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A 99 MEDIA PUBLICATION
VOLUME 12
ISSUE 02
OCTOBER 2012
PRICE 100
Best practice Traps and Management theory Fads Blind imitation of best practices in one company may not help others
Opinion
Moving up the value chain is imperative for auto component makers
Supply Chain
Supply chain and demand generation process need to be integrated
Management
A combination of multiple technology platforms has gained momentum
editorial Vol. 12 | Issue 02 | October 2012
Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: R Giridhar Managing Editor: P K Chatterjee Design Sr. Creative Director: Jayan K Narayanan Sr. Art Director: Anil VK Associate Art Directors: Atul Deshmukh & Anil T Sr. Visualisers: Manav Sachdev & Shokeen Saifi Visualiser: NV Baiju Sr. Designers: Raj Kishore Verma, Shigil Narayanan Suneesh K & Haridas Balan Designers: Charu Dwivedi, Peterson PJ Midhun Mohan & Pradeep G Nain MARCOM Associate Art Director: Prasanth Ramakrishnan Designer: Rahul Babu STUDIO Chief Photographer: Subhojit Paul Sr. Photographer: Jiten Gandhi Sales & Marketing Sr. Vice President: Krishna Kumar KG (09810206034) National Manager - Events & Special Projects: Mahantesh Godi (09880436623) Product Manager: Maulshree Tewari (09717597903) GM (South & West): Vinodh Kaliappan (09740714817) Regional Mgr. (North): Rajesh Kandari (09811140424) North: Madhusudan Sinha (09310582516) East: Jayanta Bhattacharya (09331829284) Production & Logistics Sr. GM - Operations: Shivshankar M Hiremath Manager - Operations: Rakesh Upadhyay Assistant Production Manager: Vilas Mhatre Ad Coordination: Kishan Singh Assistant Manager - Logistics: Vijay Menon Executive - Logistics: MP Singh, Mohamed Ansari & Nilesh Shiravadekar office address Nine Dot Nine Interactive Pvt Ltd Office No. B201-B202, Arjun Centre B Wing, Station Road,Govandi (East), Mumbai 400088. Board line: 91 22 67899666 Fax: 91 22 67899667 For any information, write to info@industry20.com For subscription details, write to subscribe@industry20.com For sales and advertising enquiries, write to advertise@industry20.com For any customer queries and assistance, contact help@9dot9.in Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd Plot No. 725 GES, Shirvane, Nerul, Navi Mumbai 400706. Board line: 91 22 67899666 Fax: 91 22 67899667 Editor: Anuradha Das Mathur Plot No. 725 GES, Shirvane, Nerul, Navi Mumbai 400706. Printed at Tara Art Printers Pvt ltd. A-46-47, Sector-5, NOIDA (U.P.) 201301
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Fostering Innovation
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ndian manufacturing sector has reached a level where the quality of the goods produced and the engineering technology used are often comparable with those in developed countries. However, we are yet to be truly competitive in the global arena, as our traditional root of competitiveness lies in low labour cost. Also, leaving aside a few companies, in general, we are still far off from an estabilished culture of innovation. Any innovation is not an isolated or abrupt incident, rather it is the outcome of a vivid observation of the system or process with deep understanding of the same – and applying analytical minds with an ardent intention to improve (not just change) the system or process for tangible benefits. Thus, basically it involves involvement with the system or process and at large with the workplace. Are we truly focusing on that? With the changing outlook of business, it is now well-understood and -accepted worldwide that any business activity in a country has to align its goal with the upliftment of the living standard of the citizens. In our urban or semi-urban areas, a significantly huge chunk of the population consists of people who are mostly working at some or other kind of plants and factories, thus, unless they get a reasonable income, effective education and essential facilities – the most fundamental criterion for innovation – ‘involvement’ will remain a far cry.
industry 2.0
P. K. Chatterjee editor@industry20.com
If we compare a manufacturing worker from a western country with his peer from India, we find the Indian man lacks a lot. Why so? Although a number of manufacturing companies have taken up initiatives in raising the living standards of their workers through different welfare schemes, except in very few cases, the schemes do not reach beyond a certain level – because still the concept – efficient and sincere workers are the assets of the company – is missing in most of the cases. The basic area where most of our manufacturing companies are yet to focus on is – to work on to raise the social dignity of the workers – wherein pay-packages matter a lot. Unless and until we come out of the idea that India has a huge population, so we can procure manpower at any level of pay scale as we wish, we will never be able to successfully build our innovative manufacturing workforce. An IT company staff proudly says that he is in IT industry, beside him a worker from the manufacturing industry feel hesitant to declare his occupation. So, it is the high time when the Indian manufacturing industry needs to focus on raising the social standard, image and capability of the workforce. Once capable people find the beginning of the change, they will join the manufacturing industries voluntarily. Then only true innovations in mass scale will occur in the industry.
- technology management for decision-makers | october 2012
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contents advertiser index National Instruments...................IFC Schneider.......................................... 3 BRY-Air Asia..................................... 7 Reillo PCI India Pvt Ltd................... 11 CHEP.............................................12-A India Summit...................................15 Omron Automation.......................48 Ace Micromatic............................ IBC GW Precision................................. BC
cover story 16 Should You Emulate Apple?
departments
Apple is today’s all-purpose innovation icon. A unique confuence of leadership, talent, strategy and technology has brought Apple extraordinary success and raises the question of how relevant a model the company can be for others
Editorial........................................... 01
Cover Design: Manav Sachdev
Product Update..............................44
blog 20 The Next Big Thing Sensors, being integrated into ever-more products and systems, will be a key driver for technology developments
26 Dwindling PE Investments PE investments in India in the second quarter of 2012 has decreased in terms of value and in volume
Loss of sales due to non-availability of products at the retailer end is one of the pricking issues for the pharmaceutical companies
Manufacturers in developing countries encounter more or less similar challenges
Auto component industry needs to explore markets and make strategic decisions based on FTAs
october 2012 | industry 2.0
supply chain 32 Unlocking the Potential
38 Automating the Sales Force
23 On the Verge of Transition
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Techwatch.......................................12
Winners will be those companies that successfully leverage the emerging market growth with import and export excellence
Order book volumes in the Indian manufacturing sector have increased solidly
As India and China lead global innovation, it is clear the emerging markets are no longer R&D ‘workbenches’ of the West
Industry Update.............................04
36 High Tech Inustry’s Challenges
sector update 22 Growing Indian Private Sector
market scenario 24 Emerging Markets
Advertiser Index.............................02
green manufacturing 28 Bio-based Economy
event report 42 Accelerating Business Growth
There is virtually no limit to the possible applications of bio-based highperformance chemicals to produce substances that are bio-friendly
Pune-based SME manufacturers received updates on the latest opportunities to cost-efficiently upgrade their IT infrastructures
- technology management for decision-makers
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HMI-Controller > Compact
Motion Controller > Performance
SoMachine > Software
Drives controllers > Efficient
Logik-Controller > Flexibility
New flexible machine control offers 100% flexibility of your machines Optimized control; shorter time to market Machines today need to be faster, more flexible, and must be able to solve more complex automation functions than ever before. As a machine builder you must constantly look at innovative ways to build more energy-efficient machines, reduce development costs, and get your machines to market much faster. Flexible Machine Control has made this history. Flexible machine control incorporates SoMachine, a single software suite that runs on multiple hardware control platforms to achieve 100 percent machine flexibility: HMI, motion, drive, and logic controllers. With SoMachine, you need only one software, one cable, and one download to design, commission, and service your machines from a single point. SoMachine minimizes your work and capitalizes on each design. Flexible machine control is part of our brand-new MachineStruxure solution, designed to take complexity out of the business. The MachineStruxure solution also includes: Tested, Validated Architectures and Functions: Build a strong automation platform through the use of our ready-to-use, proven, and fully transparent automation architectures and application function libraries implemented with FDT/ DTM technology. Our architectures are predefined and dedicated to your specific needs for optimum results. Co-engineering Services: Design the optimal solutions for your customers with innovative help from our experts! We implement the latest technological evolutions and provide a unique hands-on industry application knowledge that helps you stay ahead of the competition.
Flexible Machine Control To reach 100% flexibility and optimization, flexible machine control incorporates predefined and proven automation architectures and functions and embeds intelligence in multiple hardware control platforms. A single software suite helps you to develop, program, and commission your machines. One Software Environment
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One software suite to develop, program, and commission your machines, requiring only one tool, one download, one connection, and one project file
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Multiple Hardware Control Platforms Embedded intelligence where it is needed
Download our “On the road to green machines” white paper today - it’s FREE and stand a chance to win an iPad 2! Visit www.SEreply.com Key Code 46678y ©2012 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies. • www.schneider-electric.com • 998-2693_IN
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industry update Icertis Launches ITMS in India
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hen volatility in fuel prices, unpredictable capacity requirements, increasing customer demand for improved serviceability, growing modern trade, and changing regulatory environment are the key concerns for transportation operations in today’s market place, Icertis has launched its Transportation Management System (TMS) in India. According to the company, Icertis Transportation Management System (ITMS) is a suite developed to cater to all transportation management requirements and emerging supply chain execution challenges. The TMS product, on Microsoft Corp’s Windows Azure, offers a complete functionality footprint across planning and execution, a thorough visibility into operations, data driven decision-making, and an integrated fleet management capability. The product’s ‘born in the cloud’ transportation planning engine provides an advanced streaming optimisation capability at enterprise scale. Also, notable amongst the array of features offered by ITMS is its modern user interface, which is highly intuitive and extremely easy to use. The interface allows for quick adoption across the end user community to make full use of the functional depth of the product. “ITMS is the only transportation solution in the market that is architected ground up in the cloud, and meets all transportation requirements of cargo, people and fleet on one platform. The system leverages the true potential of the cloud to deliver a best of breed, flexible, agile and transparent TMS,” said Samir Bodas, CEO and Co-founder Icertis. He further added, “With its high impact capabilities and quick time to deployment, ITMS helps businesses significantly reduce their cost of transportation operations.”
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october 2012 | industry 2.0
Wärtsilä Wins LNG Project Contract
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ärtsilä Moss AS has won a contract with Daewoo Shipbuilding & Marine Engineering Co (DSME) to supply Inert Gas Generator (IGG) units to a Floating Production, Storage and Offloading (FPSO) unit for the INPEX-operated Ichthys LNG project in the Browse Basin, approximately 200 km off western Australia. The vessel is due for delivery in April 2016; it will comply with strict Australian environmental standards, and has a projected lifespan of 40 years. The Ichthys project is the largest oil and gas development in the Northern Territory. Wärtsilä Moss’s scope of supply is two identical IGG Skids for installation in a hazardous area, to prevent risk of explosion, forming part of the topside
module with PV Breakers and control systems as loose supply for installation by the South Korean shipyard. The contract was signed with DSME in September 2012. The IGG units for the Ichthys project are installed to serve the primary operation of the FPSO, to transfer condensate to tankers for delivery to markets. The topside modules are surface installations which allow the drilling and/or production and/or processing of offshore hydrocarbons. Gas from the Ichthys field will undergo preliminary processing offshore to remove water and extract condensate. Then the gas will be transported to onshore processing facilities in Darwin through an 889 kmlong subsea pipeline.
Autodesk 360 to Offer Enriched Capabilities
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utodesk intends to use the Qontext technology, the enterprise social collaboration software—that it has recently acquired from India-based Pramati Technologies, for addAmar Hanspal, Senior Vice President, Information ing new social capabilities to Modelling and Platform Products, Autodesk Autodesk 360, a cloud-based platform that offers users the ability to store, search, and view critical design data improving the way they design, visualise, simulate and share work with others anytime anywhere. The acquisition of the Qontext technology and development team will accelerate Autodesk’s ongoing move to the cloud and expansion of social capabilities in the Autodesk 360 cloud-based service. “Mobile, cloud and social computing are dramatically changing the way engineers, designers and architects work. The addition of the Qontext technology to the Autodesk portfolio will lead to new technology innovations that help our customers embrace these disruptive technologies and leverage them for competitive advantage,” said Amar Hanspal, Senior Vice President, Information Modelling and Platform Products, Autodesk.
- technology management for decision-makers
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Lubrizol to Set up New Manufacturing Facility
Timothy Madden, Managing Director, South Asia, Lubrizol Advanced Materials
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he Lubrizol Corporation is planning to expand its global CPVC manufacturing capability by setting up a resin and compounding manufacturing facility in Deer Park, Texas, USA. The additional capacity will serve Lubrizol building and construction customers on a global basis. The new plant will require a total investment of approximately $125 million over a three-year period. The company evaluated several options for the plan’s first phase and determined that the most efficient and effective next step is to build a new plant located adjacent to its existing Deer Park additives facility, leveraging
current Lubrizol infrastructure and expertise. Additional site benefits include its close proximity to the Gulf shipping channel and direct access to pipeline chlorine. The world-class facility is expected to be operational by fourth quarter of 2014 and is designed to complement the company’s existing CPVC manufacturing facilities. Sharing his thoughts on the Indian market, Timothy Madden, Managing Director, South Asia, Lubrizol Advanced Materials, said, “As India’s growth continues and a large number of projects are planned in Tier III and IV towns, demand for innovative piping systems is expected to rise accordingly. To fulfil this demand, Lubrizol is set to strengthen its global capacity and supply chain. India is one of Lubrizol’s top three focus countries for growth and we continue to evaluate and validate our manufacturing options, such as the potential for additional production and warehousing facilities in the region to support our growth strategy.”
REpower Systems Bags WSB Order
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Epower Systems SE, a subsidiary of Pune-based Suzlon Group, and Dresdenbased WSB Neue Energien have signed a contract for the delivery and construction of 22 REpower MM92 wind turbines. The turbines, with a rated power of 2.05 megawatts (MW) each, are to be manufactured for the Taczalin project near Legnica in the Polish province of Lower Silesia. As per the company, the construction and commissioning of the wind farm, which would have a total power output of 45.1 MW, would be completed in August 2013. Jens Muller Nielsen, Managing Director of REpower Systems Polska, which serves the Polish market, said, “REpower has been operating in the Polish market since 2010, and since then has sold wind farms with a power output totalling more than 200 MW. The Taczalin project is our biggest ever in Poland.” In August 2011, Dresden-based WSB commissioned a wind farm near Opole, its first in Poland. Now, 15 REpower MM92 turbines supply around 41,000 households there with eco-friendly electricity. REpower has already set up two service support points in Poland for the maintenance of its turbine installations there.
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industry 2.0
KDIL to Use IBM Cloud for SC Management
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wality Dairy India Ltd (KDIL), a dairy and dairy products company in Northern India, has selected IBM cloud to improve the dairy’s operational efficiency and productivity — in its bid to become a global milk and milk products company. The IBM SmartCloud SAP Express Dairy Solution, is one of the first such deployments in the Indian dairy industry. It’ll help KDIL build a more robust, integrated system. The company earlier depended on non-integrated solutions, which did not help address challenges like — managing its cash operating cycle effectively, streamlining its business processes and improving efficiency across various operations to deliver superior quality products. The solution will provide KDIL with a pay-as-you-go model, and the flexibility and scalability required to manage a growing set of needs.
Safexpress Wins Awards in Multiple Categories
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upply chain & logistics company Safexpress has recently owned three awards, namely—‘Best Supply Chain Company of the Year’, ‘Best 3PL Company of the Year’ and ‘Best Logistics Provider of the Year’ at sixth Express Logistics & Supply Chain (ELSC) Awards 2012. Commenting on the awards, Vineet Kanaujia, Vice President, Marketing, Safexpress said, “These awards strongly reinforce our market leadership and matchless standing in the supply chain & logistics industry in the country. I would also like to praise the relentless efforts of each member of Team Safexpress, who has always given his/her best even under tough circumstances.”
- technology management for decision-makers | october 2012
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industry update
AGS Partners with Implico A iming to conquer the Indian downstream market for offering supply chain optimisation solutions for oil companies, AGS Transact Technologies has entered into a partnership with Germanybased Implico Group, a consulting and software company, which specialises in offering downstream business process optimisation for oil companies. According to AGS, currently, oil companies in India are going through a tough task of maintaining positive margins in a very volatile market of crude prices and increasing distribution cost. Oil companies also need to be prepared for dynamic pricing scenarios for the coming future. Hence, the immediate need is to have a complete real time visibility of sales and inventory for accurate demand forecasts. Integration of different systems and disparate data provides a single consistent view and information to the oil company management— and helps in forming a strong foundation for effective decision-making.
AGS has entered into a partnership with Implico to address the future needs of the downstream distribution supply chain for the petroleum retail business in India. Implico supports oil and gas companies worldwide in optimising their business processes. Five of the world’s 10 largest oil companies rely on Implico’s industry experience, consultancy expertise and highperformance solutions. Satish Zope, Senior Vice President—Petroleum Business, AGS Transact Technologies, said, “Most oil companies in India have started to realise the large benefits by integrating the supply chain and optimising across the enterprise. With global experience and expertise of our partner Implico, we are confident of working with Indian oil marketing companies, for being an efficient and single window for providing solution, which will enable them to achieve effective ‘refinery to outlet’ integration of IT applications—as also the business processes.” Satish Zope, Senior Vice President, Petroleum Business, AGS Transact Technologies
ABB Wins Orders Worth $65 Million
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he power and automation technologies company, ABB has won orders worth around $65 million from Mass Global Investment (MGI) Co, to provide a turnkey electrical and automation solution for a new gas-turbine power plant. ABB will also build a substation extension. These installations will help boost power supplies and strengthen the transmission infrastructure in northern Iraq. The order was booked in the third quarter. Comprising four gas turbines with a capacity of 125 megawatt (MW) each, the new Dohuk 2
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october 2012 | industry 2.0
power plant will be an extension of the existing ABB-built 500 MW Dohuk 1 power station, which went into operation in 2011. ABB will design, supply and install the electrical balance of plant (EBoP) solution and provide the grid connection for the 500 MW open cycle gas turbine (OCGT) power plant. Key product supplies include low and medium-voltage switchgear, the auxiliary systems for fuel supply and the control and automation system. The new plant will be fuelled by natural gas and light fuel oil. It is scheduled to be operational in just 10
- technology management for decision-makers
months, and is the latest in a series of OCGT projects implemented by ABB for MGI. ABB will also extend a 132 kilovolt (kV) substation delivered earlier, to connect the Dohuk 2 power plant to the grid. In another project, ABB will supply a state-of-the-art control system and a 400 kV substation for the grid connection of the 1,000 MW Erbil OCGT plant, which will be converted to a CCGT (Combined Cycle Gas Turbine) plant by extending it with heat recovery steam generators and two steam turbines, boosting output by 470 MW.
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Experts to Work on Reducing Battery Production Cost
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he Karlsruhe Institute of Technology (KIT) and the Stuttgart-based M+W Group have forged a development partnership, with the aim of massively reducing the use of energy and materials in battery production—and therefore the price. Professor Eberhard Umbach, President of KIT and Jürgen Wild, CEO of M+W Group, have recently signed an agreement, which sets out the key points for the future partnership. The cooperation essentially encompasses the areas of dry-room technology, resource-efficient plants and process control systems. Andreas Gutsch, Coordinator, ‘Competence E’ Project, KIT says, “For us, cooperation with an internationally recognised factory designer and EPC company makes it possible to have the results of our development incorporated directly into innovative manufacturing concepts for cell and battery production, and Prof Eberhard Umbach of KIT and Jürgen Wild of M+W Group while signing the development therefore, the partnership agreement opportunity to market them globally. We want to develop industrial processes while keeping a particular eye on costs.” Until now, energy-intensive processes, such as drying the coated electrodes, cell assembly in the dry room, or cell formation have dominated li-ion cell manufacture. The cooperation will contribute to making the entire energy system of cell and battery manufacture more efficient, where both the energy-efficiency of the facility and that of the installed processes will be put to the test in applied research at KIT. At the same time, the proportion of renewable energies in the supply of energy-optimised production will be increased. “Installing a photovoltaics plant with coupled, stationary energy storage at KIT’s Nord campus will make it possible to implement a power supply based on renewable energy, and therefore ‘green’ cell production,” adds Gutsch. “The existing practical knowledge of M+W Group with engineering and construction of li-ion facilities ideally complements KIT’s expertise in research into battery manufacture. Together, we will find new ways of reducing costs in battery production for our customers more quickly,” informs Wild.
techwatch
Credit: SINTEF
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ball bearing—or a slide bearing around an axle—needs lubrication at all times. If a leak causes the lubrication in the bearings of large machines to dry out, there can be huge cost implications. Metal surfaces can grate against each other and seize up, in the worst case resulting in a total write-off. Other cost savings for the industry involve energy consumption, personnel, lubrication expenses and maintenance and spare parts. As part of an internal project at the Gemini Tribology Centre, a group of researchers from SINTEF and the Norwegian University of Science and Technology (NTNU) are testing whether it is possible to apply a coating of hard particles and capsules filled with liquid lubricant to surfaces which are in contact with each other. “We apply the lubricant using a thermal spray technique, where powder and capsules are fired at the surface using a flame,” says Sergio Armada of SINTEF Materials and Chemistry. “When the metal surfaces come into contact with each Capsule in the wear track other, the coating is broken down in a controlled manner, releasing the contents of the capsules, and the lubricant will then prevent further friction.” The researchers have carried out a number of tests on slide bearings in industrial settings, in which they have measured friction on surfaces with and without the capsules. When a coating without capsules was applied to the slide bearing, the friction coefficient was 0.7, while friction was reduced to 0.15 in bearings coated with a layer of capsules. The idea of self-repairing metals is not new. Two years ago, a metallic coating of capsules and the ‘electroplated layer’ lubrication method was described in The Economist magazine. Materials researchers from Fraunhofer and the University of Stuttgart were behind the article. The disadvantage of this method was that since the lubrication was applied using electricity, it was only possible to apply a single metallic layer. Another challenge was that the capsules in the coating were too big. Since a surface layer should preferably be only 15 to 20 micrometres thick, the capsules must be a fraction of this size — if they are not to be released too quickly. “In our case, the capsules must be smaller than 10 micrometres, so that they do not block the nozzles and cause problems during the spraying process. We have now created capsules as small as 2 micrometres,” says SINTEF researcher Christian Simon. His colleague Ruth Schmid is developing capsules with an extremely low friction coefficient that could endow the coating with even better tribological properties. “Our method has many potential applications, and is suitable for a wide range of coatings,” says researcher Sergio Armada. “It will be possible to apply the coating to large surfaces and components, and the actual material of the coating can also be varied—from metals to polymers and ceramics.”
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october 2012 | industry 2.0
- technology management for decision-makers
World Record for Highest Surface Area Material
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orthwestern University researchers have created two new synthetic materials with Model of NU-110 the greatest amount of surface areas reported to date. Named NU-109 and NU-110, the materials belong to a class of crystalline nanostructure known as metal-organic frameworks (MOFs) that are promising vessels for natural gas storage, catalysts, and other chemistry. The materials are interesting because of their vast internal surface area. If the internal surface area of one NU-110 crystal — the size of a grain of salt — could be unfolded, the surface area would cover a desktop. The research team, led by Omar Farha, Research Associate Professor of Chemistry in the Weinberg College of Arts and Sciences, has synthesised, characterised, and computationally simulated the behaviour of the two MOFs that display the highest experimental Brunauer-EmmettTeller surface areas of any porous material on record, 7,000 m2/g; (i.e., one kg of the material contains an internal surface area that could cover 7 sq km) The extremely high surface area, which is normally not accessible due to solvent molecules that stay trapped within the pores, was achieved using a carbon dioxide activation technique. MOFs are composed of organic linkers held together by metal atoms, resulting in a molecular cage-like structure. The researchers believe they may be able to more than double the surface area of the materials by using less bulky linker units.
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Credit: Northwestern University
Damaged Metal Surfaces Repair Themselves
Smart Fabric Sets off an Alarm
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hieves are unlikely to appreciate a fabric, There are also other reasons why this which looks innocuous but incorporates a fabric is cheap to produce. The process fine web of conductive threads and warns when makes use of standard materials and the fabric is cut. The system can be used to procomponents like silver-coated conductive tect buildings, bank vaults, and trucks against threads, and a simple but robust signal even the most wily of intruders. evaluation system. A further advantage is The smart fabric was developed by researchthat “the conductive thread can be incorers at the Fraunhofer Institute for Reliability porated in the polyester substrate using an and Microintegration (IZM) in Berlin. “The industry-standard textile-weaving process,” fabric could be used to implement an entirely explains Simon. The result is reams of fabnovel, invisible security system for buildings,” ric that can be trimmed to any length and A smart fabric IZM project manager Erik Simon says. For customised to provide the desired funcincorporating conductive threads and a processor example, the textile could be laid on the rafters tionality for surfaces of any size, from one module provides protection of a roof as an additional layer to the vapour square metre upward. against intrusion and theft barrier underlay, underneath the tiles. This The conductive lattice and the datamight be a good solution for museums housing valuable processing module that triggers the alarm in the monitoring collections, or jewellers’ shops, or banks. An alternative solucentre are incorporated in a low-temperature process tion would be to integrate the fabric in concrete and blockusing joining techniques borrowed from the semiconductor work walls, for instance those surrounding a bank vault. industry such as adhesive pressure bonding and nonAnother possibility is to use it as a backing material for floor destructive welding. coverings, in combination with pressure sensors that signal The all-important question was to determine the an alarm if an unauthorised person enters the room. “The fabric’s reliability and durability, especially with respect electric current flowing through the fabric is so weak that it to the electrical contacts. To verify this, the textile alarm presents no danger to humans or animals,” reassures Simon. system was put through a gruelling series of tests in What makes this solution unique is the fact that it not the IZM laboratories. It was beaten and tumbled in a only signals the presence of intruders but also indicates the washing machine at 40oC, and exposed to the elements precise point of forced entry. The fine lattice of conductive for 1,000 hours at a relative humidity of 85 per cent and threads woven into the fabric enables the place where it was a temperature of 85oC. It was then placed in a furnace in cut to be identified to the nearest centimetre. Other soluwhich it was subjected to 1,000 temperature cycles ranging tions currently on the market require a complex system of from minus 40 to plus 85oC. The smart textile stood up to optical fibres, which naturally makes them more expensive. this torture without flinching.
Miniature Distance and Motion Sensor Developed anufacturing robots that move about in unknown environments require millimetre precision control. Together with the Karlsruhe Institute of Technology (KIT), the SUCCESS Consortium now has succeeded in integrating the necessary radar technology into millimetre-sized chip housings. Thomas Zwick points out the advantage of this innovative technology. “Users can solder the chip onto their standard circuit boards, and receive low frequency signals that can be processed without difficulty.” Zwick, who heads KIT’s Institute for High-frequency Tech-
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nology and Electronics, goes on to explain. “The sensor sends and receives electromagnetic waves having a frequency of 122 GHz, which corresponds to a wavelength of approximately two and a half millimetres. From the run time of the waves, the distance to an object that is several metres away is calculated with an accuracy of up to one millimetre.” In addition, the velocity of the respective object can also be measured using the Doppler effect. The sensor itself measures only 8x8 mm and contains all the necessary radiofrequency components. The output signals can be processed using standard elec-
industry 2.0
The novel radar sensor is only half the size of a Euro cent coin but contains all necessary radio-frequency components
tronic systems. Zwick is confident that in the long run, series production could reduce costs per radar sensor unit to less than one Euro. Beside vehicle environment detection and control of industrial robots, there are numerous other conceivable applications for this sensor.
- technology management for decision-makers | october 2012
Credit: Robert Bosch GmbH/SUCCESS
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Boiling Water without Bubbles
Credit: Northwestern University
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nyone who has boiled water knows that it bubbles. “We manipulated what has been known for a long time by using the right kind of texture and chemistry to prevent bubbling during boiling,” says Neelesh A Patankar, Professor of Mechanical Engineering at Northwestern’s McCormick School of Engineering and Applied Science. Screenshot from a This discovery could help reduce damage to surfaces, premovie showing the cooling of 20 mm hydro- vent bubbling explosions and may some day be used to enhance philic (left) and superhyheat transfer equipment, reduce drag on ships and lead to antidrophobic (right) steel o spheres in 100 C water. frost technologies. The spheres’ initial temPatankar’s research outlines how a specially engineered perature is about 380oC. coated surface can create a stable vapour cushion between the The bubbling phase of surface and a hot liquid—and eliminate the bubbles that are creboiling is completely eliminated for steel ated during boiling. This phenomenon is based on the Leidenspheres with superhyfrost effect. In 1756, the German scientist Johann Leidenfrost drophobic coating observed that water drops skittered on a sufficiently hot skillet, bouncing across the surface of the skillet on a vapour cushion or film of steam. The vapour film collapses as the surface falls below the Leidenfrost temperature. To stabilise a Leidenfrost vapour film and prevent bubbling during boiling, Patankar collaborated with Ivan U Vakarelski of King Abdullah University of Science and Technology, Saudi Arabia. Vakarelski led the experiments and Patankar provided the theory. In their experiments, the stabilisation of the Leidenfrost vapour film was achieved by making the surface of tiny steel spheres water-repellent. The spheres were sprayed with a commercially available hydrophobic coating—essentially self-assembled nanoparticles— combined with other water-hating chemicals to achieve the right amount of roughness and water repellency. At the correct length scale this coating created a surface texture full of tiny peaks and valleys. When the steel spheres were heated to 400oC and dropped into room temperature water, water vapours formed in the valleys of the textured surface created a stable Leidenfrost vapour film that did not collapse once the spheres cooled to the temperature of boiling water. In the experiments, researchers completely avoided the bubbly phase of boiling. “This is a dramatic result, and there are many applications in which a vapourloving, water-hating surface is beneficial,” Patankar says.
Making Glass Twice as Strong
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lass is strong enough for many applications—windshields, furniture—that need to handle high stress without breaking. But scientists, who look at the structure of glass strictly by the numbers, believe that new methods adopted from the microelectronics and nanotechnology industry could produce glass that’s about twice as strong as the best available today. Rice University chemist Peter Wolynes thinks that using chemical vapour deposition, which is used industrially to make thin films, could yield a glass that
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Though glass is strong, it has the potential to be stronger, according to theoretical work by researchers at Rice University
withstands tremendous stress without breaking. His calculation is based on a modified version of a groundbreaking mathematical model that Wolynes first created to answer a decades-old conundrum about how glass forms. Woly-
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nes’ theory can predict the ultimate strength of any glass, including the common varieties made from silica and more exotic types made of polymers and metals. If metal glass sounds odd, blame it on the molecules inside. Glass is unique because of its molecular structure. It freezes into a rigid form when cooled. But unlike ice, in which water molecules take on regular crystalline patterns, the molecules in glass are suspended randomly, with no particular pattern. The strong bonds that form between these randomly-arrayed individual molecules are what hold the glass together and ultimately determine its strength. All glasses share the ability to handle a great deal of strain before giving way. Exactly how much strain a glass can handle is determined by how much energy it can absorb before its intrinsic elastic qualities reach their limitations. And that seems to be as much a property of the way the glass is manufactured as the material it is made of. Materials scientists have long debated the physics of what occurs when glass hardens and cools. In fact, the transition is one of their last great puzzles of the field. Cooling temperatures for particular kinds of glass are well defined by centuries of experience, but Wolynes argues it may be possible to use this information to improve upon glass’s ultimate strength. He notes that the theoretical results closely match experimental ones for most materials. “The good news is, according to this theory, if you could make a material that is much closer to ideal glass—the glass you would get if you could make it infinitely slowly—then you would be able to increase its strength.” That may not be possible through traditional cooling of silica, metal and polymer glasses, which his calculations indicate are approaching their limits. But it might be possible through vapour deposition of atoms, akin to the chemical vapour deposition process used in microelectronics and nanotechnology to make thin films.
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Credit: Rice University
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techwatch Sliding Metals Exhibit Fluid-like Behaviour
Credit: Purdue University School of Industrial Engineering /N Sundaram and Y Guo
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olid pieces of metal sliding “It has been known that little pieces over each other demonstrate of metal peel off from sliding surfaces,” a swirling, fluid-like behaviour. Chandrasekar explains. “The convenThis provides new insights into the tional view is that this requires many mechanisms of wear and generacycles of rubbing. Now, we are saying tion of machined surfaces that when you have surface folding you don’t could help improve the durability need too many cycles for these cracks of metal parts. to form. This can happen very quickly— Studies using a microscope and accelerating wear.” The researchers high-speed camera have revealed hypothesise that the folding and crackthe formation of bumps, folds, voring are due in part to a phenomenon tex-like features and cracks on the similar to ‘necking’, which happens as a This frame from a high-speed camera sequence metal surface. The findings were piece of metal is stretched. reveals surprising behaviour in a solid piece of metal surprising because the experiment The researchers used a specialised sliding over another was conducted at room temperalaboratory setup that included a highture, and the sliding conditions did not generate enough speed camera and equipment that applies force to the slidheat to soften the metal. “We see phenomena normally assoing metals. The behaviour was captured in movies that show ciated with fluids, not solids,” says Srinivasan Chandrasekar, the flow in colour-coded layers just below the surface of the a Purdue University professor of industrial engineering who copper specimen. is working with postdoctoral research associates Narayan The team is now developing models to further study the Sundaram and Yang Guo. phenomena and understand the wide-ranging consequences The team observed what happens when a wedge-shaped of such fluid-like flow in metals, according to Chandrasekar. piece of steel slides over a flat piece of copper. It was the The findings could lead to improved surface quality in first time researchers had directly imaged how sliding materials processing. “We need to explore what role grain metals behave on the scale of 100 microns to 1 millimetre, size plays,” says Chandrasekar. “We think there should known as the mesoscale. The observations show how be some grain size below which this folding mechanism tiny bumps form in front of the steel piece, followed by might be less active. We need to explore why—under what the swirling vortex-like movement and then the creation conditions—solid metals behave like fluids.” Metals are of shallow cracks. The folding and cracking were most made of groups of crystals called grains. Metal surfaces that pronounced when the steel piece was held at a sharp angle have smaller grains may be less susceptible to the folding to the copper surface. and crack formation.
Waste Oil Makes Bioplastics Cheaper
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he cost of bioplastics that are naturally synthesised by microbes could be reduced by using waste cooking oil as a starting material. This would reduce environmental contamination and also give high-quality plastics suitable for medical implants, according to scientists presenting their work at a conference. The Polyhydroxyalkanoate (PHA) family of polyesters is synthesised by a wide variety of bacteria as an energy source when their carbon supply is plentiful. Poly 3-hydroxybutyrate (PHB) is the most commonly produced polymer in the PHA family. Currently, growing bacteria in large fermenters to
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produce high quantities of this bioplastic is expensive because glucose is used as a starting material. Work by a research team at the University of Wolverhampton suggests that using waste cooking oil as a starting material reduces production costs of the plastic. “Our bioplastic-producing bacterium, Ralstonia eutropha H16, grew much better in oil over 48 hours and consequently produced three times more PHB than when it was grown in glucose,” explains Victor Irorere who carried out the research. “Electrospinning experiments, performed in collaboration with researchers from the University of Birmingham, showed that nanofibres of the
- technology management for decision-makers
plastic produced from oils were also less crystalline, which means the plastic is more suited to medical applications.” “The use of biodegradable plastics such as PHB should be encouraged to help reduce environmental contamination. Unfortunately, the cost of glucose as a starting material has seriously hampered the commercialisation of bioplastics,” says Dr Iza Radecka who is leading the research. “Using waste cooking oil is a double benefit as it enables the production of bioplastics and reduces environmental contamination caused by disposal of waste oil.” The next challenge for the group is to do appropriate scale-up experiments, to enable the manufacture of bioplastics on an industrial level.
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Making it Stick
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ver tried to paint on top of silicone? After a few hours, the paint will peel off. That’s because silicone has extremely low adhesion. Teflon is similarly non-sticky. Researchers from Kiel University, Germany have now developed a technology that is capable of joining such ‘unjoinable’ materials. The technique uses passive nano-scaled crystal linkers as internal staples. “Since the nano staples make even extreme polymers like Teflon and silicone stick to each other, they can join all kinds of other plastic materials,” says Prof Rainer Adelung. The new method does not need chemical modifications, expensive equipment or novel materials, according to Adelung. The linkers are micro and nano-scale crystals made of zinc oxide. They are shaped like tetrapods, where four legs protrude from the point of origin. Large-scale tetrapods are known for their ability to interlock and form strong bonds, for example in coastal protection. During the joining process, the zinc oxide crystals are sprinkled evenly onto a heated layer of Teflon. Then, a layer of silicone is poured on top. In order to join the materials firmly, they are then heated to 100° C for less than an hour. “It’s like stapling two nonsticky materials from the inside with the crystals. When they are heated up, the nano tetrapods in between the polymer layers pierce the materials, sink into them, and get anchored,” explains researcher Xin Jin. Her colleague and supervisor, Dr Yogendra Kumar Mishra, explains the adhesive principle, “If you try to pull out a tetrapod on one arm from a polymer layer, the shape of the tetrapod will simply cause three arms to dig in deeper and to hold on even firmer.” With the tetrapod staples, the scientists have achieved a stickiness— the so-called peel strength of 200 N/m. This is similar to peeling sticky tape off glass.
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New Method Produces Realistic Fluid Simulations
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hat does a yoghurt look like over time? The food industry will soon be able to answer this question using a new fluid simulation tool developed by the Department of Computer Science (DIKU) at the University of Copenhagen as part of a broad partnership with other research institutions. “Our new method is a breakthrough which will radically change tomorrow’s computer simulation. We have taken the first step towards producing a more precise simulation of fluid materials than anything seen so far,” says Associate Professor Kenny Erleben from the University of Copenhagen. The method distinguishes itself significantly from known simulation methods which use mesh structures where the vertices are locked in a fixed position. In the new method, the mesh structure is replaced by a dynamic structure where the vertices move one at a time. This makes it possible to take account of the fluid’s physical properties more precisely and to see how different types of fluids interact with one another. The method also ensures such a high degree of detail that even very thin structures become visible. With previous statistical methods, it is often a problem that the simulated object’s edges and structures become blurred, and that its precise physical properties are hard to recreate. The new dynamic simulation method paves the way for countless applications. Food producer Danisco wants to use the method to simulate the shelf-life of foods, for example yoghurt. The technique can also be used to perform risk assessments of, for example, oil slips and within building design. But for the time being, the method cannot be used by what has traditionally been simulation research’s biggest customers: games developers. This is because the simulation is extremely time-consuming as the vertices are moved one at a time. It often takes a couple of minutes per image just for the simulation—added to which is the time it takes to generate the detailed images.
Researchers Unveil a Cheaper Way to Create ‘Textured’ NFO Thin Films
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esearchers from North Carolina State University and the Georgia Institute of Technology have demonstrated a less-expensive way to create textured nickel ferrite (NFO) ceramic thin films. NFO is a magnetic material that holds promise for microwave technologies and next-generation memory devices. Specifically, this is the first time researchers have used a chemical deposition process to create NFO thin films that are ‘textured’—meaning they have an aligned crystalline structure. Arraying the crystalline structure in an orderly fashion maximises the magnetic properties of the material. Using a chemical deposition process also makes it easier to modify, or
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‘dope’, the NFO by adding additional materials, such as zinc. By doping the NFO, researchers can optimise the material for various applications. The technique used begins by introducing nickel and iron compounds into an organic solvent to create an NFO solution. The solution is then injected onto a silicon wafer that has been coated with platinum. The wafer is then spun, spreading the solution uniformly across the wafer’s surface. The wafer is heated to evaporate the solvent, then heated again to 750°C to crystallise the NFO. “This approach can be used to deposit textured NFO thin films over areas at least as large as 10x10 cm,” says Dr Justin Schwartz.
- technology management for decision-makers | october 2012
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techwatch New Way to Produce Nylon
Photomicrograph of nylon fibres (magnification 10x)
Credit: iStockphoto/Nancy Nehring
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n their quest for a cancer cure, researchers at the Duke Cancer Institute have made a serendipitous discovery—a molecule necessary for cheaper and greener ways to produce nylon. Nylon is commonly employed in carpeting, upholstery, auto parts, apparel and other products. A key component for its production is adipic acid, which is one of the most widely used chemicals in the
world. Currently, adipic acid is produced from fossil fuel, and the pollution released from the refinement process is a leading contributor to global warming. One of the most promising approaches being studied today for environmentally friendly adipic acid production uses a series of enzymes as an assembly line to convert cheap sugars into adipic acid. However, one critical enzyme in the series, called a 2-hydroxyadipate dehydrogenase, has never been produced, leaving a missing link in the assembly line. This is where the cancer research comes in. In 2008 and 2009, Duke researchers including Dr Zachary J Reitman and Hai Yan identified a genetic mutation in glioblastomas and other brain tumours that alters the
Heat-conducting Composites for Desalination
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ndustrial plants that can desalinate seawater and convert it to drinking water are on the rise. The desalination process works by spraying seawater on to heated pipes. Pure water evaporates from the seawater, leaving a salty sludge behind. However, this process subjects the pipe material to a diverse array of demands. The material of the pipes must not only conduct heat and robustly resist corrosion, but must also remain durable over a long period of time. For the water to evaporate properly, the piping must also be easily coated with seawater. This is why manufacturers have used only titanium and high-alloy forms of steel for desalination plants. Unfortunately, not only are these materials very costly, but they are also in high demand from the aviation industry. This results in delivery delays and further increases in price. Researchers at the Fraunhofer Institute for Manufacturing Technology and Advanced Materials (IFAM) in Germany are now developing an alternative to the titanium tubes: pipelines made of polymer composites. What’s special about these plastic pipes is that they conduct heat. Another benefit is that they can be produced in continuous lengths, and are more economical than their metal counterparts. How did the researchers make the polymer heat-conducting? “We introduced metal particles into the material. We add up to 50 per cent copper microfibres by volume. This does not change the processing properties of the composite, and it can still be processed as any other polymer would,“ says Arne Haberkorn, a scientist at IFAM. Having developed the material, the researchers are now working to optimise its thermal conductivity. The usage of the new pipe material is not limited to seawater desalination. “It will be no problem to use it in the food or pharmaceutical industry,“ Haberkorn points out.
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function of an enzyme known as an isocitrate dehydrogenase. Reitman and colleagues had a hunch that the genetic mutation seen in cancer might trigger a similar functional change to a closely related enzyme found in yeast and bacteria (homoisocitrate dehydrogenase), which would create the elusive 2-hydroxyadipate dehydrogenase necessary for ‘green’ adipic acid production. They were right. The functional mutation observed in cancer could be constructively applied to other closely related enzymes, creating a beneficial outcome—in this case the missing link that could enable adipic acid production from cheap sugars. The next step will be to scale up the overall adipic acid production process. “It’s exciting that sequencing cancer genomes can help us to discover new enzyme activities,” says Reitman.
Ultrathin, Flat Lens Could Change Optics
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cientists are reporting development of a revolutionary new lens—flat, distortion-free, so small that more than 1,500 would fit across the width of a human hair—capable in the future of replacing lenses in applications ranging from cell phones to cameras to fibre-optic communication systems. Existing lenses are not thin or flat enough to remove distortions which prevent the creation of a sharp image. Correction of these distortions requires complex solutions. To overcome these challenges, the scientists sought to develop a new super-thin, flat lens by patterning the lens surface with tiny metallic stripes that bend light differently as one moves away from the centre. This causes the beam to sharply focus without distorting images. The current lens works at a specific design wavelength, but the scientists say it can be redesigned for use with broadband light. Although the new lens is ultra-thin, it has a resolving power that approaches the theoretical limits set by the laws of optics.
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Global economic challenges such as the Eurozone crisis, along with domestic political upheavals have had an unfavourable impact on the Indian economy this year. However, the current economic slump in India can be perceived as a temporary phenomenon, especially because key sectors have been projected to witness significant growth over the next 4 to 8 years. Increasing demand for electricity, positive trend in the automotive sales and exports, sustained interest towards hydrocarbon production, increasing investment towards augmenting the metal production capacity, among others stand out as shining examples of the underlying potential. Frost & Sullivan’s 2012 India Industrial Technologies Summit is an annual forum focused on highlighting the evolving process industry imperatives (November 27, 2012, Mumbai) and evolving discrete industry imperatives (December 11, 2012, Bangalore). Key Areas of Discussion • How successful companies are focusing on consistent innovation in process and technologies to enhance productivity as well as shareholders returns • Economic indicators and impact of global investment climate • Vital market drivers, anticipated challenges and growth strategies • Evolving technology paradigms, best practices and industry E standards Solution Providers • Automation and Control Systems and Control Software • Robotics • Product Lifecycle Management • Pumps,Valves, and Compressors • Power Transmission • Industrial Services • Pumps,Valves, and Compressors
Who should attend? • CEOs, CTOs, COOs, CMOs, CIOs • Senior Management: Vice Presidents, Directors and General Managers • Middle Management: Product and Technology Managers • Department Heads of • Electrical & Instrumentation • Mechanical • Information Technology and Enterprise Systems • Operations and Maintenance Across Sectors
Process End users • Oil and Gas (Upstream, Midstream, and Downstream) • Chemicals, Petrochemicals, and Fertilizers • Power Generation, Transmission, and Distribution • Metals and Mining • Pulp and Paper P • Cement • Pharmaceuticals • Food and Beverages Media Partners
Discrete End users • Textiles • Machine Tools • Automotive • Electronics • CPG D • Medical Devices • Aerospace and Defence
cover story
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The Perils of
Best Practice: Should You Emulate Apple?
Outliers’re exactly that. Duplicating their performance is harder than that we might wish. Perils abound when truly exceptional companies morph into ever more ubiquitous examples. Venturing without examining is risky.
By Marla M. Capozzi, Ari Kellen and Sven Smit Illustration by Manav Sachdev, Design by Charu Dwivedi
It’s
no mystery why companies emulate their most successful peers. Tried-andtrue approaches often seem preferable to starting from scratch, whether for developing new products or running efficient supply chains. The quest for such methods went global during the 1980s and 1990s as European and US companies sought to retool their operations by transplanting Japanese factory practices, such as kanban and just-in-time production. Management consultants—ourselves included—naturally facilitate the process by extolling successful companies as models from which others can learn proven practices that reduce risks. However, perils abound when truly exceptional companies morph into ever more ubiquitous examples. Observers and management theorists alike, blinded by star power, eventually assume that everything these companies do should be regarded as best practice—often without examining
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industry 2.0
- technology management for decision-makers | october 2012
17
cover story the context in which they derive their success or without parsing the true nature of their accomplishments. Managers tempted to distill universal insights from what are in fact exceptional companies put their own businesses at risk for strategic or operational missteps. Others before us—notably Bob Sutton and Jeffrey Pfeffer at Stanford, Adrian Wooldridge at the Economist, and Phil Rosenzweig at IMD—have issued warnings about best-practice traps and management-theory fads. Yet the desire to emulate is often stronger than mere rationality, even in the face of repeated evidence that most companies won’t achieve the anticipated outcomes and that some will suffer a hard fall. Research by our colleagues, for instance, has shown that lockstep benchmarking may lead to ‘herding’ effects that, over time, diminish emulators’ margins. Apple is today’s all-purpose innovation icon. In the past three years alone, more than 1,500 published articles have mentioned both ‘Apple’ and ‘innovation’ (a Google search displays hundreds of millions of results). As of this writing, Walter Isaacson’s comprehensive biography of Steve Jobs has held a place on the New York Times bestseller list for over 40 weeks. Nearly 40 books on Apple and Steve Jobs have been published since his death, in October 2011—celebrating the company’s can-do culture, break-
through product designs, global supply chain prowess, and legendary cofounder. A unique confuence of leadership, talent, strategy and technology has brought Apple extraordinary success and raises the question of how relevant a model the company can be for others as they chart their own innovation course. To answer the question of how exceptional Apple actually is, we analysed its growth using the analytic technique that underpins the 2008 book “The Granularity of Growth.” This approach, at its core, entails disaggregating the sources of growth into three categories. The frst is to compete in the right markets and harness their momentum to expand sales of current products and services. The second uses Merger & Acquisition (M&A) to, in effect, purchase growth. Finally, companies can grow organically, through market share gains from existing or new products and services. Since 1999, the more than 750 companies in our database have, on average, derived a negligible portion of their growth from organic share gains of any kind. Apple, by contrast, has grown almost entirely through share gains. And that’s just the beginning of its uniqueness. Of the companies that have expanded through market share growth, only a few have created new markets from whole cloth, either by being the frst to enter entirely new geographies or through ‘disruptive’ innovation that creates completely new products, services, or business models. In fact, our research shows that from 1999 to 2008, Apple was the only global incumbent to create entire new markets, repeatedly, from disruptive innovation. This analysis, it should be noted, does not consider industry attackers or start-ups—only incumbent companies and their efforts to create new markets. Just how unique is Apple’s performance? We looked at our database’s top ten companies that grew by creating new markets. Apple was the only one among the top ten to capture this growth through disruptive innovation and one of only three to derive more than five per cent of its annual growth from creating new markets. Nine companies grew by entering fast-growing emerging
Apple was the only one among the top ten to capture growth through disruptive innovation. 18
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Exhibit markets. Seven of those nine, including the other two whose Companies that innovate at scale out perform competitors annual growth from creating new in their sector markets exceeded five per cent, For 322 companies in 6 sectors that showed positive organic growth from 1999 to 2007 were from the telecommunications sector. The remaining two were a consumer products comConsistent Frequent but year on year not year on year pany and a conglomerate. Type of organic growth Sporadic Limited (ie, 70% of total (ie, 50% of total At the same time, Apple’s 7.9 over time frame) over time frame) per cent growth from disruptive innovation represented 45 per 6% 22% 50% 21% Share of companies1 cent of its company-wide growth. 2 Absolute CAGR, 1999–2007, % For others among the top ten, the average growth derived from 14.2 3.9 –2.3 –0.7 entering new markets was just Organic growth (share gains) 21 per cent of total growth. Apple’s performance also has Growth through M&A 4.8 3.9 3.0 2.2 been singular among its peers in Momentum growth the innovative high-technology Portfolio unchanged 10.6 6.0 6.6 6.0 sector. The company’s growth through market creation is Portfolio changed 0.5 0.1 0.1 –0.1 about six times higher than that of the second- and thirdTotal revenue growth 30.1 13.9 9.0 5.8 ranked companies achieving rapid growth by creating new 23.5 5.9 10.3 7.5 Total returns to markets—Lenovo and Cisco. shareholders (TRS),3 % In other sectors, including consumer packaged goods, retail, and health care, incum1 Figures do not sum to 100%, because of rounding. 2 bents’ growth through creating Compound annual growth rate. 3 Includes both public and private companies that were public between 1999 and 2007. new markets was close to zero or in some cases slightly negative. Apple does deserve its place in today’s hierarchy of esteemed companies by Analysis of more than 300 companies indicates virtue of its unique accomplishments; its innovative that from 1999 to 2007, companies that showed products, services and business models; its culture; positive organic share gains, year over year, for 70 and its processes and capabilities in areas such per cent or more of that time frame were, on averas supply chain management—not to mention the age, twice as likely as other companies in their secextraordinary leadership of its cofounder and curtor to outperform competitors as measured by total rent executives. returns to shareholders. In addition to that, we do not mean to say that Companies that innovated at scale successfully companies should never emulate Apple or other at least 50 per cent of the time were also more liketruly exceptional businesses. Many companies can ly to outperform, but to a lesser degree (Exhibit). draw new insights from Apple’s achievements in This approach, too, is challenging: just six per Marla Capozzi design, brand loyalty, and retailing, to name a few cent of global incumbent companies innovated at is a Senior things. Rather, our analysis is a cautionary tale sugscale 70 per cent of the time during this period. Expert in gesting that executives take a clear-eyed view of Still, the data suggest that identifying ways to McKinsey’s the companies they want to emulate, as well as the exploit existing assets, including technology, organBoston offce, returns and outcomes they expect from doing so. isational capabilities, or business model strengths, Ari Kellen is a Director in the An alternative to the headlong pursuit of disrupis within the reach of many more incumbent comNew Jersey tive innovation is what we call an ‘innovation at panies than might succeed in creating new maroffce, and scale’ strategy: repeatable and sustainable organic kets, as Apple and few others have done. Sven Smit is a growth across the organisation from new products Director in the This article was originally published in McKinsey Quarterly, www. and services—growth that builds on the foundation Amsterdam mckinseyquarterly.com. Copyright (c) 2012 McKinsey & Company. offce. of a company’s core business. All rights reserved. Reprinted by permission.
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- technology management for decision-makers | october 2012
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blog
The Big Thing Sensor, being integrated into ever-more products and systems, will be a key driver for technology developments for the next several decades.
Source: American Sensor Technologies
By Mark Ingham
Liquid level sensors from American Sensor Technologies
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- technology management for decision-makers
M
ost people have had a tough few years, but as a sensor company we have been lucky. Many of our clients have kept customers interested and orders coming in by adding new features to their existing products. Often these new features need developing and testing using sensors—or they may even actually be a sensor. But this is not just a recession buster; it is part of a long-term trend. Many consumer products are becoming more ‘intelligent’, while specialist systems are becoming more ‘capable’. In reality, this means more sensors are being fitted and their signals are processed automatically. For instance, a modern camera is likely to have sensors for tilt, shake, focus, light levels. Today’s cars have sensors for speed, engine revs, exhaust content, brake pressure, engine temperature, cabin temperature, ambient temperature, window position, lock activation, oil levels, etc. And this number will only increase, driven by—new safety requirements, increasing environmental monitoring and the consumers’ insatiable desire for something new.
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The medical world is increasingly automated. Doctors, dentists, nurses, chiropodists and physiotherapists all use far more equipment than their predecessors. And it is increasingly sophisticated equipment too, with sensors providing feedback for self-adjustment and as a diagnostic aid. Clean fuel technologies such as—engine management systems, flue gas analysers and afterburners for incinerators and boilers, all rely on real time sensing. Considering all this, it is clear to see that the deployment of sensors is going to spiral over the next several decades. New areas of use are appearing all the time, existing sensor users are installing ever more, and areas that previously did not use sensors at all are now adopting them for automation, monitoring or to provide extra functions. And the rate of development of new sensors is set to explode. Micro machining, the adoption of ceramics and of grown-crystal structures will mean sensing heads can become much small, more robust and almost infinitely reliable. And this is coupled with the continuing expansion of signal processing capacity as semiconductor technology develops yet further. We can safely predict that in 10 years time sensors will be so much more developed that—it will be like the current generation of automotive engineers looking back at the Ford Anglia and Morris 1000. And we can continue the motoring analogy: a couple of generations ago, people did not have cars—so they did not travel (not 10 miles to a good school or a specialist clinic, neither 20
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miles to work or to visit a sick relative, nor 100 miles for a business meeting, nor even 200 miles for a holiday). Now, we all have cars and take for granted journeys our grandparents could barely dream about. In short, technology is going to change radically due to the increasing development and use of sensors, and life will follow suit. Sensor companies always work at the leading edge of developments, so we know that there are several drivers for technology.
Combo pressure and temperature sensors from American Sensor Technologies One of the main ones is that customers always want more for less—greater capabilities and capacity, at lower prices. Ignore this and you will soon go out of business; accept it and you are always moving forward with exciting new developments. It is also a truism that if you start to develop one thing you will always find several more things worth investigating. For example, we at Sensor Technology set off to develop a torque sensor for one application in marine engineering, but we have since used it in automotive engines, aeronautics, power generation, materials handling, medical research to name but a few applications.
Another important technology driver is the curved ball from left field. Simply put, you never know what is around the corner. Who would have said in 1999 that the military were about to really push medical technology forward, or that an ageing population would encourage the development of exercise machines and the burgeoning market for gym membership? Many of us thought the Instamatic was the mature state of the camera technology—we did not see the potential of integrating it with computers and mobile communications. We have seen clean power switch from an idle daydream type technology to one of the main objectives of global research and cars develop unbelievably. What we can say is that technology is going to continue developing on all fronts, opening up new markets, increasing life expectancy, and improving living standards around the world. Sensor developments are set to play an enormous part in this, in the same way that computers have come to the fore over the last 25 years. Moore’s Law states—processing power doubles every 18-24 months—shows no sign of slowing down. In fact, like Gordon Moore, I am postulating a new principle, ‘Ingham’s Law—Sensor usage doubles every five years.’ And I would encourage today’s teenagers to study the science, technology and engineering of sensors—that puts them on the threshold of an exciting, fulfilling and secure career. The author is from Sensor Technology Ltd., in Banbury.
industry 2.0
- technology management for decision-makers | october 2012
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sector update
Growing Indian Private Sector
Order book volumes in the Indian manufacturing sector have increased solidly, amid reports of stronger demand, good marketing strategies and product quality.
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vices and manufacturing firms both signalled increasing payroll numbers, with the rate of growth faster at manufacturers. With services companies reporting a depletion of backlogs but manufacturers signalling a solid accumulation, the volume of outstanding business in the
HSBC India composite output PMI 50 = no change on previous month, S Adj
Increasing rate of growth
65 60 55 50 45 40
Increasing rate of contraction
2006 2007 2008 2009 2010 2011 2012
Indian private sector increased only slightly. Persistent powercuts continued to affect backlogs of work in the manufacturing sector, it was reported. Input costs increased sharply in the Indian private sector during September. Manufacturers registered the fastest increase
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Sources: Markit, HSBC
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he HSBC India Composite Output Index posted 55.0 in September, up from Augustâ&#x20AC;&#x2122;s reading of 54.3, and signalling a further improvement in Indian private sector activity. The pace of expansion was marked, but the index posted below the series long-run trend. After adjusting for seasonal factors, the headline HSBC Services Business Activity Index posted 55.8 in September, higher than the reading of 55.0 in August. Furthermore, production in the manufacturing sector expanded solidly, with growth accelerating from August. Order book volumes in the Indian manufacturing sector increased solidly, amid reports of stronger demand, good marketing strategies and product quality. In the service sector, new orders expanded at a sharp rate, the fastest in seven months. Consequently, the volume of incoming new work at private sector firms increased steeply. Job creation was recorded in the Indian private sector during September, marking a seven-month sequence of expanding workforces. Ser-
in input prices since June, and linked persistent inflation to rising raw material and diesel prices. Service providers also registered input cost inflation, though at a slower pace than manufacturers. Anecdotal evidence suggested that labour, fuel, petroleum and gold prices were higher, with some mentions of increasing taxes and excess demand. As a consequence, charges in the private sector increased again, as has been the case since June 2009. Services and manufacturing companies both signalled rising output prices with the rate of inflation faster in the manufacturing sector. Services companies remained optimistic regarding the short-term business outlook. That said, positive sentiment in September was at a six-month low. Commenting on the India Services PMI survey, Leif
Eskesen, Chief Economist for India & ASEAN at HSBC said, â&#x20AC;&#x153;Service sector activity grew at a faster clip in September led by firm demand, underscoring the resilience of the service sector. However, inflation pressures firmed again on the back of rising costs.â&#x20AC;?
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sector update
On the Verge of
Transition
T
The auto component industry needs to explore markets and make strategic decisions based on the Free Trade Agreements (FTAs).
he government is Product design, testing and soon going to launch validation capabilities are expected the 12th Five Year to become even more important as Plan. It is reviewing OEMs rely more on their supplithe targets set in the ers for product design. This need is Automotive Mission Plan (2006-16). driven by shortening product lifecyBased on the planned trajectory, the cles, introduction of new products size of the auto component industry or variants and increasing localisais expected to be Rs 2.48 lakh crore tion. R&D capabilities need to be (USD 54.6 billion) by 2016-17, the established at the earliest. terminal year of the 12th Five Year As per the current trends, the Plan. This would mean huge opporgrowth of the domestic component tunities in investment, production, industry has been accompanied by exports and employment creation a corresponding growth in compoacross the country. nent imports (imports stood at Rs The Automotive Mission Plan 38,760 crore, comprising almost 18 Indian auto component manufacturers will need to move per cent of the domestic demand in (AMP) 2006-16 of the Ministry of up the value chain to retain their Heavy Industries & Public Enter2010-11). In this background, the competitive position. prises, scripted in partnership industry has to work towards creatwith the industry, envisaged that the output of ing capacity ahead of demand. automobiles and auto components industry would Creation of capacities is not only vital for lowreach a level of USD 145 billion in 2016 accountering the country’s import bill, it will become an ing for more than 10 per cent of GDP; of this, it was enabler for the country wishing to improve exports expected that the auto component industry would prospects through bilateral routes and bilateral and contribute USD 40 billion, thus generating addiregional FTAs. The auto component industry needs tional employment for one million people. to explore markets and make strategic decisions In order to achieve these targets, some urgent based on these FTAs. Further, each company needs and timely interventions are needed from the to draw a roadmap for improving skills of its workgovernment. It also calls for proactive action on force to supplement the industry effort in setting the part of industry. In this regard, there are some up the Automotive Sector Skills Council, as this imperatives for the auto component industry in lone effort will not be adequate. India in a changing environment; for example, The National Electric Mobility Mission Plan the Indian component manufacturers will need to 2020, will pave the way for greater indigenisamove up the value chain to retain their competition of electric and hybrid vehicles. The industry tive position. Even relatively larger component has to gear up as this exciting opportunity awaits manufacturers depend on either the OEMs or on them. The auto component industry is ready for a their joint venture partners for technical or product change—for a better future. design capabilities. This has to change and even SMEs have to invest in greater product and process Based on the inputs from Ministry of Heavy Industries & Public Enterprises. Courtesy: Press Information Bureau (India) improvement through meaningful R&D.
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industry 2.0
Indian auto component industry has to work towards creating capacity ahead of demand. SMEs have to invest in greater product and process improvement through meaningful R&D.
- technology management for decision-makers | october 2012
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Emerging Markets Drive
nnovation
As India and China lead global innovation, it is clear the emerging markets are no longer R&D ‘workbenches’ of the West.
C
ompetition in emerging markets is growing fiercer than ever before. Local companies are increasingly investing in R&D and launching competitive products. China and India are the biggest engines driving
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innovation. Together, they are responsible for 20 per cent of global investment in R&D, finds a recent study. According to Roland Berger Strategy Consultants, simple, cost-effective items—‘frugal products’—are particularly successful in the lower and middle
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market segments. Often these products can later be exported to Western markets, a process known as ‘reverse innovation’. The key findings of the new study “Emerging markets are changing the global innovation agenda” in the series “8 Billion Business Opportunities” are described hereafter. In 2012, firms around the world will invest a total of USD 1.4 trillion in research and investment activities, 5.2 per cent more than in the previous year. But how and where that money is being spent is undergoing a fundamental transformation. “Companies in emerging markets are no longer simply the ‘workbench’ of industrialised nations. Local companies
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market scenario
are investing more and more in research projects and developing their own competitive products,” says Bernd Brunke, Partner and Member of the Global Management Team at Roland Berger Strategy Consultants.
Emerging markets drive R&D China and India have established themselves as the most important locations for innovation. Over the past five years, they have doubled the amount they invest in R&D, reaching USD 200 billion in China and USD 40 billion in India. They alone account for around one-fifth of global spending on innovation. The list of the world’s 20 most innovative companies includes five from China, India and Brazil. “The trend towards emerging markets investing more heavily in developing new products puts Western firms under considerable pressure,” says Roland Berg-
er Strategist Michael Zollenkop. He feels, highly developed products designed for industrialised countries are often unsuitable for developing markets.”
Frugal products—from emerging to industrialised countries Cheap products that are easy to use have a much greater chance of success in emerging markets than expensive products with too many functions. Local firms are increasingly developing their own ‘frugal products’ with local needs in mind. “These simple products are manufactured specifically for the low and middle market segment in emerging markets. But often they also gain a foothold in mature markets—a process known as reverse innovation. In the West, these low-cost products offer an alternative to highly developed, more expensive products,” says Brunke.
Frugal products are enjoying great success around the world. Sales of such products grow seven per cent each year worldwide and 10 per cent in China and India. Companies wishing to develop simple, localised solutions for emerging markets need to invest in local R&D—so that they can understand the needs of local markets better. Many companies have already woken up to the importance of developing and manufacturing products locally. Thus, more than two-thirds of firms plan to carry out 20 per cent or more of production in developing countries by 2020, a trend that is growing over time. Modularisation is a key part of the product strategy here. By using standardised components at specific interfaces within the product, companies can keep their production costs to a minimum and react flexibly to any swings in demand.
market scenario
Dwindling PE Investments
PE investments in India in the second quarter of 2012 has decreased in terms of value and in volume – finds the second PwC MoneyTree India report.
J nP rso ete :P n o ati str Illu
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rivate Equity (PE) firms invested US$ 1,616 million across 97 deals in Q2 of 2012, however, compared on Y-o-Y basis, the quarterly PE investments in India weakened 35 per cent in terms of value, while deal volumes fell by 23 per cent (US$ 2,477 million from 126 deals in Q2’11). The IT and ITeS sector emerged as the leader in both value and volume with 38 deals worth US$321 million in Q2’ 12. According to Sanjeev Krishan, Leader, Private Equity, PwC. “This was not a surprise. As the global economic environment continued to remain unstable, the sentiment in the Indian market was also glum. Most investors spent considerable time fretting over the tax changes proposed in the Budget as well as the falling Indian rupee. This created further challenges for funds to exit their existing investments. Fresh fund raising has been challenging too.” However, he further added, “It is not as if PE funds have stopped looking at deals. On the contrary, funds continue to search for deals, particularly in the IT, healthcare and consumer-centric businesses.” When the country has the highest need for capital, some of the trends found in the report include – challenges in raising fresh capital for India-focused PE funds as well as an increase in ‘structured’ deals, as opposed to traditional growth capital investments by fund houses. PE investors exhibited in Q2’ 2012 their interest in Indian businesses and
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Indian affiliates of overseas corporations that are experiencing financial stress. The valuation differences continue and, coupled with higher due diligence cycles and greater scrutiny by the investment committee amid slowing growth means that not many deals are getting consummated. Governance-related issues in PE investee companies have further caused the funds and their investment committees to be cautious. The IT and ITeS sector has seen the highest level of PE funding and the maximum number of deals in Q2’2012. It grabbed the lead from the healthcare sector this reporting quarter with investments worth US$ 321 million from 38 deals, constituting nearly 40 per cent of the total number of deals. This sector’s average deal size increased to US$ 8 million from US$ 7 million in the previous quarter and for the same period last year. “The Indian technology sector revolutionised the capital markets in India by setting new benchmarks for growth, profitability and governance. The sector has shown an ability to use disruptions to its advantage - the Internet revolution created the global service delivery model, the Y2K wave reduced the cost of new client acquisitions and set the stage for master services agreements and transformational multi-year IT deals and the quality revolution helped it maintain its edge. The sector retains its allure for PE investors,” said Hari Rajagopalachari, Leader, Technology, PwC. “The sector’s response to the emergence of next-generation technology disruptions such as cloud computing, analytics, consumerisation of technology, social media, mobility and software product innovation and development will be watched with deep interest,” he added.
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PE investments in the energy sector have dropped to US$ 290 million in Q2’12 from US$ 324 in Q2 ‘11. However, this corresponded with fall in number of deals to five in Q2’12 from eleven compared to the same period of previous year. The PE investment activity in the energy space, although improved over the previous quarter, remains a shadow of previous years. It also continues to be dominated by renewable energy. However, the policy scenario is changing in many states and the near-term future offers much larger and more diversified opportunities in conventional thermal power, mining services and in power retail supply and distribution. The healthcare sector stands third in terms of value, with a US$243 million investment, and second in number of deals, with 12 deals in Q2 ’12. Investments in the education sector also recorded a near 100 per cent growth from US$ 37 mn in Q2 ‘11 to US$ 71 mn in Q2 ‘12. Drivers for increased PE investment in this sector include a lack of public funding, households’ willingness to pay for quality education and the government’s stance on educational reforms. Investors also preferred the unregulated space such as test preparation, vocational education and pre-schools. With the govt encouraging skill and vocational education, this trend is expected to attract more investments.
Private equity exits In Q2‘12, the PE exits were worth US$108 million from 12 deals. When compared to the same period last year, there has been a decline of about 89 per cent in terms of value and 33 per cent in terms of number of deals (US$ 954 million from 18 deals in Q2’11). Almost 49 per cent of the exits by value in this quarter have been through public market sale. On volume, the preferred modes of exit this quarter have been through strategic sale (five exits) and secondary sale (four exits). The healthcare and life sciences sector tops the list for PE exits with a value of US$ 39 million from a single deal - constituting 36 per cent of the total deal exit value. The manufacturing sector in terms of exit volume witnessed three exits, the highest across industries in this quarter. The BFSI sector, which topped the list for PE exits in Q1’12 with an exit value of US$884 million from six deals, did not see a single exit in Q2’12. The sector had recorded two exits totaling US$156 in Q2’11. Region wise, Mumbai retained its first place this quarter by recording highest level of funding with US$489 million (Thirty per cent share of the total PE investments).
industry 2.0
- technology management for decision-makers | october 2012
27
green manufacturing
Beckoning
Biobased Economy There is virtually no limit to the possible applications of bio-based high-performance chemicals to produce substances that are biofriendly. A combination of multiple technology platforms has gained momentum in recent years.
Credit: www.Photos.com
M
ost of us must have seen the Schizophyllum commune (split gill fungus) at some point. Their colonies are formed on dead trees and wounded bark. It has been known since the early 1990s that the fungus protects itself against decay by coating its surface with hydrophobins. These proteins, which are about 100 to 150 amino acids long, are hydrophobic and readily soluble in fat. Closer scientific scrutiny has shown that hydrophobins have the opposite property as well: as is the case with soap, hydrophobins are amphiphilic. This multifunctionality can be exploited to create customer value-add for many products. However, that has not been easy. One mg of the hydrophobins is distributed over an area covering one sq mt on the surface of the fungus. "Far too little ever to be of any use to humans," explained Claus Bollschweiler, a developer at BASF Performance Chemicals and Biologicals. “Biotechnology and genetic engineering provide the only path for producing such a naturally rare but highly efficient protein on a large scale—so that it can be used to develop innovative products.” Genetic engineering techniques and fermentation have only recently made it feasible to produce hydrophobins by the tonne. Functional coatings
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on construction materials are the initial applications including water-repellent insulating foam and silicon sealant—which can be painted over. The silicon will only absorb paint once the surface has been treated with the fungus protein. The application spectrum for new product development is as broad as it is open. The fungus proteins could potentially be used in cosmetics for skin rehydration or in fur colouring products for pedigree dogs and cats. This would be done by linking them to keratinbinding natural or synthetic polypeptides. These hydrophobins might also help achieve functional improvements in pharmaceuticals, textiles and aquaculture feed. Hydrophobins are expected to play a significant role in the chemical production of thermoplastic particles—where static charge on polystyrene foam continues to cause problems. The current approach is to prevent the problem by coating the particles, but the particles tend to stick together when conventional techniques are used, which impairs pourability. There is virtually no limit to the possible applications for
these and other natural substances (e.g., succinic acid and microbial fuel cells) produced with the aid of biotechnology. The same applies to many other precursors and intermediates that the biotech industry is currently introducing. However, in the final analysis, the applications are customer driven.
Intelligent devices and process technologies forced to deal with commodity market volatility, non-payment risks, financial crises, new trade barriers in agricultural and food markets and regulatory conflicts relating to genetically modified plants, companies are noticeably reluctant to abandon so far reliable sources of raw materials, replace equipment that works reliably, modify production processes to handle new materials or build new systems from scratch based on new technologies. Investment—yes, technology revolution—no; me-too products—no, something new— yes, say the decision-makers. As a result, the preference is for components, modules, process solutions and systems—which are able to accommodate differ-
The multi-functionality of hydrophobins can be exploited to create customer value-add for many products. Genetic engineering techniques and fermentation have only recently made it feasible to produce hydrophobins by the tonne. industry 2.0
- technology management for decision-makers | october 2012
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green manufacturing ent raw materials to produce the same end product, and which are suitable for small test series. The expectations of what biotechnology should deliver are high: Z ero waste, utilisation of byproducts A bility to process heterogeneous raw materials and input chemicals to produce the same end products C hangeover during production of multiple products without interruption U tilisation of existing infrastructure Up to this point, there have been few biotech solutions outside of the pharmaceutical industry, which have been affordable and have met expectations on a large scale. That is due to the nature of the technology—the products are generally precursors and intermediates made of
and control technology, modular extraction, separation and cooling systems and miniaturised fractionation and synthesis machines bring biotech applications to the point—where they are suitable for industrial use. Non-proprietary interfaces which provide connectivity to customer systems are becoming more common on automated lab equipment. Among other things, this gives users greater freedom of choice in the selection of reagents. Sensors with autoclavable electrodes that support mobile data acquisition for specific process parameters are now available for fermenters. New differential pH sensors in combination with specialised buffer gels (e.g., maleic acid and diallylamine) eliminate the disadvantages of standard reference systems (KCI half-cell),
There is a public consensus that competition with food production must be avoided. Next-generation biofuels will be made from wood, straw, food residue and plant or animal industrial waste. biological material that is subject to variation. They are seldom of the ‘off-the-shelf’ variety, and it takes additional expertise to produce a saleable product. In addition, biotech process systems are also not plug and play at this stage. Customer-specific modifications are always necessary, and customers must have the confidence that after-sales service will provide dependable support, and will not increase prices after the fact. Combination of multiple technology platforms has gained momentum in recent years. Autonomous machine control, intelligent measurement
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opening the door to real time pH detection under variable temperature conditions. Rapid advances are also being made in the development of separators that facilitate the lucrative utilisation of by-products. Recently, a large algae production plant went into operation in China. Scrubbed flue gas from a coal-fired power station is fed to the algae. The algae plant is capable of capturing up to 2,500 kg of carbon dioxide per day in the form of biomass. The algae absorb the carbon dioxide and metabolise it into substances such as fat and carbohydrates.
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Special separators harvest the algae and concentrate the biomass. The process generates additional value-add from gas emissions through the sale of valuable protein to the animal feed industry. In this instance, the combination of mechanical engineering, electronics, IT and biotechnology makes it possible to optimise existing production processes and generate profitable by-products.
Plant engineering industry The plant engineering industry is also exploiting new opportunities. So far, output cost optimisation and modernisation of old production assets play a bigger role than the construction of new biorefineries. Bioethanol and vegetable oil added to fossil fuel are only the beginning in the petrochemical industry. They are mostly still made from agricultural crops. There is a public consensus however that competition with food production must be avoided. Next-generation biofuels will be made from wood, straw, food residue and plant or animal industrial waste. A number of pilot plants are already in operation. The chemical industry is also getting ready to produce platform chemicals such as glycerin or starch from agricultural feedstock. To do that, it will need components, equipment and process systems that offer production flexibility and are designed to adapt to varying types of feedstock without putting overall operations at risk. Reducing the logistics costs is another deliverable for plant engineering. Oil and biomass will be used to fire power stations in either parallel or alternating mode. Supplemental combustion or gasification of vegetable oil or ethanol at the site of an existing oil refinery or
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power station is an approach that is still in its infancy. Organic hydrocarbons are still cheaper on the world market than bio-based materials. However, the price differential compared to renewables is narrowing. What is now being looked at is not the replacement of oil but instead the alternating use of heterogeneous resources.
Whatever role biotechnology may play, decentralisation of the value-add chain is a fact of life in the power generation, food, animal feed, fine chemicals and clean technologies sector. Processing plants are moving closer to their raw material suppliers and customers. Global players now operate similar to regional suppliers by creating specific product lines. Regional suppliers on the other hand buy the same ingredients, additives and production assets as the large corporations. As a result, value-add is becoming increasingly complex, and companies have to manage greater procurement and delivery risks. How toxic is a particular substance? Did the cooling chain remain intact during shipping? Was the silo really cleaned beforehand as required? Is product contamination below the legal limit? Do the goods really contain the high-grade fat and if so in what proportion? In the decentralised world of global procurement, nucleic acid testing, mass spectrometers, portable Elisa and fluorescence detectors create assurance for the purchasing process and the customers. They are used whenever real time verification of the original product and quality are essential to ensure early elimination of toxicity risks and to enable people to make quick
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Credit: wikipedia
Distributed value-add generates impetus
decisions at affordable cost. The tests often rely on biotech components in the items under investigation, for example: readout of DNA barcodes or photochromic pigments made of genetically optimised bacteriorhodopsin applied with an inkjet printer to protect against product piracy and counterfeiters. For their part, advanced analytical systems encourage the decentralisation of value-add. Highly sensitive DNA testing, for example, is now able to detect minute amounts of GMOs (Genetically Modified Organisms), resulting in a change in procurement policies by large buyers of food and animal feed. In some cases, the limits they set are more stringent than the regulatory requirements. Portable detection equipment and kits are becoming increasingly prevalent, supplementing the standard microbiology techniques and expertise of large labs. Suppliers react by developing products that reflect analytical capabilities, and they introduce greater differentiation in the way in which they service different markets. Batches destined for Cen-
tral Europe contain no GMOs or only amounts that do not need to be declared, whereas this aspect is only of secondary importance for the rest of the world. The deck is being reshuffled, cutting across existing supply chains and national and industry boundaries. In a world of globalised economic relationships, we will be seeing the inexorable advance of biotech methodologies and process techniques, which are cost-efficient and create products that offer greater value-add. Of course the market does not simply soak up innovation. Technology suppliers should not assume that what they have to offer is self-explanatory. They have to work to acquire and retain customers. Potential customers on the other hand who expect the sales force to show up at the door with innovation in hand have already lost the battle. Both sides, technology suppliers and customers, need a dedicated platform where they can get together and hold face-to-face discussions.
Schizophyllum commune or split gill fungus is multifunctional and can be exploited to human advantage.
Courtesy: DECHEMA, Dr Kathrin RĂźbberdt E-mail: presse@dechema.de
industry 2.0
- technology management for decision-makers | october 2012
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supply chain
Potential Unlocking the
Loss of sales due to non-availability of products at the retailer end and lack of visibility of pharma companies into stockholding and stock movement in the post CFA supply chain, have been identified as key concern areas by a new Ernst & Young study.
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understanding the character, dynamics and players of the post CFA (Carrying & Forwarding Agent) supply chain, with the intention of strategically leveraging the pharma channel for growth rather than being limited by its capabilities and constraints was the aim of the survey. The survey findings are structured on the following aspects: Effectiveness of the post CFA in making products available to the end consumer, which manifests in loss of sales over the retail counter Efficiency of the supply chain in terms of the cost of making products available to the end consumer, which manifests itself in excess inventory levels in the channel and a month-end ‘skew’ in stockists’ inventories According to Muralidharan Nair, Partner, Ernst & Young, “With new product introduction driven growth on the wane, effective channel management can be a strategic differentiator for the pharma companies in times to come. Channel management is the key to growing the classic brands but what is less understood is the positive impact it has on the ethical portfolio by virtue of improved trade hygiene and focused efforts of ethical sales reps.” In the words of Tapan Ray, Director General, OPPI, “In the pharmaceutical industry, the sales force plays an important role in demand generation processes and ensures demand fulfilment. Significant amount of work is being done in improving the deployment and training of the sales force to gain competitive edge in the market place. Quantum efficiency in the system has been brought in by many
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companies over the years with thrust on process engineering and process upgradation driven purely by customer-oriented financial parameters. It is about time to integrate supply chain and the demand generation process with a holistic customer focused approach in search of excellence.”
Effectiveness—non-availability leading to sales loss Loss of sales due to non-availability of products at the retailer’s end is a reality in the current pharma distribution setup. However, the incidence and quantum of this loss differs across geographies and product categories. The extent of sales loss varies from 0-1 per cent in metros (across product categories) to up to 5 per cent in tier II and rural geographies (as high as 20 per cent in small OTX brands). The variation in loss of sales across geographies and product categories can be attributed to supply chain aspects such as the reach of the service levels, the working capital constraints of stockists, awareness of customers and financial returns to stakeholders.
Efficiency—lack of visibility of post cfa leading to excess inventories
Credit: www.Photos.com
One of the key operational reasons for excess inventories in the channel is the lack of visibility of pharma companies into stockholding and stock movement in the post CFA supply chain. In the current state, visibility of the post-CFA is limited, and is traditionally through the visits of the sales force to stockists or retailers as well as through the monthly stock and sale statements of stockists. As a consequence of this opacity in the chain, pharma companies rely on primary sales to stockists as a metric for measurement of performance. Driven by sales targets on primary sales, the sales force may resort to pushing stocks to distributors at month end, which may result in a month end skew in stockist inventories. Where there are variances in demand and primary sales is not aligned to secondary sales, there is an inventory pile-up at stockists.
Some implications of gaps in distribution effectiveness and efficiency Faster decline of heritage OTX brands: While the findings of the survey indicate a volume sales
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loss in the range of up to 5 per cent in OTX brands (up to 20 per cent in small OTX brands), primarily in tier II and rural markets, if companies are unable to arrest this loss of sales (compounded over 10 years), it would mean a revenue loss of 30 to 50 per cent. For heritage OTX brands that typically encounter a prescription shift to new molecules, this kind of de-growth will mean faster erosion of brand equity and hasten their decline. Loss of sales could be significantly higher for relatively smaller OTX brands, resulting in their wiped out from the market. 'On the contrary, if companies are able to plug the gap in availability of these categories, it would mean a volume growth of three to five per cent every year, which could almost double the size of a heritage brand over 10 years. The delta between the two cases is 100 to 200 per cent, which emphasises the benefits of ensuring availability. Increased pressure of high growth on existing prescription products: Large pharmaceutical companies typically set targets in correlation with the growth of the pharma market. In the absence of growth of OTX brands, and with new product (molecule) launches ceasing to be a key growth driver after the implementation of the product patent regime, pressure on achieving growth in prescription (Rx) products will be significantly higher. Adverse impact on the growth of existing prescription brands due to conflict of resource allocation: To manage the pressure of high growth, companies could consider two options. They can either neglect heritage OTX brands and invest fully in prescription products, which would indirectly contribute to the faster erosion of heritage brands, or invest the effort of their sales representatives in managing the availability of OTX brands, and thereby detract from their focus on prescription brands. This could lead to a potential conflict of resource allocation leading to sub-optimal performance in both.
industry 2.0
In the pharmaceutical industry, the sales force plays an important role in demand generation processes.
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supply chain ď Ž Month-end sales skew: Lack of visibility of stockholding and movements in the post CFA leads to companies relying on primary sales for setting objectives. If aggressive primary sales targets in prescription and OTX categories do not match the actual demand in the market, it results in month end sales push to stockists.
Way forward For the issues of distribution effectiveness and efficiency identified, the key levers to address the root causes are: i) Increase visibility of channel ii) Release working capital at the stockist's end iii) Ensure generated efficiencies are passed down the channel up to retailers The pharmaceutical distribution and retailing is one of the most complex and less understood aspects of the pharmaceu-
Significant amount of work is being done in improving the deployment and training of the sales force to gain competitive edge in the market place.
ticals business in India. The reason for this is a unique channel characterised by high degree of fragmentation (over 60,000 stockists, semistockists and 600,000 retailers), unorganised independent units with inadequate information infrastructure (highly distributed information assets) and high opacity with sparse visibility of the channel beyond the CFA stock points. While the role of channel is better understood in regard to OTX products, what is probably underestimated is the positive impact of a well-managed OTX portfolio on the performance of ethical products. Hence, we believe, effective channel management is not only a tactical necessity but also can be a strategic enabler for growth.
supply chain
Supply Chain
Challenges in High-Tech Industries
Eighty-one per cent of U.S. executives feel FTAs in Asia is a key factor to global trade growth in the long-term. But, seventy-two per cent of the executives feel supply chain (SC) costs will be one of the top drivers of change in the high-tech SC in next three to five years.
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espite economic uncertainty around the world in the short-term, U.S. high-tech executives are optimistic about the long-term future of global trade and U.S. exports â&#x20AC;&#x201C; due to rising demand for high tech products around the world. The findings come from UPS's annual "Change in the (Supply) Chain" survey, conducted by IDC Manufacturing Insights and targeting U.S.-based senior-level supply chain decision makers in the
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high-tech or electronics industry. The survey was designed to uncover top business and supply chain trends driving change in the high-tech or electronics industry. The 2012 survey focused specifically on exporting and was conducted in May through July 2012. Among executives who expressed optimism in the long-term growth of (US) exports, nearly one in three attribute this to the steady increase in disposable income in emerging markets. Another
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third cite rising labour rates in traditional low-cost manufacturing countries as a primary factor, and approximately one in five cite legislative changes such as recent free trade agreements in Asia. A large majority, 81 per cent, of U.S. high-tech executives anticipate recent free trade agreements in Asia will increase their company's imports and exports to and from the region. Although North America is anticipated to remain the largest high-tech consumer market over the next three to five years, demand for high-tech products is expected to decrease by seven per cent in the region while demand in other markets is expected to increase, in some regions by doubledigit percentages. Specifically, executives report plans to increase sales or fulfillment in India, the Middle East and Africa by 22 per cent each and in Brazil by 18 per cent. Sales or fulfillment in other South American regions is expected to increase 19 per cent. Eastern Europe (15 per cent), Korea (13 per cent), China (8 per cent) and other Asian nations (8 per cent) also rank on the list of top high-tech consumer demand markets. "The anticipated shift in consumer market demand for high-tech goods brings opportunities and challenges for high-tech companies," said Ken Rankin, High-tech Marketing Director at UPS. "Global demand will continue to grow in new and existing markets, causing supply chain executives to shift not only their fulfillment operations but also their sourcing strategies to serve those markets. We have already begun to see such a shift as companies look to India and Brazil as key markets not only for fulfillment but for production as well.”
Credit: www.Photos.com
Outlook on the future of U.S. exports Most surprising is the sizable increase in optimism around the 2014 U.S. export goal. Not only do 85 per cent believe the goal is ultimately attainable, but 21 per cent believe it is ‘very likely’ to be achieved. In addition, a full 74 per cent of high-tech executives expect to see growth
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in the individual export of their company's products within the next two years. When asked why they anticipate global trade growth, 81 per cent of U.S. executives cite free trade agreements in Asia as a key factor. Respondents also cite emerging market economies and their growing middle class with an ever increasing appetite for technology products. Assessing individual opportunities for international trade growth, only about one in four hightech executives believe their company's import or export capabilities are best-in-class and 72 per cent report that opportunities for improvement exist. Of that group, 22 per cent report that significant opportunities remain for their company to improve its import or export capabilities.
Nearly 48 per cent of high-tech executives feel 'extended lead time' is one of the top pain points in SC management.
Looking ahead: changes in the high-tech supply chain Supply chain costs (72 per cent), lead times (40 per cent) and responsiveness (18 per cent) rank as the top three drivers of change in the high-tech supply chain in the next three to five years. Nearly half, 48 per cent, of hightech executives cite extended lead times as one of the top three pain points in the import or export process, in addition to managing inventory (42 per cent) and end-to-end visibility (38 per cent). Unstable suppliers and intellectual property protection follow closely behind on the list of pain points, at 37 per cent and 30 per cent of executives citing these as issues. "For high-tech companies, demand changes quickly and rapid innovation is a necessity. The winners will be those companies that successfully leverage the emerging market growth with strong products and execute import or export excellence. The winners will be those companies that successfully leverage the emerging market growth with strong products and execute import or export excellence,” said Rankin.
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supply chain
Automating the Sales Force Manufacturers in developing countries encounter more or less similar challenges. Datamax-O’Neil's strategy to enhance Ajinomoto Indonesia’s supply chain and spike sales figures is hence insightful
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eal-time, accurate information of product stock availability is extremely vital to a sales team. Experts observe that availability issues in a supply chain are often due to underlying inefficiencies rather than insufficient stock. An established Indonesian company, PT Ajinomoto Indonesia, experienced this firsthand—when it realised its need for a Sales Force Automation (SFA) system a few years back. Founded in 1969, PT Ajinomoto Indonesia is the company behind household brand Ajinomoto, as well as several other seasoning and beverage products well-loved by Indonesian families. For 40 years, the business enjoyed great
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support and has grown to offer a diversified portfolio of products today. In 2009, the management at Ajinomoto Indonesia noticed a growing problem with its mode of operations.
Relooking at capabilities With 500 teams of salesmen and supervisors spread across Indonesia, the sales force operates in a decentralised manner like a well-oiled machine. However, the management noticed that its staff productivity and sales data accuracy were lower than what they had expected. A closer look revealed that the primary cause was the operation’s reliance on paper-based records for all sales transactions. Clearly, Ajinomoto Indonesia needed a better alternative to documentation and
- technology management for decision-makers
track its processes. “While the existing system served us well for many years, it was not sufficient to keep up with the times or the size of the business,” shared Kaspar Situmorang, IT Architect Manager of Ajinomoto Indonesia. “At the end of each day, the sales team would have to manually submit each transaction to the finance team for processing. It was counterproductive as both departments would often have to clock overtime just to complete the handover and it slowed down the monthly financial closing.” Aside from human error and lowered productivity, the sales teams were also not maximising sales due to the inaccurate information it had on stock availability. Ajinomoto Indonesia supplies to its customers from almost all cities across Indonesia, including Jakarta, Bandung, Medan, Yogja, Makasar, Palembang and Denpasar. With so many locations to serve, Ajinomoto Indonesia’s supply chain network is
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intricate and can be tricky to manage. A lack of clear visibility on how much stock remained in the warehouses meant that the sales teams were wary about overpromising customers. The fear of an inability to deliver would often result in loss of sales as various teams underestimated the true volume of units in stock. As a result, the management of Ajinomoto Indonesia was determined to find a solution to overcome these issues.
Employees of Ajinomoto Indonesia are undergoing product training conducted by Autojaya Idetech.
Adopting new technology Ajinomoto Indonesia’s search for a solution led them to PT Autojaya Idetech, one of Datamax-O’Neil’s trusted partners in Indonesia. With 21 years of experience in Automatic Identification and Data Collection solutions, Autojaya Idetech is well-versed in the technology, and is an established leader in the industry. In its consultation with Ajinomoto Indonesia, Autojaya Idetech recommended a combination of Datamax-O’Neil’s portable thermal receipt printer, OC3 BT, with an integrated wireless mobile computing system. The portable printer is a crucial component of the SFA, as sales teams must be able to bring them wherever sales visits are made. Ajinomoto Indonesia identified the need for a rugged receipt printer that was portable enough for salesmen travelling in their vans. With its robust nature, compact size,
wireless connectivity and long battery life, the OC3 was a perfect match for Ajinomoto Indonesia’s needs in the field. Since Ajinomoto Indonesia’s implementation of the SFA, its problems of human error and inaccurate stock availability have been resolved. When asked for their feedback on the Datamax-O’Neil OC3, Kaspar commented, “Instead of issuing handwritten chits and orders, we can now generate receipts with these printers while orders are being made. Meanwhile, stock availability is also updated at real-time, so we have full confidence that the information is accurate. Our sales orders have even increased by more than 30 per cent. Importantly, other than
increased confidence in their stock availability, Ajinomoto Indonesia’s staff is also much more productive with the new SFA in place. “In the past, our staff spent a lot of time handling paperwork after work hours,” said Kaspar. “With the new system, that step is no longer required. The precious time saved can be put to better use.” Another factor that influenced Ajinomoto Indonesia’s final decision to appoint Autojaya Idetech was the strong pre and postsales customer support offered. Together with the company’s expertise and competitive prices, Ajinomoto was assured of the best returns on investment in both products and services it purchased. “The level of commitment demonstrated by Autojaya Idetech was commendable,” revealed Kaspar. His confidence in their solutions is obvious when he says, “Their rich experience convinced us that we can trust them to provide complete solutions for our business’ needs.”
Since Ajinomoto Indonesia’s implementation of the SFA, its problems of human error and inaccurate stock availability have been resolved. www.industry20.com
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event report
xperts are fielding questions from the E attendees during panel discussion.
Prasad Phadke, Country Category Manager -- Workstations, PSG, HP India, is explaining how engineering workstations can enhance productivity in design and simulation.
. V. Sivaram, P MD, B&R Automation, and a Member of Executive Council of Automation Industry Association, Pune, is delivering his speech on the value of automation for SMEs.
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Accelerating Your
Business
Growth Pune-based SME manufacturers received updates on latest opportunities to cost-efficiently upgrade their IT infrastructure.
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urpreet Singh Brar, G Director - SMB & Commercial Channel, Personal Systems Group, HewlettPackard India Sales Pvt. Ltd., is replying to questions from the inquisitive audience.
( LtoR) Satish Gokhale, Director, Industrial Design, Design Directions; A. Huddar, MD, PELF Infotech; Vishal Dhupar, MD - South Asia, nVIDIA; are taking part in a panel discussion — Partner Ecosystem to Accelerate Business Growth & Profit .
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ndian manufacturing companies are well known for their skill and ingenuity. They are also renowned for their ability to leverage new technologies to accelerate businesses and boost profits. In their quest to become more innovative, many of them are using digital manufacturing solutions to speedily design, model and validate a wide variety of parts and assemblies. Using software tools like CAD, CAM and PLM, they are meeting the needs of the customers with better quality, fewer iterations and greater speed. However, software alone is not enough to enable innovation and productivity. It is important that mission-critical engineering and design solutions run on the right hardware. Hardware, those are highly optimised, reliable, certified and manageable. Hardware those facilitate productivity and profits. Industry 2.0 and Hewlett-Packard (HP) India Sales Pvt. Ltd., together recently organised an event in Pune to expose the SME manufacturers on issues like: how to significantly boost innovation capabilities with the right manufacturing solutions, how to put in place a reliable platform for engineering design and how to choose the right combination of hardware and software for improving collaboration on product development. The event turned into a complete knowledge sharing platform – as in his inaugural address, P. V. Sivaram, MD, B&R Automation and Member, Executive Council, Automation Industry Association,
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Woon Yung of HP is detailing on how a right combination of hardware and software can help Indian SMEs in fast designing and simulating their products.
focused on the need of automation to enhance productivity and raise quality standards in the Indian small and medium manufacturing companies. He also stressed on the need for the world-class IT infrastructure in the Indian manufacturing SMEs to complement the best quality of automation. Prasad Phadke, Country Category Manager – Workstations PSG, Hewlett-Packard India Sales Pvt. Ltd., explained the opportunities that HP offers to the Indian manufacturing SMEs. Woo Yung from HP, through his detailed and practice-oriented presentation drew the attendees’ attention on how the right combination of hardware and software could take them to the next higher level of business excellence to be globally competitive. In an interactive panel discussion, Satish Gokhale, Director – Industrial Design, Design Directions; Ajinkya Huddar, MD, Pelf Infotech; Vishal Dhupar, MD – South Asia, nVidia and Gurpreet Singh Brar, Director – SMB & Commercial Channel, Personal Systems Group, HP fielded many questions from the audience – which mostly consisted of top-level decision makers from the Pune-based manufacturing SMEs. With a view to giving a touch-feel experience to the SME leaders from Pune, HP also displayed a series of IT gadgets like industrial printers, PCs etc., in the venue. Many decision makers from the manufacturing SMEs interacted with the demonstrators and received valuable updates on them.
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product gallery Industrial Robots
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NExia will be distributing the newly-announced Baxter robot from Rethink Robotics in the US. According to Rethink Robotics of Baxter—unlike traditional industrial robots, Baxter exhibits behaviour-based ‘common sense’, capable of sensing and adapting to its task and environment. It requires no complex programming or costly integration. And with its uniquely low price point, Baxter provides a compelling alternative to low-cost offshoring for manufacturers of all sizes. As a result, Baxter is being introduced into a wide range of plants that could previously never consider a robotic automation solution. ONExia Inc Tel: + 1-800-242-3332 Website: www.onexia.com
Level Switch
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onitor Technologies’ new 2-vane collapsible paddle is insertable from the outside of a bin or silo through a 1-1/4” NPT or 1-1/2” BSPT coupling. This stainless steel paddle assembly can be used with Monitor’s SafePoint fail-safe and Model KA/KAX rotary paddle level switches. The ‘spring’ action of the paddle also allows it to be removed from the same opening if needed. The 2-vane design and the 8.66” (220 mm) turning diameter allow the paddle to provide dependable level indication for average bulk density materials. This paddle can be used with level switches that are mounted vertically or horizontally. Monitor Technologies Tel: +1-800-766-6486 Website: www.monitortech.com
Radar Solutions
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nfineon Technologies has introduced its first single-chip radar solutions for applications in industrial and commercial sensing. Based on a SiGe process technology
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and operating in the 24 GHz ISM band (24.0–24.25 GHz), the new product family features the highest integration radar system-on-chip transceivers in the market and a companion receive only chip, which collectively provide system designers with the flexibility to achieve cost and performance targets in a diverse range of applications. The three devices in the new family are the BGT24MTR11 (single transmit and single receive channel), BGT24MTR12 (single transmit and two receive channels) and BGTMR2 (twin receiver). Moving from one single receiver to two or more receive channels allows implementation of systems that detect objects more precisely and at wider angles. Infineon Technologies AG Tel: +91-22-40104177 Website: www.infineon.com
Inspection Tool
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achine Vision Products’ (MVP’s) 850G DW metrology-based AOI has recently won the award for the Best New Product-USA, at an award ceremony held at the SMTA International show in Orlando, Florida. The product, Die Wire Metrology System, uses advanced optic and handling solutions to provide the latest in Die and Wirebond inspection. Key capabilities of the 850G DW are capability to inspect, gold, silver, aluminium and copper wires. With a resolution of down to 1 µm, a variety of bond types including wedge, ball, stitch, crescent and tape can be inspected. In addition, the 850G is capable to inspect the die for placement metrology, and for surface and edge damage and also for bond layer and the epoxy flow and spread. Machine Vision Products (MVP) Tel: (760) 438-1138 Website: www.machinevisionproducts.com
Tool Setter
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aser Tool Setter LTS35.65-23 may be used for any small instrument designed specifically for use in machines with a limited footprint, such as those used in dentistry.The instrument can reliably measure lengths and radii on parts with a minimum diameter of 0.025 mm. The air nozzle for tools that featured on earlier m&h lasers is also integrated into this small model. The nozzle ensures that the actual cutting edge of the tool is measured rather than any adhering chips or dirt. As with the larger models, during development of the LTS35.65-23 the focus centred on the robustness and process-reliability of the system. A sealing performance complying with IP68 standard, an air curtain and securely closing optics are just some of the features. Hexagon Metrology Services Ltd Tel: +49 (0) 7529 9733 63 Website: www.hexagonmetrology.com
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Impact Wrenches
Lathe Chuck
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he ROTA NCS lathe chuck has six-jaw design, leading to high clamping forces, maximum precision and minimum effort. As per the manufacturer, since the ROTA NCS is hermetically sealed against dirt and coolant, it is maintenancefree. All functional parts are hardened and ground, which ensure a long life. The sealed six-jaw power chuck from SCHUNK is suitable for demanding precision machining. With active pull-down force distributed on six jaws, highest axial run-out accuracy, and the best run-out available. Schunk Tel: +91-80-40538999-202 Website: www.schunk.com
Oil Cleaner
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he ROC 5 Envi-ro-fuge System is specially engineered to clean oil for large engine and pumping systems. Utilising a centrifugal force of over 2000 G's, it removes contaminants as small as 0.5 microns. The clean oil minimises engine wear and greatly extends time between overhauls and oil changes. When oil change is required, the cleanliness of the used oil makes its recyclable, virtually eliminating hazardous waste disposal costs. Many of today's large engine and pumping systems have operating tolerances down to the 1 micron level—while most oil filtering systems rarely do better than the 5 micron level. By removing contaminants 10 times smaller, the ROC 5 takes out the minute abrasive grit, soot and dirt that wear highly precision fitted pistons, gears, shafts, cams and bearings. It spins these harmful contaminants into a solid cake that is easily removed without shutting down operation. Magstar Technologies Tel: 800-554-6077 Website: www.magstar.com
Air Compressor
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aeser Compressor offers a portable compressor M350 that can deliver up to 1200 cfm at 125 psig. The unit includes a large fuel tank, easy access to maintenance points, and an anti-frost valve— as well as a low carbon particulate production diesel engine, an SCR catalytic converter and other equipment. According to the manufacturer, the powerful combination of an efficient Kaeser rotary screw air end and a Mercedes Benz engine provides impressive compressed air delivery with minimal emissions and fuel consumption. Additional innovations help boost savings even further. Kaeser Compressor Tel: +91-20-667 69 240 Website: www.kaeser.com
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he Chicago Pneumatic CP82 Series is a robust and versatile composite impact range covering most of the industrial maintenance needs. According to the manufacturer, combining a robust design for harsh environments, various ergonomic features, such as a suspension bail, low noise level and a full teasing trigger, the series perfectly fits any type of industrial maintenance operations in oil and gas, petrochemical or mining applications. Delivering from 59 to 1217 ft-lbs of torque (80-1650 Nm), the CP82 series matches both basic and demanding needs. Chicago Pneumatic Tel: +91-9967047733 Website: www.cp.com/en/whatwedo/powertools
Gas Detector
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xetris AG has launched its LGD F200 Laser Gas Detector modules for monitoring of ammonia in power plant and marine engine. Their Selective Catalytic Reduction (SCR) applications offer a measurement range as low as 0-20 ppm. The self-contained modules are designed for integration by Original Equipment Manufacturers (OEMs) of SCR systems and monitoring equipment and are based on proprietary technology-enhanced tunable diode laser spectrometry. The modules operate from sub ppm-levels to 20, 50, 100 or 1000 ppm—and combine advantages like high selectivity, contact-less hot-gas measurements, low-cost of ownership and continuous sensor status monitoring. Axetris AG Tel: +1 855 855 534 7837 Website: www.axetris.com
Smart Camera
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eledyne DALSA, a Teledyne Technologies company, has announced that its BOA Smart Cameras now support PROFINET IO, a high-level network for industrial automation applications. Built using standard ethernet technologies, PROFINET IO defines a network structure for exchanging data,
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product gallery alarms and diagnostics with programmable controllers and other automation controllers on the factory floor. PROFINET IO is a widely used open standard supported by PROFIBUS and PROFINET International, the largest automation community in the world. The DALSA BOA smart camera is a highly integrated optical inspection tool for controlling quality and increasing productivity. It comprises all the elements of an industrial machine vision system in a tiny smart camera style package. Teledyne DALSA Tel: +1 514-333-1301 Website: wwww.teledynedalsa.com
Vacuum Pump
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gilent Technologies has launched MS-101, a new addition to the company's comprehensive line of single-stage rotary vane pumps (the MS series) and roots pumping systems (the RPS series). The product enhances the company's offerings for industrial processes such as vacuum metallurgy and thin-film coatings. As per the manufacturer, it provides controlled environments in small to mid-sized vacuum chambers with the best pump performance and throughput, as well as high reliability, durability and ease of maintenance. The MS series complements Agilent's diffusion and turbo-molecular pump lines, which all together provide complete, performance-enhanced vacuum systems for industrial processes. Agilent Technologies Tel: +1-408-553-2005 Website: www.agilent.com
Oven Systems
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as fired and electrically heated hot air web heating, drying and/or curing oven systems are used extensively in the paper, film, foil and textile industries—for heating materials for laminating and drying and curing coatings and adhesives, and drying and curing water and solvent-based coatings on webs of essentially any size. David Weisman is offering different kinds of heating systems. The company designs and manufactures gas and electric infrared heater/control packages, and infrared, hot air/convection and combination ovens. David Weisman, LLC Tel: +1 203 322 9978 Website: www.daveweisman.com
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Sanding Tool
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nap-on Tools Company's MLT3400 Belt and Disc Sanding Machine Tool is a multi-use piece of equipment that delivers high-quality performance for a variety of sanding and polishing tasks. The unit offers users the complete package for fast roughing and fine finishing, while sharpening and shaping a variety of materials including metals, fibres, glasses, rubbers, leathers, ceramics, stones, plastics and woods. The MLT3400 offers a versatile belt that adjusts horizontally, vertically and every position in between. An adjustable and detachable miter table offers precise measurements. Operators can sand in a variety of ways, including through a rubber contact wheel, free belt or free disc. The quick-change, 100-grit belt and 80-grit disc are standard with the MLT3400, and offer users immediate sanding ability. Snap-on Industrial Tel: +1 877 740 1900 Website: www.snapon.com
Measuring Instrument
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hether pH or redox value, electrolytic conductivity, resistance of ultrapure water, temperature, disinfecting measurement parameters (such as free chlorine, chlorine dioxide, ozone, hydrogen peroxide, and peracetic acid), or the flow rate quantity, the new Jumo Aquis touch S provides a central platform for displaying and further processing the corresponding sensor signals. Up to four analysis parameters can be connected directly—and others can be connected using standard signals. The device can measure and manage up to 10 parameters simultaneously. Frequency inputs (counters) are available for flow rate measurements. Measured values can also be converted into standard signals 0/4 to 20 mA or 0/2 to 10 V, and exported for further processing in a controller/PLC. JUMO GmbH & Co KG Tel: +49 661 6003-0 Website: www.jumo.net
Welding Inverter
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YSMI 253 CEL is a professional 400V 3-phase 250A MMA/TIG, portable welding inverter from GYS Ltd. The device can weld using a very wide power supply source ranging from 340V-460V, even when being used with long power supply cables. It is rated 250A at 100 per cent duty cycle. With a Uocv Start Voltage of 100V, it is highly capable of welding cellulosic welding electrodes ranging from 1.6–5 mm to welding mild steel, stainless steel, cast iron and aluminium. SAS GYS Tel: +33 (0) 2-43 01 23 60 Website: www.gys.fr
- technology management for decision-makers
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Food Pelletiser
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orking with Coperion GmbH, the Dutch company, Dinnissen BV, Sevenum, has developed a new production line for the food industry—‘Magi-N.ext’. This new production line permits the production of a wide range of preserved and particularly wholesome and healthy convenience foods. Performing a key function in this production line is the ZSK MEGA volume PLUS twin-screw extruder featuring 54 mm diameter screws, custom-made for this application. The starch components of the various recipes are gelatinised by means of an extrusion cooking process. The extruder produces a homogeneous mixture of all the constituents of the recipe and to reduce the moisture entrained by the fresh products such that directly expanded, easily manageable products can be obtained at the pelletising stage by a centric pelletiser ZGF 70.
Coperion Ideal Pvt Ltd Tel: +91-120-4299333 Website: www.coperion.com
Glass Sealer
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ystronic glass offers highspeed glass sealing machines. Flachglas Uhsmannsdorf GmbH, a company that produces high-quality branded insulating glass has been using Bystronic’s machines. A branch manager, Alfred Bayer, at Flachglas, informs, “To equip our production in Uhsmannsdorf for the constantly growing demand for triple glazing, we needed a flexible sealing machine, which allows us to rapidly produce a large amount of insulating glass units. With speed sealer flexible sealing of triple insulating glass units in a variety of spacer widths within a dual cycle is achievable without changing nozzles and downtime eliminated.” Global Glass Technical Solutions Tel: + 91-99 10 38 84 56 Website: www.bystronic-glass.com
VariMax-IFRG-image
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arimax IFRG is an ultra-high-efficiency, industrial, indirect-fired gas heater used to heat process air streams without contaminating the air with the products of combustion. The IFRG is particularly useful for spray dryers and industrial processes with high temperature rises. The counterflow heat exchanger with hot side recirculation results in efficiencies of 90 per cent plus. The energy savings result in a short payback with savings year after year.
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Standard IFRG features include stainless steel heat exchanger, FM or IRI certified gas trains and complete heater controls. The IFRG is custom designed for each application with 1000°F max temperature rises and exit temperatures up to 1200°F. Munters Corporation Tel: +1 540-291-1111 Website: www.munters.com
Chemical Reactors
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upercritical Fluid Technologies introduces a new series of stirred reactors for high pressure chemistry. The HPR Series Reactors have been designed for researchers—who are interested in performing pressurised chemical reactions in their laboratories. Whether it is high pressure chemical synthesis or process development, the HPR Series is a usable unit for those applications. The reactors range in size from 50 ml to 4 litres and may be operated up to 10,000 psi and 350°C. They have a magnetically coupled impeller for optimal mixing. All high pressure components are ASME rated and protected by a rupture disc for safe operation.
Supercritical Fluid Technologies, Inc Tel: 302-738-3420 Website: www.supercriticalfluids.com
Position Sensors
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acro Sensors offers its Miniature ACOperated LVDT Position Sensors in high pressure and temperature configurations to perform in harsh environments. Vented versions of the CD 375 Series of Miniature LVDTs are also available for operation in pressurised fluids. Offering a lightweight, low mass core and a compact 3/8” diameter, these AC-operated LVDT Position Sensors are ideal for high response dynamic measurement—such as valve position and pneumatic cylinder positioning as well as serving as integral parts of small mechanisms, which require units to withstand high pressure and high temperature. Macro Sensors Tel: +1 856-662-8000 Website: www.macrosensors.com
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