Canadian Plant

$5.50

Volume 70, No. 05 September/October 2011

THORDON BEARINGS

www.plant.ca

Thordon’s vice-chair Anna Galoni looking out from the inside of a marine bearing.

PHOTO: STEPHEN UHRANEY

PM 40069240

Cleaning up the marine industry

1-PLT05.indd 1

HIGHLIGHTS Bribery and what exporters need to know Compressed air: Are you blowing it?

A case for reinventing maintenance Refresh your process improvement Nano-security and the butterfly effect 11-10-19 11:38 AM

Delivering on my unique freight needs. Check.

Give your business a competitive advantage with Purolator Freight®, offering premium services, including individual skid-level tracking for your less-than-truckload (LTL) shipments. Our suite of specialized online tools gives you maximum control over your orders, helping you effectively manage your inventory in transit and the needs of your customers with greater precision. With the resources, support and coast-to-coast coverage of Canada’s largest courier company, we will help take your business wherever it needs to go.

NEW – Purolator Freight now available on ESO, our online shipping solution.

For more information about Purolator Freight, visit purolator.com/freight

purolator.com/freight

FULL PAGE ADS.indd 2

11-10-04 11:50 AM

Editorial

Wanted: Innovation with payback

B

y all accounts Canada is pretty well off economically and there’s lots of wealth floating around yet we are one of the least productive among peer nations in the Organisation for Economic Co-operation and Development (OECD). In fact, for the past 10 years we’ve occupied a spot in the bottom quarter.

A recent Deloitte report on our productivity gap and what to do about it notes we produce just 86% of the output our US peers generate, and when baby boomers start exiting the workforce, only strong growth in productivity will allow us to maintain the standard of living we presently enjoy.

Innovation is key to productivity, yet we are sliding on that measure too. Defining innovation as the ability to turn knowledge into new goods and services, the Conference Board of Canada in its annual global analysis lists Canada as a solid D performer out of 17 peer nations.

Several studies and reports rank Canada’s innovation indicators and the general diagnosis is that we are good at some things but doing only middling or very poorly in many other important areas, particularly taking an idea to commercialization.

For example, we have a solid knowledge base and there’s cool R&D going on in Canadian universities; however, as Deloitte’s report notes, while Canada may be good at generating basic research, it’s “dismal” at producing new patents.

We’re also suck at producing trademarks per million of population, one of the indicators dragging down our Conference Board grade. Canada is second to Japan…for last place.

Trademarks indicate innovations that have made it to commercialization. Commercialization depends on adequately funded private sector R&D. Canada offers enticing R&D incentives based on 0.24% of GDP, which Deloitte says are among the most generous in the world, yet private sector R&D was but 1% of GDP (2008), the lowest business to government support per dollar in the OECD. So what’s the problem? The analysts are scratching their heads on this one, but several factors stand out. In manufacturing, most companies fall into the small and medium category, and those who would like to spend money on innovation are having trouble getting capital.

But Canadian entrepreneurs are also more risk adverse than their peers in the US. Deloitte looked at risk tolerance on both sides of the border and discovered – based on actual decisions made – Canadians were 18% less tolerant of risk than Americans and they were more dependent on government R&D support.

Unfortunately, there’s also a lot of Canadian innovation leaving the country, according to a new report by the Canadian International Council (CIC). Rights and Rents, Why Canada Must Harness its Intellectual Property reports that from 2006 to 2010, 137 venture-backed start-ups changed hands and almost 60% of them went to foreigners.

And it appears Canadian companies spent $4.5 billion more buying intellectual property (IP) on world markets than they earned selling or leasing it, according to a World Bank report. The US has an IP surplus of $65 billion.

The Conference Board says that countries with highest overall scores develop national strategies around innovation. This needs to be a priority for the Harper government.

Canadians would like to shake off the long-held perception that this is a country where we make our livings hewing wood and digging stuff out of the ground for others who add the value to create more wealth and higher wage jobs. If we want the prestige of being “high value”, we have to do more to create the value, rather than relying on others to handle the thinking and doing for us.

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

Vol. 70, No. 05, September/October, 2011 Publisher: Tim Dimopoulos 416-510-5100 TDimopoulos@canadianmanufacturing.com Group Editorial Director: Lisa Wichmann 416-510-5101 LWichmann@canadianmanufacturing.com Editor: Joe Terrett 416-442-5600 ext. 3219 JTerrett@plant.ca Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 KSmith@plant.ca Junior Web Producer: Jessica Mirabelli 416-442-5600 ext. 3227 JMirabelli@canadianmanufacturing.com District Sales Managers: Amanda Bottomley 416-859-4527 ABottomley@canadianmanufacturing.com

www.plant.ca

3-PLT05.indd 3

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 Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca Circulation Manager: Diane Rakoff 416-510-5216 DRakoff@bizinfogroup.ca Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly BIG MAGAzINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton Canadian PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd.

16

17

Features

>> TRENDS 9

SummIT REPoRT CME and NAM are uniting to deal with common challenges and make North American manufacturing stronger. ouTLook Global economic turbulence is slowing our return to pre-recession production levels. oIL SANdS What are the big risks to oil sands success? Rising costs and labour shortages, says an Ernst & Young report.

>> SUSTAINABILITY

10 SuSTAINAbLE ShIPPINg Thordon Bearings builds its global business making rudder and shaftline products that use seawater for lubrication.

11 gREEN mANuFACTuRINg Look outside your company along the supply chain for big sustainability gains.

>> MANAGEMENT

12 ExPoRTINg Bribery and corruption: it’s a global problem but governments are cracking down. Mark Drake offers advice to global traders.

13 PRoCESS ImPRovEmENT Refresh your process improvement efforts and keep the benefits flowing. mARkETINg Want to make the sale? Focus on the buyer's issues and concerns.

>> OPERATIONS

14 SAvINg ENERgy Six tips that will save energy and money while operating your compressed air system.

15 mAINTENANCE Manage assets more effectively by improving performance.

16 How modern maintenance brings value to manufacturing and improves plant productivity.

17 ThINk LEAN Lean tools that will add value to the sales strategy.

>> INNOVATION

17 gLobAL RANkINg Why Canada’s global standing is slipping, and what to do about it.

18 FREIghT A new semi trailer design will help lower transport costs and CO2 emissions.

19 AuTomoTIvE Researchers are focusing on fuel-efficient diesel engines.

>> TECHNOLOGY

20 NANo oPTICS Nanotech Security has developed an authentication technology that will stymie counterfeiters across several industries.

departments 4 Industry View 6 Events 7 PLANT Pulse

8 Labour Relations 21 Product Showcase 22 Postscript

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 1-866-236-0608 (English) or 1-866-236-2125 (French).

SuBSCrIPTION PrICE: Canada $69.00 per year, Outside Canada $141.00 US per year, Single Copy Canada $5.50. Plant is published 6 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Contents of this publication are protected by copyright and must not be reprinted in whole or in part

20

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 Canadian PLANT or BIG Magazines LP. Contents copyright© 2011 BIG Magazines LP, may not be reprinted without permission.

Canadian PLANT receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. Canadian 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.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund CPF for our publishing activities.

ISSN 1922-5261

Canadian PLANT 3

11-10-07 2:40 PM

departments

>> Industry View

>> Bulletins

$6.1m for Two NB miLLs

fenomax is getting $176,000 in repayable funding through a Canada Economic Development program for the acquisition of equipment and the expansion of its Rivière-Rouge, Que. factory.

Fenomax, a manufacturer of PVC windows, also sells steel doors. The new equipment and expansion will put Fenomax in a position to make the doors itself. h2o innovation inc.’s water technologies business unit has signed omya international Ag, a global supplier of industrial minerals, to be its sales rep in Africa and the Middle East. Professional water Technologies supplies in reverse osmosis specialty chemicals and membrane forensics services. H2O Innovations is a Quebec City-based manufacturer of water treatment systems. ever energy Co. Ltd., a Taiwanese manufacturer of high efficiency solar photovoltaic cells has signed on with day4 energy in Burnaby, BC to use its Stay-Powerful technology to manufacture Day4 DNA cells.

Day4’s tech eliminates high-temperature soldering and collects solar energy more efficiently than conventional cells. innovative Composites international, a Toronto-based developer and manufacturer of advanced composite materials, has signed a six-year lease for a manufacturing facility in Orangeburg, SC where it will set up shop to produce housing panels.

The company was enticed by a $17 million incentive package offered by the state. The plant is expected to create 300 jobs.

Bunge North America, the North American operating arm of Bunge Ltd., is increasing the capacity at its Fort Saskatchewan, Alta. canola processing plants, the second of four in Western Canada. The proposed project would more than double Fort Saskatchewan’s current capacity of 850 tonnes a day.

Pratt & whitney Canada, the Longueuil, Que.-based manufacturer of aerospace engines, is forming a joint venture with China Aviation engine holdings Corp. Ltd. that will be operated in Zhuzhou, Hunan province.

This new maintenance, repair and overhaul business, called Zhuzhou Tonghui Aero engine maintenance Co., will provide MRO services for civil-certified PT6A and PW100 series engines.

4 Canadian PLANT

4-6-PLNT05.indd 4

BionX CEO Manfred Gingl and Paul Gingl, vice-president of marine products, take the SeaScape 12 for an electrically assisted paddle on Lake Ontario.

PHOTO: BIONX

FREDERICTON: Two New Brunswick pulp and paper mills will receive $6.1 million in federal government funding to improve energy efficiency and generate renewable power.

Two projects in the community of Nackawic will get $3.7 million, through the Pulp and Paper Green Transformation Program.

The AV Nackawic mill is applying $1.1 million to increase its production of steam from renewable sources, and $2.6 million to improve energy efficiency while decreasing the amount of fossil fuels burned.

The Two Rivers mill in Edmunston will get $2.4 million to improve the energy efficiency of its recovery boiler operations.

The three projects are expected to generate enough renewable energy annually to heat more than 280 homes while saving enough energy to heat an additional 1,100 homes.

Greenhouse gas emissions will be reduced by nearly 2,800 tonnes annually – the equivalent to the emissions produced by nearly 760 cars.

BioNX LAuNChes e-Powered wATerCrAfT TORONTO: The world of hybrid vehicles sporting electrically assisted drive trains has been expanded to include leisure watercraft.

BionX International, an electric propulsion company established by former Magna vice-chairman Manfred Gingl and strategically aligned with Magna International, has unveiled its SeaScape 12 watercraft, which supplements passengers’ pedal power with 250 watts of electricity provided by two 12-volt batteries.

It’s the same kind of power assist applied by the company’s e-bike system, designed and manufactured in Aurora, Ont. and marketed globally.

“Nothing like the SeaScape 12 exists on the water today and we expect it to carve out a share of the $4.2 billion Canadians spend on recreational fishing, personal watercraft and human powered boating every year,” said Paul Gingl, BionX’s vice-president of marine products.

The 12-foot watercraft seats two adults and two children and its electric support allows it to silently reach a maximum sustained speed of 8.1 kilometre per hour for as long as four hours on a medium support level. The company says this greatly increases the range of the SeaScape 12 compared with human-powered watercraft.

First run of the SeaScape 12 will be limited to just 1,000 units next year and priced at about $6,000.

BionX says the craft, currently assembled at its Austrian facility, will eventually be built at the Aurora plant.

$80m ChemiCAL PLANT for sArNiA SARNIA, Ont.: BioAmber Inc. is building its first North American biosuccinic acid plant in Sarnia, Ont. The Minneapolis, Minn. chemical company currently produces bio-based succinic acid at a 3,000-tonne plant in France.

The $80-million Bluewater Biochemicals plant (a subsidiary of BioAmber), to be commissioned in 2013, will have an initial capacity of 17,000 tonnes of succinic acid.

Biosuccinic acid, a renewable, non‐toxic specialty chemical derived from plant and animal tissue, is used in a wide range of products from plastics used in consumer goods to food additives, fragrances, construction materials and salts that melt ice and snow.

“Sarnia has tremendous potential as a sustainable chemistry cluster. The unique combination of chemical infrastructure, skilled labour, educational facilities, competitive transportation costs and proximity to some of Canada’s richest agricultural land make Sarnia an excellent choice,” said Jean-Francois Huc, CEO of

BioAmber.

The company said it plans to double capacity in Sarnia by 2014 with the introduction of a next‐generation yeast being developed with Cargill Ltd., a Winnipeg-based producer of food and agricultural products and services.

BioAmber also plans to produce 1,4‐Butanediol (BDO) on the site using technology licensed from DuPont for the $4 billion global market.

The plan for the Sarnia plant is to produce 35,000 tonnes of biosuccinic and 23,000 tonnes of biobased BDO at peak capacity.

Ontario and federal government programs, and the Canadian Sustainable Chemistry Alliance provided grants and loans worth $35 million.

Mike Hartmann, executive vice-president of BioAmber, said the company looked at six US states and two provinces “very closely” after an initial screening. “Funding was a significant factor” in determining the plant’s location, he said.

The project’s first phase is suppose to generate 150 construction jobs and 40 plant jobs.

sAmsuNg soLAr PLANT for LoNdoN LONDON, Ont.: Samsung Renewable Energy Inc. has selected London, Ont. for a new solar module manufacturing plant as part of its $7 billion investment deal with the Ontario government.

The Korea-based company said the facility will produce “state-of-the-art” solar modules for use in Ontario and for export around the world, but it did not announce the amount of investment involved.

The plant will create 200 manufacturing jobs and 120 indirect jobs.

The company and its partners

have also announced plants for Windsor (wind towers), Tillsonburg (blades) and Toronto (inverters).

The terms of Green Energy Investment Act (GEIA) agreement with the Ontario government requires a $7 billion investment from Samsung and its partners to create 16,000 jobs and generate 2,500 megawatts of clean energy.

Samsung was allotted a $437-million incentive on top of the going rates for wind and solar power over 20 years, but in August it was revealed the incentive had been renegotiated down to $110 million.

CAsCAdes CLoses BurNABy miLL BURNABY, BC: Cascades Inc. is closing its Norampac containerboard mill in Burnaby BC, blaming high operating costs and a high dollar.

The Kingsey, Que.-based forest products company, which makes green packaging and tissue paper products, said nearly 100 employees would be affected by the Dec. 1 closure.

“This decision was made to mitigate the negative impact of several factors such as the strength of the Canadian dollar, as well as very high labour and recycled fibre costs,” said Marc-Andre Dépin, president and CEO of Norampac.

Depin said the mill’s profitability has been below expectations for a few years.

The mill has an annual capacity of 128,000 short tons. Norampac said it will redirect that production to other plants.

ford, ToyoTA shAriNg hyBrid sysTem DEARBORN, Mich.: Ford Motor Co. and Toyota Motor Corp. are going 50-50 on the joint development of a new hybrid system for light truck and SUVs. The companies, which say they will have a formal agreement in place by next year, intend to bring the best of their independently developed hybrid powertrain technologies to the new hybrid system.

They also agreed to complement each other’s existing telematics platform standards.

The rear-wheel-drive hybrid system will be based on a new architecture that will be integrated into each company’s vehicles. Each automaker will also determine the calibration

and performance dynamics characteristics of their vehicles.

Both companies now sell hybrid cars, but trucks need a different system with power to tow and haul heavy loads.

Hybrid trucks would help automakers meet stricter government fuel economy and pollution standards in the US and other countries. In the US, the fleet of new cars and trucks will have to average 56.5 miles per gallon by 2025, although trucks will have lower mileage targets.

The system would power some of Ford’s F-Series pickup trucks, the top-selling vehicle in the US, and it would run the Tundra, Toyota’s full-sized pickup truck.

September/October 2011

11-10-07 9:53 AM

New eNCANA sTATioN To fueL CNg fLeeTs

Industry View << departments

>> Careers

New eNCANA sTATioN To fueL CNg fLeeTs STRATHMORE, Alta.: Encana Natural Gas Inc. has opened a compressed natural gas (CNG) station in Strathmore, Alta. to serve its own natural gas-powered vehicles and to encourage others to switch to the cleanerburning fuel.

The station, near Calgary, will service 39 Encana vehicles at its Clearwater business unit using natural gas. The natural gas company has converted 128 of its 1,400-vehicle North American fleet to the fuel.

Starting next year, Encana Natural Gas, a subsidiary of Encana Corp. in Calgary, plans to offer the station’s fuelling services to other corporate fleets in the area, and to the public at a later date.

“Encana is leading by example as we convert our own vehicle fleets to natural gas

SICK, a manufacturer of sensors for industrial applications based in Minneapolis, Minn., has appointed Craig smith president of SICK Ltd. in Canada. He comes to SICK from Siemens Water Technologies, a subsidiary of Siemens Canada Ltd., where he was a senior leader.

Filling up at Encana’s new CNG station in Strathmore, Alta.

and help build the necessary infrastructure to support its expanded use as an alternative fuel to gasoline or diesel,” said Randy Eresman, Encana’s president and CEO. The Strathmore opening follows others during summer in Fort Lupton, Colo. and Sierra, BC. Encana Natural Gas also has an operational CNG station in Parachute, Colo. and Red River Parish, La., the latter of

PHOTO: ENCANA

which opened to the public in March.

Cars and trucks fuelled with CNG or liquefied natural gas (LNG) operate similarly to gasoline-powered vehicles.

There are currently more than 960 natural gas fuelling stations in the US servicing about 110,000 natural gas vehicles.

Canada has a network of approximately 80 public fuelling stations in five provinces.

mAChiNe sTriVes To CAPTure Co2 from The Air CALGARY: A company created from a University of Calgary-affiliated scientist’s research, and located on campus, is a finalist in a $25-million international competition to capture global-warming carbon emissions from thin air.

Carbon Engineering, a private firm created by David Keith, is the only Canadian finalist among more than 2,500 entries in the Virgin Earth Challenge, founded by Sir Richard Branson of the Virgin Group.

The Virgin Earth Challenge offers a $25-million prize for the first entrepreneur to establish a safe technology and commercial business to capture carbon from thin air. ‘Air capture’ is touted as one of a few technologies that can reduce CO2 emissions from the distributed and mobile sources, such as vehicles and airplanes, which emit more than half of greenhouse gases.

Keith is a fellow in the Institute for Sustainable Energy, Environment and Economy (ISEEE) and an adjunct professor of physics. He joined Harvard University as a professor Sept. 1, but maintains a strong collaboration with the university.

His work on climate science, energy technology and public policy spans 20 years. For his work, he was awarded first prize in Canada’s national physics prize exam, MIT’s prize for excellence in experimental physics, and listed as one of TIME magazine’s Heroes of the Environment in 2009.

Carbon Engineering is currently operating an air capture machine on campus, at a site near the physical plant. The 30-ton prototype is designed to test the key technical innovations behind the company’s air contactor designs. The machine will run several in the fall and continuously next summer to tally operational experience and run-time.

Design Engineering

Craig Smith

BioteQ Environmental Technologies Inc. in Vancouver has appointed Jonathan wilkinson CEO. He replaces the retiring Brad marchant.

Wilkinson comes to BioteQ, a wastewater treatment company, from Nexterra Systems Corp. where he was the senior vice-president of business development.

Lou Bruno has joined AECOM, a Mississauga, Ont.-based provider of professional technical and management support services for government and commercial clients, as vice-president of the minerals and metals practice. Prior to joining AECOM, Bruno held leadership positions in Lou Bruno management, strategy and business development with a professional service provider to the energy and resource industries.

Quantum Solar Power Corp., a photovoltaic technology developer based in Vancouver, has appointed steven Pleging CFO, president and a director of the company. Prior to founding solar energy market consultancy TeamSolar BV, Pleging was CEO of Ecostream International BV, a supplier of solar power systems in Europe.

John fenger has resigned from specialty metal producer Timminco Ltd. in Toronto as president and COO to “pursue other interests.” He will act as a senior adviser to Timminco for certain projects. Fenger is being replaced as president by the company’s general counsel and corporate secretary, Peter Kalins, who will continue to retain those roles. ian macLellan, founder and chief technology officer of solar tech developer ARISE Technologies Corp. in Waterloo, Ont. has ended his employment there. No reason was given and the company said there are no plans to replace him.

Gentec-EO USA Inc. in Lake Oswego, Ore., a subsidiary of Gentec Electro-Optics Inc. in Quebec City, has added Burt mooney to its team as sales development manager for the US. He comes to the laser measurement company from Ophir Optronics where he was the power/energy Burt Mooney meter specialist for the US.

>> PLANT Off-Site

Martin Hexspoor, general manager of sales and training at Alberta Western Materials Handling & Equipment Ltd. in Calgary, pauses with PLANT while visiting the Blarney Castle, in Blarney (near Cork), Ireland. The castle is home to the “Blarney Stone” of eloquence.

Appear in PLANT Off-Site and win $50! Have a photo taken of you reading PLANT in a remote, interesting or exotic location. Send photos with name, title, company, address and phone number to Off-Site, Canadian PLANT, 80 Valleybrook Dr., Toronto, Ont., M3B 2S9. Sorry, we can’t return them. Digital photos should be 5x7 inches and 300 dpi. Send them to JTerrett@plant.ca.

www.plant.ca

4-6-PLNT05.indd 5

VISIT SHOP.CSA.CA OR CALL (877) 493-9712

Canadian PLANT 5

11-10-07 9:53 AM

departments

>> Industry View

Interior view of a C-130J simulator.

PHOTO: CAE

CAe wiNs $100m miLiTAry CoNTrACTs MONTREAL: CAE Inc. has been awarded military contracts valued at more than $100 million that includes a subcontract to design and

manufacture additional C-130J simulators for the US Air Force.

Other contracts include support services for the Ger-

man Air Force’s Eurofighter simulators and an upgrade to Tornado flight simulators.

“The recent contracts for new C-130J simulators as well as the services and upgrade contracts in Germany are indicative of the opportunities we are now seeing as militaries look for ways to save money,” said Martin Gagné, CAE’s group president, military products, training and services.

The Montreal-based manufacturer of flight simulators and training provider said it will design and manufacture four C-130J weapon systems

>> Events

trainers to support the USAF’s Air Mobility Command, Air Combat Command, and Air Force Special Operations Command.

Three of the simulators will be HC/MC-130J WSTs and one will be a C-130J simulator.

Prime contractor GFD Gesellschaft für Flugzieldarstellung mbH, a subsidiary of Cassidian, has contracted CAE Elektronik GmbH to provide a range of maintenance and support services for the German Air Force’s Eurofighter full-mission simulators and cockpit trainers over the next four years.

global Clean energy Congress and exhibition wAde Canada, Ced Nov. 1-3, Calgary The latest innovations in clean energy technology from a global perspective, plus a three-day congress and exhibition with international leaders in clean energy.

Presented by WADE Canada and Calgary Economic Development (CED). Visit www. globalcleanenergycongress.com.

CANsmArT CiNde Nov. 2-4, montreal The Canadian Institute for NDE (CINDE) presents the CANSMART International Workshop on Smart Materials & Structures and NDT in Aerospace. Held in conjunction with the NDT in Canada 2011 Conference. Visit http://events.cinde.ca. fABTeCh 2011 sme Nov. 14-17, Chicago North America’s largest metal forming, fabricating, finishing and welding event, presented by the Society of Manufacturing Engineers (SME). Visit www.fabtechexpo.com.

Advanced Science.

Advanced Grease Lubrication.

mainTrain 2011 PemAC Nov. 21-24, Toronto A maintenance, reliability and asset management conference hosted by the Plant Engineering and Maintenance Association of Canada (PEMAC). Learn global best practices. Visit www.pemac.org.

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

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

Canadian innovation exchange summit CiX dec. 1, Toronto This one-day forum presented by the Canadian Innovation Exchange Summit (CIX) focuses on the ground-breaking technologies, products and services propelling the Canadian economy. Visit www.canadianinnovationexchange. com.

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

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

modeX sm 2012 mhiA feb. 6-9, Atlanta The Material Handling Industry of America (MHIA) presents the supply chain event for manufacturing, distribution and supply chain professionals. Educational sessions will run concurrently with more than 500 exhibitors showcasing material handling and supply solutions. Visit www. modexshow.com. fABTeCh Canada 2012 sme march 20-22, Toronto Canada is getting its own FABTECH show.

The Society of Manufacturing Engineers (SME), Fabricators & Manufacturers Association, Intl. (FMA) and American Welding Society (AWS) are launching the first-ever FABTECH Canada featuring the latest technologies, tools and trends with a special focus on fabricating technology.

Visit www.fabtechcanada.com.

Petro-Canada is a Suncor Energy business

TM Trademark of Suncor Energy Inc. Used under licence.

LUB 1989 (2010.03)

6 5877-PCS-P-033-2011-E.indd 1

4-6-PLNT05.indd 6

Production Artist:

September/October 2011

11-03-22 1:35 PM

MC

Date:

Mar 22, 2011

Revision #:

0

SC:

Y

JAN Kelley Marketing, its employees and agents (collectively referred to as “JKM”) shall not be held liable for any loss or damage

11-10-07 9:53 AM

Economy << Departments JULY SALES RISE

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

seasonally adjusted

SOURCE: STATISTICS CANADA

Current dollars 2002 constant dollars

J

J

2008

J

2009

J 2011

2010

Manufacturing had a better month in July: sales were up 2.7% to $46.7 billion. More than 75% of the gain came from Ontario manufacturers dealing in petroleum and coal products, primary metals and fabricated metals.

seasonally adjusted

82

76

SOURCE: STATISTICS CANADA

78 78.4

74 72 70 68

C

78.9 83.2

80

70.1 I

II III IV 2007

I

II III IV 2008

I

II III IV 2009

I

II III IV 2010

I II 2011

Second quarter industrial capacity use took a baby step down from 78.9% to 78.4%. Declines in manufacturing, notably transportation equipment, were behind the retreat.

EMPLOYMENT LEVELS IN AUGUST

thousands 16,600 17,600

SOURCE: STATISTICS CANADA

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

J

J

J

2008

GDP slowing as global financial turmoil grows PLANT STAFF REPORT

CAPACITY USE DECLINES

per cent 84

ECONOMIC DE VELOPMENTS AND TRENDS

J

2009

2010

anadian real gross domestic product (GDP) rose 0.3% in July after a 0.2% gain in June, but the number of main industrial sectors registering increases equalled those showing declines.

A TD Economics outlook report notes manufacturing led the way in July after three months of declines, followed by gains in wholesale trade and transportation services. Utilities and the public sector also recorded increases. Declines came from retail sales, mining, oil and gas extraction, construction, and finance and insurance.

But the bank noted Canada’s fortunes as a small open economy remain closely tied to developments abroad, so slow growth in the US, Europe’s ongoing debt crisis and financial-market jitters will likely “significantly constrain” Canada’s rate of expansion over the next several quarters.

Nonetheless, third-quarter growth is a positive, but businesses are aware Canada is not immune to the pressures arising from global economic turbulence so TD is expecting more modest economic growth in the fourth quarter.

Indeed, RBC Economics and other Canadian banks are advising that the Canadian economy will turn in slightly less robust growth this year, thanks to a contraction in the second quarter combined with softer growth in the EU and the US, but the good news is the economy will pick up the pace in 2012.

In its latest Economic Outlook, RBC projects growth to be 2.4% this year, down 0.8% from the June forecast.

The Washington-based International Monetary Fund’s (IMF’s) new outlook says Canada’s economy will remain positive but this year’s growth rate will be 2.1%,

falling to 1.9% next year.

TD Economics is forecasting similar growth for 2011 at 2.2%, and 1.9% next year.

All of these are down from previous forecasts and the official Bank of Canada expectations, which are 2.8% this year and 2.6% in 2012.

“Financial market volatility certainly took a toll on business and consumer confidence this summer. However, our expectation that the global economy will avert another downturn should temper the slide we’ve been seeing in the equity markets and in commodity prices,” said Craig Wright, senior vice-president and chief economist at RBC. “We are cautiously optimistic that Canada’s economy will continue to pick up speed next year, growing at a rate of 2.5%.”

Wright notes the labour market has more than fully recovered from the loss experienced in the downturn. As of August, Canada had 164,000 more people employed than during the pre-recession peak, with the gains concentrated in full-time jobs.

RBC reports business investment is on an upswing, growing at double-digit rates throughout 2010 and the first half of this year thanks to improved profits, better access to financing and a stronger Canadian dollar.

US growth is projected to grow by 1% to 1.7% in 2011, because of data showing a deeper recession and a weaker recovery. One-off factors such as poor weather conditions restricting non-residential construction activity, the Japanese disasters cutting into auto production and sales, and gasoline prices cutting into other consumer spending will also slow growth. But RBC is predicting a 2.5% gain in 2012.

The IMF says the overall global economy will grow 4% this year and next – down from 5.1% in 2010. It’s not predicting a global recession but is warning the risk of a downturn has dramatically worsened due to Europe’s sovereign debt crisis.

A 2011

There wasn’t much job action in August: just a 0.1% increase over July, but during the previous 12 months there has been a gain of 1.3% (223,000 jobs) mostly in Alberta and Ontario. Manufacturing didn’t show much movement but it’s ahead 2.3% so far for the year.

Profit from the Synergy of two great products ...

Venanzetti Vibrators

GDP SHOWS SIGNS OF LIFE billions of chained (2002) dollars 1,270 1,260 1,250 SOURCE: STATISTICS CANADA

1,240 1,230 1,220 1,210 1,200 1,190 1,180

J

J 2008

J 2009

J

J 2010

J 2011

Manufacturing, wholesale trade and transportation equipment were behind a 0.3% boost to GDP in July. Manufacturing was up 1.4% thanks to a 2.1% gain in durable goods and 0.5% increase in nondurable goods.

www.plant.ca

ROSTA Screen Mounts

J

Make an impact on your bulk processing!

Use the Venanzetti Vibrators in conjunction with the ROSTA Screen Mounts.

12 Douglas Road, Unit # 6, CA-Uxbridge, Ontario L9P 1S9 Phone ++1 (905) 852 19 29, Telefax ++1 (905) 852 18 61 info@rostainc.com, www.rostainc.com

Canadian PLANT 7 05 Rosta ad (Plant).indd 1

7-PLT05.indd 7

ROSTA Inc.

04/10/2007 01:02:59 PM

11-10-07 9:53 AM

Departments

>> Labour Relations

Focus on a more progressive agenda

By Ken Lewenza

L

abour Day has always offered working Canadians a chance to step back and reflect on collective achievements. Workplace safety rules. Decent wages and benefits. Work-life balance.

Equality. And fairness. Even as a child marching with my parents along Labour Day parade routes in Windsor, Ont., I understood the day to be a celebration of social progress and collective prosperity for all – including non-union families – amid the daily struggle for improved

All Canadians should feel empowered to turn away from the “negativity, fear and despair... ” worker rights. The mood has changed over the passing decades with growing hardships turning more Canadians towards despair.

Many of the jobs offered today are unstable and insecure. More than 3 million Canadians are considered precariously employed, and the number is rising.

Employers continue to exploit outdated labour laws, which is cracking the foundation of our labour market and giving rise to

unregulated temp jobs, short-term contract work and involuntary part-time jobs.

Canada is certainly a wealthy nation.

With a national net worth topping $6 trillion (roughly $185,000 per capita) and it’s rising – even as economic storm clouds loom – it’s not a secret the bulk of these spoils is enjoyed by our most affluent citizens. In fact, for millions of workers real wages have flat-lined since the mid 1970s and the earnings gap is widening.

IT WORKS!!!

Join the thousands of companies that are saving thousands by having their oil purified.

Don’t pay for those used oils to be taken away. There’s a good chance they can be purified, re-additized and reused many times over. Chem-Ecol Ltd. Has been successfully purifying industrial oils for over 35 years.

Oils we can purify include: • Hydraulic Oils • Gear Oils • Stamping Oils • Refrigeration Oils • Cutting Oils • Quenching Oils • Fire Resistant Oils • Dielectric Oils

SAVE 30% TO 70% CALL 1-800-263-3939 www.chem-ecol.com

Through the global financial crisis, right-wing politicians, business leaders and commentators aided by the media have successfully made working people feel responsible for causing the damage: that somehow their ability to enjoy a stable retirement and earn a decent wage (even taking a vacation or two) is selfish.

Many working people have now lost sight of the need to build a stronger, more inclusive society. Why are their expectations so low that it now seems not losing is the same as winning? And why have they turned their anger inwards – buying into the perverse logic that they are the enemy, rather than the power brokers of an unfair, unsustainable, unbalanced and uncaring global economy?

Before his untimely death, federal NDP leader Jack Layton made an appeal to progressive voices in Canada to choose love over hate, hope over fear and optimism over despair. This touched a nerve as tens of thousands of Canadians responded en mass with messages of their own.

A matter of priorities The wealthy and business elite have convinced us to temper our ambitions and scale down our collective goals for a better world. They’ve told us our desire to retire with a decent standard of living is too expensive, our plan for quality affordable child care unattainable, our strong public services unaffordable and that an end to poverty and homelessness is unrealistic.

None of this is true; rather, it’s only a matter of priorities.

Let’s strive to do better, re-set our collective priorities higher than just maintaining the status quo and not shy away from demanding more from employers and politicians.

The time has come to embrace a more creative brand of public policy and more principled politics – the same tools that enabled us to break ground on revolutionary programs such as universal health care, the nine-hour workday, workplace democracy and unemployment insurance. And let’s do it for the benefit of all, not a privileged few.

As progressives, trade union members must place their belief in the possibility of our ideas – such as universal child care, national pharmacare, electoral fairness, full employment, good jobs and improved public pensions – all of which are well within our reach if we truly commit ourselves to realizing them.

As we celebrate previous achievements, let’s set our sights on an agenda for progress to bring about the more just, fair and caring society so many of us crave.

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.

8 Canadian PLANT

8-PLNT05.indd 8

May/June 2011

11-10-07 3:17 PM

summit Report

<<

Trends

Manufacturers

unite

canadian, Us associations focUs on chaLLenges and coopeRation

By Lisa Wichmann

M

anufacturing has been in recovery mode since 2009, but overregulation and trade barriers are hampering continued growth, according to Jayson Meyers, president and CEO of Ottawa-based Canadian Manufacturers & Exporters (CME).

US companies face the same hurdles, so CME organized the first annual Canada-US Manufacturing Summit in Montreal, which ran from Sept. 12-13.

It brought manufacturing executives, policy makers, politicians and academics from both sides of the border together to

>> oil sands BiggesT oiL sANds risks Rising costs, LaBoUR

G

lobal economic issues, escalating costs and environmental issues are making it hard for oil sands companies to forecast and plan. More collaboration may be the answer, says Ernst & Young.

The global consulting firm’s Exploring the top 10 opportunities and risks in Canada’s oil sands report (http:// ey.com/ca) says escalating labour, service and commodity costs are driving early signs of cost inflation in the oil sands sector while environmental issues dominate the risks list.

For example, steel has gone up 30% since 2010 and continues to climb, while low unemployment rates are also expected to drive labour costs higher as, Ernst & Young notes, numbers edge towards the 2007-08 levels where service costs escalated out of control.

“While companies are still spending the same capital, many are concentrating on decoupling the value chain by moving away from fully integrated projects and completing segments in smaller incremental phases,” said Lance Mortlock, senior manager of Ernst & Young’s oil and gas practice.

Mortlock said rather than building and maintaining production and upgrading, companies should collaborate to alleviate costs and risks. Recycling water and dealing with the treatment of tailings ponds are two examples where oil sands companies are collaborating.

The Canadian Association of Petroleum Producers (CAPP) predicts oil sands production will grow to 2.2 million barrels per day by 2015 and 3.5 million barrels per day by 2025.

www.plant.ca

9-PLNT05.indd 9

give bilateral cooperation a nudge.

“The competitiveness of Canadian manufacturing depends on the competitiveness of manufacturing in the United States; and the competitiveness of US manufacturing depends as well on the competitiveness of Canadian suppliers,” said Meyers. “So we have a common cause here.”

The numbers tell the tale, he added.

Since the recovery began, US and Canadian manufacturing have been growing at the same rate. Every day, Canada does $1.5 billion in trade with the US, and 30,000 trucks cross the border. Vehicles in assembly go back and forth between the US and Canada up to six times before they’re complete. He said policy should better reflect that intertwining, through reduction of barriers to North American supply chains.

Meyers’ counterpart in the US agreed.

Jay Timmons, president and CEO of the National Association of Manufacturers (NAM) based in Washington, spoke about the need to build a stronger North American manufacturing industry to bring production back to the US and

(L-R) NAM president and CEO Jay Timmons at the summit podium, Canadian ambassador to the US Gary Doer, US ambassador to Canada David Jacobson and CME president and CEO Jayson Meyers.

PHOTO: CME

Canada, and compete on a global scale.

“Regulation has added $1.7 trillion to the cost of manufacturing in the United States,” said Timmons. “We’re not saying all regulation is bad. We understand the importance of stewardship. Manufacturers lead the way on stewardship. We care about clean air and clean water and safe and strong communities. But at the same time we know that has to be balanced with our ability to create jobs and create quality of life in those communities.”

Federal Industry Minister Christian Paradis referred to the government’s red tap reduction commission, and the US-Canadian cooperative working group, Beyond the Border, which aims to speed the movement of trusted shipments and people through Customs.

“Prime Minister [Stephen] Harper committed... to take action to keep access to the American market as open and secure as possible,” Paradis said.

The audience also heard from senior policy makers in the US and Canada

involved with the Regulatory Cooperation Council (RCC), a team mandated

by Harper and US President Barack Obama in February to simplify and align disparate regulations. The RCC held its first meeting in June and will be collecting more input from manufacturers and other stakeholders. The next step will be an “action plan” though a date hasn’t been set for its release.

To bring the event to a close, Meyers and Timmons presented common manufacturing priorities to Gary Doer, Canadian Ambassador to the US, and David Jacobson, US envoy to Canada. The document includes expedited border crossings and cost competitive access to energy.

Lisa Wichmann is the editorial director of the manufacturing publications at the Business Information Group in Toronto. E-mail LWichmann@canadianmanufacturing.com.

Comments? E-mail JTerrett@plant.ca.

>> outlook

ProduCTioN reCovery: 2015

cURRent economic tURBULence incReases geneRaL Risk to oUtLooks

I

t’s going to take until 2015 – at the earliest – for many canadian industries to hit pre-recession levels of production, says a conference Board of canada report. the ottawa-based research firm and the Business development Bank of canada (Bdc) in their latest canadian industrial profile said that only motor vehicle parts manufacturing and aerospace will achieve production levels by 2015 that exceed their 2007-08 output. published by the conference Board of canada, the industrial profile provides a five-year (2011-2015) production, revenue, cost and profitability forecast for six industries each quarter.

“Uncertainty is the watchword for all of these industries,” said michael Burt, associate director, industrial economic trends at the conference Board. “the current global economic turbulence increases the general risk to these industry outlooks. as well, industry specific factors are adding layers of concern.” here are some highlights: • Aerospace products. production is expected to reach a low point this year before output rises next year with the industry topping its 2008 peak by 2015. demand is up for aircraft thanks to recovery in global passenger and airfreight but on the defence side, budget cuts in Western europe and the Us will trim slow growth. demand for more fuel-efficient aircraft and the growing importance of emerging markets will generate more business opportunities.

• Motor vehicle parts. supply disruptions resulting from the Japanese earthquake and tsunami continue to limit automotive production and demand for parts of the year, but sales will surge over the next couple of

years as market conditions in the Us gradually improve. production and profits are therefore expected to grow from 2012 through 2015, although mounting competition from countries with lower labour costs and the strong canadian dollar will negatively affect cost-competitiveness.

• Wood products manufacturing industry. struggles in the Us housing market and a slowdown in the canadian market will reduce growth this year. stronger growth is expected next year as north american markets rebound and the industry continues to make inroads into new export markets such as china. still, production is unlikely to surpass a 2005 peak before the end of 2015.

• Paper products manufacturing. an increase in new orders and lower inventories suggests production of paper products will rise in the short term, resulting in the industry’s first yearly profit since 2002. however, a surplus of capacity limits the potential for price increases. digital communications and media is also affecting paper demand, so future production growth will have to come from non-traditional markets or products.

• Furniture products. exports have declined with a struggling Us housing market and intense international competition. But a growing middle-class in countries such as china, india and mexico offer new markets for high-end furnishings, leading to modest growth over the next four years that will be short of a return to peak levels.

• Printing services. advertising and information transitioning from printed to digital formats will help flatten production and profits through 2015. smaller print jobs using lower-cost technologies, such as digital printing, are the only growth areas.

Canadian PLANT 9

11-10-07 9:55 AM

Sustainability

>> sustainable shipping

>> clean Tech New Life To uSed eV bATTerieS ToroNTo: Electrovaya inc. is launching a $7.6 million project that will put end-of-use electric vehicle batteries to work as part of a utility sized stationary battery system.

The Toronto-based developer and manufacturer of lithium ion battery technology said the repurposed batteries could be used to store electricity generated by renewable energy systems, such as wind and solar power.

The system will be implemented at the Manitoba hVDc research centre facility in Winnipeg, a subsidiary of Manitoba hydro, with participation from the university of Manitoba. some of the project funding will come from Manitoba hydro plus $3.36 million from the Government of canada’s clean Energy Fund.

Bob Brennan, cEO of Manitoba hydro said repurposed lithium ion battery technology has excellent potential for grid storage, while reducing diesel consumption in remote northern communities.

$60M deAL To ProCeSS SyNCrude TAiLiNgS CALgAry: newalta corp. has signed a contract worth $60 million with alberta oil sands developer syncrude canada Ltd. for a demonstration project that will process mature fine tailings (MFT) resulting from oil sands mining. newalta, a calgary-based environmental services company with offices across canada and in the us, said the project follows two years of trial projects with syncrude to prove the application of centrifugation (use of centrifugal force to isolate suspended particles from water) for processing MFT. The three-year contract, which involves a capital investment of up to $30 million, is expected to generate revenue of about $20 million per year at syncrude’s oil sands operations near Fort McMurray, alta.

25 TurbiNeS deSTiNed for wiNd ProjeCTS oTTAwA: Wind Works Power corp., a developer of rural wind farm operations, has signed definitive agreements with a German manufacturer to provide wind turbines specially designed for damp weather conditions with major temperature fluctuations. rEpower systems sE will deliver and install 25 of its MM92 type turbines for five Ontario wind farms, including settlers Landing, snowy ridge, Grey highlands, cloudy ridge, and clean Breeze, for a total capacity of 50 megawatts.

The five wind farms have been awarded a feed-in tariff power purchase contract by the Ontario Power authority.

Each 100-metre-high turbine, to produce a minimum of 2 megawatts, will be delivered in the spring of 2013 and put into operation by the summer.

SeA-fAriNg

bearings

cLEaninG uP ThE MarinE inDusTry Thordon Bearings builds its global business making rudder and shaftline products that use seawater for lubrication.

By Erika BEauchEsnE

G

eorge Thomson always wanted to be a filmmaker, but like many children born into a family business, he ended up taking over the company instead. Thomson is the fourth-generation owner of Thordon Bearings Inc., a Burlington, Ont. manufacturer of rudder and shaftline products for the marine industry that reduce a ship’s environmental impact on the water.

Since inheriting the business from his father in 1964, Thomson has overseen the company’s growth in 100 countries. Today, Thordon bearings are used by more than 2,000 ships from Disney Cruiselines to the Canadian Navy and were recently shortlisted for an Ocean Environmental Award at the 2011 Sustainable Shipping Awards.

The bearing system consists of a proprietary mix of elastomeric material rather than metal, and oil or grease aren’t needed because seawater provides the lubrication.

With millions of litres of stern tube oil lost to oceans each year, seawater-lubricated propeller shaft bearings have been recommended by environmental groups such as World Wildlife Fund and Friends of the Earth International.

The growth potential in the commercial ship market (container ships, bulk carriers, ferries and tankers) is tremendous, says Anna Galoni, Thordon’s vice-chairman, who notes the company currently has just 1% of the potential market share for propeller shaft bearings.

“The marine industry is our largest market and is typically very conservative by nature. Some commercial

ship owners are reluctant to try new ideas and products.

However, with new pollution regulations and improved oil detection methods, many are specifying our pollutionfree bearing systems and having excellent results.”

Craig Carter, director of marketing and customer service, says much of their success has had to do with stricter environmental regulations.

“In the US, Canada and Western Europe, laws have been changing, in a large part driven by the EPA [US Environmental Protection Agency].”

Vessels now require a discharge permit and have to account for the oil aboard the ship before the voyage and any discrepancy in that amount at the trip’s end.

The US has always been a solid market for the company, but in recent years its biggest chunk of business has come from China.

“India and Brazil also offer big growth potential for us,” he says, and the company operates a joint venture in Russia with the country’s largest hydro-turbine manufacturer for the supply of bearings to domestic and foreign markets. Thordon is also building a facility in Poland.

“We recognized the need to have a manufacturing presence in Europe to better supply our customers there while taking advantage of the financial, logistical and geographic benefits would bring,” says Galoni.

Poland was chosen, she explains, because of its success in developing a modern economic and business climate, the availability of first-class skilled trades and financial incentives.

“This facility will give us flexibility, help mitigate the risk associated with having only one facility and provide a competitive advantage for us in Europe.”

Carter says succeeding in global markets requires a strong network of distributors. “They need to understand the culture, the product lines and speak the language.” But it takes a few years to set them up and get the product established.

SoLAr ProjeCTS oN The grid ToroNTo: Development continues on Ontario’s renewable energy front with the commissioning of a canadian solarform inc. solar plant and the activation of a rooftop installation by sunEdison and GE capital under the feed-in tariff (FiT) program. solarform, a solar panel distributor that is a supplierpipeline/Brc Group joint venture based in Georgetown, Ont., has a 250 kilowatt ac solar plant up and running at isPa Woodworking in Georgetown. solarform, a Georgetown-based solar panel distributor, is using high-output Juli new Energy Panels made under licence by OsM solar corp. in Welland.

Meanwhile, sunEdison, the Toronto-based solar energy subsidiary of MEMc Electronic Materials inc., and GE capital real Estate are activating the first two of 15 solar rooftop systems under the FiT program. sunEdison is building and operating the photovoltaic (PV) solar energy systems on GE capital real Estate’s commercial buildings in Vaughan, Brampton, Burlington, Markham and Mississauga, plus systems located in London.

The first two systems of the 15 (totalling 2.3 megawatts of capacity) are to generate more than 3.2 million kilowatthours of energy over a 20-year period, offsetting a potential 9.8 million kilograms of cO2, the equivalent of removing 5,515 cars from the road for one year.

Thordon's vice-chair Anna Galoni looking out from the inside of a marine bearing.

10 Canadian PLANT

10-11-PLNT05.1.indd 10

PHOTO: STEPHEN UHRANEY

September/October 2011

11-10-07 9:56 AM

Machinist Sean Hyde works on a propeller shaft at Thordon’s Burlington, Ont. plant.

PHOTO: STEPHEN UHRANEY

Thordon chairman George (Sandy) Thomson with Thordon India’s representative, J.P. Moses, checking out COMPAC and SXL polymer bearings.

PHOTO: THORDON

Worldwide marine markets Thordon now has more than 70 distributors worldwide and maintains all its manufacturing in Canada.

Its 80,000-square-foot plant keeps 100 employees busy making a range of shaft line products, including coatings and water quality systems that use cyclonic separators to remove abrasives from water.

Thordon also makes bearings for offshore oil rigs, hydro-electric plants, pumps and other industrial applications.

Specializing in highly engineered polymer products has helped the company surmount several economic downturns.

“We’re lucky because we have not been hurt by the Canadian dollar or other impacts that plastic companies here are feeling,” he says.

The company was founded in 1911 by George’s grandfather, who handed it over to his father in the 1940s.

Thomson says maintaining that long line of family ownership has helped them gain the trust of potential customers, particularly in regions such as Europe where it’s not uncommon to find family businesses spanning 15 generations.

“There’s a customer expectation that family businesses are going to be stable, consistent and have strong values,” Thomson says. “That means a lot, especially when you’re dealing overseas and there’s a distance

Machining a bearing.

PHOTO: STEPHEN UHRANEY

separating you.”

But running a family business has its challenges.

“It’s a mistake to think you need to be fair and bring every family member into the business. It inevitably results in conflict,” he says.

Having a succession plan is also vital.

“It needs to be planned long before the incumbent becomes incapacitated in any way,” he says.

Now 72, Thomson is transferring ownership over to Galoni, his stepdaughter.

“I’ve diverted all my common shares to her and now

it’s just a matter of me dying before she gets the rest of it,” he jokes.

As for the future, the company intends to be aggressive.

“We are expecting to grow 15% to 20% annually over the next few years,” says Galoni.

She forecasts success, especially during these tough economic times, will come from maintaining a focus on global marketing to capitalize on the reduced efforts of Thordon’s competitors, and moving ahead as quickly as possible with new product development initiatives that would enhance existing products. To that end, the company invests 5% of its sales in research and development activities.

Meanwhile, Thomson is retiring gradually and using his spare time to pursue one piece of unfinished business – his love of filmmaking.

He used to run a company called Cinema 16 and has recently restarted it.

“Filmmaking is mostly what I do now. It’s great. It gives me somewhere to go, something to do and it gets me out of my daughter’s way,” he laughs.

Erika Beauchesne was recently an online writer and section editor with Canadian Manufacturing.com, and is currently seeking adventure in Alberta.

Comments? E-mail JTerrett@plant.ca.

>> Green Manufacturing

SuPerChArge your SuSTAiNAbiLiTy efforTS

By BrETT WiLLs

A

s sustainability continues to weave its way into the Dna of manufacturers around the world, it’s becoming increasingly important for north american companies to focus on initiatives that will realize the greatest benefits. companies have been going for the quick wins and mimicking best practices. For some, these ad-hoc approaches have matured into more robust and formalized programs, but mostly directed internally. The big opportunities, however, lie outside the company.

Take apple. Only 3% of its carbon footprint comes from facility operations, while 45% comes from the extended supply chain and 46% from the end use of products by customers. as a result, apple is directing its efforts on areas that deliver the biggest wins. as a result, the energy efficiency of products is increasing, less material is used, harsh chemicals are being phased out and suppliers are becoming more efficient. another big plus: benefits have increased exponentially to all stakeholders throughout the apple value chain. how did apple get there? By starting with two simple questions: 1. what are the key impacts on sustainability? Examine all the components of the value chain and how they affect each other. a formal approach could involve the development of a carbon or water footprint across the extended organization. Or it may be as simple as a discussion among associates, partners and other stakeholders.

2. what impact will sustainability trends have on your company? identify the trends that will affect your company, such as resource depletion, supply shortages, climate change or energy issues. For example, if there’s a possibility cheap, potable water comes up short and your company is water intensive, what would happen if the cost tripled in the next decade?

Focusing sustainability efforts internally is important and a first critical step, but the big gains will be found on the outside where your reach will be longer.

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.

Propeller shaft shavings piling up.

www.plant.ca

10-11-PLNT05.1.indd 11

PHOTO: STEPHEN UHRANEY

Canadian PLANT 11

11-10-07 9:56 AM

Management

>> exporting

Bribery: Another way of doing time

By Mark Drake ribery and corruption are very much in the news. Massive political changes in Tunisia, Egypt and throughout much of the Middle East were caused in large part by corruption.

It has become such a problem in India that a web site has been created to allow reluctant bribers to “name and shame” (www.Ipaidabribe.com).

Bribery is generally recognized as a cancer that adds considerably to the cost of international projects. Apart from this, many practices considered normal

B

practices considered normal – even tax-deductible – a “fewMany years ago are now against the law… ” – even tax-deductible – a few years ago are now against the law. What advice is there for the global trader?

Let’s begin with the fountain of all bribery knowledge: Transparency International (www.transparency.org). This German-based international organization, headed up by Canada’s Huguette Labelle, has offices all over the world, and a very active branch office in Canada (www.transparency.ca).

TI is best known for its annual Bribery Perceptions Index (BPI). Users check any of 178 countries against an index varying from very clean (Canada, Scandinavia, Australia and New Zealand) to highly corrupt (Angola, Sudan, Myanmar). In between are many countries where there is clearly need for caution (Russia, Indonesia, many African countries, Mexico, India and China).

TI also publishes an index of Prime

Think Innovation, Durability, Quality

Durability

Making Personalized Solutions Simple • 100,000’s of options • Same quality • Same lead time

Modular Drawer System

Come and visit us at CMTS show at Booth # 1746.

Flexibility

Quality

+

+

Choice

=

1.866.463.4270 info@rousseaumetal.com

www.rousseaumetal.com

Bribers. In 2008 these included China, India and Russia, primarily in the area of public works and construction, oil and gas, manufacturing and mining.

TI Canada recently published a useful anti-bribery checklist that suggests corporations ask these questions: • Policy. Is there an up-to-date formal, published policy stating zero tolerance of bribery and a clear commitment to obey anti-bribery laws worldwide?

• Implementation. Is there regular risk assessment and does the policy have detailed procedures/controls for donations, facilitation payments, gifts, hospitality and travel expenses? Is the leadership walking the talk, are managers responsible for carrying it out, is it applied throughout all operations, and has it been communicated to all stakeholders?

Is training provided, is there a confidential channel for whistle blowers, and are internal financial controls adequate to ensure compliance?

• Monitoring. Are the control systems subject to regular review and audit are there sanctions in place to deal with incidents of bribery and is the program made public?

Anti-bribery laws TI also publishes Business Principles for Counteracting Bribery, which provides a framework for companies to develop comprehensive anti-bribery programs.

Doing so is now reinforced by some compelling legislation.

The USA 1977 Foreign Corrupt Practices Act (FCPA) was followed by the 1999 OECD Convention on the Prevention of Bribery and Corruption in International Business, which 39 countries, including Canada ratified.

Essentially Bill S-21 makes it illegal for Canadian companies to bribe foreign public officials through loans, rewards, advantages or benefits for competitive advantage. Facilitation payments to officials performing routine duties (such as clearing goods through customs) are permitted under the Canadian legislation.

The penalties? For an indictable offence, up to 10 years in prison. For a summary conviction, a fine up to $50,000 and/or up to six months in prison.

Penalties for companies can be much higher. Niko Resources of Calgary has just been fined $9.5 million for bribing a minister in Bangladesh in direct contravention of the Canadian law.

In summary, it makes good business sense to have a clear anti-bribery policy in place, particularly when in countries on the low end of the TI index are involved, where a firm initial “no-bribe” decision avoids the risk of doing time in the local jail.

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

Comments? E-mail JTerrett@plant.ca.

12 Canadian PLANT

12-PLNT05.indd 12

September/October 2011

11-10-07 9:58 AM

process improvement << Management

Stale DateD

>> Marketing

HeLP buyers buy

does your proCess iMproveMent need refreshing?

By Carlo Mariglia and Joseph gipp

T

1.

2.

www.plant.ca

13-PLNT05.indd 13

By andreW shedden

T

When projects run out of gas, there are steps you can take to keep the momentum and the benefits flowing.

he management team was perplexed. A process improvement program the food manufacturing company had put into place two years ago to reduce inefficiencies generated outstanding cost savings for the past year, but progress was abating. Employees were slow to submit improvement ideas and the suggestions were no longer especially innovative or valuable. Was one-year of savings all the company could expect from its major investment in process improvements?

This type of outcome is not uncommon for small and mid-size enterprises (SMEs) that embark on new business process improvement projects. Consider that large manufacturing operations typically have long-established continuous quality improvement cultures where every day trained managers develop and guide cutting edge improvements throughout the organization. Smaller companies generally rely on external consultants, on a temporary basis, to devise and launch improvement initiatives. Once a program is underway, it’s the company’s responsibility to keep it going.

No matter what type of improvement program may be in place – ISO 9000 Quality Standards, Total Quality Management, Just-in-Time, Lean Thinking, Six Sigma, Theory of Constraints, Benchmarking – once the novelty wears off, the challenge inevitably shifts from “how do we start improving” to “how can we sustain the benefits of this program for the long term?”

Rather than abandoning an improvement program and starting over, there are a number of steps management can take to refresh effectiveness. First, it may help to know some of the main causes of process improvement sluggishness.

Improvements lead to more work for participating employees.

Sometimes the improvements employees identify end up on their personal lists of responsibilities. As their “to dos” increase, their enthusiasm for improvements wanes. That’s why it’s important to find ways of re-engaging people to continue seeking improvements and to offer rewards for doing so.

Turnover of key personnel slows momentum. The momentum can slow when original project leaders or enthusiastic participants are promoted, transferred or depart from a company.

foCus on their issues and needs

Keep the momentum going by refreshing your process improvement program.

Find new leaders to inject energy into the initiative.

Improvement opportunities dwindle. Process improvement programs tend to focus on a specific area of an operation, such as eliminating waste in production or reducing costs in purchasing. After a program has been in place for several months and the most beneficial improvements have been identified and acted upon, subsequent suggestions deliver increasingly lower value.

In these cases, the focus of the program will require adjustment.

3.

Big picture view For manufacturers considering the implementation of any new process improvement program or wishing to revitalize one that’s fatigued, follow these steps to ensure sustainability and avoid “stale dating:” • On at least an annual basis, step back for a look at the big picture. Review the company’s goals and identify the most important benefits (cost reductions, product quality, profitability, customer service). Is the current program delivering on the priorities? If not, the program will need an adjustment. It may be necessary to change focus, re-engage employees or rebuild the business improvement team. If opportunities for adjustments are not clearly evident, consult an experienced process improvement specialist for an objective assessment. A fresh perspective often uncovers missed opportunities, determines whether or not new objectives are necessary, and ascertains if a different type of improvement method is required.

• Is the refreshed improvement initiative feasible and sustainable? Outline the necessary steps and the people that would be involved.

• Link the program directly to the com-

PHOTO: THINKSTOCK

pany’s goals and objectives.

• Communicate the importance of the program throughout the organization and continually support the efforts of managers and employees.

• Create a supportive culture by empowering employees and regularly recognizing and rewarding those who contribute. Anticipate that employees will want to know “what’s in this for me?” and ask for input regarding their reward preferences (compensation, performance appraisals or recognition).

• Don’t overload people by allocating responsibility for new initiatives only to those who suggest ideas. When implementing new improvement processes, consider where redundant procedures may subsequently be eliminated.

• Regularly assess the improvement program’s progress and watch for new opportunities. Question whether the focus is on the right areas. Ask employees what’s working and what isn’t, and where they see the most opportunity for improvement.

All process improvement programs rely on the enthusiasm and engagement of management and employees who believe there’s value in doing them.

Assessing progress, asking for input, creating a supportive culture and making adjustments as they are needed will ensure improvement efforts will deliver value for a very long time.

Carlo Mariglia is a Toronto-based partner in the national advisory services practice of BDO Canada LLP (www. bdo.ca). Call (416) 369-3078 or e-mail CMariglia@bdo.ca. Joseph Gipp is a partner and national advisory leader of BDO’s manufacturing industry practice. Call (416) 369-3091 or e-mail JGipp@bdo.ca.

oday’s busy buyers are distracted, frazzled and unfocused. they’re being asked to do more in less time while overwhelmed with phone calls, e-mails, meetings and fire fighting. how do you sell to these multi-tasking dynamos? they have little interest in your products and services or special features.

What they do care about is value and how it will improve performance. the best way to reach them is to find out what issues and business drivers are top of mind and create outcomes-based, value propositions such as the following: • We help machine shops increase metal removal rates by an average of 53%.

• We help fabrication shops reduce consumables expenses and increase productivity.

• We help manufacturers reduce drill press cycle times. the best action your salesperson can hope for is the buyer saying, “interesting, i would like to take some time to discuss this.” going into this first face-to-face meeting, understand that a salesperson’s biggest competitor is complacency. a natural tendency is to resist change. a buyer happy with the status quo won’t buy from you, so create a process that clearly establishes the advantages of taking action. resist launching into a product pitch at this meeting. focus instead on getting high-quality intel and have a productive conversation that shows how your offering delivers real business value.

Buyers will only take action when they’re confident the advice is sound, unbiased and will lead to a quality buying decision, so ask the right questions. neil rackham’s book “SPIN Selling” offers the following advice: • Build trust and confidence in your company and its offerings.

• Help buyers rank your initiative against their competing projects.

• Is the status quo acceptable or is the buyer receptive to change?

• Uncover the buyer’s major problems.

• Discuss their consequences.

• Discuss the measurable value of resolving them.

• Show the buyer how your solution provides the desired value at minimal risk and how change outweighs the comfort derived from doing nothing.

• If necessary, help the buyer map out the steps in a selection process.

When business conditions are making life complicated for buyers, the best way to get their attention and make the sale is to help them buy.

Andrew Shedden is the president of Broadfield Communications, an industrial marketing consulting firm. Call (800) 3534447. Visit http://www.broadfieldcommunications.com/plant.htm for the Seven Steps to Manufacturing Profits.

Comments? e-mail JTerrett@plant.ca.

Comments? E-mail JTerrett@plant.ca.

Canadian PLANT 13

11-10-07 9:58 AM

Operations

>> Saving Energy

Compressed air: you’re blowing it

Six tips that will save you

processes that can be switched to more energy efficient tools. For example, many high consumption processes use blowers and fans for open blowing, cleaning and drying. Further, if compressed air is still preferred, consider using an engineered nozzle rather than a crushed copper tube. These nozzles significantly reduce backpressure and increase the velocity of the compressed air, thus reducing the volume needed.

Automatic drains. Ensuring your automatic drains function correctly is an inexpensive repair. Often neglected and tucked underneath a receiver tank, they become damaged over time resulting in a constant stream of wasted air. Typical cost for an Evaluate the efficiency of your compressed air system by automatic drain is $150 to $300, which will pay for itself in less then a year. scrutinizing material, labour, downtime and energy.

Heat recovery. When operating a rotary screw compressor, consider reclaiming the warmed discharge air. In the summer hot air should be redirected outside the plant while proper ducting in the winter months will save you

By Brent and Roark Patton thousands of heating dollars. For example, heat recovery using a 100-hp compressor will save $3.70 per hour. Three shifts daily ompressed air is as ubiquitous a resource to industry as electricity, water, for six months will save $15,906. and natural gas and it’s a vital part of almost all industrial processes. As Controls. Many rotary air compressors such, costs associated with operating compressed air equipoperate in “modulating” mode. When fully ment are often thought of as fixed, yet there are loaded, the compressor operates at peak efmany simple ways to significantly reduce them. ficiency but efficiency decreases drastically as Costs break down into two main categories; demand lessens. A 100-hp compressor draws material, labour and downtime; and energy. Both approximately 100 amps at 575 volts while should be scrutinized when evaluating the efficienfully loaded, and yet, the same compressor cy of your compressed air system. will draw 65 to 75 amps fully unloaded. Most The best way to cut parts, labour and downtime manufacturers have abandoned the modulatcosts is to reduce the probability of breakdowns ing system in favour of the “online – offline” and that requires having a preventive maintenance automatic control system that operates at a plan. Many breakdown calls result in simple repairs much higher efficiency in compressors with a that could be prevented. The most common calls fluctuating or low air demand. Switching from are related to overheating caused by low oil levels modulating to automatic mode will reduce or blocked cooling mediums. Regular, visual inspections of unit electrical costs by up to 40%. coolers and oil levels will eliminate a significant amount of equipThe most efficient rotary compressors availment downtime. And locating equipment outdoors, independent from the able for changing air requirements are variable speed, which facility, eliminates the contamination of intake air, one of the primary causes of are becoming the top choice for energy conscious consumfailure. Additional benefits are more plant floor space and reduced equipers. An air audit by a qualified technician will determine the ment noise.

An outdoor installation of compressed air type of control system that best matches your consumption At an average efficiency of 5% to 15%, compressing air is very expenequipment.

PHOTO: AIRCELL characteristics. sive. The electricity cost of 100 hp worth of compressed air rises from Finally, there are free tools such as The Compressed Air Challenge (www.com$17,120 for a single eight-hour shift, to $32,330 for 16 hours and $63,900 for 24 hours. pressedairchallenge.org) and RetScreen (www.retscreen.net) that will help you Electricity is charged based on peak demand and use. Reducing use also lowfind ways to reduce costs and calculate precise savings and payback periods so you’re ers overall peak demand. For example, if your plant is using between 600 and 800 not blowing your compressed air budget. kilowatt-hours (kwh), but for a short time consumes 1,000 kwh, the bill will reflect a peak charge based on 1,000 kwh. Therefore, a small reduction of 100 kwh will not only Brent and Roark Patton operate AirCell, a supplier of compressor technology, and reduce the kilowatt-hour use portion of your energy charges, it will also reduce your Comtract Air Compressors, a manufacturer of compressed air systems, in Missispeak by the same amount. Typically, the peak charges for power consumed range sauga, Ont. E-mail brent@aircell.ca and Roark@comtract.ca. from $5 per kwh to $15 per kwh in some remote regions in Ontario.

The obvious solution is to reduce the amount of energy used by focusing on the Comments? E-mail JTerrett@plant.ca. following: Leaks and pressure drops. During an air audit of a large stamping facility it was determined that more than 100 hp of compressed air was required during periods of zero-demand to merely bring the system pressure to 100 psi. Furthermore, although Energy savings for Saskatchewan SMEs the pressure requirement for the stamping equipment was 90 psi, the customer was operating at 120 psi to compensate for line pressure drop. mall and medium size companies looking for ways to boost their energy savings can choose Air leaks are sometimes overlooked as an energy saving opportunity because typifrom several incentive programs offered by SaskPower (Saskatchewan’s electrical utility) cally most plants will have many small ones. The 100 hp or so being consumed by and SaskEnergy (the province’s natural gas distributor). the stamping facility was costing more than $32,000 annually in direct energy losses, The programs support retrofit and new construction projects involving heating, ventilation excluding additional maintenance costs, equipment wear and tear, and the incumbent and air-conditioning (HVAC) system retrofits, as well as changes to boilers and lighting. “peak” charges.

Available until Nov. 30, the SaskEnergy’s Commercial Boiler Program provides incentives to Line pressure loss is a common problem that’s overcome by raising the plant system help offset the incremental price of natural gas condensing boilers used for space heating over pressure. The ideal solution is to install a loop system to eliminate line pressure drop the purchase price of standard-efficiency boilers. The incentive is based on boiler plant input and take a step further – use strategically placed air receivers to overcome pressure size: SaskEnergy will pay $14 per 1,000 btu/h for the first 600,000 btu/h and $3 per 1,000 btu/h fluctuations at the point of use. Savings will vary from plant to plant, but generally above 600,000 btu/h of boiler input rating. If a hybrid system has at least one condensing boiler, every 5 psi pressure increase equals 5% more energy consumption. the incentive is $3 per 1,000 btu/h.

Blocked filtration. As filters and automatic drains age, they become blocked with SaskEnergy and SaskPower is offering smaller businesses incentives to upgrade inefficient furparticulate, causing an immediate pressure drop in the entire distribution system. Sysnaces and boilers with select Energy Star qualified equipment until Oct. 31. Incentives to upgrade tems with both pre- and coalescing-type filters will see a drop in plant pressure of up to higher efficiency rooftop units are also available through the Commercial HVAC Program. to 20%. Unfortunately, compressor pressures are often increased to compensate for And SaskPower supports lighting retrofits by paying the difference in cost between standard the decline. Routinely changing line filter elements and inspecting automatic drains T-8 lighting and high efficiency T-8 lighting systems. prevents blockages and eliminates the impulse to increase delivery pressure.

For more information visit www.saskenergy.com.

Appropriate use. Given the inefficiency of compressing air, consider looking at

energy and money

C

S

14 Canadian PLANT

14-PLNT05.indd 14

September/October 2011

11-10-07 3:17 PM

Maintenance << Operations

By Steve Gahbauer

A

sset values are rising and so are the expectations of what maintenance must deliver. There is a desire for greater reliability, little tolerance for safety compromises and environmental impacts, and a demand that emerging technologies offer tangible deliverables.

In the 21st century, the expectation is for longer asset life, greater cost effectiveness and better quality.

These expectations were explored by experts at the 8th Reinventing Maintenance conference by Federated Press in Toronto.

As Don Barry pointed out, there needs to be efficient change management. He’s an associate partner of Supply Chain Operations and Asset Management Solutions of IBM Canada Ltd. and also the prime contributor to the 2nd edition of Asset Management Excellence – Optimizing Equipment Life-cycle Decisions.

Barry said attempts to implement improved maintenance practices will fail, not as a result of problems with the chosen practices, but rather because of people issues. Reaping the benefits of newly implemented maintenance efforts starts with an effective change management process.

The basic steps of a such a process are creating a vision, developing change leadership, building commitment, sustaining change, configuring a realistic change program, managing that program, and making up a score card. A successful program must focus on results while changing the culture, involve employees and give them the authority and responsibility to make the necessary changes, and capture the hearts and minds of workers to create an engaged and empowered workforce.

Managing asset values

Implementing change for improved performance

achieve a higher level is the application of improved preventive maintenance techniques to balance reliability and availability. This difficult balancing act was addressed by Christopher Sooley, maintenance manager at IPEX Inc., a company that provides thermoplastic, industrial and ASCO_G3Ad_PlantMag_7.875x10.75_Sept11.pdf

fire protection products to the Canadian market from centres across Canada.

Sooley said it’s essentially a question of comparing downtime costs and the cost of not succeeding.

There is also the issue of safety: the direct indirect 9/14/11and 1:00:40 PM costs of accidents can

average as much as $75,000 a day across manufacturing and processing industries.

To strike a realistic balance between reliability and availability of production equipment while improving uptime requires money, energy, attitude, time, and support from senior management. We have the tools (check sheets, daily machine and safety inspections by operators, diligent data recording, and a reliable set of programmable logic controllers). To be of any use, they must be used.

Information for this article was derived from sessions presented at the 8th Reinventing Maintenance conference in Toronto presented by Federated Press.

Comments? E-mail JTerrett@plant.ca.

New technologies Don Fitzgerald, reliability project manager at Ivara Corp. in Burlington, Ont. – the owner of the RCM2 reliability-centred maintenance methodology, – stressed that improved equipment reliability is a critical objective of every maintenance manager, and that new technologies can go a long way toward helping to meet this objective. However, emerging technologies – from mobile data collectors and on-line systems to data acquisition systems and sensor devices used in predictive maintenance – should be exploited intelligently.

Maintenance and asset managers have data coming at them from all angles, so choosing and introducing something new into the mix is critical.

Focus on content, fault diagnosis and failure prediction. Fitzgerald says it’s important to connect failure modes to asset data and to implement condition-based approaches.

Maintenance inventory is an area that offers opportunities for cost reduction.

Improved store keeping and inventory checks significantly reduce budget needs.

Another area where new technologies

www.plant.ca

15-PLNT05.indd 15

Canadian PLANT 15

11-10-07 3:17 PM

Operations

>> Maintenance

Reliability challenge

MakInG the caSe for reInventInG MaIntenance A good place to start measuring maintenance is output, such as cost per product unit.

PHOTO: THINKSTOCK

sissauga, Ont., offered some intriguing thoughts on how to optimize CMMS effectiveness, the challenges, critical success factors, and a fresh look at the golden rules.

Beer reminds us that a CMMS is a useful tool for improving equipment reliability, but it also poses a number of challenges. Among them are understanding what the system is designed to do and training people to use it effectively; combating the sense that using a CMMS is like feeding a beast that takes too much effort and too many people; and getting maintenance people to input meaningful information. Garbage in produces garbage out, so it’s prudent to carefully select and monitor input.

Benefits of a CMMS

Insights into the value maintenance brings to manufacturing and how it improves plant productivity

By Steve GahBauer

T

imes are changing and the adage “reinventing maintenance” has become a peremptory challenge that we ignore at our peril. As reliabilitycentred maintenance evolves with the emergence of new technologies to more sophisticated and effective levels, there’s a refocusing on maintenance as a business imperative, and measuring has come under renewed scrutiny.

After a two-year hiatus, Federated Press convened its eighth maintenance conference this year in Toronto, appropriately titled “Reinventing Maintenance.” Here are three key points gleaned from the event that make the case for maintenance in today’s manufacturing environment.

It’s a business. Daniel Lawson, a continuous improvement manager, plant services, for Blount Canada Ltd., an industrial chainsaw manufacturer and exporter in Guelph, Ont., stressed the importance of treating maintenance as a business. Production pressures, equipment condition, on-time delivery and quality issues are changing the way we must look at processes and equipment, and Lawson suggests total productive maintenance (TPM) plays an important role keeping unscheduled and emergency activity to a minimum. But it also refocuses maintenance as a crucial part of the business structure rather than the non-profit, “necessary evil” service it’s often perceived to be. It does this by restoring machine uptime, eliminating

16 Canadian PLANT

16-PLNT05.indd 16

sources of contamination, improving equipment accessibility, setting maintenance standards, honing inspection skills, educating and training operators, and working to the performance of tasks by the right person at the right time. The end result: a fatter bottom line.

Measure to manage. Cliff Williams, the corporate maintenance manager at chemicals company ERCO Worldwide, raises an important question: do we measure to manage or just measure?

“The purpose of measuring is to gather relevant information to allow more informed decision-making and to drive continuous improvement in support of corporate goals,” Williams says.

So what should we measure?

A good place to start is the effect of good maintenance on output, such as the cost per unit of product, and applying such key performance indicators (KPIs) as: • OEE (overall equipment effectiveness) – availability output efficiency multiplied by quality.

• MTBF (meantime between failures – total hours divided by the number of failures.

• MTTR (meantime to repair) – total downtime divided by the number of failures (useful only when root causes of failure are identified).

• Inventory turnover – use computerized maintenance management system (CMMS) capabilities with a failure code field and an area for tracking inventory turnover (in Canada 1½ times per year).

Leverage technology. CMMSs with

their many bells and whistles are notoriously underused. Among their many benefits, they facilitate the integration of different levels within and outside an organization for information sharing.

In a recent article, David Berger, a principal with Western Management Consultants who is an expert on CMMS technology, says maintenance departments must ensure basic CMMS modules are fully integrated. As a minimum, this includes work order control, preventive maintenance, spare parts inventory control and equipment history.

Berger points out that one advantage of integration between departments is that each plant can search the corporate database for a given part before purchasing from an outside vendor. This would keep enterprise-wide inventory levels to a minimum and improve lead times. And each plant determines the reliability of a given brand of equipment or component by accessing the history of another plant before purchasing it.

Now most CMMS vendors have built in the appropriate interfaces, Berger says electronic data interchange and the internet will accommodate electronic catalogues, the electronic transfer of quotations, purchase orders and invoices for spare parts, and contract maintenance purchases.

A CMMS package should provide information for fault analysis, root cause analysis, costing, work statistics and guidance for improvement. The quality of information is key to determining reliability.

In a presentation titled “Maximizing the Effectiveness of CMMS,” maintenance management specialist Richard Beer, president and practice manager of TRO Maintenance Solutions in Mis-

If used properly, a CMMS has many benefits that include data collection, processing and analysis, as well as planning, recording and reporting all maintenance activities. A system used effectively is proactive (preventing catastrophic failures), efficient (life-cycle management) and it encourages due diligence.

CMMS rules are consistency, standardization, coding structure, a system that goes from general to specific, keeping it simple, understanding the architecture of the software (parent/child relationship) and recognizing sorting of a database defaults in a natural order.

Beer cites two critical success factors in running an effective CMMS: it has to be seen as a corporate asset (senior management support); and it has to have defined goals and objectives.

Threats to maximizing the effectiveness of a CMMS are changing and uncertain company policies and objectives; frequent staff turnover; lack of, or poor, training; reduced staffing; lack of database reviews and audits; and outdated software. Remember that upgrades are always available.

This “new” approach to maintenance must be aligned to corporate strategy.

And there must be adequate feedback and validation. We need a fresh look at how to perform maintenance and at the tools and technologies available to derive the greatest benefits. Without state-of-the-art maintenance nothing will work – something that CEOs are well advised to remember.

Contributing editor Steve Gahbauer, an engineer, Toronto-based freelance writer, and former engineering editor of PLANT, attended the 8th Reinventing Maintenance conference in Toronto.

E-mail gahbauer@rogers.com.

Comments? E-mail JTerrett@plant.ca.

September/October 2011

11-10-07 10:00 AM

global ranking << Innovation

>> think lean

Add sALes To your vALue sTreAm give theM tools that aid custoMer needs

P

urchasing departments are looking for more dollar value, reduced lead-times and stress-free relationships with their suppliers. how do we accommodate them?

Begin by educating your sales team on the various attributes of your lean toolbox. then add the tools as part of your selling strategy. customer kanban is a great solution for both the customer and you. offer to place some products on kanban, which you will monitor from a remote location. one way to do it is to install a webcam over the customer’s inventory and monitor it constantly. you’ll get a jump on production before the purchase order arrives, and if the customer adds shifts, you can react quickly to the change in demand. if unusual demand appears from another customer, increase inventory to support customer “a” while freeing resources and capacity to satisfy the unusual demand from “B.” when you supply a significant piece of capital equipment, provide your customer with a simple tPM checklist supported with visual work instructions. nobody wants unexpected equipment malfunctions. your customer will detect potential problems early and take pre-emptive action without putting in a panic order for replacement parts.

Back in the office you need to break the cadence, which in administrative operations is well hidden since we pass information from computer to computer, or system to system. typically office personnel work to complete tasks on a daily basis. if you establish virtual gates during the day, chances are the information flow will increase proportionally; so instead of an eight-hour cadence (typical), work to four hours or two hours and watch your velocity increase on a regular basis. logistics is the muscle that binds all of the stakeholders together but does not often get the marquee status it deserves. recently wal-Mart announced it was taking control of logistics to retrieve products from its suppliers. lean is all about opening capacity but more importantly it’s about increasing product flow velocity. once you have designed and established the cadence of your material flow, only then does the application of lean tools truly begin to make sense. look at material conveyance methodologies both inside and externally to see if they resemble a “cab service” or a “bus route.” if it resembles more of a cab service you have a significant opportunity to achieve efficiencies and migrate to a bus route.

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

Comments? e-mail JTerrett@plant.ca.

www.plant.ca

17-19-PLNT05v1.indd 17

Competitive disadvantage why we’re falling Behind as innovators and what to do aBout it

By Matt Powell

C

anada’s position among global innovators is an ironic one. A recent World Economic Forum report on global competitiveness ranked us 12th out of 142 countries. That looks pretty good on the surface yet countries (such as Denmark and Finland) with much Ouch. When it comes to innovation, Canada has been decked by smaller peer nations such smaller populations, less venture capital and lower as Switzerland and the Netherlands.

PHOTO: THINKSTOCK ranked education systems outperform us. commercialize a product or service is pretty good,” he says. “In Our education grade is seventh, but when it comes to innovaCanada, a lot of investors will ask ‘well do you really need $10 tion performance we’re ranked 14 out of 17 while our capacity million? How about we give you $5 million?’” for innovation places us in 24th place and 71st in the nature for Canada, he says, is very much like Europe. Businesses competitive advantage category. depend on governments to provide tax breaks, subsidies and So why are we racking up a creative deficit and sliding down incentives. The US has a much better track record because the the innovation ladder? One reason is the competition. China money to get innovations to market flows more freely. and India are expanding their competitive advantages from low “Canada struggles significantly when it comes to getting its inwage to higher value. Both have both ramped up R&D efforts novations to market, and that relates to a lack of capital. We’re and formed numerous joint ventures with other international an intelligent population with a lot of great ideas, but you have companies. China, for instance, has formed a 50-50 venture to look at the system as a whole,” he says. “In the US, especially valued at $84.5 million between state-owned Shanghai Automowhen it comes to dealing with universities, there’s a greater tive Industry Corp. (SAIC) and General Motors’ new technology incentive for schools and companies to partner because of the centre – a 65,000 square-metre facility. Once completed, the strong technology transfer practices US universities have.” facility will have 62 test labs and nine research labs that employ American universities typically work deals with companies more than 300 people. to get in on the financial pay-off once the product or service is “The Chinese are smart. Whenever they get a project like this commercialized. coming into their country, they make sure it’s a joint-venture,” says Niles Billou, an assistant professor at the University of Western Ontario’s Ivey School of Business. “For the past 20 to Technology investments needed 30 years, they’ve been slowly picking up these technology skills Another impediment to Canadian innovation is a lack of technolfrom companies around the world.” ogy investments, says Jim Milway, executive director at the UniBillou says it’s inevitable China will start climbing the value versity of Toronto’s Institute for Competitiveness and Prosperity. chain, putting the heat on Canada to boost its innovation com“If you’re going to be more innovative and productive, you mercialization efforts. need to bring in technology – it’s like a virtual circle.”

“Innovation is not the same as research and unfortunately Investments in technology have fallen by 37% in the last 10 a lot of people equate the two,” says Peter Fries, CEO of years, according to Canadian Manufacturers & Exporters’ AUTO21, a University of Windsor research agency focused (CME’s) Invest to Grow report. on developing innovative relations between academics and Milway suggests this lack of investment reflects manufacturindustry. “In my book, research is a function of innovation, but ing scale. Investing in technology seems simple enough for the innovation process hasn’t been completed until a process or bigger facilities that produce more, but it requires a significant a product is commercialized, or it’s creating jobs. Otherwise it’s bankroll to spend on improving processes, buying new equipjust new knowledge.” ment, creating new jobs and training workers.

Innovation requires knowledge deployment and while “If you don’t have the technology, it’s hard to justify having a Canada’s universities haven proven to be great sources of new big plant, but if you don’t have a big plant, it’s hard to invest in knowledge, there continues to be a disconnect between the technology. It’s a logjam more Canadian businesses are having knowledge and applying it to something that will actually make to deal with that comes from increased competition from interit into the marketplace. national markets,” he says.

“We create about 4% of the world’s new knowledge, but we Canadian businesses also have difficulty acquiring the capital don’t do very well in the metrics of innovation related to job needed for R&D and technology from either venture capitalists creation, wealth creation and progress for our companies, or government sources. which essentially drive the economy,” says Fries.

“A lot of these people responsible for innovation aren’t asking The Conference Board of Canada’s 2010 Innovation Catafor subsidies, they’re indirectly asking for investors to assume lysts and Accelerators report suggests Canada’s businesses the risk involved with bringing these products to market, which continue to struggle to acquire capital and suggest government a lot of Canadian firms struggle to find,” says Martin Lavoie, help is insufficient to support both R&D and innovation efforts.

CME’s director of manufacturing, competitiveness and innovaOf the 181 firms surveyed, 54% of them said they’ve struggled tion policy. to acquire sufficient capital to invest in innovation, 24% said Canada is ranked at 21 out of the 23 OECD countries when there’s not enough in-house talent and 24% say government it comes to direct support for private R&D funding, and Lavoie subsidies aren’t enough. says that’s a major problem.

Billou suggests those numbers are an issue for Canadian firms Part of the solution may be getting universities and colleges when it comes to securing funding from willing venture capitalists. to share the risk of bringing Canadian innovations to market.

“If you go to an American venture capitalist and ask for $10 “A lot of companies say it’s hard to work with universities million, the likelihood of you getting that money to build and Continued on page 18

Canadian PLANT 17

11-10-07 10:01 AM

Innovation

>> global ranking

develop export strategies to expand into new markets Continued from page 17

because they don’t own the technology, taking all the risk out of their hands,” he says. “Creating a situation where the university has to assume some of the risk may actually increase a business’s willingness to get more involved with our education system, which has proven to be one of the best in the world.”

Lavoie says the Canada Revenue Agency’s (CRA) Scientific Research and Experimental Development (SRED) tax credit is becoming increasingly useless because firms can’t access it when its needed most, and the rules are narrowing on the scope of eligible R&D activities.

Indeed, the CRA recently proposed changes to the SR&ED that would ding private sector R&D because it narrows the definition of technological advancement to core technologies, calling for the exclusion of virtual prototyping and evaluation processes.

CHANGING THE SHAPE OF PETROLEUM TRANSFER HOSE

Plicord ® ExtremeFlex ™ Petroleum Transfer Hose

But incremental improvements in engineering are necessary to continue process and product innovation and productivity growth.

Lavoie says making SR&ED more difficult to access will never resolve the issue of private R&D in Canada.

“And last time I checked, we were still lagging most other OECD countries.”

Milway suggests that Canadian firms need to focus more on developing export strategies to enhance productivity and create flexibility when it comes to expanding into new markets, much like China has done with GM.

Becoming big players “If you look at Canada’s biggest players, they were exporting within five years,” he says. “Nowadays, if you go to a venture capitalist with an idea, you better have an export plan as well because you won’t be very successful if you don’t.”

So what needs to be done to overcome all these impediments to more advanced innovation? Here are some suggestions from the experts: • Competitive taxes. In a report for C.D. Howe, Mark Parsons suggests governments focus on market “pull” factors by ensuring taxes on income derived from intellectual property and the production of new products are kept at internationally competitive levels.

“The government needs to set the table and create an environment that ensures Canada is as competitive as it can be; to force firms to innovate, or they die out,” says Milway.

• Tax credits. The CRA needs to avoid narrowing the scope of what is considered technological advancement and use the review of the current system as an opportunity to drive innovation and productivity, according to Meyers in an open letter to the CRA. He says without the review, accumulated tax credits will be useless, sending much of Canada’s R&D efforts offshore. Canada will end up as a black spot on the world’s innovation map for large multinational companies looking to invest here.

“Tax credits like SR&ED are important,” says Lavoie.

“This is the only program remaining that supports private sector R&D in Canada except for the Strategic Aerospace and Defense Initiative (SADI), which is only accessible to the aerospace and defence sectors.”

• Increase global partnerships. Like China, de-

Superior product engineering, unique product design and longer hose life all add up savings for you.

For more info, call 1-888-275-4397 or visit www.goodyearep.com/ExtremeFlex The GOODYEAR (and Winged Foot Design) trademark is used

by Veyance Technologies, Inc. under license from The Goodyear Tire & Rubber Company. Goodyear Engineered Products are manufactured and sourced exclusively by Veyance Technologies, Inc. or its affiliates. ©2011 Veyance Technologies, Inc. All Rights Reserved.

18 Canadian PLANT

17-19-PLNT05v1.indd 18

Matt Powell is an online reporter with CanadianManufacturing.com. E-mail MPowell@canadianmanufacturing.com.

Comments? E-mail JTerrett@plant.ca.

>> freight

The new Plicord® ExtremeFlex™ sets the standard for a flexible and lightweight designed hose.

With dramatic flex fatigue results, our lightweight, extremely flexible hose offers corrugated design at non-corrugated prices.

Goodyear_ExtremeFlex_Halfpage_CPM.indd 1

velop joint ventures focused on innovation that would drive productivity in Canada’s plants.

“Innovation isn’t just about the new product, it’s not just about producing the next Blackberry,” says Watt.

“Incremental innovation is more important to the functioning of the economy.”

Milway says increasing the global scope of Canadian business would also open more opportunities for firms looking to acquire capital for investment in technology that increases productivity and boosts innovation.

“If you have a business plan that doesn’t explain how you’re going to take over the world, you won’t be very successful in today’s circumstances,” he says. “And I suspect you’ll have a rough go raising funds. The good firms are going to find the venture capital and they’ll succeed.”

• Post-secondary research. Canadian companies need to take advantage of Canada’s relatively strong post-secondary research programs, but at the same time find a way for the government to force universities to assume some of the risk associated with developing new products to drive innovation.

“It’s difficult for a company to directly invest in the innovation process because it won’t know where the people innovating will end up – it’s extremely risky,” says Fries.

Canada certainly has the foundation and the tools – with a bit of tweaking – to improve its global position as an innovator nation. The simple answer is to bring industry, the universities and government together and devise a strategy that harmonizes the key elements necessary to consistently shepherd great ideas evolving from a few scribbles on a napkin to R&D and, finally, a marketable product that the world can embrace. It all comes down to the players and their willingness to work together, invest in technology and stare down the risks. Not that there’s a lot of time to think it over. Nations further down the value chain like China and India are coming up fast and will not hesitate to step on the maple leaf to occupy a more forward position as innovation leaders.

11-05-23 11:15 PM

r&d PArTNers deveLoP Co2-busTINg semI TrAILer sales Potential for north aMerican freight: $1.5B PoINTe-CLAIre, Que.: a new, aerodynamically improved semi trailer developed by three industry partners and université laval will reduce co2 emissions and lower fuel costs related to north american freight. not-for-profit r&d firm fPinnovations, trailer manufacturer Manac and cascades transport inc. have come up with a trailer that reduces aerodynamic drag by 12% for fuel savings of 6%, and could potentially New streamlined semi trailer designed by FPInnovations, Manac and Cascades. eliminate 14-tonnes of co2 emissions per unit.

PHOTO: FPINNOVATIONS the partners said it will not contravene transport the first phase of the project, which began in february, cost regulations, which will allow for the trailer’s “flex$100,000, with $50,000 in funding coming from the Ministère des ible integration” into canada, the us and Mexico. transports du Québec. the transportation arm of cascades, ( the recycled paper to save on the cost of the prototype, cascades provided a products manufacturer) set the design criteria for the project. “wedge” trailer where the floor is sloped five inches from front “we wanted to keep the same volume as a standard trailer, to rear. have standard door sizes and the capability to back up to the “this allowed us to slope the last top section of the trailer by docks so the trailer is easily loaded and unloaded,” said fredsix inches (grubbing an inch in the door frame),” said Boutin. eric Boutin, an engineer and researcher with fPinnovations in “we wanted to keep a standard door opening of 109 inches.

Point-claire, Que.

September/October 2011

11-10-07 10:01 AM

automotive << Innovation

reducing diesel emissions r&d taKing catalytic converters to the neXt level By roBert hayes

W

hile the modern automobile plays a key role in our society, the downside of the combustion engine – emissions of carbon monoxide (CO), hydrocarbons (HC) and oxides of nitrogen (NOx) – came to a head in 1970 with the passage of the Clean Air Act by the US Congress.

Early catalytic converters, used from 1976 to 1979, controlled only the CO and HC, which were oxidized to carbon dioxide and water using a platinum catalyst. The second generation controls CO, HC and NOx. Thanks to this three-way catalyst, a modern gasoline-powered vehicle emits less toxic emissions than a smoker.

But global warming and the need for greater energy security is fuelling the search for even more the fuelefficient vehicles, and the most readily available option is the diesel engine, which offers much better fuel economy than the gasoline engine. Although diesel suffers from a poor image in North America, the fuel has long been recognized in Europe as a viable alternative to gasoline for passenger cars. Controlling the emissions from a diesel engine is more complicated than it is for a gasoline engine because diesel runs with significantly more oxygen (typically 5% ends up in the exhaust), which makes the removal of NOx a real challenge. Not surprisingly, R&D in this area is focused on NOx control.

Although there are many systems under development or in use, the most popular uses a process called selective catalytic reduction (SCR), which relies on the injection of ammonia into the exhaust. It has several parts. The first is the diesel oxidation catalyst that removes the CO and HC, and converts NO to NO2. Next is the diesel particulate filter that traps and burns small particles of carbon emitted from the engine. Then a small amount of a urea and water solution is injected into the exhaust gas stream. The urea is converted into ammonia, which then reacts with NO and NO2 to produce nitrogen gas. Finally, an ammonia slip catalyst is used to eliminate any excess ammonia present in the exhaust.

These complex catalytic systems have required

intensive R&D efforts from key global players such as Umicore, Johnson-Matthey and BASF. Most of the work is done in the US, Germany and the UK, although each of these companies has manufacturing plants around the world, including plants in Canada.

Because government regulations are becoming more stringent, there’s a pressing need to improve converter performance. Computer-aided design and simulation tools provide a better understanding of the physical and chemical processes, and allow virtual prototyping to

develop a better product.

In Canada, research funded by the AUTO21 Network of Centres of Excellence is developing sophisticated and efficient computer tools that will realize this goal.

The team, which includes members from the Universities of Alberta and Waterloo, and Ecole Polytechnique de Montreal, is also developing chemical kinetic models for the diesel oxidation catalyst to improve converter performance. This work will be used in the development of the next generation of catalytic devices.

The next big R&D challenge will be to design converters for alternative fuels, especially natural gas and its emissions, which are more difficult to destroy.

Robert Hayes is a professor at the University of Alberta and project leader for the AUTO21 Network of Centres of Excellence.

Comments? E-mail jterrett@plant.ca.

Advertorial

Make your mark with accuracy, speed and precision

Laser marking offers hassle-free identification Every year, more manufacturers in Canada switch from inkjet identification systems to laser marking—and they have plenty of good reasons. From reliability to safety, laser marking offers clear advantages, according to Greg Griffin, General Manager of North American Laser Systems Inc. in Mississauga, Ont. “The new fiber lasers are pretty much maintenance free,” says Griffin. “Some of them have life cycles of 40-50-plus thousand hours before they need any servicing. Plus, they’re becoming very low cost. They used to be $100,000 and now they're getting as low as $15,000 to $20,000 (CO2 laser) for some systems.”

In industries such as automotive, manufacturers can’t take the chance of identification smearing and rubbing off—problems associated with inkjet systems. North American Laser Systems has therefore found a big uptake for its solutions among customers such as Magna, Loreal Cosmetics and GM. “With inkjet, the printers get gummed up, operators have to replace the ink and clean the heads and store the inks and solvents in fireproof cabinets,” Griffin says.

“Lasers don’t require any of that. They’re just using optical light to burn the surface of the product.”

According to Griffin, laser marking is: RELIABLE: It provides fast, repeatable, permanent marks on a wide variety of materials, including metals, non-metals, plastics, glass, wood and paperboard.

These surfaces can also be painted, oily and plated.

ENVIRONMENTAL: Laser marking uses no consumables other than electricity. By contrast, inkjet requires ink and solvents, which create vapors and must be properly stored and handled.

VERSATILE: A wide variety of marks can be produced, including readable codes, serial numbers, logos, barcodes, time/date and 2-D data matrix. The marks can be applied while the product is static or in motion.

DURABLE: The marks produced by lasers are permanent, non-contact and abrasion resistant. With lasers, you avoid the distortion caused by smudging and rubbing of inkjet identification.

LOW COST OF OWNERSHIP: While laser marking systems may cost more upfront, the return on investment is far higher than that of inkjet systems, due to more uptime, less maintenance, no consumables except electricity, and consistent quality of marking.

North American Laser Systems offers turn-key custom laser solutions that are reliable, effective and affordable. Service staff are only a phone call away and you can talk to one of our live technical reps with free support. Call (905) 542-3350 today, or visit http://www. northamericanlasers.com.

✓

✓

the front top corner of the trailer is rounded. the modifications were only made in the top portion of the trailer.” a 1:24 mock-up underwent wind tunnel tests at the Mechanical engineering department at université laval and a 1:15 version was built for further tests in ottawa. the trailer is now being tested on fPinnovation’s Pit Program energotest track in Blainsville, Que. Boutin said the first prototype had smaller wheels and required a ramp to get it to dock level. “if the performance of this trailer at energotest proves to be positive, the design would be totally redone, including the suspension which will be capable of lifting the back of the trailer at the dock level.” he said the project’s second phase will cost an additional $100,000. with a design in hand, Manac will then figure out how to produce it on a manufacturing production line.

Boutin said if all goes well, commercialization of the project could begin “roughly” by next spring. and what’s the sale potential for this new trailer in the $1.5 billion north american market? the partners estimate about 64,000 units per year.

www.plant.ca

17-19-PLNT05v1.indd 19

✓ ✓ ✓

2650 Meadowvale Boulevard, Units 6&7 Mississauga ON, Canada L5N 6M5 Telephone 905-542-3350 | Fax 905-542-9732 www.northamericanlasers.com www.sales@northamericanlasers.com

Canadian PLANT 19

11-10-07 10:01 AM

Technologhy

>> Nano Optics

Security goes nano-scale

BUTTERFLy EFFEcT READy FOR TESTiNg ON BANkNOTES A banknote sample featuring Nanotech’s Morpho butterfly effect.

A

Notes

Inks

up to hundreds of millions of nano-holes.

These holes can be applied to a variety of materials.

The technology is presently tasked for a Last Modified 5-27-2011 9:35 AM covert application as a hidden authenticaPrev. Users Adam Savage tion method. Clint Landrock, the comPLANTClient STAFF REPORT Sommers Cyan Magenta pany’s chief technology officer, said such Bleed None Yellow Trim 2.25” x 10”company intendsBlack an application would require specialized Vancouver to Live None optical equipment to locate and view the throw a wrench into the bestScale None data or images. But the effect also works laid plans of banknote counNone overtly, and can be made easily detectterfeiters worldwide with its nanoable to the naked eye. security technology currently in the Features of the master stamp have been final stages of development and close Fonts & Placed Graphics Fonts replicated on banknote-grade polypropylto commercialization. But that’s just Myriad (Bold, Roman, Bold Italic, Italic), Helvetica Neue LT Com (53 Extended) ene, polyethylene and acetates. Several for starters. Nanotech Security Corp.

Links third parties are now asking for commersays the technology will work for any Sommers_Logo_4Col.eps (Up to Date), winco.tif (Up to Date; CMYK; 8713 ppi), IMG_7681.tif (Up to Date; CMYK; 1033 ppi), cial trials so Nanotech Security is adding manufacturer producing products iStock_000003933154Large.tif (Up to Date; CMYK; 3179 ppi) three nano-optics specialists to its team. that require authentication marking.

A team of researchers from Simon Fraser University in Burnaby, BC Master shim developed the nano-optics technol“Proving that our technology can be ogy the company has applied to re-created successfully with the use of a create what it describes as the first master shim was a crucial step in making master shim (or die) manufacturers it available for commercial use to our would use to reproduce nano-holes potential partners,” says Doug Blakeway, in a variety of materials (such as CEO and chairman of Nanotech Security. banknotes) in large volumes, quickly Counterfeiting is a $600 billion problem and cost-effectively without changing worldwide, which is costing US busithe production process. nesses $250 billion a year, according to the The soon-to-be-deployed technolInternational Anti-Counterfeiting Coalition ogy replicates nano-scale structures Inc., a Washington, DC-based non-profit orsimilar to those found on the iridesganization. Canadian businesses are losing cent wings of the Morpho butterfly. $500 million a year to counterfeiting.

The company says achieving this Nanotech’s technology will go a long shimmering effect involves patented way to fooling counterfeiters. It’s hard algorithms combined with electron to break: to do so, the company claims, and ion beam technology that create crooks will require highly-specialized

Setup

With reliable standby power from Sommers…

Vancouver company applies Simon Fraser University R&D to counter Job 1911-126E File Name 1911-126E PlantMagazine 2.5x10 4C.indd counterfeiters.

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

• Over 200 systems in-stock for • • • • • • •

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

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

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

Sommers, Canada’s Power House in Generator Systems

PHOTO: NANOTECH SECURITY

equipment costing tens of millions of dollars, patented algorithms and the scientific expertise to replicate such unique nano-structures.

The shim is customizable: Nanotech controls and specifies which colours are created when the angle of view is changed, and the ability to replicate images. Sizes can range from microns to centimetres.

The focus is on banknotes now, but the technology could also be used for a wider range of applications, “anywhere you see holograms, barcodes, RFID, or Interac chip cards in use today,” says Landrock. “Our Notes technology can be applied directly to the finished product.”

Examples include computer software packages, DVDs, CDs, hard drives, computer components, and batteries, or highend consumer goods such as sports wear and equipment, clothing or jewellery, pharmaceuticals, tobacco and alcohol.

And it can be applied to high-end security documents such as passports, travel visas, security cards, access cards and tickets to events.

Blakeway says Notes is very close to commercialization. “We anticipate beginning work with several major manufacturers and suppliers to run our shims through their mastering processes and imprint onto their substrates. If this final phase proves as successful as we believe it will, we’ll be targeting 2012 for [the technology’s] first commercial use.”

Comments? E-mail JTerrett@plant.ca.

Why invest the time to get to know our clients? Because we care to fully understand what you’re up against and where you want to go. We gain insight and real understanding so we can help you achieve your ambitions.

it all starts with building a great relationship.

Strong relationships with over 2,000 manufacturing clients across Canada have proven our commitment.

BDO. MORE THAN YOU THINK.

Call us today.

1.800.690.2396 sales@sommersgen.com sommersgen.com Authorized

20 Canadian PLANT

20-PLNT05.indd 20

Assurance | Accounting | Tax | Advisory www.bdo.ca

Distributor

September/October 2011

11-10-07 11:54 AM

Product Showcase << Departments

Workplace Health and Safety

>> Plantware HMI for HArsH eNvIroNMeNTs

oN GuArD for sTATIC

Harsh conditions in processing plants are hard on visualization systems. Control room HMI that can take the heat and whatever else hazardous locations offer on the process floor is now available with VisuNet operator workstations. And no additional software licensing is needed.

Process automation The KM915 and KM919 (15 in. and with KM915 and KM919 19 in. monitors) from Pepperl+Fuchs, a operator workstations. manufacturer of process automation in Twinsburg, Ohio, are encased in a thin, but rugged NEMA 4/4x stainless or painted steel housing that will weather washdown environments.

Continuously welded seams are ground smooth to mitigate heat without venting or cooling fans.

One of the three internal KVM extenders allow operators to work safely up to 400 m from the server. Small transmitter and receiver pairs send keyboard, video and touchscreen or mouse signals while maintaining high quality video resolution. www.pepperl-fuchs.us

The Earth-Rite TELLUS II from Newson Gale Inc. provides constantly verified static ground monitoring for drums, IBCs and other mobile or portable equipment used in hazardous area operations.

When used for handling, transporting or mixing of combustible powders or liquids in any industrial flammable or combustible environment, a green flashing LED confirms a positive connection to ground and also provides a pair of output contacts for interlocking with pumps, valves and other controls or alarm devices.

Operating in real time, the system confirms that a positive connection to ground remains intact for the duration of the operation. As long as the resistance of the connection to a designated ground exists and remains below the generally accepted international safety standard of 10 ohms, the pulsing LED display inside the hazardous area assures the operator there’s no buildup of dangerous static electricity.

If resistance rises above 10 ohms or the ground point is lost, the display is de-activated, warning the operators that a dangerous condition could be developing. Additionally, an interlock mode (a pair of changeover contacts) is activated, sounding an audio alarm or initiating an automatic safe shutdown procedure.

The system includes a power supply unit and controller that are mounted in a safe area 500 m away.

Newson Gale is a Jackson, NJ supplier of static control technology. www.newson-gale.com

sMArT skIN CAre Instrumented system for process plants.

ProsAfe-rs GeTs AN uPGrADe Yokogawa Electric Corp. has enhanced its ProSafe-RS safety instrumented system for plant operations in oil, natural gas, petrochemical and other process industries.

Temperature direct input modules don’t require a converter to process the voltage signals from a temperature sensor, allowing for a more compact design.

Access control and operation history management software restricts the operations that can be performed by engineers and records a log of their activities. This makes it easy to identify the causes of problems.

Compact terminal boards that connect to cables from field devices are approximately 60% smaller than previous terminal boards and they install horizontally or vertically for the most effective use of available space.

Yokogawa, based in Sugarland, Tex. manufactures process control devices and provides automation services and solutions. www.yokogawa.com

The Canadian Centre for Occupational Health & Safety (CCOHS) reports some US statistics show skin disorders comprise more than 35% of all occupationally related diseases. In Ontario, there have been 1,000 compensation claims reported annually for contact dermatitis.

Rubbermaid Commercial Products has developed a comprehensive skin care solution for plants called the ProRx Industrial Skin Care System. It allows for the highest number of hand washes – up to 3,333 per refill – and Rubbermaid, a Winchester, Va. manufacturer of products for commercial and institutional markets, says the adjustable portion control lowers the cost-per-use by up to 60%.

The lotion cleans light soils to heavy grime. Unique formulas with skin-friendly, solvent-free ingredients are pH balanced and enriched with a moisturizing complex. The system also provides pre- and post-work creams that help keep skin protected.

Rubbermaid www.rcpworksmarter.com ProRx dispenser.

oN-off DeLAy reLAy WAGO Corp.’s 859 DIN-rail timer relay module offers on-/off-delay timer modes and multiple time ranges for diverse applications such as switch and package de-bounce sensors.

The 6-mm 859 carries a top-mounted potentiometer for fine-tuning delay time without removing the unit from the DIN-rail. On-delay mode prevents simultaneous excess inrush currents by delaying machine startup. Off-delay mode enables auxiliary components, such as fans, to continue operating after machine shutdown.

The timer comes with electromechanical or solid-state relay outputs.

Wago’s 859 DIN-rail Four standard time delay ranges from timer relay module.

0.2 seconds to 10 minutes. Optional time delay ranges of 2.0 seconds to 35 minutes are also available.

Input voltage ranges from 19.2 to 28.8 VDC; outputs are 6A/24 VDC (electromechanical) and 2A/24 VDC (solid state).

And terminal block housing with jumpering and Cage Clamp spring pressure technology ensures terminations are maintenance-free and vibration-proof for conductors AWG 28 to14.

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

ProTeCT your sAfeTy GeAr

Heavy duty emergency respirator case.

Sensitive safety equipment such as respirators need to be protected. Allegro Industries’ Hi-Viz Heavy Duty SCBA wall cases shield gear from dust, moisture and damaging plant environments.

The single and dual unit models are rugged but light for easy installation, and the heavyduty emergency respirator case (yellow or green) holds up to two five- or 10-min EBAs. The Deluxe and Standard wall cases made from corrosion-resistant ABS with ultraviolet inhibitors, protect respirators against damaging plant and window environments.

Nonmetallic hinges and latches prevent rust, while a rubber door seal protects equipment from dust and moisture.

Allegro Industries, based in Garden Grove, Calif., is a supplier of safety equipment and ergonomic products for the workplace. www.allegrosafety.com

IT’S MORE THAN A

WORK STATION...

GreeN CLeAN MACHINe PArTs The Bio-Circle system from Montreal-based Walter Surface Technologies uses bioremediation rather than solvents to clean machine parts.

The cleaning system includes a washbasin, bioremediation cleaning solution, internal filters to catch debris and accessories such as nozzles and brushes.

Dirty parts are placed in the sink and then soaked with the solution, scrubbed and rinsed clean. The oil and grease detach from the part’s surface, fall in the tank and are then completely consumed by the micro-organisms inside the liquid. This eliminates the need for ventilation hoods, breathing masks and waste disposal or recycling. www.walter.com

www.plant.ca

21-PLNT05.indd 21

2011 SPEC® Catalog Select from many new products in Associated Spring-Raymond’s SPEC® 2011 catalog, including new lines of gas struts and 316 Stainless Compression, Extension and Torsion springs for harsh-environment and medical applications.

Associated Spring-Raymond, Barnes Group Inc. www.asraymond.com/spec-spd/

...IT CAN SAVE UP TO 50% IN FLOOR SPACE. Building workstations with the Creform System of pipes and joints can significantly reduce the amount of floor space needed.

Build it for one person, a team of six or sixty, there’s no need to use more space than necessary to complete the task.

Over 700 Creform components help you expand within existing floor space.

www.creform.com • 800-839-8823

CRE-356 3.375x4.875.indd 1

TALK TO YOUR CREFORM SALES ENGINEER ABOUT 42MM PIPE, DOUBLE YOUR LOAD W/O DOUBLING YOUR COSTS.

Canadian PLANT 6/6/11 21 12:08 PM

11-10-07 10:03 AM

Departments

>> Postscript

Buy American 2: Is our luck running out?

By Todd HirscH

S

o far, 2011 has not followed the script. Canada was supposed to have been the economic leader of the G8. It was widely expected that our economy – bolstered by solid banks and commodity prices – would sail through 2011 mostly unscathed by the global malaise. Now teetering on the edge of a recession, Canada’s economy has been dealt yet another unforeseen blow from none other than President Barack Obama.

are five reasons why there could be trouble getting “anThere exemption… ” With the proposed US$447-billion American Jobs Act, Obama is desperately trying to deliver CPR to his own stalled economy. Included in the bill is more than $100 billion for the renovation of schools, the construction of roads and bridges, and improvement of transit infrastructure. But the stimulus spending comes with a condition: all materials must be sourced in the US. Been there, done that, got the T-shirt.

In 2009, a similar round of stimulus spending was splashed on the US economy with the same directive to purchase from American suppliers, but the Canadian government was able to secure an exemption, which expired at the end of September.

This time, Canada may not be so lucky.

There are five reasons why there could be trouble getting an exemption.

First, America is more desperate than

it was two years ago. Back in 2009, the unemployment rate was around 7%.

Now, it’s stuck above 9%. Even though the Buy American provision will result in less trade and economic activity globally, Americans will feel like they’re doing something to protect themselves.

Second, the provision will target jobs in very vulnerable sectors. In the rustbelt states of Michigan, Ohio, Indiana and Pennsylvania, jobs have vanished in manufacturing and construction. The Buy American clause targets companies bidding on infrastructure and construction projects, providing a competitive edge to these sectors in states that are especially valuable for Obama.

Third, the Tea Party Republicans in Congress will probably support the Buy American provisions in the bill. They are all about God and country, period.

If trade restrictions can save even one American job, they would gladly impose the pain on the rest of the world – even a close trading partner such as Canada.

No sympathy Fourth, Canada is not garnering much sympathy in the US these days. For one thing, our economy is still in better shape and the national unemployment rate is nearly 2% lower than it is stateside. That may work against Ottawa when it tries to argue for another exemption. Canada has also been in the US news lately for another issue: the Keystone XL pipeline expansion and the plan to ship bitumen to the US Gulf of Mexico. This has been hotly opposed in Washington, and some high profile celebrities have added their names to the protest. Even the Dalai Lama has weighed in against the pipeline – and by extension, against Canada.

Fifth, the president is a little more than a year away from the November 2012 election, at which time he will ask American voters for a second four-year mandate. He’s currently down in the polls. Many Americans voted for him in 2008 believing that he would deliver change. Unfortunately for Obama, the global economy has conspired against him and the US is in worse shape than it was when he won his first election. He needs to be seen to be doing something that will help get Americans back to work. Jobs saved in Hamilton or Regina won’t do him any good.

The Canadian government was caught blind-sided by this one. And now it’s all hands on deck in the Department of International Trade. Minister Ed Fast is trying to get another exemption but it may be more difficult this time around – one more piece of bad news for a country that’s being sideswiped by a very ugly global economy.

Todd Hirsch is senior economist with ATB Financial in Edmonton.

Comments? E-mail JTerrett@plant.ca.

22

22-PLNT05.indd 22

September/October 2011

11-10-07 10:04 AM

Advantage #19 Getting the job done while saving money Brian manages a large warehouse and constantly needs to maintain the cleanliness of his building as well as managing his budget. That’s why Brian turns to Staples Advantage for a dilution control system. With a dilution control system, Brian can dispense exactly the quantity of cleaning solution that he requires at a significantly lower per unit cost. That’s a clean Advantage for Brian who likes the effectiveness and savings that he gets from Staples Advantage.

Staples Advantage Your business-to-business Advantage staplesadvantage.ca

FULL PAGE ADS.indd 23

11-10-12 1:53 PM

MECHANICAL DRIVES

SEVERE Duty CoRRoSIoN PRotECtIoN the

F-SERIES SNuggLER®

Parallel Helical gearmotors SEW-Eurodrive’s F-Series parallel helical gearmotor lives up to its name as the ideal drive for tight space conditions. This compact drive, with its multiple mounting configurations, is a rugged alternative to right angled gearmotors.

SEW-Eurodrive has introduced a new line of aseptic gearmotors to meet the high levels of hygiene crucial to the production of food and beverages, as well as the stringent demands of the chemical and pharmaceutical industries. SEW has solved this challenge with the aseptic design of helical, parallel shaft helical, helical-bevel and helical-worm gearmotors made entirely of smooth stainless steel, cooled by pure convection cooling — eliminating conventional fan and cooling ribs, which prevents the build-up of germs and bacteria on the surface and allows for easy regular cleaning.

corroSion Protection Product range Power ratings from 0.34 to 2.0 HP Can be mounted directly onto R, F, K, S-Series gear units in all standard positions

F-SerieS Product range Power ratings from 0.05 to 336 HP Output speeds from 0.06 to 464 rpm (based on 4 pole motor) Output torques to 159,300 lb-in.

High Efficiency. Low Cost.

Engineered Together into SEW’s Popular New DR Series.

K-SERIES

Helical-Bevel gearmotors SEW-Eurodrive’s K-Series right angle helicalbevel gearmotors deliver maximum performance and reliability with 95%+ efficiency and high torque density. Durable gearing designed for long service life makes this drive an ideal choice for demanding around-the-clock applications.

Meets NEMA & IEC Standards: The DR motor meets and exceeds international energy standards and comes in two efficiency levels: DRE High Efficiency (IE2), and DRP Premium Efficiency (IE3), which meets EISA 2007 and NR Can Energy efficient standard (CSA C390). The DR motor meets the specifications of NEMA MG1-2006 part 31.4.4.2, regarding voltage spikes and IEC Design H standards.

Increased Power: SEW offers more compact copper-rotor variants of the DRE and DRP induction motors in addition to the traditional aluminium-rotor motors-thereby reducing losses in the rotor, and consequently allowing for increased power within one frame size.

K-SerieS Product range

Export Friendly: The DR Motor is available in metric formats for international export.

Power ratings from 0.05 to 615 HP Output speeds from 0.05 to 326 rpm (based on 4 pole motor) Output torques to 442,500 lb-in.

S-SERIES

Fail-Safe Brake: DR Motors offers an integrated mechanical fail-safe brake that is applied when a power failure occurs.

It is an electromagnetic, springloaded brake powered by DC voltage via a rectifier. The brake can also be released mechanically with either an automatic or manual brake release.

Integrated Encoder: The new built-in encoder is fully integrated into the motor, making it more compact and less expensive. The encoder is installed between the end shield and the fan and is connected at the terminal box, so it can be easily retrofitted.

Helical-Worm gearmotors SEW-Eurodrive’s S-Series right angle gearmotors offer helical-before-worm gearing combining durability with power-packed performance in a compact design that requires no motor belts or couplings.

S-SerieS Product range Power ratings from 0.05 to 46 HP Output speeds from 0.05 to 257 rpm

Versatile Mounting options: Now offering new mounting capabilities.

The motor can be foot-mounted and/or flange-mounted with numerous throughhole or tapped-hole configurations. A NEMA C flange is also available.

Output torques to 35,400 lb-in.

three Brake Sizes: As a cost saving feature DR Motors are available with a choice of up to three different brake sizes per motor size.

Washdown Resistant: Rated up to IP66, the DR series can be built to withstand the rigours of harsh washdown environments.

They can be also supplied with a forced cooling option.

SEW-Eurodrives’ DR Series of AC motors have been engineered from the ground up to meet the motor demands of the 21st century for continuous or long-running drive applications: like high efficiency performance that complies with international standards; a compact

AC MotoRS

and Brakemotors SEW-Eurodrive’s squirrel-cage motors and brakemotors deliver exceptional performance and reliability combined with low maintenance.

Designed for continuous duty under tough service conditions, these low-noise brakemotors are used wherever fast, safe braking is a major application requirement.

footprint that saves space; a modular design that features a detachable foot design to provide the same excellent braking performance but now in a stand-alone brakemotor configuration; and a simple, built-in encoder that can be easily retrofitted. What’s more, these versatile motors are integratable into SEW gearmotors, used as stand-alone motors or into decentralized control architectures.

Driving the world

ac MotorS Product range Power ratings from 0.25 to 100 HP 2-, 4-, 6-, 8-, 4/8-, 2/6-, 2/8-pole plus others Integral brakes to fit all frames

FULL PAGE ADS.indd 24

Toronto (905) 791-1553

Montreal (514) 367-1124

Vancouver (604) 946-5535

www.sew-eurodrive.ca

11-10-04 11:50 AM