F e b r u a r y 2 0 16
w w w.manufacturingglobal.com
the way DIGITAL WASTE
Identifying losses in your organisation TECH How manufacturers need to sell
Investing in American manufacturing
IN THIS ISSUE
Bright future W E L C O M E T O T H E F E B R U A R Y issue
of Manufacturing Global. 2016 is now very much underway, and this issue kicks off with a feature on electronics giant Philips SLC, focussing on its LED lighting solutions which can cut energy usage by up to 50 percent. Featured too is OPEX Corporation, a US company which is heavily investing in its own nation by drawing manufacturing processes back from overseas and injecting jobs and business into America. Also included this month are the three signs that you have digital waste in your business and how to identify and curtail them. On the technology front, we have a piece on how manufacturers need to sell - companyâ€™s digital presence is essential, as customers perform much of their research via the internet and rely on what can be found online.
Enjoy the read,
Nell Walker Editor email@example.com
LEADERSHIP Close to home TECHNOLOGY Promoting your products
LISTING Tackling digital waste 4
Company Profiles EUROPE
28 Philips SLC
Close to home Writ ten by: Jim McMahon
LEADERSHIP FOR DECADES AMERICAN manufacturing prospered, spurred on by an insatiable desire for new products, continual improvements in technology and an abundant workforce of skilled manufacturing tradesmen. But as companies progressively moved their manufacturing overseas, so went the jobs for hundreds of thousands of skilled workers. Those companies that elected to keep their manufacturing in America however, still needed skilled manufacturing workers, and the most efficient and direct way to achieve this was through company-sponsored, structured training programs. One company that stands out particularly, which early on developed and implemented in-house training programs for its skilled manufacturing employees is OPEX Corporation, headquartered in Moorestown, New Jersey. This world-leading manufacturer of high-speed automated mailroom, document scanning and material handling systems, has been providing structured, company-sponsored training programs to develop skilled workers, continuously since the early 2000s. Despite the trend to push manufacturing offshore for the last 8 February 2016
30 years, OPEX made a deliberate choice in the other direction, and instead invested heavily into training its employees. It has been at the forefront of employing and training previously unskilled workers, and transforming them into highly skilled manufacturing tradesmen like CNC machinists and programmers, welders, electronic technicians and woodworkers. The breadth of this company’s training programs is extensive, reaching well beyond manufacturing. OPEX maintains one of the most comprehensive service organisations in the industrial sector. Where outsourcing field technicians is the norm, OPEX built its own worldwide network of over 300 locally-based, direct-employee field technicians, which provide full 24/7/365 support to its thousands of customers. Every one of these technicians has been factory trained and certified at OPEX. “The shortage of skilled manufacturing tradesmen has presented some unique challenges for us,” says Doug Hendry, Manufacturing Operations Manager at OPEX, and First Class Journeyman Machinist. “Like so many other manufacturers, when we put out ads for qualified CNC
CLOSE TO HOME
â€˜Despite the trend to push manufacturing offshore for the last 30 years, OPEX made a deliberate choice in the other direction, and instead invested heavily into training its employeesâ€™
â€˜Because of the energy-saving and sustainable systems designed into this new metalworking facility, the total energy usage of the company still is less than what is generated through its solar array system, making this new plant a net-zero user of electrical power from traditional energy sourcesâ€™ 10 February 2016
CLOSE TO HOME
machinists, for example, we do not get very many applicants. The pool of skilled labour has disappeared, as manufacturing has gone offshore. “To deal with this problem, we implemented comprehensive training programs,” continues Hendry. “We take entry-level workers and put them through a rigorous in-house, two-year, hands-on training program in manufacturing on our various machines. We turn them into skilled tradesmen that we can employ in our manufacturing facilities.” OPEX recruits candidates for its training programs from several sources, such as from existing workers who express interest in becoming skilled in specific manufacturing trades. These workers could have absolutely no experience in skilled manufacturing, or may be proficient in some other occupation. Candidates are also recruited from local-area vocational schools, community colleges and high schools. Additionally, the company has interned several students from the YALE School for handicapped students in Cherry Hill, New Jersey, over the last few years. The students have worked in the assembly department,
where they gained important job skills. The program has worked very well for both YALE and OPEX. Students that are identified as high performers are frequently accepted into the in-house training program. “Take our electronics shop, for example,” says Hendry. “When electronics technology students get to their junior year, they qualify to do internships at local manufacturers. We will recruit some of these students who demonstrate they have the aptitude to perform the work in our electronics shop, and supplement their education with hands-on training. We start them off with very simple testing tasks. Then we incrementally progress them up to testing and fixing circuit boards, configuring and repairing PCs, wiring machines on our assembly floor, and helping to troubleshoot system-level machines before they ship out. We have found this to be a great source of talent for hiring into our electronics department.” Additional facilities Sticking true to its goal of bringing back skilled manufacturing to the US, in January 2015 OPEX opened its newest manufacturing facility – a 42,000 11
square-foot metal fabricating plant located in Pennsauken Township, New Jersey, a short distance across the Pennsylvania border from Philadelphia, and about ten minutes down the road from its flagship 250,000 squarefoot manufacturing and corporate complex in neighboring Moorestown, New Jersey. Every aspect of the shop has been designed with the latest technology and processes for efficient operation. By any standard, this new metalworking shop is a model for streamlined production. This latest shop is OPEX’s second fully-operational metalworking facility. 12 February 2016
This shop is focused on producing the company’s rapidly growing Perfect Pick material handling technology. “Perfect Pick was launched just over two years ago, but it has become a rapidly growing segment of our business,” says Dave Andrews, Facilities Manager at OPEX. “By December, 2013 we knew we needed additional metalworking space, so we began looking for another building. At the same time, we were evaluating our process flow and equipment needs for the new shop. By June, 2014 we had secured a location, and construction and build-out had
H E A DCLLI O NS E ER TE O Q UHIO RM ED E
begun. By January, 2015 the new shop was up and operational.” Energy efficiency The new plant was designed with multiple energy-efficient and sustainable systems. OPEX has a strong track record of implementing such initiatives into its manufacturing operations. Just a few years ago the company installed a 2.77 megawatt solar array system, capable of producing more than 100 percent of the electrical energy needed to operate its total manufacturing, distribution and administrative complex in Moorestown, New Jersey. This effectively made OPEX a net-zero user of electrical power from traditional energy sources. Its conversion to sun power made it the largest solar installation in the state of New Jersey operated by a privately-held company, at the time of its installation. In effect, power required to manufacture the company’s entire product line is now derived, 100 percent, from a sustainable source. Because of the energy-saving and sustainable systems designed into this new metalworking facility, the total energy usage of the company still is less than what is generated
through its solar array system, making this new plant, as well, a net-zero user of electrical power from traditional energy sources. Vision With the many design, production, ergonomic and sustainable systems built into this facility, this new metalworking shop presents a model for more efficient manufacturing. It also overtly makes the statement that manufacturing in the US is on the comeback. “There are a number of reasons why OPEX has continued to manufacture its products in the US, instead of outsourcing overseas,” says Dave Andrews. “We wanted to have better control over our quality, better responsiveness to our customers, more flexibility with implementing engineering changes, and reduce the cycle time for the introduction of new products.” “But underneath all of these, it is simply the commitment to American manufacturing, and the skilled jobs that this brings,” adds Andrews. “If more companies shared this vision it would go a long way to building a stronger America.” 13
PROMOTING YOUR PRODUCTS
People and companies are buying differently; so what does that mean for the ways in which companies need to sell?
Written by: Steve Th u rlow, Business Director, I ndustrial & Engineering M arkets, H uthwaite I nternational
THERE IS NO doubt the world of commerce has changed dramatically in recent years. The proliferation of the web, delivering limitless information to your desktop has had a huge, and obvious, effect. However, particularly in the B2B world, there are other, more subtle changes happening. This is especially true in the global manufacturing sector where the 14
harsh realities of the post-recession economic landscape are keenly felt. What are these changes? Firstly thereâ€™s globalisation itself, breaking down boundaries and creating a broader, more transparent environment. Secondly thereâ€™s a change in the purchasing process, with
companies no longer leaving buying decisions to engineering and technical departments but now involving finance and professional procurement too. Indeed, for many organisations the actual buying process is now exclusively the domain of procurement. And itâ€™s this second change that has brought about the most significant
change of all. Engineering customers no longer buy on the strength of engineering capability alone. The commercial buying team demand more, they consider return on investment, total cost of ownership and life-cycle management when weighing their decisions. They need to see what value, often in hard monetised terms, the selling 15
‘Global customers expect, and deserve, the same experience whenever and wherever they deal with their suppliers’
PROMOTING YOUR PRODUCTS AND SERVICES
organisation can deliver across their business. Having the best product is no longer enough. So what does that mean for how companies sell? Let’s consider the web. Not that long ago if a customer wanted to get up to speed on new product developments, compare products or investigate potential new suppliers, they’d invite a few salespeople to come and talk to them. The primary role of the salesperson was an information giver. Now, that customer simply goes online. The days of the salesperson as a talking brochure are gone, every sales organisation has to ask: ‘Do my salespeople add value, for both us and the customer, every time they meet?’ If the answer is no it has to change. With globalisation the keys are transparency and consistency. Global customers expect, and deserve, the same experience whenever and wherever they deal with their suppliers. Of course there will be local, cultural differences but your sales processes, sales language and product positioning have to be consistent. A globally implemented, universally applied common sales language
and sales process are essential. When it comes to dealing with professional procurement, things become a bit tougher as most salespeople are well out of their comfort zone dealing with these people. But it needn’t be so. Sales organisations simply need to understand how to communicate their technical advantages in ways the procurement people can relate to. For example, when discussing a product with a production manager a statement such as: “This has a Mean Time Between Failures that’s 10 percent longer,” will immediately resonate; to the production manager the benefit of such a capability is obvious. Saying the same thing to a professional buyer, or even worse, “The MTBF is 10 percent longer,” is meaningless. The salesperson needs to take an extra step to demonstrate how they can help in terms the buyer understands, for example, “…is 10 percent longer which means you have to shut down for maintenance less often, saving you €….”. Which brings us on to the final piece of the jigsaw - value. The biggest challenge facing engineering and manufacturing organisations is the 17
TECHNOLOGY shift from a technical, product-centric sales approach to a value-based, customer-centric one. It involves a change in mind-set and sales skills but it’s not impossible. The examples above are a case in point, the production manager immediately can see the value of a longer MTBF, the buyer needs more information to see value that they can relate to, in that case a cost saving. However, that is a little too simplistic and only tells part of the story. Let’s consider it in more detail. A longer time between maintenance shutdowns can help a business, and the individuals within it, in many ways. For the production manager it means longer runs, and hence more production. It may mean the manager hits a target, and earns a bonus, sooner and more readily. It can perhaps reduce the disruption that a shut-down brings, resolving issues like how to make up for lost production, how to utilise the line operators whilst a line is down or the physical disruption a shutdown brings. For the buyer there are a different set of benefits; maintenance costs are reduced, helping the buyer hit spending targets (and maybe 18
triggering their bonus too), the money saved can be reinvested in other areas of the business – which could in return generate additional revenue or savings, and the reduced disruption may allow other productivity improvements. And it doesn’t stop there, the value created by more efficient, less costly production rolls on – orders fulfilled more quickly, keener pricing, happy customers, more market share, increased competitiveness, more profit, company growth - the list is endless. And all from a simple technical advantage. The key is to get the sales people comfortable and skilled at communicating to their customers the value a technical advantage can bring. It’s not simply a case of telling the customer, you have to get them to work it out for themselves. “I can save you €X” isn’t persuasive. “What does a 10 percent improvement in MTBF mean for you?” is. It makes the customer work out what the benefit is, and what it means for them personally, for themselves. Skilled salespeople, across all B2B disciplines, use effective
PROMOTING YOUR PRODUCTS AND SERVICES
Skilled salespeople uncover and develop the needs of each customer
‘The biggest challenge facing organisations is the shift from a technical, productcentric sales approach to a value-based , customer centric one.’
questioning to uncover and develop the needs each customer has, and explore the value and benefits that customer will get if those needs are met. Only then does the salesperson present their solution saying, in effect, “Here is how we can give you what you have said you want”. So, the product pushing, talking brochure is a thing of the past; the consultative, value focussed salesperson is the future. 19
Tackling digital waste What are the three signs of digital waste and how could they affect your organisation? Written by Cris Wendt, Principal Strategy Consultant, Flexera Software
The rapid adoption of software in physical goods
Marc Andreessen, the inventor of the web browser, said in 2011 that ‘software is eating the world’. Increasingly the value of physical devices is defined by the embedded software inside of those devices, or the control software that helps to manage those physical goods. In this context, it’s important to understand how software is different to hardware, and what it means to eliminate digital waste that is so hard to characterise, yet so important to understand. Eliminating digital waste can drive up revenue and increase overall
Why is this important? In our customer engagements, we have found classic hardware companies are seeking to have high margin software become 40 percent or higher of overall revenues. In addition, many of these companies find that their value and market differentiation are due to software. In a discussion with a marketing executive at a large networking company that manufactures and sells large network switches, I was told ‘we are a software company – all of our value is in the software. The hardware you see is mostly off-theshelf components that anyone can buy and use. Even the Tesla has been described as a computer with software on wheels. And of course, the Nest thermostat is an expensive, 21
LIST ‘smart’ device that commands a premium because of the value the embedded software provides. Another executive once told me that their ‘land and expand’ market strategy was to sell a low-end device that more easily allows market penetration, and then increase the revenue from that device over time by selling advanced features and capacity that can be deployed simply by issuing an electronic license key that enables those functions. A similar strategy is also used
routers or security appliances are replaced by pure software deployed as ‘virtual machines’ that run on commercial blade servers.
Understanding digital waste Companies that are built to deploy physical goods have more trouble trying to effectively monetise their software or digital goods that one might think. Part of that is due to how they approach managing the ongoing software lifecycle.
‘Eliminating digital waste can drive up revenue and increase overall product margins’ by companies that sell using a bid process to academic and government institutions. Once they win the highly competitive and costly bid, they can more easily expand capabilities without going through the bid process again. They are able to sell more capabilities and capacity through software enablement expansion (again using electronic license keys) that only they can provide. Again, going back to the networking and telecommunications markets, entire hardware offerings such as 22
When a company manufactures physical goods, it’s easy to identify defective material that becomes waste and a drag on the bottom line. On the manufacturing floor, you will find containers with defective components, sub-assemblies and final assemblies. Some can be repaired, while other waste may need to be discarded. Material that is defective in the field may be returned via a return material authorisation (RMA) process. In these cases, the waste is characterised, a cost is assigned, root causes for
TA C K L I N G D I G I TA L W A S T E
defective material can be found, and remediation process put in place to reduce defects and waste. Over time, the manufacturing processes are improved and optimised and better component suppliers may be used. In the digital economy, waste is different. It is not a problem, for instance, of a higher-than average cost per part that is shipped. Digital goods such as software donâ€™t typically have a cost of goods sold. Waste is a problem of not maximising revenue over the lifetime of the business relationship
with customers because the sale, deployment, use, replenishment and tracking of digital goods is not effectively managed. In a digital economy, the goods produced are not physical, but rather a â€˜license to useâ€™ the digital goods within well-defined boundaries. A license-to-use is not a one-time event, but an entire series of interactions with a customer that evolve and grow over time as the usage of the digital goods continues. When companies only focus on the initial sale, and not the ongoing relationship,
LIST digital waste can easily cost 25 percent or more of overall revenue. One large software company invested over $50 million in a project to recover over $700 million in annual revenue. The waste in this case resulted from problems effectively managing their ongoing recurring revenue stream.
The needs of a software supply chain
Once the order is taken, the end-customer is provided access to the software and is able to use it, potentially move software functions among machines, renew support (to enable access to new versions), and expand functionality 24
In the world of physical goods, the supply chain and monetisation paradigm is built upon a model of taking an order, fulfilling the order with physical goods from inventory, billing the customer and then collecting revenue. All of the heavy lifting is done by the supply chain during the manufacturing process and ends at shipment or fulfillment. For software, the revenue model is built upon an ongoing relationship with the customer to enable continuous expansion. Once the order is taken, the end-customer is provided access to the software and is able to use it, potentially move software functions among machines, renew support (to enable access to new versions), and expand functionality. In this paradigm the â€˜heavy liftingâ€™ in the supply chain is done after
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fulfillment to manage the ongoing lifecycle of the software revenue model. In some cases a channel partner sits between the producer and the end-customer, obfuscating what an end-customer really owns. A good way to think of a digital goods supply chain is to view it like the app store experience for mobile phones such as the Apple App Store or Google Play. Once a purchase is made, the customer has a self-service facility to view their financial credit, manage purchases, view their history, and move software to another device. In addition, Google and Apple have keen insights into who the end-user is, what they’ve purchased, and upsell opportunities. Digital waste accumulates because of an inability to manage this ongoing lifecycle of the software revenue model.
executives describe the renewal problem as ‘gold dust littering the floor while we concentrate on building bricks’. I’ve even heard renewal representatives say, ‘We had to get this renewal done, so we felt the number of copies that we had was good enough. At times it seems as though the gold dust might more accurately be described as gold bars littering the floor. 2. An inability to create targeted upsell campaigns to the appropriate individual, creating a void of five – 10 percent of revenue. One person responsible for marketing campaigns I’ve encountered said that based upon experiences at her previous company, her current company is missing out on seven percent upsell potential due to poor tracking of actual end-customer deployments.
Indicators of digital waste Signs that you have digital waste include: 1. Digital waste is evident when maintenance or subscription renewal rates are lower than the industry best practice value of 85 to 95 percent or when renewals are late, or are incomplete. I’ve heard some
3. Manual-intensive audits (of the largest revenue producing customers) reveal over-usage of goods usually by 10 percent, if not greater. Many producers and consumers of the software are startled to find levels these levels of software license non-compliance 25
LIST – where customer usage exceeds contractual terms. Without software compliance controls and monitoring, customers can easily over-deploy or over-use software. This is especially true for large customers who find efficient ways to deploy large amounts of software or software upgrades using distribution methods and have no good methods to reconcile against the entitled amount. This over-usage amounts to revenue leakage, because the producer is not getting paid for software that has been deployed and is being used by the customer.
Developing a world-class digital goods supply chain As companies move to expanding their hardware supply chain or create a software supply chain, we focus on the 3Ps, summarised below as a way to
‘When a company manufactures physical goods, it’s easy to identify defective material that becomes waste and a drag on the bottom line’ 26
minimise waste and maximise revenue: • Pricing (and licensing): Hardware is usually priced on a cost-plus basis – the price is determined based upon the cost of goods plus a margin. Software or software enabled functions are priced based upon customer value since there is no cost of goods equivalent. This means determining a scalable pricing meter that captures the value the software provides, and pricing it according to what the market will enable. The meter might be a measure of speed, additional functions, or increased capacity. This should include a pricing model for maintenance, which often includes the access to new capabilities. Starting with an effective pricing and licensing model ensures that producers have designed their offering to maximise revenue (or meet some other business objective). • Protection: Software, by its very nature can be copied and overused if there are no adequate controls. Adding or embedding licensing technology to the software ensures customers cannot over-use or over-deploy the software by providing some form of enforcement experience such
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Entitlement management systems function between an ERP system and the end-customer, enabling customers to create an account to easily access and manage their software access rights as messaging, or denial of service for out-of-compliance use. • Provision: Ensure the supply chain is able to address the needs of the recurring revenue model of software. This means adding a secret sauce to the supply chain, a system function called “entitlement management.” Entitlement management systems function between an ERP system and the end-customer, enabling customers to create an account to easily access and manage their software access rights. In addition, entitlement management works in conjunction with the licensing technology (briefly described above in Protection) by
deploying a manifest of license rights (sometimes called a license file) used by the software to ensure the customer doesn’t over-use or overdeploy software without warning. In addition, entitlement management systems provide reporting and dashboards so that the producer and customer have visibility into the status of the deployed software at any point in time, and, provide an activity audit trail. There are many companies who have learned or are learning to eliminate digital waste. Doing so is essential to effectively compete in a world driven by software. 27
Lighting the Written by: Lucy Dixon Produced by: Mark Atkinson
Philips SLC is an innovative lighting company working closely with key suppliers Khalid Al Hobayb General Manager of Philips SLC
hilips is a global leader in lighting who joined up with Saudi Arabia’s top lighting manufacturer, Saudi Lighting Company, to create Philips SLC in 2014. The combination of world-leading technology and detailed local knowledge has allowed Philips SLC to bring the latest innovations in lighting to Saudi Arabia. Khalid Al Hobayb, General Manager of Philips SLC, says that the company offers LED lighting to every sector, from residential and commercial new build and retrofit projects to consumers, end users and distribution partners. When you consider the research from the Saudi Centre for Energy Efficiency which found that Saudi Arabia’s energy consumption is amongst the highest in the world, with an average per capita consumption of electricity that is twice the global average, there has never been a better time to install LED lighting, which can provide energy savings of around 50 percent and when connected to controls energy savings of up to 80%. Innovation runs through the core of Philips SLC, says Al Hobayb, describing the company’s laboratory in Riyadh. “It’s state of-the-art, it’s the only one available in the region. Here we can test and measure all the components which are required for development of innovative products coming in from global Philips innovation centres.” The products need to be extensively tested by Philips SLC as product specifications and
requirements vary hugely from region to region. Al Hobayb adds: â€œWhere needed we are able to localise the products and adapt them to meet the specific requirements of the KSA. And here in Saudi Arabia, the clients are invited to visit the laboratory so that they can experience and examine all the products as they are being tested. When we get any of the raw materials, electronic parts, or other components, we take a batch to test in the laboratory before giving the go ahead for it to be manufactured. We do this quality test in order for us to make sure that we have the highest quality products delivered to the customers.â€?
HealWell is a new lighting solution for patient rooms which provides light that is tuned to support the biological clock and creates a pleasant ambience for patients and visitors, thus supporting the healing environment
Top quality This attention to ensuring its products are of the highest quality is crucial to Philips globally, w w w. p h i l i p s - s l c . c o m
1700+ Number of staff employed by Philips SLC
as well as Philips SLC, and the clients it works with are the proof of this – from universities and hospitals to iconic government buildings, Philips’ products are lighting the way. To facilitate this, Philips works very closely with its suppliers, as Procurement Manager Piotr Wysocki explains: “We treat suppliers like our partners. We don’t want to do one year of business and then search for another one. We want long term partnerships with suppliers, so that they know exactly what to deliver for us. This enables us to deliver the best lighting solution and fixtures. This is a very important and a very efficient way of working.” Working so closely with suppliers has evolved over the years at Philips, says Wysocki, who has been with the company for 20 years. He adds: “I have seen significant changes in Philips since
2011, with a focus on building up relationships with partners. To explain it simply, we want to cooperate only with these suppliers who can commit to us, who can really work long term with us. From 2013 to December 2015, we have optimised our supplier base to raise the level of quality, competitiveness and time to market for ensuring innovation and sustainability in our products.” And then every year the Philips team meets all the suppliers, giving them valuable information about the market and about its strategy for the near future. Wysocki adds: “We are giving them really a very good picture of
“Here in Saudi Arabia, the clients visit the laboratory so that they can examine all the products as they are being tested” – Khalid Al Hobayb, General Manager of Philips SLC
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what we expect and what we can offer them. Our way of working is based on an Early Supplier Involvement approach – it’s a close cooperation. We’re not just making demands, we’re supporting suppliers too to develop and evolve. This has led to a number of regional suppliers becoming global suppliers to Philips.” Home of innovation Philips SLC is working hard on getting the energysaving message out there, by involvement in projects such as SABIC’s Home of Innovation, where its products will be on display as part of a wider look at smart technology. Al Hobayb explains: “We are partnering in the Home of Innovation initiative with all the lighting and controls, it will be a model in order to show what is needed to reduce energy consumption.” As a key partner, Philips SLC will be able to invite customers to view the project and find out more about the products used. But LEDs are not only about energy saving, says Al Hobayb, they are also being used to showcase Saudi Arabia’s beautiful buildings. He adds: “When you look to our portfolio, Philips SLC has one of the biggest range of products
In 2015 Xceed was the most used LED road light in the Kingdom
50% The typical amount of energy savings gained by Philips LED lighting
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PHILIPS SLC The King Abdul Aziz Tunnel, which is one of the main road passage tunnels near Al Haram, leading to prominent places in Holy Makkah
Established in 1983, Sirijaya is a reputable manufacturer of innovative, high quality Fluorescent and LED Light Fittings, Lamp and Starter Holders supplying to domestic and overseas markets.
NO.9 Lebuh Perusahaan Klebang 9, IGB International Industrial Park,31200 Chemor, Perak Darul Ridzuan, Malaysia. Tel: +605-2923888 (Hunting Line), 2912223 - 2912228 Fax: +605-2912221, 2912222 Email: firstname.lastname@example.org Website: www.sirijaya.com
available, and we are number one looking at innovation, so of course we have the right capabilities to deliver systems and solutions.â€? One excellent example of this is the King Abdul Aziz Tunnel, which is one of the main road passage tunnels near Al Haram, leading to prominent places in Holy Makkah. As you would expect, this tunnel receives a significant amount of traffic during the Hajj season. The tunnel is now using 50 percent less energy thanks to the installation of LED lights, which also reduces maintenance work thanks to their lifetime of 60,000 hours. Another stunning project is Riyadhâ€™s Kingdom Centre, which dominates the city skyline. The 65-storey building includes a shopping mall, the Four Seasons Hotel and state-of-theart, luxury apartments. Its switch to an LED lighting solution with Philips ColorKinetics saves a massive 80 percent energy and has increased the time between maintenance visits from 2,000 hours of use to 50,000 hours. And all this while withstanding the scorching temperatures of a Saudi Arabian summer. Both projects illustrate the changing attitude to lighting globally, largely brought about in Saudi Arabia by Philips SLC. The company is committed to bringing new and innovative lighting systems and solutions to the Kingdom, enhancing the citiesâ€™ skylines on flagship projects and allowing consumers and businesses alike to increase sustainability while also becoming energy friendly.
The King Abdul Aziz Tunnel in Holy Makkah
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Freezing solutions for specialized needs President/CEO Sascha Poteralla discusses customization, specialization and the future of freezing technology Written by: Sasha Orman Produced by: Jason Wright
G E A R E F R I G E R AT I O N C A N A D A I N C .
Panel fabrication area of GEA Refrigeration’s production floor
EA supplies the food industry with reliable, hygienic and flexible solutions for freezing and chilling needs -- spiral freezers designed for easy cleaning and access, tunnel freezers with various belt designs for many different products, and dishwasher-type CIP systems for most of its freezers and chillers. Consumers buy frozen products from thousands of brands every day—and when they get those products home, the quality of the brand’s freezing process comes to light. Nobody wants frozen french fries or fish sticks that come stuck 42
together in a single block of ice, or frozen strawberries and raspberries that have been reduced to mush by a harsh freezing process. For high quality and performance results, food production processors turn to GEA. With more than 35 years of experience in the food freezing industry, GEA has refined the art of specialized and customized refrigeration and freezing for a wide variety of products and processes. Serving a wide range of products GEA understands that food
The sheet metal area of GEA Refrigeration’s production floor
producers and manufacturers have varied and often diversified needs. Because of this, GEA offers technical expertise and experience in various applications such as: • Meat • Poultry • Dairy • Seafood • Fruit and vegetables • Ready meals and convenience food • Bakery From whole chickens to prepared or marinated chicken tenders, from raw sliced fish to par-fried fish sticks, and from processed microwavable convenience foods to freshly harvested and flash frozen berries, GEA is able to design, engineer,
“We have identified more opportunities, and we are planning to further roll out Lean principles into the execution of our products, to serve our customers more quickly without losing our quality” – Sascha Poteralla, President/CEO w w w. g e a . c o m
Overlanders Manufacturing LP is a leading edge, precision sheet metal manufacturer. We strive to establish long term business relationships by providing a manufacturing service that excels in quality and delivers on time at a competitive price.
30320 Fraser Hwy, Abbotsford, BC Phone: 604.856.6815 Inquiries: email@example.com
A subsidiary of Exchange Income Corporation www.exchangeincomecorp.ca
Overlanders Management and staff are proud to be a key supplier to GEA Refrigeration Canada Inc.
G E A R E F R I G E R AT I O N C A N A D A I N C .
manufacture and install custom freezing and chilling solutions for practically any demand.
significant contribution in some of our sub-procedures, where the output was doubled without any capital investments,” said Enrique Efficiency through Lean Rivera, Director Manufacturing “We operations were significantly able to reduce When a manufacturing operation is our working capital in the last year, run consciously and efficiently, that which we will now maintain as a long translates to a better quality product term target. We have identified more and cost savings for the end user. opportunities, and we are planning In an effort to reduce lead times to roll out more Lean principles into while maintaining the quality of its the execution of our products, to output, GEA has adopted a Lean serve our customers more quickly manufacturing strategy, which is without losing our quality.” being implemented throughout the entire GEA plant in Richmond B.C.. Prioritizing food safety “So far we have seen quite a At any food manufacturing facility,
A sheet metal operator works on the shop floor of GEA Refrigeration w w w. g e a . c o m
An assembly operator works on the shop floor of GEA Refrigeration
G E A R E F R I G E R AT I O N C A N A D A I N C .
up to today, we have more than 1,000 chillers and freezers installed worldwide and more than 35 years’ experience in food freezing and chilling,” said Poteralla. “There is a huge amount of experience behind us, and we have a huge database available on products we have handled successfully in the past.” Though past experience cannot always prepare a business for customer needs in the future, GEA is always ready for new challenges— and new challenges come along often. “Even in the food industry, we always get new products on the market,” explained Sascha Poteralla. A state-of-the-art test lab allows our customers and engineers to use a combination of past experience and new tests to determine the best way to process new products. “We have a test center here in Richmond, so customers come to see us quite a lot,” he said. “They may bring their product prototypes A custom fit and custom testing and we carry out tests together A large part of GEA expertise comes with them to measure freezing and retention times. Further design from its years of experience in serving and innovating food freezing criteria in terms of airflows and temperatures which determines how solutions for customers. “With its foundations back in 1979 big the machine needs to be, we can food safety is a top priority. From processed foods to raw fruits and vegetables, there is always a concern for foodborne pathogens and bacteria making their way from the farm or facility to a consumer’s plate. Through innovation and technology, GEA works to provide machines that offer the ultimate in food safety and protection to ensure that its clients’ frozen products stay safe for consumers. One of our core technologies is the hygienic design of our products,” said Sascha Poteralla, President/ CEO. “Moisture is a fantastic ground for bacteria to grow, so we avoid bolted structures inside our freezers and fully weld our structures and enclosures for that reason. As moisture has a chance to grow bacteria in any tiny corners finding its way onto the frozen the product, we are using open profiles and open structures in our designs” he said.
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G E A R E F R I G E R AT I O N C A N A D A I N C .
An assembly operator works on the shop floor of GEA Refrigeration
figure that all out from those tests in our freezer lab and test center.” This kind of field testing is especially vital for producers of fresh fruits and vegetables, where it is imperative that products are frozen quickly, perfectly, and reliably. “We can simulate how the system behaves in the field, which is very important for the 48
majority of products which are not only produced but harvested— customers are very interested to find a reliable solution,” added Sascha Poteralla. “Once the peas or raspberries are harvested, you need to get them frozen or processed, otherwise you can just throw them away.”
Planning for the future GEA sees more innovation in store for the future. “We are working on continuously developing our machines and our technologies,” said Sascha Poteralla, noting that the company is working with select customers to test new development prototypes before they go to market. “In addition to that, we are capturing the demand of the market and of our core key customers,” said Poteralla. “We are keen to understand what their plans are in regards to new products they want to launch. The further we understand that, the better we can make sure we have the technology available in our portfolio to meet their demands.” The company is also looking to continue improving its processes, pushing its Lean principles even further to provide its consumers with additional benefits. “We are constantly looking to optimize and reduce the total cost of ownership of our machines,” said Enrique Rivera. “That means we expect to have longer maintenance cycles, and we are working on studies to let our machines operate longer between a servicing stop. We are looking to constantly optimize on low cost solutions with high quality standards. On one side we are trying to add features, and on the other side want to make sure we are capable of supplying a solution quickly to the market, specifically when it comes to serve customers demand and maintaining their seasonal business.”
Company Information INDUSTRY
2551 Viking Way Richmond British Columbia Canada V6V 1N4 FOUNDED
50,000,000 CAD$ PRODUCTS/ SERVICES
Industrial freezers and refrigeration
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