that virtually all of them are having trouble finding the skilled workers they need,” said ian cullwick, vicepresident, leadership and human resources research for the ottawa-based research organization. salary projections were revised upwards in saskatchewan (4%) and alberta (3.9%), while projections were revised downward for Quebec (2.7%), ontario (2.5%), and Bc (2.5%).

Here are some highlights: • Average wage increases for unionized employees closed the year at 1.9%, down slightly from the 2.1% projected last fall. wage settlements in 2013 will increase in the private sector (projected 2.3%), but decrease in the public sector from a forecast of 1.8% in the summer to 1.6%.

• The oil and gas sector continues to project the highest average salary increases, at 4.5%, up from 4.2% last fall.

• Most industry salary projections have changed little since last year, but more than half of the companies in the food, beverage and tobacco industries revised salary increases down from 2.9% to 2.3%.

• More than two-thirds of respondents said economic conditions in 2013 will be comparable to those of 2012. a quarter think business conditions are likely to improve, while only 7% believe that conditions will deteriorate in 2013.

• Most organizations (76%) are planning to incentive pay for 2013 based on 2012 performance, while 4% said there will be no payouts. incentive targets for the remaining 21% are not clear. the conference Board conducted its mid-year pulse check survey in december, which gathered replies from 237 organizations, representing a response rate of 59% of the 401 organizations that completed the compensation Planning outlook survey in the summer.

Comments? E-mail jterrett@plant.ca.

PLANT 13

13-02-27 3:57 PM

Innovation

>> Automotive r&d

>> Engagement

Innovation and bureaucracy

Believe it or not, an effective corporate match

By ChriS BArT

I

Sazzadur Chowdhury with the loonie-sized radar sensor AUTO21 researchers are developing.

PHOTO: AUTO21

Compact

radar AUTO21 researchers combine short-, midand long-range coverage using the same hardware.

By SAzzAdUr ChOwdhUry

W

e live in a world of convenience where people are constantly searching for the newest technology. The automotive industry is no different. Companies are investigating systems that essentially relieve drivers of complex decisions while the vehicle is moving, and improving safety and comfort with systems that detect surrounding vehicles and obstacles.

At the centre of these technologies is a compact radar system – one with the ability to monitor several ranges around a vehicle, interpret onboard data and help drivers make more informed decisions. Radar captures the precise measurements of a vehicle’s surroundings while withstanding environmental influences such as extreme temperature, bad lighting or inclement weather conditions. For this reason, analysts proclaim radar as the most promising technology for a number of driving assistance functions.

Europeans have led the way in automotive radar innovations.

Germany’s Infineon technology, a silicon germanium-based sensor system comprised of a single transceiver, is focused on long-range applications and is the current state-of the art technology. However, recent Canadian innovations may soon offer another option.

Researchers at the University of Windsor have developed a low-cost radar system with the smallest form factor in the world while meeting automotive industry specifications. It’s the first of its kind to combine short-, mid- and long-range coverage using the same hardware. Passive beamformers that steer the beam have enabled researchers to lower the power consumption, minimize complexity and improve system reliability.

It’s slightly larger than a loonie and about one centimetre

14 PLANT

14-PLNT.indd 14

MAkinG iT SMALLEr And AT LOwEr COST thick, yet the sensor offers an adaptive tri-mode capability that provides coverage in a shorter response time and is more economic to build than anything in the marketplace. Many of the active microelectronic-based scanning beam systems consume more power, which adds stress to the vehicle’s battery. They also tend to add about $2,000 to $3,500 to a vehicle’s price.

A standard safety feature The United Nation’s World Report on Road Traffic Injury Prevention states that approximately 1.2 million people worldwide are killed in road crashes each year. Over the next 20 years, forecasts indicate that the rate is likely to increase by up to 50% without increased road safety initiatives.

With applications such as blind-spot detection, lane changing warning, stop and go functionality, pre-crash sensing, collision mitigation and more, there’s a large market for a reliable radar system at a reasonable price. If a new system can be made affordable, the University of Windsor team feels it would gain momentum and become a standard safety feature in all vehicles.

AUTO21 has supported the integrated smart active safety system (ISASS) project since 2008.

A recent study by the Odette School of Business at the University of Windsor indicates that the low-cost radar sensor has the potential to generate $20 million in its first year, taking over 10% of total market share. The study forecasts the radar will generate $350 million in its fifth year of commercialization, becoming a leader in its class and generating global economic benefits for Canada.

Researchers from the University of Windsor and the University of Alberta have filed a provisional patent and are working to bring the technology closer to market.

Sazzadur Chowdhury, an associate professor at the University of Windsor, leads the AUTO21 project “An Integrated Smart Active Safety System for Vehicles.” Visit www.auto21.ca.

nnovating plant processes is a hot topic. it helps companies to recharge and improve quality, efficiency and future profitability.

But how do you harness the creativity that drives innovation?

One theory is less formality with fewer rules, procedures and policies. Accordingly, much attention has been given to what is known as the three ds: de-bureaucratize, de-layer and de-centralize. innovation won’t come from relaxing the company bureaucracy. Formal systems and procedures are essential to control activities and ensure fair treatment across units and functions. rather than demolishing existing organizational arrangements, focus on the kind of structures, policies and procedures that motivate workers to achieve innovation goals.

Frito Lay encouraged workers to take part in an innovative thinking process by implementing a “creative problem solving” program, or CPS. Using a formalized eightstep structure, workers were encouraged to come up with and discuss new ideas, regardless of how wild they were.

The essence of the program is summarized in two phrases: “how MiGhT we... (fill in the problem/issue to be addressed)?” and “what’s stopping us from...?” The best ideas were chosen for implementation.

Through this structured creative process, the company developed a detailed plan of action, which over an eight-year period saved the company $500 million through tens of thousands of mini solutions (such as, cut the sugar/salt/fat 5% and call it “lite”).

An innovative organization needs to think and act differently than it would carrying out routine operations: plant team members must be properly trained and motivated. As an essential first step, clearly outline what the company wants from the team and why. your new philosophy is “none of us is as smart as all of us!” reinforce the process with training to develop the required competencies that will inspire innovation. Follow with an incentive system that rewards thinkers while penalizing those who fail to match the plant’s values. having the right structure and control in place encourages innovation. Savvy plant managers will tighten things up and devote more attention to procedures, processes and systems that will drive innovative thinking across the shop floor.

Chris Bart is the author of mission implementation and leadership book, A Tale of Two Employees and the Person who wanted to Lead them, which has been one of the Top Ten Best Selling Business Books in Canada for nine consecutive years. Visit www.corporatemissionsinc.com.

Comments? E-mail jterrett@plant.ca.

Comments? E-mail jterrett@plant.ca.

March 2013

13-02-27 3:58 PM

Health & Safety << Operations

Workplace

THE

noise

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Noise is not just a hazard to hearing.

Researchers describe it as a general stressor that can affect blood pressure and heart rate.

Assessing excess noise Health effects of exposure to noise. Researchers believe noise may act as a general stressor and cause symptoms such as changes to blood pressure and heart rate. A noisy environment may also affect how a worker breathes and sleeps.

Hearing issues run from tinnitus (a ringing or buzzing in the ear), to temporary or permanent hearing loss. A person who is exposed to noise often, for long periods or at high frequencies may experience permanent loss that will get worse for as long as the exposure continues. Permanent hearing loss is a cumulative process.

Initially, it’s most pronounced at a frequency of 4,000 Hz, but cuts across other frequencies over time and as the noise level increases.

Other factors that affect hearing include vibration, the worker’s age, certain medications and diseases, and exposure to “ototoxic” chemicals, such as toluene and carbon disulfide. Exposure to noise outside of work also contributes to noise exposure.

What can be done? A noise assessment and employee survey will help identify where the noise is coming from, its volume, who is exposed and for how long. The most effective measure is to eliminate the noise, but that’s not always feasible. The next best option is to control noise at its source by applying engineering controls, such as using mufflers on equipment to lower the volume to acceptable levels. Administrative controls, such as rotating work schedules, or changing produc-

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Control noise to lower the volume to acceptable levels.

PHOTO: THINKSTOCK

tion schedules, are also useful measures.

When technology doesn’t adequately control the problem, workers should wear hearing protection such as earmuffs or plugs, but only as an interim measure until noise is controlled at the source.

Workplace noise doesn’t have to be a health hazard.

Taking the necessary steps to control it will help prevent hearing loss.

This article was provided by the Canadian Centre for Occupational Health and Safety (CCOHS), a not-forprofit federal corporation that promotes the physical, psychosocial and mental health of Canadian workers by providing information, training, education and management systems. Visit www.ccohs.ca.

Comments? E-mail jterrett@plant.ca.

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Low or moderate noise levels in an office, school or computer room can be stressful when it’s difficult for people to talk and hear one another. Louder, industrialgrade noises in a manufacturing facility can cause permanent hearing loss.

How loud is too loud? Occupational exposure limits (OELs) are usually given as the maximum length of exposure permitted for various noise levels measured in decibels (dBA). Noise exposure limits vary within different jurisdictions in Canada (see www.ccohs.ca).

Even without technical measurements, there are telltale signs that help identify a noise problem. Do people have to raise their voices? After a shift, do their ears ring? Do they need to play their car radios louder going home than on the way to work? Do employees working in noisy environments for a few years find it hard to understand conversations at parties, restaurants or in other crowded places?

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Invest in your staff

www.plantmagazine.ca/rsc/ 110

How to improve skills and capabilities

M

any plant executives make excuses for not investing enough in maintenance training. Not acceptable, says Scott Anderson, the national maintenance manager for Purolator Inc., Canada’s largest courier company and a former director of the Plant Engineering and Maintenance Association of Canada (PEMAC).

He noted during a session at the 9th Reinventing Maintenance Conference in Mississauga, Ont., presented by Federated Press, that a shift in technology and management attitudes makes improving the training of maintenance staff and managers imperative. Here are two key points from his presentation: • Building a multitrade apprenticeship program is key. Even after tradespeople are licensed, further training is essential to strengthen the capabilities of a team. Training must be followed by rigorous testing and skills verification.

• To make skills training effective, maintenance managers must also be properly trained. Plants need qualified maintenance managers who are leaders, champions of new ideas, and thoroughly versed in the skills maintenance teams possess. Training addresses growth potential and development of interpersonal skills.

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PLANT 15

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13-03-01 2:00 PM

Operations

>> Maintenance

Get

PROACTIVE RIGHT START AT THE DESIGN STAGE AND BUILD IN RCM Build the principles of costeffective maintenance into equipment design and procurement specifications.

BY STEVE GAHBAUER

I

f you are going to get proactive maintenance (PM) right, it has to start at the design stage, says Ben Stevens.

He’s the principal of DataTrak Systems Inc., a worldwide maintenance consulting firm based in Godfrey, Ont., and for many years he has been president of OMDEC (Optimal Maintenance Decision Inc.), a developer of software for improving maintenance decision-making.

The maintenance management expert notes that’s where failure prevention and cost control by maintenance managers is so often frustrated. That’s why an Ontario engineering company that wished to build the principles of cost-effective maintenance into the equipment design and procurement specifications took direct aim at these objectives by using designed-in reliability centred maintenance (RCM).

The target piece of equipment was a bio-filter designed for use in a wastewater filtration plant owned and operated by a large municipal utility. To ensure the equipment procurement process took account of the resources, time and cost required to perform best practices main-

Technicians repair a machine that lacks designed-in reliability.

tenance during the equipment lifecycle, three specific things were required: a failure modes, effects and criticality analysis (FMECA) of the bio-filter; a series of criteria to embed RCM thinking into the design of the bio-filter leading to cost-effective maintenance; and recommendations for the tasks required for the preparation of the enterprise asset management (EAM) work orders.

Elements of design There were three steps to the methodology.

An RCM analysis was conducted to establish the functions, functional failures and failure modes for the bio-filter in its planned operational environment to understand failure behavior; complete the

PHOTO: THINKSTOCK/HEMERA TECHNOLOGIES

FMECA; develop the maintenance task types using the RCM decision algorithm; and draw up a brief for use in preparing the EAM-ready work orders for the bio-filter.

Design elements inherent in applying the RCM techniques were detailed.

This meant exploring the core reliability philosophies with design engineers to provide a framework for the work: • Reliability is constrained by the design of the equipment and the manufacturing processes that produce it.

• Scheduled maintenance helps to ensure that the inherent reliability characteristics are achieved.

• Maintenance can’t provide reliability characteristics beyond those inherent in the design.

• Life-time maintenance costs can be greatly reduced by smart design.

This process was followed up with definitions of the RCM elements and the maintenance activities that applied to the design criteria of the bio-filter.

Defining the maintenance tasks for the EAM used the following criteria: • Use the inspections to identify potential failures.

• Use the potential failures as a means of predicting functional failures and triggering proactive maintenance tasks that have a direct impact on functional failures.

• Define PMs that act directly on preventing or delaying functional failures.

• Where functional failures do occur, automatically perform a root cause analysis to rectify the RCM record and update the maintenance plan.

Stevens says the design engineers and the municipal client accepted this procedure and the analysis as the best method for the design and construction of the bio-filter. Management has applied the measurement tools and key performance indicators (KPIs) to measure the maintenance and operations efficiencies, and he has recommended this becomes a standard practice for new equipment procurement.

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

Comments? E-mail jterrett@plant.ca.

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POWERPOWER DISTRIBUTION DISTRIBUTION

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13-02-28 7:33 AM

Strategy << Take action along your supply chain to reduce variations and minimize disruptions.

A forklift picking up parts for use on the plant floor.

PHOTO: THINKSTOCK

BY MATT POWELL, ASSISTANT EDITOR

H

olding excess inventory is a symptom of bad process. So says Richard Kunst, the CEO of Cambridge, Ont.based Kunst Solutions Corp. and a disciple of the Toyota Production Process.

“Companies hold excess inventory if throughput time cannot meet customer demand. Too many operations aren’t focused on the velocity of production through their value streams.”

Improving processes along the supply chain is more necessary than ever, he asserts, now that just-in-time production is a post-recession norm.

“Manufacturers are no longer cannibalizing multiple production lines into single ones. Business is coming back, so excess capacity needs to be brought back up.”

Kunst, a management consultant who helps companies become more agile, develop evolutionary management and implement lean solutions, has practiced what he preaches. Previously, he worked as the director of production at Ingersoll, Ont.’s CAMI production plant where he oversaw the production of the Suzuki Tracker and Chevrolet Equinox SUVs, and he cut inventory hold times from 14 to four hours in less than a year using lean tactics.

“Just-in-time is now the norm. A company that a few years ago had three weeks of visibility now has two or three days. It’s a reality of doing business now.”

Inventory is kept to address supply chain variations and minimize disruptions. Companies have to maintain certain levels to handle lead times or time lags along the supply chain. It also acts as a cushion during those times of uncertain supply and demand. Efficient inventory management is a balancing act, but it can be achieved by maintaining sound operational processes along the supply chain.

Here’s how to maximize the value of your inventory: Think lean. Maximize flexibility by implementing lean concepts to reduce lot sizes and lead times. Reducing those variables reduces inventory.

“More customers are placing orders they want within

Balancing PHOTO: THINKSTOCK

ACT

HOW TO MAXIMIZE THE VALUE OF INVENTORY

OL CONTROL

24 hours,” says Kunst. “Cycle times have sped up, and by truly adopting lean concepts, you can keep up.”

Improve velocity by understanding how it increases uptime and by getting closer to suppliers.

“For every person working in a factory, there’s 10 people producing the components your factory needs,” Kunst adds. “Consider the supplier base because it reduces variables along the supply chain.”

Collaborate. Managing inventory requires focus along the entire supply chain. Michel Girard, partner of strategy and operations at Deloitte in Montreal, says companies need to develop a collaborative sales and operational process that includes all silos of the business.

“The goals need to meet customer demands while reducing inventory,” he says. “But, a lot of companies abandon this strategy because they’re convinced they will never reach a common number. This is a major opportunity companies are missing out on.”

The collaborative process between sales, manufacturing and finance allows the team to meet a common goal.

IT INFRASTRUCTURE IT INFRASTRUCTURE www.plantmagazine.ca/rsc/ 112

16-19-PLNT.indd 17

This strategy is most successful if it’s addressed consistently. Variables along the supply chain must be considered and concerns voiced.

Push to pull. “Don’t think of inventory as units. It’s time,” says Kunst.

A pull system forces companies to react to customer demand.

“Don’t make stuff and hold on to it hoping people will buy it. When the customer knocks on the door, know how to make it quickly and get it out the door.”

Push-based supply chains produce goods that travel through a channel from production to retailer, and production levels are set to react with historical ordering patterns. This strategy takes longer to respond to changes in demand and often lead to overstocking inventory or production bottlenecks.

Toyota’s production model is based on a pull-based supply chain. Procurement, production and distribution are demanddriven, but the strategy doesn’t always require make-to-order production.

Reduce variability. Forecasting is Continued on page 18

INVENTORY LEVELS DECLINE Statistics Canada’s December manufacturing report shows inventories decreased 1% to $64.5 billion.

Transportation equipment was down 2.7% to $9.1 billion.

Most of the decrease came from lower inventories in aerospace products and parts, motor vehicle assembly and parts.

Petroleum and coal products were down 4.6% to $4.9 billion reflecting lower volumes for all three stages of fabrication held by manufacturers.

The inventory-to-sales ratio rose to 1.34 from 1.32 in November, the time that would be required to exhaust inventories if sales were to remain at their current level.

Unfilled orders rose 2.6% to $65.8 billion. The increase stemmed from a 5% gain in the aerospace product and parts industry, which stood at $35.9 billion.

A 3.2% decline in the machinery industry offset a small portion of the gain.

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Operations

Reduce variables

>> Think Lean

TPM

A TOTALLY POWERFUL TOOL

Continued from page 17

vital to meeting customer demand, especially in today’s shifting markets.

“The objective for manufacturers should be to have the right inventory,” says Robert Tousignant, partner of business advisory services at Ernst & Young in Toronto.

A lot of companies consider inventory as a target, but he says it shouldn’t be a target that’s set. Instead, inventory needs to be a calculated goal that reflects your company’s ability to predict demand and variations in capacity and supply demand.

“In a perfect world, you’d have just enough to make what you need, but the world is not perfect.”

Predictable manufacturing Inventory is there to compensate for variations. If your goal is to reduce inventory, reduce variations.

Boost reliability. Managing inventory is easier if you have a manufacturing process that’s predictable, says Tousignant.

“If you produce an amount one day, make sure it’s consistent. Reliability reduces variations in supply.”

This includes considering factors such as changeovers and set up times.

“Reducing changeovers and set-up times is critical to managing inventory,” he adds.

Consider supplier variations. How is their manufacturing and supply process adaptable to yours? How much can they produce? How do they deliver?

Keep ‘em close. Border challenges are still a variable manufacturers need to consider to manage inventory successfully.

Girard advises assemblers to stay within four hours of their suppliers to ease any fluctuations in demand.

“Assess variations along that supply chain. Be ready for delays and account for them,” he warns.

Vendors further away also make practicing just-in-time more challenging. This can be overcome by pushing inventory to vendors and reducing transportation variations, says Tousignant.

“Being farther away introduces more variations, such as transportation and border clearance. Limit them as much as you can by keeping key suppliers close by.”

Get smarter. Girard advises companies against setting inventory as a target independent of desired service level. That requires firms to get smarter about how they’re managing their supply chains.

“Companies need to manage themselves more rigorously,” he says. “Think about inventory in the context of desired customer service level. Work to get as close to 100% as possible. That will depend on how your company is managed.”

Tousignant suggests managing inventory beyond big principles. Apply processes and implement them to ensure they cater to your market or industry.

“The devil is in the details,” he advises.

“This is not a one size fits all environment.”

Comments? E-mail mpowell@plant.ca.

18 PLANT

16-19-PLNT.indd 18

Is your operation running the way it should? A TPM station will help ensure that it does.

An equipment and area checklist, with an example of an area log (inset).

BY RICHARD KUNST

T

he meaning of the acronym TPM has morphed over the years from total preventive maintenance to total productive maintenance to total productive management. The latter term allows you to include elements of standard work combined with equipment or process checks, all of which help to build the sustainability portion of your lean program.

A typical TPM station resides close to key equipment and contains the following forms: an equipment and area checklist; area log; and requisitions.

On the surface the equipment and area checklist looks like a simple way of auditing equipment. It’s completed daily by an assigned team member. But there are hidden benefits. The form is designed into three categories: customer information; evaluation criteria; and audit control.

For any process to work effectively it must be assigned an owner so the team member signs his/her initials at the top of the form. This creates an emotional connection between the team member and the equipment.

In the evaluation area there’s a series of items that should be checked regularly.

As opportunities resulting from “disturbances to flow” are identified, additional items should be added regularly by asking the team member, “What could we have checked that could have prevented this incident?” Over time, the form assists in the early detection of potential problems. And checklist items can go beyond traditional mechanical items to include replenishment of consumable inventory items or even 5S attributes.

Filling out the form is simple. A checkmark if the item is in conformance and an “X” if it isn’t. When there’s non-conformance, notify a supervisor, place it as an open issue on the report-out board or submit a maintenance requisition.

Typically, an area log sheet is close to the TPM sheet. It contains the normal columns, date, initiator, confirmation and due date, but a special column asks the initiator – who is the customer – to sign off on a line item to indicate he/she is satisfied with the results. The log sheet also acts as a histogram for the equipment or area and if reoccurring items appear on the list, it’s a good indicator that a redesign is needed for a more robust process.

No signature means that the issue is still of concern. As part of the monthly facility safety audits, any items that have remained open for more than 30 days are recorded.

Now for the fun part – the audit section of the form. A subtle yet very powerful tool in the Toyota Production System is the use of name stamps. You stamp what you read, leaving your legacy behind for others to see.

Train all managers There’s a row for maintenance to place stamps, which helps to convert technicians from reactive to being proactive or preventive. You assign the techs to conduct several audits each day.

During the audit the tech should instruct the team member to physically demonstrate how he/she checks each item and where it’s located on the equipment. This ensures the power of training and learning is not lost.

Train all the members of the management team (including team leaders, supervisors, general managers, directors, and presidents) to stamp the sheet whenever they stop in the area.

It indicates commitment to the team member but more important – it shows management was on the shop floor looking at information and listening to the voice of the customer.

The form is designed to be refreshed on a monthly basis, so at the end of the month it’s important to conduct a solid summary of the events such as: Was the machine checked on a daily basis? Were audits conducted by maintenance? How many and by whom? Did a supervisor or management team member visit machines? Which ones and how frequent?

The chief characteristics of a TPM station are simplicity and power. Applying them will generate key information that shows whether or not your operation is running as intended.

Richard Kunst is president and CEO of Cambridge, Ont.based Kunst Solutions Corp., which facilitates lean consortiums in Ontario, helps implement lean solutions and publishes the “Lean Thoughts” e-newsletter. TPM stations and other solutions are available at www.kunstsolutions.com.

E-mail rkunst@kunstartofsolutions.com.

Comments? E-mail jterrett@plant.ca.

March 2013

13-02-28 7:33 AM

To

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13-02-28 7:33 AM

Trends

>> Conference Report

>> Trade

Confidence is high

CAPP estimates more than $117 billion in procurement opportunities

But we’re missing the boat on trade

C

BY DAN ILIKA

D

on’t be too concerned about pipeline controversies, fluctuations in the price of oil and it’s effect on production, or the aggressive tactics of environmentalists: there’s plenty of opportunity for manufacturers from across Canada in Alberta’s oil sands. With some planning and the right relationships, you can access a share of the billions of dollars spent on MRO and capital projects.

That’s what stakeholders and experts came to hear in December at the Canadian Association of Petroleum Producers (CAPP) investment symposium in Toronto. Presenters touted more than $117-billion in procurement opportunities in Alberta’s largest oil and gas plays, and issued an open invitation to manufacturers looking to get their feet wet in black gold.

“It’s not just a resource business, it’s a tremendous manufacturing business,” said Ron Subramanian, Ontario director of special projects for Canadian Manufacturers & Exporters (CME).

Whether looking at upstream oil and gas exploration or downstream refining and distribution, he stressed opportunities abound for firms with the know-how to retool and manufacture what oil and gas companies need.

“We’re looking at an average of about $3 billion to $4 billion spent on capital projects in Alberta (annually),” said Mario Potapczuk, manager of projects with

Long-term opportunities await in Alberta’s oil sands.

Targeting the

OIL SANDS

IT’S ALL ABOUT RELATIONSHIPS Calgary-based engineering procurement and management firm HOCS Projects.

“No matter how we do the math … it’s an enormous number, and when we look at our capacity in Alberta, the conclusion is very obvious: we cannot do it ourselves.”

But don’t make a hasty decision to enter this marketplace.

CME launched an all-out blitz to help manufacturers make the transition to

>> Global Business

Watch your back

Aggressive Asian companies are after your customers

W

PHOTO: THINKSTOCK

arning to western business leaders: The Boston Consulting Group says there is a new breed of global entrepreneur from Asia on the loose, and they’re after your business, both abroad and at home.

The Boston-based consulting firm says entrepreneurs in China and India, including Tata, Lenovo, Huawei Technologies and the Godrej Group, have an “accelerator mindset” that places their focus on tenfold growth in 10 years.

This “ten-by-ten” strategy is marked by huge ambitions – a big-picture vision, colossal dreams and no limits on opportunities, said BCG in its report, The $10 Trillion Prize: Capturing the Newly Affluent in China and India.

“These entrepreneurs are unlike their Western counterparts,” said study coauthor Michael Silverstein. “They do not feel beholden to anyone, and are not bound by textbook business rules or the constraints of business logic. And they are natural risk-takers.”

In 2000, there were eight Chinese companies and one Indian company in the Fortune 400. By 2010 the Fortune 500 included 46 Chinese companies and eight Indian companies. BCG said several of these have grown to become challengers on the global stage, including India’s Godrej Group, which has created new markets through innovative partnerships with Western appliance-makers to produce its tiny, efficient Chotukool refrigerator for rural Indian customers who have unreliable electricity and limited space.

The report co-authors note several qualities distinguish Chinese and Indian entrepreneurs: • they start with a clean slate, instead of following rulebooks or existing templates; • they focus on a specific opportunity; • they scale up or refocus as needed, reconfiguring staff and production on the fly to take advantage of fast-moving opportunities; • they learn by doing, without investing significant time or resources in plans and studies; and • they drive relentlessly forward, moving past mistakes in the conviction that future growth will take care of present challenges.

Silverstein said the new entrepreneurs focus on execution. “All of these qualities make them highly unpredictable and therefore formidable competitors.”

Alberta in early 2006, and Subramanian headed to Calgary to help set up a game plan for the anticipated influx.

anadian manufacturers are significantly more optimistic than those in other sectors about growth this year, but they’re missing out on opportunities in the US and emerging markets, according to reports from Grant Thornton.

The Grant Thornton International Business Report (IBR) shows company leaders predict increased revenues, profits, orders, and they plan invest for growth. Fourth quarter Canadian results from all sectors reveal profitability expectations jumped from 41% to 47%, and investment in plants and machinery also rose from 36% to 42%. Manufacturing’s expectation for growth is way ahead of the other sectors – 62% versus 47% – and 72% of manufacturers think exports will either hold steady or increase.

However, the Grant Thornton 2013 Global Business Outlook shows Canadian optimism (at 47%) to be in tenth place globally, down 7% from the last quarter.

More than half (57%) of global business leaders considering international expansion are looking at the five biggest emerging economies (China, India, Russia, Brazil and Mexico) compared to 38% who are looking at Western Europe and one-third considering North America.

Not a gold rush “One of the things we noticed … was there were a lot of companies that went to Alberta thinking it was a gold rush,” Subramanian said. “…that all you had to do was get a meeting or maybe even just knock down a door and somebody was ready to hand you a contract.”

Today’s slower pace of growth in Alberta allows manufacturers from outside of the province to ensure healthy relationship building and success. Subramanian offered these planning tips: • Do the necessary market research and assessment. Evaluate whether or not this is even for you.

• Consider building a network with colleagues and professional associations, which is critical to future success.

• Attend industry events, network and build relationships – before you actually need them.

• Be in the market, but not necessarily “in” the market. You’ll need some form of local representation, either through regular trips to Alberta or by hiring an agent to work at the local level. But you don’t necessarily need to set up shop there, otherwise you’re going to have the same issues local manufacturers already have, such as a chronic shortage of skilled labour.

“It’s really about planning ahead and looking forward,” Subramanian said.

“There are no shortcuts. The moral of the story is, ‘luck is where preparation meets opportunity’.”

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

Visit www.grantthornton.ca for these reports.

More than 70% of the Canadian businesses said they rely less on the US and take a more global approach. But Jim Menzies, national leader of manufacturing and distribution for Grant Thornton LLP in Canada, says Canadian manufacturers are missing out on significant growth opportunities in emerging markets.

“Expanding to emerging markets is something Canadians have traditionally backed away from,” he explains. “As a result, they have not even scratched the surface of significant growth opportunities in many emerging regions, including places like South America.”

Heavy reliance on the US has left manufacturers vulnerable to swings in America’s economic fortune. Instead of approaching the US as a single entity, he believes it should be approached as a collection of different economies and cultures.

“Ontario has more in common with Michigan than Michigan has with Alabama or California. Regional economic pockets each have a unique set of demands for Canadian products that can be leveraged with the right strategy and approach.”

Manufacturers also need to act on strategic merger and acquisition (M&A) opportunities, an area where he says they need to be extremely agile.

Comments? E-mail jterrett@plant.ca.

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Lighting << Technology

Let there be

LIGHT HEAVY-DUTY FLOOD PLAYS IT COOL

BY MATT POWELL, ASSISTANT EDITOR

Lind’s Beacon LED cuts energy costs and makes the handling of portable lighting safer.

B

rian Astl isn’t fond of innovation for its own sake. It must serve a purpose. The vicepresident of sales for Lind Equipment Ltd. is, however, certain the company’s latest offering will not only too make regular industrial maintenance easier, but safer thanks to a new LED floodlight technology that reaches a maximum temperature barely exceeding the 31 degree C reading of a human hand.

Lind, a manufacturer of electronics and industrial lights Lind’s Beacon LED floodlight makes industrial mainbased in Markham, Ont. with operations in Williamsville, NY, tenance safer and brighter.

PHOTO: LIND EQUIPMENT says its portable 50-watt “Beacon” LE970LED floods provide white light equivalent to a 500-watt quartz halogen bulb, but That’s how the Tank Store, a manufacturer use 90% less energy for savings of up to $100 a year per unit. of oil tanks and separators based in Halkirk, They’re also a lot safer, reaching a maximum temperature of 35 Alta., uses the Beacon. degrees C, making the lights easier to handle. And light emit“It’s super-tough and super bright, but it ting diodes make them rugged. doesn’t kill the eyes,” says Codee Sorenson, a shop foreman at “You can bang them around without too much worry; they’re the Tank Store. “It lights up the whole tank without any shadpretty durable,” says Astl, noting by comparison, that fragile ows, which is a major benefit.” quartz halogen bulbs could explode if they come in contact Lind performed a temperature comparison of LEDs and with the natural oils found on a worker’s hands, much like quartz halogen bulbs using FLIR infrared cameras. After bulbs used in household pot lights. four hours, the quartz halogen bulb had reached a maximum The 10-pound LE970LED is built with an IP65-rated weathtemperature exceeding 300 degrees C. That’s the melting erproof cast aluminum housing and the point of pewter. Human skin burns at 100 tempered glass lens has a run time of up degrees C. to 50,000 hours. If you are so inclined, That’s why quartz-halogen bulbs are covABOUT LIND you could leave a Beacon on 24/7 for up ered with grates designed to keep curious The Markham, Ont. manufacturer, founded to five years. hands away, but the grating also creates in 1949, exports most of its product to the shadows. The Beacon emits the same US because of voltage constraints (North amount of usable light, but operates at a America is 120 volts, while the rest of the Energy saver temperature that would not cause serious world is 240 volts). It does, however, supply Astl says the lights can be used during injury should an accident occur – and no static bonding and grounding equipment to plant shutdowns as an energy conservashadows – making it a cooler and safer way oil and gas hubs around the world. And it tion practice, and for a number of mainto light up industry. has developed a portable static grounding tenance activities, including confined monitoring system. welding operations such as work inside Comments? E-mail mpowell@plant.ca. oil tanks.

www.plant.ca

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>> Supplylines CRUSHING GLOBAL MARKETS McLoskey International is taking its show on the road with an expanded presence at the bauma 2013 international trade fair in Munich, Germany for heavy machinery used in construction, building materials and mining.

The manufacturer of screening and crushing machinery based in Peterborough, Ont. has added booth space to showcase its line of crushers, screeners, trommels and stackers.

The company has been adding international dealers to represent its products around the world. Last year it expanded its workforce and plants in Canada and Northern Ireland.

STREAMLINED DISTRIBUTION Brennan Industries Inc. is streamlining its distribution in Canada with a new, more efficient facility. The international supplier of hydraulic fittings and adapters based in Cleveland has moved to American Drive in Mississauga, Ont., close to its original location on Viscount Rd. Brennan opened its Canadian distribution centre in 2009 to save customers time and to cut their costs.

90 YEARS AND STILL LIFTING The Raymond Corp. is celebrating its 90th anniversary as a supplier of materials handling equipment this year. The company began producing lift trucks in 1922 when George Raymond Sr. purchased Lyon Iron Works, a small foundry in Greene, NY. In 1934, Raymond invented the first hydraulic hand pallet truck. The company’s products are distributed in Canada by Johnston Equipment, which is based in Mississauga, Ont.

$40M ABU DHABI DEAL Honeywell International has been awarded four major contracts worth a combined $40 million over 18 months for the Borouge petrochemicals complex in Ruwais, Abu Dhabi. It will be the main automation contractor for this project, providing Linde and other engineering, procurement and construction contractors with integrated control and safety systems, including the Experion Process Knowledge System C300, Safety Manager and Advanced Process Control. Borouge 3, the latest expansion of the polyolefins plant, will manufacture Honeywell’s Safety ethylene, polyethylene, Manager, a SILpolypropylene, and certified integrated low-density polyethyl- safety platform. ene (LDPE). Honeywell, PHOTO: HONEYWELL a diversified technology and manufacturing company based in Morris Township, NJ, serves a variety of industries from offices across Canada.

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CIEN

safety

>> Energy

Exploring wormholes

Energy producers use motes to explore empty spaces before they drill

By Matt PowEll, assistant Editor

E

nergy producers in alberta’s oil sands may soon have a set of eyes underground thanks to a project originally developed to tap a lucrative oil supply of more than 25 billion barrels in saskatchewan. in november, microsensor motes were sent into a heavy oil reservoir through an injection well and retrieved via a production well as part of a field trial conducted by the Pi innovation Centre. this joint-venture involves the Canadian Petroleum technology research Centre (PtrC) and inCas3, its dutch-based partner and independent, non-profit research institute that developed the sensor motes. the PtrC, founded in 1998 to research and develop enhanced oil recovery and carbon storage methods by natural resources Canada, the saskatchewan government, the University of regina, and the saskatchewan research Council, is headed by Malcolm wilson, who says the sensors will help the province’s producers improve bitumen recovery rates.

Heavy oil reservoirs in the saskatchewan-alberta border region see only a 5% to 8% recovery rate using existing recovery methods such as CHoPs (cold heavy oil production with sand). “we’re leaving 92% of this huge resource in the ground,” says wilson. “that’s a significant issue.”

CHoPs involves a sand and oil mixture that’s extracted from the heavy oilfield, which leads to the creation of empty spaces or ‘wormholes’ in the reservoir. these wormholes form a potentially immense network of channels in unconsolidated sandstone that prevent pressurization of the reservoir, which affects the efficiency of oil production.

SAfEr bIofoCAL EyEwEAr

PHOTO: PTRC

“if we know what these wormhole networks look like, we can pick and choose where to drill next,” says wilson.

“Knowing what’s happening below is critical.”

Each microsensor, no more than 7 mm in diameter, sends individual signals back to 3d software that produces maps of the vast underground networks. the PtrC believes if the oil industry can better characterize these reservoirs, it can improve extraction methods and boost yields by up to 20%, and lessen environmental effects. the project’s goal is to better understand the structure of the reservoirs, and if a network of wormholes exists, the sensors could provide details about their number, diameter, direction and location. Better targeting will lessen the amount of water needed to push into a well. wilson says the PtrC and inCas3 face challenges related to the size of the sensors and how they handle conditions below the surface. the next step is to analyze the test results and to set up a research program to move to the next phase of trials, which will be aimed at establishing stronger communication levels between the sensors below and surface operations. “actually seeing and better understanding these wormholes will enable us to develop improved recovery techniques.”

E-mail mpowell@plant.ca.

www.plantmagazine.ca/rsc/ 1

ThIS booT IS MAdE for workINg Dayton Boots’ 64 workboot is now CSA-certified and safe for an industrial worksite.

The Vancouver manufacturer customfits the handmade boots, which sport a steel toe, plate and shank construction. The steel shank provides lasting arch support with a roomy toe box for comfort. Vibram 100 Nitrile soles are nonslip, and oil and acid resistant.

Goodyear welted construction allows easy resoling. http://daytonboots.com 64 boot is CSA-certified.

Resists deformation.

www.plantmagazine.ca/rsc/ 2

hALf MASk, fULL ProTECTIoN

The tiny sensors are just 7 mm in diameter.

packs. Each one contains two of each diopter: 1.0, 1.5, 2.0, 2.5 and 3.0 (clear lens) for greater flexibility with the various magnification levels.

A Clear In/Out Mirror lens option reduces the effects of intense bright light and glare as workers transition from indoor to outdoor tasks. It comes in 1.5, 2.0 and 2.5 diopter levels.

StarLite MAG eyewear is available in clear, clear antifog and grey lens options. http://gatewaysafety.com

A range of diopters.

Bifocal safety eyewear is one of the fastest-growing segments in eye protection, but the one-diopter-fits-all approach doesn’t always work.

Bifocals allow workers to clearly read instrumentation, work with small parts or perform other close tasks. However, in potentially hazardous environments, switching between regular safety glasses and reading glasses without creating a moment or more of non-compliance can lead to errors and eye injuries.

Gateway Safety, a Cleveland manufacturer of safety products, has introduced 10-unit StarLite MAG multi-

and user fatigue.

The lightweight mask is constructed of medical-grade Miller Electric Mfg. Co.’s LPRmaterial that is odour, latex, and 100 half mask respirator has a silicone free. The field of vision is low-profile so it fits under most wide and view is unobstructwelding helmets. ed. A replaceable pleated With an assigned protecfilter with its larger tion factor (APF) of 10, surface area reduces it filters out 99.97% of breathing resistance airborne particles and extends filter and oil aerosols. life.

A four-point head Miller Electric, strap adjustment based in Appleton, creates a customWis., manufactures ized fit to most arc welding and cuthead shapes and sizes. ting equipment.

A large non-return exhaust valve further Filters 99.7% of particles www.millerwelds.com reduces heat build-up and aerosols. www.plantmagazine.ca/rsc/ 3

PUShbUTToN MAkES oPErATIoNS SAfEr APEM Components Inc.’s ES emergency stop pushbutton makes industrial, HVAC and food processing operations safer.

It features a 22-mm bushing with a 34-mm round actuator. It’s IK10 impact resistant, rated to IP65 and EN 60947-5-1 certified. The switch also has a push-pull ON-ON function.

The company, a manufacturer of industrial switches based in Haverill, Mass., says the metal pushbutton has a 100,000 cycle mechanical life and is resistant to axis deformation even if it’s exposed to major shocks.

It’s sealed to IP65 and mounts via straight PC or solder lug terminals. www.apem.com www.plantmagazine.ca/rsc/ 4

NUMSAfE: SCALAbLE To MoST MAChINE TooLS NUM’s system-wide functional safety architecture for its CNC system provides a scalable solution that’s easily applied to almost any type of machine tool, regardless of complexity or number of axes.

NUMSafe includes a dedicated safety PLC, safe input and output modules, and digital servo drives with built-in safe motion monitoring. It’s compatible with NUM’s new-generation Flexium+ CNC platform.

Compatible The safety PLC and I/O modules are contained within the with Flexium+ same standard terminal line-up as other elements of the CNC platform. control system. All communication between the machine’s control system, operator panel and servo drives is handled via EtherCAT field bus, using a Fail Safe over EtherCAT (FSoE) protocol to ensure the data’s integrity.

NUMSafe complies with the EN ISO 13849-1 machinery safety standard up to PL e, and with the EN 61800-5-2 functional safety standard for variable speed drives, up to SIL 3.

NUM is a Swiss company that makes CNC controls for high-end applications with US operations in Naperville, Ill. www.num.com www.plantmagazine.ca/rsc/ 5

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13-02-28 7:19 AM

Product Focus << Technology

15 mm sensing distance.

NoN-CoNTACT SAfETy SENSINg Use ABB Jokab Safety’s Eden non-contact, non-magnetic safety sensor with built-in diagnostics and a quick discon-

nect on interlocked gates and hatches.

Maximum sensing distance between Adam and Eva is currently 15 mm ± 2 mm. Up to 30 sensors connect in series yet they achieve the same safety level in the circuit. It’s also possible to connect safety light beams and E-stops in the same circuit.

Use the Eden E encapsulated IP67K version for harsh environments.

ABB Jokab Safety, based in New Berlin, Wis., is a business unit of ABB Low Voltage Products, a supplier of industrial sensors. www.jokabsafetyna.com www.plantmagazine.ca/rsc/ 6

Problem solved.

Monitor connected electronics.

MULTI-TASk wITh A bLUETooTh hEAdSET

Brady Corp. has expanded its comprehensive line of safety padlocks to include 3-in. shackle aluminum and key-retaining steel and nylon shackle.

The Milwaukee, Wis. manufacturer of industrial protection products says steel and aluminium padlocks for chemical processing and oil and gas industries come in eight stock colours.

The safety padlock with a non-conductive nylon shackle has a patented keyway that breaks any current from travelling from the shackle to the cylinder. Other line additions include a silver aluminum, additional KA aluminum sets and two additional stock colours for safety KA sets. www.BradyCanada.ca Eight colours.

Peltor WS headsets with bluetooth wireless technology from 3M’s Personal Safety Division allow workers to communicate, listen to music and talk on the phone without removing their headgear.

The headset amplifies lower-level sounds, such as voices, while attenuating higher-level sounds and limits exposure to 82 decibels.

It comes in four distinct styles, some with interchangeable cups, and optional boom mics.

The 3M Personal Safety Division, based in St. Paul, Minn., makes safety equipment. www.3M.com/PPESafety

www.plantmagazine.ca/rsc/ 7

www.plantmagazine.ca/rsc/ 8

LoCk UP PLANT SAfETy

hANdLE wITh grEATEr dEXTErITy Magid Glove & Safety’s ChromaTek CT500 gloves add colour to the work environment but there are some very practical benefits to the cut-resistant, highperformance polyethylene (HPPE) hand protection.

Black, blue, pink, purple and red increase worker visibility, but the darker colours also hide dirt and grime, extending the service life of the glove.

A black polyurethane palm coating channels away liquids and oils, ensuring added flexibility,

It’s not the brush dissipating static. It’s safety improved.

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

Get the answers you need.

Call us today.

dexterity and grip compared to plastic and nitrile coatings.

And you can launder the gloves, which increases their wear time.

Magid, a Chicago-based supplier of workplace protective equipment, says the shell is made of super-high-density, 15-gauge HPPE blend that contains more yarn filaments than other HPPE gloves. The form-fitting, breathable shell heightens tactile sensitivity, allowing workers to better handle small and delicate parts. www.magidglove.com Higher visibility. www.plantmagazine.ca/rsc/ 9

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

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

murphy_meansmore:08 10/23/08 5:54 PM www.sealeze.com

Page 2

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Murphy means

MORE.

Value more

No one gives you more.

Feature for feature: Murphy packs more in Get it done right the first time.

430 Franklin Blvd., Cambridge, ON N1R 8G6

(519) 621-6210

Fax: (519) 621-2841

E-mail: 4nodust@nrmurphyltd.com Web Site: www.nrmurphy.com

www.plant.ca

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PLANT 23

13-02-28 7:19 AM

cieN Motion control

AC/DC powered.

TrANsmiTTer hANdLes four LoAd ceLLs Calex Mfg Co. Inc.’s 4800 summing transmitter handles up to four load cells with output options of 0 to 20 mA and 0 to 10 V, or 4 to 20 mA and 2 to 10 V. It’s AC/DC powered and confined to a single board,

eliminating the need to specify input/output parameters.

Calex, a manufacturer of instrumentation and power conversion products based in Concord, Calif., says a built-in excitation supply delivers up to 120 mA at 10 V, which is more than enough current to drive four 350 ohm load cells.

Overall accuracy over normal room temperature range is <±0.1% of full scale.

It can be powered from 115 VAC, 230 VAC, or 11 to 30 VDC and includes a built in excitation supply cable that delivers up to 120 mA at 10 V. Three-way signal isolation allows inputs to be secluded from outputs, which are isolated from supply voltage to eliminate unwanted ground loop issues. www.calex.com www.plantmagazine.ca/rsc/ 10

Ethernet compatible.

PockeT PLc mANAges muLTiPLe i/os Galil Motion Control’s RIO-47142 pocket PLC includes an internal switch with two ethernet ports that daisy-chains multiple RIO units and allows users to manage an unlimited number of inputs and outputs without an external ethernet switch.

Each RIO unit is self-contained and provides 32 optically isolated digital

CONNECTIONS

inputs and outputs, and 16 analogue inputs and outputs. The RIO uses a RISC processor for fast handling of I/C & logic, while on-board, non-volatile memory and multitasking allows up to four programs to run simultaneously.

Other features include variables and arrays, PID process control loops, timers, counters, web interface, email alerts, datalogging, and the ability to read position and temperature sensors. Software converts a Relay Ladder Logic program into code for input into the RIO controller.

The unit is powered by an external 18 to 36 V supply.

Galil Motion Control is a manufacturer of motion control products based in Rocklin, Calif. www.galilmc.com www.plantmagazine.ca/rsc/ 11

SenSorS rds iNTerfAce goes digiTAL

like these cannot be made at your desk!

isolated dry contacts or PnP outputs allow Surecross Q45 remote devices (rD) from Banner engineering to interface Isolated dry contacts. with most digital sensors. it also interacts directly with nAMUr inductive proximity sensors, while operating on less than 100 uA of currents. in control and monitoring applications, this keeps the battery running for up to five years. the self-contained battery, radio and sensor system replaces wired solutions with simple deployment and untethered communications to improve efficiency by monitoring and coordinating multiple machines and processes.

Banner engineering manufactures photoelectric and ultrasonic sensors in Minneapolis. www.bannerengineering.com

May 14-16, 2013

Toronto Congress Centre Toronto, ON

www.plantmagazine.ca/rsc/ 12

geT A Wi-fi smArTedge

Industry Peers

New Technologies

Thought Leaders

Ideas and Inspiration

Leave your office behind and expand your skill set at Design & Manufacturing Canada.

• Increase your knowledge and your network by engaging with like-minded peers and industry thought leaders.

• Test drive the technologies of tomorrow.

• Collaborate with world-class suppliers to create custom solutions that can’t be found online.

• Engineer fresh ideas through face-to-face discussions.

Fluke networks’ Smartedge sensors extend Wi-Fi security and performance monitoring through a dedicated wireless network that eliminates ethernet cabling to reduce costs by up to 65% in situations where cable installation is prohibitive. the sensors employ internal radios (two 802.11n 3x3 MiMo 450 Mbps plus one for dedicated spectrum analysis) to enable 24/7 security monitoring, scanning and rogue detection. this combines with client performance verification via AirMagnet enterprise’s Automated Health check (AHc) feature. AHc proactively tests and verifies WlAn network health from the end-user device to the cloud and identifies issues before they impact the organization. the sensors are fitted with “fade-into-the background” enclosures, integrated drop ceiling mounts and recessed cable entries. they also increase memory capacity and support for 10/100/1,000 Mbps ethernet connections.

Fluke networks is a manufacturer of network test and monitoring solutions based in everett, Wash. www.flukenetworks.com

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24 PLANT

March 2013

13-02-27 4:02 PM

Products and equipment << Technology HAnD toolS

Rotary hammer for MROs.

driLLs iN TighT sPAces Milwaukee Tool’s M12 cordless 1/2 in.

SDS Plus rotary hammer works in tight spaces delivering 0-800 rpm, 0-5, 350 bpm and up to four times faster drilling times.

The tool weighs just 1.7 kg, measures 9-in. in length, drills up to 55 holes per charge, and bores holes up to 1/2 in. in concrete and masonry.

Milwaukee’s REDLINK Intelligence technology integrates full-circle communication between tool, battery and charger.

Milwaukee Electric Tool Corp., a Brookfield, Wisc.-based subsidiary of Techtronic Industries Co. Ltd. (TTI), is a manufacturer of heavy duty power tools. www.milwaukeetool.com www.plantmagazine.ca/rsc/ 14

120 positions for every full rotation.

rATcheTs iN TighT sPAces The GearWrench 120XP ratchet from Apex Tool Group features 120 positions for every full rotation to turn fasteners with a swing arc as little as three degrees thanks to its double-stacked Pawl technology. This makes it easier to reach fasteners in extremely tight spaces, and a teardrop-shaped head has a low profile to improve versatility.

Apex, a manufacturer of hand tools based in Sparks, Md., says the ratchet exceeds ASME (American Society of Mechanical Engineers) strength requirements. The finish is easy-to-clean, full polish chrome.

The ratchet comes in 1/4-, 3/8- and 1/2in. sizes. www.gearwrench.com www.plantmagazine.ca/rsc/ 15

coMPreSSeD Air

blowoff, cooling and drying applications in industrial, high temperature, food and corrosive environments.

The CE-compliant Pico provides a narrowly focused air pattern that measures only 1.3 in. in diameter when positioned 6 in. away from the target surface. High amplification of entrained airflow and a blowing force of 5 oz. are achieved with a minimal air consumption of only 4.9 scfm at 80 psig. It meets OSHA standards for dead-end pressure and noise requirements to boost operational safety.

They’re also available in 1/8 NPT male compressed air inlets and PEEK plastic for non-marring protection.

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

PUMPS PumP is fLoW TighT uP To 14.5 Psig KnF FMM80 solenoid-driven diaphragm metering pumps dispense liquids accurately in adjustable volumes between 30 ml/stroke and 80 ml/stroke. the pump is driven with single impulses to dispense discrete micro-volumes. it’s also used with a pulsed signal at frequencies up to 10 Hz for continuous flow rates up to 48 ml/min. in industrial dosing systems, water treatment and fuel cell applications.

An integrated noise-suppresion system keeps the system running quiet. the pump, flow-tight in both directions at pressures up to 14.5 psig, is stable against varying pressures and sustains high repeatDispenses liquids ability throughout its lifetime. A diaphragm and valve system boosts accurately. reliability and performance.

KnF is developer of diaphragm pumps based in Germany. it has north American support operations in trenton, nJ. www.knfoem.com www.plantmagazine.ca/rsc/ 17

www.plantmagazine.ca/rsc/ 16

Canadian Manufacturing Technology Show

EXPECT

MORE Canada’s Premier Manufacturing Event!

Back in the Perfect Location!

Expect more from CMTS 2013 than any previous edition. We’re building the MUST-ATTEND North American manufacturing event for 2013. With more audience, more social and networking activities, more live demos and more innovation and influence.

Meet OHSA standards.

TiNy NozzLes PAck A PuNch EXAIR’s Pico super air nozzle is one of the smallest at 5 mm and made for precision blowoff with a directed high volume, high velocity airflow.

The nozzles project less than 1/2-in. past the mounting surface, allowing installation in tight spaces. Made from Type 316 stainless steel, they’re made for

www.plant.ca

24-25-PLNT.indd 25

PLANT 25

ThE INTERNATIONAL CENTRE – MISSISSAUGA, ONTARIO

SEPTEMbER 30 – OCTObER 3, 2013 Sign up to attend, exhibit, or sponsor today!

PRODUCED BY:

Visit CMTS.CA or call Julie Pike, Event Manager 1-888-322-7333 ext 4471. www.plantmagazine.ca/rsc/ 119

13-02-27 4:02 PM

Only one reel increases workplace safety and efficiency.

CIEN Controls

Electrical

I/O modules transfer data fast

Mesh grips protect cables

Transfer industrial data faster with Advantech’s PROFINET remote I/O modules, which are resistant to interference thanks to embedded 2,500 VDC isolated protection. Daisy chaining connections boost transfer times and provides a more scalable system with fewer wires to avoid interference typically found in process Resists interference. control and other industrial automation applications.

The modules are mountable via DIN-rail, wall, and piggyback configurations. Advantech’s ADAM/APAX. NET utility is also included with all modules for configuring, setting and testing the modules via ethernet connectivity.

Advantech Corp. is a developer of industrial automation technologies based in Cincinnati, Ohio. www.advantech.com/ea

Our dedicated dealers know your business and get it right the first time.

Cooper Wiring Devices is a manufacturer of industrial electrical products based in Peachtree City, Ga. www.cooperwiringdevices.com www.plantmagazine.ca/rsc/ 20

Materials Handling

Controllers handle extremes

Columbus McKinnon Corp.’s Yale Global King electric wire rope hoists are now explosion proof.

The manufacturer of material handling products based in Amherst, NY says the explosion proof options include special enclosures, metal clad electrical cable and sealed fitting, intrinsically safe control stations and explosion proof rate motors.

They’re available in a variety of capacities with both underhung and top-running trolleys, and recommended for Divison 2 and Class 1 (group B, C & D) applications. www.cmworks.com

Arrow Hart X-Switch motor controllers and disconnects from Cooper Wiring Devices reduce downtime, boost safety and code compliance in applications exposed to frequent washdowns, preventing penetration from external contaminants.

There are a variety of input/output options, such as breather drains and pre-drilled holes. X-switch also handles extreme temperatures, chemicals and corrosive elements.

The motor controllers, made with NEMA 4X stainless steel enclosures, are splash zone certified by the National Sanitation Foundation (NSF). A highvisibility red handle padlocks to meet OSHA lockout/ Switch options up to 60 A. tagout requirements.

Cooper Wiring Devices, a manufacturer of electrical wiring devices based in Peachtree City, Ga., says the controllers are available in 30- , 40- and 60-A switch options. www.cooperwiringdevices.com

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

Hannay Reels delivers.

• All reels built to spec • Most reels ship within a week

Corrosion resistant.

www.plantmagazine.ca/rsc/ 18

Made in U.S.A.

• Protect hoses and cables from damage • Rugged durability for lifetime value

Arrow Hart wire mesh grips from Cooper Wiring Devices relieve stress, pulling and support to protect cable in harsh industrial environments.

Available in a range of styles and sizes, the grips connect cable enclosures and industrial equipment. They’re made from stainless steel mesh with an aluminum body, which boosts corrosion resistance. Double or singleweave construction absorbs direct force on termination points to resist flexing and binding in situations where the cable or cord is exposed to moisture or frequent washdowns.

Available in underhung and top-running trolleys.

Explosion-proof rope hoists

Automation Software reduces errors and configuration times

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

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IntelliCENTER Integration Assistant and IntelliCENTER Energy applications from Rockwell Automation’s Allen-Bradley line accelerates configuration time and enhances end user data-driven energy decisions.

The assistant integrates IMotor Control Centers (MCCs) into RSLogix 5000 software, which reduces programming time by automatically adding AllenBradley devices to the I/O tree.

Existing integration features create controller tags and IP address configuration in RSLogix 5000 software to reduce errors and configuration times.

Rockwell, a developer of industrial automation equipment based in Milwaukee, Wisc., says the assistant provides real-time, device-level information to boost productivity and commissioning time. The software is also pre-configured to FactoryTalk EnergyMetrix for intelligent motor control devices in the MCC, including variable speed drives, overload relays and SMCs. Enhances www.rockwellautomation.com data-driven energy decisions. www.plantmagazine.ca/rsc/ 22

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Products and equipment << Technology www.wenglor.com

ligHting Leds sPOT sTeeL ImPerfecTIONs

Now. For you.

areamaster green led luminaires from appleton electrical Products spot otherwise invisible flaws, such as hairline cracks or blistering. appleton, a manufacturer of industrial lighting fixtures and electrical fittings, says the fixtures are especially effective in automotive manufacturing plants. the leds, made to withstand high levels of heat and humidity, are rated neMa 4X and iP66. an enclosed diecast aluminum housing is corrosion-resistant. the lens is made of thermal-shock, impact-resistant glass Withstands harsh environments. for added protection. leds are shock and vibration resistant, produce minimal heat and accept voltages from 120-277 VaC, 50-60 Hz and generate up to 8,075 lumens. external optics aren’t required, so the system runs at efficiencies as high as 80% to concentrate more light on the inspection area with less spillage. the company, part of emerson industrial automation, is headquartered in rosemont, ill. it has Canadian support operations in elmira, ont. www.appletonelec.com

Everywhere.

Revolutionary real-time technology thanks to integrated PROFINET protocol Consistent Ethernet communication right on up to the fieldbus level Super-fast data transfer and simultaneous access to process and parameter data Flexible, individualized component networking

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Hoses hOses bOOsT OPerATOr sAfeTY Parker Hannifin’s PTFE polypropylene braided hose assemblies handle applications where corrosive chemicals attack stainless steel, are 20% lighter than traditional braided hoses and are more flexible to ease work in tight spaces.

The braid is plastic and will not conduct electricity, reducing the risk of operator burn and electrocution.

Electricity resistant.

Sizes range from 1/4 to 4 in. O.D. Hoses operate in temperatures up to 100 degrees C. Parker Hannifin is a manufacturer of motion and control technologies based in Mayfield Heights, Ohio. www.parker.com www.plantmagazine.ca/rsc/ 24

CirCuit ProteCtion www.wenglor.com

recePTAcLe PrOTecTs cIrcuITs

Meltric Corp.’s receptacle/wall box combination with integral circuit protection combines the safety of a pre-wired Meltric DSN Series switch rated receptacle with the convenience of local circuit protection.

The horsepower-rated DSN receptacle, which includes a dead-front safety shutter www.plantmagazine.ca/rsc/ 121 for protection from live parts and arc flash, is premounted to the box and wired to the circuit protection device for easy installation.

The 20- or 30-A fuseholder-equipped models use DSN Decontactor switch-rated plugs and receptables in applications where higher fault curNew dates! June 4-6, 2013 rents are not already Edmonton Expo CEntrE, northlands protected. Circuit breaker-equipped models provide overload protection, and MarketplaCe For include Eaton WMZT ManuFaCturing miniature circuit breakers (UL489). The 60 A models use Eaton even more opportunities to network, learn, WMZS supplementary and grow your business. protectors (UL1077).

All models are available with • Job shop night: a special evening for • engaging Conference line up: • tech Bar: bar-style interactive independent job shops who can’t get away comprehensive education in a education sessions located on or without a viewing window in during regular business hours theatre on the show floor the show floor painted NEMA Type 4 and 12 mild Pre-mounted to steel, or NEMA Type 4, 4X and 12 ease installation. interested in exhibiting at WMts? Contact us at 888-322-7333 ext. 4447. stainless steel enclosures. visit wmts.ca Hurry! WMTS is already over 70% SOLD OUT. Meltric Corp. is a manufacturer of industrial plugs and receptacles based in Franklin, Wis. Produced by: event Partners: www.meltric.com

Canada’sFaCe-to-FaCe solutions

Western

NEW IN 2013

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www.plant.ca

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CIEN FORKLIFTS

Energy efficient lifting

Four-directional Combilift C8000.

Handle long loads easily Combilift has made a name for itself over its 15-year existence serving the longload market with its unique forklifts.

The Irish manufacturer of Combilifts based in Monaghan, employs its own three-wheel design that changes the vehicle’s direction to move forward, backward and side-to-side by shifting a lever.

Long loads (for example, piping or lumber, or even prefabricated construction components), are lifted and carried low rather than high for greater stability.

Combilifts manoeuvre in tighter spaces and eliminate multiple handling of goods by easily passing through doorways that are narrower than the loads they carry.

The trucks are powered by either a fuel-efficient LPG or diesel engine.

The C8000 model has an 8,000 kg (17,300 lb.) capacity and handles lift heights of up to 6.5 m. Custom attachments are available. www.combilift.com

Cat Lift Trucks’ EC22N2 – EC30LN2 electric four-wheel cushion tire lift trucks handle a variety of applications, such as food and beverage, textile, general warehousing and logistics.

The 4,500 to 6,500 lb. vehicles include 36- to 48-V options.

The lift trucks are equipped with threephase AC technology to deliver quick acceleration and lift speeds. Separate drive, hydraulic and steer motors use energy efficiently.

Hydraulic levers located next to the seat allow the operator’s arm to rest in a natural, relaxed position in a larger com-

inspection and servicing.

Options include LED work lights, fourstage “quad” masts, sideshifters and foot directional control. www.cat-lift.com www.plantmagazine.ca/rsc/ 27

Nomad lowers emissions Premium operator ergonomics.

partment space, with a larger floor board, reduced steering wheel size and a threeway adjustable full-suspension seat.

And easy access to major components reduces the time needed for periodic

Disc brakes for wet conditions Three-wheel FB16PNT-FB20PNT electric forklifts from Mitsubishi Forklift Trucks are equipped with wet disc brakes for improved performance in wet or corrosive environments.

Electric power steering is energy efficient, and an ergonomic compartment helps the operator remain productive throughout the entire shift.

The compact 3,000- to 4,000 lb. capacity units are designed for operation inside or outdoors in crowded or condensed work areas and are powered by heavy duty AC drives and hydraulic motors, with PM-1000 controllers.

Motors are sealed to protect them from contaminants, such as dust and moisture, and smart technology enhances control: as the forklift’s steer angle increases, the Controlled Cornering Speed feature progressively reduces speed.

Options include pneumatic tires and a full-suspension seat, a cold storage modification for forklifts operating in refrigerator or freezer applications, and quad masts with sideshifters.

Mitsubishi Forklift Trucks are manufactured and distributed by Mitsubishi Caterpillar Forklift America Inc. (MCFA). www.mit-lift.com www.plantmagazine.ca/rsc/ 29

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Nissan Forklift Corp.’s compact Platinum II Nomad lift truck operates inside or outside on improved surfaces riding on solid pneumatic tires.

It’s powered by Nissan’s K21 “ultralow-emission” engine and is equipped with a standard seat-actuated operator presence system that automatically locks lifting and tilting when the operator exits the truck. A range of optional equipment offerings are available to customize the Nomad Series forklifts for specific applications and preferences.

Operates inside or outside.

Nissan Forklift, based in Marengo, Ill, is a manufacturer of materials handling equipment. www.nissanforklift.com www.plantmagazine.ca/rsc/ 28

Uptime, all the time ®

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

Keep Running with LAPP SKINTOP ® glands protect your cables.

• • • •

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

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

Scan, click, or call.

877-799-5277

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March 2013

13-03-01 2:17 PM

Industrial Literature Reviews cieN

>> Plantware

LIND EQUIPMENT LAUNCHES 2012-2013 CATALOGUE

Includes alarm analysis, diagnostics.

cAPTUre reAL-Time iNdUsTriAL dATA FAST/TOOLS R9.05 SCADA, the latest release of Yokogawa Electric Corp.’s web-based real-time management and visualization software, adds several new features that will aid industrial operators in oil and gas, petrochemicals, chemicals, renewable energy, power, pulp and paper, pharmaceuticals, food, iron and steel, waste, and water supply and wastewater treatment.

The Collaboration/Decision Support Solution creates an environment for the real-time capture of key operational, maintenance and business information from main production facilities. Dashboards deliver cross-referenced information on business performance factors, plus data on energy efficiency, carbon emissions, and direct cost savings that will help determine the effectiveness of efforts to reduce energy consumption and waste, and monitor compliance with environmental standards.

Alarm System Performance Analysis eases the defining of key performance measurements, analyzing alarm system behaviour, and presenting this from different angles. It provides guidance on improvements that will create a sophisticated alarm management and analysis environment compliant with EEMUA 191 and ISA/ANSI 18.2 standards.

An HTML5 web environment provides diagnostics, alarms, and process graphics over the cloud to tablets and smart phones for anytime/anywhere access with all appropriate authorization and security through internet browsers.

A remote gateway station delivers integrated automation for a corporate-wide automation strategy across multiple domains and geographies.

An OPC Unified Architecture (UA) client provides a cohesive, secure and reliable cross-platform framework for access to real-time and historical data and events.

And the new release delivers full support for the IEC61850 MMS specification, an emerging open standard for the design of electrical substation automation.

Yokogawa Corp. of America is a manufacturer of industrial instrumentation based in Houston. www.yokogawa.com/us www.plantmagazine.ca/rsc/ 30

redUce VALVe eNgiNeeriNg Time Nelprof 6, the latest version of Metso’s valve sizing software, has two new calculation modules that select intelligent automated on/off and emergency valves. It applies state-ofthe-art tools that evaluate special safety requirements, such as an actuator-sizing safety factor or a complete valveassembly safety-integrity level.

Performance analysis studies valve controllability in a closed loop. The module also includes multi-phase flow sizing plus noise and cavitation prediction analysis.

Use the on/off valve-sizing tool in the engineering phase to select all Metso metal- and soft-seated on/off valves with advanced but easy-to-use actuator sizing, including adjustable safety factor and torque selection parameters. Documentation and sizing revisions are also possible in the later phases of the selection process.

A SIL module allows for both 1oo1 and 1oo1D PFD (Probability of Failure on Demand) final element calculations that take into account the use of a valve, an actuator and the partial-stroke test device Neles ValvGuard.

One or several pneumatic components can also be brought into the calculation.

Metso is a global supplier of sustainable technology with Canadian offices in Alberta, Ontario and Quebec. www.metso.com www.plantmagazine.ca/rsc/ 31

www.plant.ca

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Lind Equipment continues to innovate with portable LED lights by adding the LE970LED 50W LED portable flood light, and Lind’s cord reel offering now includes heavy-duty and weatherproof cord reels with up to 12 conductors and 80 ft. of cord. www.lindequipment.net Lind Equipment www.plantmagazine.ca/rsc/125

REFERENCE FOR ROTATING UNIONS An updated catalogue for designers and users of coolant unions for machine tool, machining center, and transfer line applications.

This comprehensive reference guide offers detailed information for rotating union selection, installation, and maintenance, along with expanded product information. www.deublin.com/catrequest Deublin www.plantmagazine.ca/rsc/ 126

SUPER AIR WIPE TO BLOW, DRY, CLEAN AND COOL EXAIR’s Super Air Wipe™ is ideal for blowoff, drying, cleaning and cooling of pipe, cable, extruded shapes and hose. It delivers a 360° airstream that adheres to the surface of the product passing through it. The split design makes it easy to clamp around the surface, eliminating the need for threading.

Many sizes are available. www.exair.com EXAIR Corporation www.plantmagazine.ca/rsc/ 128

DUST COLLECTORS NEW - FULL LINE LITERATURE GUIDE This impressive NEW guide outlines dozens of N.R. Murphy dust collectors, installations, capacities, styles and models. A must for any reference library. N.R. Murphy Limited has been in business over 70 years and has thousands of satisfied customers.

“Dust Collectors are all we do; so get it done right the first time. Just Ask the Experts.” www. nrmurphy.com N.R. Murphy www.plantmagazine.ca/rsc/ 129

HANNAY REELS OFFERS STAINLESS STEEL REELS CATALOGUE

INDUSTRIAL VACUUM CLEANING SYSTEMS FROM VAC-U-MAX

Hannay Reels offers a fourcolor catalogue featuring it’s stainless steel hose reels designed for washdown, chemical transfer, potable water, food ingredient transfer, fuel, and fire protection applications. The catalogue includes narrow-frame reels for confined spaces, compact models for pressure washing, and rugged, heavy-duty reels. hannay.com Hannay Reels www.plantmagazine.ca/rsc/ 127

VAC-U-MAX is a premier manufacturer of industrial vacuum cleaning systems for production lines and other dust-intensive areas. With a VAC-U-MAX heavy-duty industrial vacuum cleaning system on site, both your capital equipment and your employees will be safer and cleaner. www.vac-u-max.com VAC-U-MAX www.plantmagazine.ca/rsc/ 130

Index of Advertisers RS# Advertiser Page # 30 .................................................... AME ............................................................................... 30 133 .................................................. Automation Direct .......................................................... OBC 107 .................................................. BrecoFlex ........................................................................ 11 110 .................................................. Creform .......................................................................... 15 108 .................................................. Coxreels ......................................................................... 15 118 .................................................. Design and Manufacturing ................................................ 24 104 .................................................. Desjardins ......................................................................... 6 109 .................................................. DV Systems ..................................................................... 15 105 .................................................. Exair ................................................................................. 7 132 .................................................. Flir ................................................................................ IBC 106 .................................................. Gordon R Williams ............................................................. 9 123 .................................................. Hammond ....................................................................... 28 120 .................................................. Hannay Reels .................................................................. 26 124 .................................................. Lapp Canada ................................................................... 28 102 .................................................. Lind Equipment ................................................................. 5 116 .................................................. NR Murphy ...................................................................... 23 101 .................................................. Omega ...........................................................................IFC 103 .................................................. Reelcraft ........................................................................... 5 112 .................................................. Rittal ........................................................................ 16&17 106 .................................................. Rousseau .......................................................................... 8 117 .................................................. Sealeze ........................................................................... 23 115 .................................................. Schunk ........................................................................... 23 113 .................................................. SEW ............................................................................... 19 119 .................................................. SME - CMTS ................................................................... 25 121 .................................................. SME - WMTS ................................................................... 27 114 .................................................. ViCas .............................................................................. 23 122 .................................................. Wengler .......................................................................... 27

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Departments

>> Postscript

Don’t count on a lift from abroad

BY JOCK FINLAYSON

C

currency and single monetary policy, are in recession and remain vulnerable to the banking and sovereign debt flare-ups that have plagued the region for more than two years. The biggest risks lie in Greece, Spain and Italy. And the UK, which is not part of the common currency but has extensive commercial links with the euro zone, is struggling to avoid a triple-dip recession.

Amid the gloom, there is some good

ametoronto.org

anadian businesses should be watching developments in the US, EU and Asia. Prospects through this year depend heavily on how events unfold in these regions, which account for the lion’s share of international economic activity.

Since Europe drives more than onefifth of global consumption, economic conditions there matter to other nations, including Canada. Collectively, the 17-nation euro zone, with its common

Collectively, the 17-nation euro zone, with its common “currency and single monetary policy, are in recession…

”

news coming from the old continent. In particular, the European Central Bank’s commitment to keep interest rates low and to purchase the sovereign debts of stressed euro-zone member states has calmed financial markets. Painful but necessary policy reforms are being implemented and European leaders have made progress moving to a banking union.

Although challenges are forbidding and the outlook for near-term growth is poor,

Share•Learn•Grow OCTOBER 21-25, 2013

SM

the euro zone will likely limp through 2013 without unravelling or succumbing to a full-scale financial crisis.

After notching up a real GDP gain of 2.2% last year, the US will stay in the slow lane for a while yet, despite tangible improvements in job creation and the housing sector. After an epic slump, housing prices have bottomed out and are now climbing in many urban markets. Residential investment is on the rise, with housing starts on track to reach 900,000 this year – a trend that is buoying Canada’s lumber industry.

American households have taken steps to repair their once stretched balance sheets, aided by a central bank that’s holding interest rates at rock bottom levels and providing vast amounts of liquidity to the financial system.

However, the economy is up against weaker exports and an extreme form of political dysfunction in Washington DC. The 2012 election resolved little, leaving an increasingly strident Republican Party in command of the House of Representatives while the Democrats retain a slim majority in the Senate. Tellingly, the legislative branch of the US government hasn’t been able to agree on and pass a complete budget for the past three years.

Upside potential

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The best guess for 2013 is that US economic growth will continue to hover around 2%, but there is upside potential if current political and policy uncertainties dissipate over the course of the year.

The final piece of the external puzzle is Asia, home to 60% of the world’s population. The last half of 2012 saw a drop in economic activity in Japan, coupled with slower growth in China, India and several other Asian markets.

The new government in Tokyo has pledged to boost the economy through additional fiscal stimulus and monetary easing, while the economic situation in China appears to have stabilized, lessening the likelihood of a “hard landing” scenario and prompting many forecasters to upgrade their growth projections for 2013-14. And several other East Asian economies, such as South Korean and Indonesia, expect stronger growth in the coming months.

Add it all up, and the global economy is set to expand by 3% this year. Some positive momentum may build over the second half of the year as underlying economic conditions in the US improve, China continues to gain traction and Japan’s economy stops shrinking. Still, Canada can’t count on getting much of an economic lift from “abroad” in 2013.

Jock Finlayson is executive vice-president of the Business Council of British Columbia. This column is distributed

by Troy Media in Calgary. Visit www. troymedia.com.

With many thanks to our Patron/Cornerstone Sponsors and Collaborating Partners

Comments? E-mail jterrett@plant.ca.

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Find trouble before

it finds YOU! FLIR IR Windows

Keeping the Brotherhood Safer

• Broadband Crystal Lens • Easy PIRma-Lock™ Installation • Quick Access Permanent Hinged Cover • Compatible with All Thermal Cameras • Now CSA and ULc Certified

Get details on all the high performance thermal imaging you ever desired at www.flir.ca or call 1-800-613-0507 x24 / x25 today.

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Quality – Innovation – Trust www.plantmagazine.ca/rsc/ 132

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• Lots of program memory • Fast program execution • Easy-to-use instruction set • Integrated Ethernet on the CPU • Fast I/O for counting and motion applications • Easy-to-use communications

The new Do-more H2 series CPUs leverage industry- proven I/O hardware to create an incredibly powerful PLC - at an incredible bargain.

Program Do-more with the completely new - and FREE - Do-more Designer software. Download online - with the built-in simulator, you don’t even need hardware to try it out.

The popular H2-DM1E CPU includes: H2-DM1E $399

(1) USB port for programming, (1) full-duplex serial port, (1) Ethernet port

Or, choose a Do-more starter kit to get going with a simple working system, plus a coupon for 30 days free online video training.

• Over 1M bytes total memory (includes program, data and documentation • Program/monitor/debug over any embedded communication port.

• Supports up to 256 I/O locally and thousands more with optional Ethernet remote I/O. • Supports inexpensive serial port expansion for connection to bar code readers, printers, etc • H2-DM1 CPU (no Ethernet port) also available, for $299

H2-DM1E-START $626 H2-DM1-START $536

And each Do-more CPU comes with a coupon for a 30-day free trial of online video training.

Starter Kit

with H2-DM1E CPU with H2-DM1 CPU

So visit www.do-moreplcs.com for the details, watch overview videos, and download the free software to take it for a spin.

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Our shipping policies make it easier than ever to order direct from the U.S.!

Free standard shipping is available for orders totaling over $49 U.S. (except for orders which require LTL shipping, see Web site for details). Also, save on brokerage fees when shipping standard ground to Canada - you can choose to allow AutomationDirect to nominate a broker for your shipment for parts shipping via standard ground. This can save you big on brokerage fees.

Go online or call to get complete information, request your free catalog, or place an order.

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