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november 2012 PRICE 100


RGMs’ growth looks set for a quick rebound in 2013


Government and industry need to work together


Managers should think beyond compliance

Innovation Value Chain Integrated strategy is the key factor for success

editorial Vol. 12 | Issue 03 | november 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 For subscription details, write to For sales and advertising enquiries, write to For any customer queries and assistance, contact 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

Focus on Employability


ndian manufacturing industry is showing a healthy growth trend, beside the global economic volatility. It is really a matter of pride that of late new orders are coming at an accelerated speed. According to the recent report titled “2013 Global Manufacturing Competitiveness Index” published by Deloitte Touche Tohmatsu and the U.S. Council on Competitiveness, “Over the next five years, 20thcentury manufacturing stalwarts like the United States, Germany and Japan will be challenged to maintain their competitive edge against emerging nations such as China, India and Brazil.” Based on an analysis of responses from more than 550 CEOs and senior leaders at manufacturing companies around the world, the index shows that the landscape for competitive manufacturing is in the midst of a ‘massive power shift.’ As the report suggests, current competitiveness index score of India is 7.65 (out of 10), which is expected to reach 8.49 in the next five years from now. However, challenges are mounting in front of the Indian manufacturing industry. Input costs (especially raw material cost) are rising. In many companies, apprehension of further rise in cost of raw material is influencing the decision to build inventory, which is very risky. Shortage of skilled workers is also growing. And at present, perhaps the best challenge is arising from political uncertainty. More than technology or manage-

industry 2.0

P. K. Chatterjee

ment issues, in the coming days, political issues may offer more stumbling blocks to the growth path of the industry. Election manifestos that are being published these days by the political parties need to be refined through the screen of possibilities. Agenda that target mere political mileage yield lots of new challenges for the business runners. Productivity has to increase at all levels and sectors – especially in the labour intensive sectors. Today, enhancement of true employability needs to top the agenda of any political party. If employment generation is targeted at the cost of output per person, then neither the growth of manufacturing industry nor even its competitiveness will sustain. Thus, the political will has to target at creating more employability, which will inherently act to wipe out unemployment. Non-commercialisation of the technical education and a focus on creating genuinely industry-ready people will definitely support the growth momentum of the industry. Also, we need more initiative to facilitate collaboration between the manufacturing industry and the technical institutions. Although, the emerging economies are on the verge of a great economic boom, and India is still holding a leading position in the race, as far as the manufacturing sector is concerned, the nation should be careful not to let-go the great opportunity ahead because of the whims and fancies of the political leaders.

- technology management for decision-makers | november 2012


contents advertisers’ index Exxon Mobil...................................IFC National Instruments...................... 3 Accenture......................................... 5 Schneider.......................................... 7 Bry – Air Asia.................................... 9 PCI Limited...................................... 11 NBC..................................................13 Elcon.................................................15 Delta................................................ 27 CHEP ...........................................44-A Omron Automation.......................52 Ace Micromatic............................ IBC GW Precision................................. BC

cover story 16 Making Innovation Structures Work At either the corporate or business unit level, 46 per cent of managers say that their companies have separate functions in place to drive innovation. Followed by them, 36 per cent say the same about central R&D functions. Only 27 per cent of the managers talk about corporate-wide innovation initiatives staffed with rotating talent.

Despite high drug prices, biopharmaceutical firms are not able to fulfil market demand currently.

opinion 32 Enhanced Manufacturing Competitiveness

sector update 30 Improving Efficiency Indian power sector needs integrated automation.


november 2012 | industry 2.0

Industry Update.............................04 Techwatch.......................................12

38 Maintaining Success Rate Beside being environment-friendly, Fagor’s new plants offer flexibility.

Elecon decided to invest on a scalable storage solution that could support them for a long time.

Regional variations in terms of economic expansion are evident across the rapid growing markets.

Tata Astrum’s product and service offerings have been designed keeping in view the SME segment.

Advertisers’ Index..........................02

information technology 40 Managing Data Storage

24 Quick Rebound Expected

materials & processes 29 Addressing Challenges of Indian SMEs

Editorial........................................... 01

Product Gallery..............................48

Cover Design: Shigil Narayanan

market scenario 22 The Next Big Potential


43 New Approaches for

Infrastructure Security

A collaborative approach between the govt., and industry is needed for better penetration of robotics.

management & strategy 36 Shaping the Success COOs are facing an ever increasing volume of data to analyse.

- technology management for decision-makers

Willingness to think beyond compliance and accept security as a philosophy is necessary.

supply chain 46 Causes behind Supply Chain Disruption The leading cause of supply chain disruption is unplanned IT or telecom outages.

industry update TI gears up to manufacture fuel tanks in India


eeping in view the rapidly increasing global demand for plastic fuel tank systems, and realising the need for dedicated production facilities in order to support the local customer base, TI Automotive; a global supplier of fluid storage, carrying and delivery technology; has recently opened its fifth facility in India. The new Chennai facility spreading over 73,000 sq ft (6,800-sq m) produces fuel tank systems for Nissan vehicles built in India. “India provides exciting growth opportunities for global suppliers as vehicle production and market demand continue to increase. With this new facility, Bill Kozyra, Chairman, CEO and President TI Automotive we have expanded our reach to bring our long-standing fuel tank systems’ expertise to the region in order to meet the needs of our customers,” says Bill Kozyra, Chairman, CEO and President, TI Automotive. TI’s other four plants in India produce fluid carrying systems.

UPS eases international supply chain management


PS has enhanced its global ocean and air freight forwarding product, UPS Supplier Management, with the introduction of UPS Order Watch, a cloud-based technology platform, which allows customers to more efficiently collaborate with international suppliers and better manage their inbound supply chains. As per the logistics firm, enhancements to the service include added capabilities to enable greater accuracy and timeliness of overseas vendor bookings; improved processing and management of suppliers; automated excep-tion management; near real time shipment status and detailed line-level visibilty of in-transit inventory; improved internal operational processes; and facilitation of Purchase Order consolidation and optimised shipping plans.

Tom Boike, Vice President of Supplier Management at UPS says, “Companies are beginning to look to the cloud for opportunities to improve supply chain collaboration and reduce operational inefficiencies. Through scalable cloudbased supply chain management technologies – such as UPS Order Watch – companies are not only able to streamline management of vendors, but also manage all of their inbound shipments via a single platform. This can provide opportunities to consolidate ocean freight shipments and improve container usage to realise cost savings, which is increasingly important as COOs are looking for ways to mitigate ocean transportation costs following the ocean carrier rate increases in 2012.”

Siemens to widen its portfolio of industry software


fter acquisition of LMS International NV (Leuven, Belgium), a known provider of test and mechatronic simulation software including model-based systems engineering to the automotive, aerospace and other advanced manufacturing industries, Siemens will become a Product Lifecycle Management (PLM) software company to provide a closed-loop systems-driven product development solution – extending all the way to integrated test management. The integrated solution will increase simulation accuracy, which improves decision making and enhances customers’ ability to design


november 2012 | industry 2.0

the product right the first time. The decision making process is underpinned by a deep and accurate virtual analysis linked to the physical world. According to the company, the approach unites the virtual and real worlds – and is well positioned in integrating virtual product development with physical manufacturing. The complexity of today’s products demands a systems driven approach to product development. A key element of this approach is systems engineering, which requires the merging of the virtual and physical domains for product development. With the acquisition of LMS, Siemens can provide a complete

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suite of virtual design, simulation and physical performance testing applications intelligently integrating all aspects of the new product development process. “With the acquisition of LMS, we are expanding our portfolio of industry software in an area that is critical for many customers. They will now be able to simulate, test, optimise, and produce their products in a unified, consistent data environment. This will make them faster, more efficient, more flexible, and more cost-effective,” says Anton S. Huber, CEO of the Industry Automation Division.

industry update Intergraph integrates engineering design basis with reality


he recent introduction of a Leica TruView Integrator for SmartPlant Enterprise as well as offline mobile device support for SmartPlant Enterprise for Owner Operators (SPO) by Intergraph has been highly appreciated by the manufacturing community. According to Intergraph, the global provider of enterprise engineering and geospatial software that enable customers to visualise complex data, the new SmartPlant Enterprise/SPO TruView Integrator enables end-users to use photorealistic and intelligent TruView laser scans as an intuitive portal to access all plant information and documentation in SmartPlant Foundation. The new SPO Mobile Core and SPO Mobile Operating Plant solutions go one step further and leverage these intuitive, photorealistic access options to support day-to-day plant operations and activities such as maintenance, inspection and equipment isolation in online and offline mode. Ludwig Englmaier, Head – Engineering Department for AlzChem AG, says, “We have been using Intergraph tools for many years to manage the virtual plant asset for our plants at AlzChem. We recently selected SPO and will be rolling it into production over the coming weeks. We are excited about SPO Mobile Apps with TruView Integrator, and will be

seeking to implement them as soon as possible. We believe these will help us bring the immense value of the virtual plant asset directly to workers on the plant floor. Today, plant workers performing inspection and maintenance activities spend too much time locating the items they need in the plant. SPO Mobile with photorealistic TruView visualisation will help our plant workers carry out their work safer, quicker and better than ever.” Bill Van Butzelaar, Woodside Operations, Business Improvement Manager, Woodside Energy, says, “The use of a photorealistic representation of a plant as an intuitive user interface into asset information will drive significant improvements in efficiency. With laser scanning and photo capture, the time to capture ‘as-exists’ physical asset information is greatly reduced. When combined with the rapid capture of other plant information using Intergraph’s SmartPlant Fusion, the time required in finding and accessing specific plant data or documentation on a daily basis is dramatically reduced. Additionally, when you consider the reduction in health and safety risks as a result of reduced on-site time, it becomes very obvious that photorealistic plant information browsers will play a very important role in the industry in the future.”

GD receives award for innovation


aking into account These awards the assertive iniwere instituted by tiative to shape reverse Sustainability Outlook supply chain efficienwith the vision of cies in the IT, mobiles identifying, recognising and other segments in and celebrating the the Indian marketplace, thought leading, Green Dust (GD), a veninnovative and path ture of Reverse Logisbreaking sustainability tics Company, has been efforts of progressive recognised for empowIndian companies. ering value chains to be “It has been our sustainable. The company unwavering endeavour has pioneered branded to avail an opportunity quality factory seconds to our customers to Hitendra Chaturvedi Founder & M.D., Green Dust backed by a 50-point conveniently shop for quality inspection probargains, while offering cess to guarantee the quality. It has manufacturers, distributors and other been recently accredited with Corporetailers an alternative, organised sales rate Sustainability Stewardship Award channel. We are thoroughly pleased to for Innovation in Business Model and be awarded for our business model and Strategy at Parivartan Sustainability strategy,” says Hitendra Chaturvedi, Leadership Awards 2012. Founder & MD, GreenDust.


november 2012 | industry 2.0

- technology management for decision-makers

PTC’s solution saves Welspun’s time


elspun Global Brands, a player in line pipe and home textiles, needed a solution that would enable to reduce time needed to develop new products – and also transform disparate processes and legacy technology platforms to provide the speed and agility required to achieve the desired growth potential. ITC Infotech (PTC’s Strategic Services Partner for the enterprise business market in India) took up the challenge. ITC has recently completed implementation of FlexPLM, a solution for Retail, Footwear and Apparel (RFA) industries, at Welspun. Subrata Pal, Asst. VP, Welspun India says, “In Today’s competitive scenario, time to market and cross functional global collaboration is vital to product development. Implementation of FlexPLM is the key to achieve these strategic product development goals.”

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industry update CG raises production capacity with strategic plant design


rompton Greaves (CG) has inaugurated its high-efficiency, low-voltage rotating machines (LVRM) plant at Goa. Traditionally, processes at motor manufacturing plants operate in insolation on the batch principle to generate bulk output. CG’s new integrated JIT assembly line has a TAKT time of three minutes per motor and a lead time of 130 minutes, which represents a gain of 98 per cent over a batch mode. According to the company, the LVRM facility, designed on the lean principle production output, is the first of its kind in the country, and the first just-in-time (JIT) manufacturing line in CG. The new plant capacity has been set at 10,000 additional units per month. This represents a 66 per cent

capacity increase compared to the current production capacity. In addition, by leveraging best-inclass equipment with advanced technologies, CG is able to introduce flexibility and customisation into its product mix to cater to the varying demands of industries like steel, cement, textile, packaging, machine tools, and other similar applications. This LVRM unit will handle a three-phase production of induction motors in frames 80-132 delivering outputs from 0.37-9.3 kW. Commenting on the quality aspect of the new facility, Anil Raina, EVP and President Industrial Business Unit, says, “CG’s new manufacturing line is a strategic intent aiming at global quality standards and functional requirements and is benchmarked against best

Essar strengthens its operating fleet


ssar Shipping Limited (ESL), a part of the Essar Group, has taken delivery of MV Kishore and MV Ashok. These are the MiniCape bulk carrier vessels built at STX Dalian Shipyard, delivered after MV Ishwari, MV Shravan, MV Kamlesh and MV Arun, which were earlier inducted into the Essar fleet. All these six vessels are now operational in the growing Essar Shipping fleet. MV Kishore and Ashok are 253 metre long, 43 metre wide, and they have a cargo capacity of 105000 dwt. With this latest capacity addition, Essar’s tonnage presently stands at two million tones. With its uniquely designed hull to ensure larger carrying capacity with minimal draft requirements, ESL is confident that these MiniCape vessels will make trade to the Indian coast more economical and cost effective for clients in the power, steel and other core sectors. On induction of these MiniCapes, A. R. Ramakrishnan, Managing Director, ESL, said, “Essar Shipping has taken delivery of the last two MiniCapes from the total of six ordered with STX shipyard under the expansion programme. With the induction of A. R. Ramakrishnan these two vessels, we will now consolidate Managing Director operations to achieve the planned growth in Essar Shipping revenues and scale of our operations.”


november 2012 | industry 2.0

- technology management for decision-makers

quality practices. The unit is geared to produce and market world-class IE2 motors for the global market.” Laurent Demortier, CEO & Managing Director of CG, says, “The motors that will be produced here will meet the most stringent quality standards required to serve the international market. Demand for export of motors has increased substantially. We expect to be at full manufacturing capacity by the end of January 2013. The efficiency level reached is at par with best-in-class companies. The benefits of reduced inventories, less floor space, flexibility in product mix, reduced lead and cycle time, and the capability to execute rush orders will enable CG to deliver superior results for its LV motors product line.”

Atlas Copco serves notice to staff


onsidering the weakening of market for mining and rock excavation equipment; and to adapt production capacity to the current demand, Atlas Copco Rock Drills AB has served a notice about a reduction of 160 employees at its manufacturing facilities in Örebro, Sweden. The notice affects 105 bluecollar employees and 55 white-collar employees. Negotiations with local unions have been initiated. Atlas Copco Rock Drills, which currently has about 1 900 employees, manufactures equipment used in surface and underground mining, civil engineering and infrastructure projects. “These measures are unfortunately necessary, and we will do our best to support our employees in this difficult situation,” says Bob Fassl, Business Area President, Atlas Copco Mining and Rock Excavation Technique.

Bentley, Siemens extend collaboration


strategic collaboration between Bentley Systems and Siemens will enable the two companies to deliver intelligent and sustainable digital factory infrastructure. This work is an extension of earlier collaborations between the two organiAnton S. Huber CEO, Industry Automation sations that resulted in each Division, Siemens deploying technology offerings developed by the other. It will advance the integration of digital product design and manufacturing processes design with information modeling for facilities lifecycle design. Initially, the companies will focus on the digital factory for automotive and discrete manufacturing. In the longer term, the companies will explore opportunities for jointly developed technology to expand industry-centric solutions and further collaboration interoperability between Siemens’ Teamcenter and Bentley’s ProjectWise software. Commenting on further collaboration, Anton S. Huber, Siemens Industry Automation Division CEO, said, “Together we will drive the paradigm shift that will establish unified and fully collaborative product and production lifecycles for

our customers. This will facilitate workflow efficiencies moving our users to the next level of productivity. Today, it is more important than ever to make full use of all optimisation opportunities over the entire lifecycle of a machine or plant. This starts with planning and engineering, and continues into operation and maintenance right through to expansion and modernisation. Now, as we seek to extend this to include facilities lifecycles, we have determined that Bentley Systems is the right partner to help us bring this new value proposition to realisation.” Greg Bentley, CEO, Bentley Systems, said, “We at Bentley have redefined asset performance management to span OPEX and CAPEX and are bringing our information mobility technologies to bear on the unification of the project and asset lifecycles. With Siemens converging product and manufacturing process lifecycles, the digital factory seems the ideal inaugural target application for a combined and expanded unification effort. Working smarter, together, Bentley and Siemens will empower our shared users to speed the delivery and outfitting of manufacturing facilities, accelerate the start of production, reduce design, construction, and operating expenses, and improve the operational and energy performance of their factories.”

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industry update TAKE reduces complexity of B2B integration

Infosys solves challenges of Japanese companies entering India


apanese companies will now be able to jumpstart their business operations in India in a shorter time by moving to a robust IT infrastructure in just eight weeks. A new solution from Infosys, called ‘India in a Box,’ based on industry-standard Microsoft Dynamics NAV, will serve them with a pre-packaged solution – that is tailormade for the unique Indian market, addressing issues – such as local taxation and accounting. Key functionalities of the solution, tailored for specific requirements in India, include: Financial Management, Supply Chain Management, Production Management, Service, Resource & Proj-


AKE Solutions’ recently released OneSCM, a multi-enterprise collaboration suite for managing extended supply chain operations, has enriched functionality for all ERP back-end systems, including customers running Oracle or SAP. This also features daily time and cost saving enhancements within the procure-to-pay cycle as well as the expansion of OneSCM’s ControlPoint Tracking technology to web-based access. OneSCM also offers flexible deployment and integration options to support cloud and on-premise, java and .NET architectures. One of the most notable new features is the expansion of OneSCM’s ControlPoint Tracking technology, which embeds digital tracking into the item label prior to shipment, to webbased access. Unlike other solutions, which are feature-limited and primarily available only via EDI integration, or simple over-the-web-package-label printing options, OneSCM’s now delivers expanded insight and control over inbound shipments that map to a customer’s specific business processes and requirements. Young Kim, Director of Product Management, TAKE Solutions explains, “True business intelligence comes from integration at the detailed level of operations that OneSCM delivers. This accelerated flow of reliable information helps increase decision-making speed and accuracy across the entire supply chain, which translates into daily productivity and cost-savings for our customers. This latest release puts more information and control in the hands of daily decision-makers in vital areas such as planning and inventory traceability, regardless of their technology platform or their business communications integration method.”


november 2012 | industry 2.0

ect Management, Employee Management and Customer Management. V. Sriram, Head of Infosys Japan, says, “With this new solution Infosys has tried to address one of the biggest issues facing Japanese companies entering the Indian market – the sometimes rocky interface between a new location and Tokyo headquarters. With ‘India in a Box,’ firms can easily establish the interface with the Enterprise Resource Planning in the home office. Executives in Tokyo can manage the sales and production of their Indian operations on a daily basis without a hitch. ‘India in a Box’ is all about improving real time decision-making and governance.”

Trelleborg to capitalise on Indian growth


ollowing the strategy to grow in selected, attractive and profitable markets and market segments, recently, Trelleborg, a global industrial group dealing with high-performance solutions that seal, damp and protect in demanding industrial environments, has inaugurated two operations in India, co-located at one facility in Bengaluru. Trelleborg’s facility in Bengaluru The facility will develop and produce industrial antivibration systems and specialty moulded components for various industrial segments. Industrial antivibration systems are used for vibration damping in, for example, rail, off-highway equipment and other industrial segments. Specialty moulded components and moulded polymer materials are found in a range of industrial applications and in such industries as telecommunications, energy and general industry. “We strongly believe in India’s long-term growth opportunities. This investment further strengthens our already strong global platform. As a result of structural changes in India in terms of the continued rise in population, industrial development and demand for such infrastructure as railways, roads, airports and ports, combined with sustainable development, the country comprises a growth Peter Nilsson market for Trelleborg,” says Peter Nilsson, President and President and CEO Trelleborg CEO of the company.

- technology management for decision-makers

techwatch Life of Cutting Tools to Increase


anoMech, an international material science company in nanotechnology innovation, has been selected by the NanoBusiness Commercialisation Association (Nano BCA) for the 2012 Top Emerging Nano Innovators Award for the 2012 Top Emerging Nano Innovators Award. Jim Phillips, NanoMech Chairman and CEO, says, “The breakthrough technologies the NanoMech team has developed, such as nGlide, TuffTek and TriboTuff, have led to this tremendous honour for our family of employees and very supportive investors. NanoMech is focused on innovating by applying breakthrough novel science into ‘musthave’ products bringing immediate and drastic improvement into existing major markets.” The NanoBCA is the industry’s top trade organisation dedicated to promoting the advancement and commercialisation of nanotechnology, while helping companies bring affordable, life-improving nanotech products to the market.

Vincent Caprio, CEO, NanoBusiness Commercialisation Association, says, “NanoMech is a clear leader in converting massive brainpower and applied research to marketready products that will disrupt huge companies overnight in the energy and manufacturing sectors, bringing immediate efficiency and performance improvements to these global industries. They are clearly a company to watch and at the top of our list.” Dr. Ajay P. Malshe, the CTO of NanoMech says, “In 2012 NanoMech commercialised two nano-engineered product platforms never achieved before. TriboTuff is a nano- inspired industrial lubricant, which reduces friction (to near zero) and wear of mechanical parts by orders of magnitude allowing hundreds of per cent enhancement in wear reduction in machines, vehicles and components such as valves, gears and much more. These performance increases also produce incredible energy savings.

In 2012 NanoMech commercialised two nano-engineered product platforms.

Our second nanotechnology platform of products is TuffTek coated cutting tool inserts and wear parts–made of carbides, metals and ceramics. As natural resources such as metals and ceramics are depleting nationally and globally, TuffTek radically transforms surfaces with nano-engineered coating solutions, which increase the life of cutting tools and wear parts by as much as 1000 per cent while enhancing their performance and sustainability.”

PVC Liner Cuts down CT Basin Maintenance Time


fter 15 years of continuous service and regular abuse; the 1/8” thick, flexible PVC liner on the reservoir part of a Wisconsin-based engine manufacturer’s cooling tower, which was supplied by Witt Lining Systems; was reaching the end of its useful service life, creating the need for regular repair. The company was looking for a way to coat the concrete in the old reservoir that was fast as well as economical to keep the tower in operation. The aging concrete structure was built during World War II. Years of exposure to water on the inside and the Wisconsin climate on the outside had caused severe spalling, cracking to the concrete structure, and corrosion on the exposed internal steel piping. Before a new system could be installed, the old liner had to be removed and some concrete repairs made. A geotextile padding placed on the floor and part of the walls was added to protect the new liner from large cracks


november 2012 | industry 2.0

- technology management for decision-makers

and irregularities. The work had to be postponed until a few months due to the demands of production, which further complicated the project with cold and unpredictable weather. The company chose a 60 mil gauge Spectra Blue liner for the 17’ x 19’ x 9’ deep reservoir, which was able to be lined in just 2½ days. Witt Lining System’s ability to prefabricate the liner in one piece – including support columns in one wall - was the key to meeting the very tight schedule. ‘Boots’ for outlets were supplied by Witt and field welded into the liner on site by their factory installer, Stein Industries, to assure perfect fit since there were no accurate dimensions of the pipe locations. The structure was then handed over to the client ahead of schedule. “No other type of lining system could have possibly matched the installation time, service life, and low cost of this flexible PVC liner,” says installer Melvin Stein.

techwatch Ultrasensitive Photon Hunter – A Reality

An ultrasensitive image sensor developed by the Fraunhofer Institute


hether it is the field of medicine or safety engineering for the automotive industry, fast and ultrasensitive optical systems are gaining increasing importance. Frequently, the challenge lies in being able to record high-quality images under extremely low light conditions. Modern photo detectors for image capture typically reach their limits here. They frequently work with light-sensitive electronic components that are based on CMOS (Complementary Metal Oxide Semiconductor) or CCD (Charge-Coupled Device) image sensors. The problem is that neither the latest CMOS nor CCD systems can simultaneously guarantee a swift and highly-sensitive high quality image recording if there is a paucity of photons to read. The Fraunhofer Institute for Microelectronic Circuits and Systems IMS in Duisburg has now advanced the development of CMOS technology and introduced an ultrasensitive image sensor with this technology, based on Single Photon Avalanche Photodiodes (SPAD). Its pixel structure can count individual photons within a few picoseconds, and is therefore a thousand times faster than comparable models. Since each individual photon is taken into consideration camera images are also possible with extremely weak light sources.  To achieve this, the new image sensor uses the ‘internal cascade breakdown effect’ – a photoelectric amplifi cation effect. The number of ‘breakthroughs’ corresponds to the number


november 2012 | industry 2.0

of photons that the pixels hit. In order to count these events, each of the sensor’s pixels comes with very precise digital counters. At the same time, the scientists have applied microlenses to each sensor chip, which focus the incoming beam in each pixel onto the photoactive surface. Another advantage is that processing the digital image signals is already possible directly on the microchip; therefore, additional analogue signal processing is no longer needed. The image sensor allows to have the capability to use even very weak light sources for photography. The new technology installs the camera directly on the semiconductor, and is capable of turning the information from the light

into images at a significantly faster pace, states Dr. Daniel Durini, Group Manager for optical components at the Fraunhofer Institute IMS. IMS engineered the sensor under the European research project MiSPiA (Microelectronic Single-Photon 3D Imaging Arrays for low-light high-speed Safety and Security Applications). In the next stage, the scientists from Duisburg are working on a process to produce sensors that are back-lighted, and in this regard, even more powerful. At the same time, the new technology is already being utilised in tests for transportation. Chip-based mini-cameras protect vehicles from collisions and accidents, or assist in the reliable functioning of safety belts and airbags.

Engineering Designers Get a New Tool


he version 2012 of Virtual Performance Solution (VPS) from ESI Group will enable users to virtually assess and optimise the overall performance of a future product at a very early stage of the design process. According to the solution provider, it cuts product Greener and safer product development will development costs and time-tobe easier with the new tool. market by reducing the number of physical prototypes, and by significantly improving the whole design process efficiency throughout the supply chain. In various industries, manufacturers are striving to develop greener and safer products, using lighter materials and innovative designs, while ensuring leading-edge functional standards, including safety, comfort, NVH (Noise, Vibration and Harshness), acoustics, stiffness and durability. VPS addresses all these key attributes and allows engineers to handle interactions across multiple – and sometimes conflicting – domains efficiently. Leading-edge accuracy is achieved in each domain by accounting fully for nonlinear physics and manufacturing effects.  Tomáš Kubr, CAE Manager ŠKODA Auto comments, “At ŠKODA Auto, we have been using Virtual Performance Solution (VPS) for several years. Thanks to VPS we may be more efficient, using the same core model for crash, safety and linear statics. The One core model approach is already used for bonnet design and allows us to make better decisions about design changes in a reduced time cycle. We can benefit from this approach even more, which will allow us to introduce advanced chaining analysis such as springback after crash loads.”

- technology management for decision-makers

cover story Executives say their companies use multiple organisational approaches to drive innovation and that the success of these efforts depends on integrated strategy and C-level support. These are among the findings from the latest McKinsey survey on innovation, which asked executives about the organisational innovation structures in place at their companies, the strategic and financial objectives these structures have set, and the people and processes involved in achieving innovation outcomes.

o i t a v o n n I g n


Contributors: Marla M. Capozzi, Ari Kellen, Rebecca Somers Illustration by Shigil Narayanan Design by Charu Dwivedi


i k a

november 2012 | industry 2.0

- technology management for decision-makers


early two-thirds of executives report broad innovation portfolios that include more than one type of organisational model, and nearly half say their companies use separate innovation functions that focus on developing new business opportunities, sit at company headquarters, and are less than three years old. While 86 per cent say the structure of their separate functions positively influences outcomes, the results suggest that the most important factors for success are

on Struct

the extent to which innovation is integrated in corporate strategy and to which company leaders support and engage with innovation efforts. These separate functions are most likely to report directly to the CEO and to interact formally with C-level leaders, yet across all types of structural models and rates of success in meeting financial goals, respondents cite the same perennial challenges: namely, competition with short-term priorities and integration of the functions’ strategic objectives with the rest of the business.

The innovation function evolves Overall, the results indicate that companies rely on various organisational approaches to execute

Contributors to the development and analysis of this survey: Marla M. Capozzi Senior Expert McKinsey’s Boston offce Ari Kellen Director McKinsey’s New Jersey office Rebecca Somers Consultant Mc Kinsey’s Washington, DC office

ure sW or k

industry 2.0

- technology management for decision-makers | november 2012


cover story innovation: sixty two per cent of executives report the use of multiple structural models to drive innovation efforts. Within this portfolio, respondents most often cite the use of separate innovation functions, and the largest share (33 per cent) rank the creation of new products and services as their companies’ primary focus over the next one to three years. Their responses about the separate structures reveal some key similarities that characterise today’s innovation function: one that focuses on new business opportunities, is collocated at company headquarters, was established less than three years ago, and reports directly to the CEO. Today’s innovation functions are likely to take responsibility for new ideas through to prototyping



opportunities group

Innovation center

while reporting in-market successes as well; 51 per cent say their functions have successfully launched at least one in-market product, service, or business. Structurally, though, there is no clear consensus among executives (and their companies) on which organisational model is ideal (Exhibit 1). Only four per cent, for example, depend on innovation incubators, which were common in the years of the dot-com boom. The results also indicate that innovation functions’ location, finances and ownership have shifted over time — specifically, between the functions established more than ten years ago and those that are less than three years old. Among executives whose functions are older, 46 per cent say these structures sit at company headquarters, compared with 65 per cent at the companies with younger functions. Younger functions also are likelier to focus on profits (Exhibit 2). Perhaps not surprisingly, because they have had less time to develop and launch new innovations, the younger functions have had fewer market successes: 31 per cent with these functions say Emerging-technologies they have successfully launched business group at least one in-market offering, compared with 83 per cent of those with older functions.


27 Newbusiness development function


Exhibit 1

No uniform view on organizational design


Organizational structures of separate innovation function most dominant in driving outcomes

Respondents who answered “other” or “don’t know” are not shown. Figures Present % of respondents. n = 1,279

Advancedtechnologies institute

4 Incubator

Factors for success An innovation function’s success is not only a matter of maturity, though; while there is ongoing debate on how separate from or aligned with corporate strategy a company’s approach to innovation should be, the results from several questions—and our own experience — affirm that strategy (particularly one that is

The online survey was in the field from May 15 to 25, 2012, and received responses from 2,927 executives representing the full range of regions, industries and company sizes. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP. 18

november 2012 | industry 2.0

- technology management for decision-makers

focused, clearly articulated, and integrated) is key located near talent or target markets have more to successful outcomes. At companies where innomarket success – and meet objectives more effecvation is fully integrated into strategy, executives tively than others, though they are less likely than are six times as likely as those without integrated the functions at or near HQ to engage regularly strategy to say their separate functions meet their with company leaders. financial objectives effectively. More companies with integrated strategies Differences in philosophy and design also share organisational elements across While the results create a clear picture of today’s the portfolio (Exhibit 3) — a practice that our innovation function — its practices, successes, experience suggests is a boon to innovation and challenges — they also reveal some areas programs overall. And 57 per cent of all respondents (the largest share) cite clear strategic Exhibit 2 focus among the factors that are most important to their functions’ success. Yet strategy remains an innovation challenge % of respondents1 for many companies. Only one-third of executives 1 3 5 report that innovation is fully integrated in their 33 organisations’ corporate-level strategies, and nearly 39 36 <3 years ago, 3–10 years ago, >10 years ago, half say integrating the separate functions’ strategic n = 458 n = 178 n = 531 50 objectives with those of their core businesses is one 45 5 56 of their functions’ most significant challenges. 4 5 5 5 6 Apart from integrated strategy, other success Financial objectives factors emerge from the results. Fifty-six per cent of separate Turn a profit of executives identify C-level and leadership supinnovation Break even functions, by port as a driver of success (second only to clear function’s age Cover losses or expenses strategic focus). The results suggest that this supNo financial targets, or function used as a cost center port also links to good outcomes: thirty-six per cent Don’t know whose innovation functions report to the CEO say 1 Figures may not sum to 100%, because of rounding. they meet financial objectives effectively, compared with 27 per cent whose Exhibit 3 functions report to other company leaders. Similar patterns hold % of respondents,1 n = 1,205, by degree of innovation’s integration in corporate strategy for the functions that Organizational elements shared among companies’ innovation structures2 interact frequently with the C-level team, and Fully integrated, n = 296 whose leaders are actively 79 77 Somewhat integrated, n = 423 involved in innovation 72 69 Not at all integrated, n = 75 65 (Exhibit 4). Not surpris62 60 59 56 ingly, the executives whose functions have 46 46 more responsibility for 37 37 33 their value chains say their 24 25 functions are more effec20 tive at meeting objectives, 9 whether or not they are profit focused; the functions responsible for ideas, Strategic Knowledge Research (eg, Leadership Talent Budget proof of concept, launch, priorities and and insights consumer team and/or and scaling report more focus insights,market approach to analysis) governance in-market successes, too. 1 Respondents who answered “other,” “none of the above,” or “don’t know” are not shown. Finally, executives say 2 this question was asked of all respondents whow cited at least 1 organizational structure—including separate innovation geography may also tie functions, a central R&D function, corporate-wide innovation initiatives staffed with rotating talent, mergers and acquisitions, and corporate venture capital groups—that are in place to drive innovation at their companies. to success. The functions

Younger functions more focused on profit

Integrated strategy breaks down silos

industry 2.0

- technology management for decision-makers | november 2012


cover story Exhibit 5 of divergence and reflect a larger philosophical tension in innovation. With respect to % of respondents,1 by type of organizational structure financial objectives, equal shares Scope of responsibilities across value chain, by organizational structure of executives say their functions of separate innovation function exist to turn a profit or have no Idea generation, Idea generation, proof I dea Idea generation through financial targets at all. According proof of concept, of concept, market generation proof of concept and/or market launch launch, scaling prototype to respondents, companies are split on measuring individual Advanced-technologies institute, 7 68 6 19 innovation performance: thirty n = 111 per cent say their functions use Emerging-business-opportunities 9 28 28 32 group, n = 226 the same performance metrics Emerging-technologies business 6 42 20 31 as the rest of the organisation, group, n = 139 while 32 per cent report the use 54 18 22 6 Incubator, n = 59 of innovation-specific metrics and another 23 per cent fall Innovation center, n = 333 6 52 24 17 somewhere in the middle. The New-business development number of full-time employees 8 34 33 24 function, n = 299 also varies, with 35 per cent 1 of executives reporting ten Respondents who answered “don’t know” are not shown; figures may not sum to 100%, because of rounding. or fewer full-time equivalents working in their functions; 30 per cent say at least 51 full-time-equivalent centres, and advanced-technologies institutes employees work on innovation. tend to be used as cost centres or not set financial Responses also diverge on the separate targets, while new-business development functions, function’s financial objectives, which can be emerging-business-opportunities groups, and specific to its structure: incubators, innovation emerging-technologies groups are guided by profit. This is consistent with the finding that the functions without financial targets, such as Exhibit 4 innovation centres, have less responsibility across the innovation value chain; a majority focus on idea generation through proof of concept or prototype (Exhibit 5). By contrast, those with profit targets % of respondents whose functions meet desired financial objectives extremely or are likelier to carry their innovations through very effectively Frequency of interaction market launch and scaling. between separate But regardless of the organisational structure innovation functions and — and the fact that 86 per cent of executives say C-level leadership (eg, Level of company senior management, leaders’involvement with structure has a positive influence on their funcexecutive committee) separate innovation functions tions’ outcomes — these functions face the same challenges. Respondents most often cite competition with the business’ short-term priorities and 40 integrating strategic objectives with those of the 38 35 core business as the most significant challenges 22 26 their functions face, regardless of their structure, 17 strategic focus, or ability to meet financial objec14 tives (Exhibit 6). These are cross-cutting and perennial challenges for both the innovation function and the organisation as a whole.

Structure linked to responsibilities

Effective outcomes with leadership support

Rarely Somewhat Extremely or not frequently or very frequently at all


november 2012 | industry 2.0

Actively involved in innovation process, from idea generation to commercialization

Evaluate and provide feedback on major innovation decisions about strategic priorities and investments

Serve on an innovation council or committee

- technology management for decision-makers

Not at all involved with innovation functions

Looking ahead While an overwhelming majority say their separate functions’ organisational structures have a positive influence on outcomes, these functions face the same challenges regardless of structure. This finding reaffirms the classic need

for strategy (a key factor for success) to precede structure when companies decide to create new innovation functions. Companies should also focus on other enablers, such as C-level support, which the results indicate can drive success — and take care to tailor the function to existing company objectives and culture. Companies cannot rely on a single innovation function alone to create successful outcomes; it must be integrated with the entire organisation. Before sourcing the appropriate talent to ensure a steady stream of innovation successes, companies must first establish a clear strategic focus and garner buy-in from the top-management team. Executives cite strategic focus and C-level support most often as the key factors to innovation success, which align with our own experience and provide a good road map for companies looking to expand their own innovation programmes. Whether or not the separate innovation function’s outcomes are linked to financial targets is neither a reliable measure nor a guarantee of success. Rather, our experience suggests that a better measure of performance is the function’s success at playing its respective role in the

Exhibit 6

Difficulties in aligning innovation

2 13

% of respondents,1 n = 1,205

19 29

Separate innovation functions’ most significant challenges in meeting strategic objectives  ompetition with short-term priorities from C other parts of the business Integrating function’s strategic objectives with those of the core business


 efining function’s business case or value D proposition to company leaders Separation from the rest of the company Inability to efficiently divert funding away from an idea that has become unpromising


No challenges 1

Respondents who answered “other” and “don’t know” are not shown.

innovation value chain, whether it is responsible for idea generation alone or for seeing each idea through to its launch and scaling. This article was originally published in McKinsey Quarterly, www. Copyright (c) 2012 McKinsey & Company. All rights reserved. Reprinted by permission.

market scenario

Next The

Big Potential Adoption of â&#x20AC;&#x2DC;disposable technologyâ&#x20AC;&#x2122; at improved economies of scale to optimise production efficiency and cost-effectiveness, coupled with low cost of manufacturing, will boost downstream biopharma processing in Asia. Already, in India cost of drug manufacturing is very low.


november 2012 | industry 2.0

- technology management for decision-makers

Single-use filters are used for reducing the bioburden and removing particles, and sterilisinggrade filters are used to do sterile filtration.

Credit: Sartorius AG


lobal Contract Manufacturing Organisations (CMOs) are set to steadily become more and more popular, as western pharmaceutical companies outsource production to Asian countries in a bid to cut costs, forecasts a new report by healthcare experts from GBI Research. Their report cites that the overall cost of drug manufacturing is up to 50 per cent cheaper in India than in western countries, which is pushing big-pharma abroad. Major CMOs offer upstream and downstream manufacturing functions equally; and in addition to manufacturing in biopharmaceutical production, they also offer clinical trials, logistics, packaging, and even marketing. According to the industry experts, manufacturing functions dominate almost 60 per cent of the CMO market, with downstream processes accounting for 50 per cent of the manufacturing process. GBI Research also suggests that the CMO market size for downstream processing is set to grow at a CAGR of 15.1 per cent, which is higher than the growth of the overall CMO biopharmaceutical market, due to the approval of biosimilars in the downstream industry, which is expected to drastically increase future demand for equipment and reagents. In spite of high drug prices, biopharmaceutical firms are not currently able to fulfil high market

demand, and once these prices come down, demand will grow at a much faster rate. The increased use of disposables in biopharmaceutical manufacturing is also boosting the downstream market, as reductions in capital and cleaning costs for pharmaceutical companies turn profits for CMOs. CMOs are working to integrate service portfolios in order to offer complete solutions to pharmaceutical manufacturers. While the concept of providing total biopharmaceutical solutions has historically been present only within the US and certain European countries, nations such as India, Korea and China have started to adopt the same business model over the past few years, and have attracted big business as a result, thanks to vast differences in production and labour costs in developed and developing countries. These forged relationships allow both CMOs and pharmaceutical manufacturers to pursue large-scale business opportunities using each otherâ&#x20AC;&#x2122;s facilities. The research suggests that the global CMO market is set to grow steadily, due to increasing levels of pharmaceutical outsourcing and generic manufacturing. The global CMO market grew at around 10.8 per cent, from $21.2 (in 2008) to $28.8 billion (in 2011), and is forecast to reach an approximate value of $59.9 billion by 2018 following growth at a CAGR of 11 per cent.

industry 2.0

Preparation of media and buffers for cell cultivation in the biopharmaceutical industry using single-use technology. In several biomanufacturing of monoclonal antibodies, vaccines and therapeutic proteins, filtration is an essential step in the process chain.

- technology management for decision-makers | november 2012


market scenario


Rebound Expected


november 2012 | industry 2.0

round of quantitative easing could create new inflationary pressures. The relative strength of the rapid growth markets remains striking particularly when compared to their developed counterparts. Overall, RGM economies are likely to expand by 4.6 per cent this year and to 5.6 per cent in 2013. RGMF indicates that growth rates will accelerate over the next two years — as long as the Eurozone economy stabilises, the US recovery gathers pace and the RGMs continue to gradually loosen monetary policy.

- technology management for decision-makers

Regional variations in terms of economic expansion are evident across the RGMs but the majority, including all of the BRICs, will experience subdued growth this year. The East Asian economies will be impacted by the slowdown in Chinese growth, and Central and Eastern Europe will be hit hard by the ongoing Eurozone crisis. However, robust growth is expected to resume across most countries in 2013.



espite the forecast of 25 leading rapidgrowth countries being revised down for this year and next, RGMs growth looks set for a quick rebound in 2013. This will be spurred both by infrastructure spending programmes, particularly in Asia, and rising demand from their own consumers, which will help offset the weak external environment. The majority of RGM economies will also have the scope to loosen policy should they need a further boost. However, downside risks to the forecast remain as rising commodity prices and the US Federal Reserve’s new

Global economy has deteriorated since the beginning of 2012, influencing the outlook of Rapid Growth Markets (RGMs) exports and their ability to attract FDI. However, this will be a temporary phenomenon, indicates Ernst & Young’s quarterly Rapid-Growth Markets Forecast.

Alexis Karklins-Marchay, CoLeader of the Emerging Markets Center at Ernst & Young comments, “The long-term relative attractiveness of rapid-growth markets for business is undiminished. Their growth has slowed a little more than expected this year but a quick recovery is anticipated. As global rebalancing continues, business must adapt nimbly to evolving and emerging opportunities.” Carl Astorri, Senior Economic Adviser to Ernst & Young’s Rapid Growth Markets Forecast explains, “Strong growth is expected next year however, to stop what has been a fairly mild cyclical slowdown from becoming something worse, the RGMs — with a few exceptions — have scope to ease fiscal policy. However, their scope to ease monetary policy may be limited in coming months by higher food prices. Although this is not currently a major concern, marked further rises would be a risk to RGM growth outlook in the short-term.”

Medium-term growth Exports are being displaced by domestic demand as the engine of growth in many of the RGMs. As concerns about overheating recede, governments in some rapid-growth markets are taking steps to rekindle expansion. Alongside more relaxed monetary and fiscal policies, large infrastructure investment programmes are looming in China, India, Brazil, Indonesia and Colombia. In some countries, these programmes may help increase trade, and make it easier to find new markets for

exports to replace slack demand in developed economies. Spending on roads and railways, ports and airports, can facilitate trade and reduce the costs of doing business for companies in both domestic and overseas markets. Alexis comments, “Increased spending in infrastructure in rapid-growth markets is a welcome development. However, so that this is beneficial for the long-term it is necessary that, as well as government spending on infrastructure, authorities encourage private investment too by making credit available at cheaper rates.”

is likely to grow especially quickly, such as pharmaceuticals.

Commodity prices and currency rises While growth is expected to reaccelerate from 2013 onwards, a continued surge in commodity prices could weigh on growth in many RGMs. Droughts and monsoons have already impacted crops across the globe. Rising food commodity prices can be a particular concern in RGMs and has multiple consequences for businesses operating in these markets. Rising food prices rapidly push through

Majority of RGM economies have scope to loosen policy to boost growth. Rising commodity prices and US QE3 could create new inflation pressures. An increasing focus on meeting fast-growing domestic demand is also expected to sharpen the appetite of emerging multinationals from rapid-growth markets to acquire technology through mergers and acquisitions. The forecast assumes acceleration in M&A activity in Europe by cash-rich national and regional champions, from Asia and elsewhere, keen to acquire knowledge and technologies that will improve their ability to compete with western rivals. This trend has already been seen in sectors including steel, computing, automotive and cleantech. RGMF expects it to extend to sectors where domestic demand in rapid-growth markets

into inflation, creating upward pressure on food prices and demands for higher wages. Inflation pressures could also potentially come from the US Federal Reserve’s new round of Quantitative Easing (QE), which would curtail the scope that RGMs have to use further rate cuts to boost their economies. In addition, QE may strengthen the currencies of the RGMs against the US dollar, dampening their export growth. As yet neither the commodity price moves nor the currency moves are a major concern, but further sharp increases would be a risk to rapid growth market outlook. Rising stars: Low growth in developed economies offers

industry 2.0

- technology management for decision-makers | november 2012


market scenario business a timely opportunity to develop strategies for rapidgrowth markets with exceptional potential. The forecast highlights that Indonesia, Turkey and Vietnam all fit the criteria alongside India and China. All five countries are expected to grow by at least five per cent p.a. over the next 25 years. All have large domestic markets, favourable demographic trends and rising household incomes. And all are expected to contribute a much greater share of global GDP over the next 25 years. Looking ahead: The 25 leading rapid-growth countries covered in the report are not only economically significant now, but will be the growth engine for the global economy going forward. Last year, almost two-thirds of the world’s population lived in one of the 25 RGMs, but only a third of world GDP in nominal terms was


november 2012 | industry 2.0

Overall, RGM economies are likely to expand by 4.6 per cent this year and to 5.6 per cent in 2013. RGMF indicates that growth rates will accelerate over the next two years. produced by these economies. Fast forward 25 years to 2036 and the RGMs will enjoy a bigger share of global GDP than of

- technology management for decision-makers

population. They will have large, young, well-educated populations with fast-rising spending power – nine RGM countries will see their per capita income increase by a multiple of at least five over the next 25 years. The forecast for GDP over the next 25 years also illustrates the RGMs’ phenomenal growth prospects. Nine of the RGMs are expected to grow by at least five per cent p.a. for the next 25 years, in contrast to Japan and Germany, which will both grow by less than 1.5 per cent p.a. According to the forecast in 25 years time, the BRICs – Brazil, Russia, India and China – will be among the six largest economies in the world. Indonesia will be one of the top 10 and South Africa and Nigeria will have joined the top 20. Turkey, Mexico, South Korea and Saudi Arabia will also have significantly moved up the rankings.

special feature

Securing Power Reliability

Challenge: The company in its Hyderabad plant for their Rotomec Rotopak 3000- 3R EL Rotogravure printing process line required power back up systems. Rotogravure Printing Process is a printing process that involves a process of engraving the image onto an image carrier. The director of the facility wanted assurance of power availability and system reliability. In case of power cut, rotogravure printing process stops and the paper in the roll gets wasted on an average rate of 15

“Delta Ultron DPS Series UPS is a doubleconversion, IGBT rectifier 3 phase UPS incorporated with state of art TLI (triple level inverter) topology. In possession of such advanced technology, the Ultron DPS is a new benchmark of data center back up power solution featuring high efficiency up to 96%.” Suhas Joshi, Director, Delta Power Solutions kg’s and in the process of resetting the machine, it results in a down time of 30 minutes of man hours wastage. As a whole, the implementation of reliable and efficient power backup solution was the need of the hour which can help the customer in avoiding the material and man hour’s wastage by meeting the target production output.

Solution: Delta not only provides UPS for production continuity but also help find out the power quality problem. Delta conducted a load analysis for the total process to measure the electrical trends in running load condition. In the load study it was noticed that due to the heavy blower & exhaust motors, high inrush currents was being generated. The Rotomec 9 colour printing process is critical application and demands clean power for its proper operation since it contains sensitive PLC circuits. To fulfill customer need of UPS as a back-up power and ensure smooth operation, Delta proposed Ultron DPS series to the project and in the meantime, provided suggestion on operation UPS to avoid the inrush currents problem as a total solutions to the customer.  The UPS is currently loaded to 60 % and parameter like UPS input PF is >0.99 & iTHD is <3% (Current Harmonic Distortion), thus ensuring the line level

demand in limits with the existing electrical setup.Many strong players from power industry pitched for the case. However, Delta’s good reputation and excellent product quality helped win the case. Ultron DPS Series UPS has high energy efficiency which helps to reduce operating cost thereby reducing total cost of ownership. In addition, Ultron DPS Series UPS is designed with patented power factor correction (PFC) topology rendering high input power factor (>0.99) and low iTHD (< 3%), a perfect fit to Energy-Star certified equipment in contemporary data center and other applications.

Result: Delta Ultron DPS 200kVA is working successfully at PPL, Hyderabad site. “We are very satisfied with the product quality and the service support rendered to us by Delta has been excellent” says Mr. JSR Ramana, Sr.Manager Engineering & Projects, The Paper Products Ltd. Without additional hardware, Ultron DPS Series UPS also offers a flexible and convenient way to expand the total output power to fulfill business growth. Delta association with PPL will help to add to the credentials and work as a reference for printing applications. Delta is known for providing the power behind the most competitive industries. [Advertorial]


he Paper Products Limited (PPL), (now “branded” as HUHTAMAKI-PPL), is one of the India’s leading manufacturers of primary consumer packaging solutions. PPL headquartered in Finland, is a one of the top 10 consumer packaging companies in the world. PPL, a market leader in several product categories, has a turnover of Euro 2.1 billion with operations across the globe. The major client list includes Levers, Nestle, Cadbury, Britannia, Glaxo Smithkline, Coca Cola, Perfetti, Dabur, Marico, P&G etc.

The power behind competitiveness

industry 2.0

- technology management for decision-makers | november 2012


materials & processes HR coils and sheets from Tata Steel’s Jamshedpur plant

Addressing Challenges of Indian SMEs Q. What kind of internal preparation has been done in Tata Steel to supply ready-to-use quality HR products? A. Looking at the mar-

Tata Steel has unveiled ‘Tata Astrum’, a new brand of its Hot Rolled (HR) products range. These coils and sheets will be produced from its two mills at Jamshedpur. Thus, it has made a foray into branding of HR products in the SME segment. T. V. Narendran, Vice President, Safety and Flat Products of the company, talks on the initiative to P. K. Chatterjee. Excerpts…

ket’s requirement of hot rolled steel with improved tolerances, wider widths and lower thicknesses, Tata Steel commissioned a new mill on 14th February this year, which has a capacity of 2.4 MTPA. The new mill, ‘LD#3 & TSCR’ includes a steel making shop and a Thin Slab Caster & Rolling mill (TSCR). In order to serve the customers with ready-to-use products, we have appointed 42 distributors across the country for Tata Astrum. All the distributors have tie-ups with service centre(s) or External Processing Agents (EPAs), which can process the HR coils and cut them to requisite lengths or widths or slit them. All the service centres and EPAs adhere to the quality standards laid down by Tata Steel and are regularly audited.

Q. Which industries will benefit most from the step? A. Tata Astrum’s product and service offerings have been designed keeping in view the SME (Small & Medium Enterprise) segment of the market. Our market study and primary research suggested that the SME segment in India is highly underserved as far as their requirements of steel and allied services are concerned. Industries, which shall be served with these include automotive, lifting & excavation, projects & fabrication, agricultural equipment etc.

Q. What will be the added advantages for the users? A. Tata Astrum’s unique offerings include many advantages.

T. V. Narendran VP-Safety and Flat Products Tata Steel

Some are: availability of a wide range of grades to ensure right grade for right application; doorstep delivery of ready to use material (cut-to-length, slit, pickled, skin passed) with appropriate packaging through a panIndia network of distributors and service centres; product marking to ensure source authenticity; product application engineer support to improve process and yields; customer engagement and knowledge sharing sessions shall provide a forum to discuss the pain areas of any industry and share learning from other industries that can be horizontally deployed; and also test certificates with mechanical properties mentioned shall save the customers’ time and energy.

industry 2.0

- technology management for decision-makers | november 2012


sector update Rapid growth in the manufacturing sector in India, essentially demands uninterrupted and high quality power supply. Also, the massive power generation capacity addition plan needs cost control and efficiency. Thus, deployment of integrated automation and control solutions will be the key to drive excellence in the Indian power sector.


ndia accounts for nearly four per cent of global power generation capacity, and is the fifth largest in the world in terms of overall installed capacity. Major advancements in power generation have resulted in a CAGR growth of 5.6 per cent in the last five years (2007-12) â&#x20AC;&#x201C; whereas the demand for electricity is pegged to grow at a CAGR of seven per cent over the next decade. Clearly, the current generation levels do not match with the demand growth in the coming years. The objectives of the power sector in the coming years are to provide sufficient power to achieve eight per cent GDP growth, and provide reliable and quality power to all. The target for capacity addition in the Eleventh Five-Year-Plan was at 78,577 MW, which was revised to 62,374 MW by the Planning Commission during the mid-term appraisal. In the Twelfth Five-Year-Plan, the government is striving to achieve a capacity addition of over 100,000 MW, and compensate for the slip in capacity addition in the last five-year-plan. The major focus would be on developing clean coal technologies, and promote nuclear and renewable sources of energy generation. Excess of 80 GW of power generation is estimated to be added in 2011-15. While the demand is significant, there is an increasing need to reduce overall cost, and implementation as well as increase in operational excellence through real time control and management.


Efficiency in Indian Power Sector

Upcoming challenges


The power sector in India faces major challenges with respect to fuel shortages, transmission and distribution (T&D) losses, new additions in generation capacities, regulatory, and legal compliances. Fuel shortages have hit the thermal, and gas based generation plants. The thermal plants are facing shortage of coal supplies and have resulted in decrease as indicated by the plant load factor. Another factor, which hits the power sector badly is the lack of extensive T&D infrastructure and the heavy losses associated with the current infrastructure. The T&D losses in India are over 30 per cent, a significant deviation from the global benchmarks. One way to improve plant productivity and also reduce the T&D losses is by using advanced automation and control solutions. PowerMinâ&#x20AC;&#x2122;s plans to establish an Integrated National Power Grid to stem the T&D losses and enhance inter grid and regional connectivity, is also expected to result in an increased investment on automation and control systems. While the opportunity for automation solution providers is exciting, there is a need for more intelligent automation systems that can cope with vast data repositories and multiple generation profiles â&#x201A;&#x2039; also needed fast and reliable communication flow. As all automation companies are poised to leverage this potential, solution providers delivering open standards and seamless integration for real time data access and better analytics are expected to gain.

Shift in paradigm The complexity associated with power generation and objective of increasing efficiency makes a case for implementing

key automation solutions that include Distributed Control Systems (DCSs), Programmable Logic Controllers (PLCs), SCADA (Supervisory Control and Data Acquisition) systems, HMI (Human Machine Interface). PLCs are used in field applications such as in coal mills or other island units. SCADA systems are used in monitoring and control, fault diagnostics, performance analysis and adherence to grid guidelines. DCSs are used in plant monitoring and control of generating assets. Automation systems bring the agility and flexibility to the power sector, aiding them in real time decision making and performance management. The automation and control solutions market, including DCS, SCADA, HMI and PLC, estimated to be about $680 Million in 2011, is expected to grow at an average growth of 14 per cent over the next five years. Thereâ&#x20AC;&#x2122;s a growing trend towards managing and controlling assets through integrated control infrastructure, which is in contrast to the earlier rigid hierarchical and disintegrated approach to plant control. The predictive approach of measuring and controlling through monitoring diagnostics and analytics when compared to the traditional reactive approach used in legacy power plants is enabled through integrated automation and control. Developments in measurement technologies, enhanced and open communication protocols and wireless technology are expected to bring enhanced operational excellence in plants. Wireless technology helps in reduced maintenance, and cost savings due to zero cabling and maintenance needed. Advances in software solutions are also expected to help the power com-

panies migrate to neural networks, artificial intelligence and enhance efficiency of the assets.

Automation and control India is power hungry and there is still a significant demand supply gap that increases scope for further investments in capacity additions and power generation.

Heavy losses with the current T&D infrastructure is a matter of concern. The govt., and the private sector are both looking at establishing new state-of-the-art plants, which will eventually increase usage of automation and control systems. The twelfth five-year-plan is considering targeting a capacity addition of nearly 100,000 MW for conventional sources of power generation and a target for 17,000 MW for the renewable segment. The government of India plans to provide electricity to all by 2012, though not expected to be achieved, will require about 60,000 kms of transmission lines. Increased transmission network, development of smart grids and the need for a reliable and efficient transmission network will continue to boost demand for measurement and control systems. In the face of existing obsolete systems and new investments in power infrastructure, integrated automation and control systems will improve operational efficiency of Indian power sector at par with global standards. Industrial Automation and Process Control Practice, Frost & Sullivan, South Asia & Middle East. Contact:

industry 2.0

- technology management for decision-makers | november 2012



Driving Enhanced Manufacturing A collaborative approach between the government and industry


november 2012 | industry 2.0

- technology management for decision-makers

Dürr is making the paint shop for the Chinese automobile manufacturer, Chery Automobile Co., at its facility in Wuhu. After completion, Chery will paint up to 1.1 million vehicles annually.


obots continue to fascinate mankind, with the ability to execute varied tasks, often beyond human capability, with ease and precision. The gradual advancements in the field of robotics promise immense potential for application in existing fields, as well as in hitherto unexplored fields. Despite the current global scenario witnessing far from the ubiquitous usage than previously envisaged, the application of robots in certain industries have become an established norm. India’s next wave of industrialisation and its emergence as an engineering hub necessitates increased adoption of automation and robotics. Robots are expected to enhance their presence in the services sector too. Although current demand and adoption trend may not be reflective of the full potential, the situation could change if there were to be concerted efforts from manufacturers, with support from the govt., towards developing localised products and technologies.

India’s growth story The global economy is expected to depend significantly on India and its projected rise as an industrial or consumer hub over the next decade. Expectations of producing in excess of 50 million vehicles, generating in excess of 300 GW power, producing 250 MT of steel, and augmenting domestic hydrocarbon production capability, to name a few, are some of the facts highlighting India’s growth story over the next decade. In India’s march towards cementing its influence in Credit: Dürr India

Competitiveness is required for increased penetration. By Arunkumar Janarthanan

industry 2.0

- technology management for decision-makers | november 2012


opinion shaping global economy, the manufacturing sector will have to contribute significantly. The key areas of focus for the manufacturing sector are enhancing quality standards and increasing efficiency. Automation and robotics are expected to play a key role in achieving all the above mentioned goals. While examining measures to enhance the adoption of automation, it is imperative to understand the potential restraints, namely, increasing working population and rising unemployment. The associated socio-economic pressure has always favoured manual and semi-automated processes resulting in efficiency or operational cost-related concerns, while hindering adoption of sophisticated solutions. In the current scenario, with significant focus on improving operating efficiency and agility, manufacturers have realised the benefits of utilising robots in several applications.

quality control and welding. In India, the robotics growth story continues to be dominated by the automotive sector with the increasing vehicle demand and the need for manufacturing agility in this dynamic consumer-driven market. Globally, the robotics industry has witnessed significant adoption in the electronics sector, but the penetration in the Indian electronics sector has been limited. The recent electronics manufacturing policy of the Indian Govt., is expected to drive indigenous electronics manufacturing and, in turn, drive robotics adoption. The other key area of significant opportunity in India is the healthcare sector. While the traditional industrial sectors are expected to drive the robotics markets, the service sectors such as education, entertainment, domestic or personal help, assistance for physically challenged, logistics, asset management services and

to improve efficiency, Automation and robotics will play a key role. Impact on process efficiency The drive to reduce cost while sustaining quality and efficiency translates into the need for increasing output for given input as well as reducing the input for the expected output. Primarily, reducing input for a given output requires an approach focused on enhanced efficiency, better equipment control and maintenance. Attempts are also being made replace obsolete technology with more efficient automation and robotics systems. In a scenario where competition for scarce market potential at a consumer driven price continues, manufacturers are increasingly focused on optimising the process. The advancement in robotic technology in conjunction with the advanced control and automation mechanism can dramatically improve yield and process efficiency. The intent of the Indian manufacturing community in accepting robots as a critical requirement for enhanced performance has encouraged several global robotics manufacturers to establish their presence in India. The author is

Industry Manager, IPC Practice, Frost & Sullivan, South Asia & Middle East.


Beyond automotive and electronics The automotive and electronics sectors have traditionally been the largest consumers of robots. Some key applications of robots include pick and place, packaging, palletizing, machining, assembly,

november 2012 | industry 2.0

- technology management for decision-makers

special purpose robots for underwater or oil field services can be potential segments for boosting the growth of the robotics industry in India.

Current supply scenario Several multinational robotic manufacturers such as ABB, Fanuc and KUKA Robotics, among others, are already present in India in various capacities. There are Indian institutions, as well as government entities, involved in robotics manufacturing. Now, the value chain of the robotics industry in India has a very limited local contribution - mostly restricted to engineering or assembly, while the rest of the value addition is through imports. The key requirements for enhancing further penetration are increased localisation and focused and integrated R&D activities - as in the developed economies â&#x20AC;&#x201C; where the technology is at an advanced level comprising critical components of robots. Robotics manufacturers should, therefore, focus on research-integrated robotics manufacturing and develop programs that will effectively disseminate the cost benefit and lifecycle advantage associated with robotics adoption. While the opportunities are plenty there is a need for clear policy directions from the government favouring an efficient ecosystem to support growth as well as drive localised product development.

management & strategy

Maintaining Success Rate Consistently Fagor Arrasate specialises in design, manufacture and supply of forming machine tools – from presses and complete stamping systems to lines for manufacturing, processing and cutting sheet metal. With six plants globally, it has a wide market presence. In a tête-à-tête, Javier Torres, Asia Director of the company, exposes P. K. Chatterjee to the recent outcomes of innovative practices in Fagor. Excerpts… Q. What kind of innovative work is going on in Fagor globally? A. Fagor spends a good chunk of its

the design. Regarding Kinematics, even before actual manufacturing starts, we can simulate the design and check the movements from interference and desired output point of views. As a result, the design that comes out is close to what is manufacturable. As far as focus on quality is concerned, I would like to mention that we export about 98 per cent of our products throughout the globe, and this statistics is consistent over years together. In order to be able to do so and achieve this success rate consistently, ‘quality’ has to be ingrained in every aspect of our functioning. It starts from understanding customer requirement, selecting suitable technology, right material, correct processes, timely delivery etc., and in every step we follow the international and internal standards established in this regard.

turnover on Research & Development (R&D) dedicated to the areas of sheet metal forming. We also have a research centre (KONIKER), which works full time on sheet metal forming technologies. Recently, we introduced ‘Waveline’ concept for Tandem Press Lines. In contrast to conventional Tandem Press Lines, which work in ‘start and stop’ mode, the new technology supports continuous operaQ. Can you explain to me tion of press lines, thus resulting into with a notable example higher productivity for large skin — how has your in-house Javier Torres panels while at the same time coninnovation recently solved a Asia Director, Fagor Arrasate suming up to 30 per cent less power. major technical challenge? Apart from being environment-friendly, this A. As far as adaptation of product for a particular technology also offers the flexibility – typical of a environment is concerned, like for India, which robotic automation as compared to inflexible cross has higher temperatures, different humidity levels bar type automation. and more suspended dust particles, the systems – especially electronic and electrical systems – Q. How are you bridging the gap between are suitably tropicalised to withstand the local design and actual manufacturing process? conditions. Its tangible benefits are higher A. As far as mechanical design is concerned, uptime, more productivity, and hence implied we use Finite Element Analysis to optimise customer satisfaction.


november 2012 | industry 2.0

- technology management for decision-makers

management & strategy ‘Big data’ is a powerful opportunity for the COOs to identify emerging trends

40% of COOs aspire to be promoted to CEO in next 5 years

49% of COOs thrive on today’s constant change and challenges

Many COOs in developed markets focus on eking out greater operational efficiencies to defend their market position


he ability of a successful COO to extract structural clarity within today’s complex and fast-changing environment can be a clear benefit for any organisation looking to innovate and grow. However, combining the operational focus with a strategic perspective is not easy and 49% of the COOs’ C-suite peers strongly agree that it is one of the most difficult roles in the management team, requiring strong leadership to catalyse and implement the strategic agenda. On the role of today’s COO, Adrian Edwards, Ernst & Young Global Supply Chain & Operations Leader, comments, “Operations are increasingly of strategic importance addressing both the

Chief Operating Officers (COOs) who can combine deep operational knowledge with broad strategic insight are ideally placed to innovate and create future growth for organisations.

Success Achieving


november 2012 | industry 2.0

- technology management for decision-makers

revenue and the cost challenges that organisations face. If you think of the critical role that the COO now plays in new channels to market, and in enabling revenue growth, then it becomes clear why the role is now so fundamental to the success of a business.” Growing scope of COO role increases the complexity:

provides a powerful opportunity to identify emerging trends and combine datasets to create new insights into the business, with 46% of COOs reporting that understanding analytical and predictive models as very important in their role. A focus on analytics is also increasing the transition, within the COO role, far from a purely operational focus to one that also encompasses a forward looking, strategic perspective. 75% of their C-suite peers feel that the ability to partake in strategic discussions is a vital skill for the job, along with other abilities. Leadership skills are vital, but confidence is lacking: In order to deliver key elements of an organisation’s strategy successfully, like business transformation, clear leadership is must. 87% of COOs report that highly developed leadership qualities and interpersonal skills are the most crucial attributes; yet many COOs (57%) recognise a need for improvement. This lack of leadership confidence and profile is reflected in the perceived value of the COO amongst the C-suite. Edwards says, “When asked whether a company would perform worse if it had no COO, only 51% of C-suite executives were very certain. Therefore, COOs have more to do in order to prove their value to the rest of the organisation and for those who aspire to the CEO position, it is essential to make their input more visible to both internal and external stakeholders.” 


COOs now are facing an ever increasing volume of data to analyse and respond to. Big data helps in combining datasets to create new insights. With 1 in 3 respondents indicating the most striking changes to the role over the past five years being increased complexity and a wider set of tasks, it is encouraging that 60% report this is fundamentally what makes being a COO worthwhile. Indeed, 49% of respondents strongly agree that they thrive on the constant change and challenges. Beyond the traditional operational demands being placed on the COO, many have become the ‘go-to’ person for handling any larger business transformation initiatives; harnessing the focus and capabilities of the COO to manage the pace of change, which continues to accelerate within the business environment. New technology has played a significant part in this acceleration, with COOs now facing an ever increasing volume of data to analyse and respond to. While ‘big data’ presents operational challenges, it also

RGMs are shaping tomorrow’s leaders: When looking ahead, just 40% of COOs polled aspire to be promoted to CEO within the next five years, however, among rapid-growth markets respondents the proportion increases considerably to 54%. With many COOs in developed markets focused on eking out greater operational efficiencies to defend their company’s market position, rapid-growth market COOs have a more enviable priority list, including the need to build capacity, scale up production and ensure that the right resources are in place to capture growth opportunities. This agenda demands a highly entrepreneurial and strategic mindset, along with the ability to introduce efficiency and process optimisation so that growth can be sustainable. The rapid-growth COO recognises that growth needs to take place in the context of greater efficiency; and this dual focus on top-line growth and bottom-line performance requires a broader palette of skills, makes them highly attractive candidates for other leadership roles in the future. Conclusion: When looking at the evolving role of the COO going forward, Edwards concludes, “The days when COOs could focus their attention on the nuts and bolts of operations are fading. Today, mastery of operational issues is given, and COOs have a clear opportunity to help define the strategy that underpins a CEO’s vision and then take the lead in implementing it. Perhaps more than any other executive, COOs have the power to change the organisation. As firms look to an uncertain future, this is a skill that will remain in high demand.”

industry 2.0

- technology management for decision-makers | november 2012


information technology

Managing Data Storage

Elecon Engineering was seeking to upgrade its storage infrastructure, Hitachi Adaptable Modular Storage 2100 solved their challenges.


lecon has made its presence felt in core sectors – such as fertilizer, cement, coal and power generation, chemical, steel plant and port mechanisation across the country. Going forward, it seeks to enter new segments – and to plan for technology acquisition to accelerate its pace of growth. Some of the segments the company is exploring include opportunities in defence, wind energy and plastics.

Elecon’s need for storage The materials-handling equipment and industrial gear manufacturing company’s existing storage solution was based on an older FC-AL based technology with 4Gb/sec at the front end – and with SAN Fabric operating on 2Gb/sec technology. The IT team of the company had felt it was important that the new system had dedicated capacity for the company’s current set of applications and data – as well as room for any new applications that were likely to be deployed. However,


november 2012 | industry 2.0

- technology management for decision-makers

the team was concerned about the spike in operating costs that such an upgrade might bring. It was interested in implementing eco-friendly data centre solutions designed to minimise power, cooling and facilities costs. In addition, it wanted to futureproof its investment by ensuring that the new solutions could be easily scaled to meet its expanded storage needs as the business grew.

Selecting the best solution Elecon decided to go with the Hitachi Data Systems solution as it stood up best to the test of scalability. Hitachi Adaptable Modular Storage (AMS) 2100 is a mid-range storage system – built to handle complex tasks while delivering operational efficiencies and good performance. Equipped with Hitachi Dynamic Provisioning software, the system reconfgures storage – based on application usage patterns, thus, improves utilisation rates and simplify storage management. The solution also features 8Gb/sec Fibre Channel

Elecon has supplied hi-tech equipment to major core sectors such as steel, fertilisers, cement, coal and many others.

connectivity for input / output (I/O) intensive operations involving high-performance Oracle applications. SAS disks cater to production applications and servers while SATA disks provide dedicated storage for file system backups. It allows for high levels of data availability and includes responsive mechanisms that update microcode even while data remains online. The symmetric active-active controllers in AMS 2100 further facilitate availability and include a dynamic load balancing mechanism that allows for fully automated I/O distribution and prevents bottlenecks. The presence of these features provided a distinct performance-oriented edge to the new system.


Results from the upgrade For Elecon, the Hitachi Data Systems solution proved to be a signifcant technology upgrade that delivered business value on many fronts: New standards for availability: AMS 2100 is a robust storage system built on the reliable

Hitachi modular platform. The system guarantees near-complete data availability (99.999%). There is no single point of failure in the system and it also comes equipped with mirrored cache, complete with battery backup. These features allowed Elecon to minimise both disruption and the risk of data loss in its daily operations. Improved performance: The new systemâ&#x20AC;&#x2122;s 8Gb/sec of front-end connectivity provided a huge boost in system performance and scalability for Elecon in comparison to its existing system. The advanced point-to-point SAS-based architecture also allows for greater throughput and higher random I/O processing, and this further improved Eleconâ&#x20AC;&#x2122;s speed and performance results. Storage area redundancy: The Storage Area Network (SAN) delivers up to 24 ports of Gb/ sec performance in an energy-effcient, optimised 1U form factor to support the most demanding physical and virtual server deployments. Elecon deployed 2 such SAN switches for increased reliability and redundancy. Simplifed management framework: The Graphical User Interface (GUI) of the Hitachi system sports matching CLI and API functions. It is an intui-tive interface with many wizards for configuration, management and maintenance. These features allowed Elecon to simplify and automate several system management complexities. Faster application response times: Dynamic load balancing controllers in the Hitachi solution helped maintain application response times during

industry 2.0

- technology management for decision-makers | november 2012


information technology periods of heavy access. They virtually eliminated controller bottlenecks found in traditional asymmetric controller designs. For Elecon, minimising latency in application usage also had the overall effect of reducing system management time and costs, improving resiliency and lowering risk.

Hitachi’s dynamic load balancing controllers in AMS 2100 have yielded time and cost savings for Elecon. Efficiency through Dynamic Provisioning: Dynamic Provisioning software lowered storage and operational expenses for Elecon by building in a smart and efficient management of storage capacity. As a result of this critical feature that allows for provisioning only what is used, Elecon was able to optimise its physical disk utilisation and improve performance in general. Cost-effective customisation: An aspect of the customised solution that was attractive to Elecon was the fact that it was tailored to accommodate use of their existing storage solution. The Sun system already in place at Elecon was incorporated


november 2012 | industry 2.0

- technology management for decision-makers

in the new infrastructure to manage the storage needs of the company’s data management applications, thus avoiding a costly technology write-off for the company. Ready for future growth: The Hitachi solution also offered Elecon the ability to seamlessly upgrade to a higher-end system – such as the AMS 2300 or AMS 2500 – if and when the company’s capacity needs be increased in the future. These two systems pack the capabilities required to support the most advanced storage management needs of medium and large enterprises. Elecon could thus feel confident that the system would deliver on the critical aspect of scalability that it sought as its business expanded.

Comments from Elecon’s IT team The IT team from Elecon informs, “The dynamic load balancing controllers in AMS 2100 have yielded time and cost savings by eliminating the need to manually mitigate load imbalances. They are a significant value-added feature of the Hitachi solution. We chose Hitachi Data Systems primarily for the scalability and cost-effectiveness of its solution. But we have also realised a significant improvement in performance levels and application response times with this storage upgrade.”

information technology


New Approaches for Infrastructure Security The willingness to think beyond compliance and accept security as a philosophy â&#x20AC;&#x201C; is necessary to implement a truly reliable security program that will ensure long-term organisational support. By Rick Kaun

industry 2.0

the Indian economy surges ahead into the 21st century, infrastructure security is a challenge. Threats to critical assets in a wide range of industries continue to emerge and evolve, as does the complexity and interdependency of seemingly independent systems. The ability to protect infrastructure against these


- technology management for decision-makers | november 2012


information technology threats—both intentional and accidental—will have a significant impact not only on the nation’s ability to produce goods and services in a global economy, but also on the reputation of India as a home for economic investment and opportunity. Too often process plants believe that they are secure strictly because they are compliant or follow the letter of regulations. However, dangers like Stuxnet show that more dangerous threats exist internally and are prime examples of how facilities that don’t tie in a philosophical shift on how they view security can be susceptible to problems. A change in behaviour – the willingness to think beyond compliance and accept security as a philosophy – is necessary to implement a truly reliable security program that will ensure long-term organisational support. What plants need to consider are the risks associated with a far more probable threat vector —inadvertent, nonmalicious behaviour that introduces threats to network security. There is a very high likelihood that the majority of companies are going to be hit by this kind of unintentionally negligent behaviour many times and long before they are the victims of targeted attacks. It is the average user already at work in trusted situations and locations at a facility that will likely cause an organisation to fail to operate reliably. Security

conferences and presentations are full of examples of the wellintentioned vendor with a virus on his laptop, or the honest but unenlightened employee who clicks on the wrong page, email or attachment. Companies are rife with users who circumvent security policy without understanding the repercussions and risks they are introducing. Companies need to rethink the end goal of compliance. The majority of facilities appear

to exempt themselves from compliance will diminish. By recognising cyber security’s crucial role in the reliability and robustness of the very networks our critical applications run on, what emerges is the wisdom of implementing a baseline security model across facilities, regardless of industry, to increase the likelihood of safe, reliable operations and minimise potential security incidents. With this emphasis on safe, reliable operations of facilities – and the implications of this for environmental regulations – we quickly see how cyber security is destined to become entrenched in process control industries in much the same way as the culture of safety has over the last few decades. In light of the unavoidable move towards increased regulation, the argument against implementing cyber security becomes really just a discussion on how to postpone the inevitable. And delay can have serious repercussions for the success and cost of an effective security program.

In today’s global situation, from an economic standpoint, long-term planning provides flexibility in terms of spreading the cost and effort over time and other budgets and initiatives.


november 2012 | industry 2.0

content to limit themselves to satisfying the letter of their current regulations or standards. What is needed is a willingness to think beyond the bureaucracy of compliance to embrace the realisation that cyber security is really about ensuring safe, reliable, and expected system behaviour. With this new mindset, companies will quickly recognise that cyber security has an immediate, day-today relevance far beyond any uninformed threat of cyber terrorism, and their willingness

- technology management for decision-makers

Benefits of a long-term security strategy Embracing a security philosophy and developing a long-term strategy for its implementation, regardless of any current or impending regulatory requirements, allows an organisation to plan a security rollout that will succeed in terms of its effectiveness, employee support and financial cost.

Building a security program over time and with the involvement of multiple work disciplines supports the creation of a program that truly protects your organisation and ensures its safe and reliable operations. This phased approach allows time for trial and error and to incorporate lessons learned into your security program. This approach also positions your organisation well once a regulatory standard is mandated for your industry. The company that builds security best practices over time into their everyday project list has only a small step to close the gap to full compliance. Long-term planning also has the advantage of allowing organisations to introduce and socialise the concept of security over time. Implementing a security program requires far

more than simply installing technology and turning it on. If employees are not familiar with, or do not support the security programâ&#x20AC;&#x2122;s concepts and controls, they will not implement them. And without active support and endorsement of a security program, the results will not achieve the desired level of security. From an economic standpoint, long-term planning provides flexibility in terms of spreading the cost and effort over time and other budgets and initiatives. For example, a detailed inventory of cyber assets is a fundamental building block for any security program. This information could be gathered during the regular day-to-day interactions of users at plant facilities, or perhaps an inventory program could be planned and assigned

to summer students. Planned upgrades to assets and units could incorporate the future needs of a security program and include small additions like domain controller builds or network equipment upgrades. In this way, the information and infrastructure required to support a security program can be built over time.

The Author

is the Global Business Leader at Honeywell Industrial IT Solutions.

Final statement A philosophical shift is required in order to move forward and implement a truly manageable, scalable security program, which will contribute to the safe and reliable operation of a facilityâ&#x20AC;&#x2122;s critical infrastructure. Holding out to the end will not only mean delaying effort, but may also seriously affect the success of a security program and the cost to implement it.

industry 2.0

- technology management for decision-makers | november 2012




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supply chain

Peeping into causes behind

Supply Chain

The trend of outsourcing supply chain activities is ever growing worldwide. Although, manufacturers get multiple benefits out of this practice, it is not always a panacea. According to a recent global survey, three in four firms recorded at least one supply chain disruption in 2011, with service failures by outsourcers.

Disruption I

n its fourth consecutive yearâ&#x20AC;&#x2122;s survey report, which recently Business Continuity Institute (BCI) made public, the institute highlights the importance that outsourcing decisions have in supply chain resilience, with service issues attributed to outsourcing jumping to third place in the causes of supply chain disruption at 35 per cent, (up from 17 per cent in 2011).

Background details of the survey Respondents were from 68 countries and 14 industry sectors. The total number of responding organisations was 532. The survey reveals that 73 per cent of organisations have recorded at least one supply chain disruption in 2011 with 39 per cent of analysed disruption originating from below the immediate supplier.


november 2012 | industry 2.0

- technology management for decision-makers

Supported by the Chartered Institute of Purchasing & Supply, Zurich Insurance Group and DHL Supply Chain, the survey report concludes that effectively managing supply chain continuity is critical – not just because of the immediate costs of disruption, but also for the longer term consequences to stakeholder confidence and reputation that may arise following a supply chain failure.


Other notable findings The leading cause of supply chain disruption is unplanned IT or telecom outages with 52 per cent of organisations surveyed experiencing some or high impact disruption as a result, followed in second place by adverse weather, experienced by 48 per cent of firms. Currency volatility rises to 4th place in this survey of disruption. While not traditionally seen as a business continuity area, it shows that the business continuity thinking can be more widely applied. Disruption is also becoming more consequential – financial costs are higher than in 2011 with one in five companies registering a single incident loss of more than €1 million. Lyndon Bird FBCI, Technical Director at the BCI, feels, “The jump in disruption caused by outsourcer service failures underscores the importance of viewing service chains differently from traditional product supply chains when it comes to resilience planning – service chains are more complex, and can be harder to unwind or replace quickly when they fail. In-house skills are also lost over time, so dependency on the outsourcer increases, and thirdly decisions to award contracts are often based on transferring a problem or cost savings, not necessarily the criteria for selecting a product vendor.” David Noble, CEO, Chartered Institute of Purchasing & Supply (CIPS) comments, “We fully support the work the BCI are undertaking in raising the strategic importance of supply chain risk across a range of sectors. We are seeing more and more debate around the importance of risk, how to reduce the impact of risk and mitigate against it but it’s still not enough – we need to see more action. Stakeholders and shareholders should be regularly asking their senior management what they’re doing about supporting their supply chains and what plans are in place if unforeseen disruptions do occur.”

Adverse weather


35 %

Unplanned IT or telecom % outages


Service issues attributed to outsourcing

Causes behind supply chain failure Nick Wildgoose, Global Supply Chain Product Manager, Zurich Insurance Group, opines, “The BCI Annual Survey has consistently shown that over 70 per cent of respondents suffered significant supply chain disruptions. In the latest survey, the costs associated with just a single incident are in over 20 per cent of cases in excess of one million Euros rising to hundred million Euros. It is therefore critical, especially in the current economic climate, that organisations invest the right amount in their supply chain due diligence and risk management treatment.” Mark Parsons, Senior Vice President, Business Development, DHL Supply Chain, says, “The report highlights both the ongoing business challenge and the vital importance of ensuring customers address business continuity issues within ever more complex supply chains.” “As an outsourcing partner, we take our responsibilities in this area extremely seriously, focusing strongly to ensure that all our sites have effective business continuity management plans in accordance with the DHL Supply Chain 10 step BCM methodology which is aligned to BS25999. Ensuring that outsourcing improves, rather than detracts from, business continuity means focusing on collaboration, partnering with customers and understanding how the many linkages in the supply chain – both within and outside our contractual control – impact on the service provided to our customers, suppliers and stakeholders.”

industry 2.0

- technology management for decision-makers | november 2012


product gallery CNC Plasma Cutter


echno offers HPLC CNC Plasma Cutter series. It has been designed for small to mid-sized shops that wish to bring their manual plasma process to a whole new level. According to the company, their new CNC Plasma’s unique design has drawn compliments from Hypertherm and Thermal Dynamics CNC Plasma experts, who were impressed with the HPLC’s ease of operation, built-in automatic system functionality and overall system flexibility. Every HPLC product is built from the same heavyduty welded steel and precision drive system. The fully automated CNC Plasma interface has advanced, yet with user-friendly, features that will guide users with ease. Customers can choose from three standard table sizes, which can handle up to 1-1/4” thick material. Techno, Inc. Tel.: +1 516 3283970 Website:

Industrial Flowmeters


Rotary Screw Compressor


aeser’s redesigned ESD rotary screw compressor series contains 250 and 300 hp models. ESD units provide flows from 816-1522 cfm and pressures to 217 psig. The ESD series was redesigned for increased efficiency and improved specific performance, as the one-to-one direct drive design includes a premium efficiency drive motor with three PT 100 temperature sensors. All models come standard with the new Sigma Control 2 intelligent compressor control for enhanced communications capabilities and equipment protection. Also standard is a variable speed fan for the fluid cooler that helps save energy by adjusting to cooling demands. Kaeser Compressors (India) Pvt. Ltd. Tel.: +91 20 667 69 240 Website:

Bulk Bag Filler


dual bulk bag flling system from Flexicon integrates two swing-down bulk bag fillers with a pallet dispenser and powered roller conveyors, allowing safe, high capacity filling of bags of all popular sizes. Programmable controls allow the fillers to operate separately or simultaneously, filling bags of the same size or two different sizes. When a filling cycle is initiated by the push button or contact closure, pallet dispenser forks lower the stack of pallets onto the roller conveyor, withdraw from the bottom pallet, and raise remaining pallets, allowing the roller conveyor equipped with photoelectric eyes move the dispensed pallet to position below the filling station. The bag frame of the swing-down fill heads lower, then pivot to a vertical position, so an operator at floor level can safely attach bag straps to automated latches.

wyer Instruments offers Series P72 range of flowmeters. According to the manufacturer, they are heavy bodied meters for corrosives, gases and high purity fluids, and are designed specifically for demanding applications. They are ideal for caustic solutions as well as liquid chlorine, sodium hypochlorite and chlorine gas. These flowmeters are suited for water treatment facilities that deal with those aggressive types of gases and fluids. The P72-A comprises P72 and polysulfone, while the P72-B has all P72 wetted components for maximum corrosion resistance. All these units have a full-scale accuracy of +2% and can be disassembled quickly without the meter being removed from the pipeline for easy cleaning. The flowmeters are available with standard 3/4˝, 1-1/2˝, 3˝, and 4˝ flange connections. Optional NPT connections are also available.

et Edge supplies Mid Rail Gantry Model MR513 water jet cutting machines. As per the manufacturer, the machine is sized especially for fabricators, machine shops and stone and tile shops. It cuts complex parts from virtually any material without creating a Heat-Affected Zone (HAZ). The Mid Rail Gantry comes standard with one abrasive jet cutting head. A second cutting head can be added to increase productivity. Optional mirroring makes it possible to cut large parts twice as fast. The waterjet systems are available in a wide range of work envelopes, from 5’x5’ to 24’x13’ and utilise an industrial PC controller.

Dwyer Instruments Tel.: +1 219 879-8000 Website:

Jet Edge WaterJet Systems Tel.: + 1 763 497 8700 Website:


november 2012 | industry 2.0

Flexicon Corporation Tel.: +1 888 353 9426 Website:

Water Jet Cutting Machine


- technology management for decision-makers

Industrial Fluids Cleaner

Tempearture Measuring Device


IAS Infrared offers digital pyrometer Series 10 for accurate noncontact temperature measurements in industry. With the PYROSPOT DP 10N, their series has been extended by a pyrometer, which can detect from 2.0 to 2.8 microns, and (the alternating light principle temperatures) from 50 to 1,200 °C. PYROSPOT DP 10N is suitable for non-contact temperature measurements on metal, ceramic and graphite surfaces. The measurement with short wavelength reduces these effective emissivity-related errors, while the used alternating light principle allows a high reproducibility of the measurements. To align the pyrometer exactly on the measurement object, the measuring instruments are equipped with either LED or laser aiming light. DIAS Infrared Tel.: +49 351 8717228 Website:

Truck Stacker


etform’s Truck Stacker automation is designed to drop sheets directly onto a flat bed truck and prevent damage due to manual handling and or handling packs with forklift trucks and similar material handing devices. According to the company, the most significant gain of installing the new style stacker is a significant productivity improvement and labour reduction – easily justifying the cost of the investment. This product is the key in enabling a lean manufacturing method to streamline and achieve one-piece-flow manufacturing – ensuring proper inventory control and on time shipment. This addresses the challenges due to space constraint.


etal chips and fines that collect in machine tool sumps and large central systems can effectively be removed with Eriez Hydroflow’s Solids-from-Liquid Centrifuges using media free filtration. Unwanted solids have a detrimental effect on coolant performance and longevity and cause lost production when removed by traditional methods. The presence of chips and fines in a sump or system can cause corrosion via galvanic reaction, making it necessary to continuously remove the unwanted contaminant without delaying a plant's operation. These centrifuges are specifically engineered for heavy-duty industrial applications, and offer years of trouble-free operation. These units are designed for a wide variety of operations, including machining, grinding and sawing, water jet cutting, de-scaling, precious metals recovery, rolling and tube mills, parts washers and many more. Eriez Hydroflow Tel.: +91 44 2652 5000 Website:

Plasma Cutter


etallurgical High Vacuum (MHV) offers rebuilt vacuum pumps for tough heat treating applications. According to them, below the cost of a replacement unit, MHV rebuilt pumps have become the standard for many customers requiring all-new pumping capacity. “Once they get a pump from MHV, they can see the high quality that an America-made company delivers. They get a pump that looks like new and runs even better,” says Geoff Humberstone, President, MHV.

YS has launched a new lightweight single phase 230 V Plasma Cutter – 21KF – with a unique in-built 60/70dB air compressor and dehumidifier, making it fit for use in workshops and on-site engineering applications, where no compressed air supply may be available. Utilising inverter technology, it is designed to cut at up to 20A using a 13 amp fuse plug, producing low intensity quality cuts on 6mm thick steel, stainless steel and cast iron sheets as well as on 4mm aluminium and copper sheets including painted surfaces, without any distortion. The GYS ‘Pilot Arc’ system enables the arc to start without any contact with the sheet being cut, making it very easy to use. Starting without any HF – avoids any electromagnetic interference (phones, computers radios, etc).

Metallurgical High Vacuum Corporation Tel.: +1 269 543 4291 Website:

GYS GmbH Tel.: +49 (0) 241 189 23 71-0 Website:

Metform International Tel.: + 1 905 670 2057 Website:

Rebuilt Vacuum Pumps


industry 2.0

- technology management for decision-makers | november 2012


product gallery Level Sending Technology


IES, Inc. supplies its patented digital Fuel Level Sender technology. This is now available on all new production Cirrus SR22T, SR22 and SR20 aircraft. Scott Philiben, CEO and Founder of CIES, states, "Digital level sending technology in the Cirrus Aircraft, is bringing a new level of reliability and accuracy to fuel level. Display of fuel levels has been available in aviation on the Multi Function Display or digital aircraft instrument, but now, for the first time, that information comes from a digital sensor, reporting fuel or ice protection fluid level in binary one's and zero's. The sensor technology provides information fully isolated from the tank contents, and provides a steady data stream of liquid level to the MFD. There is no need to amplify or condition the signal to compensate for long wiring runs or corroded connections.  CIES Inc. Tel.: +1 541 815 6731 Website:

Handheld RFID Reader


ipher Lab offers the new 1861 handheld RFID reader. The 1861 handheld RFID reader is designed to provide flexibility in data collection considering RFID technology. The product provides user extended RFID reading and writing capabilities via most Bluetooth mobile devices. In addition, it can further integrate barcode capture and RFID data collection into one robust device by simply snapping CipherLab 9600 series, CP50 series, or other mobile computers onto its custom mount attached to the CipherLab 1861 handheld RFID reader. Thus, the usercan enjoy hassle-free one-hand operation via single unit with high work efficiency. Additionally, it gives users the capability to read UHF (Ultra High Frequency) RFID tags in a distance up to 1 m (~3 ft.), and write data from 0.5 m (~1.6 ft.) away. Dwyer Instruments Tel.: +1 219 879 8000 Website:

Electric Wheelbarrow


ower Pusher introduces its new E-750 electric wheelbarrow –designed to transport heavy loads with ease, eliminating ergonomic challenges and unnecessary production halts associated with traditional wheelbarrow solutions for improved operator productivity and safety. Featuring a heavy-duty construction and a 24V, battery-operated motor, the E-750 is engineered to tackle diverse material handling applications. With its rechargeable battery, the E-750 can run for a total of five miles on a single charge. It is capable of moving up to 750 pounds at speeds reaching up to three miles per hour. Nu-Star Inc, Tel.: + 1 800 800 9274 Website:

Gateway Module


anner Engineering offers the SureCross B2Q Gateway Module, developed to provide embeddable, dependable and cost-effective communication capabilities for the company's Q45 wireless sensor network. The module features discrete outputs and DIP switches to map inputs from up to two wireless sensors to the Gateway's outputs. With its board-level design and easy mounting capabilities, the Banner Q45 B2Q Gateway is easily embedded inside equipment, enclosures and on control panels. The SureCross B2Q Gateway module initiates communication with the Wireless Q45 sensors and accurately controls timing and configuration for the entire network. Banner Engineering Corp. Tel.: +1 888 373 6767 Website:

Station for Industrial Ethernet


urck provides the FGEN Advanced I/O Module (AIM) station for industrial Ethernet. Designed to provide dependable communication capabilities, the FGEN AIM station elevates digital I/Os to industrial Ethernet networks. It is useful in on-machine, fixed I/O applications in environments where conditions may not be conducive to traditional I/O. For an easyto-deploy industrial Ethernet solution, it has TURCK's Multiprotocol technology that was developed to simplify industrial Ethernet for Distributed I/O. It combines multiple Ethernet protocols: EtherNet/IP, Modbus TCP and PROFINET – in a single device. TURCK Tel.: + 1 800 544 7769 Website:

industry 2.0

- technology management for decision-makers | november 2012


Industry 2.0 November 2012  
Industry 2.0 November 2012  

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