Manufacturing Global magazine - March 2016

M a r ch 2 0 16

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Print on demand

Peter Williams takes Ricoh Europe into the world of 3D printing

Tehnology Visibility of the supply chain The best of Manufacturing Blogs SPECIAL REPORTS

Nuqul Group & Houghton International

IN THIS ISSUE

EDITOR’S COMMENT

Print

AHEAD H E L L O A N D W E L C O M E T O the March

issue of Manufacturing Global. This month, we kick off with a cover feature about print technology giant Ricoh, which focusses on an exclusive interview with Executive Vice President Peter Williams. Williams discusses the impact Ricoh’s innovative inkjet heads have had on the print industry, and its work towards 3D printing developments.

Another important feature is Houghton International, a global purveyor of highquality speciality chemicals. We have also hand-picked the top seven manufacturing blogs, and the monthly technology segment features an article by Invenio’s MD Partho Bhattacharya, who explains why manufacturing companies need to keep a closer eye on their supply chains.

Feel free to tweet your feedback to @ManufacturingGL

Enjoy the issue!

Nell Walker Editor nell.walker@bizclikmedia.com 3

CONTENTS

Features

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LEADERSHIP

Inkject Headlines: Peter Williams of Ricoh Europe tells us how the company has expanded its technology into the 3D print world and beyond

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TECHNOLOGY Why the visibility of the supply chain needs to be improved

March 2016

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TOP 7 Manufacturing Blogs

Company Profiles

EUROPE Houghton International

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LATIN AMERICA Grupo Industrial UMO

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60

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AFRICA El Sewedy Electrometer

MIDDLE EAST Fine Hygienic Holding 5

LEADERSHIP

Inkjet Headlines Peter Williams of Ricoh Europe speaks to Manufacturing Global about how the company has expanded its technology into the 3D print world and beyond Writ ten by: Nell Walker

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LEADERSHIP PRINT TECHNOLOGY GIANT Ricoh is a force to be reckoned with and has made great strides in its industry to stay on top in an ever-changing environment. Peter Williams, Executive Vice President of Ricoh Europe, understands that change is inevitable in technological manufacturing: “Historically, we’re a manufacturing company, with our core products being office-based printing items. However, we’ve branched out into software development, and therefore moved away from manufacturing as the sole source of our value proposition; we’re a software applications and solutionsbased company now. We’re very proud of our roots, but they’re no longer the sole part.”

Founded in Tokyo in 1936, Ricoh has slowly but surely expanded into a $20 billion company. It was the first provider of digital machines that moved printers into scanners and made them more integral in the workplace, with the majority of the high technology work done in Japan, a country known for its electronics quality. Ricoh is also an early innovator in inkjet printers, and supplies large quantities of heads to partners and competitors.

The biggest market for inkjet 8 M arch 2016

heads is in Europe, and the largest applications for these is now 3D printing. Williams runs the 3D – otherwise known as ‘additive manufacturing’ or ‘AM’ – group in Europe, and is aware of how important this technology is: “It’s only recently we’ve become directly involved with 3D printing. There’s a lot of hype around being able to produce body parts, machinery parts, and having 3D printers on space ships so they can self-repair; to a certain extent, all of those are possibilities. 3D is very interesting but there’s still a long way to go before it moves into being on the forefront of peoples’ minds. There’s a huge amount to be done on the material side.”

Ricoh’s own 3D printer, the RICOH AM S5500P, is capable of creating high-definition and durable fabricated objects. Regardless of how much work there is to do before 3D-printing becomes mainstream, the launch of this product has given Ricoh a reputation as a major player in AM development. “We were at Formex in Frankfurt last year, and the presence of Ricoh authenticated the business sector. It was a real honour. People were saying ‘now Ricoh is involved,

INKJET HEADLINES

‘Ricoh’s own 3D printer, the RICOH AM S5500P, is capable of creating highdefinition and durable fabricated objects’

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LEADERSHIP additive manufacturing is moving up a gear in terms of corporate involvement’, which tells you about the brand name within the general market. The level of industry moved faster than originally intended with the positive feedback we got. We’ve taken orders for the 5500 in Europe, where it has only recently become available. There’s a strong reaction to the device itself, and secondarily due to Ricoh’s involvement.”

3D technology will play a big part in Ricoh’s plans for expansion. “In terms of additive manufacturing devices, we’ve got two extremes: entry-level and top-of-the-range products. What we expect to do is maximise the value of those two

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‘The commercial growth in this business proves that huge development is possible. It will be very interesting to see that’

H EI N AD KL JE I NT EHREEAQ DU LIR NE D S

areas, and in-fill with additional devices. I see a more comprehensive portfolio, followed by expanding the services organisation in Telford, UK, and then the rest of Europe.”

Williams says that the growth of AM is constrained by suppliers not having the support infrastructure boasted by Ricoh, holding up the manufacturing process. He sees a broader use of Ricoh’s system, he says: “This will allow the market to develop. The commercial growth in this business proves that huge development is possible. It will be very interesting to see that.”

The company believes that what sets Ricoh apart is its ability to support its devices. In Europe, it has 6,000 staff members committed to

the service of its products, from call tracking, service calls, and despatch, to remote sensing of devices: “These are the things that differentiate us from competitors. Over a million of our printers are under service contract in Europe, and they need support. Then there is another tier which supports commercial print devices because that environment is very intensive on the use of colour technology and speed; even the terminology is different.

Other businesses in this industry tend not to have the same infrastructure as us. Part of our value is in better utilisation of that infrastructure.”

Ricoh’s European branch has two large distribution centres in the Netherlands; one for parts and

11

LEADERSHIP

‘Part of our skill is to cost-effectively manage both finished goods and parts effectively. We have very sophisticated logistics to support our base’

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INKJET HEADLINES

consumables, and one for finished goods. There are also six satellite warehouses, allowing for the quickest possible product distribution. “Both the primary and satellite distribution centres work as one so they look from our system viewpoint as a single instance of inventory, and we supply those. Part of our skill is to costeffectively manage both finished goods and parts effectively. We have very sophisticated logistics to support our base. Over a million of our printers are under service contracts in Europe, and they require support.”

Ricoh’s success within its sector has led to an inevitable flood of job applicants, forcing the company to be extremely careful during the selection process. “What I didn’t want was for Ricoh to be a university for the rest of our industry,” Williams says. “We take training and recruitment very seriously.

Retention is critical. The first couple of years is about offering opportunities to the employee, presenting the company in the best light, giving the person the right opportunities; those things are critical to ensure retention while that person slowly becomes an expert in their field.”

With Williams such a believer

in bringing the company closer to its client base, Ricoh has made another step towards the customer by introducing an experience centre, which allows consumers to visit the European base in Telford and see Ricoh’s manufacturing processes close-up. “We opened it just over a year ago, and we’ve had 150 customer visits since then.

Manufacturing skills are displayed generically and specifically. We’ve had some very notable names in the aerospace, automotive, and petrochemical sectors that we’ve offered consultancy to in areas of smart manufacturing. We bring clients in for a specific enquiry, but we’re then able to include additional opportunities to those visits.”

The Telford base now has additive manufacturing machinery, and can offer demonstrations and consultancy regarding design technology and material selection. For Williams, this multi-faceted customer experience service fills a gap not touched on by small-medium manufacturers, and adds value to Ricoh as a successful – yet approachable – business.

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Why the visibility of the supply chain needs to be improved

Partho Bhattacharya, MD and President of Invenio Business Solutions, says that UK manufacturers must focus more intently on their own production processes in order to measure the effectiveness of their supply chains

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TECHNOLOGY

TO GROW AGAINST a backdrop of fluctuating exchange rates, the demise of the steel industry and additional outlay in the living wage, UK manufacturers must take individual responsibility. While external factors play a huge role in future success, they need to look internally and review the procedures, processes,

and business planning capabilities that they can control. This will ensure they are as efficient and lean as possible to help counteract the impact of these external pressures. Â Increased focus must therefore be placed on building strength in areas that can boost productivity and streamline operations such as 15

TECHNOLOGY reducing complexity in the supply chain. In a recent report published by the Confederation of British Industry (CBI), it was confirmed that better streamlining and revitalising UK supply chains could inject as much as £30 billion into the economy.

Key examples which require further visibility are: finance and cost control, materials management, production planning, sales and distribution, customer services, quality management, warehouse management, plant management and fleet management. But how can this be

Download ‘Pulling Together’ brochure 16

March 2016

achieved, and what do manufacturers need to do to ensure they have full visibility across the supply chain?

Audit of technology solutions By implementing a full tech audit of solutions, manufacturers can provide themselves with forewarning and effective coping strategies to arrest the negative impact of the downturn of the global economy on their businesses.

In order to do this, UK manufacturers must consider the following:

• Do you have full visibility of the entire supply chain?

• Does your roadmap fit the needs of your business objectives?

• If a complex, highly risky scenario impacts your supply chain, can the systems you have in place support this?

• Are you complying with international legal requirements and standards?

• Do you have the KPIs to analyse production dates in a timely manner to understand which manufacturing order items need to be started, why there are changes in completion dates and where there is capacity?

The use of technology to analyse inputs, outputs and costs ensures that

V I S I B I L I T Y I N T H E S U P P LY C H A I N

‘What do manufacturers need to do to ensure they have full visibility across the supply chain?’

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TECHNOLOGY

‘Manufacturers need to analyse whether their partners can seamlessly integrate into the processes they are undertaking’

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V I S I B I L I T Y I N T H E S U P P LY C H A I N

manufacturers can stay focussed on growth and future-proof operations. If costs are exceeding expectations, or production is out supplying demand, companies can pinpoint the area that is hindering their business and act in real-time to ensure minimal disruption.

Use insights to audit effectiveness of supply chain partners Once greater visibility of the supply chain has been achieved, the next logical extension is to use the insight to audit and measure the effectiveness of supply chain providers.

Manufacturers need to analyse whether their partners can seamlessly integrate into the processes they are undertaking.

They need to find out whether their partners can share information and data effectively, and collaborate in a joined up way. If a partner is offering specialist expertise, are they able to offer this straight away?

Secondly, does the partner have the relevant security measures in place to protect the supply chain?

The PwC Information Security Breaches survey for the UK reported

that third-party suppliers account for 18 percent of breaches, so it is essential that contracts are drawn up at the start of a partnership.

Finally, manufacturers need to ensure that their supply partners have the right infrastructure in place to support the process. For example, if the supply chain and information sharing is underpinned by a cloud solution, can a partner in a remote location provide the right infrastructure to fulfil this?

With The Chartered Institute of Procurement and Supply (CIPS) stating that 66 percent of UK businesses have no plan B for a supply chain emergency, it is vital that more UK manufacturers leverage technology to best protect against external threats.

We have recently seen factors such as the strong pound, global oversupply, and lack of demand due to slowing overseas economies contributing to the deterioration of manufacturing organisations.

It is essential that UK manufacturers complete a full tech audit of solutions, and review the effectiveness of supply chain partners, to future-proof themselves.

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TOP 7

TOP7 Manufacturing Blogs Written by: Nell Walker

Our pick of the best online advice and news resources for manufacturers

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TOP 7

07 Shopfloor

WEB: www.shopfloor.org

Shopfloor is the blog of the National Association of Manufacturers (US), focussing on the latest news and events that impact the world of manufacturing. The association includes over 11,000 manufacturing businesses which look to the frequentlyupdated blog for advice.

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T O P S E V E N M A N U FA C T U R I N G B L O G S

06 Reshoring Initiative WEB: www.reshorenow.org/blog

This blog, while heavily focussed on the reshoring initiative which encourages businesses to bring their manufacturing processes home, also includes news, events, press releases, and information about many other aspects of the industry.

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TOP 7

05 Metal Miner

WEB: www.agmetalminer.com

Metal Miner, unlike others on this list, includes a generous volume of international and national news. The blog is dedicated to showing manufacturers how they can acquire steel and other metals more cheaply, but also contains pre-emptive global news and an industry perspective on manufacturing advice.

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T O P S E V E N M A N U FA C T U R I N G B L O G S

04 Fabbaloo

WEB: www.fabbaloo.com

Fabbaloo’s focus is on new and advanced 3D printing applications, and offers daily news on the subject. It also includes designs of the week, personal designer profiles, and believes strongly in a near future in which anybody can make their own 3D-printed items using inexpensive desktop equipment.

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TOP 7

03 Manufacturing Innovation blog WEB: http://nistmep.blogs.govdelivery.com

Manufacturing Innovation is the official blog of the Manufacturing Extension Partnership, serving as a resource for manufacturers, industry experts, and the public alike. It includes news and helpful tools, plus trending topics and coverage of relevant events.

T O P S E V E N M A N U FA C T U R I N G B L O G S

02 The ThomasNet blog WEB: blog.thomasnet.com

The blog section of ThomasNet covers many themes by several different writers, touching on social media and marketing as well as manufacturing and industrial news, facts, and advice.

The main site itself is a hive of supplier and product sourcing information, and the blog works well alongside it, adding a personal connection.

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TOP 7

01 Manufacturing.net WEB: www.manufacturing.net

Manufacturing.net covers a wide variety of topics within the

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T O P S E V E N M A N U FA C T U R I N G B L O G S

sector, from aerospace to supply chain, with a heavy focus on international news and events. The blog also contains links to various sister channels which act as thorough resources for chemical, food, distribution, and pharmaceutical information.

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Formula for su Written by Nye Longman Produced by Alex Neagu

uccess 31

H O U G H T O N I N T E R N AT I O N A L

Houghton International is the world’s largest metalworking fluids company and is keeping ahead of its competition while fostering innovation and delivering value for a range of customers

H

oughton International’s reputation as a problem solver for its customers has been long and hard-earned – it all started in 1867 (two years after its founding) when it introduced a rust prevention product into the American market. Since then the company has grown its products and industry verticals, and has also expanded internationally.

After successive years of strategic investment and growth, the company was recognised in a 2010 report by Kline & Company as the world’s largest supplier of metalworking fluids. Following up this achievement, we speak to a number of key management figures within Houghton who outline how this was accomplished and how it will be maintained and expanded in the coming years.

This report explores Houghton from multiple angles: we speak to Mervyn Chung-Fat, Director of Marketing and Product Management; Michel Gerard, Global Director for Automotive Components; Neil Winterbottom, Director of Fluidcare Operations; Mirek Kania, European Equipment and Services Manager; and Dr. Dave Slinkman, Senior Vice President of Global Research and Technology. Together they provide a fascinating insight into how the company has every aspect of its business geared to serving the needs of its customers while maintaining operational excellence across the board.

Customer-centric operations Houghton International is responsible for

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EUROPE

bringing premium speciality chemicals and lubricants to a variety of industrial segments which include automotive, aerospace, metals, mining, machinery, offshore and beverage can industries. Leveraging its decades of experience working with such a variety of products and sectors, Houghton is now able to provide a range of associated services which help customers to manage their chemicals and provide as much value as possible from them.

Headquartered in North America, the company has a truly global presence, whether through directly-owned offices or affiliated suppliers. Alongside the Americas, Houghton has a strong presence across the length and breadth of Europe, South-East Asia and the Far East, as well as manufacturing operations in India and Australia, Russia and

1900 Number of jobs to be supported

by Houghton International

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H O U G H T O N I N T E R N AT I O N A L

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Turkey. Through a combination of partners and appointed representatives, Houghton has a presence in Africa’s two largest economies – Nigeria and South Africa.

Neil Winterbottom explains how Houghton has come a very long way from simply selling specialised high-performing chemicals and is now able to also provide a range of after-sales services to customers, which helps them improve productivity, reduce costs and minimise risks.

He says: “By recognising our customers’ needs, we can guarantee savings while delivering real benefits and adding value – and even make their operations more competitive. We have a lot of our employees operating and working on customer sites to achieve this - they have even become part of the customer’s team to a certain degree.

Having continually delivered in this regard, our customers have come to rely on us as their main source of technical in-house know-how.”

Mervyn Chung-Fat explains how Houghton’s customer alignment strategy is carried out globally: “The key element that we’ve learned is that one size doesn’t fit all, as chemical regulations change around the world. To be able to support a customer today you have to realign yourself with how they are organised and what their specific needs are. We try to make sure we support them locally, but with this global perspective, because so many are run at a global level or are looking into it for the future. Wherever our customer’s plants

Kevin Smith President, Europe, Middle East and Africa Kevin Smith has over 30 years of commercial and general management experience in global industrial, speciality chemical and consulting businesses. Prior to joining Houghton, Smith held the position of CEO, EMEA for Arysta Lifescience, a $1.6 billion global specialty crop protection firm, where he led the region to strong growth in revenue and profitability through acquisition, sales execution, commercial discipline, and product development.

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“PURAGLOBE’s mission is straight forward to provide the best in class base oils from used oil feedstock and this gives an amazing >80% CO2 reduction for our clients. Puraglobe have consistently achieved these targets by having a clear vision, decent knowledge and a unique application to successfully navigate our milestones,” CEO Mr Andreas Schueppel said. “ PURAGLOBE is one of the world’s largest fully integrated non-virgin oil companies. They own the most advanced and modern global refinery for sustainable base oil specialties & products. The company’s focus is on superior and sustainable base oil solutions using exclusive refining technology in its conversion of used oils into premium products. In 1995 PURAGLOBE became the exclusive licensee of Honeywell UOP HyLube™ Process Technology to produce Group II products with commercial operations commencing in 2004.

We will start the commissioning of the PURAGLOBE Group III refining plant based in Germany in the first quarter of 2017. The worldwide exclusive and completely novel Honeywell UOP HyLubeSAT™ technology will allow us to produce the highest possible quality of re-engineered Group III base oils building upon PURAGLOBE’s 12 years of successful operational experience. PURAGLOBE and Honeywell develop their R&D programs as a partnership, ensuring breakthrough advancements and eco-compliance. Today PURAGLOBE offers base oils with a certified carbon footprint.

As a CareForClimate® certified business, PURAGLOBE prides itself on a sustainable business approach, and its processes are kinder to the environment compared with virgin or crude base oil refining; Hylube™ technology has already prevented many millions of tons of CO2 from being released into the atmosphere. The company values a cleaner environment, believing it drives business towards excellence, and that ‘greening’ engines from the inside-out with its specialist products contributes to the cleanliness of the atmosphere.

PURAGLOBE has furthered its credentials with its 24h Nuremberg ‘CareForClimate®’ 2015 and 2016 racing car team. The company has successfully produced the one millionth ton of non-virgin feed stock into Group II and III- base oil products, used for industrial, automotive and driveline lubrication applications. This further enhancement towards a Group III base oil enables lubricant manufacturers to formulate low viscosity engine oils, as well as lubricants, together with the advantage of cutting edge fuel economy performance level.

PURAGLOBE have major plans for the future, starting with further expansion of production at its German industrial site. This further investment in production will enable PURAGLOBE to be the first worldwide manufacturer using this process to produce API Group III base oils at this high quality. On the technology front, PURAGLOBE have recently signed a Joint Development Agreement with Applied Graphene Materials UK Ltd. The agreement will see the development and characterisation of dispersions of AGM’s graphene nanoplatelets that will be included in PURAGLOBE’s sustainable base oil product and specialty technologies.

It is anticipated that as a result of the collaboration, PURAGLOBE’s graphene loaded base oil solutions will find a home across a wide range of industrial and automotive applications, where the unique friction and wear properties of graphene will add significant performance gains in lubricants and machining fluids.

PURAGLOBE aims to address climate change as a combined industrial approach, alongside global virgin companies, to extend the lifespan of natural oil resources in the future. Today PURAGLOBE base oil technologies are being used in various industrial, driveline and automotive applications (e.g. ATF, PCMO/HDDO engine oil formulations).

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EUROPE

are, we strive to provide the same promise of performance and service to that customer.”

Michel Gerard adds: “Each industry has a range of specific needs, which at Houghton we strive to address and predict. Let’s use the automotive industry as an example, as it is a very challenging market where competition is very tough: the automotive customer is always looking to increase productivity and efficiency, as well as to improve quality.”

“If we are to provide the right solution for this customer, we need to understand its needs all the way down to individual plant level, while also understanding its drivers from a global perspective. We often run audits at customers’ plants - we want to know how their processes work and what kind of process we can help to develop.”

“We try to impact the whole manufacturing value chain which means that we know all the plant production processes and we understand where Houghton’s solutions can provide value and savings for the customer.”

Talent management Ensuring that the company’s goal to retain its position as a global leader is fully understood, adopted and delivered across the world is no mean feat. Even with the best business model in place, no company can function without the collective efforts of its employees, which is why Houghton’s management teams make sure that

Mervyn Chung-Fat Director of Marketing and Product Management Mervyn Chung-Fat has 17 years of experience in the metalworking industry - in abrasives and metalworking fluids.

He has worked in North America, Asia and Europe.

He joined Houghton in Europe in 2011 as the Product Management Team Leader for Europe, Middle East and Africa (EMEA). Now, he leads the global product teams for the automotive and aerospace markets in addition to the marketing responsibilities for EMEA. Chung-Fat earned his BS Industrial Engineering from Worcester Polytechnic Institute.

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H O U G H T O N I N T E R N AT I O N A L

“Houghton employs chemists, chemical engineers, biologists, and metallurgists in the research and technology group and has over 20 PhD chemists involved in the Research efforts globally” – Dr Dave Slinkman, Senior VP, Global Research and Technology

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the company employs intelligent, dedicated and customer-focused employees at every level. The company has reinforced its talent management operations using a two-fold strategy – firstly by maintaining a constant working partnership with universities across the world and, secondly, by ensuring that the current workforce has the scope and resources to develop.

Dr. Slinkman explains how the company is actively engaged in pushing the boundaries of current thinking to new levels: “Houghton is working with a number of Universities throughout the world, spanning a number of the application areas that we serve. In Europe specifically, Houghton is involved with the University of Sheffield Advanced Manufacturing Research Centre, the University of Birmingham, and the Technical University of Dortmund.

“Houghton employs chemists, chemical engineers, biologists, and metallurgists in the research and technology group and has over 20 PhD chemists involved in Research efforts globally.”

EUROPE

Winterbottom adds that the company measures its employees’ performance using a variety of means but primarily does so, in line with many other larger organisations, using a balanced score-card system.

Furthermore, he explains that Houghton is not content to simply score the achievements of its staff on a case by case basis: “If we see a production

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improvement we will typically write up a case study. We will then circulate that within the organisation and also during our corporate reviews with our customers. There have been many cases of an improvement being scaled to multiple manufacturing plants; if we know improvements can be made, then there is no reason that these cannot be rolled out globally.”

Continuous development is a key element of keeping talent and Houghton invests much in training. In 2013, Houghton won two Training Journal Awards for their HELIX training programme specially developed for their sales organisation.

Smart innovation As European Equipment and Services Manager, Mirek Kania is keen to illustrate the pivotal role that research and development plays in directing the company’s approach to providing solutions to its customers, and it is this factor that enables Houghton to retain its leading global position.

He says: “We are more distinctive in the marketplace because we provide the customer with the greatest number of tools and because we can offer them the most savings. If a customer uses standard filtration methods, for example, we can provide additional equipment that enables them to make unexpected savings - perhaps a secondary filtration device that helps to keep the fluid cleaner and in better condition.”

Chung-Fat adds: “We have research groups

$1bn The amount of revenue generated by Houghton International

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H O U G H T O N I N T E R N AT I O N A L

Mirek Kania European Equipment and Services Manager Mirek Kania has a Master of Science from the Academy of Mining and Metallurgy, Krakow, Poland in NonFerrous Metals Material Engineering. He joined Houghton in August 1995 as sales agent and continued his career in various sales and commercial positions including sales Manager, sales Director for Poland, Fluidcare® Operation Director in Poland and Eastern Europe. Since 2012, Kania has led equipment and services business development in Europe.

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in North America, Europe, Asia and in South America. Everywhere we are producing products we have an R&D team there.

Innovation is a core part of our corporate strategy. This also extends to managing our supply chain where continuous improvement – particularly Six-Sigma – is part of our DNA.” Dr. Slinkman explains that the Houghton’s extensive experience has endowed the business with both foresight and the will to act on it – particularly in regard to a global regulatory framework that is more environmentally-orientated than ever.

EUROPE

He says: “Houghton’s Hocut® 4000 series of metal cutting fluids is a great example of how regulatory changes like REACh can lead to innovative solutions as we have removed boron, DCHA, and formaldehyde releasing components while maintaining and improving lubricity.”

In an industry where regulations often vary from country to country and where customer requirements are, by nature, in a constant state of flux, keeping to a single operational approach can be extremely challenging. Houghton International has demonstrated across the board that its business model is sustainable, profitable and flexible enough to attain its much deserved position as a global market leader. w w w. h o u g h t o n i n t l . c o m

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An OEM fixture poised to

CONQUER

the aftermarket After years of success as tier 1 supplier for auto and motorcycle exhaust systems, UMO is ready to thrive with KIPO, its aftermarket brand

Written by: Mateo Rafael Tablado Produced by: Taybele Piven Interviewee: John Giraldo, CCO for Grupo Industrial UMO

GRUPO INDUSTRIAL UMO

F

or 45 years, UMO Industrial Group has been the number one exhaust system manufacturer for the Colombian and the Andean regions, with clients such as Toyota, GM and Renault. UMO also has presence in Ecuador, where its manufacturing plant works both for local motorcycle brands as well as for GM’s local operation. In 2014, UMO entered motorcycle seat and exhaust system manufacturing. In this recent venture, UMO has established itself as a tier 1 supplier to brands like Yamaha, Suzuki, Honda, Hero, Auteco (local licensee to Indian brands Bajaj, Kymco and KTM), and Colombian brands

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L AT I N A M E R I C A

AKT and TVS. UMO’s success as OEM is a result of the company’s adaptability and commitment to meet its clients’ standards.

Key People

UMO’s consolidation in the local market has prepared it for its most ambitious venture yet: KIPO, the company’s aftermarket brand, now exports to selected markets in Latin America.

“We have a strong engineering and operations team, enabling us to meet our clients’ demands,” commented John Giraldo, CCO for UMO Industrial Group.

John Giraldo

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CCO

Giraldo graduated in business administration, with a specialty in international business management from Colombia’s University of Los Andes. Before becoming part of UMO, Giraldo worked for SICOLSA (metallurgy), FUNDICOM (smelting) and other companies in agricultural exports and aqueducts.

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GRUPO INDUSTRIAL UMO

UMO Industrial Group supplies exhaust system for GM, Renault and other car manufacturers, as well as exhaust systems and seats for motorcycle

Giraldo graduated in business administration, with a specialty in international business management from Colombia’s University of Los Andes. Before becoming part of UMO, Giraldo worked for SICOLSA (metallurgy), FUNDICOM (smelting) and other companies in agricultural exports and aqueducts.

For years, UMO has been an OEM supplier, specializing in exhaust systems and motorcycle seats. Currently, UMO has four business units:

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· SEKI, focused on PU injection for industrial applications · PREXA, focused on industrial painting · FORMAPRESS, a partner focused on

L AT I N A M E R I C A

CNC machining brings the desired results in a number of procedures

metalmechanic procedures such as machine pressing, stamping and press design. · KIPO, UMO’s B2C brand created in 2014 to focus on motorcycle performance exhaust systems

UMO’s adaptability to clients’ purposes and strategies is, without a doubt, one of the company’s outstanding traits, giving value to each brand.

“Choices and design perception may change.

Our design team is aware of this and is strong enough to provide each client plenty of options,” Giraldo said. w w w. u m o . c o m . c o

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GRUPO INDUSTRIAL UMO

KIPO is UMO’s ace in the hole for the aftermarket segment

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L AT I N A M E R I C A

Precision technology Manufacturing processes at UMO depend on a balance of automation and precision manual labor for component assembling. Automated welding and CNC machining are used to deliver exact results, according to every model’s specifications. These resources provide accuracy in delivering the same chemical composition and stability to 35,000 to 40,000 motorcycle seats.

For management tasks, UMO relies on an ERPSAP system, able to link different operations such as finances, payroll and logistics, among others.

“Automation in our most critical procedures support the company’s growth rate,” Giraldo said.

Key purveyors: steel and logistics Stainless steel is a must for exhaust system manufacturing, and every material must comply with clients’ fabrication demand. Because this material is scarce locally, UMO imports 304 and 436 type stainless steel from plants in Brazil, Mexico, Corea and Germany.

Another important partner for UMO is its local logistics supplier, a reliable ally to bring raw materials into the country on schedule.

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GRUPO INDUSTRIAL UMO Standard compliance and supplier certification

“UMO has

become

a very

price-cost

effective,

competitive

company within our

region” – John Giraldo, CCO for Grupo Industrial UMO

Global manufacturing companies demand their purveyors follow the industry’s best practice standards. Some of UMO’s global credentials include ISO/TS:16949 as well as compliance with General Motors SGM standards, Renault’s ASES program and among others.

In order to meet such requirements, UMO passes these same demands onto its supply chain, and performs constant audits and evaluations to update standards and best practices. Some of UMO’s suppliers have benefitted by obtaining ISO:9001 certification, particularly in regards to deployment of improvement programs such as Six Sigma and others resources, assuring quality in their production line.

“The market requires high technical standards; every procedure and material must provide traceability,” the executive said.

KIPO: after-market performance exhaust systems

“One of our most important growth strategies is the development of KIPO, our aftermarket business unit,” Giraldo said. KIPO was created in 54

March 2016

L AT I N A M E R I C A

2014, functioning as the only B2C business line for UMO Industrial Group. Currently, KIPO items are exported into the United States and Mexico.

In the short to mid-term, KIPO products will also ship to Costa Rica, Ecuador, Peru and Chile; other efforts are also being carried out in Argentina and Guatemala. In the long term, UMO is considering a partnership with local enterprises in India and Thailand, since the company is already manufacturing equipment for Indian motorcycle brands.

Automated welding and

This B2C venture promises to boost UMO’s interaction with the market on a much larger scale, dependent upon growth efforts.

PU injection guarantees the same consistency in more than 35,000

Human resources There are three main areas for collaboration between UMO and its staff: 1. A monthly improvement plan, which includes a policy to accept a monthly average of 45 to 60 suggestions from employees at any level. Typically, at least four or five suggestions are found viable by the company’s management.

Pipe-bending and

2. A Kaizen program for continual improvements, carried twice a year.

other processes requiring precision rely on autmation

3. Support plans, offered by UMO, to its entire w w w. u m o . c o m . c o

55

The welded stainless steel tubes and components offered by the companies of the fischer group, meet the highest expectations of quality standards, produced with unique processes. Many applications can be found in a large variety of industries and markets.

The main office of the fischer group is in Achern (Germany), with companies in Mexico, Uruguay, Canada, USA, South Africa, Austria and China.

THE SECRET OF THE LASTING SUCCESS STORY OF THE

fischer group:

• Usage of raw material of highest

quality standards: stainless steels like austenitics, ferritics, special alloys, and also some carbon steel • Fabrication of welded tubes with state of the art Laser, TIG and HF welding.

• Optimal transformation into complex components: bending, special laser cutting, hydroform, hanger rod assemblies, among others.

• Manufacturing of own specialized equipment and tools.

• Excellent service to our customers in all sectors: Automotive (Exhaust systems, catalytic convertes, hanger rods,… ) Construction (OD polished), Industrial Application, Electrodomestic, etc. …

L AT I N A M E R I C A

personnel for learning new skills, partnering with education institutions to provide special courses.

Environment and community UMO Industrial Group invested in a new, ecofriendly painting plant able to generate zero residual chemicals. Costs of operations at this facility are 30 to 40 percent higher than traditional solutions, but UMO has made financing it a priority in order to avoid any negative impact on the environment. Residuals from welding processes are managed by a specialized local company.

GM and Renault are UMO’s clients, as well as Yamaha, Suzuki, Honda, Bajaj, AKT and TVS motorcycles, among other manufacturers

PERFIL DE PROVEEDOR Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings. Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings.

If you need to create a new paragraph then just hit return and a separating rule appears for segregating the paragraphs.

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GRUPO INDUSTRIAL UMO UMO Industrial Group gives back to the community through organizations supporting education and proper nutrition for children in Medellin’s most vulnerable communities. The company has also formed agreements with higher education institutions provide for twelve intern positions in UMO Industrial Group.

Assembling procedures

Planned growth and resources to achieve it UMO’s decision-makers understand the current economic developments and fluctuating oil prices, conditioning its growth according the success of its clients. Projections for the short

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L AT I N A M E R I C A

term include a growth rate for the company that doubles Colombia’s, meaning that the rate will still be a single figure.

Company Information NAME

Nevertheless, the company plans to double its total value by 2020. This goal is not far from being accomplished, once KIPO establishes itself in the entire continent, and completes plans to export to India and Thailand.

“Our dream of doubling the company’s value can be accomplished with a strong exports operation. This is a long term effort,” the executive said.

Grupo Industrial UMO INDUSTRY

Exhaust system manufacturing for car and motorcycle; motorcycle seats manufacturing HEADQUARTERS

Medellín, Departamento de Antioquia, Colombia FOUNDED

1971 EMPLOYEES

500 REVENUE

US $40 million UMO has a policy to consider employees’ opinions and proposals to improve procedures and bring down

WEBSITE

www.umo.com.co

production costs

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A revolution in metering Written by Nell Walker Produced by Daniel Pritchard

solutions 61

EL SEWEDY ELECTROMETER

How El Sewedy Electrometer Group stays ahead in the competitive metering industry

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March 2016

W

ith 19 million meters running in 46 countries, and as one of the top 10 metering companies in the world, El Sewedy Electrometer Group (EMG) has come a long way from its well-established roots. The company has been established since 1998, and for decades it has slowly but surely built its brand, thriving where similar businesses fell behind. Its rise to prominence has occurred steadily throughout its timeline, as follows: • 1938 – Zaki El Sewedy Holding (ZSG) was founded as a supplier of electrical materials in Egypt • 1962 – ZSG was appointed by the Egyptian government as the main supplier of all electrical materials for the largest hydro power plant in Egypt, the Aswan High Dam • 1980 – ZSG started investing in industry,

ENERGY

starting with the manufacture of power cables, electricity distribution boards, electricity and gas meters, lighting fixtures, and energy-saving lamps in addition to its turn-key electrification projects • 1998 – ZSG established El Sewedy Electrometer (EMG), the first private sector company specialising in the design and manufacture of electricity meters in the Middle East • 2004 – EMG founded Ghana Electrometer Ltd, the first metering factory in West Africa, followed by the successful implementation of the e-Cash pre-payment system • 2007 – EMG ventured with EEPCO in Ethiopia Electrometer to produce prepaid meters in Ethiopia, as well as with ZESCO in Zambia Electrometer • 2008 – EMG partnered with BMG bank in Electrometer do Brazil, in addition to Electrometer de Las Americas in Mexico with CICASA • 2009 – EMG established El Sewedy Electrometer India to supply Asia as well as the rest of the group with quality meters and modules • 2010 – EMG acquired an established meter manufacturer in the Czech Republic to supply Europe and the rest of the world with smart grid solutions EMG is fully-focused on production of meters, network management services, large electrification

El Sewedy Electrometer has 19 million meters running in 46 countries

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EL SEWEDY ELECTROMETER projects, and product aftercare. The business expanded facilities in Africa to cover Ghana, Ethiopia, and Zambia respectively. As its success spread, EMG began to globalise, extending facilities to India, Brazil, and Mexico, before penetrating the European market by acquiring ZPA Smart Energies in the Czech Republic.

EMG has attained ISO 9001, ISO 14001, and OHSAS 18001 certification during its lifetime, and has become a sought-after partner for many other large businesses. Some of its major recent projects include the North Lebanon Project and the Ghana Ashanti BOT Project, both involving the design, manufacture, supply

ENERGY

and installation of various metering systems.

“We have a complete portfolio of products that cover residential, commercial, and industrial market needs,” says Mohammed Shoaib, Head of PMO and Strategic Sourcing at El Sewedy Electrometer. “Our portfolio includes basic meters, advanced meters that provide prepayment features, and smart meters that come with a flexible design to communicate via GPRS, RF or PLC. These smart meters enable utility companies to remotely collect metering data as well as configure meters, which enhances the accuracy and swiftness with which data is transferred between the utility and consumers.”

Productivity is optimised by utilising the latest techniques in lean manufacturing and Six Sigma. Calibration and testing systems are automated, allowing simultaneous manufacture of multiple products without sacrificing accuracy, and the ability to respond to customer delivery demands without risk of human error.

The supply chain is strictly operated and Shoaib demands perfection at every step of the way: “We have a solid supplier-management mechanism where we evaluate our suppliers based on their financial performance, the quality of the product, lead times, and cost. We try to have multiple suppliers for every item to minimise risk and lessen competition. We like to maintain an open relationship with all of them by sharing our production plans and our needs, which keeps them engaged. We have a list of authorised

Mahmoud Shawky Operations Director Mohamed is the director of operations and is a member of the management committee.

He is responsible for overseeing Elsewedy Electrometer’s daily operational activities including manufacturing, quality, supply chain, and performance reporting.

He plays effective role in the top management committee regarding the firm’s performance, dayto-day operations and overall strategic planning.

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ENERGY

suppliers, and another for preferred suppliers that we always return to. Also we are implementing a very solid tracking mechanism and an ERP system that connects the dots and ensures every point in the business runs smoothly.”

All of EMG’s products are heavily tested by world-renowned labs, including OFGEM in the UK, MET Lab in the US, INMETRO in Brazil, LAPEM in Mexico, ERDA in India, and many more to ensure all products are of the highest quality.

“We have prestigious R&D houses in Egypt, India, the Czech Republic, and many other countries.

Five percent of our annual revenue is invested in R&D; El Sewedy is one of the top five platforms for R&D in the metering industry. We don’t buy ready-made designs and just put our logo on them; we develop every concept ourselves.”

EMG’s smart meters come with a flexible design to communicate via GPRS, RF or PLC

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EL SEWEDY ELECTROMETER

Mohammed Shoaib Head of PMO and Strategic Sourcing Mohammed heads PMO and Strategic Sourcing at ElSewedy Electrometer. He oversees project execution from customer order all the way through to delivery.

He also oversees supplier relationships and evaluation plus BOM costing, lead times, and quality. Prior to that, he worked at Intel managing its R&D outsourcing. He is the recipient of Intel’s prestigious Division Recognition Award.

Mohammed holds a recent MBA and is PMP certified

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Such a large, rapidly-expanding company has a lot to offer an employee, Shoaib says.

“We always offer opportunities for growth; it’s a global company and doesn’t have one single focus, so as an employee you would have the luxury of being exposed to the product development every step of the way; employees can grow within one department or expand to the next. We also offer training programs, depending on the position being applied for.”

Shoaib says that the economic climate hasn’t affected El Sewedy, as the business is always there. “We are operating in a B2B market. There’s a lot of demand for our products from the utilities and from privately-held companies. Developing countries are connecting more people through metering solutions, and the demand is growing.

That’s connected to the economic status and

ENERGY

growth of the country. Besides, the technology itself is evolving from the mechanical meter to the electricity meter, from post-paid to pre-paid meters, and recently to the smart meters. The demand is finding its way in both developed and developing countries.”

El Sewedy Electrometer’s slogan is ‘Manage Utilities Better’, which reflects its belief that its responsibilities lie beyond meters themselves and the aftercare thereof. EMG wants to enable its customers to manage their own utilities without difficulty, and offers comprehensive services to tackle that: “EMG is a total solution provider with deep focus on quality and customer service. Our solutions and services include engineering, installation, operation, maintenance, meter management, and billing activities.” Shoaib says.

What truly sets El Sewedy apart from other companies in the industry is experience, according to Shoaib: “The leaders of the company have a lot of experience in this industry and have been doing it for many years. EMG now has 10 factories present across five continents, which gives us global market leadership and significant production capacity of more than 5 million meters per annum. We cater to all segments of the meter market, not only focusing on one.

We have the power to decide where to produce depending on capacity and market needs.”

Mahmoud Adel Purchasing Manager Mahmoud Adel is the Purchasing Manager at Elsewedy Electrometer. He is responsible for buying the best quality equipment, goods and services for the organisation at the most competitive prices.

Mahmoud has 10 years of experience in purchasing and supplier management.

Mahmoud is Certified Supply Chain Professional (CSCP) from the American University in Cairo and Certified International Purchasing Manager (CIPM) from IPSCMI.

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Digitising the business:

innovation in operation

Written by: Nye Longman Produced by: Heykel Ouni

71

FINE HYGIENIC HOLDING

F

ine Hygienic Holding is the MENA region’s number one tissue maker. Its products sell in more than 29 countries outside MENA, with new markets being added each year.

Introducing brand-new technologies to the region was never new to FHH. In 1991, the company introduced the first fully-automated paper mill, which

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was the largest capacity machine in the Middle East at the time.

In 1996, FHH founded another paper mill that surpassed the size of the first one, maintaining its leading position in the region.

For FHH, innovation was never limited to machinery, as it revolutionised the industry with various innovations, mainly SteriPro. This patented technology

M A N U FA C T U R I N G

is utilised in the manufacturing process by using an ultra-violet sterilisation technique with a fully automated ‘no hands’ manufacturing method to reduce the hazard of contact with germs.

FHH was also the first to introduce the WetPro technology to the Middle East, allowing tissues to handle substantial quantities of water and remain

intact while fully disintegrating when flushed. In terms of energy innovation, FHH succeeded in setting a new industry standard for power co-generation in the world, as it brought three existing parties to create a self-sufficient model for power generation at its paper mill in Egypt.

“Innovation is one of our strategic priorities

“Innovation is one of our strategic priorities when it comes to meeting our consumer and customer needs” – Salim Karadsheh, Group CEO

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True, we have many areas of unmatched expertise.

But what matters most is how it applies to you.

From the world’s leading data scientists, to a unique process tailored to your goals, you’ll realize we make one thing possible. Anything.

Four signs your business needs a data lake, now It is now well known that the digital universe, which comprises most businesses’ data needs, is growing exponentially. In fact, over the next decade the digital universe is expected to grow by around 40 percent a year. This is growth at an astonishing speed.

In this environment, it is critical that businesses use data analytics to enhance competitiveness and meet the needs of the ‘information generation’; millennials and more born into the digital era. From helping to predict buying behaviours, to driving innovation projects that will enhance customer service or improve business productivity, data lakes that can collate, store and analyse vast amounts of data have great power to transform a business for the better. Analytics should no longer be an aspiration, but a necessity.

So, how do businesses know when they need to scale-up and invest in a data lake?

There are four tell-tale signs: 1. Operational complexity: In a pre-data lake environment, if a business is trying to scale its infrastructure there’s a good chance that their data requirements will outstrip their ability to manage them. To cope with operational complexity, businesses would require a more flexible common storage resource, i.e. a data lake.

2. Operational cost: When a company finds that business demands on IT keep growing even when it is trying to reduce OpEx. It is time to look at a new approach. Businesses need to invest in additional third party support to monitor, manage, deploy and improve their systems than simply adding headcount.

3. Production strain: Another key indicator of the need for a data lake is when existing analytics applications are putting a strain on the production systems of a business. Real-time analytics can be extremely resource-intensive.. Data lakes are key to ensuring that real-time analytics can run at optimum performance.

4. Multiprotocol analytics: A final key indicator that a business needs a data lake is when data scientists are running apps on a variety of different Hadoop distributions and need to hook their data up to them. Businesses will need multiprotocol support in the future as analytics experimentation carries on, and they need to plan for this with a data lake strategy.

Across the industries, from finance to retail, manufacturing to media companies, each thinks that their problems, challenges and opportunities are unique. But, when you abstract the specifics you’ll always come back to the same universal challenges. What unifies and characterises all of these is the transformation brought about by information technology and the potential of big data.

Not every business will be ready to deploy data analytics yet, but most will, at the very least, need to start planning for it or risk losing out to competitors that embrace the technology. Because, eventually all businesses will need to embrace data analytics, and those that don’t will fade into obscurity.

FINE HYGIENIC HOLDING

4,200

Number of staff working for Fine Hygienic Holding

when it comes to meeting our consumer and customer needs. We are keen on ensuring continuous plant automation, product development and constantly finding means for increasing energy savings, cost efficiencies and productivity,� says Salim Karadsheh, Group CEO.

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April 2016

Technology at the heart of the business Fine Hygienic Holding currently employs around 4,200 people across a range of countries.

Although it remains headquartered in Jordan, with a varied portfolio of operations and products under its control, FHH manufactures,

M A N U FA C T U R I N G

converts, sells and exports to over 45 markets worldwide. Such a range of offerings, often demands a certain degree of complexity and a need for advanced technologies.

With such diversity of business processes, FHH’s Head of Business Technology, Bassem El-Wazir and his team have

been working tirelessly to keep up with latest technologies and business evolution, and to maintain the technology advancement that the group has always had. From unifying legacy systems to providing business solutions and insights, Business Technology at FHH has become

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22 years of growth, prosperity and stability Now expanded to Dubai

Managing I.T

to optimise & improve business potential

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M A N U FA C T U R I N G

a denominator at the heart of the company.

“With the use of technology we have enabled a culture of innovation that allows employees to become innovators. We developed a system that rewards creative and insightful ideas submitted by employees for any product or practice,” says Bassem El-Wazir.

Digitising the Business “FHH had always believed in BT as a driver to business growth. This is strongly reflected in the sizable investments

“We are keen on ensuring continuous plant automation, product development and constantly finding means for increasing energy savings, cost efficiencies and productivity” – Salim Karadsheh, Group CEO

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FINE HYGIENIC HOLDING

1958 The year Fine Hygienic Holding was established

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April 2016

M A N U FA C T U R I N G

that are allocated to achieve business digitization needs,” says El-Wazir.

In 2010, the group embarked on a strategic ERP consolidation and process unification project across all business units. “We were empowered with the allocation of a 10 million dollar budget for our project to be spent over the period of five years,” El-Wazir says.

“Our mission is to consistently empower our users with the knowledge and provide them with business insights that they need.

We provide business intelligence, advanced analytics and digital business solutions, that provide a competitive advantage

“Taking the time and effort to invest in overhauling its infrastructure – not to mention placing information tech closer to the centre of its entire operations – has been a rewarding challenge for Fine Hygienic Holding” – Bassem El-Wazir, Head of Business Technology

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FINE HYGIENIC HOLDING

to the group and brings us closer to our consumers and customers,” he adds.

The digital transformation has had a profound effect on how FHH’s workforce employs its resources, as El-Wazir explains.

Now, the work of numerous employees from across the group is completely dependent on the latest technologies and software.

Certain mobile based

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applications for example, did not only improve sales’ efficiency, but also created a more comfortable and convenient way of doing business.

According to El-Wazir, Business Technology serves as a significant value driver for the business.

One of the BT responsibilities is to improve performance through providing business solutions that help grow the business. “This is

M A N U FA C T U R I N G

where our Home Delivery App and B2B e-commerce service (FineStore.com) come to play.

“Taking the time and effort to invest in overhauling its infrastructure – not to mention placing information technology closer to the centre of its entire operations – has been a rewarding challenge for Fine Hygienic Holding,” El-Wazir concludes.

Today, the company is not only

able to measure performance and ensure accuracy like never before, but it is also able to do that while offering both customers and employees a fully interactive experience. Proud of its past and confident of its future, the group is looking forward to further growth, both at home and abroad with innovation and technology as its main drivers.

‘Proud of its past and confident of its future, the group is looking forward to further growth’

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